*Andrew* Info. about BYDS:
Boyds Wheels -2: Analyst Cuts 1997 EPS, Sales Views
NEW YORK (Dow Jones)--After Boyds Wheels Inc. (BYDS) came out with a lower-than-expected earnings forecast last week, its shares fell to another 52-week low after one analyst cut his rating and estimates today.
Cruttenden Roth Inc. analyst William Gibson cut his 1997 estimates to earnings of 55 cents a share on sales of $31.4 million from $1.10 a share on sales of $39 million. Gibson also lowered his investment rating to neutral from buy.
On Feb. 18, Boyds Wheels said that it will report lower-than-expected net income for 1996 because of temporary manufacturing inefficiencies, higher-than-expected scrap rates and a less-profitable foreign-to-domestic sales mix.
Gibson cut his 1996 fourth-quarter estimate to a loss of 6 cents a share from earnings of 13 cents, which reduced his full-year earnings estimate to 40 cents from 63 cents. The company, however, met his revenue target of $27.2 million, he said.
In 1995, Boyds Wheels posted net income of $268,000, or 10 cents a share, on sales of $4.9 million for the fourth quarter, and net income of $947,000, or 48 cents a share, on sales of $17.8 million for the full year.
Shares of Boyds Wheels were down 1 3/32, or 13.9%, at 6 3/4 on Nasdaq volume of 400,000, compared with average daily volume of 56,000. Earlier, the shares hit a 52-week low of 6 1/2, passing the previous low of 7 5/8 set Feb. 20.
Boyd Wheels Chief Financial Officer Rex Ours attributed today's activity to analysts who have started talking to their in-house market makers and to Cruttenden Roth's revised numbers. The factors that hurt 1996 earnings are largely behind the company, he said.
"A contamination problem" in a furnace used to melt aluminum for wheels resulted in manufacturing inefficiencies and higher scrap rates, Gibson said.
Moreover, Gibson said he cut his 1997 sales estimates because expected new customers on the East Coast and in the Southeast aren't yet in place.
The strong dollar has also hurt the company's international sales, which comprise about 25% of annual sales, Gibson said. International sales for the fourth quarter look to be about flat with year-ago levels at $1.1 million, he said. Previously, international sales had been growing at rates well over 30%, he said.
"Dow Jones News Service"
"Copyright(c) 1997, Dow Jones & Company, Inc."
Hope this info. is what you have asked for.
Sorry to hear about your grandchild.
Peggy |
