Back to top
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
DXP Enterprises, Inc. (DXPE) - $25 value - yours FREE >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DXP Enterprises, Inc. (DXPE) - $25 value - yours FREE >>
Image: Bigstock
Sun Hydraulics Lowered to Strong Sell on Weak Q3 Prospects
Zacks Investment Research downgraded Sun Hydraulics Corp. to a Zacks Rank #5 (Strong Sell) on Aug 31, 2016. Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of underperforming the broader market.
Why the Downgrade?
Market sentiments have been weak for Sun Hydraulics, given a 1.8% fall in share price year-to-date. Also, the company’s financial performance in two out of last four quarters was weak, with an average negative earnings surprise of 0.15%. Last quarter, the company’s earnings of 26 cents per share came in line with the Zacks Consensus Estimate, while decreasing 26% year over year. Net sales were down 6% year over year to $50.8 million.
For third-quarter 2016, Sun Hydraulics anticipates its earnings per share to come in the range of 19−21 cents per share, down compared with the year-ago tally of 32 cents. Also, revenues are predicted to be $46 million, down 4% year over year. The forecasts include the adverse impacts of CEO transition costs, expenses related to growth initiatives and volume declines.
Investors seem to be skeptical about Sun Hydraulics’ future prospects, as evident from downward revisions in earnings estimates for the stock. Over the last 30 days, the Zacks Consensus Estimate for Sun Hydraulics decreased 9.5% to 95 cents per share for 2016 and by 12% to $1.10 per share for 2017.
SUN HYDRAULICS Price and Consensus
SUN HYDRAULICS Price and Consensus | SUN HYDRAULICS Quote
Stocks to Consider
Sun Hydraulics has a market capitalization of $839 million. Some better-ranked stocks in the machinery industry include DXP Enterprises, Inc. (DXPE - Free Report) , Tennant Company (TNC - Free Report) and Gorman-Rupp Co. (GRC - Free Report) . While DXP Enterprises and Tennant Company sport a Zacks Rank #1 (Strong Buy), Gorman-Rupp carries a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>