Polypore International Inc. Earnings Cheat Sheet: Margins Expand Again, Profit Rises

Polypore International Inc. (PPO) reported higher profit for the third quarter as revenue showed growth. Polypore International is a global technology filtration company that develops, manufactures, and markets specialized microporous membranes used in separation and filtration processes.

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Polypore International Earnings Cheat Sheet for the Third Quarter

Results: Net income for the industrial equipment and components company rose to $23.6 million (50 cents per share) vs. $12.4 million (27 cents per share) in the same quarter a year earlier. This marks a rise of 90.8% from the year earlier quarter.

Revenue: Rose 25.4% to $190.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PPO reported adjusted net income of 54 cents per share. By that measure, the company beat the mean estimate of 53 cents per share. Analysts were expecting revenue of $193.2 million.

Quoting Management: Robert B. Toth, President and Chief Executive Officer, said: “We are on track with our substantial capacity investments and the long term demand drivers remain strong across our businesses. In our lithium separator business, where demand continues to accelerate, we are focused on increasing capacity as rapidly as possible.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.1%, with the biggest boost coming in the second quarter when revenue rose 30.8% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 2.7 percentage points to 40.5% from the year earlier quarter. Over that span, margins have grown on average 3.1 percentage points per quarter on a year-over-year basis.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the second quarter, by 16 cents in the first quarter, and by 8 cents in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 62 cents per share from 61 cents. Over the past three months, the average estimate for the fiscal year has climbed from $2.21 per to share to $2.33.

Competitors to Watch: Altair Nanotechnologies, Inc. (NASDAQ:ALTI), Nanophase Tech. Corp. (NASDAQ:NANX), Celanese Corporation (NYSE:CE), W.R. Grace & Co. (NYSE:GRA), Media Sciences Intl. (MSII), Innospec Inc. (NASDAQ:IOSP), IKONICS Corporation (NASDAQ:IKNX), Calgon Carbon Corporation (NYSE:CCC), OM Group, Inc. (NYSE:OMG), and Ferro Corporation (NYSE:FOE).

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(Source: Xignite Financials)