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Barnes Group (B) Q2 Earnings & Revenues Miss, Decline Y/Y
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Barnes Group, Inc. (B - Free Report) reported disappointing second-quarter 2019 results, wherein both earnings and revenues missed estimates.
Earnings/ Revenues
Quarterly adjusted earnings came in at 75 cents per share, down 17% year over year from 90 cents. Moreover, the bottom line lagged the Zacks Consensus Estimate of 78 cents.
Revenues were $372 million, down 1% year over year. Also, the figure declined 4% organically. Notably, the top line missed the consensus estimate of $387 million.
Barnes Group, Inc. Price, Consensus and EPS Surprise
Revenues from the Industrial segment were $233.4 million, down 6% year over year. The decline was caused by continued softness in its automotive end markets and unfavorable impact of foreign currency translation.
The Aerospace segment generated revenues of $138.3 million, up 10% year over year. The improvement was driven by solid aerospace OEM (Original Equipment Manufacturer) sales and growth in maintenance, repair and overhaul, and spare parts sales.
Costs/Margins
Cost of sales in the second quarter was $238.3 million, up 0.3% year over year. Selling, general and administrative expenses were $76.4 million, up from $73.8 million. Adjusted operating margin was 15.7%, down 130 basis points.
Balance Sheet/Cash Flow
Exiting the second quarter, Barnes Group had cash and cash equivalents of $94.9 million, down from $100.7 million recorded as of Dec 31, 2018. At the end of the reported quarter, long-term debt was $889.1 million compared with $936.4 million as of Dec 31, 2018.
In the first six months of 2019, cash from operating activities totaled $108.2 million compared with $88.6 million generated in the comparable year-ago period.
Outlook
Barnes Group has provided adjusted earnings view for 2019 in the range of $3.18-$3.28, lower than $3.23-$3.35 guided earlier.
Total revenues are likely to grow in the range of 3-4%, while organic revenue growth is predicted to be flat to up 1%. This is comparable with the company’s earlier revenue growth guided range of 4-6%, and 1-3% growth band of organic revenue growth.
Zacks Rank & Key Picks
Barnes Group currently carries a Zacks Rank #4 (Sell).
DXP Enterprises delivered average earnings surprise of 48.47% in the trailing four quarters.
Dover pulled off average positive earnings surprise of 6.91% in the trailing four quarters.
Roper delivered average earnings surprise of 6.92% in the trailing four quarters.
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Barnes Group (B) Q2 Earnings & Revenues Miss, Decline Y/Y
Barnes Group, Inc. (B - Free Report) reported disappointing second-quarter 2019 results, wherein both earnings and revenues missed estimates.
Earnings/ Revenues
Quarterly adjusted earnings came in at 75 cents per share, down 17% year over year from 90 cents. Moreover, the bottom line lagged the Zacks Consensus Estimate of 78 cents.
Revenues were $372 million, down 1% year over year. Also, the figure declined 4% organically. Notably, the top line missed the consensus estimate of $387 million.
Barnes Group, Inc. Price, Consensus and EPS Surprise
Barnes Group, Inc. price-consensus-eps-surprise-chart | Barnes Group, Inc. Quote
Segmental Breakup
Revenues from the Industrial segment were $233.4 million, down 6% year over year. The decline was caused by continued softness in its automotive end markets and unfavorable impact of foreign currency translation.
The Aerospace segment generated revenues of $138.3 million, up 10% year over year. The improvement was driven by solid aerospace OEM (Original Equipment Manufacturer) sales and growth in maintenance, repair and overhaul, and spare parts sales.
Costs/Margins
Cost of sales in the second quarter was $238.3 million, up 0.3% year over year. Selling, general and administrative expenses were $76.4 million, up from $73.8 million. Adjusted operating margin was 15.7%, down 130 basis points.
Balance Sheet/Cash Flow
Exiting the second quarter, Barnes Group had cash and cash equivalents of $94.9 million, down from $100.7 million recorded as of Dec 31, 2018. At the end of the reported quarter, long-term debt was $889.1 million compared with $936.4 million as of Dec 31, 2018.
In the first six months of 2019, cash from operating activities totaled $108.2 million compared with $88.6 million generated in the comparable year-ago period.
Outlook
Barnes Group has provided adjusted earnings view for 2019 in the range of $3.18-$3.28, lower than $3.23-$3.35 guided earlier.
Total revenues are likely to grow in the range of 3-4%, while organic revenue growth is predicted to be flat to up 1%. This is comparable with the company’s earlier revenue growth guided range of 4-6%, and 1-3% growth band of organic revenue growth.
Zacks Rank & Key Picks
Barnes Group currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same space are DXP Enterprises, Inc. (DXPE - Free Report) , Dover Corporation (DOV - Free Report) and Roper Technologies, Inc. (ROP - Free Report) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DXP Enterprises delivered average earnings surprise of 48.47% in the trailing four quarters.
Dover pulled off average positive earnings surprise of 6.91% in the trailing four quarters.
Roper delivered average earnings surprise of 6.92% in the trailing four quarters.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>