Quaker Chemical (NYSE: KWR - News) has been hot since being featured as a Zacks Rank Buy in early June.

Company Description

Quaker Chemical is a chemical company providing services and chemicals for the steel, auto, mining and various other industries. The Philadelphia-based company has over 1,200 employees and a market cap of about $250 million.

Another Big Surprise

On Jul 28 Quaker Chemical reported second-quarter results, showing a 33% increase in net sales, to $136 million. Earnings per share came in at 80 cents, which was 26 cents better than the Zacks Consensus Estimate. This was the company's sixth consecutive earnings surprise.

Great Outlook

In the same release, the CEO said Quaker Chemical is on pace to post record-setting earnings this year. The company saw strong demand in the BRIC countries as well as an ongoing recovery in North America and Europe.

Analysts Change Direction

Estimates had been tapering into that earnings announcement, but have since bounced past the previous highs. The Zacks Consensus Estimate for 2010 is up to $2.66, from $2.36 just before the release.

Next year's projections are averaging $2.93, up 12 cents on the news. Given these estimates, analysts are projecting a 57% growth rate this year and another 10% in 2011.

The Chart

Shares have been weakening as of late, due to overall market weakness, but you can't argue with that earnings picture. The Estimates have never been this high. Forward estimates are about 40% higher than they were the last time shares were trading at this level, leaving the P/E at just under 11 times.

Read the June 9th Feature Here

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

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