The Andersons Inc.

The Andersons Inc. (ANDE - Analyst Report) recently raised its full-year earnings guidance twice within a 30-day period, underscoring the strength of demand the company is experiencing in its plant nutrient segment. The Anderson's second-quarter results were great and its share price has been steadily advancing in response to the bullish environment.

The Andersons Inc., in conjunction with its subsidiaries, operates as an agricultural producer and storage facilitator. The company was founded in 1947, has a market cap. of $836 million and is headquartered in Maumee, Ohio.

Guidance Spiraling Higher

Shares of ANDE have been on a big rally since late June after the company surprised the street and raised its earnings guidance.

The Anderson's pleased shareholders on June 26 when it raised its full-year earnings guidance, saying it now expected to earn between $4.40 and $4.80 per share, up from the previous range between $3.65 and $4.00 per share.

Amazingly, The Anderson's then proceeded to raise guidance once again in late July. Based upon strong demand in the company's nutrients group, it raised its full-year earnings guidance to between $5.00 and $5.40 per share.

Second-Quarter Results

Adding to the sizzle of The Anderson's stock price was the company's second-quarter results, reported on Aug 6. Revenue was up 74% from last year to $1.1 billion. Profit totaled $45.6 million, an increase of 78% from last year's $25.5 million. This produced earnings of $2.48 per share, blowing past analyst estimates of $2.19 per share.

Valuations

With the current-year estimate pegged at $5.20 per share, this stock still looks like a great buy even after the big run up, with a forward P/E multiple of just 8.8X, a steep discount to the overall market.

The Chart

As previously mentioned, shares of ANDE have been rallying for the last 6 weeks after the company provided a bullish outlook for investors and boosted its guidance twice within a month. As it stands, this stock is pressuring a key level of resistance just above $47. Take a look at the chart below.

Read the full analyst report on ANDE