A Broadening Industrial Recovery Is Driving Better Results At Hurco

Hurco is emerging from a severe industry down-cycle, with shares up over 30% since the last update on improving sales, margins, and orders. Recent results show mixed signals: strong year-over-year order growth but sequential declines and regional variability, especially in Europe and Asia-Pacific. Gross margins improved to 27.9%, and operating profit returned after 11 quarters of losses, supported by better volumes, mix, and pricing. The U.S. manufacturing recovery is real, but a little shaky, and Europe finally seems to be coming around. I remain cautiously bullish, seeing potential upside if the recovery broadens, but acknowledge persistent economic and demand uncertainties. Sergey Chips/iStock via Getty Images It has taken a painfully long time, but it looks like machine tool manufacturer Hurco ( HURC ) is now on the other side of one of the worst down-cycles for the machine tool industry. With This article was written by Stephen Simpson 20.98K Followers Follow Stephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds). Analyst’s Disclosure: I/we have a beneficial long position in the shares of HURC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.