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Strong Buy on Edward Group
Zacks Investment Research upgraded
Edwards Group Limited to a Zacks Rank #1 (Strong Buy) on Jun 25, 2013.
Why the Upgrade?
Edwards Group’s shares rose 6.4% since the industrial technology company reported its financial result for the first quarter of 2013 on Apr 30. Results showed remarkable improvement when compared with its sequential quarter. Adjusted net earnings, in local currency, grew 31.7% sequentially.
Revenues, in local currency, recorded an increase of 9.7% on the back of healthy performance in the company’s Semiconductor and Emerging Technology business. This increase, to some extent, offset the softness in General Vacuum and Service business
Edward Group recorded an increase of 580 basis points in gross margin that came in at 36.2%. Cost saving initiatives helped the company boost its operating margin.
Management of Edwards Group provided an encouraging outlook for the second quarter of 2013. At mid-points, revenues are expected to grow 5.8% from its sequential quarter while adjusted net income is expected to exhibit a 25% increase sequentially. Demand for semiconductors is likely to remain strong in the quarter.
The Zacks Consensus Estimate for 2013 and 2014 are 86 cents and $1.30, reflecting an increase of 16.2% and 5.7%, respectively in the last 60 days. Other Stocks to Consider
Edwards Group currently has $904 million market capitalization. Other stocks that are worth a look in the industry are Broadwind Energy, Inc. , Kadant Inc. ( KAI - Snapshot Report) and Middleby Corp. ( MIDD - Analyst Report) . All these companies carry a Zacks Rank #2 (Buy).