Carlisle Companies Earnings: Here’s Why Investors Don’t Like These Results

Carlisle Companies Inc. (NYSE:CSL) 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 6.13%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Carlisle Companies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 30.85% to $0.65 in the quarter versus EPS of $0.94 in the year-earlier quarter.

Revenue: Decreased 3.63% to $857 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Carlisle Companies Inc. reported adjusted EPS income of $0.65 per share. By that measure, the company missed the mean analyst estimate of $0.84. It missed the average revenue estimate of $899.7 million.

Quoting Management: David A. Roberts, Chairman, President and Chief Executive Officer, said, “We knew the comparison of last year’s results with our 2013 first quarter performance was going to be challenging. As you may recall, in the first quarter of 2012 we achieved 28% sales growth with nearly all of our markets experiencing solid growth in demand. For the first quarter of 2013, our sales were challenged by the significant decline in the global off-highway equipment market, as compared to a strong first quarter last year, as well as weather related headwinds in some of our key markets. Lower sales and production volumes had a negative impact on EBIT (earnings before interest and taxes), which declined by 27% during the first quarter of 2013. Despite the challenges experienced in the first quarter, we remain optimistic that we will achieve overall sales growth and earnings improvement in 2013.”

Key Stats (on next page)…

Revenue increased 1.35% from $845.6 million in the previous quarter. EPS decreased 20.73% from $0.82 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 $1.42 to a profit $1.37. For the current year, the average estimate has moved up from a profit of $4.54 to a profit of $4.56 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)

More Articles About:   , , ,  

More from The Cheat Sheet