Zacks Investment Research downgraded
Blount International Inc.
) to a Zacks Rank #5 (Strong sell) on May 8, 2013.
Why the Downgrade?
BLOUNT INTL (BLT): Free Stock Analysis Report
GRACO INC (GGG): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
TRI-TECH HOLDNG (TRIT): Free Stock Analysis
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Blount International reported lackluster financial results for
the first quarter 2013 on May 7, 2013. Since then, the company's
share price has gone down 1.4%. Earnings per share came in at 19
cents, up 58.3% year over year but 17.4% below the Zacks
Consensus Estimate of 23 cents.
Sales at $232.6 million represented a 3% hike over the year-ago
quarter as the segments including Forestry, Lawn and Garden
reported revenue increase of 2.2% while Farm, Ranch, and
Agriculture posted a 4.6% increase.
Talking of costs/margins of Blount International, cost of sales
in the quarter rose 3.6% year over leading to roughly a 70 basis
point decline in gross profit. Income tax expenses were a drag on
the results as it grew by roughly 92.1%.
For 2013, foreign currency headwind is expected to range within
$2-$3 million; interest expense is predicted to be within $18-$19
million and tax rate to be within the 35%-38% range.
After taking all these factors into account, earnings estimate
for Blount International came down in the last 7 days. The Zacks
Consensus Estimate for 2013 decreased by 1.9% to $1.02 while for
2014, the estimate went down by 1.5% to $1.32.
Also, two quarters of each negative earnings surprise and in-line
results have led to an overall negative earnings surprise of
19.6% in the last trailing four quarters. Currently, for the
second quarter 2013 of Blount International, we have an Earnings
Zacks Earnings ESP: A Better Method
) of -7.7%.
Other Stocks to Consider
Blount International is a $697 million company manufacturing and
marketing tools for forestry, lawn and garden, farm, ranch,
agriculture, and construction sectors. Other stocks to watch out
for in the industry are
Tri-Tech Holding, Inc.
), each holding a Zacks Rank #1 (Strong Buy) while
), has a Zacks Rank #2 (Buy).