Blount International Reaches 52-Week High on Strong Earnings - Analyst Blog

Shares of Blount International Inc. ( BLT ), a machinery company, scaled a new 52-week high of $14.89 on Aug 8. This marks a nominal increase from the previous high of $14.62 hit a day earlier.

Blount International closed at $14.84, with a trading volume of 219.8K shares for the session. Upward estimate revisions for the coming quarters indicate further upside potential for the company.

Growth Drivers

Blount International reported strong results for the second quarter of 2014, with a year over year hike in earnings as well as revenues. Earnings increased 31.6% year over year to 25 cents, mainly due to higher levels of operating income. Also, revenues rose 6.8% year over year to $234.5 million.

Further, the company's board of directors authorized a share repurchase of up to $75 million, to be completed before Dec 31, 2016. This repurchase authorization reflects the healthy cash flow and balance sheet position of the company, along with strong growth opportunities.

Based on the improved results, the company raised its 2014 outlook for sales as well as adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). Currently, the company expects revenues in the range of $935 to $960 million, up from the previous estimate of $925 to $950 million. Adjusted EBITDA is raised to a range of $135 to $140 million from $130 to $135 million projected earlier.

Post its second-quarter earnings announcement, the company has been witnessing upward estimates revision. In the past seven days, the Zacks Consensus Estimate for third quarter of 2014 has increased 8.7% to 25 cents, reflecting year-over-year growth of 21.4%. Also, the Zacks Consensus Estimate for fourth-quarter 2014 rose 9.5% to 23 cents, growing 161.1% year-over-year over the same time frame. For full-year 2014, the Zacks Consensus Estimate climbed 6.8% to 94 cents, depicting year over year growth of 29.9%.

Other Stocks to Consider

With a market capitalization of $734.2 million, Blount International sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the industry include DXP Enterprises, Inc. ( DXPE ), IDEX Corporation ( IEX ) and Tennant Company ( TNC ). All these stocks hold a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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