Colfax (CFX) Gains From Buyouts, High Costs Remain A Drag
Zacks Investment Research | Dec 16, 2018 08:55PM ET
We have issued an updated research report on Colfax Corporation (NYSE:CFX) on Oct 9.
This machinery company currently carries a Zacks Rank #3 (Hold). Its market capitalization is approximately $2.5 billion.
A few growth drivers and certain headwinds, which might influence Colfax, have been discussed below.
Factors Favoring Colfax
Impressive Results & Solid Outlook: Over time, Colfax delivered better-than-expected results. Earnings beat of 3.85% in the third quarter of 2018 is the company’s 12th consecutive quarter of impressive results. It’s worth mentioning here that third-quarter earnings increased 17.4% year over year on the back of 3.7% growth in sales and enhanced operational excellence.
For 2018, pricing actions, restructuring initiatives, improved productivity and lower tax rates will help in boosting bottom-line results. The company anticipates earnings of $2.20-$2.30 per share, a revised view from $2.15-$2.30 mentioned earlier. At the mid-point, the latest projection reflects year-over-year growth of at least 26%.
Solid results and outlook also lifted sentiments for the sock, which is evident from positive revision in bottom-line estimates. In the past 60 days, the stock’s earnings estimates for 2018 have been raised by five brokerage firms and lowered by three. Likewise, estimates for 2019 have been raised by seven firms and lowered by two. Currently, the Zacks Consensus Estimate for earnings is pegged at $2.25 for 2018 and $2.55 for 2019. Earnings estimates for 2018 reflect no change and estimates for 2019 reflect growth of 2% from respective 60-day-ago tallies. Further, bottom-line estimates represent year-over-year growth of 29.3% for 2018 and 13.2% for 2019.
Colfax Corporation Price and Consensus
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