Raven Industries Inc.
) announced that its Board has approved a 14% increase in its
regular quarterly dividend. This represents the 27th consecutive
hike in its dividend.
Raven will now pay 12 cents per share to its shareholders, 1.5
cents more than the prior dividend of 10.5 cents per share. The
increased dividend will be paid on April 25, 2013, to
shareholders of record as of April 10, 2013.
Raven recently reported fourth-quarter fiscal 2013 (ended Jan 31,
2013) earnings of 30 cents per share, flat year over year. It
beat the Zacks Consensus Estimate by 5 cents. Sales decreased 7%
year over year to $89.6 million, missing the Zacks Consensus
Estimate of $95 million. Revenues fell as higher sales in the
Applied Technology Division was offset by declines in the the
other two segments, Engineered Films and Aerostar.
Raven reported record fiscal 2013 earnings of $1.44 per share, up
4% annually, ahead of the Zacks Consensus Estimate of $1.39.
Sales increased 6% year over year to a record $406.2 million, yet
missed the Zacks Consensus Estimate of $409 million. The hike in
revenues was driven by higher sales in the Applied Technology
Division and Engineered Films, partly offset by a decline at
Raven exited fiscal 2013 with cash and cash equivalents of $49.3
million, up almost two-fold year over year. The company has no
debt on its balance sheet.
Raven's Engineered Films segment continues to benefit from strong
demand for geo membrane films. Demand for geo membrane films,
meant for environmental protection, is on the rise as customers
are keen on protecting water and other environmental resources
for a sustainable future. This will provide a boost to Raven's
revenues, moving ahead.
Raven continues with its strategy of investing significantly in
research and development, thereby helping it to maintain strong
financial results. In addition, Raven has ample scope to fund
future growth with the support of debt-free balance sheet and
solid cash flow.
However, the near-term results of the Aerostar segment will be
affected by the lack of aerostat orders. Revenues at the
Engineered Films segment will remain affected due to continued
energy market weakness.
S. Dak.-based Raven is an industrial manufacturer providing a
variety of products for the agricultural, industrial,
construction and military and aerospace markets. Raven operates
through four business segments: Engineered Films, Electronic
Systems, Applied Technology and Aerostar.
Raven currently holds a short-term Zacks Rank #4 (Sell).
Other stocks worth considering in the same industry where Raven
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