Flow International Earnings: Here’s Why the Stock is Falling Now

Flow International Corp. (NASDAQ:FLOW) had a loss 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 1.06%.

Flow International Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.04 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Decreased 7.89% to $58.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Flow International Corp. reported adjusted EPS loss of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.01. It missed the average revenue estimate of $60.63 million.

Quoting Management: “Macro-economic uncertainty impacted sales this quarter after periods of record sales and sequential growth in nine out of the past eleven quarters,” said Charley Brown, President and CEO. “While we are optimistic about our long term prospects, given the uncertainty in the marketplace that we are experiencing, we have taken steps to reduce our overall cost structure by approximately $13 million on an annualized basis. These steps, which we announced in June, include the reduction of operating expenses by $9 million and the reduction in our product costs by $4 million. We expect to achieve these annualized targets by the end of fiscal year 2014.”

Key Stats (on next page)…

Revenue decreased 13.69% from $67.66 million in the previous quarter. EPS decreased to $-0.04 in the quarter versus EPS of $0.06 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 $0.06 to a profit $0.03. For the current year, the average estimate has moved down from a profit of $0.2 to a profit of $0.17 over the last ninety days.

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