Manitex International

Company Description

Manitex International, Inc. provides engineered lifting solutions. The company operates through two segments, Lifting Equipment and Equipment Distribution. The Lifting Equipment segment designs, manufactures, and distributes boom trucks and crane products that are primarily used for industrial projects and energy exploration. The Equipment Distribution segment distributes rough terrain and truck cranes, material handlers, boom trucks, and sky cranes for infrastructure development and commercial construction; supplies repair parts for various medium to heavy duty construction equipment. Manitex International was founded in 1993 and is based in Bridgeview, Illinois.

MNTX Meets or Beats Expectations for Seven Straight Quarters

Manitex International has met or topped the Zacks Consensus Estimate in each of the last seven quarters. Over the course of the last six reports, there were two quarters that were reported in line with expectations and four that topped the Zack Consensus Estimate. The largest beat, coming in the September 2011 quarter, saw little movement in the stock, less than a 1% move and it was to the downside. The company reported earnings of $0.09 in that quarter, $0.03 ahead of the Zacks Consensus Estimate for a 50% beat.

The biggest stock price move of the last six quarters came following the December 2010 quarter. The one penny beat on the bottom line translated into a 14% positive earnings surprise that drove the stock higher by 9.4%. Revenues were also ahead of expectations, coming in at $30 million or $4 million ahead of the Zacks Consensus Estimate for a 14% beat on the topline as well.

Manitex International Recently Reported Earnings

On March 22, 2012 the company reported revenue of $37 million roughly in line with the Zacks Consensus Estimate and higher than the $30 million reported in the year ago period. EPS of $0.09 was also in line with estimates. Following the report, the stock moved lower by 8%.

Earnings Estimates Bumped Up

Following the most recent earnings report, analysts bumped up their earnings estimates for 2012. The Zacks Consensus Estimate for 2012 EPS moved from $0.50 in January 2012 to the current level of $0.57. The 2013 estimate spiked higher following the recent earnings release, moving from $0.69 in January to the current level of $0.85. That is an implied earnings growth rate of 49%, something aggressive growth investors generally look for.

Valuations

Manitex International's valuation picture is a mixed one. Despite showing great earnings growth potential the company trades at a reasonable 16x forward PE compared to a 10x industry average. The trailing twelve months PE, however, at 29x is well above the industry average of 12x. The other metrics that aggressive growth investors would look at, like price to book and price to sales come in almost right on the industry average.

The Chart

When we look at the price and consensus chart for Manitex International, we see a stock that has followed expected earnings estimates very closely. In participating in the recent broad rally in the equities market, MNTX has also see earnings expectations rise considerable, and even through the 2012 consensus line. This is generally a signal that the stock is undervalued. The 2013 consensus seems to be moving just to keep up with the stock, and that implies that analysts see good things in the future for the stock. MNTX Grill is a Zacks #1 Rank (Strong Buy).

Brian Bolan is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor service You can follow him at twitter.com/bbolan1