Hurco Leveraging Improving Demand, But Orders Need To Be Watched

Mar. 08, 2022 12:45 PM ETHurco Companies, Inc. (HURC)1 Comment
Stephen Simpson profile picture
Stephen Simpson
18.38K Followers

Summary

  • Hurco posted solid year-over-year revenue growth and impressive margin leverage, but sequential weakness in orders merits close monitoring.
  • The weakness in orders could be a "blip" tied to customer labor and supply chain constraints, but it may also be signalling the end of this recent capex refresh/expansion cycle.
  • Hurco shares remain undervalued below $40, but short-cycle industrials are out of favor and Russia's war in Ukraine is starting to threaten increasing headwinds for the industrial sector.

High-speed drill.

Liuhsihsiang/E+ via Getty Images

Hurco's (NASDAQ:HURC) fiscal first quarter saw this small machine tool company continue to leverage a broad recovery in global manufacturing, but a sequential drop in orders is worth watching. The market has been growing increasingly concerned

This article was written by

Stephen Simpson profile picture
18.38K Followers
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

Disclosure: I/we have a beneficial long position in the shares of HURC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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