Investors will notice a name on the top gainers list today that they probably do not recognize. Hydraulic and electrical component maker Sauer-Danfoss (SHS) is getting its day in the sun on the back of a surprisingly strong fourth quarter and solid guidance for the next year. For better or worse, though, this company has virtually no coverage and no analyst support – perhaps explaining why it is one of the relatively few under-priced industrials with exposure to markets like mining, construction and agriculture.
Better Growth Across the Board
By almost every metric, Sauer-Danfoss posted solid results for the fourth quarter. Sales jumped 54% as reported, or 56% on a currency-neutral basis. Sales rose 53% in the Americas, 42% in Europe, and doubled in Asia. Looking at the results by market segment, “propel” saw growth of 71%, “work function” saw growth of 49%, and “controls” saw growth of 33%.
To put that in perspective, Caterpillar (CAT) reported 62% sales growth in its latest quarter, while Deere (DE) revenue rose 27%, while component companies like Eaton (ETN) and Parker Hannifin (PH) saw growth of 17% and 22%, respectively.
Please go to Seeking Alpha to read the full piece:
http://seekingalpha.com/article/256310-sauer-danfoss-thriving-in-relative-obscurity
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