General Cable Corp. (NYSE:BGC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
General Cable Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 6.76% to $0.69 in the quarter versus EPS of $0.74 in the year-earlier quarter.
Revenue: Rose 11.35% to $1.65 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: General Cable Corp. reported adjusted EPS income of $0.69 per share. By that measure, the company beat the mean analyst estimate of $0.56. It missed the average revenue estimate of $1.7 billion.
Quoting Management: Gregory B. Kenny, President and Chief Executive Officer of General Cable, said, “Adjusted operating results exceeded our expectations for the second quarter of 2013 despite persistent metal cost headwinds due to selling higher average cost inventory into a lower metal price environment. Excluding acquisitions and aerial transmission projects in North America and Brazil, global unit volume improved sequentially 7% as seasonal demand and construction activity as well as reliability and reinforcement work by electric utilities increased as compared to the first quarter of 2013. Despite a sharp improvement in seasonal demand, unit volume was below expectations in some businesses in North America and ROW as were metal intensive aerial transmission product shipments in North America. In Europe and Mediterranean, demand improved sequentially 8% in the second quarter of 2013, which was consistent with our expectations. Overall, seasonally adjusted demand remains relatively flat in most of our major markets but we are encouraged by the continued strong financial performance of our recent acquisitions in the U.S., Canada and China. We are also encouraged by the progress in our submarine power turnkey project business in Europe as well as Spain, both of which performed better than expected in the second quarter.”
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