Shares of Systemax (NYSE:SYX) have surged today, up by 21.5% as of 1:13 p.m. EDT, after the company reported first-quarter earnings.
Revenue in the first quarter jumped to $302.5 million, which translated into adjusted earnings per share of $0.24. Gross margin expanded modestly to 23.4%, while cost-cutting helped boost operating margin more meaningfully, to 4.1%.
Operating income quadrupled to $12.4 million on a GAAP basis. The core industrial products segment saw sales increase 11.5% to $190.2 million.
In a statement, CEO Larry Reinhold said the company has "substantially completed" its previously announced restructuring strategy of selling off underperforming businesses. The last of these sales was completed in March 2017. Systemax is still winding down certain operations, but is "essentially a new company," according to Reinhold. Operations in France continue to be strong, generating double-digit organic growth for 13 consecutive quarters.
Systemax has declared an increased cash dividend of $0.10 per share, and expects to issue regular quarterly dividends going forward.