Colfax's 2Q Earnings Beats Est. - Analyst Blog

By
A A A

Colfax Corporation ( CFX ), a manufacturing and engineering company, reported adjusted earnings per share of 54 cents for the second quarter 2013. This represents an increase of 60% over the year-ago quarter and a cent above the Zacks Consensus Estimate of 53 cents.

Earnings result for the quarter excludes 2 cents gain related to the resolution of a previous tax position, including which earnings in the quarter comes to 56 cents per share.

Revenue

Colfax recorded net sales of $1,074.1 million in the second quarter, up 2.7% compared with the year-ago quarter. The increase can be attributed to 3.6% contribution from acquisitions, partially offset by 0.3% decline in organic businesses and 0.6% negative foreign currency translation impact.

Total orders in the quarter were $478.2 million, down 10.5% year over year while backlog at the end of the quarter stood at $1,388.4 million, compared with $1,375.9 million at the end of second quarter 2012.

Colfax generates revenue under two heads, which are briefly discussed below:

Revenue from the Gas and Fluid Handling segment came in at $516.8 million, up 4.1% year over year. Fabrication Technology revenue grew 1.5% year over year to $557.4 million.

Margins

Colfax's cost of goods sold in the second quarter 2013 increased 0.8% year over year and as a percentage of revenue was 68.5%, down 140 basis points year over year. Gross margin in the quarter was 31.5%. SG&A expenses, as a percentage of revenue, was 20.6%, against 22.2% in the year-ago quarter. Colfax's adjusted operating income margin expanded 160 basis points year over year to 10.9% in the quarter.

Balance Sheet/ Cash Flow

Exiting the second quarter of 2013, Colfax's cash and cash equivalents stood at $587.9 million as against $234.8 million in the previous quarter. Long-term debt was stable at $1.4 billion.

Colfax's cash flow from operating activities was $99.1 million, signifying a major improvement from cash use of $13.4 million in the first quarter 2013. Capital spending in the quarter was $17.6 million, roughly flat from the previous quarter and down compared with $22.1 million in the year-ago quarter.

Outlook

For 2013, management of Colfax anticipates adjusted earnings per share to range within $1.95-$2.10 while GAAP earnings is expected to fall within $1.70-$1.85 per share range.

Colfax currently has a market capitalization of $4.9 billion. The stock currently holds Zacks Rank #4 (Sell). Other companies to look out for are Chart Industries Inc. ( GTLS ), Dover Corporation ( DOV ) and Gardner Denver Inc. ( GDI ), each with Zacks Rank #2 (Buy).



COLFAX CORP (CFX): Free Stock Analysis Report

DOVER CORP (DOV): Free Stock Analysis Report

GARDNER DENVER (GDI): Free Stock Analysis Report

CHART INDUSTRIE (GTLS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: CFX , DOV , GDI , GTLS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

How to Fire Your Adviser
How to Fire Your Adviser            

Stocks

Referenced

100%
100%
100%

Most Active by Volume

4,784,146
  • $42.57 ▼ 0.33%
4,593,180
  • $101.14 ▲ 0.28%
3,778,176
  • $16.78 ▲ 0.42%
3,375,003
    $16.76 unch
3,331,192
  • $17.78 ▲ 1.54%
3,317,734
  • $46.50 ▼ 0.56%
2,908,511
  • $16.15 ▼ 0.06%
2,559,480
  • $99.43 ▲ 0.05%
As of 9/17/2014, 09:42 AM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com