HURC - Hurco Hammered As Short-Cycle Manufacturing Trends Remain Weak
2024-04-06 08:09:02 ET
Summary
- Hurco's fiscal Q4'23 results were surprisingly strong, but fiscal Q1'24 saw a sharp decline, reflecting the volatility of the business and still-weak trends across the manufacturing sector.
- Manufacturing activity remains challenged, with indicators like PMI and cutting tool consumption showing signs of stress, and election years often lead to postponed capex/expansion projects.
- While Hurco may have seen the worst and is priced as an attractive way to play a short-cycle recovery, uncertainties in the market and above-average risks should not be ignored.
Uncertainty has been a watchword in the manufacturing space for a while now, and the results at Hurco ( HURC ) certainly reflect that. When I last wrote about this small manufacturer of machine tools, I was concerned about an ugly near-term outlook for manufacturing tool demand in North America and Western Europe and the likelihood that the company would “bump along the bottom” for a few more quarters....
Hurco Hammered As Short-Cycle Manufacturing Trends Remain Weak