Benchmark Comments on Ceradyne (CRDN), Anticipates a Q2 Upside
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Price: $35.00 --0%
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 23 | New: 12
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 23 | New: 12
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Benchmark is maintaining its Buy rating and $56 price target on shares of Ceradyne (NASDAQ: CRDN) even though the company's price has fallen 32 percent from its 52-week high. anticipates
The firm blames the pull back on concerns about earnings contraction next year from a potential sell off in defense and solar market.
On the company's last earnings call, it raised FY11 sales guidance by $54 million to $570-$600 million and its EPS estimate by $1.00 to $3.10-$3.50 due to the $35 million X-SAPI body armor received in late March. As a result the Street's estimates raised to $592 million in sales and EPS of $3.48. FY12 consensus sales and EPS estimates are $610 million and $3.36.
Benchmark forecasts that body armor sales will be around $170 million for the year, up $100 million from last years $70 million in sales. The firm believes that CRDN has a solid chance at winning the E-SAPI body armor sustainment contract in August and the Enhanced Combat Helmet contract.
The company began seeing in its solar market a slowdown in May due to inventory build downstream. Benchmark comments, "We expect Europe to remain important in the coming years, but expect China, the U.S., and emerging markets to accelerate and drive long-term double digit growth."
The firm believes that CRDN will report better than expected results for Q2 driven by strong body armor delivery and a continued industrial recovery.
For more ratings news on Ceradyne click here and for the rating history of Ceradyne click here.
Shares of Ceradyne closed at $37.42 yesterday.
The firm blames the pull back on concerns about earnings contraction next year from a potential sell off in defense and solar market.
On the company's last earnings call, it raised FY11 sales guidance by $54 million to $570-$600 million and its EPS estimate by $1.00 to $3.10-$3.50 due to the $35 million X-SAPI body armor received in late March. As a result the Street's estimates raised to $592 million in sales and EPS of $3.48. FY12 consensus sales and EPS estimates are $610 million and $3.36.
Benchmark forecasts that body armor sales will be around $170 million for the year, up $100 million from last years $70 million in sales. The firm believes that CRDN has a solid chance at winning the E-SAPI body armor sustainment contract in August and the Enhanced Combat Helmet contract.
The company began seeing in its solar market a slowdown in May due to inventory build downstream. Benchmark comments, "We expect Europe to remain important in the coming years, but expect China, the U.S., and emerging markets to accelerate and drive long-term double digit growth."
The firm believes that CRDN will report better than expected results for Q2 driven by strong body armor delivery and a continued industrial recovery.
For more ratings news on Ceradyne click here and for the rating history of Ceradyne click here.
Shares of Ceradyne closed at $37.42 yesterday.
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