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What Makes L.B. Foster (FSTR) Stock a Solid Choice Right Now
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L.B. Foster Company (FSTR - Free Report) registered a 14.3% rise in its stock value in the past three months thanks to robust first-quarter earnings that exceeded expectations.
Presenting an enticing investment opportunity with strong growth prospects, FSTR sports a Zacks Rank #1 (Strong Buy).
Earnings Outperformance
In the first quarter, FSTR outperformed expectations, with adjusted earnings of 8 cents per share, surpassing the Zacks Consensus Estimate of a loss of 16 cents. It pulled off a trailing four-quarter earnings surprise of around 12.6%, on average.
Robust Growth Prospects
The Zacks Consensus Estimate for FSTR's 2024 earnings is pegged at $1.72, indicating year-over-year growth of a whopping 1,233%. The consensus estimate for the current year experienced an upward revision of 13.5% in the past 60 days, underlining healthy growth potential. Moreover, earnings are expected to register 31.3% growth in second-quarter 2024.
An Outperformer
FSTR’s shares are up 89.3% in a year against the industry’s rise of 5.8% in the same period.
Image Source: Zacks Investment Research
Strong Q1 Results and Upbeat Prospects
In first-quarter 2024, FSTR demonstrated exceptional growth, with net sales reaching $124.3 million, up nearly 8% from the previous year’s tally. Despite the unfavorable impact of divestiture and product line exits, the company achieved 16.9% organic growth, showcasing its robust market presence and operational strength. With a $3 million year-over-year increase in gross profit, partly due to its strategic transformation and a year-over-year reduction in net debt by $2.5 million, FSTR is positioned for continued success and stability. The company also saw a rebound in the Rail business in the quarter after a tepid 2023 with organic sales growth of 29.4%.
The company anticipates strong performance, with adjusted EBITDA expected to be between $34 million and $39 million and net sales forecast in the $525-$560 million range for 2024. FSTR projects a free cash flow of $12-$18 million for the full year, with capital spending targeted at 2-2.5% of sales. This strategic approach ensures continued investment in areas pivotal to long-term success while maintaining financial discipline.
CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared 105.1% in the past year.
ATI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the earnings surprise being 8.34%, on average. The stock has surged 53.8% in the past year.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59, indicating a year-over-year rise of 26.5%. The Zacks Consensus Estimate for ECL’s current-year earnings has moved up in the past 30 days. ECL beat the consensus estimate in each of the last four quarters, with the earnings surprise being 1.3%, on average. The stock has rallied nearly 36.5% in the past year.
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What Makes L.B. Foster (FSTR) Stock a Solid Choice Right Now
L.B. Foster Company (FSTR - Free Report) registered a 14.3% rise in its stock value in the past three months thanks to robust first-quarter earnings that exceeded expectations.
Presenting an enticing investment opportunity with strong growth prospects, FSTR sports a Zacks Rank #1 (Strong Buy).
Earnings Outperformance
In the first quarter, FSTR outperformed expectations, with adjusted earnings of 8 cents per share, surpassing the Zacks Consensus Estimate of a loss of 16 cents. It pulled off a trailing four-quarter earnings surprise of around 12.6%, on average.
Robust Growth Prospects
The Zacks Consensus Estimate for FSTR's 2024 earnings is pegged at $1.72, indicating year-over-year growth of a whopping 1,233%. The consensus estimate for the current year experienced an upward revision of 13.5% in the past 60 days, underlining healthy growth potential. Moreover, earnings are expected to register 31.3% growth in second-quarter 2024.
An Outperformer
FSTR’s shares are up 89.3% in a year against the industry’s rise of 5.8% in the same period.
Image Source: Zacks Investment Research
Strong Q1 Results and Upbeat Prospects
In first-quarter 2024, FSTR demonstrated exceptional growth, with net sales reaching $124.3 million, up nearly 8% from the previous year’s tally. Despite the unfavorable impact of divestiture and product line exits, the company achieved 16.9% organic growth, showcasing its robust market presence and operational strength. With a $3 million year-over-year increase in gross profit, partly due to its strategic transformation and a year-over-year reduction in net debt by $2.5 million, FSTR is positioned for continued success and stability. The company also saw a rebound in the Rail business in the quarter after a tepid 2023 with organic sales growth of 29.4%.
The company anticipates strong performance, with adjusted EBITDA expected to be between $34 million and $39 million and net sales forecast in the $525-$560 million range for 2024. FSTR projects a free cash flow of $12-$18 million for the full year, with capital spending targeted at 2-2.5% of sales. This strategic approach ensures continued investment in areas pivotal to long-term success while maintaining financial discipline.
L.B. Foster Company Price and Consensus
L.B. Foster Company price-consensus-chart | L.B. Foster Company Quote
Other Key Picks
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , sporting a Zacks Rank #1, and ATI Inc. (ATI - Free Report) and Ecolab Inc. (ECL - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared 105.1% in the past year.
ATI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the earnings surprise being 8.34%, on average. The stock has surged 53.8% in the past year.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59, indicating a year-over-year rise of 26.5%. The Zacks Consensus Estimate for ECL’s current-year earnings has moved up in the past 30 days. ECL beat the consensus estimate in each of the last four quarters, with the earnings surprise being 1.3%, on average. The stock has rallied nearly 36.5% in the past year.