Rockwood Holdings, Inc. (ROC) has posted another earnings surprise since being featured as a Zacks Rank Buy. The company’s earnings outlook as made a huge comeback from its lows during the recession.
Company Description
Rockwood Holdings is a specialty and advanced materials maker. The company operates on a global scale and focuses on niche markets in the specialty chemicals, pigments and additives and advanced materials segments.
Solid Results
On Jul 27 Rockwood posted earnings per share of 59 cents, more than 4 times the 13 cents a year ago. The number also came in well ahead of the Zacks Consensus Estimate which was calling for 41 cents.
Net sales increase almost 20% to $875 million. Margins were also on the rise as well, a recipe for a great quarter.
Estimates Jump
Following the earnings release and a credit rating upgrade from S&P, analysts have significantly raised full-year estimates. Projections for 2010 are now averaging $1.99, up from $1.53 in the past month.
Next year’s Zacks Consensus Estimate is coming in at $2.20, up from $1.77. Given the 49 cents earned in 2009, the annual growth rates are expected to be 306% and 11%, respectively.
As a whole, analysts are fond of the specialty chemicals, which currently rank 21st out of 264 industries at Zacks.com. Rockwood is at the top of the 29 companies in the industry.
The Chart
While our economy has not made the V-shaped recovery everyone was hoping for, the earnings outlook for Rockwood has. The last time estimates were at these levels shares were trading much higher, giving ROC plenty of upside, not to mention the earnings momentum should bring the stock up as well.
Read the June 3rd Feature Here
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
Last Week’s Aggressive Growth Zacks Rank Buy Stocks
Rudolph Technologies (RTEC) once again topped Wall Street’s expectations, which caused analysts to raise estimates that are now approaching pre-recession levels. Read Full Article.
CAI International (CAP) is doubling its investment for this year to meet growing demand. Additionally, the company recently posted its sixth earnings surprise in the past 7 quarters. Read Full Article.
DG FastChannel (DGIT) recently reported excellent quarterly results. Estimates are climbing and the recent volatility has created a great value as well. Read Full Article.
Lear Corp (LEA) nears its 52-week high, but thanks to drastic estimate revisions shares remain a solid value as well. Read Full Article.
ROCKWOOD HLDGS (ROC): Free Stock Analysis Report
Zacks Investment Research
