Houston Wire & Cable Company (NASDAQ:HWCC) 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.
Houston Wire & Cable Company Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 4.35% to $0.22 in the quarter versus EPS of $0.23 in the year-earlier quarter.
Revenue: Decreased 0.17% to $94.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Houston Wire & Cable Company reported adjusted EPS income of $0.22 per share. By that measure, the company missed the mean analyst estimate of $0.23. It missed the average revenue estimate of $94.97 million.
Quoting Management: Jim Pokluda, President and Chief Executive Officer commented, “Inconsistent market conditions, and varying levels of regional performance generated sales which grew approximately 2% over the prior year period when adjusted for the reduction in the price of metals. Weakness in certain geographic regions was offset by strong demand in upstream and midstream oil and gas markets and increased industrial demand in the Gulf Coast region. Overall, MRO demand was up slightly while project activity was down slightly.”
Key Stats (on next page)…
Revenue decreased 9.66% from $104.38 million in the previous quarter. EPS decreased 12% 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 $0.29 to a profit $0.28. For the current year, the average estimate is a profit of $1.05, which is the same with that ninety days ago.
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)