Topic: How To Invest

Stock Pickers Digest Hotline – Friday, August 18, 2017

Article Excerpt

WAJAX CORP., $19.83, symbol WJX on Toronto, sells and services cranes, forklifts and other heavy equipment. It also provides related parts such as ball bearings, hoses, motors and fittings, along with power systems, including diesel engines and transmissions. The company’s customers are in the natural resource, construction, manufacturing and transportation industries. In the three months ended June 30, 2017, the company’s revenue fell 3.4%, to $325.3 million from $336.6 million a year earlier. However, if you disregard a one-time mining order for $20 million a year ago, revenue actually rose 2.7%. Wajax made $7.3 million in the latest quarter, or $0.37 a share. That’s up 69.8% from $4.3 million, or $0.22 a share. The company’s ongoing restructuring efforts are responsible for the gain. That plan aims to reduce Wajax’s workforce by 10%. Total savings in 2016 were $8.6 million. The company expects annual savings of about $17 million, starting this year. The restructuring should also result in earnings of $1.43 a share for all of…