Colfax still faces headwinds from their end markets
Colfax Corp. (NYSE: CFX) released Q1 2016 earnings.
The conference call transcript has been released by Thompson Reuters!
Colfax’s adjusted net income dropped to $36.9 million, or $0.30 per share, compared to last year’s first-quarter mark of $44.5 million.
Revenue dropped 3.8% to $876.8 million during the first quarter.
Despite topping estimates the stock declined 20% over the last 5 days. The financial market is clearly spooked by bad conditions of Colfax’ end markets.
As Colfax new CEO Matt Trerotola pointed out in the conference call:
“We continue to make good progress on our cost reduction efforts, but our progress on growth initiatives has been offset by the end market environment, which remains choppy with a mix of positives and negative indicators and no clear sign of recovery in the near-term.”
With continued weakness in the oil and gas industry Colfax is focused on cost reduction and share buy backs.
Already they are monitoring market conditions and order activity to get an early picture of 2017.
Despite those excellent internal efforts Colfax’ stock will continue to suffer until market conditions improve.
When will that happen? Unfortunately no one knows.
Shares of Colfax remain a buy at these depressed prices for the long term investor who has the patience to wait until the markets turn! And one day they will turn, that’s for sure!