Why Modine Manufacturing Shares Soared Over 48% Friday Morning
Shares of Modine Manufacturing (NYSE: MOD), a manufacturer of thermal management solutions to a number of markets and customers, traded as much as 48% higher early Friday, before settling down to a 31% gain in the afternoon, after the company posted strong second-quarter results.
Modine beat on both the top and bottom line, ending the week on a solid note for investors. Starting from the top, Modine's second-quarter revenue checked in at $461.4 million, easily topping analysts' estimates calling for just over $400.8 million. Adjusted earnings per share checked in at $0.43, also easily topping analysts estimates calling for a modest $0.04 adjusted earnings per share. Management also called out a significant year-over-year improvement in cash flow with roughly $75 million of cash flow from operating activities. The better-than-expected second-quarter results were driven by higher-than-anticipated sales in combination with stringent cost reductions that boosted margins. Management also noted a slow and steady recovery from most of its end markets and regions.
Source Fool.com
