L.B. Foster (FSTR) Stock Surges 42% in 3 Months: Here's Why
L.B. Foster Company FSTR shares have rallied 41.6% over the past three months. The rally has resulted in the stock outperforming its industry’s rise of 23.2% over the same time frame. The company also topped the S&P 500’s roughly 5.7% rise over the same period.
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Let’s take a look at the factors that are driving this Zacks Rank #2 (Buy) stock.
What’s Going in L.B. Foster’s Favor?
FSTR’s second-quarter results outperformed expectations. Earnings of 32 cents per share increased significantly from the previous year's 18 cents and surpassed the Zacks Consensus Estimate of 28 cents. Revenues also exhibited strong growth, rising 12.5% year over year to $148 million and beating the consensus estimate $140.7 million.
Impressively, new orders for the quarter reached $183.7 million, reflecting a substantial 30% year-over-year increase. This remarkable performance is attributed to heightened demand, increased prices, a positive product mix and ongoing transformation initiatives. As a result, FSTR has revised its 2023 financial outlook. It now projects adjusted EBITDA in the range of $28 million to $32 million, up from the initial guidance of $27 million to $31 million.
Rail, Technologies, and Services segment saw a 12% year-over-year increase in sales to $91.6 million in the second quarter. The Precast Concrete Products Segment reported $33.9 million in sales, marking a substantial 43.4% year-over-year increase, with 12.8% organic growth and 30.6% contribution from the acquisition of VanHooseCo Precast, LLC.
For full-year 2023, the Zacks Consensus Estimate for earnings currently stands at 53 cents per share, reflecting a staggering year-over-year growth of 112.5%. For 2024, earnings are anticipated to experience an impressive 117% growth.
Also, FSTR has consistently surpassed the Zacks Consensus Estimate in each of the past four quarters, with a remarkable trailing four-quarter average earnings surprise of 134.5%.
L.B. Foster Company Price and Consensus
L.B. Foster Company price-consensus-chart | L.B. Foster Company Quote
Zacks Rank & Other Key Picks
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS and The Andersons, Inc. ANDE, both sporting a Zacks Rank #1 (Strong Buy), and Livent Corporation LTHM, carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for Carpenter Technology’s current year is pegged at $3.36, indicating year-over-year growth of 194%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 50.6% in the past year.
The Zacks Consensus Estimate for Andersons’ current-year earnings has been revised 21.8% upward in the past 60 days. ANDE beat the Zacks Consensus Estimate in the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. The company’s shares have risen roughly 27.8% in the past year.
The consensus estimate for Livent’s current-year earnings is pegged at $2.12, indicating year-over-year growth of 51.4%. In the past 60 days, LTHM’s current-year earnings estimate has been revised upward by 3.4%. LTHM beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 19%.
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L.B. Foster Company (FSTR) : Free Stock Analysis Report
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