Why Hurco Companies (HURC) Stock Is Surging Today

NEW YORK (TheStreet) -- Shares of Hurco Companies Inc. (HURC) are surging 5.60% to $29.59 after the company announced it filed for a U.S. patent application for new technology combining 3D printing and CNC (Computer Numerical Control) machining. 

"We designed an additive manufacturing adapter that, in combination with proprietary Hurco control software, effectively turns a CNC milling machine into a 3D printer," the industrial tech company today.

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Separately, TheStreet Ratings team rates HURCO COMPANIES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate HURCO COMPANIES INC (HURC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HURC's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.49, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Machinery industry average. The net income increased by 11.1% when compared to the same quarter one year prior, going from $3.18 million to $3.54 million.
  • HURCO COMPANIES INC has improved earnings per share by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HURCO COMPANIES INC reported lower earnings of $1.24 versus $2.40 in the prior year. This year, the market expects an improvement in earnings ($1.74 versus $1.24).
  • The gross profit margin for HURCO COMPANIES INC is currently lower than what is desirable, coming in at 32.47%. Regardless of HURC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.58% trails the industry average.
  • You can view the full analysis from the report here: HURC Ratings Report
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