Xerium Technologies (XRM) Misses Q4 EPS Views

Xerium Technologies (NYSE: XRM) reported Q4 EPS of ($0.09), $0.33 worse than the analyst estimate of $0.24. Revenue for the quarter came in at $115.35 million versus the consensus estimate of $124.42 million.

2016 OUTLOOK

• Xerium enters 2016 with material completion of its repositioning investments and has already gained over 1,000 new positions through successful pre-trials. The company is underway with the same program again in 2016 and has a plan to win over 1,000 new positions in 2016 through the success of its new product designs.
• Even though Adjusted EBITDA was less than expected in 2015, we believe the business will generate EBITDA of $105 to $115 million annually, over the next 3 years, depending on the currency environment.
• Sales - For rolls sales specifically, we anticipate positive revenue growth despite the contracting segments of the market. For machine clothing sales specifically, we anticipate the strong market declines to continue to impact Xerium but become less severe as the company brings on board new wins from its new plant investments, new products and new customers.
• Free Cash Flow - We believe Xerium will generate ~$15 to $30 million annually, over the next 3 years, depending on the currency environment. Free Cash Flow will further accelerate as the company completes its repositioning projects.

For earnings history and earnings-related data on Xerium Technologies (XRM) click here.

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