Apparently the fun never ends at Lamson & Sessions (NYSE:LMS), the maker of plastic electrical boxes, conduit, and wiring devices for the home, telecom, and industrial markets. No doubt investor relations is downright giddy to write its earnings guidance notes now that the company is raising estimates for revenues and profits for the first quarter.
Sales for the company are expected to rise 34% to 37% over last year's quarter, to a range of $132 million to $135 million. That's a 7% increase in guidance, given just last month, when management said it expected revenues to range between $123 million to $127 million. Profits are also expected to see big gains, rising to $8.8 million, or $0.56 per share, from $2.2 million last year, or $0.15 per stub. That's well above last month's guidance of $0.44 a share.
Over the past few quarters, Lamson & Sessions has been benefiting from increased raw material costs brought on by last year's devastating hurricanes, as well as increased orders -- from customers anticipating supply shortages -- across all of its business segments. It appears that even though the company had previously forecast a slowdown in the housing market, causing a 20% slide in its stock, the orders are still rolling in. Customers include big names like Verizon (NYSE:VZ) and AT&T (NYSE:T).
If the past few quarters are any guide, investors can probably expect at least another update between now and the April 28 earnings release date -- and it's more than likely to be another upward revision. Just look at how the company has been performing recently:
Revenues (in millions)
|
2006 |
2005 |
2004 |
2003 | |
|---|---|---|---|---|
|
Q1 |
$135(e) |
$98.8 |
$84.3 |
$79.4 |
|
Q2 |
n/a |
$124 |
$103.5 |
$87.1 |
|
Q3 |
n/a |
$128.1 |
$106.4 |
$95.3 |
|
Q4 |
n/a |
$143.3 |
$93 |
$82.1 |
|
Total |
n/a |
$494.2 |
$387.2 |
$343.9 |
Percent Change
|
2006 |
2005 |
2004 | |
|---|---|---|---|
|
Q1 |
36.6(e) |
17.2 |
6.2 |
|
Q2 |
n/a |
19.8 |
18.8 |
|
Q3 |
n/a |
20.4 |
11.6 |
|
Q4 |
n/a |
54.1 |
13.3 |
|
Total |
n/a |
27.6 |
12.6 |
Both revenues and the rate of growth of those revenues continue to swell, while earnings show similar expansion. While Lamson & Sessions says it's able to raise expectations because of "encouraging sales order activity," investors can be equally encouraged that the company is performing solidly.
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Fool contributor Rich Duprey does not own any of the stocks mentioned in this article. The Motley Fool has a disclosure policy.
