Standex Int’l Corp.(NYSE: SXI) stock surged over 3.3% on August 28th, 2017 ( as of 1:15PM EDT; Source: Google finance) post their fourth quarter of 2017 results.
The group forecasts an ongoing momentum in Engraving, Engineering Technologies, and Electronics in 2018. For Hydraulics, they intend to leverage their strong pipeline of growth opportunities. In Food Service, the group’s plant optimization actions would enable them to drive margins and better compete on cost, delivery, and quality. Food Service business was boosted by Horizon Scientific acquisition in the fiscal year of 2017. Food Service Equipment sales enhanced 7.9% on a yoy basis in FY17 but Organic growth fell 0.7%, while the Horizon Scientific acquisition contributed 8.7%. Refrigeration segment also performed well with revenue rising 5.3% driven by drug retail and dollar store segments, coupled with backlog which was at an all-time high as spending from national accounts continues to ramp up.
Mold texturizing performance delivered an outstanding sales performance which rose >20% driven by the Asia Pacific region as OEMs ramped up new model introductions, while North America and Europe enhanced over 10% with new program launches fueling growth. But the segment’s margins were hurt on a year over year basis on the back of rising laneway investments in laser, nickel shell and tool finishing, which were not fully utilized in the quarter.
Electronics sales performance was strong which surged 40.1% on a year over year basis while Organic growth contributed 4.1% wherein Japanese acquisition contributed 38.5%. Accordingly, the segment’s Operating income surged 49.1%. Standex Electronics Japan acquisition drove the performance while European sales enhanced by double digits, driven by Military/Aerospace, Appliance, Industrial and Auto markets. Sensor as well as reed relay sales enhanced on a high single digit during the quarter. The group intends to leverage their new magnetic business opportunities and eyeing Asia Pacific sensor opportunities.
Overall, Standex managed to deliver a Net sales rise of 12.0% on a year over year basis to $217.1 million with organic sales up 4.4%. Overall the stock rose 8.2% in the last three months.