Zacks Investment Research downgraded
Blount International Inc.
) to a Zacks Rank #5 (Strong Sell) on Jan 2, 2014.
Why the Downgrade?
Blount International's results for third-quarter 2013, announced
on Nov 1, 2013, were disappointing. Earnings per share came in at
21 cents, down 8.7% year over year. However, the result was 5%
above the Zacks Consensus Estimate of 20 cents.
Sales came in at $230.6 million, down 1% over the year-ago
quarter, due primarily to weak performance at the Forestry, Lawn
and Garden segment, offset partially by healthy performance in
the Farm, Ranch and Agriculture segment.
With respect to costs/margins of Blount International, cost of
sales in the quarter rose 1.0% year over year leading to roughly
a 10 basis point decline in gross profit margin. Income tax
expenses were a drag on the results as it skyrocketed roughly
For 2013, foreign currency headwind is expected to range within
$1-$2 million; interest expense is predicted to be within $18-$19
million and tax rate to be within the 32%-35% range. Sales are
expected to range within $905-$915 million, down 1.9% year over
year, at the mid points. Forestry, Lawn and Garden sales are
expected to be down 4%-5%, offset by an increase of 6%-7%
anticipated in Farm, Ranch, and Agriculture segments' sales.
In the last 60 days, the Zacks Consensus Estimate for Blount
International decreased 5.7% to 99 cents for 2014. This, along
with negative average earnings surprise of 13.7% for the trailing
quarters, raises concern over the company's performance in the
Other Stocks to Consider
Blount International is a $714 million company manufacturing and
marketing tools for forestry, lawn and garden, farm, ranch,
agriculture and construction sectors.
Some better-ranked stocks in the machinery industry include
Barnes Group Inc.
Altra Industrial Motion Corp.
). While Barnes Group carries a Zacks Rank #1 (Strong Buy),
Middleby and Altra Industrial carry a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
BARNES GRP (B): Free Stock Analysis Report
BLOUNT INTL (BLT): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
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