) touched a new 52-week high of $74.78 during its trading session
on May 8. The primary driver was the company's stellar performance
in first-quarter 2014. The new 52-week high improved upon the last
52-week high of $74.09 hit on May 6.
Colfax closed the trading on May 8 at $73.90, reflecting a solid
year-to-date return of 60.7%. The trading volume for the session
was 0.49 million. Earnings estimate revisions for 2014 and 2015 and
an expected earnings growth rate of 19.5% for the next five years
indicate further upward potential for this manufacturing and
Colfax's impressive first-quarter 2014 results not only triggered
positive revisions in earnings per share estimates, but also drove
the share price up by 2.1% since Apr 24, 2014. Earnings were 43
cents per share, surpassing the year-ago figure by 65.4%. However,
the bottom-line result lagged the Zacks Consensus Estimate by a
Revenues grew 11.3% on the back of 5.6% organic growth and 9.0%
gain from acquisitions, offset by a 3.3% negative impact from
currency translation. Orders at $583 million were up 16.2% while
backlog grew 10.7%.
For 2014, Colfax anticipates the Victor acquisition, completed in
April, to boost its results. Accordingly, the company has increased
its top-line guidance to a $4.85−$4.99 billion range from the
previous projection of $4.5−$4.625 billion. Earnings per share are
expected to be within $2.45−$2.70, slightly up from the prior
expectation of $2.40−$2.65.
Impressive results, a robust outlook as well as a positive average
earnings surprise of 3.1% have made us optimistic about Colfax's
performance in the coming quarters. The company has an
of +1.54% for second-quarter 2014 and +0.39% for full-year 2014.
Estimate Revisions Show Potency
In the last 30 days, the Zacks Consensus Estimate for Colfax has
inched up by 0.4% to $2.59 for 2014 and by 2.6% for 2015. The
consensus estimate also reflects year-over-year growth of 26.9% for
2014 and 23.8% for 2015.
Colfax presently has a market capitalization of $9.13 billion and
carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the
Illinois Tool Works Inc.
). While Gorman-Rupp carries a Zacks Rank #1 (Strong Buy), both
Illinois Tool Works and Nordson hold a Zacks Rank #2 (Buy).
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