Metalico's (NYSE:MEA) Revenue Driven Up by PGM Segment

Led by their platinum group metals (PGM) segment, Metalico (NYSE:MEA) said in a preannouncement that they're revenue will handily exceed expectations in the latest quarter.

Canaccord noted, "Aided by strength in its platinum group metals segment, Metalico preannounced anticipated Q4/10 revenue of approximately $136M, significantly exceeding our recently revised estimate of $108M. Despite this revenue upside, we maintain our Q4/10 EPS estimate of $0.02, as we anticipate tighter ferrous metals spreads. That said, we continue to believe the current quarter is shaping up nicely and therefore maintain our 2011 estimates. We remain bullish on MEA and reiterate our rating." (raise our Q4/10 revenue estimate to $135.8M (from $108M))

Canaccord Genuity maintains a "Buy" rating on Metalico (MEA), which closed Wednesday at $5.27. Canaccord has a price target of $8 on Metalico.