Earnings Preview: Raven Industries - Analyst Blog
2012年11月20日 - 2:37AM
Zacks
Raven Industries Inc. (RAVN) is scheduled
to announce its third quarter fiscal 2013 results on November 20,
2012. The current Zacks Consensus Estimate for the quarter is 34
cents, projecting a year-over-year growth of 10%. The Zacks
Consensus Revenue Estimate is $102 million for the quarter under
discussion.
With respect to earnings surprise, Raven has outperformed the
Zacks Consensus Estimate in three of the last four quarters. The
average earnings surprise was 9.13%, implying that the company has
surpassed the Zacks Consensus Estimate by the same magnitude over
the same period.
Previous Quarter Recap
Raven Industries’ second quarter 2013 earnings per share
decreased 3% year over year to 32 cents per share, falling short of
the Zacks Consensus Estimate of 38 cents. Results were affected by
continued volatility in the Aerostar segment.
Revenues in the quarter were $101.7 million, up 13% from the
year-ago period. Revenues marginally missed the Zacks Consensus
Estimate of $102 million. The year-over-year upside in sales was
attributable to the double-digit growth across all segments.
Estimate Revision Trend
For the third quarter as well as fiscal 2012, there has been
no movement in estimates over the 30 days as well as in the past 7
days. The lack of movement suggests that the analysts do not expect
any major catalyst driving the quarter’s results.
Magnitude of Estimate Revisions
The consensus earnings estimate for the third quarter of
fiscal 2012 has remained at 34 cents over the past 90 days. For
fiscal 2013, the estimate has gone down by 6 cents to $1.51
following the second quarter results. The estimate has remained at
$1.51 since then.
Our View
In the last quarter, sales and operating income in Raven’s
Engineered Films segment were record high, driven by high demand
for the geo membrane films. Demand for geo membrane films, meant
for environmental protection, is on the rise as customers are keen
on protecting water and other environmental resources for a
sustainable future. This will provide a boost to Raven Industries’
revenues moving ahead.
Vista Research, which Raven acquired in January 2012, has high
growth potential. Vista Research has recently signed a new $6
million contract with the U.S. government to support and further
explore the applications of its radar technology. Moreover, the
company is also focusing on increasing the customer base of Vista
both in the domestic and international markets.
In addition, Raven aims at enhancing its product portfolio to
increase its market share in the industry. The company introduced
many new products in the applied technologies segment and has
decided to further invest in product development in this segment in
fiscal 2013 to meet the increasing demand of its customers.
On the flipside, increased capital spending will put pressure
on margins moving forward. Moreover, R&D expenses in the
Applied Technology and Aerostar division are also projected to
increase. But its margins would remain constrained due to drought
conditions in the U.S. The company currently retains a Zacks #3
Rank (short-term Hold rating).
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 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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