Libbey Earnings: Here’s Why Investors are Not Happy Now

Libbey, Inc. (AMEX:LBY) delivered a profit and beat Wall Street’s expectations, BUT 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 3.04%.

Libbey, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 14.29% to $0.84 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Rose 0.33% to $210.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Libbey, Inc. reported adjusted EPS income of $0.84 per share. By that measure, the company beat the mean analyst estimate of $0.68. It missed the average revenue estimate of $220.5 million.

Quoting Management: “While lower sales in the high volume retail and business-to-business channels of distribution in the U.S. and Canada contributed to overall flat sales for the quarter, we are very encouraged by sales increases in our other end markets, including EMEA, Asia Pacific and Mexico and Latin America. The key component of our story, however, is our continued success in cost reductions, which resulted in record adjusted income from operations and adjusted EBITDA. This performance is even more notable, given that we had a significant amount of underutilized capacity throughout the Americas during the quarter related to the planned realignment of our production,” said Stephanie A. Streeter, chief executive officer of Libbey Inc.

Key Stats (on next page)…

Revenue increased 14.37% from $184.23 million in the previous quarter. EPS increased 200% from $0.28 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.67 to a profit $0.72. For the current year, the average estimate is a profit of $2.25, which is the same with that ninety days ago.

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