Rank on Omnitek Lowered - Analyst Blog

By
A A A

Zacks Investment Research downgraded Omnitek Engineering Corp. ( OMTK ) to a Zacks Rank #5 (Strong Sell) on Sep 21.

Why the Downgrade?

Weak financial results for the second quarter 2013 reported by Omnitek Engineering on Aug 12, 2013 led to the downward revision in earnings estimate. In the last 60 days, the Zacks Consensus Estimate for year 2013 has been revised from 4 cents loss per share to 5 cents loss per share. Earnings estimate for 2014 were pegged at 12 cents.

Omnitek Engineering reported 2 cents loss per share in the second quarter, down compared with the Zacks Consensus Estimate of 1 cent loss per share. Revenue at $197 million was down 48.2% year over year as the operations were largely impacted by disruptions caused by relocation to a larger facility.

Gross profit in the quarter plummeted 76.9% year over year while gross margin at 27.1% reflected 3360 basis points decline. Talking of Omnitek Engineering's liquidity position, cash balance stood at $1,998.5 million, down 37.4% from $3,192.8 million at the end of Dec 31, 2012.

Other Stocks to Consider

Omnitek Engineering Corporation develops and sells new natural gas engines and engine management systems for gaseous fuels. The company was founded in 2001 and is headquartered in California. Currently, it has a $50.6 million market capitalization.

Other companies to watch out for in the industry are Gorman-Rupp Co. ( GRC ) and Graham Corp. ( GHM ), each holding a Zacks Rank #1 (Strong Buy) while DXP Enterprises, Inc. ( DXPE ) has a Zacks Rank #2 (Buy).



DXP ENTERPRISES (DXPE): Free Stock Analysis Report

GRAHAM CORP (GHM): Free Stock Analysis Report

GORMAN RUPP CO (GRC): Free Stock Analysis Report

OMNITEK ENGINRG (OMTK): Get Free Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: DXPE , GHM , GRC , OMTK

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Cheap Ways to Sleep Better
Cheap Ways to Sleep Better          

Stocks

Referenced

Most Active by Volume

105,679,298
  • $16.13 ▼ 0.19%
43,130,824
  • $101.32 ▲ 0.74%
24,108,376
  • $59.80 ▲ 7.34%
22,524,427
  • $26.15 ▼ 1.06%
22,194,114
  • $24.65 ▼ 0.96%
21,835,360
  • $99.05 ▲ 0.15%
20,872,575
  • $34.94 ▼ 0.60%
20,561,803
    $74.57 unch
As of 8/22/2014, 04:02 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com