Charlotte-based SPX Flow Falls 5 Percent After Missing Wall Street Projections

8/2/17

By Chris Roush, NC BIZ News

Charlotte-based manufacturer SPX Flow Inc. saw its stock fall by more than 5 percent on Wednesday after the company reported second-quarter earnings and revenue that were below Wall Street expectations.

The maker of engineering components reported net income of $10.3 million, or 24 cents per share. Adjusted for non-recurring items, the company earned 33 cents per share, shy of analyst expectations of earnings of 34 cents per share. In the year-ago quarter, SPX Flow reported a loss of $352.8 million.

Revenue declined 5.8 percent to $498 million from $528.8 million in the second quarter of 2016. Analysts were expecting revenue of $498.2 million.

“In the second half of this year, we are targeting mid-single digit organic revenue growth with approximately 100 points of segment income margin expansion versus the prior year,” said Chief Executive Officer Marc Michael in a statement.

SPX Flow’s shares fell $1.89, or 5.3 percent, to $33.71 in Wednesday afternoon trading.

The company, which has operations in 30 countries and sales in more than 150 countries, is completing a reorganization that is expected to be completed by the end of 2017 and cost approximately $160 million with annualized savings of approximately $140 million fully realized by the end of 2018.

Orders for the quarter increased 3.8 percent to $503.6 million, as compared to $485.1 million in the year-ago quarter.

Its earnings release can be found here.

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