Columbus McKinnon Corporation (NASDAQ: CMCO), a leading designer and manufacturer of material handling products and systems, saw its stock price decline by 7.62% on Monday, despite reporting fiscal Q1 2025 earnings that met analyst expectations.
The company reported revenue of $239.7 million for the quarter, up 1.8% year-over-year but slightly missing analyst estimates of $241.3 million. Adjusted earnings per share (EPS) came in at $0.62, meeting consensus estimates and remaining flat compared to the same period last year.
While CMCO's revenue growth was driven by pricing actions and the contribution from the recent acquisition of montratec, the company faced margin pressure due to costs associated with consolidating its North American linear motion operations into a new manufacturing facility in Monterrey, Mexico. These transition costs, along with start-up expenses for the new factory, weighed on CMCO's profitability in the quarter.
Despite the challenges, CMCO reaffirmed its full-year fiscal 2025 guidance, projecting low single-digit revenue growth and mid to high single-digit adjusted EPS growth. The company remains optimistic about its strategic initiatives, including the footprint simplification plan and operational improvements aimed at enhancing shareholder value over time.
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