Raven Industries Inc.
) announced that its Board of Directors has approved a two-for-one
stock split in the form of a stock dividend. The decision was taken
on the back of strong operating results and stock performance.
On July 25, 2012, a shareholder owning one share of Raven stock
as of the close of business on July 10, 2012, will receive two
shares of Raven common stock. The company had last announced a
two-for-one stock split in October 2004.
In addition, the company announced that its board of directors
has approved a regular cash dividend of 21 cents per pre-split
share. This dividend will be paid on July 25, 2012 to shareholders
of record on July 10, 2012. Earlier, in March this year, Raven had
hiked its dividend by 17% to the current payout of 21 cents per
share, the 26th consecutive enhancement in its dividend
The stock-split announcement comes a week after Raven reported
its first quarter 2013 results reflecting strong performance in
Applied Technology and Engineered Films segments. Raven delivered
earnings of $1.04 per share, a 21% increase from the 86 cents per
share earned in the year-ago quarter. Sales increased 16% year over
year to $117.9 million. Both earnings per share and sales
outperformed the respective Zacks Consensus Estimates.
Raven Industries ended the quarter with cash and cash
equivalents, including short-term investments, of $43.5 million, up
from the $25.8 million at the end of January 31, 2012 and $42.6
million as of April 30, 2011. Cash flow from operating activities
during the quarter improved to $28.2 million from $11.0 million in
the year-ago quarter.
The stock split will broaden Raven's shareholder base, increase
market liquidity and enhance shareholder value. Raven has ample
scope to fund future growth and increase dividends with the support
of a debt-free balance sheet and solid cash flow.
Raven will benefit from the current strength in the agriculture
market. However, quarter-to-quarter variability of aerostat orders
will persist leading to significant fluctuations in the Aerostar
division. The company continues to invest strategically in research
and development, boosting financial results.
The quantitative Zacks #3 Rank (short-term Hold rating) for the
company indicates no clear directional pressure on stock over the
South Dakota-based Raven Industries Inc. is an industrial
manufacturer providing a variety of products for the agricultural,
industrial, construction and military/aerospace markets. The
company operates through four business segments: Engineered Films,
Electronic Systems, Applied Technology and Aerostar.
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