Sun Hydraulics Lags Q1 Earnings, Revenue Estimates - Analyst Blog
Resource from: Zacks Equity Research Likes:164
May 06,2015
Sun Hydraulics Corporation SNHY reported lower-than-expected earnings for first-quarter 2015. The company’s earnings of 39 cents per share came in below the Zacks Consensus Estimate of 41 cents. Also, the bottom line decreased 9% from the year-ago tally of 43 cents.
Sun Hydraulics generated net sales of $54.4 million in first-quarter 2015, down 4.3% year over year and marginally below the Zacks Consensus Estimate of $55 million.
The year-over-year decline was due to a 9% fall in both the European and Asian sales, partially offset by 1% gain in North America. Also, adverse impact of foreign currency movements lowered revenues by $1.5 million.
Margins
Sun Hydraulics’ cost of sales inched up 0.8% year over year, representing 60.7% of total revenue as against 57.6% in the year-ago quarter. Gross margin declined 310 basis points (bps) year over year to 39.3%. Selling, engineering and administrative (SG&A) expenses, as a percentage of revenues, stood at 13.4% versus 12.9% recorded in the year-ago quarter.
Operating income declined 15.7% year over year to $14.1 million; while margin came in at 25.9% versus 29.4% in the year-ago comparable quarter.
Balance Sheet and Cash Flow
Exiting first-quarter 2015, Sun Hydraulics had cash and cash equivalents of $62.4 million, up compared with $56.8 million in the preceding quarter.
In the quarter, the company generated cash of $14 million from its operating activities, up from $10.1 million in the year-ago comparable quarter. Capital spending dropped 31.9% year over year to $1.3 million.
Sun Hydraulics paid dividends of approximately $2.4 million to its shareholders in the quarter.
Outlook: Sun Hydraulics anticipates difficult operating conditions to persist in the second quarter as well. Revenues are predicted at roughly $54 million, down 12% year over year and 2% sequentially. Earnings are expected within 34−36 cents per share, lower than 46 cents earned in the year-ago quarter.
Unfavorable foreign currency movements will likely impact revenues by $2.4 million and earnings by 6 cents per share.
With a market capitalization of $1 billion, Sun Hydraulics currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include RBC Bearings Inc. ROLL, II-VI Inc. IIVI and Capstone Turbine Corp. CPST. While both RBC Bearings and II-VI sport a Zacks Rank #1 (Strong Buy), Capstone Turbine carries a Zacks Rank #2 (Buy).
(Zacks Equity Research)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
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