Anixter International Inc. (NYSE:AXE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Anixter International Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 8.59% to $1.39 in the quarter versus EPS of $1.28 in the year-earlier quarter.
Revenue: Rose 0.16% to $1.58 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Anixter International Inc. reported adjusted EPS income of $1.39 per share. By that measure, the company missed the mean analyst estimate of $1.53. It missed the average revenue estimate of $1.59 billion.
Quoting Management: “As we expected, growth in the first half of the year was muted by the global macroeconomic climate. Our people delivered very sound performance despite these challenging conditions,” commented Bob Eck, President and CEO. “We were encouraged by improving market conditions in our core ECS business, which led to strong sales and margin performance in that segment’s North America region. We also experienced improving trends in Europe in all three of our segments. Our continued focus on margin and working capital efficiency while aligning our expense structure with the current environment positions us to deliver solid financial results in a business environment that we expect will be characterized by slow growth.”
Key Stats (on next page)…
Revenue increased 5.94% from $1.49 billion in the previous quarter. EPS increased 9.45% from $1.27 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.74 to a profit $1.73. For the current year, the average estimate has moved down from a profit of $6.23 to a profit of $6.19 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)