Twin Disc Earnings: Here’s Why Shares are Down Now

Twin Disc Inc. (NASDAQ:TWIN) delivered a profit and met 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. Shares are down 0.24%.

Twin Disc Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 56.1% to $0.18 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Decreased 21.03% to $75.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Twin Disc Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company missed the mean analyst estimate of $0.18. It beat the average revenue estimate of $73.2 million.

Quoting Management: Commenting on the results, Michael E. Batten, Chairman and Chief Executive Officer, said: “On many levels, fiscal 2013 was a transitional year for the Company as we continued to build a solid foundation to support our long-term growth strategies. A key component of our strategic plan has been to enhance Twin Disc’s position as a global company. For the sixth consecutive year, the majority of our sales have been to customers outside the U.S. We remain committed to marketing the Twin Disc brand internationally with an expanding focus on emerging markets. As a result, China now represents 10 percent of overall sales and has become the second largest market for sales after the U.S.

Key Stats (on next page)…

Revenue increased 11.24% from $68.23 million in the previous quarter. EPS increased to $0.18 in the quarter versus EPS of $-0.07 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.13 and has not changed. For the current year, the average estimate has moved up from a profit of $0.62 to a profit of $0.72 over the last ninety days.

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

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