Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: SXI

Standex Shares Trade Up 26% on Q4 Earnings

Share on Stocktwits

Source:

Shares of diversified manufacturer Standex International are trading 24% higher today after the company reported Q4/19 earnings.

Multi-industry manufacturer Standex International Corp. (SXI:NYSE) today announced financial results for the fourth quarter of fiscal year 2019 ending June 30, 2019.

For Q4/19 Standex reported that that overall sales increased 2.8% to $209.2 million compared to $203.5 million in Q4/18, with net income from continuing operations increasing 16.3% in Q4/19 to $13.1 million versus $11.3 million in Q4/18. The firm reported adjusted EBITDA of $28.3 million in Q4/19, a decrease of 11.7% from the $32.2 million in Q4/18, and adjusted earnings per share of $1.16 for Q4/19 compared to $1.48 in Q4/18.

The firm operates through five major business segments and provided results for each as follows:

Hydraulics segment sales (7% of sales) increased 7.5% year-over-year due to strong OEM demand, particularly in the North American refuse market, as well as new product application offerings for vacuum trucks, sweepers and hydro-excavators. Income from operations gained 38.8% year-over-year due to higher sales and cost structure efficiencies. Food service equipment sales (35% of sales) declined 4.3% reflecting lower sales in refrigeration, pumps and merchandising businesses partially offset by growth in scientific sales led by demand in clinical and drug retail markets.

David Dunbar, Standex's president and CEO, commented, "Fourth quarter results were in line with our expectations as performance in Engineering Technologies, Hydraulics and Scientific remained strong. While macro-economic headwinds continued to impact results in Engraving and Electronics, we are effectively managing costs, our restructuring efforts are on plan and we delivered solid free cash flow...Despite challenges in some of our end markets, we continued to make significant progress in the quarter and fiscal year in regard to our strategic priorities and we are well-positioned to further execute on our transformation and long-term goals for growth and profitability...From a growth perspective, our targeted investments are paying off with growth laneways increasing 61% year-over-year in fiscal 2019 to $58 million and the positive repositioning of Engineering Technologies as evidenced by its results. The recent GS Engineering acquisition and successful divestiture of the Cooking Solutions business furthered our portfolio reshaping toward building our higher margin growth businesses into significant platforms. The restructuring plan we began to implement in the third quarter is on track to achieve $3.8 million in annual savings by Q2/20. We have also identified a significant number of additional productivity projects that we plan to implement in FY/20".

In a separate release today, the company announced the departure of Thomas DeByle, COO/CFO, who will be leaving the company to pursue a new opportunity. Standex recently announced the promotion of DeByle to COO and named Ademir Sarcevic to replace him as CFO effective September 9, 2019. As previously announced, Sarcevic, who has over two decades of financial management experience in industrial businesses, will be joining Standex from Pentair plc where he has been serving as its SVP and Chief Accounting Officer.

It is now apparent that DeByle will be moving to work at diversified industrial company NN Inc. (NNBR:NASDAQ) as that firm today announced the approval of the appointment of Thomas DeByle as the company's SVP and CFO, to be effective on or before September 23, 2019. The NN Inc. statement indicated that DeByle brings over 30 years of public company finance and capital markets experience, a deep background in financial planning and operational management, and extensive knowledge of the diversified industrial manufacturing industry.

Standex International was founded in 1955 and is based in Salem, New Hampshire. The company characterizes itself as a multi-industry manufacturer in five broad business segments: Engraving, Electronics, Engineering Technologies, Hydraulics and Food Service Equipment with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Brazil, Turkey, South Africa, India and China.

SXI shares opened today at $68.18 (+$6.56, +10.66%) over the yesterday's close of $61.52. Shares have traded today between $66.07 and $78.79 and are presently trading at $77.79 (+$16.24, +26.77%).

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.





Want to read more about Technology investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe