Graham (NYSE: GHM) reported Q3 EPS of $0.01, $0.01 better than the analyst estimate of $0.00. Revenue for the quarter came in at $17.2 million versus the consensus estimate of $21.44 million.

James R. Lines, Graham’s President and Chief Executive Officer, commented, “Results for the quarter were in line with our expectations announced earlier this month. Third quarter revenue and profitability were impacted by delays in converting backlog. Historically, this is not unusual for our large projects where revenue is pushed into subsequent quarters due to various causes including engineering change orders, delayed customer releases, and customer holds. We continue to execute and serve customers well, and we intend to continue to invest in process improvement, workforce training, safety and capital expenditures to create capacity and increase productivity.”

He added, “Our year-to-date operating cash flow was strong at $8.5 million. Further, we believe that order levels have remained reasonable, given the overall uncertainty in our markets. This has led to a year-to-date book-to-bill ratio of 1.2x.”

Mr. Lines concluded, “We continue to believe that we are in the early stage of the energy cycle recovery. We look forward to this fiscal year as the first of several years of anticipated growth, which we expect will be complemented by our execution of Navy orders from our backlog. Additionally, we continue to evaluate opportunities to prudently put our capital to work, in support of our profitable growth initiatives.”

GUIDANCE:

Graham sees FY2019 revenue of $90-95 million, versus the consensus of $99.23 million.

For earnings history and earnings-related data on Graham (GHM) click here.