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Milacron Holdings Corp reported second-quarter fiscal 2016 adjusted earnings per share of 41 cents, a 17% improvement from 35 cents in the year-ago quarter. Earnings came ahead of the Zacks Consensus Estimate, a positive earnings surprise of 8%.
Including one-time items, the company reported earnings per share of $0.18 per share in the quarter compared with loss of $0.51 per share in the year-ago quarter. Milacron’s share price has gone up 9% since the earnings announcement.
Operational Update
Milacron reported revenues of $308 million, which improved 2% year over year. Revenues beat the Zacks Consensus Estimate of $304 million.
Cost of sales during the quarter increased 2% year over year to $201 million compared to the prior-year quarter. Gross profit increased 3% year over year to $107 million with gross margin expanding 20 basis points to 34.8%.
Selling, general and administrative expenses decreased 11% year over year to $64 million. Milacron reported adjusted operating profit of $43 million which increased 35% from $32 million in the year-ago quarter. Adjusted EBITDA improved to $57.8 million for the quarter from $56 million in the prior-year quarter.
Segment Results
Advanced Plastic Processing Technologies: Net sales moved up 5% year over year to $179 million. Excluding $1.5 million of unfavorable effects of currency movements, sales increased 5.4% over the prior-year quarter. Adjusted EBITDA increased 3% to $23 million.
Melt Delivery and Control Systems: Net sales remained flat at $101 million. Excluding $1.2 million of unfavorable influence of currency movements, sales inched up 1.2% over the prior-year period. Adjusted EBITDA improved 2% to $33 million.
Fluid Technologies: Net sales declined 3% year over year to $29 million. Excluding $0.6 million of unfavorable effects of currency movements, sales edged down 1.4% over the prior-year period. Adjusted EBITDA increased 3% to $6.5 million.
As of Jun 30, 2016, Quanex Building had cash and cash equivalents of $99 million compared with $67 million as of Dec 31, 2015. The company generated $49 million in cash from operating activities in the first half versus a cash usage of $9.7 million in the prior-year comparable period. Long-term debt was $0.2 million as of Jun 30, 2016, compared with $0.4 million as of Dec 31, 2015.
Outlook
Milacron retained its fiscal 2016 guidance of 0%–2% organic sales growth and adjusted EBITDA margins between 18.5% and 19.0%. Capital expenditures is projected at approximately $50–$55 million, interest expense to be approximately $60 million, cash taxes to be between $30–$35 million, an effective tax rate of approximately 30% and shares outstanding to remain flat in 2016.
Milacron currently carries a Zacks Rank #3 (Hold). Some better ranked stocks in the sector include Columbus McKinnon Corp. (CMCO - Free Report) , Gorman-Rupp Co. (GRC - Free Report) and Hudson Technologies Inc. (HDSN - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy).
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Milacron (MCRN) Q2 Earnings Beat, Retains FY16 Guidance
Milacron Holdings Corp reported second-quarter fiscal 2016 adjusted earnings per share of 41 cents, a 17% improvement from 35 cents in the year-ago quarter. Earnings came ahead of the Zacks Consensus Estimate, a positive earnings surprise of 8%.
Including one-time items, the company reported earnings per share of $0.18 per share in the quarter compared with loss of $0.51 per share in the year-ago quarter. Milacron’s share price has gone up 9% since the earnings announcement.
Operational Update
Milacron reported revenues of $308 million, which improved 2% year over year. Revenues beat the Zacks Consensus Estimate of $304 million.
Cost of sales during the quarter increased 2% year over year to $201 million compared to the prior-year quarter. Gross profit increased 3% year over year to $107 million with gross margin expanding 20 basis points to 34.8%.
Selling, general and administrative expenses decreased 11% year over year to $64 million. Milacron reported adjusted operating profit of $43 million which increased 35% from $32 million in the year-ago quarter. Adjusted EBITDA improved to $57.8 million for the quarter from $56 million in the prior-year quarter.
Segment Results
Advanced Plastic Processing Technologies: Net sales moved up 5% year over year to $179 million. Excluding $1.5 million of unfavorable effects of currency movements, sales increased 5.4% over the prior-year quarter. Adjusted EBITDA increased 3% to $23 million.
Melt Delivery and Control Systems: Net sales remained flat at $101 million. Excluding $1.2 million of unfavorable influence of currency movements, sales inched up 1.2% over the prior-year period. Adjusted EBITDA improved 2% to $33 million.
Fluid Technologies: Net sales declined 3% year over year to $29 million. Excluding $0.6 million of unfavorable effects of currency movements, sales edged down 1.4% over the prior-year period. Adjusted EBITDA increased 3% to $6.5 million.
MILACRON HLDGS Price, Consensus and EPS Surprise
MILACRON HLDGS Price, Consensus and EPS Surprise | MILACRON HLDGS Quote
Financial Update
As of Jun 30, 2016, Quanex Building had cash and cash equivalents of $99 million compared with $67 million as of Dec 31, 2015. The company generated $49 million in cash from operating activities in the first half versus a cash usage of $9.7 million in the prior-year comparable period. Long-term debt was $0.2 million as of Jun 30, 2016, compared with $0.4 million as of Dec 31, 2015.
Outlook
Milacron retained its fiscal 2016 guidance of 0%–2% organic sales growth and adjusted EBITDA margins between 18.5% and 19.0%. Capital expenditures is projected at approximately $50–$55 million, interest expense to be approximately $60 million, cash taxes to be between $30–$35 million, an effective tax rate of approximately 30% and shares outstanding to remain flat in 2016.
Milacron currently carries a Zacks Rank #3 (Hold). Some better ranked stocks in the sector include Columbus McKinnon Corp. (CMCO - Free Report) , Gorman-Rupp Co. (GRC - Free Report) and Hudson Technologies Inc. (HDSN - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>