NCI Building Systems Inc. (NYSE:NCS) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
NCI Building Systems Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.28 in the quarter versus EPS of $0.02 in the year-earlier quarter.
Revenue: Rose 17.25% to $293.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: NCI Building Systems Inc. reported adjusted EPS loss of $0.28 per share. By that measure, the company missed the mean analyst estimate of $-0.23. It beat the average revenue estimate of $293.03 million.
Quoting Management: Norman C. Chambers, Chairman, President and Chief Executive, commented, “We delivered second quarter results in line with our preliminary disclosure on May 14, 2013. As previously discussed, while we achieved double-digit revenue growth, primarily due to last year’s acquisition of Metl-Span, volumes for the quarter were below our internal expectations. Poor winter weather conditions as compared to last year’s second quarter resulted in weaker year-over-year demand for nonresidential construction and the slower release of work from our backlog. We also strategically invested in additional manufacturing personnel during the quarter, which temporarily put pressure on our operating margins, but also has positioned us to capitalize on stronger anticipated demand in the second half of the year. We exited the second quarter with a growing backlog comprised of a greater percentage of higher-margin design/build projects than at the end of the same period last year, which is reflective of the success of our recent marketing and sales initiatives.”
Key Stats (on next page)…
Revenue decreased 1.4% from $297.58 million in the previous quarter. EPS decreased to $-0.28 in the quarter versus EPS of $-0.19 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 $0.12 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $0.33 to a profit of $0.21 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)