Raven Beats Zacks Estimates - Analyst Blog
2012年5月19日 - 1:54AM
Zacks
Raven Industries
Inc. (RAVN) reported first quarter results ended April 30,
2012, delivering earnings of $1.04 per share, increasing 21% from
the 86 cents earned in the year-ago quarter. Results reflected
strong performance in Applied Technology and Engineered Films
segments. Earnings per share comfortably surpassed the Zacks
Consensus Estimate of 89 cents per share.
Operational
Update
Sales increased 16% year over year
to $117.9 million, beating the Zacks Consensus Estimate of $112
million. The outperformance was attributable to the double-digit
sales growth in Applied Technology and Engineered Films
segments.
Cost of sales increased 12% year
over year to $77 million in the reported quarter. Selling, general
and administrative expenses increased 30% year over year to $9.3
million. Operating income increased 21% year over year to $28.4
million in the quarter.
Segmental
Performance
Applied Technology: Sales surged
29% year over year to $50.5 million in the reported quarter in this
segment. Operating income also soared 39% to $20.9 million from
$15.1 million. The performance was attributable to the strength in
domestic agricultural market. International sales also saw a strong
growth during the quarter.
Engineered Films: The segment
reported record sales of $41 million, increasing 37% year over
year. Operating income saw a whopping 122% increase year-over-year
to a record $9.2 million. The solid performance was driven by
strength in the energy and agricultural markets, and deliveries of
geomembrane films for environmental protection, that increased
demand in the first quarter. Margins benefited from an attractive
cost/price spread for raw materials, improved operating
efficiencies and plant utilization, reduced scrap and favorable
product mix.
Aerostar: Sales decreased 29% year
over year to $10.8 million in the quarter. The segment reported an
operating loss of $1.16 million compared to an operating income of
$4.06 million in the prior year quarter. A difficult federal
spending environment was responsible for the decrease in sales and
operating income. .
Electronic Systems: Sales dipped 2%
year over year to $19.1 million in the quarter. Operating income
however increased 8% to $3.7 million.
Financial
Position
Raven Industries ended the quarter
with cash and cash equivalents, including short-term investments of
$43.5 million, up from the $25.8 million at the end of January 31,
2012 and $42.6 million as of April 30, 2011. Cash flow from
operating activities during the quarter improved to $28.2 million
from $11.0 million in the year ago quarter.
Our Take
Raven will benefit from the current
strength in the agriculture market. However, quarter-to-quarter
variability for aerostat orders will remain leading to significant
fluctuations in the Aerostar Division. The company continues with
its strategy of investing significantly in the research and
development, thereby, helping to maintain the strong financial
results.
In addition, Raven has ample scope
to fund future growth and increase dividends with the support from
debt-free balance sheet and solid cash flow. The quantitative Zacks
#3 Rank (short-term Hold rating) for the company indicates no clear
directional pressure on stock over the near term.
South Dakota-based Raven Industries
Inc. is an industrial manufacturer providing a variety of products
for the agricultural, industrial, construction and
military/aerospace markets. The company operates through four
business segments: Engineered Films, Electronic Systems, Applied
Technology and Aerostar. Graco Inc. (GGG) and Spartech Corp. (SEH)
are the peers of Raven.
GRACO INC (GGG): Free Stock Analysis Report
RAVEN INDS INC (RAVN): Free Stock Analysis Report
SPARTECH CORP (SEH): Free Stock Analysis Report
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