Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong Sell) on Mar 27, 2014.
Going by the Zacks model, companies holding a Zacks Rank #5
have strong chances of performing worse than the broader market.
Hence, investors seeking exposure to industrial equipment and
component makers are advised to avoid investing in, or those who
have already invested in the stock are advised to consider
selling their existing holdings in TriMas Corporation.
Why the Downgrade?
TriMas Corporation's fourth-quarter 2013 results were
disappointing, as evidenced by the downward revision in earnings
estimates since Feb 20, 2014. The company reported adjusted
earnings per share (EPS) from continuing operations of 31 cents,
down 6.1% year over year. The bottom-line result also fell short
of the Zacks Consensus Estimate of 36 cents by 13.9%.
Revenues in the quarter increased 7.4% year over year to $323.4
million. The top-line growth was partially offset by 12.9%
increase in cost of sales. Higher expenses led to a roughly 380
basis point (bps) fall in gross margin. Selling, general, and
administrative expenses in the quarter increased 4.5% year over
For 2014, TriMas Corporation anticipates revenue to grow within
the 6−8% range, lower than roughly 9.6% growth recorded in 2013.
In the last 60 days, the Zacks Consensus Estimate has decreased
10.1% to $2.22 for 2014 and by 7.5% to $2.58 for 2015.
Disappointing results, weak revenue growth outlook, and downward
revisions in earnings estimates have made us dubious about TriMas
Corporation's performance in the coming quarters. The company has
Earnings Expected Surprise Prediction
(ESP) of -8.1% for first quarter 2014 and -0.9% for 2014.
Other Stocks to Consider
TriMas Corporation currently has a $1.5 billion market
capitalization. Some better-ranked stocks in the industry include
Norsk Hydro ASA
Worthington Industries, Inc.
). While NN Inc. holds a Zacks Rank #1 (Strong Buy), Norsk Hydro
and Worthington Industries carry a Zacks Rank #2 (Buy).
NORSK HYDRO ADR (NHYDY): Get Free Report
NN INC (NNBR): Free Stock Analysis Report
TRIMAS CORP (TRS): Free Stock Analysis Report
WORTHINGTON IND (WOR): Free Stock Analysis
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