Thermon Group (NYSE:THR) Shares Down 9.6% on Disappointing Earnings

Key Points

• Thermon Group's stock price fell by 9.6% to $25.51 after reporting weaker than expected earnings of $0.36 per share, missing the analyst estimate of $0.37.
• The company's revenue decreased by 5.4% year-over-year, and it has a return on equity of 13.08% with a net margin of 10.74%.
• Despite the earnings miss, Wall Street Zen upgraded Thermon Group from a "buy" to a "strong-buy" rating.

Shares of Thermon Group Holdings, Inc. (NYSE:THR - Get Free Report) fell 9.6% during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $25.44 and last traded at $25.51. 27,444 shares were traded during trading, a decline of 85% from the average session volume of 181,061 shares. The stock had previously closed at $28.23.

The technology company reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.37 by ($0.01). Thermon Group had a return on equity of 12.76% and a net margin of 10.89%. The firm had revenue of $108.90 million for the quarter, compared to analyst estimates of $122.53 million. During the same quarter last year, the firm posted $0.38 EPS. The firm's revenue for the quarter was down 5.4% on a year-over-year basis.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen lowered shares of Thermon Group from a "strong-buy" rating to a "hold" rating in a report on Saturday.

Institutional Investors Weigh In On Thermon Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quarry LP grew its stake in Thermon Group by 314.1% in the fourth quarter. Quarry LP now owns 853 shares of the technology company's stock valued at $25,000 after purchasing an additional 647 shares during the last quarter. CWM LLC raised its holdings in shares of Thermon Group by 68.9% in the first quarter. CWM LLC now owns 922 shares of the technology company's stock worth $26,000 after acquiring an additional 376 shares during the last quarter. GAMMA Investing LLC grew its position in Thermon Group by 3,912.0% during the first quarter. GAMMA Investing LLC now owns 1,003 shares of the technology company's stock valued at $28,000 after acquiring an additional 978 shares during the period. State of Wyoming acquired a new stake in Thermon Group during the first quarter valued at approximately $59,000. Finally, Point72 Asset Management L.P. acquired a new position in shares of Thermon Group during the 4th quarter valued at $192,000. 99.76% of the stock is currently owned by institutional investors.

Thermon Group Trading Up 4.2%

The company has a quick ratio of 1.64, a current ratio of 2.43 and a debt-to-equity ratio of 0.24. The business has a 50-day moving average of $27.70 and a 200-day moving average of $27.80. The stock has a market cap of $834.73 million, a price-to-earnings ratio of 15.87 and a beta of 1.09.

Thermon Group Company Profile

Thermon Group Holdings, Inc provides engineered industrial process heating solutions for process industries in the United States and Latin America, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. It offers heat tracing products, such as electric heat tracing cables, steam heating solutions, controls, monitoring and software, instrumentation, project services, industrial heating and filtration solutions, temporary electrical power distribution and lighting, and other products and services.