IESI-BFC Ltd. Earnings: Here’s Why Shares are Down Now
IESI-BFC Ltd. (NYSE:BIN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.49%.
IESI-BFC Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 14.29% to $0.24 in the quarter versus EPS of $0.32 in the year-earlier quarter.
Revenue: Rose 8.44% to $495.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: IESI-BFC Ltd. reported adjusted EPS income of $0.24 per share. By that measure, the company missed the mean analyst estimate of $0.27. It beat the average revenue estimate of $473.81 million.
Quoting Management: “The strength of our core collection, transfer and disposal operations, combined with 19 strategic “tuck-in” acquisitions, softened the impact of a 1.6% decline in revenues from lower recycled commodity prices in 2012. In 2013, we are well positioned for growth with a strengthened network of integrated assets and the market-focused strategies to continue to execute our operating model and drive value on these assets. Acquisitions we completed in 2012 generate annualized revenues of approximately $200 million, and the contribution to 2013 revenue growth is expected to be approximately $138 million. Revenues for 2013 will also realize the benefits of internal infrastructure projects and new municipal contract wins. All of these contributions together will more than offset the impact of municipal contracts that concluded in the third and fourth quarters of 2012 and the scheduled closure of our Calgary landfill in mid-2013,” said Joseph Quarin, Vice Chairman and Chief Executive Officer, Progressive Waste Solutions Ltd. “We remain focused on the disciplined execution of our local market strategies and deployment of free cash flow(NYSE:B) to improve our overall return on invested capital. We are excited about the opportunities we have to create value in 2013 and beyond.”
Key Stats (on next page)…
Revenue increased 1.76% from $487.21 million in the previous quarter. EPS decreased 14.29% from $0.28 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 $0.23 and has not changed. For the current year, the average estimate is a profit of $1, 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)