Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of data-collection specialist Intermec (NYSE: IN) were looking brighter today, gaining as much as 13% after the company posted a strong earnings report.
So what: Revenue in the quarter actually declined 9% to $192.8 million, but adjusted EPS shot up to $0.17 from just $0.01 a year ago. Revenue was also partly affected by negative currency translation rates. Commenting on the quarter, CEO Allen Lauer said, "Improved bookings in North America and Latin America contributed to a relatively significant increase in backlog." Intermec also launched or announced a number of products during the quarter, including a new wireless handset for distribution centers, and an HTML 5 browser, which will "enhance workflow efficiency."
Now what: Considering analysts had expected a $0.03 EPS loss from Intermec, investors should be pleased with the results, but there are at least a few concerns here. Declining revenue is never a good sign, especially for a small company that's had a number of losing quarters recently, and management is actively searching for another CEO to replace the 74-year-old Lauer. The company's also said it's evaluating strategic alternatives, which could mean a buyout. Prospective investors may want to wait for more information on these fronts before getting on board.
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