Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Drew Industries Earnings Soar; Stock Sinks

Elkhart, Ind.-based Drew Industries (NYSE: DW  ) shares were tumbling in early Friday trading, down more than 6% despite a Q3 2013 earnings report that showed the company missing analyst revenue estimates by a whisker -- but blowing right past earnings expectations.

Q3 2013 revenues of $251 million were 11% higher than what Drew reported in the year-ago quarter, yet still fell more than a million dollars short of analysts' expected $252 million. On the plus side, Drew's earnings number was simply superb: $0.62 per share in profit, where only $0.55 per share had been expected. Free cash flow at the firm performed similarly well, with the year-to-date take rising to $35.6 million, a 57% increase over Drew's FCF number for the first nine months of 2012.

Drew attributed its success largely to the 12% improvement in sales through its RV segment, which makes up the bulk of Drew's business. Nationwide, RV sales were up 8% in Q3, suggesting that Drew gained significant market share in growing faster than the rest of the industry -- just not as fast as analysts had hoped it would.

Despite the good earnings news, Drew shares are down significantly today as the maker of components for manufactured homes and RVs warned that it will need to make investments soon to "improve production capacity, investing in personnel and facilities in excess of current needs" -- money spent that will likely "have a short-term negative impact on margins."


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2709495, ~/Articles/ArticleHandler.aspx, 9/25/2016 8:33:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:02 PM
DW $97.34 Down -0.88 -0.90%
Drew Industries CAPS Rating: *****