Douglas Dynamics Earnings: Here’s Why Investors are Not Happy Now

Douglas Dynamics, Inc. Common S (NYSE:PLOW) 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 1.08%.

Douglas Dynamics, Inc. Common S Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 35% to $0.26 in the quarter versus EPS of $0.40 in the year-earlier quarter.

Revenue: Decreased 15.79% to $55.16 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Douglas Dynamics, Inc. Common S reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0.24. It missed the average revenue estimate of $58.78 million.

Quoting Management: James L. Janik, President and Chief Executive Officer of the Company, commented, “Our results for the second quarter were in line with our expectations given the timing of new product launches and our expectations regarding the related shipment mix trends for the 2013 pre-season order period. Longer-term, we are excited about this new product line-up and our belief that it will enhance our market leading position and further cement our reputation of constantly delivering best-in-class products and services to our customers. Our results also reflect an increase in parts and accessories sales of approximately 17% in the second quarter of 2013 as compared to the second quarter of 2012, as stronger and sustained late season snowfall levels across core markets reduced dealer inventory levels. We expect to continue to generate significant cash flows and look for ways to optimize shareholder value, which includes our robust dividend.”

Key Stats (on next page)…

Revenue increased 290.1% from $14.14 million in the previous quarter. EPS increased to $0.26 in the quarter versus EPS of $-0.13 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 $0.17 to a profit $0.19. For the current year, the average estimate has moved down from a profit of $0.54 to a profit of $0.49 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)

More Articles About:   , , ,  

More from The Cheat Sheet