Universal Stainless & Alloy Products Earnings: Here’s Why Investors are Not Happy Now

Universal Stainless & Alloy Products Inc. (NASDAQ:USAP) 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 1.37%.

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Universal Stainless & Alloy Products Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 98.73% to $0.01 in the quarter versus EPS of $0.79 in the year-earlier quarter.

Revenue: Decreased 34.19% to $49.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Universal Stainless & Alloy Products Inc. reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.2. It missed the average revenue estimate of $51.8 million.

Quoting Management: Chairman, President and CEO Dennis Oates commented: “Our sales, shipment volume and order entry demonstrated sequential improvement in the first quarter of 2013, but they were well below their record levels in the first quarter last year. Demand recovery in most of our end markets is proceeding slowly. Customers within the supply channel continued to closely manage their inventory levels, and inventory correction by customers also continued in the quarter. Lower value shipment mix in a competitive marketplace further affected our performance.”

Key Stats (on next page)…

Revenue increased 4.14% from $47.15 million in the previous quarter. EPS decreased 95.83% from $0.24 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 $0.54 to a profit $0.41. For the current year, the average estimate has moved down from a profit of $2.18 to a profit of $1.8 over the last ninety days.

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