Needham & Company Reaffirms a 'Buy' on Ceradyne (CRDN); Mixed Results & Guidance; Higher Tax Rate Will Be Earnings Drag In 2012
Tweet
Share
E-mailGet Alerts CRDN Hot Sheet
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
Join SI Premium – FREE
Needham & Company reaffirms a 'Buy' on Ceradyne (NASDAQ: CRDN) price target raised $4 to $38.
Analyst, James Ricciuti, said, "CRDN reported Q4 results that were above our Street-low expectations, though below consensus. Similarly, mgmt guided higher than we were expecting on revenues, although consensus EPS expectations for 2012 are likely to be revised downward due to lower gross margins and a higher tax rate. CRDN expects revenues to be up 3-9% in 2012, above our conservative estimate, which we revised in early Jan., with ongoing strength in defense and industrial likely to offset sharply lower revenues from the solar market. While CRDN is keeping a tight rein on operating expense, mix and under-absorption of its solar-related ceramic crucible facility in China are likely to drive gross margins lower in 2012. With over $7/share of net cash, CRDN has taken another step to increase shareholder value by initiating a $0.15 quarterly dividend, which, together with a $100M share repurchase program, provides good support to the stock at current levels. CRDN shares offer solid value, measured off our 2012/2013 EPS estimates."
"We’re reducing our 2012 EPS est. to $2.40 from $2.48 as higher rev. of $605M (+6% vs. -7% previously) offset by lower gross margins, higher tax rate. We are initiating a 2013 EPS est. of $3.15."
For an analyst ratings summary and ratings history on Ceradyne click here. For more ratings news on Ceradyne click here.
Shares of Ceradyne closed at $31.90 yesterday.
Analyst, James Ricciuti, said, "CRDN reported Q4 results that were above our Street-low expectations, though below consensus. Similarly, mgmt guided higher than we were expecting on revenues, although consensus EPS expectations for 2012 are likely to be revised downward due to lower gross margins and a higher tax rate. CRDN expects revenues to be up 3-9% in 2012, above our conservative estimate, which we revised in early Jan., with ongoing strength in defense and industrial likely to offset sharply lower revenues from the solar market. While CRDN is keeping a tight rein on operating expense, mix and under-absorption of its solar-related ceramic crucible facility in China are likely to drive gross margins lower in 2012. With over $7/share of net cash, CRDN has taken another step to increase shareholder value by initiating a $0.15 quarterly dividend, which, together with a $100M share repurchase program, provides good support to the stock at current levels. CRDN shares offer solid value, measured off our 2012/2013 EPS estimates."
"We’re reducing our 2012 EPS est. to $2.40 from $2.48 as higher rev. of $605M (+6% vs. -7% previously) offset by lower gross margins, higher tax rate. We are initiating a 2013 EPS est. of $3.15."
For an analyst ratings summary and ratings history on Ceradyne click here. For more ratings news on Ceradyne click here.
Shares of Ceradyne closed at $31.90 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
- Deere (DE) PT Lowered to $570 at JPMorgan Ahead of Earnings
- New Street Research Upgrades Micron Technology (MU) to Buy
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Needham & Company, Dividend, Stock Buyback, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
