Anixter International, Inc. (AXE) just hit a new multi-year high after reporting strong Q1 results that came in ahead of expectations. But in spite of the gains, this Zacks #1 rank stock still trades at a discount to the industry average.
Company Description
Anixter International Inc, with its subsidiaries, sells telecom and communication components worldwide. The company was founded in 1957 and has a market cap of $2.48 billion.
With earnings season in full bloom, we just got an update on AXE’s business, and the results were very encouraging.
First-Quarter Results
Revenue for the period was up 19% from last year to $1.52 billion. Earnings also looked good, coming in at $1.32, 11% ahead of the Zacks Consensus Estimate, where the company has an average surprise of 15.5% over the last four quarters.
The company noted that the good quarter was driven by the strong economic recovery that enabled the company to boost its sales from last quarter in what is usually a cyclical slowdown. Anixter also experienced strong sales growth from multiple geographic regions, with sales in Europe, North America and the emerging markets all up between 15 and 27% from last year.
Estimates
We saw some pretty solid movement in estimates off the good quarter, with the current year adding close to 10% and climbing to $5.58. The next-year estimate is up 43 cents in the same time to $6.28, a bullish 13% growth projection.
We also see some nice valuation metrics for AXE, with a forward P/E of 13X against the industry average of 15X. It’s P/B multiple of 2.35X is well below the traditional benchmark of 3 for value.
12-Month Chart
On the chart, AXE hit a new multi-year high on the good quarter, attractive valuation and general upward momentum, take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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