Lower costs set them up for a rebound

Article Excerpt

WAJAX CORP. $15.74 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding: 20.2 million; Market cap: $315.6 million; Dividend yield: 6.4%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts and systems such as ball bearings, hoses, diesel engines and transmissions. Wajax’s customers are spread across the resources, construction, manufacturing and transportation industries. In the quarter ended March 31, 2019, overall revenue rose 9.4%, to $374.6 million from $342.4 million a year earlier. That beat the consensus forecast of $364.8 million. Stronger demand for product support services, rental equipment and industrial parts offset lower sales of new equipment. The acquisition of Montreal-based Groupe Delom Inc. in October 2018 for $52.1 million also contributed to the revenue gain. Delom specializes in the maintenance and repair of electromechanical and rotating equipment. Excluding one-time items, Wajax made $8.7 million, or $0.43 a share, in the latest quarter. The performance matches the consensus estimate. However, the latest earnings are down 9.4% from $9.6…

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