Hweb - USAP
I am in this one and hope you will take a minute to comment on the earnings report. NICE FIND here is your first post upon discovering it:
Posted by: hweb2
In reply to: None Date:6/10/2005 2:44:57 PM
Post #of 16680
Anyone following USAP? Looks like a good play on the aerospace recovery. Stock seems cheap in the $12's. Q1 earnings of .45/share vs. .04/share last year. Q1 revenues up 102%.
Guided for Q2 revenues of $40-$45M vs. $29M last year. Guided for Q2 earnings of .40-.45/share vs. .25/share last year. Huge backlog of $88M, up sequentially from $72M. Q3 could be better than Q2 as earnings PR noted backlog increase was due to products that will not ship until Q3 and beyond.
I think USAP will surpass their Q2 estimates like they did in Q1. Even though the steel sector is weak, this company focuses on niche markets like aerospace, petrochemical, power generation, etc. Said in the earnings PR and on the CC that demand in all of their markets remains strong. Company announced a couple of price increases in Q2 and they're also adding another remelt furnace to meet demand. The 5/7/05 PR commented that backlog to melt VAR products increased 10% in April despite running current furnaces 24-7. Should bode well for Q2 results.
You ARE The Man!!!!
Thanks,
Kipp
