SPX Earnings: Here’s Why the Stock is Up Now

SPX Corporation (NYSE:SPW) delivered a profit and beat Wall Street’s expectations, BUT 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 up 3.59%.

SPX Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.11% to $0.8 in the quarter versus EPS of $0.74 in the year-earlier quarter.

Revenue: Decreased 3.47% to $1.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SPX Corporation reported adjusted EPS income of $0.8 per share. By that measure, the company beat the mean analyst estimate of $0.65. It missed the average revenue estimate of $1.25 billion.

Quoting Management: “Our primary focus this year is on operational improvement, reducing our cost base and returning capital to shareholders. We made very good progress on these commitments during the second quarter,” said Chris Kearney, Chairman, President and Chief Executive Officer of SPX. “Second quarter earnings per share increased 10 percent over the prior year to $0.80. This was driven primarily by improved operational performance as segment income margins expanded 90 points.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 300% from $0.20 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 $1.45 to a profit $1.39. For the current year, the average estimate has moved down from a profit of $4.53 to a profit of $4.3 over the last ninety days.

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