Shares of Standex International Corp. (SXI, Financial) gained 3.2% in Monday trading after the company reported second-quarter EPS of $1.4 on revenue of $217.09 million, beating profit estimates by 4 cents per share and revenue expectations by $7.04 million. Revenue was up 12% year over year. By segments, Food Service Equipment sales increased 7.9% year over year. Refrigeration revenue increased 5.3%. On the other hand, in Cooking Solutions, sales decreased 10.3%, and Engraving sales decreased 7.5% year over year.
Income from operations reached $20.6 million, higher than the $14.0 million in the fourth quarter of fiscal 2016. Net income from continuing operations was $14.1 million, or $1.11 per diluted share. Balance sheet shows strength via an increase in net working capital to $150.0 million from $132.3 million a year earlier.
President and CEO David Dunbar emphasis on the “organic growth from the Electronics, Engraving and Engineering Technologies segments.” He highlighted the food service growth as a result of the acquisition of Horizon Scientific. Further, he feels positive about the integration and performance of the Japanese electronics business.
The company expects to continue with the strong momentum in Engraving, Engineering Technologies and Electronics. Moreover, Standex International plans to invest on growth opportunities in the Hydraulics segment while in Food Service the focus is on organizational structure and plant optimization actions to grow margins. Finally, it plans to continue with the Standex Value Creation System to enhance shareholder value.
On a year-to-date basis, shares have surged to $94.80 from $88.10, a 7.6% increase since the beginning of the year.
Disclosure: The author holds no position in the stock mentioned
