Zacks Investment Research downgraded
Luxfer Holdings plc
) to a Zacks Rank #5 (Strong Sell) on Jan 7, 2014.
Why the Downgrade?
Luxfer Holdings' third quarter 2013 results, reported on Nov
2013, were disappointing as adjusted net income fell 7.9% year
over year. Earnings per ADS of 33 cents were roughly 5.7% below
the Zacks Consensus Estimate of 35 cents.
Revenues in the quarter were up 4.7% year over year on the back
of healthy performance at the company's Gas Cylinders Division,
offset by a 2.5% revenue shortfall recorded at the Elektron
Talking of expenses and margins, cost of sales in the quarter
represented 75.8% of total revenues, an increase from 74.1%
reported in the year-ago quarter. Adjusted EBITDA margin in the
quarter was down 210 basis points.
Luxfer Holdings expects the European markets to cast a negative
impact on fourth-quarter earnings results. For 2013, trading
profit is expected to be on the lower end of the previously
announced $60.5 million to $63.5 million range. Moreover,
earnings per ADS are expected in the range of $1.40 to $1.43.
In the last 60 days, the Zacks Consensus Estimate for Luxfer
Holdings has gone down by 1.4% to $1.40 for 2013 and by 5.8% to
$1.62 for 2014. Downward revision in earnings estimates as well
as negative average earnings surprise of 1.24% for the trailing
four quarters raises skepticism over future performance.
Currently, we have an
of -2.7% for the fourth quarter 2013, -0.7% for 2013 and -1.2%
Other Stocks to Consider
Luxfer Holdings currently has a market capitalization of $571.6
million and operates in the diversified machinery industry.
Some-better ranked stocks in the industry include
Altra Industrial Motion Corp.
Magna International Inc.
). While Middleby holds a Zacks Rank #1 (Strong Buy), both Altra
Industrial and Magna International carry a Zacks Rank #2
ALTRA HOLDINGS (AIMC): Free Stock Analysis
LUXFER HOLDINGS (LXFR): Free Stock Analysis
MAGNA INTL CL A (MGA): Free Stock Analysis
MIDDLEBY CORP (MIDD): Free Stock Analysis
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