Hyster-Yale Hits 52-Week High - Analyst Blog

Hyster-Yale Materials Handling, Inc.'s HY shares attained a 52-week high of $108.13 during intraday trading on Mar 7, finally closing lower at $104.36.

The company delivered a robust 1-year return of about 101.4%, outperforming the S&P 500 return of 24.2%. Hyster-Yale has a market cap of $1.74 billion. Average volume of shares traded over the last 3 months was approximately 67K.

What's Driving Hyster-Yale?

Shares of Hyster-Yale have been on the rise since the company reported upbeat fiscal 2013 results on Feb 19. Hyster-Yale reported earnings per share of $6.54 in 2013, up around 12% from $5.83 per share in 2012. The results beat the Zacks Consensus Estimate of $5.78. Earnings per share in the fourth quarter dipped 21% year over year to $1.53. Results, however, surpassed the Zacks Consensus Estimate of $1.47.

Hyster-Yale expects the global market for forklift trucks to grow slightly in 2014. Market growth and a strong backlog at the end of 2013 will aid in unit shipments and parts volumes increment. The majority of this increase is expected to come from the Americas, with smaller increases in the Asia-Pacific and European unit shipments.

The company anticipates sales to improve moderately in 2014. Operating profit is also expected to increase on the back of favorable effects of strategic initiatives and product enhancements. A lower estimate for equity incentive compensation is also projected to contribute toward a higher operating profit. Cash flow for 2014 is expected to decline primarily due to increase in capital expenditures resulting from the construction of a new plant in Brazil.

Hyster-Yale will benefit from new programs and platforms that are expected to be developed and launched over the next few years based on longer-term segment needs or technological changes. Hyster-Yale also remains focused on improving margins in its internal combustion engine business.

Other Stocks to Consider

Hyster-Yale currently holds a Zacks Rank #2 (Buy).  Some other stocks worth considering in the sector include Kadant Inc. KAI, Sun Hydraulics Corp. SNHY and Altra Industrial Motion Corp. AIMC. While Kadant and Sun Hydraulics sport a Zacks Rank #1 (Strong Buy), Altra Industrial Motion holds a Zacks Rank #2.