On Sep 21, Zacks Investment Research downgraded specialty
Universal Stainless & Alloy Products Inc.
) to a Zacks Rank #5 (Strong Sell).
Universal Stainless posted disappointing second-quarter 2013
results on Jul 31. Profit slumped around 89% to $0.5 million or 6
cents a share from $4.5 million or 62 cents a share posted in the
prior-year quarter. Adjusted earnings of 9 cents per share missed
the Zacks Consensus Estimate of 16 cents. The company has
delivered average negative surprise of 0.19% for the trailing
Revenues decreased 37% to $42.9 million in the second quarter
from $67.9 million in the year-ago quarter, missing the Zacks
Consensus Estimate of $56 million. The results were impacted by
lower volumes and demand as supply channel destocking continued
along with declining nickel prices. Short industry lead times
also led to delaying in placing new orders by the customers. The
quarter's performance was also hurt by lower shipment
Universal Stainless is expecting supply channel demand to
begin to gain traction in the fourth quarter. The company also
expects its end markets to remain strong in the long term. The
company will also focus on leveraging its strengths in its
facilities and enhance sales mix with higher margin products.
Universal Stainless plans to tap the opportunities in the end
markets through efficient customer service and products.
The Zacks Consensus Estimate for 2013 for Universal Stainless
has gone down 65.5% to 30 cents per share as all estimates were
revised lower over the last 60 days. Similarly, the Zacks
Consensus Estimate for 2014 has decreased 32.6% to $1.86 per
Other Stocks to Consider
Other companies in the steel industry with favorable Zacks
Companhia Siderurgica Nacional
Shiloh Industries Inc.
Nippon Steel & Sumitomo Metal Corporation
). All of them hold a Zacks Rank #1 (Strong Buy).
NIPPON STEEL CP (NSSMY): Get Free Report
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
UNVL STAINLESS (USAP): Free Stock Analysis
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