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Broadpoint is out in defense of Dynamic Materials Corp. (NASDAQ:BOOM) following its latest results, out last night.

According to the firm, a weaker than expected June quarter may require a stronger ramp up in the second half for the company to meet its unchanged CY08 guidance. They continue to believe in the long-term growth and would be buyers of this quality name on any weakness.

The company's backlog for explosive metalworking was up slightly to $102M at the end of the March Quarter vs. $100M in December. This was once again, in-line with the firm's expectations of a "stable" backlog.

The company left its CY08 guidance of 60% Y/Y revenue growth (due to the DYNAenergetics acquisition) unchanged but 2Q:CY08 results are expected to be at the same level as 1Q:CY08. This was below consensus estimates of $0.56 on $64M. A weaker than expected June Quarter may require a stronger ramp up in the second half for the company to meet its unchanged CY08 guidance.

On the conference call, management talked about significant price increases and tension in the supply chain of high-quality carbon steel. Broadpoint believes in the worst case, this may lead to some timing risk but clearly not lost business. They believe long-term business fundamentals remain strong and recommend that investors continue to add to positions on any pullback. They reiterate their Buy rating and $58 price target (20x CY09 EPS estimates of $2.90) on the stock.

Notablecalls: I think BOOM represents a good bounce play around the $40 level.

Source: Broadpoint Defends Dynamic Materials Following Earnings Letdown