On January 5, Zacks Investment Research upgraded
) to a Zacks #1 Rank (Strong Buy).
Why the Upgrade?
Rogers Corporation has been witnessing rising earnings
estimates on the back of improved third quarter 2012 results and
strong outlook for the quarter ahead. Moreover, this producer of
specialty materials and components delivered positive earnings
surprises in 2 of the last 4 quarters with an average surprise of
21%. The long-term expected earnings growth rate for this stock
Rogers Corporation reported fiscal third-quarter (ended
September 30) results on November 5, 2012. Earnings came in at 69
cents per share, beating the Zacks Consensus Estimate by 7.8%.
Even though earnings declined on a year-over-year basis, there
has been an improving trend so far in 2012 with the third quarter
witnessing a 47% surge from the prior quarter and a whopping 165%
increase from the first quarter of 2012.
The company's restructuring and streamlining activities, which
include efficiencies in supply chain and manufacturing
operations, cost reduction activities and headcount reductions
contributed around $4.5 million during the quarter, ahead of the
expected level of $3.0 million. The company expects better
operating profit leverage on future sales growth given the lower
cost structure now in place. Going forward, these initiatives are
expected to help the company to counter weak market
For the fourth quarter, the company expects revenues between
$129 million and $135 million. Compared to the year-ago quarter,
the guidance projects annual sales growth of 2% to 7%. Earnings
per share are expected between 69 cents and 79 cents, which
suggests a year-over-year increase of 64% to 88%.
The Zacks Consensus Estimate for fiscal 2012 increased 7% to
$2.18 per share as all the estimates were revised higher over the
last 60 days. For fiscal 2013, half of the estimates were revised
higher during the same period, lifting the Zacks Consensus
Estimate by 1% to $2.84 per share. This suggests a year-over-year
climb of 30.5%.
Other Stocks to Consider
Other stocks in the same industry with favorable Zacks Rank
and worth considering are
AAC Technologies Holdings Inc.
LightPath Technologies, Inc.
) which hold Zacks #1 Rank (Strong Buy).
(AACAY): ETF Research Reports
(LPTH): ETF Research Reports
ROGERS CORP (ROG): Free Stock Analysis Report
SPARTON CORP (SPA): Free Stock Analysis
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