Core-Mark Holding Earnings: Here’s Why Investors are Ambivalent Now

Core-Mark Holding Company, Inc. (NASDAQ:CORE) 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.

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

Core-Mark Holding Company, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 7.69% to $0.36 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Rose 2.14% to $2.15 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Core-Mark Holding Company, Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company missed the mean analyst estimate of $0.42. It missed the average revenue estimate of $2.24 billion.

Quoting Management: “I am encouraged to see healthy growth in our non-cigarette sales and robust improvements in the margins, despite soft consumer demand in the quarter. This not only indicates that our key strategies continue to resonate with customers, but strengthens my confidence that we will post record earnings in 2013,” said Thomas B. Perkins, President and Chief Executive Officer. “I am very excited about our new Carolina division and the positive impact they have made to the company and the new Turkey Hill contract announced this morning.”

Key Stats (on next page)…

Revenue decreased 2% from $2.19 billion in the previous quarter. EPS decreased 56.63% from $0.83 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 $1.16 to a profit $1.17. For the current year, the average estimate has moved down from a profit of $3.91 to a profit of $3.87 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)