Luxfer Holdings' (LXFR) Q1 Earnings And Revenues Up Y/Y

Luxfer Holdings PLC’s (NYSE:LXFR) revenues and profitability improved on a year-over-year basis in first-quarter 2018.

Earnings/Revenues

Quarterly adjusted earnings came in at 38 cents per share, higher than the year-ago tally of 27 cents.

Net sales in the reported quarter came in at $119.7 million, higher than the year-ago tally of $103.4 million.

Revenues of Gas Cylinders segment were $59.3 million, up 9% year over year. The upside came on the back of increased shipments of industrial aluminum cylinders and SCBA composite. Elektron segment’s sales in the quarter were $60.6 million, up 23.4% year over year. The upswing was driven by robust sales of disaster relief and magnesium-based products as well as higher demand for the company’s SoluMag alloy.

Costs/Margins

Cost of goods sold in the reported quarter was $89 million, compared to $77.7 million recorded in the year-ago quarter. Gross profit margin was 25.6%, up 70 basis points year over year. The upside was driven by solid sales and ongoing cost-reduction moves.

Distribution, General and administrative costs totaled $17.1 million in the first quarter, up from $15.3 million recorded in the prior-year quarter. Operating margin stood at 10.9% in the quarter, up 60 bps year over year, on the back of greater operational efficacy.

Balance Sheet/Cash Flow

Exiting the first quarter, the company had cash and cash equivalents of $8.1 million, lower than $13.3 million recorded as of Dec 31, 2017. Bank and other loans in the quarter was $90.1 million, lower than $93.8 million recorded in 2017-end.

In the first three months of 2018, Luxfer Holdings generated $9 million cash from operating activities, as against $9.6 million recorded in the year-ago quarter. Capital expenditure during the quarter came in at $1.3 million, lower than $2.3 million incurred in the year-ago tally.

Outlook

Luxfer anticipates that growth in sales of aluminum and SCBA cylinders will boost its Gas Cylinders segment’s results going forward. Elektron segment will likely gain from higher sales of magnesium-based products. In addition, the company’s transformation plan and lower tax rates will likely yield benefits this year.

Zacks Rank and Stocks to Consider

Luxfer Holdings currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks within the same space are listed below:

Applied Industrial Technologies, Inc. (NYSE:AIT) sports a Zacks Rank #1 (Strong Buy). The company’s earnings per share (EPS) are expected to grow by 12% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.

Graco Inc. (NYSE:GGG) flaunts a Zacks Rank #1. The company’s EPS is predicted to grow by 10.33% in the next three to five years.

IDEX Corporation (NYSE:IEX) carries a Zacks Rank #2 (Buy). The company’s EPS is anticipated to grow by 11% in the next three to five years.

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