Introduction:
Stock Snapshot:
The stock for Hardinge Inc. (NASDAQ:HDNG) stood at USD 9.41, representing a total market capitalization of USD 110 million. Over the last year the stock has traded between a range of USD 7.61 and USD 11.65. The stock has witnessed an average volume of 29,897 shares over the last three months. The stock has been trading at a P/E ratio of 8.19, a P/S ratio of 0.32, and a P/B ratio of 0.71. The Company has 11.69 million shares outstanding, with a float of 11.34 million.
Competitor Analysis:
The Timken Company develops, manufactures, markets, and sells anti-friction bearings and assemblies, alloy steels, and mechanical power transmission systems. The stock for Timken Company stood at USD 38.66 representing a total market capitalization of USD 3.71 billion. Over the last year the stock has traded between a range of USD 38.30 and USD 39.31. The stock has witnessed an average volume of 1,162,360 shares over the last three months. The stock has been trading at a P/E ratio of 7.18, a P/S ratio of 0.72, and a P/B ratio of 1.59. The Company has 95.85 million shares outstanding, with a float of 86.79 million.
Financial Analysis:
Sales:
For 9MFY12, the Company recorded total sales of USD 203.06 million, as compared to USD 303.3 million, registering a YoY decline of 24% approximately. Sales of machines accounted for approximately 77% of total sales for 9MFY12, whereas sales of non-machine products and services, primarily work holding, repair parts, and accessories, accounted for 23% of the total sales for 9MFY11.
Gross Profit:
For 9MFY12 the Company reported gross profit of USD 69.3 million, an increase of $1.3 million, or 2.0%, when compared the gross profit for 9MFY11. The increase in gross profit was primarily attributable to favorable pricing and product mix. Gross margin for 9MFY12 was 28.4%, as compared to gross profit margin of 27.1% for the corresponding period last year.
Net Profit:
For 9MFY12, the Company reported net income of USD 10.1 million, as compared to USD 8.7 million in the corresponding period last year, registering a YoY increase of 16%. The Company reported basic and diluted EPS of USD 0.87, as compared to USD 0.75 for the corresponding period last year.
