Zacks Investment Research downgraded
Altra Holdings, Inc.
) to a Zacks Rank #5 (Strong Sell) on Jul 27, based on weak
second-quarter 2013 results combined with a weak outlook for the
Why the Downgrade?
Altra reported earnings per share of 41 cents in the second
quarter of 2013, missing the Zacks Consensus Estimate by 12.8%.
Revenues came in at $181.1 million, missing the Zacks Consensus
Estimate of $189.0 million as well as the year-ago quarter's
revenues by 3.6%.
The decline was brought about by a downturn in demand of the
capital-intensive end markets like metals, mining and energy.
Moreover, demands in North America and Asia were lower than
expected. Margins also faced a decline in the quarter owing to
higher selling, general and administrative (SG&A) expenses.
The trend is expected to continue in the coming quarters as
Accordingly, Altra has reduced its outlook for 2013. The
company expects revenues in the range of $715.0 million to $730.0
million in 2013, down from $740.0 million to $750.0 million as
expected earlier. Moreover, Altra lowered its earnings per share
expectation to a range of $1.52 to $1.64 from $1.75 to $1.85 as
Subsequent to the results, Altra witnessed a downward revision
for most of its estimates for years 2013 and 2014. All the
estimates have been revised downwards for 2013, resulting in a
decline in the Zacks Consensus Estimate by 8.2% to $1.67 per
share, over the last 7 days. The Zacks Consensus Estimate for
2014 was also reduced by 5.7% to $1.99 per share in the same
Other Stocks to Consider
Other machinery stocks that are worth a look include
Chart Industries Inc.
). While Gorman-Rupp carries a Zacks Rank #1 (Strong Buy), Chart
Industries and Dover Corporation carry a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
DOVER CORP (DOV): Free Stock Analysis Report
GORMAN RUPP CO (GRC): Free Stock Analysis
CHART INDUSTRIE (GTLS): Free Stock Analysis
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