On Jul 30, Zacks Investment Research upgraded pollution
Calgon Carbon Corporation
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Calgon Carbon delivered impressive first-quarter 2013 results on
May 6. The company has delivered positive earnings surprises in
the last 2 of the 4 quarters with an average beat of 0.18%.
Calgon Carbon reported first quarter earnings of $0.18 per share,
up roughly 29% from $0.14 per share in the year-ago quarter,
exceeding the Zacks Consensus Estimate of $0.15.
Calgon Carbon remains confident in its ability to balance the
need for future investment with responsibility to provide
short-term returns. The company continues to focus on ballast
water treatment, reactivation services and mercury removal as its
basis for sustainable growth. It remains actively focused on
improving margins across all regions.
Calgon Carbon continues to make research and development
expenditures related to its advanced products aimed at
significantly reducing the amount of powdered activated carbon
(PAC) required for mercury removal from coal-fired power plant
flue gas as compared to competing products.
Calgon carbon plans to continue increasing its presence
throughout the world. The company completed the acquisition of
Calgon Carbon Japan KK in 2011, thereby strengthening its
position in the second largest carbon consuming market globally.
The company is also beginning to expand its operations in both
Mexico and South America.
Calgon Carbon has embarked on aggressive cost reduction
initiatives to boost margins. The company's cost improvement
program, which includes consolidation of operations and headcount
reductions, is expected to offer savings in raw material costs,
warehousing, transportation and personnel expenses, among others.
The company has already completed the first phase of this process
and will continue to implement the second phase of its cost
reduction program which specifically targets margin improvements.
Calgon Carbon has also initiated price increases on its activated
carbon products and services in early 2013 and expects these
increases to have a positive impact on both sales and margins
The Zacks Consensus Estimate for 2013 for Calgon Carbon has
gone up 2.4% to 84 cents per share as some of the estimates were
revised higher over the last 60 days. The Zacks Consensus
Estimate for 2014 has, however, remained stable at $1.05.
Other Stocks to Consider
CALGON CARBON (CCC): Free Stock Analysis
CECO ENVIRNMNTL (CECE): Free Stock Analysis
PURE CYCLE CORP (PCYO): Free Stock Analysis
PERMA-FIX ENVIR (PESI): Free Stock Analysis
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Other companies in the pollution control industry that are worth
Ceco Enironmental Corp.
Perma-Fix Environmental Services Inc.
Pure Cycle Corporation
). All of them carry a Zacks Rank #2 (Buy).