Harsco (NYSE:HSC) End Markets Show No Signs of Growth

Construction markets in Harsco Corporation (NYSE:HSC) territories are anemic, and that will push margins and growth down going forward, with no end in view as to when growth will resume.

Jefferies said, "HSC has been reporting losses in Infrastructure, the flagship business, this year and we expect another loss in 4Q. Its primary markets are NA and Europe commercial construction, where we estimate spending is declining 10%-15%. Pricing is weak."

Although maintaining their "Buy" rating and increasing their price target, Jefferies lowered their EPS estimate in full year 2010 and 2011.

They dropped their EPS estimates for full year 2010 to $0.82 from $0.86 and to $1.42 from $1.45 for full year 2011. They place a EPS estimate of $1.92 for full year 2012. Revenue estimates were also lowered a little each year, as full year 2010 went from $3.04 billion to $3.00 billion and for full year 2011 they went from $3.2 billion to $3.1 billion. The full year 2012 revenues estimate is $3.224 billion.

Harsco closed Tuesday at $23.04, falling $0.30, or 1.29 percent. Jefferies increased their price target on Harsco from $32 to $35.