Douglas Dynamics Earnings: Here’s Why Investors are Not Happy Now
Douglas Dynamics, Inc. Common S (NYSE:PLOW) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.08%.
Douglas Dynamics, Inc. Common S Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 35% to $0.26 in the quarter versus EPS of $0.40 in the year-earlier quarter.
Revenue: Decreased 15.79% to $55.16 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Douglas Dynamics, Inc. Common S reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0.24. It missed the average revenue estimate of $58.78 million.
Quoting Management: James L. Janik, President and Chief Executive Officer of the Company, commented, “Our results for the second quarter were in line with our expectations given the timing of new product launches and our expectations regarding the related shipment mix trends for the 2013 pre-season order period. Longer-term, we are excited about this new product line-up and our belief that it will enhance our market leading position and further cement our reputation of constantly delivering best-in-class products and services to our customers. Our results also reflect an increase in parts and accessories sales of approximately 17% in the second quarter of 2013 as compared to the second quarter of 2012, as stronger and sustained late season snowfall levels across core markets reduced dealer inventory levels. We expect to continue to generate significant cash flows and look for ways to optimize shareholder value, which includes our robust dividend.”
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