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Morgan Stanley Upped Its 2010 EPS Estimate For Bucyrus International To $3.87 (BUCY,MS)

Written on Mon, 07/26/2010 - 9:17am
By Amanda Smith

7/26/2010- Morgan Stanley analysts are raising their 2010 EPS estimate for Bucyrus International (NASDAQ:BUCY) to $3.87, up from $3.85 per share, vs. consensus estimates of $4.03 per share.
Analysts Robert Wertheimer, Joseph O'Dea and Alexander Vecchio said, "Revenues of $869mm fell short of our estimate of $949mm, almost entirely on lower underground revenues due to weak order activity in the first half of last year. Second half '09 underground order activity more than 3x greater than first half should have meaningful impact on revenues in remainder of 2010. Margins surprised to the upside and offset volume shortages. Operating margin of 15% was 140 bps higher than our estimate. Legacy surface margins of 24.1% drove the beat, TEX margins of 6.4% also good. Excluding stepped up inventory costs, TEX-related margins were 12.1% (TEX mining did 10.2% in 2007 and 13.5% at peak in 2008)."
Morgan Stanley maintained its overweight rating on the stock, with an $80 price target. The bank sees fiscal 2011 EPS of $5.69.


Company Information For: BUCY

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