Back to top

Analyst Blog

Zacks Investment Research downgraded Luxfer Holdings PLC (LXFR - Snapshot Report) to a Zacks Rank #5 (Strong sell) on Aug 16, 2013.

Why the Downgrade?

Shares of Luxfer Holdings have dropped 0.5% since the company reported its second quarter of 2013 results on Aug 12. Adjusted net income plummeted 8.3% year over year to $10.0 million. Diluted earnings per ADS came in at 36 cents, behind the Zacks Consensus Estimate of 40 cents.

Revenue for Luxfer Holdings decreased 2.1% year over year due primarily to weak results from the Elektron Division and $1.0 million negative impact from foreign currency translation. Gas Cylinders Division’s revenue grew 13.7% year over year while Elektron Division posted 15.3% year-over-year decline.

Talking of expenses and margins, cost of sales in the quarter represented 75.2% of total revenue, a slight increase from 74.9% reported in the year-ago quarter. Operating margin in the quarter was 12.3%, down 190 basis points, year over year.

For fiscal 2013, management of Luxfer Holdings anticipates trading profit to be $60.5 million-$63.5 million in 2013, down $5.0 million-$8.0 million from 2012 results. Weak results are anticipated from European automotive and the U.S. defense markets in the quarters to come.

In the last 7 days, the Zacks Consensus Estimate for Luxfer Holdings has gone down by 10.1% to $1.51 for 2013 and has declined 9.2% to $1.78 for 2014. Also, we have an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of -6.6% and -2.8% for 2013 and 2014, respectively.

Other Stocks to Consider

Luxfer Holdings currently has a market capitalization of $460 million and operates in the diversified machinery industry. Other stocks to watch out for in the industry are Gorman-Rupp Co. (GRC - Snapshot Report) and Graham Corp. (GHM - Snapshot Report), each with a Zacks Rank #1 (Strong Buy) while Barnes Group Inc. (B - Snapshot Report) carries a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%