Ceradyne (CRDN) Jumps by More Than 18%

Ceradyne, Inc. (CRDN - Snapshot Report) ran away with the Zacks #1 Rank List on Wednesday, as shares gained approximately 18.5%. It was the only company on the list to finish with double digits today, and also more than doubled the gain of the next performer.

Volume was almost 1.4 million shares Wednesday, compared to the daily average of about 184,000.

The spark for today's liftoff came when Ceradyne raised its 2011 guidance, thanks in part to increasing gross margins. The company now expects earnings per share between $2.35 and $2.70, compared to its earlier outlook of $1.50 to $1.90. It was also well ahead of the Zacks Consensus Estimate at $1.82.

Meanwhile, sales are now expected at $505 million to $560 million, instead of $470 million to $540 million.

Today's announcement will most likely lead to upward revisions in CRDN's earnings estimates, but that's nothing new for the company. In fact, expectations for 2011 and 2012 have been steadily advancing for months now.

For example, the Zacks Consensus Estimate for this year is $1.82 per share, which is up 21% in the past 2 months. It is also up 7.7% in 30 days and 2.8% in just the past 7 days. CRDN has enjoyed 6 upward revisions out of 8 total estimates in the past month, and 2 upward revisions in the past week.

As for 2012, the Zacks Consensus Estimate of $2.10 per share is up 22% in 2 months, 7.7% in 30 days and 1.9% in 7 days. The guidance for the year also suggests profit growth of more than 15% over 2011.

In its fourth quarter, CRDN announced earnings per share of 44 cents, which was 76% better than the Zacks Consensus Estimate at 25 cents. It was also the fourth positive surprise in the last 5 quarters for the company.

Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, energy, automotive/diesel, and commercial applications. Some of its products include ballistic armor, engine parts and industrial bearings.

CRDN is part of the elec – miscellaneous components industry. There are 4 other names from this space on today's Zacks #1 Rank List: Advanced Photonix, Inc. (API - Snapshot Report), Multi-Fineline Electronix, Inc. (MFLX - Snapshot Report), Polypore International, Inc. (PPO - Snapshot Report) and Pulse Electronics Corporation (PULS - Snapshot Report).

The performance of RailAmerica, Inc. (RA - Snapshot Report) may not have been as dramatic as that of CRDN, but it was still able to fight through a ho-hum day to become one of the best top performers. Shares gained 5.29% today on volume of practically 545,000 shares, compared to the daily average of nearly 380,000.

RailAmerica owns and operates short line and regional freight railroads in North America with a portfolio of 40 individual railroads and more than 7,000 miles of track in 27 states and 3 Canadian provinces. It is the only company from the transportation – rail industry on today's Zacks #1 Rank List.

Some sharp advances have been seen in RA's earnings estimates over the past 30 days. There are 12 total estimates for 2011, and 9 of them have moved higher in the past month while 2 have moved lower. The Zacks Consensus Estimate for this year is now 76 cents per share, which is up 13.4% in 30 days.

For 2012, there have only been 4 upward revisions out of 11 total estimates. However, that was still enough to lift the Zacks Consensus Estimate by 9% to 96 cents per share, compared to 88 cents a month earlier. The result also suggests year-over-year profit growth of more than 26%.

A solid fourth quarter report was behind the earnings estimate improvement. Late last month, RA announced adjusted earnings per share of 38 cents, compared to breakeven a year ago. The result soared past the Zacks Consensus Estimate by more than 245%.

Revenue moved higher by 17% to $127.6 million from $109.2 million. Freight revenue was up 13% and carloads advanced 4%. Non-freight revenue was up 34%.

RA also announced a $50 million share repurchase program.

J.C. Penney Company, Inc. (JCP - Analyst Report) also had a good session on Wednesday, gaining 4.76% on volume at 6.55 million shares. Normally, the average volume is around 4.2 million shares.

JCP is 1 of only 2 companies from the retail – regional department store industry on today's Zacks #1 Rank List. The other name is Dillard's Inc. (DDS - Analyst Report).

A few days ago, JCP announced that same-store sales for the 4 weeks ended Feb 26 were up 6.4%, as all divisions registered increases over last year. For more specifics, read J.C. Penney Reported Healthy Sales.

This sales report came only a few days after a solid fiscal fourth quarter announcement, in which JCP forecasted full fiscal year earnings per share between $2 and $2.10. The Zacks Consensus Estimate at the time was $1.80. It also sees same-store sales improving in the low to mid single digits.

As for the fiscal fourth quarter itself, earnings per share of $1.09 were 2 cents ahead of our consensus, while also topping the year-ago performance of 83 cents. Revenue was up 2.8% to $5.7 billion while same-store sales increased 4.5%. Read more on the quarter here: J.C. Penney Tops Estimates.

The past 30 days have seen all 15 estimates for this fiscal year, ending January 2012, revised higher. That unanimous agreement has pulled the Zacks Consensus Estimate upward by 15% to $2.07 per share, compared to $1.80 a month earlier.

Meanwhile, the Zacks Consensus Estimate for the fiscal year ending January 2013 is $2.40 per share, or practically 16% better than the current fiscal year. This guidance is up 10% in a month as 7 estimates out of 14 were revised higher.

Read the full analyst report on CRDN

Read the full analyst report on API

Read the full analyst report on JCP

Read the full analyst report on PPO

Read the full analyst report on DDS

Read the full analyst report on MFLX

Read the full analyst report on PULS

Read the full analyst report on RA