Benchmark Cuts Price Target on Ceradyne (CRDN) Ahead of Earnings, But Sees Slight Upside for Q3
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Price: $35.00 --0%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Benchmark is maintaining its Buy rating on shares of Ceradyne (NASDAQ: CRDN), but is lowering its price target from $56 to $40 ahead of its Q3 results.
The company is scheduled ti report its Q3 results on October 25 before the opening bell with a conference call planed for 11:00 am EDT that same day.
The firm believes that Ceradyne will meet or top expectations with with growth in all three segments. The Street is currently looking for EPS of $0.73 with $142 million in sales, while the firm estimates EPS of $0.74 with $143 million in sales. Benchmark highlights CRDN's body armor backlog of $84 million, which is roughly 5 times last years.
Benchmark continues to believe Ceradyne will benefit from foreign military sales from both body armor and combat helmets over time. An analyst at Benchmark comments, "If Ceradyne receives a helmet award before yearend, we believe it could represent $40-60+ million for next year and drive growth in defense."
The firm is cutting its FY12 EPS and revenue estimates from $633 million and $3.55 to $603 million and $3.10. The lower estimates reflect a weaker solar industry and a higher than previously anticipated tax rate.
Benchmark reports, "The company has a $7.37 in net cash per share. Ceradyne’s new $100 million share buy back, the Enhanced Combat Helmet, and better than expected market penetration of ceramic sand filters and drill bearings could drive potential upside to our numbers, but we have revised our forecast to be conservative."
For more ratings news on Ceradyne click here and for the rating history of Ceradyne click here.
Shares of Ceradyne closed at $28.32 yesterday.
The company is scheduled ti report its Q3 results on October 25 before the opening bell with a conference call planed for 11:00 am EDT that same day.
The firm believes that Ceradyne will meet or top expectations with with growth in all three segments. The Street is currently looking for EPS of $0.73 with $142 million in sales, while the firm estimates EPS of $0.74 with $143 million in sales. Benchmark highlights CRDN's body armor backlog of $84 million, which is roughly 5 times last years.
Benchmark continues to believe Ceradyne will benefit from foreign military sales from both body armor and combat helmets over time. An analyst at Benchmark comments, "If Ceradyne receives a helmet award before yearend, we believe it could represent $40-60+ million for next year and drive growth in defense."
The firm is cutting its FY12 EPS and revenue estimates from $633 million and $3.55 to $603 million and $3.10. The lower estimates reflect a weaker solar industry and a higher than previously anticipated tax rate.
Benchmark reports, "The company has a $7.37 in net cash per share. Ceradyne’s new $100 million share buy back, the Enhanced Combat Helmet, and better than expected market penetration of ceramic sand filters and drill bearings could drive potential upside to our numbers, but we have revised our forecast to be conservative."
For more ratings news on Ceradyne click here and for the rating history of Ceradyne click here.
Shares of Ceradyne closed at $28.32 yesterday.
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