Product demand - Co said Q4 sales growth was driven by continued strength in Marine and Propulsion products, accelerating Defense activity, and improved Oil and Gas performance
Gross margin pressure - Co attributed lower Q4 gross margin to product mix and the absence of a prior year favorable adjustment
Operating expenses - Decreased Q4 marketing, engineering and administrative expense was driven by reduced global bonus expense, lower depreciation and amortization, and spending controls
Analyst coverage and valuation
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Twin Disc Inc is $30.00, about 26.7% above its August 19 closing price of $23.68
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 11 three months ago
Q4 sales and earnings beat estimates
US marine transmission maker's fiscal Q4 sales rose 18% yr/yr, driven by Marine and Defense
Adjusted EPS for fiscal Q4 was $0.64, net income reached $9.4 mln
Fiscal Q4 gross margin declined to 26.3%, mainly due to product mix
TWIN•
