Twin Disc Earnings: Here’s Why the Stock is Falling Now

Twin Disc Inc. (NASDAQ:TWIN) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.53%.

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Twin Disc Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.07 in the quarter versus EPS of $0.81 in the year-earlier quarter.

Revenue: Decreased 28.55% to $68.23 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Twin Disc Inc. reported adjusted EPS loss of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.13. It beat the average revenue estimate of $67.05 million.

Quoting Management: Christopher J. Eperjesy, Vice President – Finance, Chief Financial Officer and Treasurer, stated: “We continue to invest in inventory to support the growth in demand we are experiencing from customers in Asia for commercial marine and pressure pumping products. With this said, we are managing our inventory levels to reflect overall market demand and expect inventory levels to decline sequentially. Our balance sheet and liquidity remain strong. At March 29, 2013, we had total cash of $17,161,000, compared to cash of $15,701,000 at June 30, 2012. Total debt net of cash, was $17,541,000 at March 29, 2013, compared to $16,444,000 at June 30, 2012, and $27,480,000 at March 30, 2012. Capital expenditures through the first nine months of fiscal 2013 were $5,118,000 and we anticipate investing slightly less than the $10,000,000 in capital expenditures we budgeted for this fiscal year.”

Key Stats (on next page)…

Revenue decreased 5.67% from $72.33 million in the previous quarter. EPS decreased to $-0.07 in the quarter versus EPS of $0.29 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.18 to a profit $0.21. For the current year, the average estimate has moved up from a profit of $0.67 to a profit of $0.75 over the last ninety days.

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