By Zacks.com
Polypore International, Inc. (PPO) reported its third consecutive earnings miss on February 20, driven by a 6% decline in sales. This prompted analysts to revise their estimates for both 2013 and 2014 significantly lower, sending the stock to a ZacksRank #5 (Strong Sell).
Despite the negative earnings momentum, shares still trade at a premium on a forward price-to-earnings and price-to-book basis. This doesn’t bode well for shares over the next several weeks.
Company Description
Polypore International is a high technology filtration company that develops, manufactures and markets specialized polymer-based microporous membranes used in separation and filtration processes. Its products are used in two primary segments: energy storage (75% of total sales) and separations media (25%).
The company is headquartered in Charlotte, North Carolina and has a market cap of $1.8 billion.
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Fourth Quarter Results
Polypore reported fourth quarter results on February 20. Adjusted earnings per share came in at 33 cents, falling well short of the Zacks Consensus Estimate of 46 cents. It was the company’s third consecutive earnings miss.
Sales declined 6% to $180.2 million, falling well short of the consensus of $191.0 million. The ‘Electronics and Electric Drive Vehicles (EDVs)’ division within the energy storage segment was particularly soft due to weak end-market demand.
Estimates Falling
Following the Q4 earnings miss, analysts revised their estimates significantly lower for both 2013 and 2014. This sent the stock to a Zacks Rank #5 (Strong Sell). The 2013 Zacks Consensus Estimate is now $1.69, down from $2.08 just 30 days ago. And the 2014 consensus is now $2.21, down from $2.73. You can see this sharp decline in the company’s ‘Price & Consensus’ chart: …read more
Source: FULL ARTICLE at Forbes Markets