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Analyst Blog

Shares of EnPro Industries, Inc. (NPO - Snapshot Report) touched a new 52-week high of $60.56 during its trading session on Sep 26. This represents an increase of 0.3% over its previous high of $60.37 on Sep 19.  

EnPro Industries closed the trading day on Sep 26 at $60.35, reflecting a solid year-to-date return of 67.9%. The trading volume for the session was 0.3 million shares. We believe that this Zacks Rank #1 (Strong Buy) industrial equipment and component maker has the potential to experience further upsides, reflected by the upward revision in earnings estimates over the past 60 days and the expected long-term earnings growth rate of 15.0%.

Growth Drivers

Results for the second quarter 2013 of EnPro Industries were impressive and positive reaction to the results led to positive revision in earnings estimates since Aug 1, 2013. Share price since then have grown by 2.2%.

Adjusted earnings per share reported were 87 cents, up 14.5% compared to year-ago earnings and 26.1% above the Zacks Consensus Estimate of 69 cents. Revenue in the quarter increased 1.4% on the back of healthy growth at its Engine Products and Services segment. Revenue results for Sealing Products and Engineered Products were flat year over year.

EnPro Industries’ segment operating income grew 14% in the quarter while margins came in at 14.0% as compared with 12.4% in the year-ago quarter.

Also, EnPro Industries managed to beat estimates in three out of four trailing quarters with an average positive earnings surprise of 49.4%. This, along with impressive results in the second quarter, has raised optimism for better performance ahead.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for EnPro Industries increased by 2.8% to $2.90 per share for 2013 and by 4.7% to $3.35 for 2014.

EnPro Industries is a $1.3 billion company. Other stocks to watch out for in the industry are Gorman-Rupp Co. (GRC - Snapshot Report), DXP Enterprises, Inc. and Altra Holdings, Inc. (AIMC - Snapshot Report), each with a Zacks Rank #2 (Buy).

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