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Luxfer (LXFR) Q1 Earnings Top, Fall Y/Y, View Positive
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Machinery company Luxfer Holdings PLC’s (LXFR - Free Report) first-quarter 2017 results were impressive, as evident from an earnings beat of 35%.
The company’s adjusted earnings came in at 27 cents per American Depositary Shares, surpassing the Zacks Consensus Estimate of 20 cents. However, earnings fell nearly 10% from the year-ago tally of 30 cents.
Revenues generated in the quarter totaled $103.4 million, decreasing roughly 5% year over year. The decline was triggered by adverse foreign currency translation impact.
Segmental Revenues
Luxfer Holdings reports top-line results under two segmental heads. First-quarter result is briefly discussed below:
Revenues from the Gas Cylinders division were roughly $54.4 million, down 8% year over year, representing 52.6% of net revenue. The Elektron division generated revenues of $49 million, down 1.4% and accounting for 47.4% of net revenue.
Costs/Margins
In the said quarter, Luxfer Holdings’ margin profile improved. Cost of sales represented roughly 75.1% of net revenue compared with 75.7% in the year-ago quarter. Lower-proportioned cost of sales in net revenue increased the gross margin by 60 basis points (bps) to 24.9%. Distribution and administrative costs came in at 2% and 12.8% of revenues, respectively.
Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) were $15.3 million, below $16.8 million in the year-ago quarter, while margin decreased 60 bps to 14.8%.
Balance Sheet & Cash Flow
Luxfer Holdings exited the first quarter with cash and cash equivalents of $40.4 million, above $13.6 million in the preceding quarter-end. Bank and other loans were $146.3 million versus $121 million in the previous quarter.
In the quarter, the company’s net cash generated from operating activities totaled $9.6 million, above $3 million generated in the year-ago quarter. Capital expenditure was $2.3 million compared with $3.2 million in the first quarter 2016. Dividend distributed amounted to $3.3 million.
Outlook: For 2017, Luxfer Holdings anticipates earnings and EBITDA growth to be at least 10%. The forecast is based on stability in magnesium product lines, improving order for chemical catalysis products and U.S. defense, benefits from cost-reduction initiatives and new products.
With a market capitalization of $309.6 million, Luxfer Holdings PLC presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the machinery industry include Applied Industrial Technologies, Inc. (AIT - Free Report) , Graco Inc. (GGG - Free Report) and Parker-Hannifin Corporation (PH - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies’ financial performance was impressive, with an average positive earnings surprise of 9.78% for the last four quarters. Earnings estimates for fiscal 2017 and fiscal 2018 were revised upward over the last 60 days.
Graco reported an average positive earnings surprise of 13.88% in the trailing four quarters. The company’s bottom-line expectations for 2017 and 2018 improved over the past 60 days.
Parker-Hannifin Corporation’ financial performance was remarkable, with an average positive earnings surprise of 14.94% for the last four quarters. Earnings estimates for fiscal 2017 and fiscal 2018 were revised upward over the last 60 days.
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Luxfer (LXFR) Q1 Earnings Top, Fall Y/Y, View Positive
Machinery company Luxfer Holdings PLC’s (LXFR - Free Report) first-quarter 2017 results were impressive, as evident from an earnings beat of 35%.
The company’s adjusted earnings came in at 27 cents per American Depositary Shares, surpassing the Zacks Consensus Estimate of 20 cents. However, earnings fell nearly 10% from the year-ago tally of 30 cents.
Revenues generated in the quarter totaled $103.4 million, decreasing roughly 5% year over year. The decline was triggered by adverse foreign currency translation impact.
Segmental Revenues
Luxfer Holdings reports top-line results under two segmental heads. First-quarter result is briefly discussed below:
Revenues from the Gas Cylinders division were roughly $54.4 million, down 8% year over year, representing 52.6% of net revenue. The Elektron division generated revenues of $49 million, down 1.4% and accounting for 47.4% of net revenue.
Costs/Margins
In the said quarter, Luxfer Holdings’ margin profile improved. Cost of sales represented roughly 75.1% of net revenue compared with 75.7% in the year-ago quarter. Lower-proportioned cost of sales in net revenue increased the gross margin by 60 basis points (bps) to 24.9%. Distribution and administrative costs came in at 2% and 12.8% of revenues, respectively.
Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) were $15.3 million, below $16.8 million in the year-ago quarter, while margin decreased 60 bps to 14.8%.
Balance Sheet & Cash Flow
Luxfer Holdings exited the first quarter with cash and cash equivalents of $40.4 million, above $13.6 million in the preceding quarter-end. Bank and other loans were $146.3 million versus $121 million in the previous quarter.
In the quarter, the company’s net cash generated from operating activities totaled $9.6 million, above $3 million generated in the year-ago quarter. Capital expenditure was $2.3 million compared with $3.2 million in the first quarter 2016. Dividend distributed amounted to $3.3 million.
Outlook: For 2017, Luxfer Holdings anticipates earnings and EBITDA growth to be at least 10%. The forecast is based on stability in magnesium product lines, improving order for chemical catalysis products and U.S. defense, benefits from cost-reduction initiatives and new products.
Luxfer Holdings PLC Price and Consensus
Luxfer Holdings PLC Price and Consensus | Luxfer Holdings PLC Quote
Zacks Rank & Key Picks
With a market capitalization of $309.6 million, Luxfer Holdings PLC presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the machinery industry include Applied Industrial Technologies, Inc. (AIT - Free Report) , Graco Inc. (GGG - Free Report) and Parker-Hannifin Corporation (PH - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies’ financial performance was impressive, with an average positive earnings surprise of 9.78% for the last four quarters. Earnings estimates for fiscal 2017 and fiscal 2018 were revised upward over the last 60 days.
Graco reported an average positive earnings surprise of 13.88% in the trailing four quarters. The company’s bottom-line expectations for 2017 and 2018 improved over the past 60 days.
Parker-Hannifin Corporation’ financial performance was remarkable, with an average positive earnings surprise of 14.94% for the last four quarters. Earnings estimates for fiscal 2017 and fiscal 2018 were revised upward over the last 60 days.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>