GP Strategies Earnings: Here’s Why the Stock is Falling Now

GP Strategies Corp. (NYSE:GPX) 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%.

GP Strategies Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 12.9% to $0.27 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Rose 2.53% to $104.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: GP Strategies Corp. reported adjusted EPS income of $0.27 per share. By that measure, the company missed the mean analyst estimate of $0.31. It missed the average revenue estimate of $110.71 million.

Quoting Management: “While the second quarter of 2013 did not show improved operating performance, it was a transformational quarter for the Company. The major award from HSBC and other positive business developments have placed the Company in a very strong position for future growth,” commented Scott N. Greenberg, Chief Executive Officer of GP Strategies. “In addition to the HSBC contract that is only partially reflected in backlog, we are pleased with the success we’re having diversifying our business internationally. Other global clients are looking to GP Strategies for increased levels of support. These are exciting times for GP Strategies, and we look forward to the future.”

Key Stats (on next page)…

Revenue increased 3.48% from $101.37 million in the previous quarter. EPS increased 3.85% from $0.26 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.33 and has not changed. For the current year, the average estimate has moved down from a profit of $1.30 to a profit of $1.27 over the last ninety days.

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

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