On Sept. 16, 1975, Rennie Stennett of the Pittsburgh Pirates became only the second player in Major League Baseball history, and the only player in the 20th Century, to go seven-for-seven in a nine-inning game.
It was an amazing feat -- one that I had in the back of my mind as seven members of my JIMS CRAB FEST portfolio for cheapskates report earnings this week. I started to wonder whether all seven companies could conceivably beat consensus estimates.
While I don't focus too much on a single quarter's numbers, it's still nice when companies, especially the type that comprise this value index, show progress. We were three-for-three earlier this week when Callaway Golf (ELY), Electro Scientific Industries (ESIO) and Imation (IMN) all posted better-than-expected numbers.
How did the remaining four names fare?
Arctic Cat (ACAT) reported that first-quarter revenue rose 18% to $74.9 million, better than the $66.8 million consensus estimate. The company lost $0.13 per share for the quarter, but this was half Wall Street's expected loss of $0.26. Revenue for snowmobiles and ATCs rose a solid 23%. The balance sheet remains strong and the company ended the quarter with $99.3 million in cash and short-term investments. The earnings news sent shares up more than 8%. Arctic Cat's ability to move snowmobiles and ATVs in this economy is an encouraging sign. Four-for-four, so far.
Skechers (SKX) reported a $0.31-per-share second-quarter loss that was three cents better than consensus. But revenue fell 14% to $434.4 million, slightly below the $438.5 consensus estimate. Everyone knew this would be an ugly quarter as the company dumped inventory of its Shape-Ups line. Still, the market was extremely positive; the shares were upgraded and they jumped about 18% yesterday. Regardless, Skechers broke the streak of positive surprises and the quest to go seven-for-seven ends here.
Ingram Micro (IM) reported second-quarter revenue up 7% to $8.75 billion, better than the $8.52 billion consensus. Earnings per share came in at $0.37, which was in line with estimates. Still, the revenue jump was enough to carry shares nearly 13% higher in after-hours trading Thursday, and that's carried over into today's session. The company ended the quarter with $1.37 billion in cash and $643 million in debt.
Benchmark Electronics (BHE) reported flat second-quarter revenue of $585.5 million, slightly better than the $579 million consensus; however, the company missed on earnings, reporting EPS of $0.25, well below the $0.31 estimate. Like others in this group with solid, cash-rich balance sheets, Benchmark ended the quarter with $306.5 million in cash and just $11 million in debt.
So much for going seven-for-seven.
Overall, there were some decent numbers. Four of the companies beat on both revenue and earnings (ELY, ESIO, IMN, ACAT), one missed on revenue and beat on earnings (SKX), one beat on revenue and hit the earnings number (IM), and one narrowly beat on revenue and missed badly on earnings (BHE).
In baseball terms, I'd equate that to going four-for-five with a walk and a sacrifice fly (with generous scoring).