Thursday, May 5, 2011

Polypore (PPO) - Star of the Day

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For the second consecutive earnings season, our old friend Polypore International (PPO) popped significantly on earnings day.



I am surprised by the magnitude (16 cents) of the beat since the one segment of the business that has investors excited (lithium) is relatively small, but the entire battery segment (i.e. energy storage) was strong this quarter. Lead acid battery separators was the line item out of left field, with a 33% year over year gain.  The less exciting separations media business only grew 12%, but is now approaching only 25% of quarterly revenue.

From the earnings report

In the quarter, sales for the Energy Storage segment were $136.6 million, an increase of $35.2 million, or 35%, compared with the prior-year period.
  • Sales of lead-acid battery separators were $94.5 million, an increase of $23.5 million, or 33%, compared with the prior-year period, with strength demonstrated across all geographic regions.
  • Lithium battery separator sales were $42.1 million, an increase of $11.7 million, or 39%. The increase reflects strong demand in consumer electronics, growing demand in Electric Drive Vehicles (EDVs) and the incremental benefit of new capacity during the quarter. 
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Via AP:

  • Polypore International Inc. said Wednesday that its profit climbed 47 percent in the first quarter, aided by higher revenue.   The company, which makes membranes for a variety of industrial uses including electronics, reported net income of $25.7 million, or 55 cents a share, for the three months ended April 2. That compares with net income of $17.5 million, or 38 cents a share, in the same quarter last year.
  • Revenue grew to $185.7 million, up from $145.3 million.
  • The results trumped analysts' consensus forecast for earnings of 39 cents a share on $165.2 million in revenue, according to FactSet.
  • Management said demand trends remain very positive.
[Feb 24, 2011: Polypore Impresses the Street]
[Dec 7, 2010: Polypore Surges Higher on Upgrade]
[Nov 4, 2010: Earnings Report Swamps Polypore]
[Aug 26, 2010: Polypore Introduced to Cramer Nation]

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