), a manufacturing and engineering company, reported adjusted
earnings per share of 56 cents for the third quarter 2013. This
represents an increase of 69.7% over the year-ago quarter and
three cents above the Zacks Consensus Estimate of 53 cents.
Colfax generated net sales of $1,014.6 million in the third
quarter 2013, up 6.3% year over year. The increase can be
attributed to 3.0% gains from existing businesses and 3.9%
contribution from acquisitions, partially offset by 0.6% negative
foreign currency translation impact.
Total orders in the quarter were $533.3 million, up 20.2% year
over year while backlog at the end of the quarter stood at
$1,446.9 million, compared with $1,382.4 million at the end of
third quarter 2012.
Colfax generates revenue under two heads, which are briefly
Revenue from the Gas and Fluid Handling segment came in at $511.4
million, up 10.0% year over year. Fabrication Technology revenue
grew 2.8% year over year to $503.2 million.
Cost of goods of Colfax sold in the third quarter 2013 increased
4.2% year over year and as a percentage of revenue was at 68.4%,
down 140 basis points year over year. Gross margin in the quarter
was 31.6%. SG&A expenses, as a percentage of revenue, was
20.5%, against 22.8% in the year-ago quarter. Colfax's adjusted
operating income margin expanded 220 basis points year over year
to 11.1% in the quarter.
Balance Sheet/ Cash Flow
Exiting the third quarter of 2013, cash and cash equivalents of
Colfax stood at $639.3 million versus $587.9 million in the
previous quarter. Long-term debt was stable at $1.4 billion.
Colfax's cash flow from operating activities was $101.2 million,
signifying a major improvement from $40.4 million in the third
quarter 2012. Capital spending in the quarter was $15.3 million,
down from $17.6 million in the year-ago quarter.
For 2013, management of Colfax anticipates adjusted earnings per
share to be within $1.98-$2.03 range versus $1.95-$2.10 expected
earlier. Revenue is expected to be within $4.12-$4.15 million
For the fourth quarter 2013, management anticipates earnings per
share to be within 56-60 cents range and revenue within
$1.085-$1.115 million range.
Colfax currently has a market capitalization of $5.7 billion. The
stock currently holds Zacks Rank #2 (Buy). Other companies to
look out for are
Adept Technology Inc.
) with a Zacks Rank #1 (Strong Buy) while
), each come with a Zacks Rank #2 (Buy).
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