Archive for May, 2018

Colfax released Q1 2018 results!

May 5th, 2018 Comments off

Colfax Corp. (NYSE:CFX) the machinery company released Q1 2018 results!

Q1 net income was $ 24.5 million and EPS on an adjusted basis came in at $ 0.48

Revenue for the quarter was $ 880.9 million. Colfax grew sales 20% or 5% excluding acquisitions and FX.

Those results exceeded analysts expectations. CEO Matthew Trerotola was rather upbeat about the markets the company is working in: “Market demand continues to strengthen in most of this segment’s global markets, and we are using CBS to drive further productivity improvements and advance a range of growth initiatives.”

The transcript of the Conference Call was published by Thomson Reuters

Beyond these decent quarterly results in our point of view some important questions remain for an investor in Colfax stock:

Will the industrial markets Colfax is working in finally improve and provide tailwinds for the company now as the positive general economic cycle already reached a rather mature point?

Will structural headwinds as the change to sustainable energy away from fossil energy mean that Colfax is in a downsizing market for the forseeable future?

Is Colfax still a market leader or do they face stiff competition from similar companies which could mean that their low margins would never improve again?

We would be well advised to watch closely these trends over the next couple of months in order to decide whether Colfax stock is still worth our investment dollars.

Colfax expects FY 2018 earnings of $2.05 – $ 2.20 / share and the stock trades at a p/e ratio of 15.

Not too expensive, the market does not seem to expect a major improvement.

Colfax remains a “hold”!


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