(PDLI) - The company earned 15 cents per share, 50% higher than the consensus estimate

PDL BioPharma has met or exceeded earnings estimates in seven out of the past nine quarters. The most recent quarter posted 67% year-over-year growth. The company is still slated to lose money this year, but the loss estimate has decreased by 30% over the past two months. Similarly, the loss estimate for the third quarter has fallen 33%. Full Analysis PDL BioPharma, Inc., (PDLI) a biopharmaceutical company, engages in the discovery, development, and commercialization of therapies for life-threatening illness. The company markets three biopharmaceutical products: Cardene IV to reduce high blood pressure during or after surgery; Retavase for the improvement of ventricular function following acute myocardial infarction (AMI), the reduction of the incidence of congestive heart failure, and the reduction of mortality associated with AMI; and IV Busulfex, a chemotherapeutic agent that provides anti-tumor effect to eradicate residual malignancy, ablation of the bone marrow, and immunosuppression to prevent graft rejection. PDLI reported strong second-quarter results in early-August. The company earned 15 cents per share, 50% higher than the consensus estimate. Total revenues for the second quarter of 2006 rose 29 percent to $104.3 million from $81.0 million in the same period of 2005. Royalty revenues for the second quarter of 2006 increased 44 percent to $54.0 million, compared with $37.5 million in the same three months of 2005. Royalty revenues during the second quarter of 2006 reflect royalties PDL received based on worldwide net sales of six antibody products licensed under PDL's antibody humanization patents: Avastin(TM), Herceptin®, Xolair® and Raptiva® from Genentech, Inc.; Synagis® from MedImmune, Inc. and Mylotarg® from Wyeth. "During the second quarter, we delivered solid overall revenue growth due to increased product sales and royalty revenue, breaking the $100 million mark in a quarter for the first time in our history. Our more diversified revenue stream, including our portfolio of three marketed products, is contributing to strong operating cash flow and reflects the fundamental shift we've made as a commercial company," PDL BioPharma Chief Executive Officer Mark McDade said. "Despite the disappointing results from the terlipressin phase 3 study, we are advancing our other clinical programs and working to expand the pipeline with our antibody discovery and development activities." PDLI has met or exceeded earnings estimates in seven out of the past nine quarters. The most recent quarter posted 67% year-over-year growth. The company is still slated to lose money this year, but the loss estimate has decreased by 30% over the past two months. Similarly, the loss estimate for the third quarter has fallen 33%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. 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. | Blog Home| VitalStocks Home

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(VLCCF) - The company exceeded analysts' estimates in five out of the past eight quarters by an average margin of 50.7%

Knightsbridge Tankers Limited (VLCCF), a Zacks #1 Rank stock, topped the Street's earnings estimate in five out of the past eight quarters by an average margin of 50.7%. Consensus estimates increased dramatically over the past two months. The company has a price-to-book ratio of 2.2, compared to 5.3 for the market. VLCCF's return on equity is nearly double that of the industry average--27% compared to 15%. Full Analysis Knightsbridge Tankers Limited is an international tanker company whose primary business activity is the international seaborne transportation of crude oil. The company's fleet consists of five double-hull crude oil carriers. When VLCCF tops the Street's earnings estimate, it usually does so by a very large margin. The company exceeded analysts' estimates in five out of the past eight quarters by an average margin of 50.7%. On Aug 11, VLCCF announced second-quarter profits of $7.9 million, or 46 cents per share. Compared to the second quarter of 2005, this marked a 7.0% year-over-year improvement. It also represented a 7.0% positive surprise. Operating revenues jumped 13.4% to $23.7 million. Consensus estimates increased dramatically over the past 60 days. Profit forecasts for this quarter and next are up 284.2% and 157.1%, respectively. Estimates for the full years of 2006 and 2007 have also experienced a considerable leap, rising 64.5% and 43.3%, respectively. Investors requiring a stream of cash flow from their investment in VLCCF have enjoyed a current dividend yield of 12.8%. During the second quarter, the company used $2.9 million of its cash to repay its loan and credit facilities, while $17.1 million was distributed via dividend payments. On Aug 11, the Board of Directors authorized a quarterly cash dividend of 80 cents per share. When examining VLCCF's level of profitability, as measured by its return on equity, investors will notice that the company is superior when compared to the industry average--27% compared to 15%. VLCCF is currently trading at a valuation of 10.3x trailing 12-month earnings and at 8.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.1x trailing 12-month earnings and at 16.1x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.2, compared to 5.3 for the market. 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. | Blog Home| VitalStocks Home

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(BAMM) - Books-A-Million it looks as if BAMM will move higher yet

Background Books-A-Million, Inc. is a leading book retailer and is one of the dominant book retailers in the southeastern United States. All stores offer an extensive selection of best sellers and other hardcover and paperback books, magazines, newspapers, cards and gifts. In addition to the retail store formats, the company offers its products over the Internet at Booksamillion.com and Joemuggs.com. The company is also a wholesaler of books to, among others, bookstores, wholesale clubs, supermarkets, department stores and mass merchandisers. Full Analysis Books-A-Million continues to be on fire. Already up 95% for the year to date, BAMM stock set a record high close on Wednesday. The company's dynamic price action is fueled by positive earnings surprises. Most recently, the company reported EPS of 15 cents on Aug 17, up from 10 cents per share in the same quarter last year. The August number was a positive 36% surprise over analysts' consensus estimates. That should come as no surprise, since BAMM has a history of meeting or exceeding analysts' consensus estimates. The company has done so in 12 of the last 13 quarters. Sales grew 12.7% to $121.2 million while income was a healthy $2.49 million compared to last year's loss of $0.9 million. Technical Analysis Looking at a BAMM chart, it looks as if the stock has enough momentum to move higher yet. With Wednesday's new high, the stock took out the only overhead resistance at $18.78, set on Jun 27, 2006. The only cautionary note was that Wednesday's new high did not come with the heavy volume that Momentum traders look for so closely. Given the company's ability to produce positive earnings surprises, no overhead resistance and a generally favorable general market bias, it looks as if BAMM will move higher yet. Momentum traders need to be aware of any false breakouts, such as a new high that reverses quickly, especially since BAMM did not produce heavy volume on its latest move up. 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. | Blog Home| VitalStocks Home

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(PG) - Free cash flow generation continues to be quite impressive

The Procter & Gamble Company (PG) exceeded analysts' earnings estimates for 13 straight quarters, and in 15 out of the past 16. The company increased profits, expanded gross margins and grew profits for five years running. PG continues to expand its portfolio of brand name products through both internal development and by acquisition. Growth in free cash flow has led to a current dividend yield of 2.0% and a five-year average dividend yield of 1.9%. Full Analysis The Procter & Gamble Company and its subsidiaries engage in the manufacture and marketing of various consumer products worldwide. The company's products are sold through mass merchandisers, grocery stores, membership club stores and drug stores. PG's history of exceeding analysts' earnings expectations is truly incredible. The company beat the Street's estimate in 13 consecutive quarters and in 15 out of the past 16. PG matched the consensus estimate in the one quarter where it failed to surprise. Earnings per share grew 12.5% over the past five years and are forecasted to grow 11.1% over the next 3-5 years. On Aug 2, PG reported fiscal 2006 fourth-quarter profits of $1.9 billion, or 55 cents per share. Analysts were calling for earnings per share of 54 cents. Revenues soared 25.1% to $17.84 billion from $14.26 billion in the prior-year period. Price increases across several of the company's business segments, coupled with the business associated with its acquisition of Gillette, fueled revenue growth. For the entire year, profits jumped 25.4% to $8.68 billion from $6.92 billion in fiscal 2005. Revenues climbed 20.2% to $68.22 billion from $56.74 billion last year. Chairman of the Board, President and Chief Executive A.G. Lafley stated, “This marks the fifth consecutive year in which P&G has delivered topline growth at or above the company's targets.” PG increased profits, expanded gross margins and grew profits for five years running. PG continues to expand its portfolio of brand name products both through internal development and by acquisition. The company has also excelled at creating entirely new product categories. Recent examples of successful new categories include Swiffer in the surface cleaning category, the fat substitute Olean and Febreze in the fabric spray category. PG's free cash flow generation continues to be quite impressive. The company generated $6.5 billion of free cash flow in fiscal 2005. In fiscal 2006, it ballooned 33.9% to $8.7 billion. The excess cash is frequently put towards product innovations, acquisitions and brand development. Furthermore, PG has a current dividend yield of 2.0% and a five-year average dividend yield of 1.9%. The dividend was boosted last in March 2006 by 10.7% to 31 cents per share. The company has distributed dividends without interruption since it was incorporated in 1890. This year marked the 50th consecutive year in which the dividend was increased. PG is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. 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. | Blog Home| VitalStocks Home

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(ALY) - Posted profits in the first quarter of 2006, which topped estimates by an impressive 64.3%

Allis-Chalmers Energy, Inc. (ALY), a Zacks #1 Rank stock, crushed analysts' earnings expectations over the past two quarters by an average margin of 78.3%. The company increased revenues and expanded gross margins for the past six years. Consensus estimates have shot upward over the past 60 days. ALY's recent acquisitions should help fuel future growth. The company has a price-to-book ratio of 2.6, compared to 5.3 for the market. Full Analysis Allis-Chalmers Energy, Inc. provides services and equipment to oil and natural gas exploration and production companies located primarily in Texas, Louisiana, New Mexico, Colorado, Oklahoma, the United States Gulf of Mexico and offshore and onshore in Mexico. ALY has absolutely crushed the Street's earnings estimate over the past two quarters. In the first quarter of 2006, ALY posted profits of 23 cents per share, which topped estimates by an impressive 64.3%. Compared to its second-quarter results, however, this surprise paled in comparison. For the second quarter, analysts were calling for 26 cents per share. On Jul 20, ALY reported second-quarter earnings per share of 50 cents, equating to an eye-popping 92.3% surprise. Revenues rose 156.4% to $60.5 million compared to $23.6 million for the prior-year period. The company's rental tools segment experienced the biggest jump in revenues, soaring to $7.3 million from $405,000 a year earlier. For the first six months of the year, profits and revenues ballooned 324.2% and 150.6%, respectively, when compared to the first six months of 2005. The company increased revenues and expanded gross margins for the past six years. Profits have grown for four years running. ALY's strong second quarter and first half of the year prompted analysts to dramatically alter their earnings forecasts. Consensus estimates for this quarter and next have risen 63.0% and 71.4%, respectively, over the past 60 days. Profit forecasts for the full years of 2006 and 2007 climbed 61.0% and 47.4%, respectively, over the same period of time. The company has been fairly active in the acquisitions arena. ALY completed its purchase of DLS Drilling Logistics and Services Corporation on Aug 14. Chairman and Chief Executive Officer Micki Hidayatallah stated, “We are extremely excited about closing the DLS acquisition. We now have a significant entry into the international drilling, workover and production business, and we expect this entry to facilitate our international expansion of services.” ALY also should benefit from its acquisitions of Specialty Rental Tools in January and Rogers Oil Tool Services in April. ALY is currently trading at a valuation of 13.3x trailing 12-month earnings and at 7.5x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.9x trailing 12-month earnings and at 15.9x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.6, compared to 5.3 for the market. ALY's return on equity of 27% betters the industry average of 16%. 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. | Blog Home| VitalStocks Home

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(EAT) - Profit forecasts for next year have risen by 11.9%

Brinker International, Inc. (EAT) beat analysts' earnings expectations in seven out of the past eight quarters. Earnings per share are forecasted to grow 15% over the next 3-5 years. Analysts have been upping their profit forecasts for both this year and next. EAT opened 43 new system restaurants during the fourth quarter and 159 for the entire year. This Zacks #1 Rank stock has a current dividend yield of 1.0%. Full Analysis Brinker International, Inc. is engaged in the ownership, operation, development and franchising of restaurant concepts. The company has over 1,500 restaurants which include Chili's Grill & Bar, Chili's Too, Romano's Macaroni Grill, On the Border Mexican Grill & Cantina and Maggiano's Little Italy. EAT has a solid history of exceeding analysts' earnings expectations. Over the past eight quarters, the company beat the Street's estimate on seven occasions, while meeting once. Earnings per share grew 10% over the past five years and are expected to grow by a larger margin going forward—15% over the next 3-5 years. EAT's projected growth rate is in line with that of the industry. On Aug 10, EAT's fiscal 2006 fourth-quarter earnings per share came in at 70 cents. With analysts expecting 65 cents, the company surprised to the upside by 7.7%. However, compared to the prior-year period, earnings were down by a penny. Revenues climbed 7.2% to $1.07 billion from $998.4 million in the fourth quarter of fiscal 2005. For the entire year, profits experienced a 32.6% increase and revenues advanced 10.7%. EAT increased revenues and expanded gross margins for the past nine years. The company grew profits for two years running. EAT successfully opened 43 new system restaurants during the fourth quarter which led to a record 159 new system restaurants during the entire fiscal year. Furthermore, EAT signed 20 new international development agreements for 105 new restaurants over the next several years. Through its share repurchase program, the company bought back 1.4 million shares during the fourth quarter and 7.8 million shares during fiscal 2006. Moreover, on Aug 28, the Board of Directors authorized the repurchase of up to 11.7 million shares of its common stock, for a maximum aggregate purchase price of $450 million. The amount was reduced to 11.3 million on Sep 26, however, the timeframe was extended and the share price range was increased. The consensus earnings estimate for this year currently sits at $2.57. This represents a 4.9% increase over the past 60 days. Profit forecasts for next year have risen by a larger margin—11.9% to $2.92 over the same period of time. Seven analysts upped their estimates for this year, while four did so for next year. The Board declared a quarterly dividend of 10 cents per common share of stock on Aug 16. EAT is currently yielding 1.0%. The company's return on equity of 19% tops the industry average of 13%. 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. | Blog Home| VitalStocks Home

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(ONNN) - Earnings estimates for this year and next have soared over the past 90 days

ON Semiconductor has seen earnings estimates for this year and next soar over the past 90 days. Over that time period, this year's numbers have jumped 30.4% to 73 cents per share, while next year's estimates have increased 27.3% to 84 cents per share. The stock is cheap at 7.1x next year's estimates, well below the long-term growth rate of 20%, giving the stock a PEG ratio of 0.36. Full Analysis ON Semiconductor Corporation (ONNN) is an original equipment manufacturer (OEM) of a broad-based semiconductor analog component product portfolio. The company was spun off from Motorola in August 1999, and went public through an IPO in May 2000. Currently, the company markets over 17,000 individual devices. The company sold approximately 28.4 billion units in 2004. ON Semiconductor has a broad range of products and a diverse clientele, with 200 direct customers and 320 indirect OEM customers. The semiconductor sector trough was reached in the early part of 2005 and a new up cycle has begun. The quarter was characterized by a rebound of five of the company's six end markets. The company also recorded design wins for its filter products at four of the top five cell phone manufacturers. This strength is expected to continue into the fourth. The computing and consumer markets are likely to experience some seasonal growth, as customers build stock in preparation for the holiday season. Growth in the second half of the year will be driven by the computing and wireless segments, with contract wins in the gaming industry possibly contributing to Q4 and thereafter. ONNN potentially can grow quicker than the market due to its innovation and development of computing and gaming technology. On July 27, 2006, ON Semiconductor announced results for the second quarter of fiscal year 2006 ending June 2006. The top and bottom lines could be characterized as being ahead of consensus estimates. Revenue for the second quarter was $375.3 million, up 12% sequentially, and up 24% year-over-year. Revenue was ahead of management's guidance of 354.0 million by 6%. Earnings estimates for this year and next have soared over the past 90 days. Over that time period, this year's numbers have jumped 30.4% to 73 cents per share, while next year's estimates have increased 27.3% to 84 cents per share. The stock is cheap at 7.1x next year's estimates, well below the long-term growth rate of 20%, giving the stock a PEG ratio of 0.36. 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. | Blog Home| VitalStocks Home

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(CRDN) - Profit forecasts for this quarter and next quarter rose 11.8% and 13.1%, respectively, over the past 60 days

Ceradyne, Inc. (CRDN), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in 14 out of the past 15 quarters by an average margin of 21.2%. The company reported record profits and revenues for the second quarter in early August, as well as for the first six months of 2006. As a result, CRDN upped its 2006 revenue and earnings per share guidance. The company has a price-to-book ratio of 3.4, compared to 5.3 for the market. CRDN's PEG ratio is 0.63. Full Analysis Ceradyne, Inc. develops, manufactures and markets advanced, technical ceramic products and components for defense, industrial, automotive/diesel, electronic and medical markets. When it comes to beating the Street's earnings estimate, CRDN is about as reliable as you can get. Over the past 15 quarters, the company exceeded analysts' expectations on 14 occasions by an average margin of 21.2%. In the one quarter where it failed to surprise, it did manage to meet expectations. On Aug 4, CRDN reported record profits of $30.0 million or $1.10 per share. The results absolutely crushed the $11.4 million, or 46 cents per share, achieved in the prior-year period. Revenues also hit an all-time high, soaring 80.2% to $162.0 million from $89.9 million in second quarter of 2005. For the first six months of the year, profits came in at $54.6 million, versus $17.4 million for the first six months of 2005. Revenues ballooned 86.9% to $298.4 million. Total backlog was up 19.0% to $256.6 million. All three also represented records for the company. CRDN raised its full-year 2006 revenue guidance to between $605 million and $625 million, and also upped its earnings per share outlook to between $4.20 and $4.35. Earnings per share are forecasted to grow 15.0% over the next 3-5 years. Consensus earnings estimates have been shooting upward. Profit forecasts for this quarter and next quarter rose 11.8% and 13.1%, respectively, over the past 60 days. Six analysts submitted upward revisions for both quarters. Estimates for this year and next are up 8.1% and 3.4%, respectively, over the same period of time. Six analysts bumped up their earnings projections for this year, while five followed suit for next year. CRDN is currently trading at a valuation of 12.5x trailing 12-month earnings and at 9.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.8x trailing 12-month earnings and at 15.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 3.4, compared to 5.3 for the market. CRDN's PEG ratio currently sits at 0.63. The company's return on equity is nearly six times that of the industry average—34% compared to 6%. 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. | Blog Home| VitalStocks Home

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(INFY) - Over the past 90 days, five analysts upped their earnings estimates for both this quarter and next quarter

Infosys Technologies Limited (INFY) topped analysts' earnings estimates in 10 out of the past 13 quarters by an average margin of 8.0%. Earnings per share are forecasted to grow 28% over the next 3-5 years. The company increased revenues, expanded gross margins and grew profits for the past six years. INFY has a current dividend yield of 1.0% and its return on equity crushes that of the industry average--36% compared to 13%. Full Analysis Infosys Technologies Limited is a technology services company that, together with its subsidiaries, engages in the design and delivery of information technology-enabled business solutions. INFY exceeded analysts' earnings expectations in 10 out of the past 13 quarters by an average margin of 8.0%. Earnings per share grew 38% over the past five years and are forecasted to grow 28% over the next 3-5 years. The industry, by comparison, is projected to grow by a 15% clip. The company reported first-quarter fiscal 2007 profits of 31 cents per share, which topped the Street's estimate by a solid 12.7%. The result represented a 44.2% year-over-year improvement from 21.5 cents in the prior-year period. Revenues climbed 38.7% to $660 million from $476 million in the first quarter of fiscal 2006. CEO, President and Managing Director Nandan M. Nilekani stated, “Our efforts in building the brand, developing the client base and expanding strategic accounts have fueled our robust organic model.” INFY increased revenues, expanded gross margins and grew profits for the past six years, most recently by 35.2%, 32.0% and 32.5%, respectively, in fiscal 2006. Growing cash flows from operating activities have enabled the company to currently yield 1.0%. Over the past 90 days, five analysts upped their earnings estimates for both this quarter and next quarter. Six analysts submitted higher revisions for this year while four followed suit for next year. The company's return on equity of 36% illustrates management's success in enhancing shareholder value. Furthermore, INFY's return on equity continues to remain the highest among its peers, trumping the industry average of 13%. INFY is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. 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. | Blog Home| VitalStocks Home

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(VIVO) - Both analysts covering the stock have raised their estimates for next year

Meridian Bioscience has exceeded analyst expectations for five consecutive quarters. Year-over-year growth has been consistently in the double digits over the past few years. Both analysts covering the stock have raised their estimates for next year. Over the past 60 days, next year's numbers have increased 7.9% to 82 cents per share. Full Analysis Meridian Bioscience, Inc. (VIVO) operates as an integrated research, development, manufacturing, marketing, and sales organization in the field of life science. It develops, manufactures, and distributes diagnostic test kits primarily for respiratory, gastrointestinal, viral, and parasitic infectious diseases. The company is also involved in bulk antigens, antibodies, and reagents used by researchers and other diagnostic manufacturers, as well as provides contract manufacturing service of proteins and other biologicals for use by biopharmaceutical and biotechnology companies that are engaged in research for new drugs and vaccines. It markets its products to hospitals, reference laboratories, research centers, veterinary testing centers, physician offices, and diagnostics manufacturers in approximately 60 countries worldwide, through direct sales force and independent distributors. Meridian Bioscience has a strategic partnership with Merck KGaA for the development of new assays for the clinical market. In late-July, the company reported that fiscal third-quarter profits of 18 cents per share exceeded analyst expectations of 17 cents. Net income grew 20% year-over-year, while sales rose 5 percent to $26.6 million from $25.4 million last year. The company also reaffirmed its increased full-year earnings per share guidance of 63 cents to 66 cents on sales of $106 million to $109 million. John A. Kraeutler, President and Chief Operating Officer, commented, "Our diagnostics businesses continue to generate solid growth in sales, operating income and cash flow, leading to impressive gains in operating margins. Led by our innovative tests for stomach ulcers, C. difficile disease and upper respiratory infections, we continue to capture market share in the primary strategic segments of Meridian's global diagnostics business." VIVO has exceeded analyst expectations for five consecutive quarters. Year-over-year growth has been consistently in the double digits over the past few years. Both analysts covering the stock have raised their estimates for next year. Over the past 60 days, next year's numbers have increased 7.9% to 82 cents per share. The stock is currently trading at 28x next year's estimates, above the projected long-term growth rate of 22%, giving the stock a PEG ratio of 1.27. 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. | Blog Home| VitalStocks Home

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(CMI) - Company's quarterly dividend was increased by 20%

Cummins, Inc. (CMI), a Zacks #1 Rank stock, beat the Street's earnings estimate in 10 out of the past 11 quarters. After posting impressive results for the second quarter of 2006, the company boosted its full-year earnings per share guidance. The Board of Directors recently upped its quarterly dividend by 20% and authorized a new share repurchase program. The company has a price-to-book ratio of 2.2, compared to 5.3 for the market. CMI's PEG ratio currently sits at 0.58. Full Analysis Cummins, Inc. designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products. The company serves customers in more than 160 countries through its network of 550 company-owned and independent distributor facilities and more than 5,000 dealer locations. CMI exceeded analysts' earnings expectations in 10 out of the past 11 quarters by an average margin of 13.9%. On Jul 27, the company reported second-quarter profits of $3.83 per share, topping the Street's estimate by 5.5%. Compared to the prior-year period, earnings soared 35.3%. Revenues came in at $2.84 billion and represented a 14.1% jump from the $2.49 billion achieved in the second quarter of 2005. Chairman and Chief Executive Officer Tim Solso stated, “We had a terrific second quarter and remain on pace for a record 2006. Our markets are strong around most of the world, we are winning new business and we continue to serve our customers well.” The Board of Directors recently made two important announcements. The company's quarterly dividend was increased by 20% to 36 cents from 30 cents per share. Moreover, the Board authorized the repurchase of up to 2 million shares of CMI's common stock. The company completed its previous $100 million buyback in June. Thanks to a solid second quarter, CMI upped its 2006 earnings per share guidance to between $14.00 and $14.20. The company's prior outlook called for profits between $12.40 and $12.60 per share. Earnings per share over the next 3-5 years are expected to grow 14%—in line with the forecasted growth rate of the industry. CMI is currently trading at a valuation of 9.6x trailing 12-month earnings and at 8.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.9x trailing 12-month earnings and at 15.9x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.2, compared to 5.3 for the market. CMI's PEG ratio currently sits at 0.58. The company's return on equity of 31%, a common measure of profitability, is in line with the industry average. 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. | Blog Home| VitalStocks Home

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(LUX) - return on equity betters that of the industry average --19% compared to 16%

Luxottica Group (LUX) recently increased its 2006 earnings per share guidance after releasing solid results for the second quarter and first six months of the year. Consensus estimates for both this year and next year have been on the rise. This Zacks #1 Rank stock is currently yielding 0.90% and its return on equity betters that of the industry average—19% compared to 16%. Full Analysis Luxottica Group is the world's leading designer, manufacturer and distributor of prescription frames and sunglasses in the premium and luxury segments. The company's brand portfolio currently includes a total of 26 brands. LUX operates in the retail segment, which consists of LensCrafters, Inc., Pearle Vision and Sunglass Hut. On Jul 27, LUX reported second-quarter profits of 121.2 million euros ($152.5 million), or 27 euro cents a share (34 cents per American Depositary Share). Revenues rose 12.2% to 1.29 billion euros ($1.63 billion) from 1.15 billion euros in the prior-year period. Retail same-store sales, or sales at stores open at least one year, jumped 7.3%. Chief Executive Officer Andrea Guerra stated, “Results for the first half of 2006 were outstanding all around, in all regions and in both our wholesale and retail businesses. We continued to significantly outpace growth in our sector, gaining additional market share in key markets as well as additional visibility and penetration for our brands.” LUX increased revenues and expanded gross margins over the past four years, most recently by 35.3% and 36.1%, respectively, in 2005. The company grew profits for the past two years. Due to its impressive first half of the year, the company upped its earnings per share guidance for the full year of 2006 to between EUR 0.93 and EUR 0.94 (or earnings per American Depositary Share of between $1.16 and $1.17). The consensus estimate for 2006 currently resides at $1.22 per share. When compared to the consensus of 60 days earlier, it has jumped 8.0%. Profit forecasts for next year have risen by the same percentage over the past two months. Earnings per share are projected to grow 17% over the next 3-5 years, slightly higher than the 16% projected for the industry. Shareholders requiring additional cash flow in the form of a dividend have enjoyed a current dividend yield of 0.90%. The company boosted its cash dividend for 2005 by 26%. LUX's return on equity betters that of the industry average—19% compared to 16%. 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. | Blog Home| VitalStocks Home

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(NSIT) - met or exceeded earnings estimates in 13 out of the past 14 quarters

Insight Enterprises has met or exceeded earnings estimates in 13 out of the past 14 quarters. Year-over-year growth has been steadily in the double digits over that time period. Two analysts have raised their estimates for this year and next year. Next year's estimates have jumped 9.4% to $1.63 per share over the past month. Full Analysis Insight Enterprises, Inc. (NSIT) and its subsidiaries provide information technology products and services to businesses, government, and educational institutions in the United States, Canada, and the United Kingdom. The company's product categories include notebooks and personal digital assistants, desktops and servers, software, network and connectivity, printers, storage devices, supplies and accessories, memory and processors, monitors and video, and miscellaneous products. It also offers various services, including advanced integration, custom configuration, network design, and deployment and installation services, as well as third-party services, such as warranties, training, and leasing. The company reported in late-July that quarterly net sales grew of 6.4% from $786.7 million in Q2 2005 to $837.1 million in Q2 2006. NSIT also reported 26% year over year growth in non-GAAP(a) diluted EPS from $0.31 in Q2 2005 to $0.39 in Q2 2006 (104% year over year growth in GAAP diluted EPS from $0.26 in Q2 2005 to $0.53 in Q2 2006.) "The second quarter of 2006 has been a very exciting and successful quarter for Insight," said Rich Fennessy, chief executive officer. "We posted strong financial results, divested a non-core part of our business and are announcing today an acquisition that will solidify our value proposition as a trusted advisor to our clients." NSIT also made a key acquisition when it announced it would buy Software Spectrum Inc., a business-to-business information technology software manager, from information services company Level 3 Communications for $287 million in cash. Insight expects it to be beneficial to 2006 earnings. NSIT has met or exceeded earnings estimates in 13 out of the past 14 quarters. Year-over-year growth has been steadily in the double digits over that time period. Two analysts have raised their estimates for this year and next year. Next year's estimates have jumped 9.4% to $1.63 per share over the past month. The stock is currently trading at 12.8x next year's estimates, well below the projected long-term growth rate of 16.5%, giving the stock a PEG ratio of 0.78. 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. | Blog Home| VitalStocks Home

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David Fried, Buyback Premium Portfolio - Siderurgica (SID) - Holly Corporation (HOC) - BJ Services Company (BJS)

David Fried, editor of the Buyback Premium Portfolio, offers information on companies that he and his team believe will outperform the market as a group. Take a look at a few of the names this featured expert highlights in his monthly update. Learn about a Brazilian steelmaker and two companies from the oil space. Mid-September Update from September 15 New Premium Portfolio Recommendations include: Brazilian steelmaker CO Siderurgica (SID), also known as Companhia Siderúrgica Nacional (CSN), is a leading global steel producer with operations in Latin America, North America, and Europe. The company is a fully integrated steel producer, the largest coated steel producer in Brazil, with current capacity of 21.5 million tons of iron ore, 5.6 million tons of crude steel, 5.1 million tons of rolled products and 2.9 million tons of coated steel capacity. Integrated steelworks means that CSN uses its own sources of iron ore and electrical power supply, controls logistics assets -- ports and railways -- that enable a cost-efficient and reliable loading and unloading of slabs and ore for deep sea vessels. All of this paves the way for CSN to be one of the most cost competitive steel producers in the world. CSN has had operations in the U.S. since 2001 through its wholly-owned subsidiary CSN LLC (formerly known as Heartland Steel) at Terre Haute, Indiana. CSN LLC has an annual production capacity of 1 million tons of cold-rolled, galvanized and hot rolled products. In early August, Wheeling-Pittsburgh Corp. announced it was going to merge with CSN; that merger is opposed by the United Steelworkers, which prefers a merger with Ill.-based steel supplier Esmark Inc. A CSN/Wheeling-Pitt merger would create a company that has the capacity to produce more than 5 million tons of cold-rolled and hot-dipped galvanized steel a year. CSN reduced its shares outstanding by 10% in the past 12 months. Independent petroleum refiner and marketer Holly Corporation (HOC) produces light products such as gasoline, diesel fuel and jet fuel. Holly operates through its subsidiaries an 82,000 barrels per day (bpd) refinery located in Artesia, New Mexico and a 26,000 bpd refinery in Woods Cross, Utah. Holly also owns a 45% interest in Holly Energy Partners, L.P. An independent refiner focuses on refining and marketing petroleum products but does not have oil and gas production operations -- unlike the large "integrated" companies such as Exxon Mobil and Chevron, which produce, refine and market energy products. Forbes Magazine named Holly one of America's best managed companies for 2005 (the announcement was in Jan. 2006), and recognized Holly's five-year annualized total return of 80.7% as the best in the oil and gas industry. Forbes selects the 400 best managed big companies in America ($1 billion or more in revenues) for its Forbes Platinum 400 list, evaluating sales and earnings growth, stock market returns, debt to total capital, forecasts for long-term earnings, accounting and governance practices, financial condition, earnings quality, innovation, efficiency and market leadership. In early August, Holly announced that improved refining margins fueled a 78% increase in second-quarter profit, which rose to $93.1 million, or $1.60 a share, from $52.4 million, or 81 cents a share, a year earlier. Excluding discontinued operations, earnings would have been $1.51 a share, vs. 79 cents a share a year ago. Revenue increased 54% to $1.12 billion from last year's $728.7 million, due primarily to higher refined product prices. In the past 12 months, shares outstanding declined 9%. BJ Services Company (BJS) is a leading provider of pressure pumping and other oilfield services to the petroleum industry. Based in Houston, it has customers in most of the major oil and natural gas producing regions of the U.S., Canada, Latin America, Europe, Asia, Africa and the Middle East. In late July, BJS reported a gusher in 3rd quarter earnings year over year. Net income for the quarter ended June 30, 2006 was $212.9 million, or $0.67 per diluted share. Third quarter diluted earnings per share improved 91% compared to the $0.35 per diluted share for the third quarter of fiscal 2005 and up 8% compared to the $0.62 per diluted share for the previous quarter. The company is also a robust repurchaser, with a late-May announcement increasing the repurchase authority by $1 billion, supplementing some $270 million available to spend from prior authorizations. Commenting on the authorization, CEO J. W. Stewart said, "The expansion of the repurchase program allows the company to continue utilizing its free cash flow and leverage capacity to further repurchase shares and to enhance long-term shareholder value while maintaining considerable financial flexibility to pursue growth opportunities.” Outstanding shares decreased 7.6% in the past 12 months. This article highlights the commentary of David R. Fried for the Zacks.com audience. David R. Fried provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Buyback Premium Portfolio" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Buyback Premium Portfolio" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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Jack Adamo, Insiders PLUS newsletter - Fording Canadian Coal Trust (FDG) - Teva Pharmaceutical, Ltd. (TEVA) - Smithfield Foods (SFD)

Jack Adamo, editor of the Insiders PLUS newsletter, highlights a company that he says is holding its own better than any pure play coal stock, a name from the drug sector and a possible merger between two pork producers. Read this featured expert's thoughts and benefit from his expertise. PORTFOLIO UPDATES from September 23 Fording Canadian Coal Trust (FDG) this week declared a quarterly dividend of 80¢ Canadian, which is about 72¢ U.S. This represents an annualized yield of 8.4% on Jack Adamo and his team's original buy price. As Adamo said when he recommended this company, he expected the share price to fluctuate, but the yield, even in bad times, would stay above that obtainable from bonds, and in good times, it should beat almost any return you can get legally. The stock remains true to expectations. Although it is down 12.5% for Adamo and his team, it is holding its own better than any pure play coal stock. This is to be expected with high dividend-paying stocks. There's less fear from selling because you know you're getting a steady return on your investment; you're not relying on the vagaries of the market. As coal prices recover, Fording will make back its current deficit and then some. The dividends will be all gravy. Teva Pharmaceutical, Ltd. (TEVA) took a 5% hit this week on bad news for the generic drug sector. Wal-Mart, in a battle to forestall political attacks on it, has launched a campaign to win America's hearts with super-cheap prices on certain generic drugs. With Wal-Mart's buying power, it could certainly impact industry pricing negatively. Nonetheless, although this is a substantive issue, it is no cause for panic. Teva is the best operator in its industry. It may actually gain by this move, if it becomes a major provider to Wal-Mart. It certainly has the capacity and efficiency to be. That's up in the air, but Adamo would expect this and other recent issues to have a relatively small impact on the company. Over the long-term, it means the difference between Teva doing well, and very well. Smithfield Foods (SFD) also had a bad week, when it announced it was acquiring fellow pork producer, Premium Brands. Frankly, since Smithfield is number one in size and Premium is number two, Adamo will be surprised if this transaction gets approval here and in the EU without major divestitures. But, although Adamo is not usually a fan of growth by acquisition, Smithfield has an excellent track record in this regard; so, he'll be happy whether the merger is approved or not. This article highlights the commentary of Jack Adamo for the Zacks.com audience. Jack Adamo provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Insiders PLUS" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Insiders PLUS" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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Richard Moroney, Upside newsletter - Hurco (HURC) - Men's Wearhouse (MW) - Swift Energy (SFY) - Teledyne Technologies (TDY) -

Richard Moroney, editor of the Upside newsletter, explains that a growing number of small and midcap companies are capitalizing on opportunities abroad. Take a look at a sampling of a list of stocks that this featured expert has labeled as Overseas Sales Leaders. One of the overseas plays is a company that ranks among the top three providers of pawn loans in Mexico. Another is a maker of computerized machine systems for the metalworking industry. STOCK PICKS Seeking growth? Consider foreign exposure While U.S. economic growth is widely expected to slow in 2007, the outlook overseas is considerably brighter. In September, the International Monetary Fund trimmed expectations for U.S. growth to 2.7% in 2007, down from the 3.1% expected for 2006. But the IMF lifted slightly its expectations for the world economy, predicting global growth of 4.9% in 2007 versus 5.1% in 2006. Other forecasters expect the divergence to be even more extreme. Economists at Merrill Lynch predict U.S. growth will slow to 1.9% in 2007 from 3.4% in 2006, reflecting a correction in the housing market and weaker consumer spending. Because of growth in Asia and developing nations, however, Merrill expects growth outside the U.S. of 5.2% in 2007 — down from 5.7% in 2006 but still very healthy by historical standards. For investors in U.S. stocks, the important question is not whether overseas growth will be 4% or 6%. What matters is whether you can find opportunities to capitalize on likely pockets of growth. While U.S. investors typically look to large-company stocks for foreign exposure, a growing number of small and midcap companies are capitalizing on opportunities abroad. Because small companies usually have more focused product lines, they can provide more targeted plays on attractive growth niches. Reviewed in the following paragraphs are a few high-quality small companies with attractive overseas prospects. All companies seem positioned for healthy profit growth over the next 12 to 18 months, partly because of gains overseas. A Sampling of Overseas Sales Leaders First Cash Financial Services (FCFS), the third-largest provider of pawn loans in the U.S., also ranks among the top three providers of pawn loans in Mexico. Pawn loans, usually lasting about one month, are secured with personal property held as collateral. First Cash operates 147 pawn stores in Mexico and 97 in the U.S. It also has 126 payday-lending stores in the U.S. Most of the company's recent growth in pawn shops has been in Mexico. Many of its Mexican pawn shops are relatively new, so their contribution to profits should swell in 2007 as stores mature. Revenue and profit growth has been strong across First Cash's product lines and geographic markets. The August acquisition of Auto Master should broaden the company's product line and bolster near-terms sales and earnings growth. Hurco (HURC), a maker of computerized machine systems for the metalworking industry, has delivered strong sales and profit growth, driven by overseas operations. July-quarter sales and service fees jumped 35% in Europe and 36% in Asia. Demand in those regions, accounting for 69% of total sales in the quarter, has benefited from strong demand for expensive models. Order rates in the U.S. rose only slightly last quarter, but gains overseas fueled a 32% increase in total orders. Hurco serves a wide range of industries, including aerospace and defense, medical equipment, energy, transportation, and computer equipment. At nine times estimated year-ahead earnings of $2.68 per share, the stock seems undervalued considering its growth prospects. Other Overseas Sales Leaders include: Men's Wearhouse (MW) is one of the largest specialty retailers of menswear in the United States and Canada. Under the Men's Wearhouse brand, the company targets middle and upper middle income men by offering quality merchandise at everyday low prices. In addition to value, Men's Wearhouse, Inc. provides a superior level of customer service. Swift Energy (SFY) engages in the development, exploration, acquisition, and operation of oil and gas properties with a primary focus on U.S. onshore natural gas reserves located in Texas and Louisiana. The company currently focuses on development and exploration in four core areas: AWP Olmos in Southern Texas; Brookeland in Eastern Texas; Giddings in south-central Texas; and Master Creek in Western Louisiana. Teledyne Technologies (TDY) is a leading provider of sophisticated electronic and communication products, systems engineering solutions and information technology services, and aerospace engines and components. The company customers include aerospace prime contractors, general aviation companies, government agencies and major communications and other commercial companies. This article highlights the commentary of Richard Moroney for the Zacks.com audience. Richard Moroney provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Upside" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Upside" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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