(BWY) BWAY Holding Co. – Aggressive Growth – Zacks Rank Buy

March 19th, 2009

BWAY Holding Co. (BWY) recently announced its third consecutive earnings surprise and should be growing steadily for the next few years.

Company Description

BWAY Holding Company is a leading North American manufacturer of general line rigid metal and plastic containers. The company operates in two segments, Metal Packaging and Plastic Packaging.

The Metal segment makes rigid metal containers made of steel that include aerosol cans, ammunition boxes, and many other various products from household items to automotive products. The Plastic segment makes injection-molded sealable containers for paint, petroleum, pharmaceuticals and many other products.

Solid Quarter

On Feb 4 BWAY announced first-quarter results for fiscal 2009 and reiterated full-year guidance. The company had a net loss of 10 cents per share, beating Wall Street estimates which were forecasting a loss of 14 cents. In the same quarter last year BWAY lost 18 cents.

Given the cyclical nature of the business the company typically posts its lowest results during this time of year.

“While we now anticipate 10%-12% lower overall volume for fiscal 2009 due to the prolonged economic downturn, we expect the cost reduction measures we implemented in fiscal 2008 and during our first fiscal quarter of 2009 to more than offset the effect of lower volume,” stated Ken Roessler, President and CEO.

Earnings Growth

Full-year earnings estimates have been climbing all year. The consensus for 2009 is now 87 cents, up from 83 cents in January. Estimates for 2010 are averaging $1.06, up from 85 cents in the same time frame.

These forecasts are projecting growth rates of 23% and 22% for 2009 and 2010, respectively.

The Chart

Shares of BWY are rising sharply and approaching a level of resistance. The stock has been responsive to this level with significant moves when breaking through, both on the way up and the way down. Take a look at the chart below.

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Read more on BWAY HOLDING COMPANY, Bway Holding at Wikinvest

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