Metalico Earnings: Here’s Why Investors are Ambivalent Now

Metalico Inc (AMEX:MEA) had a loss 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.

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Metalico Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.02 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Decreased 15.9% to $138 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Metalico Inc reported adjusted EPS loss of $0.02 per share. By that measure, the company missed the mean analyst estimate of $0.02. It missed the average revenue estimate of $150.3 million.

Quoting Management: Commenting on the results for the quarter, Carlos E. Agüero, Metalico’s President and Chief Executive Officer, said, “Sequential results in the first quarter improved markedly over last year’s fourth quarter. The Company returned to positive operating income, albeit a modest amount, signaling progress in efforts to improve results.”

Key Stats (on next page)…

Revenue increased 7.33% from $128.57 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $-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 $0.03 to a profit $0.02. For the current year, the average estimate has moved down from a profit of $0.1 to a profit of $0.07 over the last ninety days.

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

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