Altra Holdings Hits a New 52-Week High - Analyst Blog

By
A A A

Shares of Altra Holdings, Inc. ( AIMC ) touched a new 52-week high of $30.44 during its trading session on Jul 9. This represents an increase over the previous high of $30.10 reached on May 28.  

Altra Holdings closed the trading day on Jul 9 at $29.94, reflecting a solid year-to-date return of 88.9%. The trading volume for the session was 0.052 million shares. Further upside potential exists for this Zacks Rank #3 (Hold) industrial electrical equipment maker as can be deduced from its earnings estimate revisions in the last 60 days and expected earnings growth of 19.9% for 2013.

Growth Drivers

Altra Holdings posted quite decent financial results for the first quarter 2013 with its non-GAAP earnings per share coming in at 45 cents versus 40 cents earned in the year-ago quarter. Results were in-line compared with the Zacks Consensus Estimate.

Fewer shipping days led to a revenue decline of 3.7% in the quarter. Offsetting this was lower cost of sales that helped improve gross margin by 50 basis points to settle at 30%. Interest expense was down by 55%.    

Altra Holdings also announced a quarterly dividend rate increase of 25% for the second quarter 2013. The rate currently is 10 cents (or 40 cents on an annualized basis).

Additionally, Altra Holdings had a positive earnings surprise in all of the four trailing quarters with an average of 18.7%. This along with the decent first quarter 2013 results has raised optimism for a better performance ahead. We currently have an Earnings ESP (Read: Zacks Earnings ESP: A Better Method ) of +2.4% for 2013 and +18.7% for 2014.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for Altra Holdings increased by 1.0% to $2.12 per share for 2014 while the same remained stable for 2013.

Other stocks to watch out for in the industry are Kawasaki Heavy Industries Ltd. ( KWHIY ), with a Zacks Rank #1 (Strong Buy) while Chart Industries Inc. ( GTLS ) and Middleby Corp. ( MIDD ), each has a Zacks Rank #2 (Buy).



ALTRA HOLDINGS (AIMC): Free Stock Analysis Report

CHART INDUSTRIE (GTLS): Free Stock Analysis Report

KAWASAKI HEAVY (KWHIY): Get Free Report

MIDDLEBY CORP (MIDD): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AIMC , GTLS , KWHIY , MIDD

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

100,376,898
  • $17.62 ▲ 0.51%
83,231,837
  • $25.62 ▲ 1.91%
75,739,329
  • $111.78 ▼ 0.77%
65,297,937
  • $36.37 ▼ 1.76%
59,053,093
  • $47.66 ▲ 0.29%
53,482,350
  • $2.59 ▼ 0.38%
51,504,284
  • $7.34 ▲ 2.37%
51,434,656
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com