The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Colfax missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Colfax booked revenue of $177.8 million. The nine analysts polled by S&P Capital IQ expected revenue of $189.5 million. Sales were 6.7% higher than the prior-year quarter's $166.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.40. The nine earnings estimates compiled by S&P Capital IQ predicted $0.45 per share on the same basis. GAAP EPS were -$0.37 for Q4 against $0.20 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 34.6%, 110 basis points worse than the prior-year quarter. Operating margin was 15.0%, 90 basis points worse than the prior-year quarter. Net margin was -9%, 1,420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $171.4 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $759.4 million. The average EPS estimate is $1.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 264 members rating the stock outperform and 13 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give Colfax a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Colfax is outperform, with an average price target of $33.38.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.