Colfax Reaches 52-Week High - Analyst Blog
May 22 2013 - 10:05AM
Zacks
Shares of Colfax
Corporation (CFX), a manufacturing and engineering company
hit a 52-week high of $49.99 on May 20 and eventually closed at
$49.40. The shares of this company have been gaining momentum since
it reported solid first quarter 2013 results on Apr 25.
Year-to-date, share price has
recorded a healthy return of 23.3%. The company’s long-term
estimated EPS growth rate is 28.5%. Average volume of shares traded
over the last three months came in at approximately 1,314K.
Solid First Quarter
Performance
Colfax posted strong first-quarter
results with adjusted earnings per share of 26 cents, beating the
Zacks Consensus Estimate of 24 cents per share by 8.33%. Earnings
also grew 13.0% year over year, due to improved sales and margins
in the quarter.
Revenue was reported at $947.1
million, up 6.8% year over year. The main reason for increased
revenues was the $105.2 million contribution from various
acquisitions, which was slightly offset by a drop in the existing
business accompanied by foreign currency adjustments.
Colfax also experienced a hike in
margins with gross margin increasing 340 basis points to 30.7% year
over year. SG&A, as a percentage of sales, was 22.4%, against
23.9% in the first quarter of 2012. Colfax’s adjusted operating
income margin expanded 120 basis points year over year to 8.1% in
the quarter.
In view of the same, Colfax
maintained its revenue guidance in the range of $4.175 billion to
$4.25 billion with an organic revenue increase of 1% to 3%.
Moreover, Colfax is expected to witness a hike of 27.0% to 42.0% in
its earnings per share for 2013 and lie in the range of $1.70 to
$1.90.
Roughly 75.0% of the estimates have
been revised upward for the years 2013 and 2014, subsequent to the
earnings release. Over the last 30 days, the Zacks Consensus
Estimate has risen 5.9% to $1.97 for 2013, while escalating 3.7% to
$2.50 for 2014.
Other Stocks to
Consider:
Colfax currently carries a Zacks
Rank #2 (Buy). Other stocks worth a look in the industry are
Graco Inc. (GGG) and Tri-Tech Holding,
Inc. (TRIT); each holding a Zacks Rank #1 (Strong Buy).
Also, Altra Holdings, Inc. (AIMC) carries a Zacks
Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis Report
COLFAX CORP (CFX): Free Stock Analysis Report
GRACO INC (GGG): Free Stock Analysis Report
TRI-TECH HOLDNG (TRIT): Free Stock Analysis Report
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