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Northwest Pipe's (NWPX) Park Environmental Buyout to Aid Earnings
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Northwest Pipe Company (NWPX - Free Report) yesterday announced that it has acquired Park Environmental Equipment, LLC. The acquisition price, net of acquired cash, was $87.4 million and was funded by funds available under its existing credit facility.
Yesterday, Northwest Pipe’s shares gained 1.16%, ending the trading session at $24.49.
Houston, TX-based Park Environmental is a specialist in providing products and solutions for use in the wastewater, water, and environmental infrastructure industry. Its offerings include potable water service products, fire protection water service products, stormwater treatment products, pretreatment products for wastewater, etc.
In 2020, Park Environmental’s revenues totaled $66.5 million and adjusted earnings before interest, tax, depreciation and amortization were $14 million. Its employee strength was 280.
Inside the Headlines
With the addition of Park Environmental, Northwest Pipe is well-positioned to leverage the benefits from its extended product and service offerings, customer base, and enhance technological capabilities. Park Environmental’s three manufacturing facilities in San Antonio, Houston, and Dallas will boost Northwest Pipe’s production abilities.
Overall, Northwest Pipe anticipates strengthening its foothold in the water infrastructure market of Texas with this buyout. Immediate earnings accretion is also expected.
It is worth mentioning here that Northwest Pipe believes in acquiring businesses/assets in an attempt to gain access to new customers, end markets, and product lines. In second-quarter 2021, the company’s sales increased $15 million on account of sales contribution from Geneva Pipe and Precast Company.
Geneva Pipe and Precast Company was acquired by Northwest Pipe in first-quarter 2020 for $49.4 million.
Zacks Rank, Price Performance and Earnings Estimate Trend
Northwest Pipe currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from the increasing backlog, strengthening bidding environment, and healthy precast concrete business in second-half 2021. Issues with the steel pressure pipe business are concerning.
In the past three months, the company’s shares have lost 12.3% compared with the industry’s decline of 5.4%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Northwest Pipe’s earnings is pegged at $1.22 for 2021 and $2.27 for 2022, suggesting no change from the respective 60-day ago figures. The earnings estimates for the third quarter of 2021 are unchanged at 33 cents.
In the past 60 days, earnings estimates for the companies improved for the current year. Earnings surprise in the last reported quarter was positive 28.80% for Worthington, 27.97% for Applied Industrial and 33.11% for Kadant.
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Northwest Pipe's (NWPX) Park Environmental Buyout to Aid Earnings
Northwest Pipe Company (NWPX - Free Report) yesterday announced that it has acquired Park Environmental Equipment, LLC. The acquisition price, net of acquired cash, was $87.4 million and was funded by funds available under its existing credit facility.
Yesterday, Northwest Pipe’s shares gained 1.16%, ending the trading session at $24.49.
Houston, TX-based Park Environmental is a specialist in providing products and solutions for use in the wastewater, water, and environmental infrastructure industry. Its offerings include potable water service products, fire protection water service products, stormwater treatment products, pretreatment products for wastewater, etc.
In 2020, Park Environmental’s revenues totaled $66.5 million and adjusted earnings before interest, tax, depreciation and amortization were $14 million. Its employee strength was 280.
Inside the Headlines
With the addition of Park Environmental, Northwest Pipe is well-positioned to leverage the benefits from its extended product and service offerings, customer base, and enhance technological capabilities. Park Environmental’s three manufacturing facilities in San Antonio, Houston, and Dallas will boost Northwest Pipe’s production abilities.
Overall, Northwest Pipe anticipates strengthening its foothold in the water infrastructure market of Texas with this buyout. Immediate earnings accretion is also expected.
It is worth mentioning here that Northwest Pipe believes in acquiring businesses/assets in an attempt to gain access to new customers, end markets, and product lines. In second-quarter 2021, the company’s sales increased $15 million on account of sales contribution from Geneva Pipe and Precast Company.
Geneva Pipe and Precast Company was acquired by Northwest Pipe in first-quarter 2020 for $49.4 million.
Zacks Rank, Price Performance and Earnings Estimate Trend
Northwest Pipe currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from the increasing backlog, strengthening bidding environment, and healthy precast concrete business in second-half 2021. Issues with the steel pressure pipe business are concerning.
In the past three months, the company’s shares have lost 12.3% compared with the industry’s decline of 5.4%.
The Zacks Consensus Estimate for Northwest Pipe’s earnings is pegged at $1.22 for 2021 and $2.27 for 2022, suggesting no change from the respective 60-day ago figures. The earnings estimates for the third quarter of 2021 are unchanged at 33 cents.
Northwest Pipe Company Price and Consensus
Northwest Pipe Company price-consensus-chart | Northwest Pipe Company Quote
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) , and Kadant Inc. (KAI - Free Report) . While Worthington currently sports a Zacks Rank #1, both Applied Industrial and Kadant carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for the companies improved for the current year. Earnings surprise in the last reported quarter was positive 28.80% for Worthington, 27.97% for Applied Industrial and 33.11% for Kadant.