Quality Distribution Earnings: Here’s Why Shares are Down Now

Quality Distribution Inc. (NASDAQ:QLTY) delivered a profit and met 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 0.57%.

Quality Distribution Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 16.67% to $0.20 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Rose 12.49% to $239.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Quality Distribution Inc. reported adjusted EPS income of $0.20 per share. By that measure, the company met the mean analyst estimate of $0.20. It missed the average revenue estimate of $240.11 million.

Quoting Management: “Our second quarter results were in line with our expectations, particularly in our Energy Logistics segment,” stated Gary Enzor, Chief Executive Officer. “Our Energy business achieved positive adjusted operating income and nearly doubled its adjusted EBITDA over the first quarter of 2013. Our Chemical Logistics business had a difficult year-over-year comparison this quarter as the additional company-operated terminals we assumed during the 2012 third quarter affiliate conversion operate at lower than standard affiliate margins. However, by the end of this week, all of those converted terminals will be re-affiliated. Our Intermodal business continues to produce very strong results as we capitalize on solid demand and generate margin improvements.”

Key Stats (on next page)…

EPS increased 42.86% from $0.14 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.24 and has not changed. For the current year, the average estimate is a profit of $0.80, which is the same with that ninety days ago.

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