Carbo Ceramics Inc.

Company Description

Carbo Ceramics Inc. develops and manufactures ceramic proppant used in the extraction process of natural gas and oil wells in the United States and internationally. The company was founded in 1987 and has a market cap of $1.38 billion.

Shares of CRR have more than doubled in the last 6 months, helped by an improving economy and the company's better than expected third-quarter results, reported on Oct 29.

Revenue was down 11% from last year on lower volume and selling prices to $91.8 million, but earnings came in better than expected at 62 cents per share, 20 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 4 quarters by an average of 12 cents, or 24%.

Estimates Flat

Estimates are mostly flat since the recent earnings release, with the current year standing at $1.97 per share and the next year pegged at $2.23, a 13% growth projection.

Valuation

Based on the current-year estimate, shares are trading at 30X, a premium to the overall market.

The Chart

Shares of CRR are up big over the last 6 months after bottoming out with the market in late March just above $26 and recently topping off above $62. Take a look below.

Read the full analyst report on CRR