Milacron Holdings Corp. MCRN manufactures, distributes, and services engineered and customized systems within the plastic technology and processing industry in North America, Europe, Asia, and internationally. Milacron Holdings has 4% share in the $27 billion global plastics technology and processing industry.
The company’s superior organic sales growth profile, cost cutting efforts and balance sheet deleveraging will ensure sustained earnings growth. Moreover, the company continues to grow though acquisitions. However, risks remain regarding operational execution as a public company, and the current challenging demand environment.
Although Milacron Holdings caters to diverse end-markets, demand will continue to be affected by cyclical trends in client capital expenditures, industrial production and construction activity. Free cash flow will be constrained by higher working capital needs and the capital investment required for restructuring its European manufacturing footprint.
We have highlighted some of the key stats from this just revealed announcement below:
Estimate Trend & Surprise History: You should note that the earnings estimate revisions for Milacron Holdings depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days and currently stands at 40 cents for the fourth quarter.
In the last two quarters, the company delivered a positive earnings surprise of 20.54%.
Earnings: Milacron Holdings beat on fourth quarter earnings. Our consensus called for EPS of 40 cents, and the company reported adjusted EPS of 48 cents.
Revenue: Milacron Holdings posted revenues of $306 million which surpassed the Zacks Consensus Estimate for revenues of $304 million.
Key Developments to Note: Milacron Holdings expects to deliver organic revenue growth in the range of 0% to 2% for the full year 2016. Adjusted EBITDA margins are projected in the range of 18.5% to 19.0%.
Zacks Rank: Currently, Milacron Holdings has a Zacks Rank #4 (Sell). But that could change following Milacron Holdings’ earnings report which was just released.
Market Reaction: Milacron Holdings’ shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Milacron Holdings earnings report later!
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