Acme United Share Price Near 5-Year High Thanks to Continued Strong Sales and Earnings Growth

C-Thru products

Similar to Pac-Kit, C-Thru Ruler was quickly integrated into Acme's existing operations. At the same time, distribution channels were added and margins increased.

Acme United (ACU – $12.16) reported strong revenues and earnings for its fourth quarter and full year 2012. Net sales for the year ended December 31, 2012 were $84.4 million, an increase of 15% compared with 2011. Net income in fiscal year 2012 was $3,549,000, or $1.13 per diluted share, a 26% increase in net income and a 24% increase in diluted earnings per share versus last year. The Company’s stock responded nicely and moved up to $12.61, a five year high.

2013 looks very promising as well. Demand and distribution of the Company’s wide range of products continue to grow. About 30 new Camillus knives will be introduced, of which several new Les Stroud knives. Also, new survival kits will be launched shortly under the Les Stroud name. C-Thru’s distribution will be broadened and Clauss gardening tools may also see a sharp increase in sales.

As a result, Acme United expects to grow its revenues to between $90 and $95 million in 2013, an increase of between 7 and 13 percent. As for its earnings, the Company gave an estimate of between $1.20 and $1.25 per share for 2013. Based on the current amount of shares outstanding, those numbers translate into earnings of between $3.81 million and $3.97 million for the full year. A conservative estimate in our opinion.

Based on our calculations, we reiterate our buy recommendation for Acme United Corp. with a price target of $19.66, which is more than 60% above today’s stock price.

Download your copy of the fourth quarter 2012 Acme United Company Report.

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Smallcaps.us Advice: BuyPrice Target: $36.20Latest Company Report (pdf)
For important disclosures, please read our disclaimer.

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