On Dec 28, Zacks Investment Research downgraded
Hyster-Yale Materials Handling, Inc.
), a manufacturer of trucks and other vehicles, to a Zacks Rank
#5 (Strong Sell).
COLUMBUS MCKINN (CMCO): Free Stock Analysis
HUDSON TECHNOLO (HDSN): Free Stock Analysis
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Why the Downgrade?
On Oct 30, Hyster-Yale reported a 5.4% decline in its
third-quarter 2013 earnings to $1.40 per share. The
year-over-year decrease was led by higher income tax expense. The
result also missed the Zacks Consensus Estimate of $1.48.
Though, revenues in the reported quarter increased 10% year over
year to $643.9 million, it fell short of the Zacks Consensus
Estimate of $662 million. Sales in the Europe and Asia-Pacific
region declined in the quarter. However, revenues in the Americas
segment rose due to increase in unit price.
Hyster-Yale expects net income in the fourth quarter of 2013 to
fall from the prior-year quarter level. The company anticipates
an increase in capital expenditure in 2013, largely due to
information technology improvement in Brazil.
The Latin America market weakened during the reported quarter.
This weakness is expected to persist in the fourth quarter of
2013. Hyster-Yale also estimates that the demand in Europe will
remain weak due to volatile macroeconomic conditions. Moreover,
increase in material costs will hurt shipments and parts volumes
in all the markets in the fourth quarter of 2013 and in 2014.
Following the third-quarter earnings announcement, Hyster-Yale's
Zacks Consensus Estimate for 2013 has gone down 3.7% to $5.78 per
share. Likewise, the Zacks Consensus Estimate for 2014 dropped
7.8% to $6.45.
Other Stocks to Consider
Better-ranked stocks in the industrial products sector are
Columbus McKinnon Corporation
Hudson Technologies Inc.
). All these stocks hold a Zacks Rank #2 (Buy).