Raven Industries, Inc. (RAVN - Free Report) recently announced that it has entered into a licensing agreement with Topcon Agriculture. Per the deal, Raven’s Slingshot Application Programming Interface (API) will be used in in Topcon Agriculture’s several software platforms.
As a software-to-software interface, the Slingshot API offers a simple way for one software system to communicate with another. Notably, it will enable Topcon Agriculture to deliver data through a wireless connection in the field with compatible Raven hardware. Also, the Slingshot API will allow the customers to access the required tools and data.
Raven expects that elevated sales volumes,favorable product mix, lower engineering product costs, ongoing pricing actions and reduced taxes will continue to drive its bottom-line performance. Additionally, investment made in Project Atlas is expected to improve the company’s overall operational efficacy in the near term.
In the past three months, shares of this Zacks Rank #3 (Hold) company have rallied nearly 21.5%, significantly outperforming the 0.7% growth recorded by the industry.
The company invests roughly $25 million annually in different research & development activities. Investments made to introduce new machine control autonomous solutions and next-generation boom-leveling technology will likely strengthen its Applied Technology segment. Expenses made over stratospheric balloon and radar platform business platforms will likely fortify the Aerostar segment. We believe these moves will help boost Raven’s aggregate revenues and profitability in the quarters ahead.
However, weak agricultural product prices are currently weighing on Raven’s Applied Technology segment revenues. This apart, rising cost of sales remains a major cause of concern for the company.
Stocks to Consider
Some better-ranked stocks in the same space are Federal Signal Corporation (FSS - Free Report) , Crane Company (CR - Free Report) and Carlisle Companies Incorporated (CSL - Free Report) . While Federal Signal sports a Zacks Rank #1 (Strong Buy), Crane Company and Carlisle Companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federal Signal outpaced estimates in each of the trailing four quarters with an average positive earnings surprise of 22.48%.
Crane Company surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 3.03%.
Carlisle Companies outpaced estimates in each of the trailing four quarters with an average positive earnings surprise of 12.85%.
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