SPX Earnings Cheat Sheet: Revenue Sees Decline After Four Consecutive Quarters of Increases, Net Income Falls

SPX Corporation (NYSE:SPW) reported its results for the first quarter. SPX is a global multi-industry manufacturing company offering highly-specialized engineered solutions to solve critical problems for customers.

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SPX Earnings Cheat Sheet for the First Quarter

Results: Net income for SPX Corporation fell to $13.5 million (26 cents per share) vs. $23.1 million (45 cents per share) a year earlier. This is a decline of 41.6% from the year-earlier quarter.

Revenue: Fell 2.8% to $1.17 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SPX Corporation beat the mean analyst estimate of 22 cents per share. Analysts were expecting revenue of $1.16 billion.

Quoting Management: “We view 2012 as a transitional year for our company as we are focused on executing several significant strategic actions. These actions had a net dilutive impact on our Q1 financial results; however, we expect to see a positive benefit from these actions over the balance of 2012 and beyond. Additionally, we believe these actions will allow us to leverage the positive trends we are seeing in many of our key end markets. In particular, we are experiencing robust demand for Flow components across many applications and also for the replacement of power transformers in the U.S. market,” said Christopher J. Kearney, Chairman, President and Chief Executive Officer of SPX.

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 16.3%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 3 cents in the fourth quarter of the last fiscal year, by 12 cents in the third quarter of the last fiscal year, and by 2 cents in the second quarter of the last fiscal year.

The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 4.3% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from $1.10 a share to $1.01 over the last ninety days. For the fiscal year, the average estimate has moved down from $4.79 a share to $4.52 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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