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EnPro (NPO) Enters Into Divestment Deal With Hendrickson

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EnPro Industries, Inc. (NPO - Free Report) on Aug 14, announced that it entered a deal with Hendrickson USA, LLC, for the divestment of all assets associated with the STEMCO Motor Wheel brake drum and Crewson brake adjuster brands (“business”). The aforementioned deal, which is expected to be completed in the third quarter of this year, is conditioned on certain regulatory procedures.

It is worth mentioning that EnPro logged $11.1 million of restructuring and impairment charges, relating to its decision of exiting the business, in the second quarter. Following the completion of the deal, the company expects to reverse cash restructuring charges worth $3.7 million it recorded during the second quarter.

The company focuses on restructuring its business portfolio and concentrating more on its core businesses. Notably, the deal is in sync with this strategy and will also allow it to enhance its shareholders’ wealth.

The company’s shares gained 0.8% on Friday to eventually close at $58.77.

EnPro Industries Price and Consensus

 

EnPro Industries Price and Consensus

EnPro Industries price-consensus-chart | EnPro Industries Quote

Zacks Rank, Estimates and Price Performance

The company, with a $1.2-billion market capitalization, currently sports a Zacks Rank #1 (Strong Buy).

In the past 30 days, earnings estimates for EnPro have been improved. The Zacks Consensus Estimate for its earnings is pegged at $1.46 for 2020 and $2.11 for 2021, suggesting growth of 33.9% and 8.2% from the respective 30-day-ago figures.

The company’s shares have gained 30.4% compared with 23.1% growth recorded by the industry in the past three months.

 

 

Other Key Picks

Some other top-ranked stocks from the same space are Chart Industries, Inc. (GTLS - Free Report) , Altra Industrial Motion Corp. and Graco Inc. (GGG - Free Report) . While Chart Industries sports a Zacks Rank #1 (Strong Buy), Altra Industrial and Graco carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chart Industries delivered an earnings surprise of 10.17%, on average, in the trailing four quarters.

Altra Industrial delivered an earnings surprise of 31.43%, on average, in the trailing four quarters.

Graco delivered an earnings surprise of 8.68%, on average, in the trailing four quarters.

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