On Jun 5, 2013, Zacks Investment Research upgraded
Key Technology, Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Estimates for Key Technology have undergone sharp upward
revisions following the company's better-than-expected second
quarter financial results on May 2 with an earnings surprise of
322.22%. This helped the manufacturer of services process
automation systems attain a 52-week high of $16.40 on May 8.
Key Technology reported second-quarter 2013 earnings of 38 cents
per share, reversing its year-ago loss of 13 cents per share as
well as the first quarter loss of 16 cents per share. Margins
were aided by improved product mix and more efficient plant
Key Technology ended the second quarter with a record backlog of
$50.1 million compared with $34.7 million one year ago. New
orders received during the quarter were $32.7 million, up from
$24.9 million in the corresponding period last year. The orders
include several important orders, mainly in the potato and
processed fruit and vegetable markets.
Key Technology completed the acquisition of Belgium-based Visys
NV, a supplier of innovative digital sorters, in the second
quarter. The total value of the deal was approximately $21
million. The transaction is expected to be accretive within the
first twelve months. The acquisition will increase Key
Technology's share in its core markets, help expand into new
high-potential markets, and accelerate its development of
next-generation sorting technologies.
The Zacks Consensus Estimate for 2013 increased 39% to 43 cents
per share, translating into an impressive 431.25% annual growth.
Other Stocks to Consider
Other stocks to watch out for in the industry are
Hyster-Yale Materials Handling, Inc.'s
), with a Zacks Rank #1 (Strong Buy), and
Columbus McKinnon Corporation
), with a Zacks Rank #2 (Buy).
COLUMBUS MCKINN (CMCO): Free Stock Analysis
GRACO INC (GGG): Free Stock Analysis Report
KEY TECHNOLOGY (KTEC): Free Stock Analysis
To read this article on Zacks.com click here.