Essendant (ESND) Tops Q3 EPS by 2c

Essendant (NASDAQ: ESND) reported Q3 EPS of $1.00, $0.02 better than the analyst estimate of $0.98. Revenue for the quarter came in at $1.39 billion versus the consensus estimate of $1.45 billion.

Fourth Quarter Cost Initiative

The company remains committed to its strategy and has executed well on its priorities. However, additional steps must be taken to reduce cost through management de-layering in order to achieve broader functional alignment of the organization, and to counteract headwinds in the industrial and energy markets. In the fourth quarter the company plans to:

• Implement new workforce reductions as it transitions to a channel-based organization more closely aligned with its customers. As the company finalizes its plan, additional information will be provided in the fourth quarter regarding the cost and expected benefit of this action;
• Re-invest a portion of the expected savings to fund bringing additional businesses onto the common operating and IT platform.

The company views these actions to be critical to driving its goal of achieving high-single digit EPS growth beginning in 2016.

For earnings history and earnings-related data on Essendant (ESND) click here.

You May Also Be Interested In

• Jefferies upgrades Shopify to Buy on AI commerce tailwinds, sees 30% upside
• DHT Holdings Q2 TCE earnings estimated at $126,700 per day
• Gold Royalty acquires two Nevada royalties for $0.8 million