Anixter International Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of communications supplier Anixter International (NYS: AXE) are popping today, up by 13% at the high, after the company reported third-quarter earnings that bested consensus estimates.

So what: Third-quarter revenue came in at $1.6 billion and adjusted earnings per share was $1.53. Revenue met consensus estimates, but bottom-line profit topped the $1.42 forecast by $0.11. The top and bottom lines put up healthy growth of 20% and 89% respectively.

Now what: During the quarter, the company closed its previously announced divestiture of the Anixter Aerospace Hardware Division. The transaction resulted in a net loss from discontinued operations of $18.1 million, and the company received net sales proceeds of $137.6 million. Electrical distribution remains a fragmented market, but Anixter is able to throw its weight around and get better deals with suppliers.

Interested in more info on Anixter International? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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