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Milacron (MCRN) Tops Q2 Earnings & Revenues, Reaffirms View

Milacron Holdings Corp.MCRN manufactures, distributes, and services engineered and customized systems within the plastic technology and processing industry in North America, Europe, Asia, and internationally.

Although Milacron Holdings caters to diverse end-markets, demand will continue to be affected by cyclical trends in client capital expenditures, industrial production and construction activity. The company remains subject to currency translation risk, given its sizeable international operations. Further, decline in new orders and sluggish volumes in the Advanced Plastic Processing Technologies segment remain concerns. Free cash flow will be constrained by higher working capital needs and the capital investment required for restructuring its European manufacturing footprint. Nevertheless, its superior organic sales growth profile, cost cutting efforts and balance sheet deleveraging will ensure sustained earnings growth. Moreover, Milacron Holdings continues to grow though acquisitions.

We have highlighted some of the key stats from this just revealed announcement below:

Estimate Trend & Surprise History: Investors should note that the earnings estimate revisions for Milacron Holdings depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days and currently stands at 38 cents for the first quarter.

In the past four quarters, the company managed to beat the Zacks Consensus Estimate on 2 occasions. The company has an average positive surprise of 15.27%.

MILACRON HLDGS Price and EPS Surprise

MILACRON HLDGS Price and EPS Surprise | MILACRON HLDGS Quote

Earnings: Milacron Holdings beats on second quarter earnings estimates. Our consensus called for EPS of 38 cents, and the company reported adjusted EPS of 41 cents.

Revenue: Milacron Holdings posted revenues of $308 million which surpassed the Zacks Consensus Estimate for revenues of $304 million.

Key Developments to Note: Milacron Holdings maintained its organic revenue growth guidance in the range of 0% to 2% for the full year 2016. Adjusted EBITDA margins are projected in the range of 18.5% to 19.0%.

Zacks Rank: Currently, Milacron Holdings has a Zacks Rank #4 (Sell). But that could change following Milacron Holdings' earnings report which was just released.

Market Reaction: Milacron Holdings' shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this Milacron Holdings earnings report later!

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MILACRON HLDGS (MCRN): 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 Nasdaq, Inc.


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

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