How Will Chase Corp. (CCF) Stock React To Its Second Quarter Earnings Results?

NEW YORK (TheStreet) --Chase Corp. (CCF), a manufacturer of protective materials for highly reliable applications, announced its 2014 second quarter net income was $4.52 million, a 71.2% increase from the $2.64 million for the year ago quarter.

Earnings per diluted share were 48 cents for the most recent quarter, compared to 29 cents for the 2013 second quarter.

Chase saw a 5.8% increase in revenue for the 2014 second quarter to $51.2 million, compared to $48.4 million from the same period last year.

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Shares of Chase Corp. fell -0.80% to $34.89 at the close on Tuesday.

Separately, TheStreet Ratings team rates CHASE CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHASE CORP (CCF) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 65.51% and other important driving factors, this stock has surged by 62.65% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CCF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CHASE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, CHASE CORP increased its bottom line by earning $1.88 versus $1.03 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 71.0% when compared to the same quarter one year prior, rising from $2.64 million to $4.52 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.1%. Since the same quarter one year prior, revenues slightly increased by 5.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CCF has a quick ratio of 2.32, which demonstrates the ability of the company to cover short-term liquidity needs.
  • You can view the full analysis from the report here: CCF Ratings Report
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