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January 26, 2011
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One of major BUSINESS is in car seperatorsfor car batteries - lithium ion batteries should split battery business
$500 seperator business in every chevy volt per TV info
Next earnings release: Feb 23 after market, confirmed. Thomson Reuters estimate: 0.34
Earning beat history It stayed in penality box for 30 days after earning on Nov 3 - since Dec it has gone up 20% plus - based on growth story mostly for Hybrid Electric cars
03-Nov-10 Earnings PPO in line
04-Aug-10 Earnings PPO beats by $0.09
05-May-10 Earnings PPO beats by $0.17
24-Feb-10 Earnings PPO beats by $0.19
04-Nov-09 Earnings PPO beats by $0.05
05-Aug-09 Earnings PPO beats by $0.01
06-May-09 Earnings PPO misses by $0.02
25-Feb-09 Earnings PPO beats by $0.03
Still like the stock on a fundamental basis as it's a direct, but lesser known, play on hybrid and electric vehicles (EDVs). It also has a good amount of exposure to consumer electronics, a sector that has been seeing strong demand. Overall sales growth has slowed and should remain slow for the near term (analysts forecast just +5% growth in Q4 and +9% in Q1). The slowdown in sales is due to tougher comps and there appear to be some capacity constraints. On its Q3 earnings call, the company said all of its production facilities are operating at very high capacity utilization rates. However, the stock keeps charging higher because investors are focusing on its lithium battery separator business segment (which is benefitting from strong demand for consumer electronics and EDV batteries). Revenue for this segment jumped 46% in Q3 to $34.1 million. It is PPO's legacy segments that are weighing down overall sales growth.
Polypore International, Inc., a technology filtration company, develops, manufactures, and markets microporous membranes used in separation and filtration processes. It operates in two segments, Energy Storage and Separations Media. The Energy Storage segment offers membranes that provide the function of separating the cathode and anode in various applications, including personal electronic devices, cordless power tools, electric drive vehicles, and electricity grid storage systems. Its membranes are also used in lead-acid batteries that are used in transportation and industrial applications. The Separations Media segment provides membranes that are used as high technology filtration element in various medical and industrial applications. Its membranes are used in applications, such as hemodialysis, blood oxygenation, plasmapheresis and various high-performance microfiltration, ultrafiltration, and gasification/degasification applications. Polypore International, Inc. sells its products to manufacturers and converters who incorporate its products into their finished goods.
Please do your own home work