Houston Wire & Cable falls as Q2 disappoints
Shares of Houston Wire & Cable Co. (Nasdaq: HWCC) are in the dark, down $6.71, or 26.04%, to $19.06 at 3:07 p.m. ET on news the distributor of services to the electrical distribution market reported second-quarter financials that disappointed analysts.
The net income for the three months ended June 30 was $8.4 million, or $0.40 per share, below the average analyst estimate of $0.44 a share. In the year-earlier period, net income totaled $8.3 million, or $0.48 per share, the company announced before the opening bell.
Sales came in at a record $89 million, an increase of $5 million, or 6%, from $84 million a year earlier. Still, Wall Street was expecting revenues of $91.94 million.
“We manage our business with a multiple year horizon in mind,” said CEO Charles Sorrentino. “As we look to the next 18-24 months, we currently see a robust project environment. Pre-order sales activity, orders in process and newly identified project opportunities are at encouraging levels.”
Houston Wire & Cable said that it forecasts 2007 earnings between $1.57 per share and $1.66 per share. That’s below analysts’ consensus view of a profit of $1.75 per share, but above the company’s 2006 net income of $1.63 per share.
