Zacks Investment Research downgraded Manitex International, Inc. MNTX to a Zacks Rank #5 (Strong Sell) on Mar 26, 2016. Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of underperforming the broader market over the next few quarters.
Why the Downgrade?
Manitex International failed to impress investors in 2015, with its stock losing 53.2% over the year. The company reported weaker-than-expected results in all four quarters of last year, with an average earnings surprise of negative 342.9%.
Last quarter, Manitex International incurred a loss of 11 cents per share, while the Zacks Consensus Estimate was earnings of 1 cent per share. In the year-ago quarter, the company had reported earnings of 16 cents per share. Revenue growth of 50.1% was more-than-offset by an increase in cost of sales, operating and interest expenses, and foreign currency translation losses.
Disappointing quarterly results as well as headwinds from weak energy pricing, lower demand for industrial equipment and unfavorable foreign currency movements have made investors cautious about Manitex International’s prospects. Over the last 30 days, the Zacks Consensus Estimate has fallen 60.6% to 13 cents per share for 2016 and 40.5% to 25 cents per share for 2017.
Stocks to Consider
Manitex International currently has a market capitalization of $90.3 million. Some better-ranked stocks in the machinery industry include Sun Hydraulics Corp. SNHY, Briggs & Stratton Corporation BGG and Nordson Corporation NDSN. While Sun Hydraulics sports a Zacks Rank #1 (Strong Buy), both Briggs & Stratton Corporation and Nordson Corporation carry 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 >>
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