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Cubic shares tumble on weak fiscal 1Q results

Shares of San Diego-based Cubic Corp. tumbled Tuesday after the electronics company announced a fiscal first-quarter profit well below Wall Street expectations.

On Monday Cubic (NYSE: CUB) posted a profit of $12.4 million, or 47 cents per share, down from $20.7 million, or 77 cents per share, in the same quarter a year ago. Analysts polled by FactSet expected 70 cents per share in the recent quarter.

Revenue fell about 1 percent to $313.4 million, short of analysts' estimates of $315.8 million.

The lower-than-expected quarterly results mainly stemmed from drops in profitability at Cubic's transportation and defense businesses.

Transportation-related operating income tumbled 26 percent to $13.2 million on high costs related to an Australian contract, while defense profits plunged 80 percent to $1.2 million, hurt by lower sales of profitable small arms training systems and air combat training systems to a customer in Asia.

The weak quarterly results prompted Benchmark analyst Josephine Millward to cut her rating on Cubic to "hold" from "buy."

"Although we believe Cubic remains well-positioned to grow over the long-term, we view fiscal 2013 as a transitional year with lower growth in transportation and deceleration in defense," Millward wrote in a note to investors.

Shares are down $3.45, or 7.1 percent, to $44.95 in heavy afternoon trading, after falling as low as $44.27 earlier in the session. Over the past 52 weeks, the stock has traded between $41.92 and $52.53.

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Cubic Corp.

Company Website

9333 Balboa Ave.
San Diego, CA 92123

Company Trade Data

Stock Symbol Close
Change
Chg %Chg
Volume
52-Week
High Low
CUB
43.25
  0.24  
+ 0.56%
96,581,000
55.73
39.83

Insider Trade Data

Date Insider Shares Type Value
08/07/2015 Zable, Walter C Jr 66,974 Sell $3,100,242
08/07/2015 Zable, Walter C Jr 66,974 Sell $3,100,242
06/24/2015 Zable, Walter C Jr 134,453 Sell $6,658,951
06/24/2015 Zable, Walter C Jr 134,453 Sell $6,658,951
06/24/2015 Zable, Walter C Jr 134,453 Sell $6,658,951

Cubic Corp. Executive(s):

Bradley Feldmann

  • Chief Operating Officer, President

John Thomas

  • Chief Financial Officer, Executive Vice President

James Edwards

  • Senior Vice President, General Counsel

Mark Harrison

  • Senior Vice President, Corporate Controller

Related Videos

Interview with Bradley Feldmann

July 29, 2015 -- George Chamberlin and Bradley Feldmann, president and CEO of Cubic Corp., talk about the many businesses Cubic is involved in, including defense and transportation.

Similar Companies

NAICS - 334511 - Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Other Lists

2014