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Innophos Holdings Hits 52-Week High on Bright Prospects

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Shares of Innophos Holdings, Inc. reached a fresh 52-week high of $56.59 during its trading session on Dec 8. This apex improved upon the last 52-week high of $55.52 on Dec 7.

After the release of third-quarter 2016 results on Oct 27, shares of Innophos Holdings yielded a return of 34% − outperforming the return of 8.9% by the Zacks categorized Chemical Diversified industry.

Also, Innophos Holdings closed its trading session on Dec 8 at $56.48, yielding a solid year-to-date return of roughly 105%. The trading volume for the session was 0.1 million shares. Earnings estimate revisions for 2016 and 2017 indicate the stock’s potential for further price appreciation.

Growth Drivers

Innophos Holdings reported better-than-expected results in the third quarter, with earnings of 75 cents per share surpassing the Zacks Consensus Estimate of 66 cents by 13.64%. In addition, the bottom line improved 14% year over year as fall in costs of sales and other operating expenses more than offset decline in revenues in the quarter.  

Moreover, Innophos Holdings recorded an 11% increase in adjusted earnings before interest, tax, depreciation and amortization. Cash flow generated from operating activities grew 92%, while free cash increased, supporting the company’s organic and inorganic investment policies as well as rewarding shareholders.

In the quarters ahead, Innophos Holdings aims to reap benefits from its operational excellence, commercial excellence and strategic growth policies. The company believes that it might receive 75% of the $13−$15 million savings expected from operational excellence in 2016. Additionally, new contract wins will remain prime growth boosters.  

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for Innophos Holdings, Inc. inched up 1.9% to $2.65 for 2016 and 5.6% to $2.85 for 2017. These estimates represent year-over-year growth of 51.4% for 2016 and 7.6% for 2017.

INNOPHOS HLDGS Price and Consensus

 

INNOPHOS HLDGS Price and Consensus | INNOPHOS HLDGS Quote

With a market capitalization of approximately $1.1 billion, Innophos Holdings, Inc. currently sports a Zacks Rank #1 (Strong Buy). Other favorably placed chemical stocks include FMC Corporation (FMC - Free Report) , Koppers Holdings Inc. (KOP - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

FMC Corporation posted better-than-expected results in the last four quarters, with an average earnings surprise of 13.07%. Also, the earnings estimates for 2016 and 2017 have been revised upward for the past 60 days.

Koppers Holdings’ earnings for 2016 and 2017 have been revised upward in the last 60 days. Average earnings surprise is a positive 72.99% for the last four quarters. Moreover, Kronos Worldwide reported better-than-expected results in the last quarter, with a positive earnings surprise of 111.11%. In addition, earnings estimates for 2016 and 2017 improved over the past 60 days.

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