Zacks Investment Research upgraded
Barnes Group Inc.
) to a Zacks Rank #1 (Strong Buy) on Dec 28, 2013.
Why the Upgrade?
Barnes Group's financial results for the third-quarter 2013,
reported on Oct 25, were impressive and its shares have grown by
6.9% since then. Also, the company's Zacks Consensus Estimate for
2013 increased by 0.5% to $1.89 and by 9.0% to $2.31, for 2014,
in the last 60 days. A brief discussion of the company's
third-quarter 2013 performance is provided below.
Barnes Group reported adjusted earnings per share of 39 cents, up
8.3% from 36 cents reported in the year-ago quarter. Earnings
were however, 25% below the Zacks Consensus Estimate of 52 cents.
Net sales in the quarter increased 15.9% aided primarily by the
25.1% year-over-year increase in sales from the Industrial
segment and the 3.4% rise in sales from the Aerospace segment.
Gross margin escalated 300 basis points as the improvement in
sales was only partially offset by higher cost of sales.
Operating margin was up 70 basis points.
Barnes Group anticipates adjusted earnings per share to range
within $1.75-$1.80, reflecting an increase of 15%-18% over 2012
earnings. Revenues are expected to grow 16% above 2012.
In Oct 2013, Barnes Group completed acquiring Manner. The latter
is well recognized for high precision mold-making, valve gate hot
runner systems, and system solutions for the
medical/pharmaceutical, packaging, and personal care/health care
industries. The acquired assets will be integrated with Barnes
Group's Industrial segment. Such an acquisition, we believe, will
prove advantageous for the company in the quarters ahead.
Other Stocks to Consider
Barnes Group is a $2.0 billion company and a well-known aerospace
and industrial manufacturing and service provider. Some other
stocks worth considering in the industry include
DXP Enterprises, Inc.
). All the three companies carry a Zacks Rank #2 (Buy).
BARNES GRP (B): Free Stock Analysis Report
DXP ENTERPRISES (DXPE): Free Stock Analysis
MIDDLEBY CORP (MIDD): Free Stock Analysis
XYLEM INC (XYL): Free Stock Analysis Report
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