Shares of Emerald Expositions Events Inc. in San Juan Capistrano fell slightly after the tradeshow operator met Wall Street expectations on revenue but faltered on earnings for the March quarter.
Emerald posted $135.7 million in revenue, a 6.1% increase year-over-year. Organic growth contributed 2.9% and two acquisitions—CEDIA Expo and InterDrone—accounted for the rest. Analysts had anticipated similar results.
Its net income remained flat at $28.3 or 4 cents per share, however, analysts expected 5 cents a share.
The company said it anticipates its full year revenue growth of 7.5% to 9.5%, or $348 million to $355 million.
Emerald President and Chief Executive David Loechner in a press release noted “several very specific issues related to a few of our shows likely to constrain 2017’s overall organic growth rate” but presented a generally positive take on the company’s positioning and portfolio and confidence in “solid organic growth going forward.”
He said, “Strategic acquisitions will also be an important long-term growth driver for our company to supplement this organic growth.”
The company has bought three tradeshow properties from the shows’ operators this year.
This was the first quarterly report for Emerald Expositions as a public company; it went public last month under the ticker symbol “EEX” and traded recently at a $1.6 billion market cap.
The IPO cut Emerald’s debt by $159.2 million.
