Zacks Investment Research upgraded
Sutor Technology Group Limited
) to a Zacks Rank #1 (Strong Buy) on Mar 20, 2013.
GERDAU SA ADR (GGB): Free Stock Analysis
POSCO-ADR (PKX): Free Stock Analysis Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
SUTOR TECH GRP (SUTR): Free Stock Analysis
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Why the Upgrade?
Sutor Technology's financial results for the second quarter of
fiscal 2013 (ended Dec 31, 2012) as announced on Feb 7, 2013 were
impressive. The company reported earnings per share of 12 cents,
up 71.4% year over year and double the Zacks Consensus Estimate
of 6 cents per share.
Revenue improved 46.3% year over year to $157.9 million as the
company leveraged benefits from new products and service
offerings to a more diversified customer base. Volumes sold
improved while average selling price was a little weak. Higher
proportion of low-margin products in the quarter pressured gross
margin that went down 190 basis points.
Operating margin in the quarter went down by 40 basis points, due
primarily to lower gross margins, offset slightly by lower
proportion of operating expenses as a percentage of revenue.
Three out of four quarters of positive earnings surprise with the
average being 47.6%, raises optimism for a better financial
performance ahead for Sutor Technology. Following the second
quarter results, in the last 60 days, the Zacks Consensus
Estimate for fiscal 2013 has gone up by 40.9% to 31 cents while
that for fiscal 2014 went up 7.7% to 42 cents.
Other Stocks to Consider
Sutor Technology is one of the leading manufacturers and
suppliers of steel products in China. The company currently has a
market capitalization of $71.7 million. Other stocks worth a look
at in the industry are
Companhia Siderurgica Nacional