Calgon Carbon Corp Earnings: Increasing Costs Tighten Margins as Net Income Falls

Calgon Carbon Corporation (NYSE:CCC) reported its results for the first quarter. Calgon Carbon is globally engaged in services, products, and solutions for purifying water and air.

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Calgon Carbon Earnings Cheat Sheet for the First Quarter

Results: Net income for Calgon Carbon Corporation fell to $7.7 million (14 cents per share) vs. $8.5 million (15 cents per share) a year earlier. This is a decline of 8.7% from the year-earlier quarter.

Revenue: Rose 9.8% to $136.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Calgon Carbon Corporation beat the mean analyst estimate of 12 cents per share. It beat the average revenue estimate of $132 million.

Quoting Management: John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, “Demand for activated carbon increased year-over-year, and pricing overall was stable. The sequential increase in Calgon Carbon Japan’s margins was a good start but, going forward we will intensify efforts to improve margins in all regions.”

Key Stats:

Gross margin shrank two percentage points to 31.3%. The contraction appeared to be driven by increased costs, which rose 13.1% from the year earlier quarter while revenue rose 9.8%.

Revenue has risen for the last four quarters. Revenue increased 5.1% to $138.2 million in the fourth quarter of the last fiscal year. The figure rose 15.5% in the third quarter of the last fiscal year from the year earlier and climbed 9.5% in the second quarter of the last fiscal year from the year-ago quarter.

The company’s net income has fallen for two quarters in a row. In the fourth quarter of the last fiscal year, net income fell 59% from the year-earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 11 cents versus a mean estimate of net income of 13 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 23 cents per share to 19 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from 91 cents a share to 78 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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