Earnings Preview: Flow International Corporation

Jun.25.12 | About: Flow International (FLOW-OLD)

Company Profile

Flow International Corporation, together with its subsidiaries, operates as a technology-based company providing waterjet cutting, surface preparation, and cleaning solutions in the United States, Europe, Asia, and internationally.

Flow (NASDAQ:FLOW-OLD) is scheduled to report its fourth quarter earnings results on June 27, 2012, after market close.

Technical Overview

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Flow has a market cap of $132.09 million and it is currently trading around $2.76 with a 52 week range of $1.90 to $4.49. The stock has fallen 21.14% year to date. The following table provides the key financial ratios for Flow:

Key Ratio Value
Current Ratio 2.02
PEG 0.82
P/E 18.4
Forward P/E 10.62
Profit Margin 2.85%
Return On Assets (ROA) 4.78%
Return On Equity (ROE) 8.62%
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Recent News

  • On May 2, 2012, Flow International announced that Parker Brothers Concepts, featured on Syfy's high-octane reality series Dream Machines, has added a Flow Mach 3 abrasive waterjet machine tool as a key element in their fabricating process.
  • On March 29, 2012, Flow International conducted live demonstrations of the latest in waterjet cutting technology at Manufacturing 4 the Future, held at the Connecticut Convention Center in Hartford, CT, May 14-16, 2012, in booth 1201.
  • On March 21, 2012, Flow International announced that John Force Racing, Inc., the most successful team in Funny Car drag racing history, has selected Flow International for their latest machine tool, a Mach 4 waterjet with Dynamic Waterjet® XD.

Analyst Guidance and Earnings History

The fourth quarter revenues are expected to be $62.63 million when compared to $59.54 million for the same quarter last year. Earnings per share for the fourth quarter are expected to be 4 cents a share, up from 1 cent a share in the year-ago period.

The average price target from analysts for Flow is $5.5 with average rating of BUY.

Out of the last 4 quarters, Flow has met or exceeded the EPS estimates 2 times. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for Flow:Click to enlarge

Competition

Kennametal Inc (NYSE:KMT), Nordson Corp (NASDAQ:NDSN), Argan Inc (NYSE:AGN) and Hardinge Inc (NASDAQ:HDNG) are considered as major competitors for Flow International Corporation. and the table below provides the key metrics for these companies:

Symbol FLOW KMT NDSN AGN HDNG
Price $2.76 $31.81 $50.80 $13.99 $9.45
52 Week Price -32.02% -20.38% -2.06% 10.23% -8.87%
Market Capitalization $132.09M $2.55B $3.27B $27.69B $110.32M
Earnings per Share 0.15 3.76 3.02 3.25 1.12
Total Revenue $249.9M $2.69B $1.2B $5.54B $342.74M
Employees (Full-Time) 616 11312 4090 10000 1332
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Sources: Some of the data is taken from Google Finance, Nasdaq, Yahoo Finance, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in FLOW-OLD over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.