Zacks Investment Research downgraded shares of Colfax Corporation (CFX) from OUTPERFORM to NEUTRAL on November 21, 2013, with a target price of $60.00.
Colfax's earnings per share increased 70% year over year to $0.56 in the third quarter 2013 and also surpassed the Zacks Consensus Estimate of $0.53. Revenue grew 6% on the back of gains from existing businesses and acquisitions, offset partially by negative currency translation impact. Backlogs were strong while orders were up 20%. Adjusted operating margin expanded 220 basis points to 11.1%. For the fourth quarter, management anticipates organic revenue growth in the mid-to-high digit level for Gas and Fluid Handling segment but flat-to-down for Fabrication Technology. Earnings per share guidance for 2013 have been lowered to $1.98-$2.03 range versus $1.95-$2.10 expected earlier. Considering the above, we downgrade our recommendation on Colfax from Outperform to Neutral. Besides the financial results, we believe acquisitions will play a key role going forward. The addition of CKD Kompresory a.s. and Global Infrastructure and Industry business will strengthen the company's Howden line of business.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Colfax Corporation (CFX),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment