Stepan Co.

Stepan Co. (SCL - Snapshot Report) crushed Wall Street expectations with its latest earnings report. Shared are moving sideways right now, but may resume the upward climb soon.

Company Description

Stepan Company produces specialty and intermediate chemicals which are sold to other manufacturers and then made into a variety of end products. They have three reportable segments: surfactants, polymers and specialty products.

Income Up 73%

Stepan reported first-quarter results on Apr 21 that included net income of $15.2 million, up 73% from $8.7 million. Earnings per share were $1.13, which beat the consensus by 39 cents, or 53%. This was the company's second consecutive surprise.

Estimates Spike

Following the earnings report, the consensus estimate for full-year 2009 rose 8 cents to $2.77, or a 13% year-over-year earnings growth rate. The estimate for 2010 is now $3.30, up 21 cents and representing a 19% growth rate.

Shares are trading with solid valuations. The forward P/E is just under 13 times. The stock is currently carrying a PEG ratio of 0.9.

The Chart

SCL has climbed steadily through late winter and early spring. However, shares have recently hit resistance near $41. Take a look at the chart below.

Read the full analyst report on SCL