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What: Shares of mineral processor Amcol International
So what: Sales reached $222.4 million, easily topping the $206.7 million analysts had expected. Earnings per share also crushed analyst estimates of $0.24 for the first quarter by reaching $0.38 per share.
Now what: An improving global economy is expected to help push earnings higher as the year goes on. Management is going to double spending in its oil field business -- which accounts for more than two-thirds of the company’s revenues -- to exploit opportunities in Africa and South America. Before this crushing earnings report, Amcol’s forward P/E ratio was just 16, so I expect that to become even more attractive as analysts raise estimates for future quarters.
Interested in more info on Amcol International? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.