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Raven Industries Inc. Message Board

  • steve_382n steve_382n Jan 7, 2013 5:36 PM Flag

    Zacks Strong Sell on Raven

    This seems a little extreme. The numbers may be right for the next couple of quarters, but we are still looking at record revenues and record earnings. Makes me want to reach for the checkbook and add a little more. At times, Zacks is a good contrary indicator.

    On January 4, Zacks Investment Research downgraded Raven Industries Inc. (RAVN) to a Zacks #5 Rank (Strong Sell).

    Why the Downgrade?

    Raven Industries has witnessed sharp downward estimate revisions and hit its 52-week low after reporting disappointing results for third-quarter 2012 on November 20. Shares of this industrial manufacturer of products for the agricultural, industrial, construction and military/aerospace markets have dipped to the $20 range since August (post-second quarter results) from the prior $30 range.

    Raven’s third-quarter earnings per share of 30 cents missed the Zacks Consensus Estimate of 34 cents. On a year-over-year basis, earnings dipped 3%.

    Raven’s Aerostar will continue to be impacted by a lack of aerostat orders and the Engineered Films segment will also likely face a challenging environment and tough year-over-year comparison. Furthermore, given the company's performance so far in 2012 and expectations of a difficult fourth-quarter, the long-term earnings growth target of 10-15% seems unlikely in the current year.

    The Zacks Consensus Estimate for 2012 decreased 4% to $1.45 per share over the last 60 days. For 2013, the estimate was revised downward over the last 60 days, sinking the Zacks Consensus Estimate by 5% to $1.60 per share.

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21.65-0.20(-0.92%)Oct 20 4:00 PMEDT