Sun Hydraulics Corporation (SNHY) recently reported solid preliminary revenue results for fourth-quarter 2014. The news boosted market sentiments for the stock, resulting in a marginal rise of 0.80% in the company’s share price at the end of the trading session on Jan 21.
As disclosed, Sun Hydraulics’ sales in the fourth-quarter came in at $54.8 million, representing growth of 12% over the year-ago quarter. Revenues for 2014 totaled $227.7 million, an increase of 11% over 2013. The company attributed the record sales figure to benefits derived from new product introductions in 2014. Of a host of products, electronic controllers via HCT, lower pressure and flow electrically-actuated cartridge valves and a web-based integrated package design tool are worth mentioning.
In addition, Sun Hydraulics undertook measures to expand its customer base in the end markets served. The company’s largest markets, Korea and China, recorded sales growth of 9% and 11%, respectively. Also, heavy investments were made in research and development to upgrade the company’s technological capabilities. For 2015, the company aims to expand its product portfolio and penetrate deeper into Asian markets.
Sound preliminary revenue results have elevated investors’ confidence in Sun Hydraulics. The company is slated to release fourth-quarter 2014 results on Feb 23, 2015, after the market closes. The Zacks Consensus Estimate is currently pegged at 38 cents per share for fourth-quarter 2014 and at $1.64 for 2014, representing respective year-over-year growth of 18.8% and 13.1%.
With a market capitalization of $1 billion, Sun Hydraulics currently carries a Zacks Rank #3 (Hold). Better-ranked companies in the machinery industry include Graco Inc. (GGG), Kadant Inc. (KAI) and The Middleby Corporation (MIDD). While Graco sports a Zacks Rank #1 (Strong Buy), both Kadant and Middleby hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment