Back to top

Analyst Blog

Luxfer Group Lags Earnings Est.
 
Luxfer Group (LXFR - Snapshot Report) reported its first quarter 2013 financial results on May 7, 2013. Adjusted net income in the quarter plummeted 15.3% year over year and came in at $9.4 million. Earnings per ADS in the quarter were 34 cents, missing the Zacks Consensus Estimate of 43 cents.

Revenue

Revenues for Luxfer Group were down 13.4% to $122.4 million. Results were negatively impacted by negative foreign currency translation to the tune of $1.5 million.

Gas Cylinders Division generated roughly $68.4 million in revenues, up 11.9% year over year while the Elektron Division’s revenues amounted to $54.0 million, down 32.8% year over year.

Margins

Cost of sales in the first quarter went down 12.6% year over year and represented 76.9% of total revenue; up slightly from 76.2% in the year-ago quarter. Distribution and administrative costs, as a percentage of total revenue, stood at 1.3% and 9.6%, respectively. Operating margin in the quarter was 11.8%, down 110 basis points year over year.

Balance Sheet

Exiting the first quarter 2013, cash and short-term deposits balance of Luxfer Group stood at $37.0 million, down 8.0% from $40.2 million in the previous quarter. Bank and other loans at the end of the quarter stood at $63.5 million.
 
Cash Flow

Net cash flow from operating activities in the quarter was $9.6 million, flat year over year while capital expenditure was at $3.9 million versus $3.1 million in the year-ago quarter.

Outlook

Management at Luxfer Group anticipates trading profit to be $1.5-$2.5 million, higher sequentially in the second quarter of 2013 while roughly $2.0-$5.0 million higher year over year in 2013.

Luxfer Group currently has a market capitalization of $506 million and carries a Zacks Rank #2 (Buy). Other stocks to watch out for are Graco Inc. (GGG - Snapshot Report), Middleby Corp. (MIDD - Analyst Report) and Tri-Tech Holding, Inc. , each with a Zacks Rank #1 (Strong Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SYNAPTICS I… SYNA 78.11 +8.14%
CENTURY ALU… CENX 19.88 +5.74%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
THE PANTRY… PTRY 18.41 +2.79%