SPX Corporation (NYSE:SPW) 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. Shares are down 7%.
SPX Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 17.65% to $0.20 in the quarter versus EPS of $0.17 in the year-earlier quarter.
Revenue: Decreased 2.7% to $1.13 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: SPX Corporation reported adjusted EPS income of $0.20 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $1.21 billion.
Quoting Management: “Our first quarter performance was largely comparable with the prior year, but lower than we anticipated. While the performance across most of SPX was fundamentally in line with our expectations, we were disproportionally impacted in a few discrete areas, particularly in our Thermal Segment. We are taking actions to address these areas and improve our performance, including accelerated restructuring plans to address our cost structure in certain European operations,” said Christopher J. Kearney, Chairman, President and Chief Executive Officer of SPX.
Key Stats (on next page)…
Revenue decreased 20.46% from $1.43 billion in the previous quarter. EPS decreased 87.26% from $1.57 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 $1.16 to a profit $1.15. For the current year, the average estimate has moved down from a profit of $5.11 to a profit of $4.93 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)