SPX Earnings: Everything You Must Know Now

SPX Corporation (NYSE:SPW) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

SPX Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 49.52% to $1.57 in the quarter versus EPS of $1.78 in the year-earlier quarter.

Revenue: Decreased 3.75% to $1.44 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SPX Corporation reported adjusted EPS income of $1.57 per share. By that measure, the company beat the mean analyst estimate of $1.56. It beat the average revenue estimate of $1.38 billion.

Quoting Management: “We finished 2012 with our strongest financial quarter of the year, highlighted by sequential revenue growth and margin expansion across all three segments and an increased contribution from ClydeUnion, in line with our expectations. In addition, we completed the sale of Service Solutions for approximately $1.15 billion. Consistent with our previously communicated $700 million capital allocation plans, we used $350 million of the proceeds to repurchase shares and $350 million of the proceeds to reduce bank debt during the year.
“Building on these capital allocation actions, we plan to reinvest an additional $450 million of capital this year on actions we believe will generate a solid return on investment and will increase earnings per share by $0.30 in 2013 and approximately $0.50 on an annualized basis. In 2013, we are targeting to repurchase $200 million of shares and make $250 million of voluntary pension contributions, essentially fully funding our US qualified pension plan. Following these actions, we are projecting $1.2 billion of liquidity at the end of 2013,” said Christopher J. Kearney, Chairman, President and Chief Executive Officer of SPX.

Key Stats (on next page)…

Revenue increased 14.91% from $1.25 billion in the previous quarter. EPS increased 49.52% from $1.05 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 $0.56 to a profit $0.47. For the current year, the average estimate has moved down from a profit of $3.65 to a profit of $3.56 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)