Olin Corporation's (NYSE:OLN) share price has been steadily advancing for most of the year, recently hitting a new 52-week and all-time high above $29. This recent price strength comes on the heels of the company's strong second-quarter results in which revenue was up 38% from the same period last year.
Olin Corporation manufactures and sells industrial chemical products to commercial customers in the United States. The company was founded in 1892, has a market cap of $2.12 billion and is headquartered in Clayton, Missouri.
Olin Corp reported solid second-quarter results on Friday, July 25 that gave the company's stock price a big jolt. Sales for the quarter were up 61% from the same period last year to $428.3 million. Including the company's acquisition of Pioneer, net income totaled $35.5 million, up from $21.9 million last year. This produced earnings of 47 cents per share, 3 cents less than analysts had been projecting.
CEO Joseph Rupp sounded off on the company's result's, saying that, "Chlor Alkali earnings improved 27% compared with the second quarter of 2007, which reflects the contributions and synergies of the Pioneer acquisition and improved pricing."
Olin also raised its guidance when reporting its most recent quarterly results. The company is projecting third-quarter earnings of 70 cents, far ahead of analyst estimates of 58 cents per share.
The current-year estimate now stands at $2.34 per share, up from $1.91 90 days ago. Based upon this earnings projection, this stock looks attractively priced, carrying a forward P/E multiple of 12X.
Shares of OLN have produced excellent gains in 2008, recently hitting a new 52-week and all-time high just above $29. After pulling back a little bit, this stock appears to be finding some short-term support at the $28 mark. Take a look at the chart below.