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

GP Strategies Corp. (NYSE:GPX) delivered a profit and met 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 up 1.78%.

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

GP Strategies Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 13.04% to $0.26 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 8.32% to $101.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: GP Strategies Corp. reported adjusted EPS income of $0.26 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $103.14 million.

Quoting Management: “GP Strategies continued to show overall improvement of its results in the first quarter of 2013,” commented Scott N. Greenberg, Chief Executive Officer of GP Strategies. “We have developed a unique platform in the training industry through the combination of our organic operations supplemented by strategic acquisitions. In the first quarter, the Company increased its business development efforts to support larger outsourcing opportunities and invested in its proprietary software technology at a greater level than in the past. We are optimistic that these investments will translate into growth in future quarters.”

Key Stats (on next page)…

Revenue decreased 4.33% from $105.99 million in the previous quarter. EPS decreased 18.75% from $0.32 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 $1.33 to a profit of $1.31 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)