Went Long Ameron - AMN at 89.90
Company earnings report disappointed Wall St on Weds.
However they raised their dividend by 20%.
Forward P/E = 11.4
P/S = 1.36
Blurb from Street.Com on March 27
Ameron AMN manufactures highly engineered products and materials for the chemical, industrial, energy, transportation and infrastructure markets worldwide. Products include high-performance coatings and surfacer systems for the preservation of structures, molded fiberglass pipe and fittings and ready-mix concrete. The company has plants in Arkansas, California, Oklahoma, Texas and Washington -- and through subsidiaries in Australia, Colombia, Malaysia, the Netherlands, New Zealand, Saudi Arabia and Singapore.
Ameron has been rated a buy since June 2005. On March 26, the company reported solid results for the first quarter of 2008. Net income was reported as $9.7 million, representing a 15% increase year over year. Earnings per share increased 14%, and sales totaled $149.8 million in the first quarter, which represented an increase of 24%. The earnings improvement was driven by continued growth of the Fiberglass-Composite Pipe Group and the ready-mix concrete and aggregates business in Hawaii.
The company's chairman and CEO announced that the results for the first quarter represent a positive start for fiscal year 2008. The quarterly earnings results were in line with the company's expectations. Management continues to expect solid operating results in 2008, and despite uncertainty regarding the direction of the economy, the company is optimistic about its prospects for growth. Bear in mind, however, that the building products industry's performance is cyclical, depending on the overall health of the U.S. economy. The state of the housing and auto markets in particular could impact this industry and, therefore, this stock.
>>> More:
Ameron International Corp.(AMN) 3/26/08
posted a 15% year-over-year rise in fiscal first-quarter
earnings, but the results fell short of Wall Street expectations,
sending shares tumbling 21%.
The Pasadena, Calif., industrial-products maker said Wednesday its
first-quarter net income rose to $9.74 million or $1.07 a share,
from $8.47 million, or 94 cents, in the prior-year period,
bolstered by results from the company's Fiberglass-Composite
Pipe group and the concrete and aggregates business in Hawaii.
The two analysts polled by Thomson Financial expected
first-quarter per-share earnings of $1.15 to $1.44.
Ameron shares were recently down $25.45, or 21%, at $97.34,
after falling as low as $91.98, the stock's lowest level in
more than a month.
"There is some uncertainty regarding the direction of the
economy, but we expect solid operating results in 2008," said
Ameron Chairman and Chief Executive James S. Marlen, in a press
release. "Long term, I remain quite optimistic regarding the
company's growth prospects and performance."
Sales for the period rose 24% to $149.8 million from $120.4
million a year earlier, while analysts expected revenue of
$137.5 million to $139.3 million.
>>> more
Ameron International's Big Let Down
Carl Gutierrez, Forbes 03.26.08, 3:35 PM ET
Weeks of high hopes for Ameron International went up in smoke
after the manufacturer gave a weaker-than-expected quarterly
report Wednesday.
For the quarter the Ameron International (AMN) reported a 24.4%
gain in sales to $149.8 million from $120.4 million reported
in last year's corresponding quarter. Ameron's earnings also
enjoyed a healthy jump of 14.1% to $9.7 million, or $1.07 per
share, from $8.5 million, or 94 cents per share, reported later year.
While the quarter's sales were a good beat ahead of Wall Street's
forecast of $138.7 million, its earnings fell short of the
Street's $11.8 million, or $1.30 per share. The market didn't
take the news well though and sent the Pasadena, Calif.-based
company's shares tanking 24.6%, or $30.69, to $92.10, in
afternoon trading.
Ameron makes products and materials for the chemical, industrial,
energy, transportation and infrastructure markets.
One industry analyst, who requested anonymity, felt the drop in
stock was too severe, though, and speculated much of the plunge
was simply due to the stocks run-up ahead of the announcement.
Prior to Wednesday's drop, Ameron's shares have risen 11.3%
since the beginning of March, and 33.3% since the beginning of
the year. By comparison, the S&P 500 Index risen 1.1% since the
beginning of the month, and dropped 8.6% since the beginning
of 2008.
Looking at the quarter's earnings, the analyst noted that quarterly
figures for the company will be volatile, and advised investors
to instead look at the company's performance on an annual basis.
"They've consistently done well in that respect," the analyst said.
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