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Barnes (B) Declines More Than 11% in 3 Months: Here's Why

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Barnes Group Inc. (B - Free Report) has been struggling with persistent supply-chain constraints, increasing operating costs and foreign currency woes. Due to these headwinds, shares of Barnes have lost 11.2% in the past three months compared with the industry's decrease of 0.4%.

Barnes’ Industrial segment volume is dwindling due to disruption in the global automotive production caused by continued global supply constraints. The ongoing Ukraine conflict is also affecting the operations of this segment. Also, B’s Aerospace segment’s performance is hurt by COVID-related operational disturbances in the aerospace market. Supply-chain woes hurt B’s revenues in the second quarter of 2022.

B’s cost of sales in the second quarter of 2022 grew 4.7% on a year-over-year basis. In the quarter, Barnes also incurred an operating loss of $28.2 million and the operating margin decreased 2080 basis points year over year due to inflationary headwinds. Escalating costs and expenses might be detrimental to its margins and profitability in the near term.

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Barnes’ presence across diverse regions exposes it to various environmental laws and regulations in its operating countries.  Adverse foreign-currency movements had an impact of 6% on its Industrial segment’s revenues in the second quarter of 2022. Barnes expects unfavorable movements in foreign currencies to hurt sales 3% in 2022.

Zacks Rank and Stocks to Consider

Barnes currently carries a Zacks Rank #4 (Sell)

Some better-ranked companies from the  Industrial Products sector are discussed below:

RBC Bearings Incorporated presently sports a Zacks Rank #1 (Strong Buy). ROLL delivered a trailing four-quarter earnings surprise of 9.4%, on average. You can see  the complete list of today’s Zacks #1 Rank stocks.

ROLL’s earnings estimates have increased 32.7% for fiscal 2023 (ending March 2023) in the past 60 days. Its shares have gained 13.4% in the past three months.

Applied Industrial Technologies, Inc.  (AIT - Free Report) presently has a Zacks Rank of 1 and a trailing four-quarter earnings surprise of 22.8%, on average.

AIT’s earnings estimates have increased 6.7% for fiscal 2023 (ending June 2023) in the past 60 days. Its shares have inched up 3.1% in the past three months.

Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank #2 (Buy). VMI’s earnings surprise in the last four quarters was 13.7%, on average.

In the past 60 days, Valmont’s earnings estimates have increased 0.1% for 2022. The stock has rallied 11.8% in the past three months.


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