Medical Action Industries Earnings: Here’s Why Investors are Selling Shares Now

Medical Action Industries Inc. (NASDAQ:MDCI) 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 22.42%.

Medical Action Industries Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 100% to $0.02 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Decreased 4.49% to $107.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Medical Action Industries Inc. reported adjusted EPS income of $0.02 per share. By that measure, the company missed the mean analyst estimate of $0.1. It missed the average revenue estimate of $109.5 million.

Quoting Management: Paul D. Meringolo, Chief Executive Officer, said, “As in recent quarters, our cost savings initiatives, the elimination of unprofitable sales and a reduction in raw material costs continue to be the key drivers behind the profitability improvements we are reporting today. I am extremely pleased at our management team’s ability to manage these improvements without compromising their focus on delivering exceptional service and value to our customers. I continue to be excited about the numerous obtainable profit improvement initiatives we have identified which should yield further near-term improvement in financial results and continue to enhance stockholder value.”

Key Stats (on next page)…

Revenue decreased 0.61% from $107.86 million in the previous quarter. EPS decreased 75% from $0.08 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 $0.13 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $0.49 to a profit of $0.46 over the last ninety days.

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