Systemax Inc. Earnings Cheat Sheet: Profit Rises for Third Straight Quarter

Systemax Inc. (NYSE:SYX) reported its results for the third quarter. Systemax is mainly a direct marketer of brand-name and private-label products.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Systemax Earnings Cheat Sheet for the Third Quarter

Results: Net income for Systemax Inc. rose to $10.6 million (29 cents per share) vs. $8.6 million (23 cents per share) in the same quarter a year earlier. This marks a rise of 23.3% from the year earlier quarter.

Revenue: Rose 4.5% to $901.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SYX fell short of the mean analyst estimate of 35 cents per share. Analysts were expecting revenue of $918.2 million.

Quoting Management: Richard Leeds, Chairman and Chief Executive Officer, said, “I am pleased with our top line performance, which continues to be driven by our business-to-business channels and specifically our Industrial Products group, which posted a 28% revenue increase. Our retail stores delivered another solid quarterly performance; however, our consumer related sales remain challenging, particularly on the web. During the quarter we effected decisions to increase gross margins, which contributed to our 120 basis point improvement in consolidated gross margin. We also remain focused on improving our operating cost structure and are pleased with the initial results of our initiatives, which are just starting to flow through our results and contributed to our 70 basis point improvement in consolidated operating margin. Our efforts in this regard are ongoing and focused on driving inventory efficiencies, the optimization of our distribution centers and information technology investments.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 64.6% and in the first quarter, the figure rose 15.4%.

Revenue has risen the past four quarters. Revenue increased 8.2% to $872.2 million in the second quarter. The figure rose 1.6% in the first quarter from the year earlier and climbed 7.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 2 cents with net income of 29 cents versus a mean estimate of net income of 31 cents per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 53 cents per share, up from 50 cents ninety days ago. For the fiscal year, the average estimate has moved down from $1.55 a share to $1.53 over the last seven days.

Competitors to Watch: Best Buy (NYSE:BBY), PC Mall, Inc. (NASDAQ:MALL), PC Connection, Inc. (NASDAQ:PCCC), Gaiam, Inc. (NASDAQ:GAIA), BIDZ.com, Inc. (NASDAQ:BIDZ), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), hhgregg inc. (NYSE:HGG), Stamps.com Inc. (NASDAQ:STMP), Bluefly, Inc. (NASDAQ:BFLY), Overstock.com, Inc. (NASDAQ:OSTK), Amazon.com (NASDAQ:AMZN), eBay (NASDAQ:EBAY), U.S. Auto Parts Network, Inc. (NASDAQ:PRTS), and ValueVision Media, Inc. (NASDAQ:VVTV).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

More from The Cheat Sheet