EnPro Beats Earnings; Lags Rev in Q2 - Analyst Blog

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Industrial goods manufacturer EnPro Industries, Inc. ( NPO ) reported mixed results for the second quarter of 2013, ended Jun 30, 2013. EnPro's adjusted earnings per share were 87 cents, swelling 14.5% year over year. Adjusted earnings also beat the Zacks Consensus Estimate of 69 cents by 26.1%, driven by solid revenues and strong margins in the quarter.

On a GAAP basis, earnings per share were 35 cents in the quarter, declining from 47 cents in the year-ago quarter.

Revenues : EnPro's revenues in the reported quarter were $305.8 million, compared with $301.7 million in the second quarter of 2012. The year-over-year increase in revenues was on the back of accretive acquisition, strong demand for heavy-duty truck products and higher sales of diesel engine environmental upgrades. Revenues, however, missed the Zacks Consensus Estimate of $307.0 million.


Costs/Margins : Gross margin for the reported quarter increased 160 basis points (bps) year over year to 35.7%. SG&A expenses were $75.6 million, marginally down from $75.8 million recorded in the year-ago quarter.

Segment Details : Sealing Products revenues improved slightly to $165.9 million from $165.1 million in the second quarter of 2012. Operating margin for the segment was 16.7%, increasing 290 bps year over year.

Revenues from Engineered Products remained flat year over year at $95.1 million. Segment's operating margin stood at 9.0% - a 180 bps increase from the year-ago quarter.

Engine Products and Services generated revenues of $45.0 million compared with $42.1million in the year-ago quarter. Operating margin for the segment was 14.2%, significantly down from 18.5% in the year-earlier quarter.

Balance Sheet/Cash Flow : Exiting the second quarter of 2013, EnPro's cash and cash equivalents stood at $58.2 million, increasing considerably from $48.5 million in the prior quarter. Long-term debt stood at $48.6 million, versus $57.1 million recorded in the preceding quarter.

For the six months ended Jun 30, 2013, cash flow from operating activities was flat year over year at $5.5 million. In the first half of 2013, EnPro incurred capital expenditure of $17.0 million, compared with $13.1 million in the first half of 2012.

Outlook : EnPro expects to leverage its new products and markets to have a stronger market position. However, the company does not foresee much improvement in either its European or North American markets. In the latter half of 2013, revenues in the Engine Products and Services segment are expected to decline by roughly 10% year over year.

Other Stocks to Consider

Gorman-Rupp Co. ( GRC ) released its second-quarter results on Jul 26, 2013. The company reported earnings per share of 43 cents, beating the Zacks Consensus Estimate of 33 cents by 30.3%.

Barnes Group Inc. ( B ) released its second-quarter results on Jul 26, 2013. The company reported earnings per share of 47 cents, in line with the Zacks Consensus Estimate.

Chart Industries Inc. ( GTLS ) released its second-quarter results on Jul 30, 2013. The company reported earnings per share of 77 cents, in line with the Zacks Consensus Estimate.

EnPro currently carries a Zacks Rank #3 (Hold).



BARNES GRP (B): Free Stock Analysis Report

GORMAN RUPP CO (GRC): Free Stock Analysis Report

CHART INDUSTRIE (GTLS): Free Stock Analysis Report

ENPRO INDUS INC (NPO): Free Stock Analysis Report

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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: B , GRC , GTLS , NPO

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