Milacron Holdings Corp. MCRN delivered adjusted earnings per share of 27 cents in the first quarter, surpassing the Zacks Consensus Estimate of 26 cents. On a year-over-year basis, earnings plunged 30.8%.
Including one-time items, the company reported earnings per share of 13 cents in the reported quarter, jumping 44.4% from the year-ago quarter’s reported figure of 9 cents.
Milacron’s revenues fell 13.9% year over year to $248.7 million during the first quarter. Revenues also missed the Zacks Consensus Estimate of $280 million. Excluding unfavorable impact of currency movements, organic revenues decreased 10.5% from the prior-year quarter’s reported tally. New orders in the reported quarter declined 10.8% year over year to $275.3 million.
Cost of sales during the January-March quarter went down 13.2% year over year to $164 million. Gross profit decreased 15% year over year to $84.8 million. Gross margin came in at 34.1% during the first quarter compared with the year-ago quarter’s 34.6%.
Selling, general and administrative expenses slipped 13% year over year to $54 million. Adjusted EBITDA went down 23.5% to $41.0 million in the first quarter from $53.6 million in the prior-year quarter. Adjusted EBITDA margin shrunk 210 bps to 16.5% in the quarter.
Milacron Holdings Corp. Price, Consensus and EPS Surprise
Milacron Holdings Corp. Price, Consensus and EPS Surprise | Milacron Holdings Corp. Quote
Advanced Plastic Processing Technologies: Net sales declined 15% year over year to $119.4 million. Excluding $3.8 million of unfavorable impact of currency movements, sales dropped 12.2% from the prior-year quarter. Adjusted EBITDA was down 9.3% year over year to $14.7 million.
Melt Delivery and Control Systems: Net sales dipped 14% year over year to $100 million. Excluding unfavorable impact of currency movements of $4.6 million, sales decreased 10.2% from the prior-year period. Adjusted EBITDA plummeted 32.5% year over year to $25.8 million.
Fluid Technologies: Sales for the reported quarter slipped 8.4% year over year to $29.3 million. Sales dipped 3.8% from the year-ago period, excluding $1.5 million of unfavorable currency-movement impact. Adjusted EBITDA was $6.4 million, down from the prior year’s $7.1 million.
Milacron reported cash and cash equivalents of $150 million at the end of the first quarter, down from $184 million witnessed at the end of 2018. Net cash used in operating activities were $4.6 million during the three-month period ended Mar 31, 2019, compared with cash inflow of $11.7 million reported in the comparable period last year. Long-term debt was $824 million as of Mar 31, 2019, compared with $829 million as of Dec 31, 2018.
Shares of Milacron have dipped around 21.3% in the past year compared with the industry’s decline of 4.9%.
Zacks Rank and Key Picks
Milacron currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. BOOM, Lawson Products, Inc. LAWS and DXP Enterprises, Inc. DXPE, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 80.3%, in the past year.
Lawson Products has an impressive expected earnings growth rate of 102.5% for the current year. The stock has appreciated 44.4% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 15.7%, over the past year.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DXP Enterprises, Inc. (DXPE) : Free Stock Analysis Report
Milacron Holdings Corp. (MCRN) : Free Stock Analysis Report
DMC Global Inc. (BOOM) : Free Stock Analysis Report
Lawson Products, Inc. (LAWS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research