On Jan 15, 2013, Zacks Investment Research upgraded
Metso CP Ads
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Strong backlog growth and encouraging short term look are the
rank drivers for this stock. The company received new orders
worth €1,511 million during the third quarter. Although, orders
declined in the Pulp, Paper and Power segment, it was fully
offset by orders received by the services business across all
The orders across service segments increased strongly to €830
million representing 57% of the total orders received. In
addition, this automation solution, machinery and equipment
manufacturing company has consistently outperformed the Zacks
Consensus Estimate in the three out of the last four quarters by
an average magnitude of 64.5%.
On October 25, 2012, Metso reported robust third quarter
results with earnings of 96 cents a share, which surpassed the
Zacks Consensus Estimate by 52.4% or 33 cents a share. Earnings
were also up 17.0% year over year.
Consolidated revenues for the third quarter grew 12% year over
year to €1.75 billion ($2.2 billion), while organic growth
increased 6.5%. Net sales in the Services segment grew 11% and
totaled €788 million, accounting for 46% of revenues ($101
On the heels of the strong results, earnings estimates have
been trending higher in the past 90 days. The Zacks Consensus
Estimate for fiscal 2012 climbed 16.5% to $3.53 per share. This
represents a year-over-year increase of 11.7%.
The Zacks Consensus Estimate for fiscal 2013 increased 13.6%
to $3.76 per share over the same time frame, reflecting a
year-over-year increase of 6.5%.
Other Stocks to Consider
One of the company's peers,
Altra Holdings Inc.
) jumped to a Zacks Rank #1 ( Strong Buy) following its strong
third-quarter 2012 results whenearnings beat by 9.7%.
) also achieved a Zacks Rank #1 (Strong Buy) following its strong
third quarter 2012 results that reflected a year over year
earnings growth of 6.6%.
ALTRA HOLDINGS (AIMC): Free Stock Analysis
GRACO INC (GGG): Free Stock Analysis Report
METSO CORP -ADR (MXCYY): Free Stock Analysis
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