Manitex International, Inc. (MNTX) has enjoyed strong earnings momentum following a solid second quarter report, which included an earnings surprise of 33.3%. With a price-to-earnings (P/E) ratio of just 9.6 and average earnings surprise of 31.1% for the past four quarters, this Zacks #2 Rank (Buy) provider of engineered lifting solutions presents an attractive option for value investors.
On August 7, Manitex International, Inc. reported second quarter 2012 earnings per share of 20 cents, up 124% from 9 cents in the year-ago quarter and 33.3% above the Zacks Consensus Estimate of 15 cents.
Revenue grew 42% to $52.5 million thanks to healthy demand for the company's products, especially the boom truck that accounted for approximately half of the revenue increase in the quarter. Backlog at roughly $150 million represented growth of 195% year over year and 79% year to date.
Due to uncertain global economic conditions, management provided a cautiously optimistic outlook for the third quarter, expecting a modest sequential improvement. For 2012, solid revenue and year-over-year improvements in earnings are anticipated.
Earnings Momentum on the Rise
Over the last 30 days, the Zacks Consensus Estimate for 2012 has improved 4.4% to 71 cents. Meanwhile, the Zacks Consensus Estimate for 2013 increased 4.3% to 97 cents. These outlooks represent year-over-year earnings growth of 130.1% for 2012 and 36.0% for 2013.
A Value Play
In addition to an attractive P/E multiple, Manitex is currently trading at a P/S ratio as low as 0.5 and at a P/B ratio of just 1.6. A P/E ratio below 15.0, a P/B ratio under 3.0 and a P/S ratio lower than 1.0 generally indicate value.
As can be observed from the chart below, the stock gained momentum after 2010 and has since reached new highs, primarily on the back of higher backlog and favorable operating conditions. Also, the rising Zacks Consensus Estimates suggest brighter prospects for Manitex in the years ahead.
Manitex International, Inc. is headquartered in Bridgeview, Illinois, and was founded in 1993. Operating through two segments, Lifting Equipment and Equipment Distribution, the company designs, manufactures, and distributes boom trucks and crane products, including specialized rough terrain cranes and material handling products. Currently, the company has a market capitalization of approximately $83.8 million.