Cubic Earnings: Here’s Why Shares are Up Now

Cubic Corporation (NYSE:CUB) 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 up 0.06%.

Cubic Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31% to $0.69 in the quarter versus EPS of $1.00 in the year-earlier quarter.

Revenue: Decreased 6.83% to $340.45 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cubic Corporation reported adjusted EPS income of $0.69 per share. By that measure, the company beat the mean analyst estimate of $0.65. It missed the average revenue estimate of $349.55 million.

Quoting Management: “We have said 2013 would be a transition year compared to our record year in 2012. The transportation segment’s performance for the year has been very good while the defense segments are facing a challenging DoD environment. Despite the challenges, we are encouraged by contract awards in our two defense segments and improved operating profit performance in defense systems in the third quarter compared to earlier in the fiscal year,” said William Boyle, Chief Executive Officer of Cubic Corporation.

Key Stats (on next page)…

Revenue decreased 6.55% from $364.31 million in the previous quarter. EPS decreased 38.94% from $1.13 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 $0.75 to a profit $0.78. For the current year, the average estimate has moved up from a profit of $2.61 to a profit of $3 over the last ninety days.

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