Calgon Carbon Earnings Cheat Sheet: The Streak is Broken

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

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Calgon Carbon Earnings Cheat Sheet for the Second Quarter

Results: Net income for the pollution and treatment controls company rose to $11.3 million (20 cents per share) vs. $2.9 million (5 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter.

Revenue: Rose 9.5% to $135.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CCC fell short of the mean analyst estimate of 21 cents per share. It fell short of the average revenue estimate of $139.5 million.

Quoting Management: Commenting on the quarter, John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, “Calgon Carbon’s performance for the quarter was solid, as sales strengthened and mix improved as the quarter progressed. Margins also improved sequentially, excluding the effect of the PreZerve inventory charge.”

Key Stats:

Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In the first quarter, net income fell 5.6% from the year earlier, while the figure fell 8.9% in the fourth quarter of the last fiscal year, 28.2% in the third quarter of the last fiscal year and 52.2% in the second quarter of the last fiscal year.

Gross margin shrank two percentage points to 32.8%. The contraction appeared to be driven by increased costs, which rose 12.9% from the year earlier quarter while revenue rose 9.5%.

Revenue has risen the past four quarters. Revenue increased 20.8% to $124.4 million in the first quarter. The figure rose 18.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 15.7% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 2 cents with net income of 15 cents versus a mean estimate of net income of 17 cents per share.

Competitors to Watch: Rockwood Holdings, Inc. (NYSE:ROC), Valhi, Inc. (NYSE:VHI), Kronos Worldwide, Inc. (NYSE:KRO), Sensient Tech. Corp. (NYSE:SXT), TOR Minerals Int’l, Inc. (NASDAQ:TORM), Arch Chemicals, Inc. (NYSE:ARJ).

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(Source: Xignite Financials)

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