Blount International Down to Strong Sell - Analyst Blog
13 Mai 2013 - 3:20PM
Zacks
Zacks Investment Research
downgraded Blount International Inc. (BLT) to a
Zacks Rank #5 (Strong sell) on May 8, 2013.
Why the
Downgrade?
Blount International reported lackluster financial results for the
first quarter 2013 on May 7, 2013. Since then, the company’s share
price has gone down 1.4%. Earnings per share came in at 19 cents,
up 58.3% year over year but 17.4% below the Zacks Consensus
Estimate of 23 cents.
Sales at $232.6 million represented a 3% hike over the year-ago
quarter as the segments including Forestry, Lawn and Garden
reported revenue increase of 2.2% while Farm, Ranch, and
Agriculture posted a 4.6% increase.
Talking of costs/margins of Blount International, cost of sales in
the quarter rose 3.6% year over leading to roughly a 70 basis point
decline in gross profit. Income tax expenses were a drag on the
results as it grew by roughly 92.1%.
For 2013, foreign currency headwind is expected to range within
$2-$3 million; interest expense is predicted to be within $18-$19
million and tax rate to be within the 35%-38% range.
After taking all these factors into account, earnings estimate for
Blount International came down in the last 7 days. The Zacks
Consensus Estimate for 2013 decreased by 1.9% to $1.02 while for
2014, the estimate went down by 1.5% to $1.32.
Also, two quarters of each negative earnings surprise and in-line
results have led to an overall negative earnings surprise of 19.6%
in the last trailing four quarters. Currently, for the second
quarter 2013 of Blount International, we have an Earnings ESP
(Read: Zacks Earnings ESP: A Better Method) of -7.7%.
Other Stocks to Consider
Blount International is a $697 million company manufacturing and
marketing tools for forestry, lawn and garden, farm, ranch,
agriculture, and construction sectors. Other stocks to watch out
for in the industry are Tri-Tech Holding, Inc.
(TRIT) and Graco Inc. (GGG), each holding a Zacks
Rank #1 (Strong Buy) while Middleby Corp. (MIDD),
has a Zacks Rank #2 (Buy).
BLOUNT INTL (BLT): Free Stock Analysis Report
GRACO INC (GGG): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis Report
TRI-TECH HOLDNG (TRIT): Free Stock Analysis Report
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