A month has gone by since the last earnings report for Calgon Carbon Corporation . Shares have added about 5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Calgon Carbon’s Q1 Earnings Beat Estimates, Sales Trail
Calgon Carbon reported net income of $0.8 million or $0.02 per share in first-quarter 2017, compared with profit of $5.5 million or $0.11 per share recorded a year ago.
Barring one-time items, adjusted earnings were $0.10 per share that marginally beat the Zacks Consensus Estimate of $0.09.
Calgon Carbon recorded revenues of $142.7 million in the reported quarter, up around 18.7% year over year. However, sales fell short of the Zacks Consensus Estimate of $143 million. The increase in sales is mainly due to contribution of newly acquired activated carbon and filtration media business which offset the negative impacts from currency translations.
Segment Performance
Revenues from the company’s core Activated Carbon segment increased 14.7% year over year to $126.2 million in the reported quarter. The increase was mainly due to higher mercury removal, potable water and specialty market product sales in the American market, offsetting the impact of lower activated carbon pellet sales in Japan and Europe.
The Alternative Material segment’s revenues increased around 412% year over year to $12.8 million as the perlite filtration and diatomaceous earth media products of New Business contributed $11 million to reported quarter sales.
Sales from the Advanced Water Purification segment declined 113.9% year over year to $3.6 million in the quarter due to lower ballast water equipment system and ion exchange project sales.
Financial Position
Calgon Carbon ended the quarter with cash and cash equivalents of $37.9 million, down roughly 0.2% year over year.
Long-term debt was $230.9 million, up roughly 5% year over year.
Outlook
According to Chairman, President and CEO, Randy Dearth, the company’s addition of the New Business and its exposure in various geographic regions and end markets helped to achieve revenues growth target of 18–20% in the first quarter. As expected, revenues from the industrial sector were in line with the prior-year quarter. The company is cautiously optimistic of the recovery of industrial sector.
The integration activities and projects aimed at capturing the synergies of the New Business are on track. The company expects the New Business to generate roughly $100 million in revenues for the full year. Calgon Carbon also sees potential year-over-year revenues growth from its legacy business this year on the back of continued strength in North American mercury removal and potable water markets, and increasing ballast water system sales later this year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted downward by 21.6% due to these changes.
VGM Scores
At this time, Calgon Carbon's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise sthat the stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.
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Calgon Carbon (CCC) Up 5% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Calgon Carbon Corporation . Shares have added about 5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Calgon Carbon’s Q1 Earnings Beat Estimates, Sales Trail
Calgon Carbon reported net income of $0.8 million or $0.02 per share in first-quarter 2017, compared with profit of $5.5 million or $0.11 per share recorded a year ago.
Barring one-time items, adjusted earnings were $0.10 per share that marginally beat the Zacks Consensus Estimate of $0.09.
Calgon Carbon recorded revenues of $142.7 million in the reported quarter, up around 18.7% year over year. However, sales fell short of the Zacks Consensus Estimate of $143 million. The increase in sales is mainly due to contribution of newly acquired activated carbon and filtration media business which offset the negative impacts from currency translations.
Segment Performance
Revenues from the company’s core Activated Carbon segment increased 14.7% year over year to $126.2 million in the reported quarter. The increase was mainly due to higher mercury removal, potable water and specialty market product sales in the American market, offsetting the impact of lower activated carbon pellet sales in Japan and Europe.
The Alternative Material segment’s revenues increased around 412% year over year to $12.8 million as the perlite filtration and diatomaceous earth media products of New Business contributed $11 million to reported quarter sales.
Sales from the Advanced Water Purification segment declined 113.9% year over year to $3.6 million in the quarter due to lower ballast water equipment system and ion exchange project sales.
Financial Position
Calgon Carbon ended the quarter with cash and cash equivalents of $37.9 million, down roughly 0.2% year over year.
Long-term debt was $230.9 million, up roughly 5% year over year.
Outlook
According to Chairman, President and CEO, Randy Dearth, the company’s addition of the New Business and its exposure in various geographic regions and end markets helped to achieve revenues growth target of 18–20% in the first quarter. As expected, revenues from the industrial sector were in line with the prior-year quarter. The company is cautiously optimistic of the recovery of industrial sector.
The integration activities and projects aimed at capturing the synergies of the New Business are on track. The company expects the New Business to generate roughly $100 million in revenues for the full year. Calgon Carbon also sees potential year-over-year revenues growth from its legacy business this year on the back of continued strength in North American mercury removal and potable water markets, and increasing ballast water system sales later this year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted downward by 21.6% due to these changes.
Calgon Carbon Corporation Price and Consensus
Calgon Carbon Corporation Price and Consensus | Calgon Carbon Corporation Quote
VGM Scores
At this time, Calgon Carbon's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise sthat the stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.