Lubrizol Corp. – Growth And Income – Zacks Rank Buy
Source: http://www.zacks.com/commentary/11761/Lubrizol+Corp.+-+Growth+And+Income+-+Zacks+Rank+BuyPosted on Friday, August 7th, 2009 | In Market Commentary, Stocks to Watch
Lubrizol Corp. (LZ) has been hitting 52-week highs lately. The company recently posted a strong second quarter and hiked its 2009 earnings guidance.
Company Description
Lubrizol Corporation makes chemical that are used for improving the quality and performance of products used in the global transportation, industrial and consumer markets.
This involves production of lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. Lubrizol also makes ingredients and additives for personal care products and pharmaceuticals.
The company describes its products as ones that enhance the quality, performance and value of its customers’ products while reducing their environmental impact.
Lubrizol is headquartered in Wickliffe, Ohio. The company owns and operates manufacturing facilities in 19 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,800 employees worldwide. Revenues for 2008 were $5.0 billion.
A Strong Quarter
The company saw second-quarter earnings of $2.02 per share, eclipsing the previous year’s $1.26 and the Zacks Consensus Estimate of $1.86. Revenues of $1.11 billion were down 17.7% year-over-year.
Management said the company benefited from ongoing margin management initiatives and decisive cost reduction actions, adding that the company’s strong results highlight the cumulative impact of Lubrizol’s efforts to build and sustain market leadership positions while providing the innovative technology that is valued by customers.
The full-year Zacks Consensus Estimate for the current stands at $5.85 per share, which was increased from $4.25 in just the past month.
Shares of LZ have been soaring past the market. During the past 3 months, shares surged by more than 15% ahead of the major averages.
Favorable Comparisons
Lubrizol’s return on equity (ROE) of 19% tops the industry average of 11%. The Growth and Income pick also offers an industry-leading dividend yield of 2%.
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 About Alex Kolb (http://www.zacks.com/)
Alex Kolb is an Editor at Zacks Investment Research. |
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