Dynamic Materials Earnings: Here’s Why Investors are Ambivalent Now

Dynamic Materials Corp. (NASDAQ:BOOM) 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.

Dynamic Materials Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 25% to $0.25 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 18.92% to $57.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dynamic Materials Corp. reported adjusted EPS income of $0.25 per share. By that measure, the company beat the mean analyst estimate of $0.21. It beat the average revenue estimate of $54.62 million.

Quoting Management: “Second quarter sales exceeded our prior forecast thanks to a strong performance by Nobelclad’s U.S. production team, which capitalized on earlier-than-expected arrival of raw materials that were then efficiently utilized to meet customer requirements.”
Longe said quoting activity at Nobelclad has increased in recent months, and is ahead of levels seen at the mid-year mark of 2012. “We are bidding on projects that span a broad cross section of industrial end markets, and inquiries from the chemical, energy and power generation markets have been strong.”

Key Stats (on next page)…

Revenue increased 25.14% from $46.27 million in the previous quarter. EPS increased 127.27% from $0.11 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 $0.29 to a profit $0.28. For the current year, the average estimate has moved up from a profit of $0.87 to a profit of $0.89 over the last ninety days.

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