Colfax surprised the markets!
Colfax Corp. (NYSE: CFX) the fluid handling and fabrication technology group surprised the markets with Q3 2016 earnings.
The company released a profit of 23 cents per share.despite a 9.3% decrease of quarterly revenue to $879.2 million. Earnings, adjusted for one-time gains and costs, were 39 cents per share, 4 cents better than analysts expectations.
Permanent cost reductions, application of „Colfax Business System (CBS)“ and strategic growth initiatives contributed to these results as CEO Matt Trerotola pointed out in the conference call.
“Although our end markets have not improved, the impact of CBS and our strategic growth initiatives are positioning us to outperform. This was demonstrated by several large project winds and asset handling this quarter, and by our Fabrication Technologies Teams’ growth in emerging markets.”
So CFO Chris Hix consequently raised the lower end of the previously-issued adjusted EPS range by $0.05 and now expects $1.50 to $1.55 for full-year 2016 which gave a boost to the stock price!
It really seems that Colfax finally is able to turn things around!
The market environment is still difficult but they already start to grow project orders and continue to apply vigorous cost reductions. This should lead to a huge upside once their relative industrial markets will improve.
At $ 31.85 Colfax stock is valued at a p/e ratio of 21.
At this price the stock market is already anticipating the company’s improvement but it doesn’t seem to late for new investors to open a position in CFX!