Zacks Investment Research upgraded
Atlas Copco AB
) to a Zacks Rank #1 (Strong Buy) on Feb 2, 2013.
Why the Upgrade?
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The industrial productivity solutions provider posted solid
fourth quarter 2012 results with earnings per ADR coming in at 44
cents, above the Zacks Consensus Estimate of 41 cents. Revenue
also grew 2% year over year on the back of a 4% increase in
organic revenue. Operating profits increased 2% while remaining
stable at 20.6% as a percentage of revenue.
For 2012, revenues increased 11% year over year on the back of a
4% increase in orders received. Healthy performances were noticed
in Compressor Technique, Industrial Technique, and Mining and
Rock Excavation Technique.
Operating income registered a 9% increase and net profits for the
period grew 7%. A sharp decline in debt-to-equity ratio was
noticed for 2012 that stood at 24.2% compared with 49.2% in 2011.
Return on equity was at 44.5% in 2012.
Four straight quarters of positive earnings surprise with the
average of 6.9%, raises optimism for a better quarter ahead. For
2013 and 2014, we have an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +5.9% and +5.1%, respectively.
In the last 30 days, the Zacks Consensus Estimate for 2013
increased by 2.4% to $1.70 while that for 2014 went up 5.4% to
Other Stocks to Consider
The stock currently bears a Zacks Rank #1 (Strong Buy). Other
stocks worth a look in the industry are
Atlas Copco AB
), each holding a Zacks Rank #1 (Strong Buy) and
), bearing a Zacks Rank #2 (Buy).