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Colfax Corp. (CFX) Tops Q1 EPS by 6c, Beats on Revenues; Boosts FY18 EPS Outlook

May 3, 2018 6:28 AM EDT

Colfax Corp. (NYSE: CFX) reported Q1 EPS of $0.48, $0.06 better than the analyst estimate of $0.42. Revenue for the quarter came in at $880.93 million versus the consensus estimate of $822.72 million.

  • Achieved net income per diluted share of $0.22 from continuing operations, and adjusted net income per share of $0.48 versus $0.39 in the prior year
  • Grew sales 20% or 5% excluding acquisitions and FX
  • Completed the acquisition of the Sandvik welding wire business
  • Improved full year adjusted net income per share outlook

“We delivered another quarter of organic sales growth this quarter, led by solid performance in our Fabrication Technology business,” said Matthew Trerotola, President and Chief Executive Officer. “Market demand continues to strengthen in most of this segment’s global markets, and we are using CBS to drive further productivity improvements and advance a range of growth initiatives. This segment’s margins sequentially improved and were in-line with our expectations for full-year improvement. Our Air & Gas Handling business achieved another quarter of general industrial order growth while continuing to execute restructuring projects to address lower demand for power market applications.”

During the first quarter, the Company completed its acquisition of the welding wire operations of Sandvik Materials Technology into its Fabrication Technology segment. Sandvik is a leading provider of stainless steel and nickel alloy filler metal and extends Colfax’s portfolio in the faster-growing specialty filler metal segment.

“Colfax is well-positioned to achieve expectations for earnings growth of at least 18% in 2018,” said Mr. Trerotola. “We continue to expect overall organic sales growth supported by our faster-growing Fabrication Technology business and improving Air & Gas Handling market conditions later in the year. Restructuring actions are on target to deliver at least $25 million of savings in 2018, and we have a clear path to margin improvement. Recently-completed acquisitions are performing well and building momentum, and our pipeline of opportunities remains full.”

Reflecting first quarter performance, Colfax increased its adjusted earnings per share outlook for the year from $2.00-$2.15 to $2.05-$2.20.

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GUIDANCE:

Colfax Corp. sees FY2018 EPS of $2.05-$2.20, versus the consensus of $2.10.

For earnings history and earnings-related data on Colfax Corp. (CFX) click here.



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