Jefferies Raises Price Target on TriMas (TRS) As Management Raises Guidance
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Jefferies is reiterating its Hold rating on shares of TriMas Corp. (NASDAQ: TRS) while raising its price target from $17 to $18.
The company released its quarterly earnings at $0.52 per share, up 40 percent year over year and above expectations. The company increased its GAAP 2011 EPS guidance at the low end by $0.05 to $1.65-$1.70. The company's 2011 guidance from continuing ops is $1.52-$1.57.
Sales were up 17 percent on the quarter as core sales rose 10 percent. Operating margin fell 50 bps over the quarter to 12.9 percent.
The firm is lowering its FY11 EPS estimate from $1.58 to $1.55 and is maintaining its FY12 estimate of $1.63. Sales for the two years is estimated to be $1.05 billion and $1.08 billion.
An analyst at Jefferies comments, "3Q earnings were strong, benefiting from core sales growth of +10% and margin expansion in most of the base businesses. We favor TRS's model of using productivity to fund sales growth and margin expansion. Earnings have rebounded strongly after a weak 2009. But our HOLD rating is based on our concern that TRS's highly competitive businesses will continue to require spending to stimulate growth, especially in an industrial economy we expect will moderate further. We expect earnings growth to slow in 2012 and consider the stock fairly valued."
For more ratings news on TriMas Corp. click here and for the rating history of TriMas Corp. click here.
Shares of TriMas Corp. closed at $20.15 yesterday, with a 52 week range of $13.46-$27.09.
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The company released its quarterly earnings at $0.52 per share, up 40 percent year over year and above expectations. The company increased its GAAP 2011 EPS guidance at the low end by $0.05 to $1.65-$1.70. The company's 2011 guidance from continuing ops is $1.52-$1.57.
Sales were up 17 percent on the quarter as core sales rose 10 percent. Operating margin fell 50 bps over the quarter to 12.9 percent.
The firm is lowering its FY11 EPS estimate from $1.58 to $1.55 and is maintaining its FY12 estimate of $1.63. Sales for the two years is estimated to be $1.05 billion and $1.08 billion.
An analyst at Jefferies comments, "3Q earnings were strong, benefiting from core sales growth of +10% and margin expansion in most of the base businesses. We favor TRS's model of using productivity to fund sales growth and margin expansion. Earnings have rebounded strongly after a weak 2009. But our HOLD rating is based on our concern that TRS's highly competitive businesses will continue to require spending to stimulate growth, especially in an industrial economy we expect will moderate further. We expect earnings growth to slow in 2012 and consider the stock fairly valued."
For more ratings news on TriMas Corp. click here and for the rating history of TriMas Corp. click here.
Shares of TriMas Corp. closed at $20.15 yesterday, with a 52 week range of $13.46-$27.09.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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