Comfort Systems Earnings: Here’s Why Investors Don’t Like These Results

Comfort Systems USA Inc. (NYSE:FIX) 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 8.81%.

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Comfort Systems USA Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.03 in the quarter versus EPS of $-0.03 in the year-earlier quarter.

Revenue: Decreased 1.07% to $325.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Comfort Systems USA Inc. reported adjusted EPS income of $0.03 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It missed the average revenue estimate of $329.85 million.

Quoting Management: Brian Lane, Comfort Systems USA’s Chief Executive Officer, said, “We are pleased to report to our stockholders a profitable first quarter providing a solid start to 2013. Our operations displayed remarkable and broad-based strength in the midst of continued low activity levels, especially in light of the fact that the first quarter historically reflects seasonal weakness.”

Key Stats (on next page)…

Revenue increased 4.63% from $311.49 million in the previous quarter. EPS decreased 62.5% from $0.08 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 $0.14 to a profit $0.12. For the current year, the average estimate has moved down from a profit of $0.43 to a profit of $0.39 over the last ninety days.

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

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