Key for Investors: US Equity Market Update for September 4, 2015
About Hurco
Hurco Companies (HURC) is a $190.28 million industrial technology company. It designs and produces interactive computer controls, software and computerized machine tools, and machine tool components for the metal cutting and metal forming industry. The products’ market consists of independent job shops and short-run manufacturing operations. Hurco’s price movement on a weekly, monthly, and YTD (year-to-date) basis is -4.28%, -6.23%, and -14.36%, respectively.
The PowerShares Zacks Micro Cap Portfolio (PZI) has the highest investment in Hurco at 0.26%. The YTD price movement of PZI, the iShares Microcap ETF (IWC), and the WisdomTree SmallCap Earnings ETF (EES) is -6.83%, -4.20%, and -6.82%, respectively.
Hurco’s major competitors are Perceptron (PRCP), Lincoln Electric Holdings (LECO), Hardinge (HDNG), Kennametal (KMT), and SPX (SPW).
Hurco’s performance in 2Q15
Hurco announced its 2Q15 earnings report with a 5.10% rise in the net income—compared to 1Q15. The company’s net profit margin was 7.89% in 1Q15. With the rise in the net income, it has maintained a good debt-to-equity ratio of 1.89. The company increased its cash and cash equivalent by 8.10%. The net income rose with the increase in sales in Europe and Asia-Pacific by 0.98% and 0.32% on quarterly basis.
The overall effect of the net income rise is the dividend given to shareholders. Hurco announced a dividend of $0.08 per share after the 1Q15 and 2Q15 earnings reports.
Hurco’s activities after the earnings
After a successful 2Q15, the company has acquired all of the assets of US-based Milltronics Manufacturing Company—known as Milltronics CNC Machines or Milltronics—through a wholly owned subsidiary. Milltronics designs and manufactures CNC knee mills, toolroom bed mills, combination lathes, and bed mills.
The company also entered into an agreement to acquire the business, technology, goodwill, and operating assets of Takumi Machinery—or Takumi. It’s a Taiwanese company. Takumi designs and manufactures CNC vertical machining centers and high-speed bridge machines.
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