Matrixx Initiatives Inc.

Matrixx Initiatives, Inc. (MTXX - Snapshot Report) blew away analyst estimates, driven by strong organic sales growth for its fourth consecutive earnings surprise.

Company Description

Matrixx Initiatives, Inc. is a nutrient and drug delivery technology company engaged in the development, manufacture and marketing of delivery systems for bioactive compounds. Gel Tech, LLC, its wholly-owned subsidiary, produces, markets and sells over-the-counter treatments under the Zicam name.

Sales up 26%

In the latest earnings announcement, on Jan 26, Matrixx reported earnings per share of 50 cents. The consensus was just 31 cents making it a 61% and fourth consecutive surprise. Matrixx posted a 7 cent loss in the third-quarter of last year.

A 26% spike in sales was the main driver behind the excellent quarter, specifically the company's Cold Remedy swabs and new Allergy swabs.

Revisions and Growth

Analysts have upped their estimates over the past 3 months, with just a slight pull back for the current year. The consensus for full-year 2009 is now $1.35, up from $1.27, a 29% growth rate.

Estimates for 2010 are now averaging $1.62, up from $1.55, and represent a year-over-year increase of 20%.

Despite high growth rates, shares are trading at good valuations. The P/E ratio is just 9.1 times earnings and the stock carries a PEG ratio of only 0.7.