A.T. Cross's (NASDAQ:ATX) Sales Growth for 2010 Should Come in at 12 Percent

Sales growth for A.T. Cross Company (NASDAQ:ATX) should come in at about 12 percent for 2010 over the last year, although higher costs going forward could pressure margins and earnings.

Morgan Joseph said, "Considering most of the profit gains are projected to come from a more profitable product mix (higher margined COG revenues likely to expand from 38% of revenues to approximately 45%) and improved sales leverage (3-year operating cost CAGR estimated at 6% versus 8% sales CAGR), upside to targeted gains could be achieved should added cost efficiencies develop."

They lowered their full year 2011 EPS estimate from $0.69 to $0.60, based on higher input assumptions. For full year 2011, EPS should grow at about a 28 percent rate year-over-year based on increased sales leverage.

Morgan Joseph reiterates their "Buy" rating on A.T. Cross Company, which closed Wednesday at $9.55, up $0.55, or 6.11 percent. Morgan raised their price target on A.T. Cross from $8.50 to $10.