Colfax released FY 2016 results!
Colfax Corp. (NYSE: CFX) released FY and Q4 2016 results!
Earnings per share for the quarter came in $0.02 ahead of expectations!
Colfax also released a slide presentation of the results and Seeking Alpha published the conference call transcript!
The company continued to restructure and to improve profitibility while still waiting for their markets to fully recover. CEO Matt Trerotola emphasized that Colfax is committed to drive segment operating margins to mid teens over the next 3 to 5 years.
As a first positive sign from the industrial markets gas and fluid handling orders grew 7% organically.
Another goal is to improve the ability to drive growth: “An important part of building that muscle is leveraging the power of the Colfax Business System to improve commercial processes, such as new product development, customer service, segmentation, and channel management”.
And finally after the acquisition of the relatively small Arc Machines business, a leader in high precision, welding and mission for mission-critical applications the M&A pipeline appears to be filled with other candidates to drive future growth.
We think investors are best advised to build up a position and then to wait until Colfax’ industrial markets will fully recover. Then the company should profit in an enormous way because of their slim and very competitive internal structures and this again should propel the stock price!