Compass Minerals International Inc.

Compass Minerals International Inc. (CMP - Snapshot Report) has had an amazing run in 2008. The company's stock price has more than doubled, opening the year trading at $40 and recently moving past the $82 mark. Compass's first-quarter results were impressive, posting an 88% jump in income from just last year. With robust demand and strong pricing power to boot, this stock looks well positioned to continue its upward ascent.

Compass Minerals International Inc. produces inorganic mineral products in North America and the U.K. Its two primary business segments are salt and specialty fertilizer. The company was founded in 1993, carries a market cap. of $2.7 billion and is headquartered in Overland Park, Kansas.

Once again, a fertilizer company is stepping into the spotlight because of distinguished earnings and a supercharged stock price. Compass Minerals reported first-quarter earnings in late April that demonstrate why these companies are in favor with investors.

First-Quarter Results

Sales were up 44% from last year to $380 million. Net income up 88% from last year to $49.1 million, producing earnings of $1.48 per share, safely ahead of analyst estimates of $1.27 per share.

This marks the second time in two quarters that Compass has easily beaten analyst estimates, having done so by 24% last quarter after reporting earnings of $1.31 per share.

Compass said that the solid quarterly results were driven by exceptional sales in North America coupled with strong pricing power.

Cash In Hand

At a time when plenty of companies are struggling to maintain liquidity, Compass is padding its coffers with cash. The $145.5 million that the company reported in cash flow from operations was an 88% improvement from last year and can be used as leverage when exploring opportunities down the road.

Compass's current-year estimate is up two cents in the last thirty days to $3.90 per share.

The Chart

As previously mentioned, shares of Compass have had a great run in 2008, starting the year trading below $40 and recently toping off at over $82, a very impressive 100% return. Moving forward, this stock needs to clear the level just above $83, the 52-week and all-time high, in order to advance into uncharted territory. But as it has demonstrated already, this is a company that has the growth in earnings to back up a strong stock price. And that bodes well for investors. Take a look at the chart below.