Cambrex Corp. (NYSE:CBM) 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. Shares are up 4.42%.
Cambrex Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 54.17% to $0.37 in the quarter versus EPS of $0.24 in the year-earlier quarter.
Revenue: Rose 6.19% to $74.58 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cambrex Corp. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.22. It missed the average revenue estimate of $76.15 million.
Quoting Management: “The first quarter was a solid quarter for us, with overall growth driven by increases in custom development and custom manufacturing, demonstrating the strength of our portfolio of innovator products. We continue to expect strong sales and EBITDA increases for the full year, consistent with our previous guidance,” commented Steven M. Klosk, President and Chief Executive Officer of Cambrex. “We remain on target for implementation of our key growth-based capital projects, including the large investment at our Iowa facility to expand overall capacity and to make commercial launch material pursuant to a supply agreement signed in 2012.”
Key Stats (on next page)…
Revenue increased 6.65% from $69.93 million in the previous quarter. EPS increased 54.17% from $0.24 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 $0.33 to a profit $0.32. For the current year, the average estimate has moved down from a profit of $0.95 to a profit of $0.84 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)