Milacron (MCRN) Q3 Earnings Top On Strong Orders, Markets

Milacron Holdings Corp. Price, Consensus and EPS Surprise | Milacron Holdings Corp. Quote

Selling, general and administrative expenses increased 2% year over year to $61.5 million. Milacron reported adjusted operating profit of $29.9 million, decreasing 5% from $31.6 million in the year-ago quarter. Adjusted EBITDA went up 6% to $57.3 million for the quarter from $54.3 million in the prior-year quarter. Adjusted EBITDA margin however contracted 40 bps to 18.2% in the quarter.

Segment Results

Advanced Plastic Processing Technologies: Net sales went up 4.3% year over year to $176 million. Excluding $2.6 million of unfavorable effects of currency movements, sales increased 2.7% in the prior-year quarter. Adjusted EBITDA increased 7% year over year to $23.1 million.

Melt Delivery and Control Systems: Net sales surged 13% year over year to $108 million. Excluding unfavorable influence of currency movements of $1.4 million, sales advanced 11.8% in the prior-year period. Adjusted EBITDA improved 8% to $33.1 million.

Fluid Technologies: Net sales rose 9% year over year to $30.7 million. Sales improved 6.4% in the prior-year period, excluding $0.8 million of unfavorable effects of currency movements. Adjusted EBITDA increased 14% to $6.7 million.

Financial Update

As of Sep 30, 2017, Milacron had cash and cash equivalents of $93.4 million compared with $130.2 million as of Dec 31, 2016. The company used $7.4 million of cash in operating activities in the first nine-month period of 2017 compared with $60.8 million in the prior-year comparable period. Long-term debt was $919.1 million as of Sep 30, 2017, compared with $934 million as of Dec 31, 2016.

Outlook

Given its performance in the third quarter, Milacron raised organic sales growth guidance to 3.0-3.5% from the previous range of 0-2%. Adjusted EBITDA is forecasted to be between $222 million and $224 million compared with the prior range of $219 million to $225 million. Free cash flow (before restructuring) is expected to lie between $80 million and $90 million.



In the past year, the company has underperformed the industry it belongs to. Its shares rose 20.0%, falling behind the industry’s rise of 49.6%.

Milacron currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the sector include Briggs & Stratton Corporation (NYSE:BGG) , Sun Hydraulics Corporation (NASDAQ:SNHY) and Lakeland Industries, Inc. (NASDAQ:LAKE) . All three stocks boast a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Briggs & Stratton Corporation has an earnings ESP of 8.62% in the trailing four quarters. Sun Hydraulics has an average earnings surprise of 3.47% in the last four quarters, while Lakeland Industries has an average earnings surprise of 18.01%.

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