Multi-Fineline Electronix Earnings: Here’s Why Investors Like These Results

Multi-Fineline Electronix Inc. (NASDAQ:MFLX) 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. Shares are up 0.60%.

Multi-Fineline Electronix Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.77 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Decreased 19.96% to $136.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Multi-Fineline Electronix Inc. reported adjusted EPS loss of $0.77 per share. By that measure, the company missed the mean analyst estimate of $-0.55. It missed the average revenue estimate of $147.27 million.

Quoting Management: Reza Meshgin, Chief Executive Officer of MFLEX, commented “We believe our third quarter results will serve as an inflection point as we anticipate a meaningful sequential improvement in revenue in the fourth quarter with continued momentum into fiscal 2014. As a result, we expect to return to profitability in the first quarter of fiscal 2014, as well as on a full year basis in fiscal 2014. Our customer relationships are strong and we are aggressively pursuing new customer and product opportunities to diversify our revenue streams and support our longer-term growth objectives.”

Key Stats (on next page)…

Revenue decreased 21.63% from $173.67 million in the previous quarter. EPS increased to $-0.77 in the quarter versus EPS of $-0.51 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 loss of $0.03 to a loss $0.29. For the current year, the average estimate has moved down from a loss of $0.84 to a loss of $0.96 over the last ninety days.

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