Lubrizol Corp.

Lubrizol Corp. (LZ) continues to see higher Zacks Consensus Estimates and stellar share price momentum after delivering a strong second quarter. Shares have been hitting fresh 52-week highs and are currently trading slightly below that level.

Company Description

Lubrizol Corporation makes chemical that are used for improving the quality and performance of products used in the global transportation, industrial and consumer markets.

This involves production of lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. Lubrizol also makes ingredients and additives for personal care products and pharmaceuticals.

The company describes its products as ones that enhance the quality, performance and value of its customers' products while reducing their environmental impact.

Lubrizol is headquartered in Wickliffe, Ohio. The company owns and operates manufacturing facilities in 19 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,800 employees worldwide. Revenues for 2008 were $5.0 billion.

Bullish Forecasts

The company continues to see higher Zacks Consensus Estimates and stellar share price momentum. Shares have been hitting fresh 52-week highs and are currently trading slightly below that level.

The full-year Zacks Consensus Estimate stands at $5.88 per share, which was increased from $4.25 over the past 2 months. For the following year, the Zacks Consensus Estimate of $6.17 per share jumped from $5.78 in just the past month.

Shares of LZ have been soaring past the market. During the past 3 months, shares surged more than 30% ahead of the major averages.

A Strong Quarter

The company saw second-quarter earnings of $2.02 per share, eclipsing the previous year's $1.26 and the Zacks Consensus Estimate of $1.86. Revenues of $1.11 billion were down 17.7% year-over-year.

Management said the company benefited from ongoing margin management initiatives and decisive cost reduction actions, adding that the company’s strong results highlight the cumulative impact of Lubrizol’s efforts to build and sustain market leadership positions while providing the innovative technology that is valued by customers.

Favorable Comparisons

Lubrizol’s return on equity (ROE) of 19% tops the industry average of 9%. The Growth and Income pick also offers an industry-leading dividend yield of 2%.

Read the full analyst report on LZ