) reported fourth-quarter 2012 adjusted earnings from continuing
operations of of $1.09 per share, beating the Zacks Consensus
Estimate of $1.07 and exceeding the prior-year quarter's earnings
of $1.02 per share.
ALTRA HOLDINGS (AIMC): Free Stock Analysis
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On a reported basis, earnings from continuing operations were
$1.16 per share compared with the prior-year quarter's earnings
of $1.05. Earnings in the reported quarter include a tax benefit
of 7 cents per share while the year-ago quarter's earnings
include a tax benefit of 3 cents.
Dover reported adjusted earnings from continuing operation of
$4.44 per share for 2012, a 15% rise from the prior-year
quarter's adjusted earnings of $3.87. The results, however,
missed the Zacks Consensus Estimate of $4.52. On a reported
basis, earnings were $4.53 per share compared with $4.09 posted
Revenues and Margins
Total revenues were $2 billion in reported quarter, up 6% year
over year, meeting the Zacks Consensus Estimate. The growth
includes an organic growth of 2% and a 5% contribution from
acquisitions,, partially offset by a negative impact of 1% from
Revenues for the full year increased 9.5% to $8.1 billion from
$7.4 billion in 2011. It missed the Zacks Consensus Estimate of
Cost of sales increased 6% to $1.24 billion in the fourth quarter
from $1.17 billion in the year-ago quarter. Gross profit went up
7.7% year over year to $773.7 million. Consequently, gross margin
expanded 40 basis points (bps) to 38.4% in the quarter.
Operating profit rose 7.2% to $304 million. Operating margin was
15.1%, essentially same as the prior year quarter.
Revenues in the Communication Technologies segment rose 1.1% to
$400.8 million. The segment's income, however, dropped 18% year
over year to $58.4 million.
Energy revenues increased 5.8% to $540 million in the quarter.
The segment's operating income shot up 9.4% to $133.5 million.
Revenues in the Engineered Systems segment increased 12% to
$819.1 million in the quarter. The segment's income surged 9.6%
to $101.8 million.
Printing & Identification segment revenues were $254.1
million in the quarter compare with $253.6 million in the
prior-year quarter. The segment reported an operating income of
$40.65 million, increasing 21% from $33.43 million a year ago.
Bookings and Backlog
The company ended the fourth quarter with $1.971 billion worth of
bookings versus $1.902 billion at the end of the fourth quarter
of 2011. Backlog increased to $1.45 billion at end of the
reported quarter from $1.36 billion a year ago.
The company had free cash flow of $482.5 million in the reported
quarter, a 91% year over year increase.
Cash and cash equivalent decreased 34% year over year to $800
million. Total debt was $2.8 billion as of December 31, 2012, up
28% year over year. Debt-to-capitalization ratio increased to
28.9% in 2012 from 16.6% in 2011.
Outlook for 2013
Dover expects revenues to rise in the range of 7%-9% in 2013.
This assumes organic revenue improvement of 3%-5% and a 4%
contribution from acquisitions. The company expects earnings to
be in the band of $5.05-$5.35 per share for 2013.
Dover is experiencing revenue challenges in the handset and
electronic markets. Moreover, the uncertainty in global economic
condition adds to the woe.
Dover retains a short-term Zacks #3 Rank (Hold).
) also belong to the diversified machinery industry. While Altra
and Metso hold a Zacks Rank #1 (Strong Buy), Idex retains a Zacks
Rank #2 (Buy).