American Italian Pasta Co (AIPC) analysts are raising estimates as the company approaches its next earnings announcement.

Company Description

American Italian Pasta is the largest dry pasta producer in North America. The company makes every type of pasta from spaghetti and linguine to ziti and egg noodles. Products are traditional pasta in addition to organic and a variety of wheat and whole grain based noodles.

The company was founded in 1986 and is now one of the fastest growing pasta producers, distributing through the U.S., Canada, and Mexico. American Italian Pasta is headquartered in Kansas City, employs roughly 650 people, and carries a market cap of just over $600 million.

Earnings Crush Expectations

On Feb 11 American reported first quarter results for fiscal 2009 that included net income of $26 million, up from $1.4 million one year ago. Earnings per share came in at $1.23 compared 7 cents for the same period in 2008.

Revenues rose 53% to $171 million, up from $112 million. Retail and institutional markets saw a 56% and 43% increase in revenues, respectively.

The announcement smashed Wall Street’s expectations whose estimates were averaging 43 cents per share. American’s great quarter is coming off the heals of its latest surprise, when they announced 54 cents per share compared to the consensus of 27 cents, last quarter.

Estimates Spike

When the company announced its previously mentioned results, analysts were quick to raise their estimates. The full-year consensus for 2009 is now $2.53, up from $1.79 90 days ago. Estimates for 2010 are now averaging $2.90, up from $2.20 over the same time period.

These projections are calling for 117% earnings growth this year and another 14% in 2010.

The Chart

Shares of AIPC have been very responsive to earnings announcements in the past. Look for that trend to continue when the company reports its next quarter on May 12.

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