NEW YORK (TheStreet) -- Shares of Colfax Corp. (CFX) - Get Report were falling 6.2% to $27.69 on Wednesday after the diversified machinery company missed analysts' estimates for earnings in the third quarter.
Colfax reported earnings of 24 cents a share for the third quarter, missing analysts' estimates of 31 cents a share for the quarter. Revenue fell 16.5% year over year to $969.14 million for the quarter, below analysts' estimates of $994.3 million.
The company said gas- and fluid-handling orders fell 17.6% year over year to $444.2 million for the third quarter, compared to $539.4 million in the year-ago quarter.
"Third quarter performance fell short of expectations," President and CEO Matther Trerotola said in a statement. "Our Fabrication Technology segment continued to face weak end markets, and the declining volume and volatile market and currency movements in Latin America depressed margins."
Colfax also announced that its board of directors authorized a new $100 million buyback plan, which Trerotola said 'speaks to our confidence in the outlook for long-term profitability."
TheStreet Ratings team rates COLFAX CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate COLFAX CORP (CFX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: CFX