After reporting weak year-over-year results for first-quarter 2015, Luxfer Holdings PLC LXFR has brought in good news for its shareholders. Effective Jun 4, 2015, the company will commence repurchase of $10 million worth American Depositary Shares (“ADS”).
As disclosed, the ADS buyback program, approved by Luxfer Holdings’ board of directors, will continue for the next 12 months. The repurchase activity will satisfy the company’s obligations under its employee shares programs. Exiting first-quarter 2015, the company had approximately 27.3 million ADS, reflecting a decline of 2.8% from 28.1 million ADS in the year-ago comparable quarter. Each ADS of the company represents £0.50 of ordinary shares.
This buyback program will boost Luxfer Holdings’ earnings per ADS and might provide some support to its share price against the recent downturns. In addition, improved results in the Elektron division for 2015 will likely help the company’s profitability. Luxfer Holdings expects full-year contribution from Luxfer Magtech as well as increased demand for military powders.
Over the last 30 days, the Zacks Consensus Estimate for Luxfer Holdings has increased 1.8% to $1.13 for 2015, while the same stood stable at $1.40 for 2016. These estimates represent year-over-year growth of 5.6% for 2015 and 23.9% for 2016. For second-quarter 2015, the Estimate is pegged at 27 cents per share, up 12.5% year over year.
With a market capitalization of $348 million, Luxfer Holdings currently carries a Zacks Rank #2 (Buy). Other well-ranked stocks in the machinery industry include EnPro Industries, Inc. NPO, The Middleby Corp. MIDD and Omnitek Engineering Corp. OMTK, carrying the same Zacks Rank as Luxfer Holdings.
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