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

Ducommun Inc. (NYSE:DCO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.21%.

Ducommun Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.92% to $0.51 in the quarter versus EPS of $0.52 in the year-earlier quarter.

Revenue: Rose 3.68% to $191.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ducommun Inc. reported adjusted EPS income of $0.51 per share. By that measure, the company beat the mean analyst estimate of $0.4. It beat the average revenue estimate of $181.59 million.

Quoting Management: “Ducommun posted strong results this quarter reflecting both top line growth and solid margins,” said Anthony J. Reardon, chairman, president and chief executive officer. “Revenue benefited from robust commercial aerospace demand and increased shipments within our defense technologies operations, underscoring the breadth of our integrated solutions and unique applications. We also paid down an additional $7.5 million of debt, as the Company made further strides de-leveraging by improving working capital and driving cash flow.”

Key Stats (on next page)…

Revenue increased 8.86% from $175.92 million in the previous quarter. EPS increased 45.71% from $0.35 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 $0.47 to a profit $0.46. For the current year, the average estimate has moved down from a profit of $1.83 to a profit of $1.65 over the last ninety days.

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