Northwest Pipe Beats Estimates - Analyst Blog
21 Marzo 2013 - 9:50AM
Zacks
Welded steel pipe maker – Northwest Pipe Co.
(NWPX) reported fourth-quarter 2012 earnings of 48 cents per share,
topping the Zacks Consensus Estimate of 28 cents and surpassing the
year-ago quarter’s earnings of 15 cents. Profit propelled roughly
three-fold year over year to $4.5 million on higher sales.
For full-year 2012, earnings of
$1.72 per share outpaced the Zacks Consensus Estimate of $1.52 and
were higher than $1.35 a share recorded a year ago. Profit surged
28% year over year to $16.2 million as higher sales from Northwest
Pipe’s Tubular Products segment offset a decline in the Water
Transmission unit.
Revenues jumped nearly 16% year
over year to $136.2 million in the fourth quarter as solid gain in
Water Transmission masked a decline in Tubular Products. Sales
topped the Zacks Consensus Estimate of $117 million. Gross margin
rose to 10.7% from 9.5% a year ago.
For the full year, sales rose
nearly 3% year over year to $524.5 million, exceeding the Zacks
Consensus Estimate of $506 million.
Revenues from the Water
Transmission segment surged 43% year over year to $88.2 million in
the reported quarter, partly driven by the Lake Texoma water
pipeline project. Northwest Pipe, in Jul 2012, was awarded a
contract to supply welded steel pipe for the project which will
restore North Texas Municipal Water District's raw water supply.
This is the largest project in the company’s history.
However, revenues from the
Tubular Products slipped roughly 13% to around $48 million. The
division was hurt by competitive pressure stemming from the imports
of energy products, lower drilling activity and a decline in
natural gas prices.
Northwest Pipe ended 2012 with
order backlog of roughly $173 million in the Water Transmission
division, a 25% year-over-year increase.
Cash and cash equivalents, at the
end of 2012, was $46 million, down 74% year over year. Total
long-term debt declined 27% year over year to $24.5
million.
Moving ahead, Northwest Pipe
expects profitability in the Water Transmission unit in
first-quarter 2013 to be somewhat similar to the level achieved in
the fourth quarter. It, however, expects the division’s sales to
decline in the first quarter. In Tubular Products, Northwest Pipe
sees near breakeven results as the segment’s profitability is
expected to be impacted by increasing imports of competing energy
products.
Northwest Pipe makes
large-diameter steel pipeline systems for use in water
infrastructure applications, mainly in drinking water systems. The
company also makes smaller diameter, electric resistance welded
steel pipes and other similar products for use in energy,
construction, agriculture, commercial and industrial, and traffic
signpost applications.
Northwest Pipe, in Jan 2013,
announced the appointment of Duke Watson as the Vice President of
Sales for its Tubular Products unit. Prior to joining the company,
Duke served as the director of sales and marketing in the
Abandonment and Construction division of oilfield service company
Tetra Technologies Inc. (TTI).
Northwest Pipe currently retains
a Zacks Rank #5 (Strong Sell).
Other companies in the metal
processing and fabrication industry with favorable a Zacks Rank are
Kaydon Corporation (KDN) and NSK
Ltd. (NPSKY). Both hold a Zacks Rank #2 (Buy).
KAYDON CORP (KDN): Free Stock Analysis Report
NSK LTD -UN ADR (NPSKY): Get Free Report
NORTHWEST PIPE (NWPX): Free Stock Analysis Report
TETRA TECH DEL (TTI): Free Stock Analysis Report
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