Checkpoint Systems (CKP) is heading into its next earnings announcement with bullish estimate revisions. Currently, shares are range bound, but the upcoming news could send the stock higher.

Company Description

Checkpoint Systems provides retailers and their suppliers with merchandising services. The company makes identification, tracking, security and merchandising services for their customers.

Double-Digit Growth

Checkpoint Systems is a Zacks Rank #1 after the Zacks Consensus Estimate jumped following the last quarter. Forecasts for 2010 are averaging $1.12, up 14 cents in the past 2 months.

Projections for next year are coming in at $1.34, up 20 cents in that time. The current estimates would yield growth rates of 21% this year and another 20% next year.

Easily Topped Expectations

On Feb 23 Checkpoint Systems reported its fourth-quarter results for 2009 that showed revenues of $237.8 million, up slightly year-over-year. Net income was $23.4 million, almost 5 times the same period in 2008.

Earnings per share were 59 cents, up from 12 cents one year ago and 14 cents ahead of the Zacks Consensus Estimate. This was the third surprise in the past 4 quarters.

Contracts Extended

One of Checkpoint Systems’ divisions reported a 3 year extension for its contract with Airbus. The multi-million dollar contract is the industry’s largest RFID software transaction.

The Chart

Shares of CKP spiked on the earnings news, but have traded sideways lately. Checkpoint is set to release first-quarter results on May 4 and that may be the catalyst we need to get out of this range.

Checkpoint Systems - ticker CKP > <P ALIGN=

Bill Wilton is the Growth Stock Strategist for He is also the Editor in charge of the market-beating Zacks Growth Trader service Zacks Investment Research