(JEF) - met or exceeded analysts' earnings expectations in 11 consecutive quarters, most recently by 23.1%

Jefferies Group, Inc. (JEF) has met or exceeded analysts' earnings expectations in 11 consecutive quarters, most recently by 23.1%. The company posted strong results for the first quarter of 2006. The Board of Directors recently boosted its quarterly dividend by 66.7%. The company is currently yielding 0.94%. Analysts' estimates have been trending higher for this Zacks #1 Rank stock. Full Analysis Jefferies Group, Inc. is a global investment bank and institutional securities firm. The company provides its clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. JEF has more than 20 offices around the world. JEF has met or exceeded analysts' earnings expectations in 11 consecutive quarters—meeting only once. In the 10 quarters that the company beat the Street, it did so by an average margin of 13.4%. Earnings per share grew 19.7% over the past five years and are forecasted to grow 10.0% over the next 3-5 years. On Apr 18, 2006, JEF reported first-quarter 2006 earnings per share of 80 cents, which beat the Street by an impressive 23.1%. Furthermore, the company crushed its first-quarter 2005 profits by 42.9%. Total revenues soared to a record $524.1 million, compared with $343.9 million in the prior-year period. Asset management related revenues led the way, which were up 107.5% to a record $44.2 million. The company increased revenues and expanded gross margins for the past three years. JEF grew profits for five years running. The Board of Directors at JEF recently approved the company's second stock split in the past three years. The 2-for-1 split of its common stock will be payable May 15, 2006 to stockholders of record as of Apr 28, 2006. Furthermore, the company raised its quarterly dividend by 66.7% to 12.5 cents per share from 7.5 cents. This represents the fifth increase in the past three years. The company has a current dividend yield of 0.94% and a five-year average dividend yield of 0.80%. Analysts' estimates have been trending higher for this year as well as next year. The consensus earnings estimate for 2006 has increased 3.6% over the past 60 days, while profit forecasts for 2007 have jumped 7.2%. Over the past two months, JEF has worked to expand various departments across the company. On Mar 1, 2006, the company announced plans to enhance and expand its electronic trading capabilities. Moreover, JEF's prime brokerage unit will be expanded, building upon its commitment to meet the needs of small and mid-sized hedge funds. The company believes this segment is currently being underserved by Wall Street. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(CUTR) - exceeded estimates for seven straight quarters by at least 40% each time

Cutera, Inc. (CUTR) has a history of blowing away earnings estimates. The company has exceeded estimates for seven straight quarters by at least 40% each time. One analyst raised his numbers for 2006. 2007 estimates have increased 4.1% over the past 90 days. The company's net profit margin is 18.3%, well above the industry average of 7.3%. Full Analysis Cutera, Inc. (CUTR) designs, manufactures and markets laser and light-based aesthetic applications. Since it commenced commercial production in 2000, CUTR has quickly grown to become a leading player in the laser treatment category. Originally Altus Medical, the company changed its name to Cutera in January 2004 before going public in March 2004. Its flagship CoolGlide line of products is used in cosmetic processes such as permanent hair removal, and for treating pigmented lesions, wrinkles and veins. Cutera's primary customers are dermatologists and cosmetic surgeons, but it is also targeting its products for gynecologists and primary care physicians. The market for aesthetic procedures is experiencing substantial growth with increasing interest in beauty treatments. Within this market, the non-surgical segment is growing the fastest. The aging Baby Boomer market is driving demand, and greater affluence makes the aesthetics market more accessible. Furthermore, aesthetic procedures are becoming more acceptable in society. The aesthetic laser market is growing 15-20% annually. The company's strategy of offering upgradeable products provides additional leverage to its business model, helping it build the customer base necessary to sustain growth. The company's traditional market in dermatology and cosmetic surgery is relatively small, which makes competition more intense,particularly against more established competitors like Candela, Lumenis, Laserscope and Palomar. The company is expanding beyond the traditional dermatology market, attempting to attract family/general practitioners, gynecologists and other medical specialties. CUTR has a history of blowing away earnings estimates. The company has exceeded estimates for seven straight quarters by at least 40% each time. One analyst raised his numbers for 2006. 2007 estimates have increased 4.1% over the past 90 days. The company's net profit margin is 18.3%, well above the industry average of 7.3%. The stock is cheap given the company's huge long-term growth rate. CUTR is currently trading at 20.3x next year's estimates of $1.27 per share, well below the 60% long-term growth rate, giving the stock a PEG ratio of 0.34. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(TONS) - beat the Street for the past three quarters by an average margin of 27.3%

Novamerican Steel, Inc. (TONS), a Zacks #1 Rank stock, has beat the Street for the past three quarters by an average margin of 27.3%. The company recently posted its 33rd consecutive profitable quarter. Analysts' earnings estimates have been trending higher. The company has a price-to-book (P/B) multiple of 1.6. Full Analysis Novamerican Steel, Inc. engages in the processing and distribution of carbon steel, stainless steel and aluminum products. The company also operates as an intermediary between primary metal producers and manufacturers. TONS is based in Montreal, Canada and has 12 operating locations in Canada and 11 operating locations in the United States. TONS has exceeded analysts' earnings expectations in the past three quarters by an average margin of 27.3%. Earnings per share have grown an impressive 55.5% over the past five years. On Apr 3, 2006, TONS posted first-quarter 2006 earnings per share of 85 cents. With analysts covering the stock calling for 82 cents, the company surprised by 3.7%. This marked the 33rd consecutive profitable quarter for TONS. Analysts' estimates have been trending higher for TONS. The consensus earnings estimate for the second and third quarters of 2006 have increased 13.2% and 34.7%, respectively, over the past 90 days. Two analysts covering the stock submitted upward revisions for both quarters. Profit forecasts for the full years of 2006 and 2007 have jumped 28.6% and 14.8%, respectively, over the same time period. The company stated that demand continues to be strong from numerous steel consuming industries, including non-residential construction, energy, mining, heavy equipment, railcar manufacturing and infrastructure spending. Furthermore, management at TONS remains optimistic that steel prices will rise in the second quarter and continue to be strong through July. The company is trading at a highly-discounted valuation. TONS has a price-to-book (P/B) multiple of 1.6. Furthermore, the stock trades at a valuation of 13.1x trailing 12-month earnings and at 10.9x its current fiscal-year estimated earnings. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(ACO) - yet another breakout to the upside

Amcol International (ACO) yet another breakout to the upside. Background AMCOL International Corporation operates in two major industry segments: minerals and environmental. They also operate a transportation business. The minerals segment mines, processes and distributes clays and products with similar applications. The environmental segment processes and distributes clays and products with similar applications for use as a moisture barrier in commercial construction, landfill liners and in a variety of other industrial and commercial applications. Full Analysis ACO expects to announce earnings for the March 2006 quarter on April 21. The consensus estimate is 28 cents per share compared to 23 cents earned in the same period last year, a 21.7% increase. Since ACO has not disappointed in the last 16 quarters, expectations are that they will meet or exceed the consensus estimate. Technical Review ACO broke out to the upside of an approximately three-month trading range with a strong close on Monday, Apr 17. The stock then gapped higher on heavy volume on Tuesday to set a 52-week high. While there was some profit-taking on Wednesday of this week, the stock remained above the new support at the old highs of the trading range at $29.40. As we screen for Zacks #1 Rank stocks, we're seeing more and more stocks with patterns like ACO—tight sideways patterns extending months back being broken to the upside. Since there are so many stocks exhibiting this pattern, we take this to be a graphical illustration of improving confidence in the market in general. Breakouts like ACO is experiencing are generally reliable trading patterns and give investors a logical nearby support area, should a stock experience profit-taking after the breakout. Again, when looking at breakouts, be sure and examine volume on the breakout. To confirm the breakout, volume should be at least twice the two-month average volume. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(SCSS) - We reiterate our Buy rating on Select Comfort (SCSS) and would use any pullback in the shares as a buying opportunity

Reiterate SCSS Buy Rec Posted Tue Apr 18, 01:30 pm ET by Rob Plaza, CFA We reiterate our Buy rating on Select Comfort (SCSS) and would use any pullback in the shares as a buying opportunity. Select Comfort is targeting annual sales growth of 15%-20% and 20%-25% earnings growth over the long term. The company expects to exceed both of those targets in full-year 2006 and recently indicated that business in the first quarter was on track to exceed its robust long-term growth targets. As a result, we maintain our $44 target price. We remain positive on Select Comfort's significant long-term growth potential, high near-term visibility, and attractive valuation. Our optimistic view of SCSS shares is supported by the high near-term visibility of the company's sales and earnings. Along with its fourth quarter report, management established full-year 2006 EPS guidance of $1.30-$1.37, including a stock option expense of $0.10 to $0.11 per share. Excluding the impact of stock option expense, the company's guidance calls for 23%-30% annual earnings growth. Management also expects the company's 2006 results to exceed its long-term sales growth target of 15% to 20%. And recently, Select Comfort indicated that its first quarter results were tracking ahead of its long-term growth targets. Further, we believe SCSS shares still trade at an attractive price. The stock is trading at roughly 22x our 2007 EPS estimate. This is below our estimate of the company's long-term earnings growth rate. Given the lack of companies in the furniture industry that can offer strong and steady long-term growth, Select Comfort's growth prospects look even more impressive. As a result, we reiterate our Buy rating on the stock and our target price of $44.00 or about 24x our 2006 EPS estimate. This is in line with the company's long-term earning growth rate. Courtesy: http://www.zacks.com/blog/post_detail.html?t=1186

Click for full article

(GGI) - company upped its earnings per share and revenue guidance twice in the month of March

The GEO Group, Inc. (GGI), a Zacks #1 Rank stock, has beat the Street in six of the past seven quarters. The company upped its earnings per share and revenue guidance twice in the month of March. As a result, analysts' estimates have been trending higher. The company has a price-to-book (P/B) multiple of 3.0 and a return on equity of 12%. Full Analysis The GEO Group, Inc. is a developer and manager of privatized correctional, detention and mental health residential treatment services facilities. As of Jan 1, 2006, the company operated 56 correctional, detention and mental health facilities, and had approximately 48,370 beds under management. GGI has exceeded analysts' expectations in six of the past seven quarters by an average margin of 9.6%. Earnings per share grew 11.4% over the past five years. On Mar 13, 2006, GGI reported fourth-quarter 2005 earnings per share of 36 cents. With analysts expecting 34 cents, the company surprised by 5.9%. Revenues amounted to $164.9 million, compared with $161.6 million in the fourth quarter of 2004. For the entire year, revenues increased to $612.9 million from $594.0 million in 2004. While profits were down in 2005, the company stated that it has overcome the challenges that impacted its performance and is now poised to have a strong financial year in 2006. On Mar 31, 2006, GGI raised its full-year and first-quarter 2006 guidance, citing increased occupancy at its facilities. The company now expects earnings per share for the full year to be between $1.85 and $1.95. Revenue guidance was also bumped up to between $732 and $747 million. For the first quarter, the company announced revised earnings per share guidance of between 39 cents and 41 cents and a revenue projection of between $184 million and $188 million. This marks the second revised guidance issued by the company in the month of March. Analysts have raised their estimates for this quarter and the full year of 2006. The consensus earnings estimate for the first quarter has increased 34.6% to 35 cents per share over the past 60 days. Profit forecasts for the full year have been upped 6.9% to $1.87 over the same time period. The company has a price-to-book (P/B) multiple of 3.0 and is trading at a valuation of 17.3x its current fiscal year estimated earnings. Management at GGI has been very efficient in enhancing shareholder value—especially when considering the return on equity of the industry is negative. The company has a ROE of 12%, compared to -3% for the industry average. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(MTW) - met or beat analysts' earnings estimates in 10 of the past 11 quarters

The Manitowoc Company, Inc. (MTW) has met or beat analysts' earnings estimates in 10 of the past 11 quarters. In early February, the company posted strong 2005 results, prompting it to raise its earnings guidance for 2006. Analysts' estimates have been trending higher for this Zacks #1 Rank stock. MTW increased revenues and expanded gross margins for nine years running. Full Analysis The Manitowoc Company, Inc. is a diversified industrial manufacturer in three principal markets: cranes and related products, foodservice equipment and marine. In each of these segments the company is the industry leader in market share, product innovation and product support services. MTW has operations in over 20 countries around the world. MTW has topped analysts' earnings expectations in four consecutive quarters by an average margin of 11.8%. Furthermore, the company met or beat estimates in 10 of the past 11 quarters—meeting twice. Earnings per share are projected to grow 50.0% over the next 3-5 years. On Feb 1, 2006, MTW reported fourth-quarter earnings per share of 23 cents, which beat the Street by a penny and surpassed profits in the prior-year period by 155.6%. Net sales rose 16.1% to $589.3 million, compared to $507.4 million in the fourth quarter of 2004. For the entire year, MTW posted profits of $65.8 million, versus $39.1 million in 2004. Net sales amounted to $2.3 billion from $1.8 billion in the prior year. The company was able to exceed its guidance projections in 2005 and, as a result, set even higher targets for 2006. Furthermore, on Mar 27, 2006, MTW raised its full-year and first-quarter 2006 earnings guidance, fueled by stronger-than-expected crane sales. Analysts' estimates have been on the rise for MTW. The consensus earnings estimate for this quarter has shot up 68.0% to 42 cents over the past 90 days. Profit forecasts for the full years of 2006 and 2007 increased 12.3% and 24.7%, respectively, over the same time period. On Feb 24, 2006, the Board of Directors at MTW announced a quarterly dividend of seven cents per share. The company has a five-year average dividend yield of 0.83%. Moreover, the Board authorized a two-for-one split of the company's outstanding common stock. The company believes the additional shares should improve the trading volume and liquidity of its stock going forward. MTW increased revenues and expanded gross margins for the past nine years. The company increased profits for the past three. MTW has a return on equity of 14%, slightly below the industry average of 16%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(AOS) - actual number beat the consensus by 11%

AO Smith's (AOS) tight uptrend is still intact despite yesterday's sell off. Background A.O. Smith Corporation serves customers worldwide and is organized according to the products it offers. The company consists of two platforms, Electric Motor Technologies and Water Systems Technologies. The company's Electric Motor Technologies segment is a manufacturer of fractional horsepower, integral horsepower alternating current and direct current, and hermetic electric motors. The Water Systems Technologies segment is a manufacturer of residential and commercial gas and electric water heating equipment and copper tube boilers. Full Analysis Yesterday, AOS reported earnings for the quarter ended Mar 2006 of 60 cents per share. That compares to 48 cents earned in the same quarter last year, a gain of 25%. Analysts had predicted 54 cents, so the actual number beat the consensus by 11%. Sales were $459 million and income was $18.6 million. Technical Review To review the technical action of AOS, you have to begin with the beautiful uptrend that the stock has enjoyed since bottoming out on Sep 21, 2005 at $24.90 and ending (temporarily, probably) Monday at $58.09. That represents a gain of 133% in less than seven months. On Monday, the day before the company would release earnings, the stock closed at $56.60, a gain of about 2%. Once earnings came out, the stock sold off. This is a classic example of why putting earnings surprises in context is important. It's not enough to know that a company surprised in a positive way, rather it's necessary to view the market price action in the days leading up to the report. In this case, AOS got a little ahead of the report and its current slight sell off does nothing to invalidate the current uptrend. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(MSSR) - exceeded earnings estimates for four straight quarters by an average margin of 18%

McCormick & Schmick's Seafood Restaurants (MSSR) is aggressively expanding, which is fueling strong earnings growth. The company has exceeded earnings estimates for four straight quarters by an average margin of 18%. Four different analysts raised their numbers for 2006. Next year's estimates have increased 2% to $1.02 per share over the past 90 days. However, given the company's propensity to dramatically exceed estimates, this number could be low. Full Analysis McCormick & Schmick's Seafood Restaurants (MSSR) is a leading national seafood restaurant operator in the affordable upscale dining segment. Over the past 33 years, it has successfully grown to 59 restaurants in 24 states by focusing on serving a broad selection of fresh seafood. The company's menu is printed twice daily and typically offers at least 85 made-to-order dishes. The signature "Fresh List" typically contains more than 30 international, national, regional and local varieties of seafood. McCormick & Schmick's menu also features aged steaks, poultry, pasta, and entree salads with an extensive wine list, cocktails, and beer. MSSR's expansion strategy has been progressing at its planned pace. The company recently opened its sixth and seventh new restaurants in the 2005 fiscal year in Pittsburgh, Pennsylvania and Bellevue, Washington, respectively. The company has announced that it intends to open eight restaurants in 2006. The expansion potential of McCormick & Schmick's restaurant concept is a key component in its earnings multiple premium over competitors in the restaurant industry. On February 13, 2006, McCormick & Schmick's announced results for the fourth quarter and the 2005 fiscal year. Fourth quarter revenue was $82.0 million, an increase of 26.3% from $64.9 million in the prior-year period. The company reported earnings of 31 cents per share, exceeding estimates by four cents, or 15%. Operating profit margin improved 30 basis points to 8.0% from 7.7% in the fourth quarter of 2004. The company has exceeded earnings estimates for four straight quarters by an average margin of 18%. Four different analysts raised their numbers for 2006. Next year's estimates have increased 2% to $1.02 per share over the past 90 days. However, given the company's propensity to dramatically exceed estimates, this number could be low. MSSR is currently trading at 23.1x next year's estimates, above the long-term growth rate of 18.33%, giving the stock a PEG ratio of 1.26. The company is due to report first-quarter earnings on May 9. Analysts expect 14 cents per share versus 12 cents in last year's first quarter. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(BTUI) - making new highs on heavy volume

BTU International (BTUI) is making new highs on heavy volume. Background BTU INTERNATIONAL, INC. designs, manufacturers, sells and services thermal processing equipment and related process controls for use in the electronics, the power generation and other industries. It is the major supplier of solder reflow systems used in printed circuit board surface mount applications. It is a principal worldwide supplier of systems used in: low temperature curing/encapsulation; hybrid integrated circuit manufacturing; integrated circuit packaging, sealing and mounting; and processing multi-chip modules. Full Analysis BTUI is expected to report earnings for the quarter ended March 2006 on Apr 20. The consensus estimate is for 25 cents per share, compared to last year's earnings of two cents per share. BTUI has delivered three straight positive earnings surprises and hasn't had a disappointing quarter since the December 2004 quarter. BTUI's price action has continued its strong performance in 2005, when the stock was up 313% for the year. So far in 2006, BTUI is up nearly 59% for the year to date. Technical Review You'd have to look long and hard to find a more attractive chart than BTUI. The stock had a broad trading range from October 2005 until last week, roughly between $18.58 and $11.50. Last Wednesday, BTUI clearly broke out of that range on very heavy volume. Thursday's action extended the breakout, again on noticeably heavy trading volume. The stock is now trading not only at a 52-week high, but the highest price in at least the last 12 years. Obviously, because of the breakout into new high ground, there is no logical overhead resistance area. As mentioned in previous Momentum highlights, breakouts of trading ranges are a visual warning that the old supply/demand balance points have changed. When confirmed by volume, as in BTUI's case, the top of the previous trading range can be expected to now become significant support. Thus look for BTUI to move higher in search of the new trading range top, with $18.58 now becoming the bottom (support level) of the new trading range. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(BPFH) - met or beat analysts' estimates in six of the past seven quarters

Boston Private Financial Holdings, Inc. (BPFH) has met or beat analysts' estimates in six of the past seven quarters. In late January, the company posted strong 2005 results. Earnings per share are forecasted to grow 15.0% over the next 3-5 years. Going forward, the company should benefit from its recent acquisition of Anchor Holdings LLC. This Zacks #1 Rank stock has a current dividend yield of 1.0%. Full Analysis Boston Private Financial Holdings, Inc. operates as a wealth management firm that provides customized private banking, investment management and financial planning services to successful individuals, their families and their businesses. BPFH has met or beat estimates in six of the past seven quarters. Earnings per share grew 11.0% over the past five years and are forecasted to grow by a larger margin going forward—15.0% over the next 3-5 years. On Jan 25, 2006, BPFH reported fourth-quarter earnings per share of 38 cents, which topped profits in the prior period by 15.2%. Revenues soared 42.2% to $79.5 million, compared to $55.9 million in the fourth quarter of 2004. BPFH's net interest income increased 72.2% to $43.9 million. Commercial loans were up 50.3%, while residential loans increased 68.0%. For the entire year, profits and revenues were up 37.7% and 33.8%, respectively, when compared to 2004. Net interest income ballooned 45.3% to $128.7 million. Total assets under management and advisory, including the company's unconsolidated affiliates, finished the year at $23.7 billion, versus $21.1 billion at Dec 31, 2004. BPFH said it will significantly expand its wealth management franchise in 2006 with new office openings. Furthermore, the company will continue to selectively evaluate other strategic opportunities and markets throughout the year. The consensus earnings estimate for 2006 increased 6.8% to $1.72 over the past 60 days. Forecasts for 2007 profits jumped 9.4% to $1.97 over the same time period. Two analysts covering the stock submitted upward revisions for both 2006 and 2007. On Feb 27, 2006, BPFH announced it will acquire a majority interest in Anchor Holdings LLC—allowing the company to enter the separately managed accounts (SMA) market. Anchor Holdings, which includes both Anchor Capital and Anchor/Russell, has approximately $4.6 billion in assets under management and $24 million in annualized revenues. BPFH cited that the SMA market is one of the fastest growing segments of asset management, with 16-18% annual growth expected over the next few years. The company is currently yielding 1.0% and has a five-year average dividend yield of 0.88%. BPFH has a return on equity of 12%, slightly below the industry average of 14%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(NHY) - has met or exceeded analysts' expectations in four of the past five quarters

Norsk Hydro ASA (NHY), a Zacks #1 Rank stock, reported record results in 2005. The company increased profits for the past four years. NHY has a current dividend yield of 1.8% and a five-year average dividend yield of 2.4%. The company has a price-to-book (P/B) multiple of 2.6. Full Analysis Norsk Hydro ASA develops, produces and supplies oil, gas and hydropower. The company operates in two business segments: oil & energy and aluminium. The oil & energy segment consists of the sub segments, exploration and production, and energy and oil marketing. The aluminium segment's sub segments are metals, rolled products and extrusion and automotive. NHY has met or exceeded analysts' expectations in four of the past five quarters—meeting once and missing once (by 0.4%). In those quarters that the company beat the Street, it did so by an average margin of 25.8%. On Feb 14, 2006, NHY reported fourth-quarter 2005 earnings per share of $2.63, which was in line with analysts' estimates. When compared to the fourth quarter of 2004, the company's profits increased by 15.9%. For the entire year, income from continuing operations amounted to NOK 15,716 million—a record high for NHY. High oil and gas prices and improved aluminum prices, together with continued strong operational performance, fueled the company's impressive results. The company increased profits for the past four years. Analysts' estimates have been trending higher for NHY. The consensus earnings estimate for 2006 currently stands at $10.70. This represents a 4.3% increase when compared to the consensus of 30 days ago. Profit forecasts for 2007 jumped 3.1% over the same time period. On Mar 7, 2006, the Board of Directors at NHY declared it will request the approval of a new share repurchase authorization on May 9 at its annual general meeting. Furthermore, the Board will propose the split of one of its shares into five shares. The company is concerned that the price of its shares is currently high when compared to other shares listed on the Oslo Stock Exchange. If the buyback is approved, NHY will be able to repurchase, before the share split is taken into consideration, approximately 4,494,096 shares over a 12-month period. The company is currently yielding 1.8%. NHY has a five-year average dividend yield of 2.4%. The company has a price-to-book (P/B) multiple of 2.6 and is trading at a valuation of 14.7x trailing 12-month earnings and at 13.5x its current fiscal year estimated earnings. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(FMCN) - averaged an earnings surprise of 13.3% for two periods

Focus Media Holding Limited (FMCN) has only been public for two quarters, but it has averaged an earnings surprise of 13.3% for those two periods. One out of the two analysts covering FMCN raised his estimates for 2006, and both analysts raised numbers for 2007. Over the past 30 days, 2006 estimates have increased 9.6% to $1.25 per share, while 2007 estimates have increased 40.3% over the same period. Full Analysis Focus Media Holding Limited (FMCN), a holding company, operates an out-of-home advertising network using audiovisual flat-panel displays in the People's Republic of China. The company's flat-panel audiovisual displays are placed in elevators and lobbies of commercial office buildings, retail chain stores, beauty parlours, karaoke parlours, golf country clubs, auto shops, banks, pharmacies, hotels, and airports. The company reported a strong 2005 fourth quarter. Earnings per share of 23 cents per share met estimates, and total revenues grew 109.1% year-over-year and 26.4% quarter-over-quarter to $24.6 million. Advertising service revenue grew 117.0% year-over-year and 25.9% quarter-over-quarter to $24.1 million on the continued strength in the commercial location network and in-store network. The in-store network, contributed 13.8% of total advertising revenue in the fourth quarter 2005 compared to 9.5% of total advertising revenue in the previous quarter. Commenting on the fourth quarter and full year 2005 results, Chief Executive Officer Jason Jiang said: "We are very pleased to report a record result for the fourth quarter and the full year 2005. More importantly, the company has signed and completed a number of strategic acquisitions during this quarter. Through these acquisitions, the company has significantly solidified its position in the out-of-home advertising market as well as the new media market, and made a critical step forward towards our long-term objective of establishing China's largest out-of-home multi-platform life- style media company." The company has only been public for two quarters, but it has averaged an earnings surprise of 13.3% for those two periods. One out of the two analysts covering FMCN raised his estimates for 2006, and both analysts raised numbers for 2007. Over the past 30 days, 2006 estimates have increased 9.6% to $1.25 per share, while 2007 estimates have increased 40.3% over the same period. The stock has more than doubled over the past year, but the stock is still attractively valued. The shares are currently trading at 29x next year's estimates, slightly below the long-term growth rate of 30%, giving the stock a PEG ratio of 0.97. This is cheap for a company with such explosive growth prospects. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(SCMR) - beat the Zacks consensus by $0.02

Sycamore Networks, Inc. (SCMR-NSDQ) Current Recommendation Buy Prior Recommendation Hold Date of Last Change 03/19/2006 Current Price (4/12/06) $4.40 Six- Month Target Price $5.40 OUTLOOK Sycamore Networks (SCMR), a leading provider of optical switching equipment, announced plans on April 12th to acquire Eastern Research, a subsidiary of Allen Organ. We expect the deal to consummate over the next two quarters, which will provide the company the possibility of recording combined company revenues for FY2007 (beginning July 2006). Cross-selling and no product overlap should make the deal accretive with positive incremental earnings. SCMR continues to maintain one of the strongest balance sheets in the telecom equipment industry. Increased Internet traffic, and fiber-to-the-home initiatives with triple-play (Voice, Video, and Data) offerings proliferating to the consumer market, should translate to additional spending by large carriers as they address higher bandwidth requirements. Recent contract wins (U.S. Government and Sprint), along with nearly $966 million (approx. $3.45/sh.) in net cash are compelling reasons for our continued Buy rating COMPANY BACKGROUND Sycamore Networks (SCMR) manufactures and markets intelligent optical networking platforms for carriers worldwide. Their products connect voice and data traffic with wavelengths of light, for cost effective deployment over fiber. Sycamore's switching solutions transform existing capacity into usable bandwidth to deliver a wide range of telecom services. Customers include the Department of Defense, Sprint, KT, Vodafone, NTT Communications, and LDCOM. Sycamore solutions provide a cost-effective software migration that supports seamless integration of existing SONET/SDH and a gradual transition to data optimized infrastructures. KEY POINTS Acquisition of Eastern Research expands opportunities to network access, in addition to SCMR's traditional core networking product line of optical switches. Cross-selling opportunities at customers. Continued revenue strength and profitability will add to company's massive net cash position of nearly $966 million ($3.45/share) Partnership with Siemens ICN, one of the largest communications equipment providers, is gaining traction with recent contracts and deployments in Asia U.S Government and Sprint customers continue to exhibit strong orders for Sycamore products Net cash position, with no debt, provides attractive risk/return profile based on liquid assets of the company. INVESTMENT SUMMARY We continue to believe that greater bandwidth requirements exist for broadband Internet infrastructures. In particular, the emergence of distributed high-speed applications and video-streaming, along with the launch of numerous fiber-to-the-home (FTTH) networks provide strong indications that core network transport will grow significantly. Shares of SCMR continue to be viewed from a value perspective. The company's net cash of $3.45 per share provides adequate safety margin and potentially limits downside risk should we see a market contraction. We believe that there is substantial stock upside should other major deployments take place. In our view, optical switching is potentially an unrealized growth market, albeit still in a period of quiet planning and spending constraints. When this segment turns around, we assume Sycamore will be one of the primary beneficiaries in terms of revenue growth and stock price movement. Bandwidth Needs: We believe that bandwidth intensive demand, such as distributed Storage Area Networks (SANs), video-streaming and customers' appetite for greater bandwidth will require service providers to expand optical switching networks. Sycamore's offerings provide a compelling value proposition to lower carrier Capital/Operating expenses. These platforms remove the need for purchasing and maintaining separate equipment, including digital cross connects, add-drop SONET multiplexers and DWDM optical transport gear. By consolidating the functions of multiple products, service providers can reduce the amount of equipment and eliminate awkward cabling at each node. Combining these functions in one network element significantly lowers capital costs. Furthermore, it reduces equipment rack space, power consumption, multiple points of network failure, and, at the same time, improves provisioning of services - quickly and effectively - driving down operational expenses. Partnership with Siemens: We expect Siemens to position Sycamore's product lines as part of Siemen's capabilities portfolio for optical solutions. Siemens has one of the largest global telecom customer bases. Existing customers using the Siemens Surpass product line may find Sycamore's optical switching platforms a natural extension with complete interoperability. Sycamore is already experiencing the benefits from this relationship. The agreement, which began in 2002, enabled Siemens to market Sycamore's optical switches along with its own broad line of telecom gear to Siemens' large global customer base. During the first quarter of fiscal 2005, Sycamore finally booked revenue from the Siemens partnership (mostly for network trials) and KT Corporation was recently announced as a new end customer. Contracts and Customers: Customer trials continue with some several years old. We believe that relaxed capital spending constraints among carriers will create opportunities for revenue growth based on these carrier evaluations. There are carrier RFPs (Request for Proposals) providing indications of improved optical switching demand. Efforts to expand the customer base have been successful considering the challenging industry environment and SCMR's relatively narrow product line. For example, Sycamore was one of the winners (along with partner Sprint) in the U.S. Department of Defense's Global Information Grid Bandwidth Expansion (GIG-BE) project. The GIG-BE program is an effort to build an advanced communications network to improve national security intelligence, surveillance and reconnaissance, and command and control information sharing. The program will provide increased bandwidth and diverse physical access to approximately 100 critical sites in the continental United States and in the Pacific and European theatres. While revenues from GIG-BE have provided a much-needed boost to the top line, the initial phase of the program has been completed. Fortunately, the company recently announced an agreement to sell optical switching products to Sprint and KT. Balance Sheet Remains Strong: Sycamore's balance sheet remains one of the strongest in the telecom industry. With $966 million Net Cash and positive net earnings, sufficient financial resources allow the company to pursue new technologies and to remain viable in what has been a challenging optical network deployment environment. The company's significant cash position was a result of a secondary offering back in March 2000 where Sycamore sold an additional 8.428 million shares at $150.25/sh yielding $1.266 Billion in cash. The timing could not have been better. We emphasize balance sheet fundamentals and product differentiation as parameters to consider on a long-term valuation basis. The stock is trading at a slight premium to the value of the firm's net cash and investments balance ($3.45 per share), which implies that investors believe there is no value to SCMR's ongoing business. This is an overly pessimistic view in our opinion. There is always a possibility of consolidation interest, in particular for companies with positive earnings momentum and strong cash positions. RECENT NEWS Sycamore acquires Eastern Research On April 12, 2006 Sycamore announced plans to acquire Eastern Research, a subsidiary of Allen Organ Company, for approximately $92.5 million. This includes approximately $8 million in cash and the remaining balance in stock, based on a market-price collar, representing approximately 17.8 million shares as of the announcement day closing price. The acquisition is a step towards leveraging SCMR's strengths in the core network (optical switching) and offering a more comprehensive suite of solutions that address network access requirements and optimization of broadband solutions. The acquisition is expected to add nearly $60-$65 million in revenues for the twelve months following deal closure. Eastern Research is said to be profitable. Fiscal Second-Quarter 2006 Highlights On February 21, 2006 Sycamore reported 2Q 2006 revenues of $20.8 million compared with $14.9 million for 2Q 2005. Pro-forma net income for the quarter was $0.03 per share, compared with a net loss of ($0.02) for the same period last year. Sycamore ended the quarter with a strong balance sheet consisting $966 million ($3.45 per share) of net cash and investments, with no debt. Gross margins were approximately 50% in line with our expectations and relatively stable from the prior quarter. Management did not provide any revenue, gross margin, or EPS guidance for the next quarter as nearterm visibility remains limited. Fiscal First-Quarter 2006 Highlights On November 29, 2005 Sycamore reported better-than-expected results for the first quarter of fiscal 2006 (ended October). Revenues of $27.3 million were nearly double the year-ago level and up 48% sequentially. Adjusted earnings of $0.03 per share, versus a loss in the prior-year period, beat the Zacks consensus by $0.02. While the gross margin dipped to 53% from 57% last quarter, operating expenses were lower as well ($14.4 million versus $15.2 million last quarter and $17.6 million in the prior-year period) as a result of the ongoing cost-cutting efforts. Revenue growth benefited from initial sales to a new customer--KT Corporation (a large Korean telecom service provider). Two customers accounted for 82% of the total revenue during the quarter. Product sales were $22 million while service revenues were $5.3 million. Approximately 87% of the total sales were generated internationally. Sycamore ended the quarter with cash and investments balance of $955 million ($3.45 per share) and no debt. NASDAQ Listing Retained On September 21, 2005 Sycamore announced that the NASDAQ determined that the company has met its qualifications for listing following the filing of the company's form 10Q for the period ending April 30, 2005. As a result, the "E" was dropped from the ticker symbol effective September 22. KT Corporation Contract Win On August 23, 2005 Sycamore and its partner Siemens Communications were awarded a contracted to supply KT Corporation (the largest phone company in Korea) with an intelligent optical switching solution that will be part of KT's nationwide backbone network. Although the size of the contract was not spelled out, it represents another solid endorsement for Sycamore's technology. VALUATION Sycamore's valuation is based on future revenue potential relating to new network deployments, and expectations for near-term earnings improvement. The company remains one of the only pure-play optical switching manufacturers in the communications industry. Our expectation is for revenue to be volatile through FY 2007. However, we believe that Sycamore remains an attractive partner, with prospects at several carriers and a financial valuation of 1.37x its cash value. Recurring revenue from the Gig-BE deployment defense network and Sprint customers remains favorable for 2006. In addition, new business from the KT and other carriers in Asia should provide upside to revenue conditions. We feel that an effective way to view Sycamore's adjusted valuation is based on an adjusted P/E comparison, considering the magnitude of their net cash position. We use our estimate for 2006 P/E at 36.5 x, but on a net cash basis (removing 3.45/share of their cash of the stock valuation), the multiple becomes reasonable at 10x 2006 earnings. Our $5.40 price target is based on net of cash 2006 forward P/E multiple of 15x, closer to the P/E multiple of its peer basis. Time and patience continue to be essential, but we anticipate that the company's financial, technological and business foundation will be rewarded with higher valuations in the near future. RISKS - There is a significant amount of excess capacity associated with fiber lines deployed. Many of the fiber lines remain "dark" (not operational) due to over build-out by major carriers and by numerous service providers who are in bankruptcy. - Capital spending among telephone companies has been reduced over the past year. We see continued spending control in 2006 and this may impact revenue performance of switching companies, such as Sycamore Networks. - There continues to be delays in optical networking deployment, including timing issues with recently awarded contracts by the Dept. of Defense and Sprint. Shipments for the Gig-BE defense project are expected to be unpredictable on a quarter-to-quarter basis. - Competition in the optical switch market is intense. While we believe Sycamore has several differentiators over competing product solutions, there may be other criteria, such as price, relationships and vendor influence that may favor a competing solution. - Many of Sycamore's competitors offer a broader range of products, which may result in package offerings that could spread the cost between equipments, and in effect make competing optical switching more attractive from a monetary perspective than Sycamore's only product offering. - While we remain confident Sycamore is prudently managing its financial strength and net cash, any acceleration in the company's use of cash may weaken our valuation parameters. - Sycamore executives and board of directors continue to explore effective use of the company's sizeable net cash position. There can be no assurance that the shareholder value can be maintained with acquisitions, if planned. - Macroeconomic factors, including increased budget deficits, higher interest rates, and other fiscal and monetary conditions, may have a negative impact on the valuations of public companies in the equity markets. Unfavorable reports on unemployment, GDP, currency, in addition to continued terror threats and political conflicts worldwide, may result in underperformance, thereby affecting the projected valuation. Courtesy: Zacks.com

Click for full article

(XLNX) - Xilinx $32 Target

In Q3 revenue rose 13% sequentially and 27% year-over-year at Xilinx, Inc. (XLNX), thanks to broad-based product and market demand. The gross margin came to 63%, up from 61.4% in Q2 due to improving yields from new products and better than expected demand for mainstream products. Despite a strong showing in Q3, the stock dropped because of conservative guidance for the March quarter. Nevertheless, we like the long-term prospects of the company. We continue to rate Xilinx a Buy and have set our price target to $32. We believe Xilinx is a play on the secular trend of programmable logic devices (PLDs) replacing application-specific integrated circuits (ASICs). Engineers typically use ASICs for high volume but low-cost applications. The high cost of developing an ASIC can be spread out over the large number of relatively cheap units. On the other hand, PLDs do not have high development costs. The hallmark of a PLD is its flexibility. When designs have to be altered, they can be re-programmed and brought to market faster. Changes can be made even when the devices are in the field. Xilinx is trading at 26.2 times our 2006 earnings estimate, which is near the median P/E multiple for the industry. We think the current share price is at an attractive entry point for long-term investors. We believe the company's growth will reaccelerate given the competitive advantages of 90nm PLDs and its entrance into fast-growing markets. Accordingly, we have set the target price at $32. This is derived by applying a target P/E multiple of 32.0x to our fiscal year 2006 EPS estimate. Courtesy: Zacks.com

Click for full article

(MC) - stock is cheap at 30.1x next year's estimates of 77 cents per share when the 40.3% long-term growth...

Matsushita Electric Industrial Co., Ltd. MC is continuously making efforts to invest in key strategic businesses. The stock is cheap at 30.1x next year's estimates of 77 cents per share when the 40.3% long-term growth rate is taken into account. This gives the stock a PEG ratio of 0.75, which is attractive given the company's foothold in a rapidly growing market. Full Analysis Matsushita Electric Industrial Co., Ltd. MC is one of the world's leading manufacturers of electronic and electric products, systems and components for a wide range of consumer, business and industrial uses. Matsushita emphasizes the use of sophisticated electronics, precision and leading-edge technology to develop its products. Over the past seven decades, the company has grown from a small domestic household electrical equipment manufacturer into a comprehensive manufacturer with global operations. Matsushita, best known for its "Panasonic" brand name, has products that are also marketed worldwide under region-specific brand names, such as "National," mainly for home appliances sold in Japan, and "Technics" for certain hi-fi products. Also, some of Matsushita's subsidiaries use their own brand names, such as "Quasar," "Victor," and "JVC." In Japan, products are sold through several channels, each established according to the type of products or customers. MC is continuously making efforts to invest in key strategic businesses, such as semiconductors, for which the company has undertaken in-house manufacturing by setting up a new assembly plant in China, and panels, for which a new plasma plant has been set up in Amagasaki, Japan. With the opening of this new factory, Matsushita aims to be one of the world's largest PDP manufacturers, with a production capacity of over six million units per year, increasing to 11.1 million panels by fiscal 2009. In addition, Matsushita is also working to maximize shareholders value with its ongoing share repurchase program--the company's target is to repurchase a maximum of 120 million shares worth $1.4 billion in fiscal 2006. Since Apr 28, 2005, the company has repurchased 47.3 million shares. The stock is cheap at 30.1x next year's estimates of 77 cents per share when the 40.3% long-term growth rate is taken into account. This gives the stock a PEG ratio of 0.75, which is attractive given the company's foothold in a rapidly growing market. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article