Zacks Investment Research upgraded
The Babcock & Wilcox Company
) to a Zacks Rank #1 (Strong Buy) on March 12, 2013.
Why the Upgrade?
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Operating environment and future growth prospects seem bright for
The Babcock & Wilcox Company as earnings estimates for this
diversified machinery company are on the rise. Over the last 30
days, the Zacks Consensus Estimate for 2013 has increased by 6.1%
to $2.27 while that for 2014 went up 8.3% to $2.49.
Momentum has been strong after Babcock & Wilcox released its
fourth quarter results and year 2012 earnings results on February
27. Adjusted earnings per share of 45 cents surpassed the Zacks
Consensus Estimate of 42 cents by 7.1% while lagging behind the
year-ago earnings of 54 cents. Results for 2012 were impressive
with earnings per share of $1.75 far exceeding $1.43 earned in
Revenue for the quarter increased 8.1% year over year on the back
of healthy performances at the company's Power Generation and
Nuclear Operations segments. Contract wins are solid for Babcock
& Wilcox with the recent ones including $510 million worth
Naval Nuclear Component contract, $100 million worth of contract
for U.K., Waste-to-Energy Plant and $100 million worth Naval
Nuclear Fuel Services and Materials contracts, among others.
For 2013, management of The Babcock & Wilcox Company targets
to generate revenue within $3.40-$3.55 billion range and adjusted
earnings per share in the range of $2.25-$2.45. Also, cost
savings up to $10-$15 million from the company's Global
Competitiveness Initiative are expected to be realized in 2013.
Other Stocks to Consider
Other stocks worth a look in the industry are
Atlas Copco AB
EnPro Industries, Inc.
), each with a Zacks Rank #1 (Strong Buy) and
Blount International Inc.
), carrying a Zacks Rank #2 (Buy).