Encore Wire Earnings: Here’s Why the Stock is Up Now

Encore Wire Corp. (NASDAQ:WIRE) 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 up 1%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Encore Wire Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.9% to $0.31 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Decreased 5.37% to $265.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Encore Wire Corp. reported adjusted EPS income of $0.31 per share. By that measure, the company beat the mean analyst estimate of $0.25. It beat the average revenue estimate of $255.2 million.

Quoting Management: Daniel L. Jones, President and Chief Executive Officer of Encore Wire Corporation, said, “The first quarter of this year was another fairly steady volume quarter, considering the time of the year and the current economic and construction industry environment. We believe our expansion of product offerings over the last six years to our existing customer base has been critical to maintaining and perhaps boosting our market share. The results in the first quarter of 2013 were mildly improved versus the first and fourth quarters of 2012. Building wire prices and margins were fairly stable during the quarter, following the pattern of stability in copper prices. Volumes were also comparable to the prior periods and may have been held down somewhat by lingering winter weather in the first quarter of 2013.”

Key Stats (on next page)…

Revenue increased 2.87% from $258 million in the previous quarter. EPS increased 24% from $0.25 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 $0.36. For the current year, the average estimate has moved down from a profit of $1.77 to a profit of $1.46 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)