Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, May 08, 2015

Article Excerpt

DOREL INDUSTRIES INC., $34.25, symbol DII.B on Toronto, makes a range of items, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and sporting goods, mainly bicycles. In the three months ended March 31, 2015, Dorel’s sales rose 2.7%, to $665.5 million from $647.7 million a year earlier (all figures except share price in U.S. dollars). Sales rose 17.2% at the home furnishing division and 2.0% at the juvenile-products business. These gains offset a 4.8% decline at the sports segment. Earnings fell 53.2%, to $0.36 a share from $0.77, falling well short of the consensus forecast of $0.60. However, Dorel gets half of its sales from outside of the U.S., and the high U.S. dollar cut its earnings by $0.30 a share in the latest quarter. Costs related to its plan to shift manufacturing of juvenile products to Asia from North America and Europe also weighed on its earnings. The stock trades at…