Colfax 2012 Q1 Earnings
Colfax (NYSE: CFX) one of the stocks this blog follows on a regular basis reported its 1st quarter 2012 earnings.
The results lagged expectations but the company managed to beat the non GAAP EPS estimates by 2 cents. Margins shrank across the board.
But is this really so important at this stage of Colfax’ development?
Colfax is well funded and has one big task to accomplish: the integration of the much bigger Charter International. They need to realize synergies and to get the operating margins up to Colfax’ level.
For the quarter they reported revenues more than 5 times higher than in the same quarter of last year. This explains the mere size of that task!
But they are 100% determined to do that: Just look at the rather unusual CEO change mentioned in my last post. And they already talk about possibilities of other acquisitions in the future!
Analysts expect EPS of $ 1.55 in FY 2012 on a revenue basis of $ bil 4 . That puts the p/e at about 20.
That doesn’t seam cheap as the market expects they will get things done.
But insiders appear to think the contrary as their buying in recent months suggests.
… you problably should believe them and position yourself accordingly!