Cytec Industries Earnings: Here’s Why the Stock is Down Now

Cytec Industries Inc. (NYSE:CYT) 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. Shares are down 0.11%.

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Cytec Industries Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 13.64% to $0.75 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Decreased 39.05% to $477.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cytec Industries Inc. reported adjusted EPS income of $0.75 per share. By that measure, the company missed the mean analyst estimate of $0.86. It missed the average revenue estimate of $485.35 million.

Quoting Management: David Drillock, Vice President and Chief Financial Officer commented, “Additional time is required to prepare the Statement of Cash Flows reflecting the Coating Resins segment as discontinued operations. The Statement of Cash Flows will be available in our quarterly 10-Q filing which is expected to be filed on or about May 6, 2013. On a continuing basis, our net working capital days at the end of the first quarter were 4 days lower at 80 days compared to the end of the fourth quarter of 2012. Accounts receivable days were slightly up at 51 days compared with 49 days at the end of fourth quarter of 2012. Accounts payable were up 7 days at 53 days versus the end of fourth quarter of 2012 at 46 days. Inventory days were up 1 day at 82 days compared with the end of fourth quarter of 2012 of 81 days, mostly due to timing of certain mining chemicals orders in the In Process Separation segment.”

Key Stats (on next page)…

Revenue increased 1.42% from $470.7 million in the previous quarter. EPS increased 4.17% from $0.72 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 $1.26 to a profit $1.27. For the current year, the average estimate has moved down from a profit of $4.83 to a profit of $4.82 over the last ninety days.

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