General Cable Earnings: Here’s Why Investors are Not Happy Now
General Cable Corp. (NYSE:BGC) delivered a profit 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 7.28%.
General Cable Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 52.08% to $0.23 in the quarter versus EPS of $0.48 in the year-earlier quarter.
Revenue: Rose 7.02% to $1.53 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: General Cable Corp. reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $1.58 billion.
Quoting Management: Gregory B. Kenny, President and Chief Executive Officer of General Cable, said, “Adjusted operating results and metal pounds sold were generally in line with our expectations in all three of our reportable segments for the first quarter of 2013 despite the declining metal price environment experienced toward the end of the quarter. Our recent acquisitions continue to perform well in the first quarter of 2013, again exceeding our expectations for a second consecutive quarter. We continue to make excellent progress integrating these acquisitions, which will remain a key focus for us throughout 2013 as we work to capture manufacturing, logistics and purchasing synergies. Alcan Cable China was purchased late last year and is operating profitably. In addition to a state of the art manufacturing facility, they have a very strong sales and distribution network. We are now looking at ways to build on this extensive network access with other products produced locally or globally.”
Key Stats (on next page)…
Revenue decreased 4.37% from $1.6 billion in the previous quarter. EPS decreased 17.86% from $0.28 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 $0.85 to a profit $0.79. For the current year, the average estimate has moved down from a profit of $2.98 to a profit of $2.69 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)