) reached a 52-week high of $87.24 on Thursday, Mar 6, 2014.
However, the stock closed at $87.24, representing a one-year
return of about 28.06% and a year-to-date return of about 3.26%.
Average volume of shares traded over the last three months is
approximately 5, 32,617.
Pall's strong Industrial end markets, improved operational
execution, favorable impact of the structural cost actions and
reasonably strong second-quarter 2014 results are some of the
growth catalysts for the company.
Pall delivered positive earnings surprises in the last four
quarters with an average beat of 1.90%. This Zacks Rank #3 (Hold)
company has a market cap of $9.62 billion and long-term expected
earnings growth rate of 12.9%.
Pall Corp. enjoys remarkable financial returns and reasonable
growth prospects due to several factors, including its superior
technology, reliable global distribution, notable acquisition
strategy, high share in market niches, long and close working
histories with customers, few competitors and solid product
quality supplemented by technical service. The company's
biopharmaceutical business is expected to grow significantly in
the long run driven by increased funding in biotechnological
research, rising demand for single use and disposable products
and an increasing number of drugs and vaccines getting approved
Cost reduction and restructuring initiatives taken by the
company have resulted in encouraging revenues and orders. Pall
Corporation appears to be taking a more determined approach to
cost management through its business realignment and core
programs. The company saved $50 million during fiscal 2013 by
reducing (SG&A) expenses along with other costs. It expects
to save another $50 million in the next couple of years. Further,
the company has also divested one of its businesses dealing in
non-core Blood product lines, while having acquired a
strategically fit LifeSciences business.
Modest 2Q14 Earnings
Pall Corporation reported fiscal second-quarter 2014 (ended
Jan 31, 2014) pro forma earnings of 82 cents a share, 2.5% above
the Zacks Consensus Estimate of 80 cents. Earnings for the
quarter also beat the prior-year quarter's earnings of 73 cents a
share by 12%. The reported earnings per share (EPS) included a 4
cent negative impact of foreign currency translation.
Total revenue in the quarter increased 2.2% year over year to
$677.0 million, primarily attributable to modest Life Sciences
sales and an improvement in the Industrial business.
Over the last 7 days, 3 of the 9 estimates have been revised
upward for the next quarter, while for fiscal 2014 and 2015, 1 of
11 estimates has been revised upward. However, the Zacks
Consensus Estimate remained stagnant at $1.06 for the next
quarter and at $3.14 for fiscal 2014.
The company is expected to deliver an upbeat performance in
fiscal 2014 driven by recovering economic conditions and the
strategic initiatives taken by it, including increased
investments in R&D and innovation.
Other Stocks to Consider
Investors interested in the pollution control sector can
Sharps Compliance Corp.
) holding a Zacks Rank #1 (Strong Buy), and
Pure Cycle Corp
Tetra Tech Inc
), both carrying a Zacks Rank #2 (Hold).
PURE CYCLE CORP (PCYO): Free Stock Analysis
PALL CORP (PLL): Free Stock Analysis Report
SHARPS COMPLIAN (SMED): Free Stock Analysis
TETRA TECH NEW (TTEK): Free Stock Analysis
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