Insituform Technologies, Inc. (INSU) just topped forecasts which sent share price soaring. Analysts continue to revise estimates, giving the company excellent growth projections.

Company Description

Insituform provides infrastructure services for the water, wastewater, and energy and mining industries. The company primarily works on environmentally-friendly protection and rehab solutions for existing pipelines.

Beat the Street

On Feb 25 Insituform reported fourth-quarter results that showed earnings per shares of 41 cents, 4 cents ahead of the Zacks Consensus Estimates. Operating income came in at $15.8 million, up 53% since the same period last year.

Insituform’s backlog is $463 million, which is just under its record high.

Bullish Outlook

While the fourth quarter was the strongest in company history, the company sees even better things to come in 2010. Management is looking for earnings per share to com in at $1.50, plus or minus 5 cents. This would make it the most profitable year ever for Insituform.

Estimates Pop

After 5 upward revisions in the past month, the Zacks Consensus Estimate for 2010 is now $1.46, up from $1.28. Next year’s average projection is calling for $1.71, up from $1.47 on 2 revisions.

These levels show Insituform growing its earnings at 57% this year, with another 17% in 2011.

Valuations

No one is going to fall in love with the value story, but shares are fairly priced. The Zacks #1 Rank stock has a PEG ratio of 1.0 and a forward P/E of 17 times,

The Chart

Shares of INSU surged following the quarterly reports, but the previously mentioned revisions are keeping the valuations in check. Volume is high, so this run could have some legs.

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