Intermec (NYSE: IN) is
engaged in the design, development, manufacture and integration of wired and wireless identification, data collection, mobile computing, bar code printing, and labeling products and systems. Its scanners, readers and sensors are used by customers involved with distribution, warehousing, manufacturing and retailing. The firm also serves government clients. Motorola (NYSE: MOT) is a major competitor.
Intermec pleased the Street earlier in the month, when it reported Q4 EPS of 27 cents and revenues of $253 million. Analysts had been expecting 23 cents and $236.2 million. The CEO noted that it was a record revenue quarter, with growth across all geographic regions. Management also guided Q1 EPS to 10-13 cents (10 cent consensus) and Q1 revenues to $208-$213 million ($203.67M consensus).
The stock
price popped on the news and has since been defining a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with one "strong buy", two "buys", four "holds" and one "sell". Analysts see a 30% growth rate, through the next year. The stock's Price to Book ratio (2.80), Sales Growth rate (15.83%) and EPS Growth rate (145.45%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, IN has traded between $17.53 and $30.16. A stop-loss of $18.90 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in the stocks mentioned above.
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