MIDCAP-Fleetwood lags Aussie consumer discretionary on analyst revisions

Wed Oct 31, 2012 1:15am EDT

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Fleetwood Corp Ltd lags on analyst revisions among 56 companies in Australia's consumer discretionary sector, tracked by at least three analysts, data from Thomson Reuters StarMine shows.

The caravan manufacturer has an Analyst Revision Model (ARM) score of 5, the lowest in the sector. This score has declined 25 points over the past 30 days.

It also has below-average Value-Momentum (Val-Mo) and Smartholdings (SH) scores of 36 and 33 respectively. The company has a slightly above-average Earnings Quality (EQ) score of 64. This score declined 17 points since the company's full-year results were announced on Sept. 28.

Four of the 11 analysts tracking the stock have cut their mean EPS estimates on the firm for 2013 and 2014 by an average of approximately 14 percent each since Oct. 22.

Of the 11, six give it a "strong buy" or "buy" and four have a "hold", while one recommends a "sell".

The stock currently trades at 57 percent of its intrinsic value of A$18.02. Fleetwood Corp's stock price is down nearly 15 percent so far this year, while the broader index is up 9.6 percent for the same period as of Tuesday's close.

Two other firms in the Aussie consumer discretionary sector with low ARM scores are Southern Cross Media Group and Fairfax Media Ltd with 9 and 10 respectively. At the other end of the spectrum, Kathmandu Holdings leads the sector with an ARM score of 99.

CONTEXT:

Fleetwood said last month it would transfer its Windsor unit's caravan manufacturing activities to its main facility in Western Australia. This transfer will result in a one-off charge in the first half of FY 2013.

StarMine's Analyst Revision Model ranks stocks based on analysts' revision of earnings and revenue estimates and changes in their ratings and usually gives additional weight to analysts who have been more accurate in the past.

StarMine's Val-Mo model combines relative and intrinsic valuation tools, along with analysts' earnings revisions and price momentum tools. It provides a 1-100 percentile ranking of stocks.

The StarMine SmartHoldings model is a global stock selection model that ranks stocks based on the expected future increase, or decrease, in institutional ownership.

The Earnings Quality model is a percentile (1-100) ranking of stocks based on sustainability of earnings, with 100 representing the highest rank. (Reporting by Reshma Apte; Editing by Jijo Jacob)

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