CHARLOTTE, N.C. - SPX Technologies, Inc. (NYSE:SPXC), a diversified global supplier of highly engineered products, reported a slight miss in its fourth-quarter earnings and revenue, falling short of Wall Street expectations.
The company posted adjusted earnings per share (EPS) of $1.25, which was $0.01 below the analyst estimate of $1.26. Revenue for the quarter was reported at $469.4 million, missing the consensus estimate of $482.01 million.
Despite the earnings and revenue miss, SPX Corp (NYSE:SPXC). provided optimistic guidance for the fiscal year 2024, projecting an adjusted EPS range of $4.85 to $5.15, which is above the consensus estimate of $4.69. The company also expects revenue to reach between $1.93 billion and $2 billion, surpassing the consensus forecast of $1.889 billion.
The stock experienced a modest decline of 1.24% following the earnings release, indicating a somewhat negative investor reaction to the quarterly performance. The earnings miss and revenue shortfall drove the stock movement, reflecting concerns over the company's ability to meet market expectations.
President and CEO Gene Lowe commented on the results, expressing satisfaction with the company's full-year performance, including significant growth in adjusted EBITDA and adjusted EPS. Lowe highlighted the strong fourth-quarter performance of the HVAC segment, attributing it to record margin and profitability driven by robust customer demand and solid operational execution.
SPX Corp.'s fourth-quarter revenue marked a 9.3% increase from the same period last year, while full-year revenue saw a 19.2% rise from the previous year. The company also noted several strategic acquisitions in the HVAC segment, which have strengthened its market position.
Looking ahead, SPX Corp. anticipates continued demand strength in key markets and solid execution trends, positioning the company for another year of strong revenue and earnings growth. The midpoint of the company's 2024 adjusted EPS guidance reflects approximately 16% growth, while the adjusted EBITDA guidance midpoint indicates around 25% growth.
Investors will be closely monitoring SPX Corp.'s performance as it navigates the upcoming fiscal year, with the company's optimistic guidance setting expectations for continued growth and profitability.
InvestingPro Insights
As SPX Technologies, Inc. (NYSE:SPXC) navigates the aftermath of its fourth-quarter earnings report, investors are weighing the company's performance against its market valuation and financial health. With a keen eye on the future, SPX has demonstrated a track record of consistent dividend payments, having maintained them for 32 consecutive years—an indicator of stability and shareholder commitment. Moreover, the company has raised its dividend for 7 consecutive years, underscoring its confidence in sustained profitability and cash flow generation. These InvestingPro Tips highlight SPX's solid financial practices and could be a beacon for investors seeking reliable income streams.
Looking at the company's stock performance, recent data shows that SPX Corp. has delivered a 1-year price total return of 27.46%, reflecting a strong market confidence over the past year. The price on the previous close stood at 4981.8 USD, which may be of interest to investors considering entry points or assessing market trends. Additionally, the company has seen a 6-month price total return of 15.94%, indicating robust mid-term performance.
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