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

Colfax Corporation (NYSE:CFX) 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 down 0.19%.

Colfax Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 60% to $0.56 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 2.71% to $1.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Colfax Corporation reported adjusted EPS income of $0.56 per share. By that measure, the company beat the mean analyst estimate of $0.53. It missed the average revenue estimate of $1.08 billion.

Quoting Management: Steve Simms, President and Chief Executive Officer, stated, “We are very pleased to report record operational results for the second quarter. The strong operating margins in both segments reflect the continued impact of our improvement plans. Although order growth in our long cycle gas- and fluid-handling business was impacted by trends specific to individual sectors, we anticipate solid growth in sales for this segment for the balance of 2013. Demand remained soft in the fabrication technology segment, but we continue to demonstrate that we can improve margins in the segment without sales growth. We continue to focus on acquisition opportunities to deploy funds we raised in our May equity offering.”

Key Stats (on next page)…

Revenue increased 13.39% from $947.14 million in the previous quarter. EPS increased 115.38% from $0.26 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 $0.54 to a profit $0.53. For the current year, the average estimate has moved down from a profit of $1.97 to a profit of $1.96 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)