{"id":1744,"date":"2016-02-08T17:26:54","date_gmt":"2016-02-08T15:26:54","guid":{"rendered":"http:\/\/www.blog.asmus-puhl.com\/?p=1744"},"modified":"2016-02-08T17:26:54","modified_gmt":"2016-02-08T15:26:54","slug":"colfax-stock-jumped-15-after-releasing-fy-2015-results","status":"publish","type":"post","link":"http:\/\/www.blog.asmus-puhl.com\/?p=1744","title":{"rendered":"Colfax stock jumped 15% after releasing FY 2015 results!"},"content":{"rendered":"<p>Colfax Corp. (NYSE: CFX) <a href=\"http:\/\/finance.yahoo.com\/news\/colfax-reports-fourth-quarter-2015-111206673.html\" target=\"_blank\">released FY and Q4 2015 results <\/a>last week and the stock price immediately jumped 15%.<br \/>\nIs everything fine again in this commodity related business? Not exactly!<\/p>\n<p>Net sales were $1.061 billion in the fourth quarter, a decrease of 12.0% from the prior year.<br \/>\nAdjusted net income was $63.0 million, or $0.51 per share, compared to $89.7 million for the fourth quarter of 2014, or $0.72 per share.<br \/>\nBut this was much better than analysts expected!<\/p>\n<p>Even if the downturn in the industry is and remains brutal Colfax is a very well managed company!<\/p>\n<p><a href=\"http:\/\/finance.yahoo.com\/news\/edited-transcript-cfx-earnings-conference-171017040.html\" target=\"_blank\">On the Conference Call <\/a>the new CEO Matthew L. Trerotola hinted at already announced additional cost reduction efforts to eliminate $100 million from the 2014 cost base by the end of 2016.<br \/>\nAnd he continued to announce good progress on these actions through the quarter, which will allow to recognize $50 million of incremental cost savings this year.<br \/>\nThese measures together with other cost reductions and \u201eColfax Business System\u201c tools will allow Colfax to increase the operating margin in 2016!<\/p>\n<p>Impressive as they continue to expect market headwinds!<\/p>\n<p>CFO C. Scott Brannan explained the historically strong cash flow generation in the fourth quarter: \u201eWe generated $152 million in operating cash flow in the 2015 fourth quarter of which $109 million is from a reduction in working capital and this was a major contributor to the strong free cash flow for the quarter and for 2015 in total. We finished 2015 with $100 million less debt than we started the year despite the use of $200 million for acquisitions and $27 million for share repurchases.\u201c<\/p>\n<p>Colfax will continue to \u201eadvance our acquisition cultivation efforts\u201c as Trerotola put it.\u00a0\u201eBut with current market conditions, we&#8217;re also deploying capital to attractive stock repurchases.\u201c<\/p>\n<p>A change in the commodity cycle does not seem to be in sight but Colfax is well prepared to take advantage when their industry market will change.<\/p>\n<p>Colfax stock is for long term investors who believe that commodity prices will not remain that low forever!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Colfax Corp. (NYSE: CFX) released FY and Q4 2015 results last week and the stock price immediately jumped 15%. Is everything fine again in this commodity related business? Not exactly! Net sales were $1.061 billion in the fourth quarter, a decrease of 12.0% from the prior year. Adjusted net income was $63.0 million, or $0.51 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/1744"}],"collection":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1744"}],"version-history":[{"count":6,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/1744\/revisions"}],"predecessor-version":[{"id":1750,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/1744\/revisions\/1750"}],"wp:attachment":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1744"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}