Chart Industries, Inc. (GTLS), which manufactures equipment used in the production, storage and end-use of hydrocarbon and industrial gases, has faced challenging economic conditions since I last reviewed it in September 2008.

However, the company continues to surprise on estimates and post revenue growth. In April, the company surprised for the 7th consecutive quarter by a hearty 58.14%.

First quarter net income rose 33% to $19.5 million, or 68 cents per share, from $14.7 million, or 51 cents, in the year ago period. Analysts expected just 43 cents.

Sales were up 6% to $180.2 million from $170.3 million in the year ago period. However, the backlog continued to shrink, falling 23% to $307.5 million at the end of the first quarter compared to $398.8 million at the end of the fourth quarter of 2008.

The company is really feeling the slowdown in the energy industry in its orders which fell 30% year over year to $89.3 million from $126.9 million.

In April, Chart remained cautious about forecasting order activity in the second half of the year given the slowdown in the first quarter.

Consensus Estimates Holding for the Second Quarter

Covering analysts are also taking a wait-and-see type approach to estimates. Second quarter consensus estimates have been steady at 35 cents per share over the last 30 days.

Full year consensus estimates have moved higher by 2 cents in the last 60 days to $1.44 per share.

The company is scheduled to report second quarter results on July 30.

Value Fundamentals

Chart Industries is now a Zacks #2 Rank (buy) stock but was a Zacks #1 Rank (strong buy) when I reviewed it in Sep 2008.

It still has attractive value characteristics. The company is trading with a forward P/E of 13.4 and a price-to-book of 1.3. Chart Industries has a solid 1-year return on equity (ROE) of 20.11%.

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