Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy) on Feb 11, 2014.
Why the Upgrade?
Gorman-Rupp reported impressive fourth-quarter 2013 financial
results on Feb 7, 2014. Adjusted earnings per share in the
quarter were 29 cents, up 38.1% year over year. The top-line
result also surpassed the Zacks Consensus Estimate of 26 cents by
Sales were $91.6 million in the fourth quarter, up 3.3% year over
year. The increase can be attributed to 6.2% increase in domestic
sales, partially offset by 1.6% fall in international sales.
Domestic water supply projects increased sales in water end
markets. Order backlog at the end of the quarter was $182.2
million, reflecting an increase of 27.1% from the year-ago
Gross margin in the quarter was 23.4%, up 210 basis points year
over year. Selling, general and administrative expenses recorded
a slight decline of 1.4%. Operating profit increased 51.4% while
margin was 8.9% versus 6.0% in the year-ago quarter.
Strong fourth-quarter 2013 results as well as a positive average
earnings surprise of 9.7% make us optimistic of first-quarter
2014 results. We have an
of +7.4% for the first-quarter 2014 and +6.0% for 2014.
Also, in the last 30 days, the Zacks Consensus Estimate for
Gorman-Rupp has increased by 0.8% to $1.33 for 2014 and by 2.6%
to $1.60 for 2015.
Other Stocks to Consider
Gorman-Rupp Co. is a $788 million diversified machinery company.
Other stocks worth considering in the industry include
Altra Industrial Motion Corp.
Barnes Group Inc.
), all of which hold a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
BARNES GRP (B): Free Stock Analysis Report
GORMAN RUPP CO (GRC): Free Stock Analysis
MIDDLEBY CORP (MIDD): Free Stock Analysis
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