A.T. Cross Improves Margins: Retains “Buy” Rating (ATX)

A.T. Cross Company (NASDAQ: ATX) has reported its Q1 EPS at 1 cent, up 13 cents Y/Y. Its revenue recorded an increase of 11.5% on a year-over-year basis, and stood at $34.4 million. According to the report, A.T. Cross’s (ATX) cost cutting plans also yielded success and helped it in realizing an overall operating income in Q1 of $0.5 million in comparison to a loss of $2.1 million a year earlier. The company also improved its gross margins by about 2.5% to 56.8%.

The company has retained its “Buy” rating and has been given a new price target of $6. Its earlier target was pegged at $5. The new price reflects a 6X multiple of EV/EBITDA and 17X multiple of its earnings.