Global Hunter Securities Reiterates an 'Accumulate' on Encore Wire (WIRE); Cutting PT on Q1 Miss
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Price: $289.84 --0%
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 36
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 36
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Global Hunter Securities reiterates an 'Accumulate' on Encore Wire (NASDAQ: WIRE) price target lowered from $36 to $31.
Analyst, Dmitriy Shapiro, said, "WIRE reported disappointing Q1 results, primarily the result of a non-cash LIFO adjustment with some contribution from spread contraction. The company reported Q1 EPS of $0.29 vs. our $0.60 estimate; excluding the $17.2MM LIFO adjustment recognized in Q1, WIRE would have reported a gross profit of $41.7MM, ahead of our estimate of $35.7MM. Due to the fact that the majority of the miss in Q1 was attributable to this LIFO adjustment, we have made only minor adjustments to our forward looking estimates and now expect the company to generate 2012 revenues and EPS of $1.2 billion and $1.80, compared to our prior estimates of $1.22 billion and $2.17, respectively."
Shapiro says the company is still strategically sound and it's balance sheet remains strong.
For an analyst ratings summary and ratings history on Encore Wire click here. For more ratings news on Encore Wire click here.
Shares of Encore Wire closed at $25.49 yesterday.
Analyst, Dmitriy Shapiro, said, "WIRE reported disappointing Q1 results, primarily the result of a non-cash LIFO adjustment with some contribution from spread contraction. The company reported Q1 EPS of $0.29 vs. our $0.60 estimate; excluding the $17.2MM LIFO adjustment recognized in Q1, WIRE would have reported a gross profit of $41.7MM, ahead of our estimate of $35.7MM. Due to the fact that the majority of the miss in Q1 was attributable to this LIFO adjustment, we have made only minor adjustments to our forward looking estimates and now expect the company to generate 2012 revenues and EPS of $1.2 billion and $1.80, compared to our prior estimates of $1.22 billion and $2.17, respectively."
Shapiro says the company is still strategically sound and it's balance sheet remains strong.
For an analyst ratings summary and ratings history on Encore Wire click here. For more ratings news on Encore Wire click here.
Shares of Encore Wire closed at $25.49 yesterday.
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