(USAP) - Revenues also hit an all-time high, increasing 27.8%

Universal Stainless & Alloy Products, Inc. (USAP), which was introduced as a Value stock on Apr 27, continues to beat analysts' earnings expectations. The company has now topped the Street's estimate for 11 consecutive quarters by an average margin of 19.9%. Consensus estimates for both this quarter and the full year have increased over the past seven days. This Zacks #1 Rank stock has a price-to-book ratio of 2.1, compared to 5.4 for the market. Full Analysis Universal Stainless & Alloy Products, Inc. manufactures and markets semifinished and finished specialty steel products, including stainless steel, tool steel and other alloyed steels. The company's products are sold to rerollers, forgers, service centers, original equipment manufacturers and wire redrawers. When USAP was first presented as a Value stock on Apr 27, its strong history of exceeding analysts' earnings expectations was noted. At the time, the company topped estimates for nine straight quarters. Since its debut, USAP added two additional surprises, with its average margin of surprise over the past 11 quarters being 19.9%. Moreover, consensus estimates continue to trend higher and the company is still trading at a discounted valuation. On Oct 19, USAP reported third-quarter profits of $5.7 million, or 86 cents per share. The result represented a record for the company and crushed the Street's estimate of 67 cents by 28.4%. Compared to the prior-year period, earnings ballooned 68.6%. Revenues also hit an all-time high, increasing 27.8% to $55.1 million. President and CEO Mac McAninch stated, “Continued robust aerospace demand, coupled with strong petrochemical and power generation markets, enabled us to achieve record results for the third quarter of 2006.” For the first nine months of the year, profits soared 49.5% to $14.2 million and revenues experienced a 15.7% leap to $148.1 million. Both numbers marked new highs for the company. USAP expects favorable conditions in its end markets continuing into 2007 and beyond. The company increased revenues, expanded gross margins and grew profits for the past two years. The consensus estimate for this quarter currently resides at 73 cents. This represents a 7.4% jump when compared to the consensus a week earlier. For the full year, profit forecasts increased 9.1% to $2.88. USAP is currently trading at a valuation of 11.1x trailing 12-month earnings and at 10.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.3x trailing 12-month earnings and at 16.3x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.1, compared to 5.4 for the market. 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