On Mar 7, Zacks Investment Research downgraded
Raven Industries Inc.
) to Zacks Rank#5 (Strong Sell).
Why the Downgrade?
Raven Industries has witnessed downward estimate revisions and
hit its 52-week low after reporting disappointing results for
third-quarter 2013 on Nov 20. Earnings estimates of this
industrial manufacturer of products have been on the downside on
the back of a tepid fourth quarter outlook due to continued macro
weakness related to energy exploration and defense spending and
continued headwinds for Raven's segments.
Raven's third-quarter earnings per share of 30 cents missed
the Zacks Consensus Estimate of 34 cents. On a year-over-year
basis, earnings dipped 3%.
Raven's Aerostar will continue to be impacted by a lack of
aerostat orders and the continued energy market weakness will
impede Engineered Films segment's performance. Margins in the
Applied Technology segment will be under pressure due to the
company's heightened investments in new initiatives and the
resultant increase in research and development and selling,
general and administrative expenses. Furthermore, given the
company's performance so far in 2013 and expectations of a
difficult fourth-quarter, the long-term earnings growth target of
10-15% seems unlikely in the current year.
Over the last 60 days, the Zacks Consensus Estimate for Raven
for 2013 decreased 4% to $1.39 per share while for 2014; it went
down 11% to $1.42 per share.
Other Stocks to Consider
Among the other stocks in the same industry,
Macquarie Infrastructure Company LLC
Tyco International Ltd.
) hold a Zacks Rank#2 (Buy) and are favorable options for
CRANE CO (CR): Free Stock Analysis Report
MACQUARIE INFRA (MIC): Free Stock Analysis
RAVEN INDS INC (RAVN): Free Stock Analysis
TYCO INTL LTD (TYC): Free Stock Analysis
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