Cambrex Earnings: Here’s Why the Stock is Down Now

Cambrex Corp. (NYSE:CBM) 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. Shares are down 1.71%.

Cambrex Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 78.79% to $0.07 in the quarter versus EPS of $0.33 in the year-earlier quarter.

Revenue: Decreased 20.19% to $61.56 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cambrex Corp. reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $73.7 million.

Quoting Management: “The first half of 2013 compared unfavorably to the same period last year given the exceptional results in the first half of last year. We expect a considerably stronger second half of 2013, and remain on track to achieve our full year guidance for both sales and EBITDA,” commented Steven M. Klosk, President and Chief Executive Officer of Cambrex. “We are very pleased with the performance of our new large scale GMP manufacturing facility in Charles City, Iowa and the progress we are making on producing commercial launch quantities of our customer’s exciting new therapeutic. We recently signed an agreement for a new late stage clinical project and received verbal approval for a second from another customer, indicating continued strong custom development demand.”

Key Stats (on next page)…

Revenue decreased 17.8% from $74.89 million in the previous quarter. EPS decreased 81.08% from $0.37 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.12 to a profit $0.14. For the current year, the average estimate has moved down from a profit of $0.84 to a profit of $0.83 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]