On Feb. 26, advanced technical ceramic maker Ceradyne (NASDAQ:CRDN) released fourth-quarter earnings for the period ended Dec. 31.

  • Net profit increased 135% to $37.7 million, up from $16.1 million in Q4 of 2005.
  • For fiscal 2007, management expects sales and earnings per share to be in the range of $720 million to $740 million and $5.20-$5.40, respectively.
  • The stock carries a sterling five-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$178.7

$114.2

56.6%

Net Profit

$37.7

$16.1

135.1%

EPS

$1.38

$0.63

119.0%

Diluted Shares

27.4

25.5

7.7%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

40.7%

36.7%

4.0

Operating Margin

31.2%

25.0%

6.3

Net Margin

21.1%

14.1%

7.1

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$204.1

$99.4

105.4%

Accounts Rec.

$77.2

$57.2

35.0%

Inventory

$73.1

$66.3

10.2%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$35.5

$23.3

52.2%

Long-Term Debt

$121.0

$121.0

0.0%



Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$139.2

$21.1

559.3%

Capital Expenditures

$36.0

$20.2

78.1%

Free Cash Flow

$103.2

$0.9

11432.8%



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