NN Earnings: Everything You Must Know Now

NN Inc. (NASDAQ:NNBR) 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.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

NN Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 40% to $0.21 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Decreased 10.26% to $93.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NN Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company missed the mean analyst estimate of $0.3. It missed the average revenue estimate of $94.07 million.

Quoting Management: Roderick R. Baty, Chairman and Chief Executive Officer commented, “The weak economic conditions we experienced in 2012 continued to negatively impact the demand for our products in the first quarter. Although our results for the first quarter of 2013 fell short of the results for the same period in 2012, revenues and net income from normal operations did exceed our original 2013 forecasts. Until the economic outlook in Europe improves, we will continue to build upon our operational improvements at Whirlaway and company-wide Level 3 cost control initiatives. This focus has allowed us to achieve margin improvement even during a period of suppressed revenue levels.”

Key Stats (on next page)…

Revenue increased 17.02% from $80.16 million in the previous quarter. EPS increased 90.91% from $0.11 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 $0.35 to a profit $0.3. For the current year, the average estimate has moved down from a profit of $1.23 to a profit of $1.21 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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