Colfax Beats on EPS but GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

Colfax (NYS: CFX) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q1), Colfax met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss.


Margins dropped across the board.

Revenue details
Colfax tallied revenue of $886.4 million. The nine analysts polled by S&P Capital IQ wanted to see a top line of $893.6 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $158.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.23. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS were -$1.33 for Q1 compared to $0.15 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.8%, 480 basis points worse than the prior-year quarter. Operating margin was 3.3%, 720 basis points worse than the prior-year quarter. Net margin was -11.9%, 1,600 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $1.55.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 267 members out of 280 rating the stock outperform, and 13 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Colfax a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Colfax is outperform, with an average price target of $38.56.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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