• Latest
  • Trending
  • All
Bear of the Day: Columbus McKinnon Corporation (CMCO)

Bear of the Day: Columbus McKinnon Corporation (CMCO)

December 29, 2019
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

April 14, 2020
Mzee Moi’s Ksh10B Gift to Gideon

Mzee Moi’s Ksh10B Gift to Gideon

April 14, 2020
Covid Knights: Corporate social purpose in the time of COVID-19

Covid Knights: Corporate social purpose in the time of COVID-19

April 14, 2020
How Tesla And BMW Are Leading A Supply Chain Renaissance With Blockchain

How Tesla And BMW Are Leading A Supply Chain Renaissance With Blockchain

April 14, 2020
Last Mile Delivery Market Worth Observing Growth | UPS, FedEx, SF Express

Last Mile Delivery Market Worth Observing Growth | UPS, FedEx, SF Express

April 14, 2020
LATAM Cargo strengthens European cargo links

LATAM Cargo strengthens European cargo links

April 14, 2020
Ford making reusable hospital gowns from airbag materials as efforts against coronavirus expand

Ford making reusable hospital gowns from airbag materials as efforts against coronavirus expand

April 14, 2020
Don’t Sweat NBC’s Decision to Cut Back on Television Ad Inventory

Don’t Sweat NBC’s Decision to Cut Back on Television Ad Inventory

April 14, 2020
Software firms sharpen focus on AI, big data as IT spending drops

Software firms sharpen focus on AI, big data as IT spending drops

April 14, 2020
Navigating turbulent times in your supply chain (TL:DR version)

Navigating turbulent times in your supply chain (TL:DR version)

April 14, 2020
Last Mile Delivery by Drones Market is Booming Worldwide

Last Mile Delivery by Drones Market is Booming Worldwide

April 14, 2020
  • Supply Chain
  • Logistics
  • Warehousing
  • Procurement
  • Shipping
  • More
    • Strategic Sourcing
    • Spend Analysis
    • Inventory
    • Contact Us
No Result
View All Result
United States International Supply Chain Commission
United States International Supply Chain Commission
Home Procurement

Bear of the Day: Columbus McKinnon Corporation (CMCO)

by usiscc
December 29, 2019
in Procurement
0
Bear of the Day: Columbus McKinnon Corporation (CMCO)
494
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

Columbus McKinnon Corporation (CMCO) fell short of our quarterly estimates last quarter and its CEO will step down after less than three years in the top spot. On top of that, Columbus McKinnon faces a near-term downturn in the broader manufacturing and industrial sectors.

What’s Going On?

Columbus McKinnon is a leading manufacturer of motion control products, technologies, systems, and services that help industrial-focused firms of all shapes and sizes “efficiently and ergonomically move, lift, position, and secure materials.” Its portfolio includes everything from light rail workstations to hoists.

The Buffalo, New York-based firm is currently divesting some of its less profitable businesses. The company has also closed some of its facilities as part of its “80/20 Process,” which aims to simplify its business, reduce its operating footprint, and more.

This has helped Columbus McKinnon improve its gross margin and management is confident in its longer-term outlook. However, the company fell short our Q2 fiscal 2020 estimates in early November and it has been negatively impacted recently by “industrial market headwinds, higher medical costs, tariffs,” and more.

Then, on December 11, the company announced that chief executive Mark Morelli would step down from his role, effective January 10, 2020, to take over as CEO of Fortive’s NewCo. The news took Wall Street by surprise because its stock tumbled roughly 11% in one day. CMCO’s chairman Richard H. Fleming will step in as interim CEO until the company finds a replacement.

 

 

 

 

Outlook

Columbus McKinnon’s Q3 fiscal 2020 revenue is projected to slip 7.5% from the year-ago period to reach $201.06 million, based on our current Zacks estimates. Looking further ahead, the firm’s full-year sales are expected to fall 5.8% in 2020 and another 0.35% in 2021.

The company’s bottom line is also expected to dip in the third and fourth quarters of fiscal 2020, to the tune of -3.3% and -2.9%, respectively. Plus, the charts above and below show investors that Columbus McKinnon’s earnings outlook has trended in the wrong direction.

 

 

 

 

Bottom Line

Columbus McKinnon’s negative earnings revision activity helps it hold a Zacks Rank #5 (Strong Sell) right now. The firm is also part of an industry that rests in the bottom 10% of our more than 250 Zacks industries.

Plus, a transition at the top is never easy, but one that comes amid a business overhaul and a near-term uncertain economic picture for the manufacturing space is even harder. Despite all of this, CMCO stock is up 32% in 2019 and 14% in the last three months and currently hovers right near its 52-week highs.

CMCO stock could be one to avoid for now based on its short-term uncertainty. With that said, some investors might want to leave Columbus McKinnon on their watch list given some of its fundamentals.

Those still interested in the broader Manufacturing – Material Handling industry might want to consider #2 (Buy)-ranked DISCO CORP (DSCSY).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DISCO CORP (DSCSY) : Free Stock Analysis Report
 
Columbus McKinnon Corporation (CMCO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Share198Tweet124Share49
usiscc

usiscc

  • Trending
  • Comments
  • Latest
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
‘Significant opportunity’ in Asia as supply chain integrates, consolidates

‘Significant opportunity’ in Asia as supply chain integrates, consolidates

January 3, 2020
3 keys to mitigating severe supply shortages from coronavirus disruption

3 keys to mitigating severe supply shortages from coronavirus disruption

March 18, 2020
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

0
Global Industry Analysis, Size, Share, Growth, Trends, and Forecasts 2016–2024 – ZMR News Reports

Global Industry Analysis, Size, Share, Growth, Trends, and Forecasts 2016–2024 – ZMR News Reports

0
PHOTOS: Ottawa firefighters respond to warehouse fire

PHOTOS: Ottawa firefighters respond to warehouse fire

0
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

April 14, 2020
Mzee Moi’s Ksh10B Gift to Gideon

Mzee Moi’s Ksh10B Gift to Gideon

April 14, 2020
  • Privacy Policy
  • Terms of Use
  • Disclaimer
  • DMCA
  • Contact Us

Copyright © 2021 United States International Supply Chain Commission (usiscc.org)

No Result
View All Result
  • Supply Chain
  • Logistics
  • Warehousing
  • Procurement
  • Shipping
  • More
    • Strategic Sourcing
    • Spend Analysis
    • Inventory
    • Contact Us

Copyright © 2021 United States International Supply Chain Commission (usiscc.org)

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT