Colfax Corp., a company in transition!
Colfax Corp. (NYSE: CFX) released better than expected Q4 and FY 2018 results!
Q4 adjusted earnings in the fourth quarter were 69 cents per share.
Colfax’s net sales were $985.2 million, reflecting growth of 12.7% from the year-ago quarter.
Revenues from the Air and Gas Handling segment increased 9.7% to $410.3 million and Revenues from the Fabrication Technology segment totaled $574.9 million, an increase of 14.9% year over year.
Adjusted operating income in the quarter under review increased 34.1% year over year to $92.4 million and adjusted operating margin grew 150 bps to 9.4%
But Colfax is a company in transition!
They acquired DLO Global Inc. a global orthopedic solutions company and want to complete this transaction in the first quarter of 2019.
Furthermore they are looking for strategic options for its Air & Gas Handling platform which means they want to sell this segment.
So Colfax in one year will most probably look much different from today and today’s numbers will not be so meaningful.
Therefore Colfax should remain a Hold for investors until the picture becomes clearer:
Will they be able to successful integrate DJO Global?
Will they sell the Air and Gas Handling business at a good price?
Will management be able to lead a complete different business as medical solutions are?
Perhaps there will already be first hints at the end of the first quarter of 2019!