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Taminco Corporation Upped to Strong Buy on Q3 Earnings - Analyst Blog

Zacks Investment Research upgraded Taminco Corporation ( TAM ) to a Zacks Rank #1 (Strong Buy) on Nov 20, 2014. Going by the Zacks model, companies holding a Zacks Rank #1 have strong chances of performing better than the broader market.

Why the Upgrade?

Taminco Corporation's third-quarter 2014 results were impressive. The announcement on Nov 6 was followed by positive market reactions. Since then, the company's share price gained 0.3% while its earnings estimates have been increased for 2014 and 2015. A brief discussion on the third-quarter results is provided below:

Earnings came in at 43 cents per share, increasing 72% from the Zacks Consensus estimate of 25 cents and way above the year-ago figure of 9 cents per share. Revenues rose 22% year over year on the back of solid demand in the Specialty Amines and Crop protection businesses. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) expanded 15% year over year, with a margin of 21%.

For 2014, Taminco Corporation maintained its EBITDA forecast in the range of $290−$295 million. The company is also in the process of merging with Eastman Chemical Company ( EMN ) for a cash consideration of $26.00 per share.

Over the last 30 days, the Zacks Consensus Estimate for Taminco Corporation has increased 4.8% to 87 cents per share and 0.9% to $1.07 for 2015. Also, the company has an Earnings ESP of +1.15% for 2014.

Other Stocks to Consider

Taminco Corporation currently has a $1.7 billion market capitalization. Other stocks worth considering in the chemical industry include Minerals Technologies Inc. ( MTX ) and NL Industries Inc. ( NL ), sporting the same rank as Taminco.

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TAMINCO CORP (TAM): Free Stock Analysis Report

EASTMAN CHEM CO (EMN): Free Stock Analysis Report

MINERAL TECH (MTX): Free Stock Analysis Report

NL INDS INC (NL): Get Free Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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