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What: Shares of vehicle-parts manufacturer Modine Manufacturing
So what: On an absolute basis, there was good reason for Modine CEO Thomas Burke to say that the company had a "solid quarter." Sales rose just 3.7% from a year ago, but the company's bottom line zoomed ahead, with earnings per share jumping 50% YOY to $0.18.
Investors were expecting more, though. A lot more. On average, Wall Street analysts were looking for the company to earn $0.28 in per-share profit on $414 million in sales. That makes the $0.18 per-share profit and $373 million in sales a pretty big disappointment.
Now what: But it wasn't just the past quarter's result that investors were fretting about today. The company pointed both to unfavorable foreign currency movements as well as softness in some of its markets in Europe and Asia as reason for stepping back its full-year forecast. Previously, the company had been expecting 12% to 16% annual sales growth and earnings per share of $0.95 to $1.05. Modine's new forecast calls for just 8% to 10% sales growth and earnings per share of $0.70 to $0.75. Analysts had pegged full-year earnings at $0.91.
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