A.T. Cross Company
is a designer and marketer of branded personal accessories, including writing instruments, reading glasses, personal and business accessories and sunglasses. The company operates in two business segments: Cross Accessory Division (CAD) and Cross Optical Group (COG). The stock has a beta of 0.61
For the latest first quarter, the company reported 15.7% growth in revenue to $39.8 million from $34.4 million in the year-ago period, driven by a 10.3% increase in CAD revenue and a 24.1% rise in COG revenue. Moreover, net income surged to $1.3 million, or 10 cents per share, compared to $0.2 million, or 1-cent per share in 2010 first quarter.
In February, the company provided 2011 earnings guidance of 56 cents to 60 cents per share. Given the first quarter results, the company is now guiding revenue to the top end of the range. The company will review the guidance again in July, after the peak sunglass season concludes.
All the analysts covering the stock recommend buying it. There are no sell ratings on the stock. On average, analysts foresee 3% upside to $12.50 from current levels.