OMNOVA Solutions Inc. (OMN) just topped earnings projections, sending shares to a new 52-week high.
Company Description
OMNOVA Solutions makes emulsion polymers and other specialty chemicals that have decorative and functional uses. The company serves commercial, industrial and residential markets.
Another Surprise
OOMNOVA Solutions announced first-quarter results on Mar 24th that included net income of $7.8 million, up from a small loss one year ago. The company saw net sales spike 15% to $184 million.
Earnings per shares came in at 18 cents, 8 cents better than the Zacks Consensus Estimate. This was the fifth quarter with sequatial earnings improvement.
Estimates Rising
Since the earnings release, the Zacks Consensus Estimate for fiscal 2010 is already up 4 cents, to 83 cents. Projections for fiscal 2011 are avearging 88 cents.
If OOMNOVA reaches these projections, year-over-year earnings growth will be 22% and 6% respectively.
The Chart
Shares of OMN jumped on the earnings news to new highs, but continue to trade at a great value. One share will run you less than 10 times forward earnings.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service Zacks Investment Research
