Hurco's (HURC) fiscal first quarter saw this small machine tool company continue to leverage a broad recovery in global manufacturing, but a sequential drop in orders is worth watching. The market has been growing increasingly concerned about the approaching end of this short-cycle recovery, and weak North American orders for Hurco are concerning. That said, there are a range of issues in the end-market that could explain some temporary weakness, so I'm reluctant to call an end to the cycle.
In the fairly short time since my last update, Hurco shares are up a bit, outperforming the wider industrial space and larger machine tool companies like DMG Mori and Okuma. Relative to that last update, I've pulled my expected cyclical peak and decline in a bit, as I'm increasingly concerned that the disruptions from Russia's invasion of Ukraine, particularly higher energy prices, could bring a swifter end to this up-cycle.
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Hurco Leveraging Improving Demand, But Orders Need To Be Watched
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