Mine Safety Appliances Earnings: Here’s Why Investors Don’t Like These Results

Mine Safety Appliances Co. (NYSE:MSA) 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 5.8%.

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Mine Safety Appliances Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 20.31% to $0.51 in the quarter versus EPS of $0.64 in the year-earlier quarter.

Revenue: Decreased 3.54% to $283.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mine Safety Appliances Co. reported adjusted EPS income of $0.51 per share. By that measure, the company missed the mean analyst estimate of $0.61. It missed the average revenue estimate of $297.05 million.

Quoting Management: “Compared to our record first quarter of 2012, which included a number of large non-recurring fixed gas and flame detection orders, sales were relatively flat with core product sales growing 3 percent,” said William M. Lambert, MSA President and CEO. MSA’s five core product groups include industrial head protection, fall protection devices, portable gas detection instruments, fixed gas and flame detection systems, and self-contained breathing apparatus (SCBA). The combined sales of these core product groups increased to 69 percent of MSA’s global business in the first quarter.”

Key Stats (on next page)…

Revenue decreased 4.57% from $296.67 million in the previous quarter. EPS decreased 10.53% from $0.57 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 $0.70. For the current year, the average estimate has moved up from a profit of $2.66 to a profit of $2.69 over the last ninety days.

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