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Raven (RAVN) Q2 Earnings Top Estimates, Outlook Encouraging
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Raven Industries, Inc. reported better-than-expected results for second-quarter fiscal 2019 (ended July 2018).
Earnings/Revenues
Quarterly adjusted earnings came in at 40 cents per share, higher than 23 cents recorded in the year-ago quarter. Also, the bottom line surpassed the Zacks Consensus Estimate of 34 cents. This upside stemmed from strong profitability secured from all of the company’s business divisions and lower corporate taxes.
Net sales in the reported quarter came in at $102.7 million, up 18.6% year over year, driven by solid segmental performances. The acquisition of Colorado Lining International, Inc. (CLI) (September 2017) boosted quarterly revenues by $10.3 million.
Segmental Break-Up
Revenues in the Applied Technology segment came in at $30.4 million, up 6.8% year over year, primarily aided by robust new product sales.
Engineered Films’ top-line performance improved 20.1%, year over year, to $58.9 million. This upswing was largely supported by stronger CLI revenues.
Aerostar revenues in the reported quarter came in at $13.5 million, surging 44.3% year over year. The improvement came on the back of stellar sales volume secured from Aerostar's stratospheric balloon platform.
Raven Industries, Inc. Price, Consensus and EPS Surprise
Cost of sales in the reported quarter was $68.1 million, up 13.3% year over year. Gross profit margin expanded 310 basis points (bps) to 33.7%.
Selling, general and, administrative expenses in the fiscal second quarter totaled $11.8 million, higher than the $10.6 million reported in the year-earlier quarter. Operating margin in the reported quarter was 16.2%, up 270 basis points year over year.
Balance Sheet/Cash Flow
Exiting the fiscal second quarter, Raven Industries has cash and cash equivalents of $65.4 million, higher than $40.5 recorded as of Jan 31, 2018. Notably, the company’s cash and cash equivalents increased $14.1 million from the preceding quarter, aided by a robust top-line performance and improved profitability.
In first-half fiscal 2019, the company provided $38.7 million cash from operating activities, up from $19.9 million witnessed in the prior-year quarter. Capital expenditures summed $6.9 million, up from $5.2 million posted in the comparable period last fiscal.
Outlook
Raven Industries believes impressive end-market demand will continue to drive its revenues and profitability in the upcoming quarters. Continued efforts made on product-portfolio solidification, as well as construction of new production facilities will likely be conducive to this Zacks Rank #3 (Hold) company’s near-term performance.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Carlisle Companies Incorporated (CSL - Free Report) holds a Zacks Rank #2 (Buy). The company came up with an average positive earnings surprise of 12.85%, over the trailing four quarters.
Crane Company (CR - Free Report) also carries a Zacks Rank of 2. The company generated an average positive earnings surprise of 3.03% during the same time frame.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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Raven (RAVN) Q2 Earnings Top Estimates, Outlook Encouraging
Raven Industries, Inc. reported better-than-expected results for second-quarter fiscal 2019 (ended July 2018).
Earnings/Revenues
Quarterly adjusted earnings came in at 40 cents per share, higher than 23 cents recorded in the year-ago quarter. Also, the bottom line surpassed the Zacks Consensus Estimate of 34 cents. This upside stemmed from strong profitability secured from all of the company’s business divisions and lower corporate taxes.
Net sales in the reported quarter came in at $102.7 million, up 18.6% year over year, driven by solid segmental performances. The acquisition of Colorado Lining International, Inc. (CLI) (September 2017) boosted quarterly revenues by $10.3 million.
Segmental Break-Up
Revenues in the Applied Technology segment came in at $30.4 million, up 6.8% year over year, primarily aided by robust new product sales.
Engineered Films’ top-line performance improved 20.1%, year over year, to $58.9 million. This upswing was largely supported by stronger CLI revenues.
Aerostar revenues in the reported quarter came in at $13.5 million, surging 44.3% year over year. The improvement came on the back of stellar sales volume secured from Aerostar's stratospheric balloon platform.
Raven Industries, Inc. Price, Consensus and EPS Surprise
Raven Industries, Inc. Price, Consensus and EPS Surprise | Raven Industries, Inc. Quote
Cost/Margins
Cost of sales in the reported quarter was $68.1 million, up 13.3% year over year. Gross profit margin expanded 310 basis points (bps) to 33.7%.
Selling, general and, administrative expenses in the fiscal second quarter totaled $11.8 million, higher than the $10.6 million reported in the year-earlier quarter. Operating margin in the reported quarter was 16.2%, up 270 basis points year over year.
Balance Sheet/Cash Flow
Exiting the fiscal second quarter, Raven Industries has cash and cash equivalents of $65.4 million, higher than $40.5 recorded as of Jan 31, 2018. Notably, the company’s cash and cash equivalents increased $14.1 million from the preceding quarter, aided by a robust top-line performance and improved profitability.
In first-half fiscal 2019, the company provided $38.7 million cash from operating activities, up from $19.9 million witnessed in the prior-year quarter. Capital expenditures summed $6.9 million, up from $5.2 million posted in the comparable period last fiscal.
Outlook
Raven Industries believes impressive end-market demand will continue to drive its revenues and profitability in the upcoming quarters. Continued efforts made on product-portfolio solidification, as well as construction of new production facilities will likely be conducive to this Zacks Rank #3 (Hold) company’s near-term performance.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Federal Signal Corporation (FSS - Free Report) sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 22.48%, over the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carlisle Companies Incorporated (CSL - Free Report) holds a Zacks Rank #2 (Buy). The company came up with an average positive earnings surprise of 12.85%, over the trailing four quarters.
Crane Company (CR - Free Report) also carries a Zacks Rank of 2. The company generated an average positive earnings surprise of 3.03% during the same time frame.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>