Polypore International, Inc. Earnings: Five Quarters in a Row of Expanding Margins, Net Income Climbs

Polypore International, Inc. (NYSE:PPO) reported net income above Wall Street’s expectations for the most recent quarter. Polypore International Inc. is a global technology filtration company which develops, manufactures and markets specialized microporous membranes used in separation and filtration processes.

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Polypore International Earnings Cheat Sheet for the Second Quarter

Results: Net income for Polypore International, Inc. rose to $29.5 million (63 cents per share) vs. $15.9 million (34 cents per share) in the same quarter a year earlier. This marks a rise of 85% from the year earlier quarter.

Revenue: Rose 30.8% to $196.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PPO beat the mean analyst estimate of 56 cents per share. It beat the average revenue estimate of $187.2 million.

Quoting Management: Robert B. Toth, Chairman, President and Chief Executive Officer, said: “The results for the quarter reflected strong demand and excellent manufacturing performance across our businesses, as well as the benefit of new capacity in lithium battery separators which was promptly qualified by our customers. We are continuing to make significant investments in capacity, and look forward to the incremental benefit of these investments beginning in late 2011.”

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 21.4%, with the biggest boost coming in the most recent 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 3.8 percentage points to 44.6% from the year earlier quarter. Over that span, margins have grown on average 2.8 percentage points per quarter on a year-over-year basis.

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

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)

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