(CRDN) - Profit forecasts for this quarter and next quarter rose 11.8% and 13.1%, respectively, over the past 60 days

Ceradyne, Inc. (CRDN), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in 14 out of the past 15 quarters by an average margin of 21.2%. The company reported record profits and revenues for the second quarter in early August, as well as for the first six months of 2006. As a result, CRDN upped its 2006 revenue and earnings per share guidance. The company has a price-to-book ratio of 3.4, compared to 5.3 for the market. CRDN's PEG ratio is 0.63. Full Analysis Ceradyne, Inc. develops, manufactures and markets advanced, technical ceramic products and components for defense, industrial, automotive/diesel, electronic and medical markets. When it comes to beating the Street's earnings estimate, CRDN is about as reliable as you can get. Over the past 15 quarters, the company exceeded analysts' expectations on 14 occasions by an average margin of 21.2%. In the one quarter where it failed to surprise, it did manage to meet expectations. On Aug 4, CRDN reported record profits of $30.0 million or $1.10 per share. The results absolutely crushed the $11.4 million, or 46 cents per share, achieved in the prior-year period. Revenues also hit an all-time high, soaring 80.2% to $162.0 million from $89.9 million in second quarter of 2005. For the first six months of the year, profits came in at $54.6 million, versus $17.4 million for the first six months of 2005. Revenues ballooned 86.9% to $298.4 million. Total backlog was up 19.0% to $256.6 million. All three also represented records for the company. CRDN raised its full-year 2006 revenue guidance to between $605 million and $625 million, and also upped its earnings per share outlook to between $4.20 and $4.35. Earnings per share are forecasted to grow 15.0% over the next 3-5 years. Consensus earnings estimates have been shooting upward. Profit forecasts for this quarter and next quarter rose 11.8% and 13.1%, respectively, over the past 60 days. Six analysts submitted upward revisions for both quarters. Estimates for this year and next are up 8.1% and 3.4%, respectively, over the same period of time. Six analysts bumped up their earnings projections for this year, while five followed suit for next year. CRDN is currently trading at a valuation of 12.5x trailing 12-month earnings and at 9.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.8x trailing 12-month earnings and at 15.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 3.4, compared to 5.3 for the market. CRDN's PEG ratio currently sits at 0.63. The company's return on equity is nearly six times that of the industry average—34% compared to 6%. 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