Luxfer Q1 Earnings Lag Ests, Up Y/Y - Analyst Blog

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Luxfer Holdings PLC ( LXFR ) reported lower-than-expected results for the first quarter 2014. Adjusted earnings of 28 cents per American Depositary Shares (ADS) lagged the Zacks Consensus Estimate of 32 cents per ADS. Compared with the year-ago quarter, the bottom-line result dropped by 17.6%.

Revenues

Luxfer generated revenues of $123.3 million in first quarter 2014, up 0.7% year over year and ahead of the Zacks Consensus Estimate of $116 million. Much of the top-line improvement in the Elektron division was offset by weak results in the Gas Cylinders division.

Details of the segmental performance are provided below:

Revenues from the Gas Cylinders division were roughly $66.1 million, down 3.4% year over year and representing 53.6% of total revenue. The Elektron division generated revenues of $57.2 million, up 5.9% year over year and marking 46.4% of total revenue.

Costs/Margins

Cost of sales in the first quarter 2014 inched up 0.3% year over year and represented 76.6% of total revenue, down from 76.9% reported in the year-ago quarter. Distribution and administrative costs, as a percentage of total revenue, came in at 1.7% and 11.8%, respectively.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $16.9 million versus $18.7 million in the year-ago quarter.

Balance Sheet/ Cash Flow

Exiting the first quarter 2014, Luxfer had cash and short-term deposits of $18.5 million, down 34.9% sequentially. Bank and other loans were flat at $63.8 million.

In the quarter, Luxfer generated cash of $1.3 million from its operating activities, down significantly from $9.6 million in the year-ago quarter. Capital expenditure was down 20.5% year over year to $3.1 million. Dividends distributed in the quarter amounted to $2.7 million.

Luxfer Holdings has a $535.5 million market capitalization and carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the machinery industry include Gorman-Rupp Co. ( GRC ), Illinois Tool Works Inc. ( ITW ) and Nordson Corporation ( NDSN ). While Gorman-Rupp carries a Zacks Rank #1 (Strong Buy), both Illinois Tool Works and Nordson hold a Zacks Rank #2 (Buy).


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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: ADS , GRC , ITW , LXFR , NDSN

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