Shares of Blount International Inc. (BLT) reached a new 52-week high of $17.76 during its trading session on Dec 26. This apex improved upon the last 52-week high of $17.63 hit on Dec 24.
Blount International closed the session at $17.67, reflecting a solid year-to-date return of 22.1%. The trading volume for the session was 0.1 million shares. Earnings estimate revisions for 2014 and 2015, along with an expected earnings growth rate of 15% for the next five years, indicate further upward potential for this machinery company.
Growth Drivers
Investors’ sentiments have been positive for Blount International, following the company’s better-than-expected results for third-quarter 2014. Share price of the stock have risen nearly 13.3% since Nov 5, while earnings estimates were revised upwards.
Operating conditions for Blount International were favorable in the quarter, leading to rough increases of 6.4% and 5.8% in revenues generated from the FLAG (Forestry, Lawn, and Garden) and FRAG (Farm, Ranch, and Agriculture) segments, respectively. For 2014, the company expects strong demand in these segments.
Also, Blount International expects improving operating efficiencies to push revenues toward the high-end of $940−$950 million range. Earnings before interest, tax, depreciation and amortization (EBITDA) are likely to come within $135−$140 million.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for Blount International increased 7.2% to $1.04 for 2014 and 5.3% to $1.19 for 2015. These estimates reflect year-over-year growth of 43.8% and 15%, respectively.
With a market capitalization of $873 million, Blount International currently sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the machinery industry include The Middleby Corporation (MIDD), Sun Hydraulics Corporation (SNHY) and Barnes Group Inc. (B). While Middleby and Sun Hydraulics sport the same Zacks Rank as Blount International, Barnes Group carries a Zacks Rank #2 (Buy).
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