Earnings Wrap: Mellanox, Valmont Among 5 Companies Reporting Quarterly Results

It’s the middle of earnings season, and not surprisingly, traders are buzzing about many of the companies that just reported earnings. In this article we’ll take a look at some of those companies that recently released their latest quarterly results, which are FNF Group of Fidelity National Financial, Inc. (NYSE:FNF), Valmont Industries, Inc. (NYSE:VMI), Mellanox Technologies, Ltd. (NASDAQ:MLNX), FMC Technologies, Inc. (NYSE:FTI), and Hexcel Corporation (NYSE:HXL). We’ll also see what elite funds think of each company.

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Fidelity National Financial Beats Expectations

FNF Group of Fidelity National Financial, Inc. (NYSE:FNF) earned $0.74 per share on revenue of $2.1 billion for the second quarter, beating the consensus estimates by $0.08 per share and $20 million, respectively. Open orders per day rose to 9,016 from 8,750 in the year-ago comparable period, while the average fee per file inched up by 4% year-over-year to $2,116. Second quarter net cash flow from operations was $277 million and free cash flow was $165 million. The company also bought back 2.5 million shares for more than $84 million during the quarter. Of the 766 active funds that we track, 44 owned $1.6 billion in shares of FNF Group of Fidelity National Financial, Inc. (NYSE:FNF) at the end of March, which accounted for 13.60% of the float.

Valmont Reports Mixed Results

Valmont Industries, Inc. (NYSE:VMI) turned in mixed second quarter results of $1.85 in EPS on sales of $640.25 million. While earnings were ahead of expectations by $0.12 per share, sales missed by $8.29 million. Revenue fell by 6% year-over-year, largely due to lower irrigation and international utility demand and the strong dollar. In terms of guidance, the company reaffirmed its 2016 forecast of diluted EPS of between $6.31 and $6.49. Management is committed to cutting costs and improving efficiency. Cliff Asness‘ AQR Capital Management raised its stake by 11% to 158,297 shares of Valmont Industries, Inc. (NYSE:VMI) as of the end of March.

On the next page we’ll see how Mellanox Technologies, FMC Technologies, and Hexcel Corporation performed in their latest quarters.

Mellanox Revenue Jumps

Mellanox Technologies, Ltd. (NASDAQ:MLNX) reported net income of $0.87 per share on revenue of $214.8 million for the second quarter, beating the consensus analyst estimates by $0.04 per share and $1.9 million. Revenue rose by 31.7% year-over-year, as demand increased for the company’s 25, 50, and 100 Gigabit Ethernet products. For the third quarter, management anticipates non-GAAP gross margins of 71%-to-72% and quarterly revenue of $221 million-to-$227 million. 28 funds in our database had a long position in Mellanox Technologies, Ltd. (NASDAQ:MLNX) at the end of March, down by two quarter-over-quarter.

FMC Misses the Mark

Traders are watching FMC Technologies, Inc. (NYSE:FTI) today after the company missed both the top and bottom-line estimates of analysts with its second quarter results. EPS came in at $0.22 on revenue of $1.15 billion, while analysts were expecting EPS of $0.30 and $1.26 billion in revenue. Sales fell by 32% year-over-year due to lower activity caused by lower crude prices as demand for deepwater and other services remains tepid. The company’s backlog came in at $3.4 billion and adjusted operating margin was 14.1%. Total inbound orders for the time period amounted to $537.9 million. Ownership of FMC Technologies, Inc. (NYSE:FTI) among the funds in our system rose by five quarter-over-quarter to 35 as of the end of March.

Hexcel Delivers Solid Quarter

Hexcel Corporation (NYSE:HXL) beat both top and bottom-line estimates with its latest quarterly results, pulling in EPS of $0.70 on revenue of $522.6 million for the second quarter, exceeding estimates by $0.05 per share and $18.29 million, respectively. Sales rose by 9.9% year-over-year, driven by demand in the company’s commercial aerospace segment. Guidance was also strong, as management raised the mid-point of its 2016 earnings guidance to $2.48-to-$2.56 per share from the previous guidance of $2.44-to-$2.56 per share. The number of smart money institutions in our system with holdings in Hexcel Corporation (NYSE:HXL) fell by two quarter-over-quarter to 11 as of the end of the first quarter.

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