) reached a new 52-week high of $24.79 during its trading session
on May 28. The new 52-week high improved marginally fromthe last
one of $24.76 hit on May 27.
NN Inc. closed the day at $24.70 on May 28, reflecting a solid
year-to-date return of 167.6%. The trading volume for the session
was 0.29 million. Better-than-expected results for first-quarter
2014 triggered positive revision in earnings estimates for 2014 and
2015. This, along with a solid year-over-year earnings growth
expectation for 2014 and 2015, indicates further upside potential
for the company.
NN Inc. reported earnings of 31 cents per share, reflecting an
increase of 47.6% from 21 cents per share reported in the year-ago
quarter. Also, the bottom-line results surpassed the Zacks
Consensus Estimate of 25 cents per share by 24.0%.
Revenues generated were $102.5 million, up 9.3% year over year. The
top-line growth was partially offset by 7.7% increase in cost of
sales. Gross profit increased 15.4% while gross margin rose 110
basis points to 21.7%.
Also, NN Inc. is focused to rewarding its shareholders through
regular dividend payments. Recently, the company's board of
directors approved disbursement of 7 cents per share quarterly
dividend on Jun 20, to shareholders of record as on Jun 6, 2014.
Stellar quarter-performance and a healthy capital deployment policy
of NN Inc. make us hopeful of a better quarter performance going
Estimate Revisions Show Potency
Over the last 30 days, the Zacks Consensus Estimate for NN Inc. has
increased by 4.5% to $1.40 for 2014 and by 9.9% to $1.78 for 2015.
The consensus estimate also depicts a year-over-year growth rate of
35.9% for 2014 and 27.1% for 2015.
NN Inc. currently has a market capitalization of $438.0 million and
sports a Zacks Rank #1 (Strong Buy). Other players worth
considering in the machine tools and accessories industry include
Norsk Hydro ASA
Northwest Pipe Co.
). All these stocks carry a Zacks Rank #2 (Buy).
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