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Barnes Group (B) Withdraws Guidance on Coronavirus Concerns

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Barnes Group, Inc. (B - Free Report) has withdrawn its earlier announced guidance for 2020 on end-market uncertainties due to the coronavirus pandemic.

Also, the company announced that its commercial activities have been continuing at reduced levels due to the pandemic. However, it remains committed to protect the safety, health and well-being of employees, customers, and partners amid the crisis.

Guidance Withdrawn

On the fourth-quarter 2019 conference call held in February, Barnes Group had anticipated adjusted earnings of $3.12-$3.32 per share for 2020.

For the year, the company had expected organic sales growth of 1-3%, while operating margin was estimated to be 16-17%. Also, the company’s capital expenditure was projected to be $60 million.

However, on uncertainties regarding the impacts of the outbreak on financial and operating results, the company has now withdrawn its guidance for 2020. Notably, the duration of the coronavirus pandemic, its geographic spread and the impacts of the governmental regulations imposed in response to the crisis will likely have a bearing on Barnes Group’s results.

Bottom Line

The COVID-19 pandemic has dealt a further blow to the manufacturing sector, which was already reeling under the U.S.-China trade tensions and weak global demand. Factory closures across the globe, supply-chain disruptions, low demand for goods and the impacts of the restrictions imposed by several governments, among others, have affected the sector.

Zacks Rank, Price Performance and Estimate Trend

Barnes Group, with a $1.8-billion market capitalization, currently carries a Zacks Rank #4 (Sell).

Over the past three months, the company’s share price has decreased 44% compared with the industry’s decline of 29.5%.

 


 

In the past 30 days, the Zacks Consensus Estimate for its earnings has been lowered by 8.5% to $2.89 for 2020 and by 4.5% to $3.37 for 2021.

Stocks to Consider

Some better-ranked stocks from the same space are Tennant Company (TNC - Free Report) Broadwind Energy, Inc. (BWEN - Free Report) and EnPro Industries (NPO - Free Report) . While Tennant currently sports a Zacks Rank #1 (Strong Buy), Broadwind Energy and EnPro carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Tennant delivered a positive earnings surprise of 26.60%, on average, in the trailing four quarters.

Broadwind Energy delivered a positive earnings surprise of 10.42%, on average, in the trailing four quarters.

EnPro delivered a positive earnings surprise of 1.98%, on average, in the trailing four quarters.

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EnPro Industries (NPO) - free report >>

Barnes Group, Inc. (B) - free report >>

Tennant Company (TNC) - free report >>

Broadwind Energy, Inc. (BWEN) - free report >>