UPDATE: D.A. Davidson Reiterates Buy Rating, Lowers PT on General Cable Corporation Following Adjusted Q1 Earnings

In a report published Thursday, D.A. Davidson analyst Brent Thielman reiterated a Buy rating on General Cable Corporation

, but lowered the price target from $40.00 to $38.00. In the report, Thielman noted, “General Cable reported adjusted Q1 earnings of $0.23 per share compared to our estimate of $0.27 and consensus of $0.26 per share. GAAP earnings of $(0.94) per share included settlement costs, restatement and investigation costs, Venezuelan currency devaluation, mark-to-market gains and non-cash convertible debt interest expense. Q1 guidance was $0.22-$0.32 per share...General Cable provided Q2 guidance in a range of $0.50-$0.60 per share. Adjusted operating income guidance ($70-$80 million) includes an estimated $15-$20 million impact due to declining copper prices and average cost inventory accounting. While recent pressure on copper and aluminum prices results in a temporary headwind to margins as inventories turn, the company reduced its full-year adjusted operating income guidance to $285-$315 million (previously $300-$340 million) principally due to this near-term pressure. We are lowering our forecasts for 2013 as a result and reducing 2014 estimates reflecting more conservative expectations for earnings growth.” General Cable Corporation closed on Wednesday at $31.63.