Columbus Mckinnon Corp. (NASDAQ:CMCO) 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.
Columbus Mckinnon Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 18.6% to $0.35 in the quarter versus EPS of $0.43 in the year-earlier quarter.
Revenue: Decreased 9.16% to $139 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Columbus Mckinnon Corp. reported adjusted EPS income of $0.35 per share. By that measure, the company beat the mean analyst estimate of $0.33. It missed the average revenue estimate of $149.55 million.
Quoting Management: Timothy T. Tevens, President and Chief Executive Officer, commented, “We achieved great success in driving margin expansion in the quarter as we realized one of the highest gross margin levels in our recent history. We are making solid headway in increasing our sales volumes in emerging markets, specifically Asia, the Middle East, Latin America and Eastern Europe. These gains have helped to offset the recessionary industrial economy in Europe. Our Lean Business System has also been successful in driving out waste and therefore cost from our operating structure, which has improved our margins on a lower sales base.”
Key Stats (on next page)…
Revenue decreased 3.84% from $144.55 million in the previous quarter. EPS decreased 5.41% from $0.37 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 $0.34 to a profit $0.32. For the current year, the average estimate is a profit of $1.45, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)