Zacks Investment Research upgraded
Sutor Technology Group Limited
) to a Zacks Rank #1 (Strong Buy) on Feb 15, 2013.
Why the Upgrade?
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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Financial results for the second quarter of fiscal 2013 (ended
December 31, 2012) as announced on Feb 7, 2013, impressed all
with earnings per share for the quarter rising 71.4% year over
year on the back of a 46.3% increase in revenue. Earnings per
share of 12 cents in the quarter were precisely 100% increase
over the Zacks Consensus Estimate of 6 cents.
Revenue improvement can be attributed to 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. Following the second quarter results, in the
last 30 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
Other stocks worth a look at in the industry are
Companhia Siderurgica Nacional
), each with a Zacks Rank #2 (Buy).