Earnings

Stock News Buzz: Modine Manufacturing Company (NYSE: MOD)

February 1, 2019

Modine Manufacturing Company (NYSE: MOD) holds 49.54 million shares outstanding and 48.9 million shares are floated in market. The company revealed recent move of 6.43% to $15.57.  Around 709369 shares traded in most recent trading session compared to an average volume of 241.13K. The stock changed with return 18.13% over last weekly period.

 The monthly performance of stock was observed at 43.90%. MOD’s shares are moving at 32.85% for the quarter and managed a -33.32% return over the course of the past year and is now at 44.03% since this point in 2018. 

Modine Manufacturing Company (NYSE: MOD) declared financial results for the quarter ended December 31, 2018.

Third Quarter Highlights:

  • Net sales of $541.0 million increased 6 percent from the prior year, 8 percent on a constant-currency basis
  • Operating income of $33.6 million was more than double the prior year and adjusted operating income of $34.8 million was up 29 percent from the prior year
  • Earnings per share of $0.35 increased $0.92 from the prior year primarily due to improved operating earnings and lower income tax expense, and adjusted earnings per share of $0.42 increased $0.07 from the prior year
  • Adjusted guidance ranges for revenue and earnings

Net sales increased 6 percent in the third quarter to $541.0 million, compared with $512.7 million in the prior year.  On a constant-currency basis, net sales increased 8 percent from the prior year.  This increase was a result of sales growth across all business segments, with the Building HVAC segment showing the greatest percentage increase.

Gross profit increased 7 percent in the third quarter to $91.7 million, compared with $85.4 million in the prior year. Gross margin increased 20 basis points to 16.9 percent, primarily due to conversion on higher sales in the CIS and Building HVAC segments.  This was partially offset by the direct and indirect impact of tariffs on raw material costs and operating inefficiencies in the VTS segment.      

Selling, general and administrative (“SG&A”) expenses were $57.2 million in the third quarter, $3.6 million lower than the prior year.  This decrease was largely due to a $1.1 million environmental recovery in the VTS segment and lower compensation-related expenses as compared to the prior year, along with lower integration costs associated with our November 2016 acquisition of Luvata HTS.

Operating income increased 142 percent in the third quarter to $33.6 million, compared with $13.9 million in the prior year, driven primarily by higher gross profit and lower restructuring expenses as compared to the prior year. During the third quarter of fiscal 2019 and 2018, restructuring expenses, impairment charges, and certain other items totaled $1.2 million and $13.1 million, respectively.  Excluding these items, adjusted operating income increased 29 percent to $34.8 million, compared with $27.0 million in the prior year. 

Earnings per share improved $0.92 in the third quarter to $0.35, compared with a $0.57 loss per share in the prior year.  This increase was primarily due to higher operating income in the current year and significant income tax charges recorded in the prior year related to U.S. tax reform legislation.  Adjusted earnings per share increased 20 percent in the third quarter to $0.42, compared with $0.35 in the prior year.  This increase was primarily due to higher operating income as compared to the prior year.

 Its quarter to quarter sales remained 8.00% and sales observed at 8.90% over past 5 years. The stock beta value is 1.85. MOD stock changed at 0.02% distance from its 200-day moving average. On a similar note, the stock marked distance of 27.51% from its 50-day moving average and moved 23.16% away from its 20-day moving average. The average volatility for the week and month was at 6.59% and 4.51% respectively. 

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