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Nordson Corporation (NDSN) - free report >>
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Standex International Now a Strong Sell on Weak Prospects
Zacks Investment Research downgraded Standex International Corporation (SXI - Free Report) to a Zacks Rank #5 (Strong Sell) on Sep 6, 2016. Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of underperforming the broader market.
Why the Downgrade?
Standex International Corporation’s financial performance has been weak with lower-than-expected results in three out of the four trailing quarters. Average earnings surprise was a negative 1.93%.
Last quarter, Standex International Corporation’s earnings of $1.31 per share was 5.07% below the Zacks Consensus Estimate of $1.38. Revenues generated in the quarter declined 3% year over year due to a 3.7% fall in organic sales and 0.5% unfavorable forex impact, partially offset by 1.5% gain from acquisitions.
In fiscal 2017 (Jun 2016 to Jun 2017), Standex International Corporation expects to face difficult operating conditions in its Refrigeration business for two quarters due to lower spending from small footprint retail customers and large national chains. The company accounts the results of this business under its Food Service Equipment segment.
Investors seem to be skeptical about Standex International Corporation’s future prospects, as evident from downward revisions in earnings estimates for the stock. Over the last 30 days, the Zacks Consensus Estimate for the company decreased 5.8% to $5.01 per share for fiscal 2017, while the same is pegged at $1.23 for first-quarter fiscal 2017 and $5.47 for fiscal 2018.
STANDEX INTL CO Price and Consensus
STANDEX INTL CO Price and Consensus | STANDEX INTL CO Quote
Stocks to Consider
Standex International Corporation has a market capitalization of $1.1 billion. Some better-ranked stocks in the machinery industry include DXP Enterprises, Inc. (DXPE - Free Report) , Gorman-Rupp Co. (GRC - Free Report) and Nordson Corporation (NDSN - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
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