Why the Downgrade?
Weak financial results for the second quarter 2013 reported by Omnitek Engineering on Aug 12, 2013 led to the downward revision in earnings estimate. In the last 60 days, the Zacks Consensus Estimate for year 2013 has been revised from 4 cents loss per share to 5 cents loss per share. Earnings estimate for 2014 were pegged at 12 cents.
Omnitek Engineering reported 2 cents loss per share in the second quarter, down compared with the Zacks Consensus Estimate of 1 cent loss per share. Revenue at $197 million was down 48.2% year over year as the operations were largely impacted by disruptions caused by relocation to a larger facility.
Gross profit in the quarter plummeted 76.9% year over year while gross margin at 27.1% reflected 3360 basis points decline. Talking of Omnitek Engineering's liquidity position, cash balance stood at $1,998.5 million, down 37.4% from $3,192.8 million at the end of Dec 31, 2012.
Other Stocks to Consider
Omnitek Engineering Corporation develops and sells new natural gas engines and engine management systems for gaseous fuels. The company was founded in 2001 and is headquartered in California. Currently, it has a $50.6 million market capitalization.
Other companies to watch out for in the industry are Gorman-Rupp Co. ( GRC ) and Graham Corp. ( GHM ), each holding a Zacks Rank #1 (Strong Buy) while DXP Enterprises, Inc. ( DXPE ) has a Zacks Rank #2 (Buy).
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