(GLYT) - exceeded earnings estimates in a remarkable 16 consecutive quarters

The Genlyte Group has exceeded earnings estimates in a remarkable 16 consecutive quarters, with seven of those periods registering double-digit surprises. Three analysts have raised their estimates for this year and next. Over the past 60 days, this year's estimates have risen 9.1% to $4.07 per share, while next year's numbers have jumped 9% to $4.62 per share. Full Analysis The Genlyte Group Incorporated (GLYT) engages in the design, manufacture, marketing, and sale of lighting fixtures, controls, and related products in North America. Its products include incandescent, fluorescent, light emitting diodes, and high-intensity discharge lighting fixtures; lighting controls; poles; and accessories for commercial, residential, industrial, institutional, medical, entertainment, hospitality, and sports markets, and task lighting for various other markets. Genlyte Group sells its products to distributors, electrical wholesalers, mass merchandisers, and national accounts. The company markets its products through the independent sales representatives and company direct sales personnel primarily in the United States, Canada, and Mexico. The company said in late-July that second-quarter profit surged 67 percent on a 16 percent jump in sales. Genlyte earned $35.9 million, or $1.09 per share, compared with $21.5 million, or 76 cents per share, for the same quarter in 2005. Revenue grew to $366.1 million from $316.2 million in the year-ago period. Analysts had expected 91 cents per share. Company officials said the company's focus on higher margin product lines and price increases helped Genlyte post higher sales and gross margins. Chairman, President and CEO Larry Powers said, "We are pleased to report second quarter increases in both sales and earnings. Our focus on higher margin product lines and the price increases helped us achieve higher sales and gross margins for the second quarter. We are pleased with the second quarter gross margin increase to 39.4% compared to 37.3% last year. The operating profit margin increased during the second quarter to 14.0% from 12.0%. These margin increases are primarily attributed to the effective price increases, increases in volume, and the benefit of mix from selling higher value added products." The company has exceeded earnings estimates in a remarkable 16 consecutive quarters, with seven of those periods registering double-digit surprises. Three analysts have raised their estimates for this year and next. Over the past 60 days, this year's estimates have risen 9.1% to $4.07 per share, while next year's numbers have jumped 9% to $4.62 per share. GLYT is attractively valued with a PEG ratio less than 1.0. The stock is currently trading at 14.3x next year's estimates, below the company's projected long-term growth rate of 20.50%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home