(FARO) - FARO Technologies, Inc - has blown away earnings estimates in the past three quarters by at least 83%

FARO Technologies has blown away earnings estimates in the past three quarters by at least 83%. All three analysts covering the stock have raised their numbers for this year. over the past 90 days, this year's estimates have increased 28.6% to 45 cents per share, while next year's numbers have jumped 18.8% to $1.01 per share. Full Analysis FARO Technologies, Inc. (FARO) engages in the design, development, manufacture, marketing, and support of portable, software driven, and 3-D measurement systems that are used in various manufacturing, industrial, building construction, and forensic applications. The company offers Faro Arm, Faro Scan Arm, Digital Template, and Faro Gage articulated electromechanical measuring devices; Faro Laser Tracker and FARO Laser Scanner LS laser-based measuring devices; and CAM2 software. FARO just reported a 23% increase in third-quarter net income, a 17.8% increase in sales and a 31.2% increase in new order bookings. Net income for the Lake Mary-based computerized measurement devices and software firm totaled $3.2 million, or 22 cents per share, up from $2.6 million, or 18 cents per share, in the year-ago period. This blew away estimates of 12 cents per share. Sales for the third quarter were $38.4 million, up from $32.6 million in the third quarter of 2005. New order bookings for the third quarter were $38.7 million, as compared with $29.5 million in the year-ago quarter. "The Company continues to perform well and the benefits can be seen throughout the income statement and balance sheet," stated Jay Freeland, FARO President and Co-CEO. "Our top-line growth and gross margin remain on plan, and we're getting the leverage we expected from our sales and marketing organization. Market demand has accelerated growth in Europe and Asia while maintaining the strength we've seen in the Americas for the last 18 months. The end result for the third quarter is solid double-digit earnings growth and a $2.0 million increase in cash." FARO has blown away earnings estimates in the past three quarters by at least 83%. All three analysts covering the stock have raised their numbers for this year. over the past 90 days, this year's estimates have increased 28.6% to 45 cents per share, while next year's numbers have jumped 18.8% to $1.01 per share. The stock is currently trading at 20.6x next year's estimate of $1.01 per share, below the projected long-term growth rate of 22.50%, giving the stock a PEG ratio of 0.91. 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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(INDM) - United America Indemnity, Ltd - Consensus estimates for 2006 and 2007 have experienced considerable leaps over the past 30 days

United America Indemnity, Ltd. (INDM), a Zacks #1 Rank stock, topped the Street's earnings estimate in three out of the past four quarters, most recently by 14.8%. The company reported solid results for both the third quarter and first nine months of 2006. Consensus estimates for this year and next year have been on the rise. INDM has a price-to-book ratio of 0.85, compared to 5.5 for the market. Its PEG ratio currently sits at 0.86. Full Analysis United America Indemnity, Ltd., through its wholly owned subsidiaries, operates as a specialty property and casualty insurer in the United States. The company operates through two business segments: Insurance Operations, which offers two classes of insurance products: property and general liability insurance products and professional liability insurance products, and Agency Operations, which specializes in property, casualty, transportation, public entity, professional, excess and umbrella, specialty and personal lines. INDM exceeded analysts' earnings expectations in three out of the past four quarters by an average margin of 8.9%. On Oct 25, the company posted third-quarter operating income of $22.9 million, or 62 cents per share. This compares quite favorably to the $9.9 million, or 27 cents per share earned in the prior-year period. INDM surprised by a solid 14.8% with analysts calling for profits of 54 cents per share. Gross premiums written jumped 2.6% to $167.9 million, while net premiums written increased 8.0% to $145.7 million when compared to the third quarter of 2005. For the first nine months of the year, operating income increased 43.2% to $61.0 million from $42.6 million for the same period in 2005. Gross premiums written climbed 6.9% to $494.7 million and net premiums written rose 11.3% to $423.7 million. INDM's combined ratio, a measure of profitability used by insurance companies, was 90.4% in the third quarter. The measure excludes the impact of the reduction in net loss and loss adjustment expenses relating to prior accident years. The combined ratio for the third quarter of 2005 was 89.8%, excluding the impact of catastrophe losses from Hurricanes Katrina and Rita. A ratio greater than 100% means that an insurance company is paying out more money in claims than it is receiving from premiums. Consensus estimates for 2006 and 2007 have experienced considerable leaps over the past 30 days. Estimates for 2006 currently reside at $2.22 and represent an 8.3% increase when compared to the consensus a month earlier. Profit forecasts for 2007 have risen 7.5% to $2.29 over the same period of time. Earnings per share are forecasted to grow 12% over the next 3-5 years, in line with the expected growth rate of the industry. INDM is currently trading at a valuation of 10.5x trailing 12-month earnings and at 10.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 0.85, compared to 5.5 for the market. Its PEG ratio currently sits at 0.86. 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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(DCI) - Donaldson Company, Inc - increased revenues for the past four years and expanded gross margins and grew profits for nine years running

Donaldson Company, Inc. (DCI) beat the Street's earnings estimate in four out of the past five quarters, most recently by 7.5%. On Sep 5, this Zacks #1 Rank stock reported record quarterly and full-year earnings per share, net income and revenues. Analysts have been upping their profit forecasts for fiscal 2007 and fiscal 2008. The Board of Directors raised its quarterly cash dividend by 12.5% in late July. DCI's return on equity nearly doubles that of the industry average—25% compared to 13%. Full Analysis Donaldson Company, Inc., through its subsidiaries, engages in the design, manufacture, and sale of filtration systems and replacement parts worldwide. The company serves customers in the industrial and engine markets, including dust collection, power generation, specialty filtration, compressed air purification, off-road equipment, industrial compressors, heavy trucks and light vehicles. DCI exceeded analysts' earnings expectations in four out of the past five quarters by an average margin of 6.0%. Moreover, the company beat or met estimates in six out of the past seven quarters. Earnings per share grew 12.9% over the past five years. The fourth quarter of fiscal 2006 marked all-time highs in earnings per share, net income and revenues for DCI. On Sep 5, the company reported fourth-quarter profits of 43 cents per share, compared to 39 cents per share in the prior-year period. The result amounted to a 7.5% positive surprise with analysts projecting 40 cents per share. Revenues came in at $468.2 million, up 10.8% versus $422.7 million in the fourth quarter of fiscal 2005. For the entire fiscal year, profits rose 19.6% to $132.3 million, while revenues jumped 6.1% to $1.694 billion, when compared to fiscal 2005. Earnings per share, net income and sales were also records for the full year. DCI increased revenues for the past four years and expanded gross margins and grew profits for nine years running. Earnings per share are forecasted to grow 12% over the next 3-5 years, in line with the expected growth rate of the industry. Chairman, President and CEO Bill Cook stated, “We are very pleased to announce another record year, and are especially pleased that we finished the year with solid sales growth and strong margin performance.” Fiscal 2006 represented the 17th straight record year for the company. DCI bought back 1,434,800 shares during the fourth quarter at a cost of $45.8 million. Throughout the entire year, the company repurchased 3,783,000 shares for $118.9 million. Consensus estimates for fiscal 2007 increased 5.4% to $1.77 over the past 60 days, and reflect upward revisions by three analysts. Profit forecasts for fiscal 2008 rose 5.0% to $1.89 over the past two months. One analyst upped his earnings estimate. On Jul 28, the Board of Directors boosted its quarterly cash dividend by 12.5% to nine cents per common share of stock from eight cents. The company has a current dividend yield of 0.96% and a five-year average dividend yield of 0.81%. DCI's return on equity nearly doubles that of the industry average—25% compared to 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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(INDM) - United America Indemnity, Ltd - Consensus estimates for 2006 and 2007 have experienced considerable leaps over the past 30 days

United America Indemnity, Ltd. (INDM), a Zacks #1 Rank stock, topped the Street's earnings estimate in three out of the past four quarters, most recently by 14.8%. The company reported solid results for both the third quarter and first nine months of 2006. Consensus estimates for this year and next year have been on the rise. INDM has a price-to-book ratio of 0.85, compared to 5.5 for the market. Its PEG ratio currently sits at 0.86. Full Analysis United America Indemnity, Ltd., through its wholly owned subsidiaries, operates as a specialty property and casualty insurer in the United States. The company operates through two business segments: Insurance Operations, which offers two classes of insurance products: property and general liability insurance products and professional liability insurance products, and Agency Operations, which specializes in property, casualty, transportation, public entity, professional, excess and umbrella, specialty and personal lines. INDM exceeded analysts' earnings expectations in three out of the past four quarters by an average margin of 8.9%. On Oct 25, the company posted third-quarter operating income of $22.9 million, or 62 cents per share. This compares quite favorably to the $9.9 million, or 27 cents per share earned in the prior-year period. INDM surprised by a solid 14.8% with analysts calling for profits of 54 cents per share. Gross premiums written jumped 2.6% to $167.9 million, while net premiums written increased 8.0% to $145.7 million when compared to the third quarter of 2005. For the first nine months of the year, operating income increased 43.2% to $61.0 million from $42.6 million for the same period in 2005. Gross premiums written climbed 6.9% to $494.7 million and net premiums written rose 11.3% to $423.7 million. INDM's combined ratio, a measure of profitability used by insurance companies, was 90.4% in the third quarter. The measure excludes the impact of the reduction in net loss and loss adjustment expenses relating to prior accident years. The combined ratio for the third quarter of 2005 was 89.8%, excluding the impact of catastrophe losses from Hurricanes Katrina and Rita. A ratio greater than 100% means that an insurance company is paying out more money in claims than it is receiving from premiums. Consensus estimates for 2006 and 2007 have experienced considerable leaps over the past 30 days. Estimates for 2006 currently reside at $2.22 and represent an 8.3% increase when compared to the consensus a month earlier. Profit forecasts for 2007 have risen 7.5% to $2.29 over the same period of time. Earnings per share are forecasted to grow 12% over the next 3-5 years, in line with the expected growth rate of the industry. INDM is currently trading at a valuation of 10.5x trailing 12-month earnings and at 10.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 0.85, compared to 5.5 for the market. Its PEG ratio currently sits at 0.86. 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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(DCI) - Donaldson Company, Inc - return on equity nearly doubles that of the industry average—25% compared to 13%

Donaldson Company, Inc. (DCI) beat the Street's earnings estimate in four out of the past five quarters, most recently by 7.5%. On Sep 5, this Zacks #1 Rank stock reported record quarterly and full-year earnings per share, net income and revenues. Analysts have been upping their profit forecasts for fiscal 2007 and fiscal 2008. The Board of Directors raised its quarterly cash dividend by 12.5% in late July. DCI's return on equity nearly doubles that of the industry average—25% compared to 13%. Full Analysis Donaldson Company, Inc., through its subsidiaries, engages in the design, manufacture, and sale of filtration systems and replacement parts worldwide. The company serves customers in the industrial and engine markets, including dust collection, power generation, specialty filtration, compressed air purification, off-road equipment, industrial compressors, heavy trucks and light vehicles. DCI exceeded analysts' earnings expectations in four out of the past five quarters by an average margin of 6.0%. Moreover, the company beat or met estimates in six out of the past seven quarters. Earnings per share grew 12.9% over the past five years. The fourth quarter of fiscal 2006 marked all-time highs in earnings per share, net income and revenues for DCI. On Sep 5, the company reported fourth-quarter profits of 43 cents per share, compared to 39 cents per share in the prior-year period. The result amounted to a 7.5% positive surprise with analysts projecting 40 cents per share. Revenues came in at $468.2 million, up 10.8% versus $422.7 million in the fourth quarter of fiscal 2005. For the entire fiscal year, profits rose 19.6% to $132.3 million, while revenues jumped 6.1% to $1.694 billion, when compared to fiscal 2005. Earnings per share, net income and sales were also records for the full year. DCI increased revenues for the past four years and expanded gross margins and grew profits for nine years running. Earnings per share are forecasted to grow 12% over the next 3-5 years, in line with the expected growth rate of the industry. Chairman, President and CEO Bill Cook stated, “We are very pleased to announce another record year, and are especially pleased that we finished the year with solid sales growth and strong margin performance.” Fiscal 2006 represented the 17th straight record year for the company. DCI bought back 1,434,800 shares during the fourth quarter at a cost of $45.8 million. Throughout the entire year, the company repurchased 3,783,000 shares for $118.9 million. Consensus estimates for fiscal 2007 increased 5.4% to $1.77 over the past 60 days, and reflect upward revisions by three analysts. Profit forecasts for fiscal 2008 rose 5.0% to $1.89 over the past two months. One analyst upped his earnings estimate. On Jul 28, the Board of Directors boosted its quarterly cash dividend by 12.5% to nine cents per common share of stock from eight cents. The company has a current dividend yield of 0.96% and a five-year average dividend yield of 0.81%. DCI's return on equity nearly doubles that of the industry average—25% compared to 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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(KNDL) - Kendle International, Inc - The company has exceeded earnings estimates in seven out of the past eight quarters

Kendle has exceeded earnings estimates in seven out of the past eight quarters, with five of those positive surprises exceeding 10%. Year-over-year growth exploded over that time period as well. Over the past 60 days, this year's estimates have increased 4.7% to $1.33 per share, while next year's have risen 4.2% to $1.75 per share. Full Analysis Kendle International, Inc. (KNDL), a clinical research organization, provides various Phase I-IV clinical development services to the biopharmaceutical industry worldwide. Its clinical research services include clinical trial management, clinical data management, statistical analysis, medical writing, regulatory consulting and organizational meeting management, and publications services on a contract basis. The company said this week its third-quarter profit rose 18%, lifted by improved revenue. Net income rose to nearly $4 million, or 27 cents per share, from $3.4 million, or 24 cents per share. Total revenue rose 50% to $96.7 million. Net services revenue gained 46% to $75.2 million, of which 24% reflects organic growth and the remainder reflects the August purchase of the Phase II-IV clinical services business of Charles River Laboratories International "Kendle continues to focus first and foremost on meeting the global clinical development needs of our customers," said Candace Kendle, PharmD, Chairman and Chief Executive Officer. "Our enhanced position in the marketplace and expanded therapeutic expertise are already having a strong impact on our results. During the quarter we delivered significant growth in backlog and new business awards, further strengthening and diversifying our customer base and demonstrating the confidence our customers have in Kendle as a global provider." The company has exceeded earnings estimates in seven out of the past eight quarters, with five of those positive surprises exceeding 10%. Year-over-year growth exploded over that time period as well. Over the past 60 days, this year's estimates have increased 4.7% to $1.33 per share, while next year's have risen 4.2% to $1.75 per share. The stock is currently trading at 19.4x next year's estimate of $1.75 per share, well below the company's projected long-term growth rate of 42%, giving the stock a PEG ratio of 0.46. 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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(STLD) - Steel Dynamics, Inc - exceeded earnings estimates in four consecutive quarters. Year-over-year growth exceeded 130% in its latest quarter

Steel Dynamics, Inc., has exceeded earnings estimates in four consecutive quarters. Year-over-year growth exceeded 130% in its latest quarter. Six analysts have raised their estimates for this year, while four have done so for next year. Over the past 30 days, this year's estimates have increased 27 cents to $7.49 per share. The company sports a return on equity (ROE) of 34%, ahead of the industry average of 28%. Full Analysis Steel Dynamics, Inc. (STLD) is a steel manufacturing company in the United States. The company operates in two segments: steel operations and steel scrap substitute operations. STLD's customer base includes steel service centers, pipe and tube producers, original equipment manufacturers, steel fabricators, cold finishers, forgers and intermediate processors. In mid-October, the company said third-quarter profit more than doubled on an 83% increase in revenue. Steel Dynamics earned $118.7 million, or $2.17 per share, compared with $45.4 million, or 92 cents per share, for the same quarter in 2005. Revenue grew to $911.9 million from $498.7 million in the year-ago period. Analysts expected $2.10 per share. STLD stuck with its fourth-quarter profit prediction of $2.10 to $2.20 per share, although the company expects shipping volume to be lower in the quarter because of planned maintenance. Analysts, on average, expect fourth-quarter profit of $1.99 per share for Steel Dynamics. As would be expected, the CEO had great things to say about the quarter: "The third quarter was an excellent quarter, setting company records for revenue and earnings," said Keith Busse, President and CEO of Steel Dynamics. "Three of our steel-making divisions, Structural and Rail, Engineered Bar Products, and the Roanoke Bar division, set new tonnage shipping records in the third quarter.” The company said this week its board approved a 2-for-1 stock split. The split will be paid through a stock dividend. It will double the number of authorized common shares to 200 million, up from 100 million. The company expects to distribute the shares on, or around, Nov. 20. to shareholders on record as of Nov. 9. STLD has exceeded earnings estimates in four consecutive quarters. Year-over-year growth exceeded 130% in its latest quarter. Six analysts have raised their estimates for this year, while four have done so for next year. Over the past 30 days, this year's estimates have increased 27 cents to $7.49 per share. The company sports a return on equity (ROE) of 34%, ahead of the industry average of 28%. The stock is cheap at 8x this year's estimates of $7.49 per share. This is below the company's projected long-term growth rate of 10.33%, 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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(AYI) - Acuity Brands, Inc - leading provider of specialty chemical products

Acuity Brands, Inc. has been the subject of bullish estimate revisions. Current fiscal 2007 earnings forecasts stand at $3.01 per share, compared to one month-ago estimates of $2.79. The company recently announced fiscal fourth quarter earnings of 93 cents per share, exceeding the consensus estimate by nearly 6% and outperforming the year-prior result. AYI is currently yielding 1.2%. Full Analysis Acuity Brands, Inc. (AYI) is comprised of Acuity Brands Lighting and Acuity Specialty Products. Acuity Brands Lighting is one of the world's leading providers of lighting fixtures, while Acuity Specialty Products is a leading provider of specialty chemical products. On October 5, 2006, Acuity Brands posted record fourth-quarter and full-year results. Fiscal fourth-quarter earnings of 93 cents per share topped Wall Street expectations by almost 6% and eclipsed last year's fourth quarter. Net sales increased 13% to $674.5 million from the previous year's $597.2 million. The company noted that it shipped more products and earned more income in the fourth quarter and for the full year than any other respective periods in its history. Fiscal 2006 earnings per share totaled $2.34 per share, versus the year-ago total of $1.17 per share. Net sales in fiscal 2006 were $2,393.1 million, which is 10% ahead of last year's sales. Earnings per share grew 12% over the past five years. Sales improved by 4% over the same time period. The consensus estimate for fiscal 2007 currently sits at $3.01—marking an increase of 8% when compared to the consensus of one month ago. Profit forecasts for fiscal 2008 jumped 12.5% to $3.60 over the same period of time. On October 2, 2006, a quarterly dividend of 15 cents per share was declared by AYI's Board. The dividend is payable November 1, 2006 to shareholders of record as of October 16, 2006. The company is currently yielding 1.2%. 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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(PAY) - VeriFone Holdings, Inc - Over the past 60 days, this year's earnings estimates have increased 14.6%

VeriFone Holdings has met or exceeded estimates in four consecutive quarters. One analyst has raised his numbers for both this year and next year. Over the past 60 days, this year's earnings estimates have increased 14.6% to $1.02 per share. Next year's numbers have also jumped 23.8% to $1.30 per share. Full Analysis VeriFone Holdings, Inc. (PAY) engages in the design and marketing of system solutions for electronic payment transactions and value-added services at point of sale. Its system solutions include point of sale electronic payment devices, security and encryption software, and certified payment software, as well as third party applications. The company's solutions process various payment types, including signature and PIN-based debit cards, credit cards, contactless/radio frequency identification or radio frequency identification, cards, smart cards, prepaid gift and other stored-value cards, electronic bill payment, check authorization and conversion, signature capture, and electronic benefits transfer. PAY's shares got a big boost in early-September following the release of better-than-expected earnings and a big guide up for the future. The company posted adjusted earnings of 28 cents per share on revenue of $147.6 million, ahead of the Street's view of a per-share profit of 26 cents on $144.4 million in sales. The company also forecast fiscal 2006 adjusted earnings between $1.07 and $1.08 per share, and 2007 adjusted earning of $1.40 to $1.42 per share. Wall Street analysts have pegged the company to earn $1.04 per share in 2006, and $1.23 per share in 2007. "We are once again extremely pleased with the consistency of our quarterly results, demonstrated by our tenth consecutive quarter with double digit revenue growth and our eighth consecutive quarter of expanded EBITDA as adjusted margins, which reached a record level of 22.6% in the quarter," said Douglas G. Bergeron, Chairman and Chief Executive Officer. Over the past 60 days, this year's earnings estimates have increased 14.6% to $1.02 per share. Next year's numbers have also jumped 23.8% to $1.30 per share. The company has met or exceeded estimates in four consecutive quarters. One analyst has raised his numbers for both this year and next year. 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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(AVT) - Avnet, Inc. - produced an 80.7% year-over-year earnings improvement

Avnet, Inc. (AVT), a Zacks #1 Rank stock, topped analysts' earnings estimates in five out of the past six quarters by an average margin of 10%. Earnings per share are forecasted to grow 16.1% over the next 3-5 years. The company has a price-to-book ratio of 1.2, compared to 5.5 for the market. Its PEG ratio currently sits at 0.62. Full Analysis Avnet, Inc. is an industrial distributor of electronic components, enterprise network and computer products, software and embedded subsystems. The company serves customers in 70 countries. AVT has been fairly successful of late in exceeding analysts' earnings expectations. The company topped the consensus estimate in five out of the past six quarters by an average margin of 10%. On Oct 26, the company beat the Street's estimate of 52 cents by 7.7% when it posted first-quarter fiscal 2007 profits of 56 cents per share. Earnings in the prior-year period came in at 31 cents, thus, AVT produced an 80.7% year-over-year improvement. Revenues jumped 11.6% to $3.65 billion from $3.27 billion. The company's solid first quarter was fueled by electronics marketing sales in Asia, Europe and the Middle East. Chairman and Chief Executive Officer Roy Vallee stated, “This performance continues to demonstrate the leverage in our business model, but what is more impressive is the consistency across the company as this is the third quarter in a row where all regions in both operating groups drove year-over-year improvement in operating margin.” AVT increased revenues and grew profits for the past four years, most recently by 28.8% and 21.6%, respectively, in fiscal 2006. The company succeeded in expanding gross margins for three years running, including a 26.1% jump last year. Looking ahead, AVT projects second-quarter consolidated sales to be between $3.83 billion and $4.03 billion. Earnings per share are expected to be in the range of 58 cents to 64 cents, compared to 50 cents in the same period last year. Over the next 3-5 years, earnings per share are forecasted to grow at a 16.1% clip. The consensus estimate for this quarter currently resides at 61 cents and represents a 10.9% increase over the past seven days. Profit forecasts for full year have risen 3.7% to $2.27 over the same period of time. AVT is currently trading at a valuation of 10.3x trailing 12-month earnings and at 9.9x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.2, compared to 5.5 for the market. Its PEG ratio currently sits at 0.62. 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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(UTX) - United Technologies Corporation - the first nine months of the year, profits jumped 17.6%

United Technologies Corporation (UTX), first presented as a Growth and Income stock on May 9, exceeded analysts' earnings expectations for 16 straight quarters. After posting solid results for the third quarter and first nine months of 2006, the company raised its full-year earnings per share guidance. Consensus estimates have been on the rise for both this year and next year. UTX has a current dividend yield of 1.6% and a five-year average dividend yield of 1.5%. Full Analysis United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The company's products include Carrier heating and air conditioning, Hamilton Sundstrand aerospace systems and industrial products, Otis elevators and escalators, Pratt & Whitney aircraft engines, Sikorsky helicopters, UTC Fire & Security systems and UTC Power fuel cells. UTX, highlighted previously on May 9 as a Growth and Income pick, continues to beat analysts' earnings expectations. Two quarters have elapsed since its debut, and the company produced two more earnings surprises. UTX has now beaten the Street's estimate in 16 consecutive quarters. On Oct 17, UTX reported third-quarter profits of $996 million, or 99 cents per share. With analysts expecting 95 cents per share, the company surprised to the upside by 4.2%. The result represented a 22.2% year-over-year improvement when compared to the 81 cents posted in the third quarter of 2005. Revenues climbed 11.5% to $12.16 billion from $10.91 billion last year. Chairman and Chief Executive Officer George David stated, “Third-quarter results overall were exceptional and reflect the balance in UTC's businesses.” For the first nine months of the year, profits jumped 17.6% to $2.87 billion, while revenues rose 11.1% to $35.0 billion, when compared to the first nine months of 2005. The company increased revenues and expanded gross margins for the past six years. Profits have grown for an impressive nine consecutive years. Based on the company's strong third-quarter and year-to-date results, UTX upped its full-year earnings per share guidance to between $3.65 and $3.69. The company's previous outlook called for profits between $3.55 and $3.65 per share. Over the past 30 days, eight analysts submitted upward earnings estimate revisions for this year. For the full year of 2007, five analysts upped their estimates. Earnings per share are projected to grow 11.0% over the next 3-5 years. Management continues to add shareholder value through stock buybacks and dividend payments. During the third quarter, the company repurchased $580 million worth of its stock. For the first nine months, $1.33 billion worth was bought back. UTX forecasted its total repurchase would amount $2.0 billion for the entire year. On Oct 11, the Board of Directors declared a quarterly dividend of 26.5 cents per common share of stock. The company has a current dividend yield of 1.6% and a five-year average dividend yield of 1.5%. UTX 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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(PCLN) - Priceline.com - company is off to fast start with gross bookings growth of 63% in the second quarter of 2006

Priceline.com has exceeded earnings estimates in 10 out of the past 11 quarters. Five of those surprises have exceeded 20%. Additionally, year-over-year growth has been stellar over that time period. Over the past 60 days, this year's estimates have increased a nickel to $1.78 per share, while next year's numbers have jumped 21 cents to $2.26 per share. Full Analysis Priceline.com Incorporated (PCLN) operates as an online travel company in the United States, Europe, and Asia. The company offers its services under the 'Name Your Own Price' system that allows its customers to make offers for travel services at discounted prices. Its service offering includes retail airline tickets, hotel reservations, and car rentals; and vacation packages, destination services, cruises trips, and travel insurance. The company also sells advertising to travel suppliers and others on its Web sites. Priceline.com's continued shift into retail airline tickets, non-air products (hotels, rental cars, and travel packages), and into Europe should enable the company to produce solid long-term earnings growth. Zacks Equity Research Analyst Robert Plaza is forecasting that the company will increase its gross bookings 40% in 2006 and 15% in 2007. The company is off to fast start with gross bookings growth of 63% in the second quarter of 2006. Driving the strong growth is the company's European business, which had organic bookings growth of 117% year-over-year in the second quarter. Europe is one of the largest travel markets in the world, and online purchases make up a small portion of total revenues. This low penetration ratio provides Priceline.com a huge opportunity for growth. PCLN has exceeded earnings estimates in 10 out of the past 11 quarters. Five of those surprises have exceeded 20%. Additionally, year-over-year growth has been stellar over that time period. Over the past 60 days, this year's estimates have increased a nickel to $1.78 per share, while next year's numbers have jumped 21 cents to $2.26 per share. The stock is trading at 17.7x next year's estimates of $2.26 per share, above the long-term growth rate of 15%, giving PCLN a PEG ratio of 1.18. 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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Ian Wyatt, Growth Report newsletter - (BBNK) - (UBET) - (BBC)

Ian Wyatt, editor of the Growth Report newsletter, recently released a portfolio update. Read this featured expert’s commentary on one company’s record quarter. Then learn about a leading Internet-based handicapping service and how it stands to benefit from a new law signed by President Bush. Afterward, check out a leading bio fertilizer company. Portfolio Update from October 20 Bridge Bank Has Record Quarter Bridge Capital Holdings (BBNK) on October 19th released impressive financial results for the quarter ended September 30. Net income for the quarter was a record $2.3 million, or $0.34 per diluted share, an increase of 53% over net income of $1.5 million, or $0.22 per diluted share, in the year ago quarter. For the nine months ended September 30, net income totaled $6.3 million, or $0.92 per diluted share, a 63% increase over $3.8 million, or $0.57 per diluted share, in the first nine months of 2005. A few key metrics for the quarter include: *For the third quarter of 2006, return on average assets was 1.44% versus 1.23% for the same period in 2005. Return on average equity for the period was 19.99%, compared to 16.28% in the year ago period. *On the balance sheet as of September 30, assets totaled $655.7 million, compared to $539.6 million one year ago, representing an increase of 21.5%. Total deposits were $585.8 million, increasing 22% from $481.3 million one year ago. Total loans outstanding stood at $485.6 million, representing an increase of 20% over $404.1 million for the same date last year. Bridge Bank attributes its stellar earnings growth to an increase in net interest income. For the quarter, net interest income was $10.1 million, representing an increase of 36% over $7.4 million in the year ago quarter. The growth in net interest income was a result of “growth in average earning assets” as per the October 19th press release. Youbet.com Likes New Law Youbet.com (UBET), a leading Internet-based handicapping service, announced to its Shareholders in an October 13th press release that a new law signed by President Bush is “good for racing.” Specifically, the new law which addresses Internet gaming exempts Youbet.com and other “deposit wagering companies in the horse racing industry from Internet gaming provisions.” Bodisen Expects Record Revenues and Income in 3rd Quarter Bodisen Biotech (BBC), a leading bio fertilizer company based in China, announced on October 18th that it expects record revenues and net income for the third quarter ended September 30. President Bo Chen commented, "We continue to make progress on all of our strategic initiatives, which include the build out of additional factories in China's northwest agricultural province, and we look forward to discussing our final third quarter results and progress by November 15, 2006.” This article highlights the commentary of Ian Wyatt for the Zacks.com audience. Ian Wyatt provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Growth Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Growth Report" 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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David Fried, Buyback Premium Portfolio - (TK) - (RCII)

David Fried, editor of the Buyback Premium Portfolio, updates investors on the long- and short-term performance of his portfolio. Check out the returns. Then find out what this featured expert has to say about two stocks that he is recommending. Read about Teekay Shipping and Rent-A-Center. Mid-October Update from October 16 Click here to find out more! The Buyback Premium Portfolio declined 4.76% vs. a gain of 2.46% in the S&P 500 last month. As of the close of trading September 29, 2006, this portfolio is up 129.33% since inception (August 2, 2000) vs. a decline of 7.09% in the S&P 500 over the same time frame. The Buyback Premium Portfolio is beating the S&P 500 by more than 136% since its inception (August 2, 2000). New Premium Portfolio Recommendation Teekay Shipping (TK) has its corporate office in Nassau, the Bahamas, operational headquarters in Vancouver, Canada, and it is incorporated in the Marshall Islands. The company’s 5,100 employees in 17 countries operate a fleet of more than 140 tankers carrying crude oil, condensate and petroleum products, and liquefied natural gas. They also perform maritime services for clients in the oil and gas drilling and refining businesses. Teekay Shipping says that it transports more than 10% of the world's seaborne oil. It has ventured into liquefied natural gas shipping through its Teekay LNG Partners unit. Over the past 12 months, Teekay has earned $309.38 million and generated $504.5 million in operating cash flow on total sales of $1.91 billion. The stock trades near $40, which is only eight times expected 2006 earnings per share. The company has a market capitalization of $3 billion. Rent-A-Center (RCII), the largest U.S. furniture rental chain, operates more than 2,880 company-owned rent-to-own stores in 50 states, Washington, D.C., Puerto Rico and Canada. The stores generally offer high quality, durable home furnishings to consumers under flexible rental-purchase agreements that generally allow customers to own the merchandise at the conclusion of an agreed-upon rental period. Their network of stores are called “Get It Now” or “Rent-A-Center,” and virtually anything you might want to buy for your home, they offer for rent -- consumer electronics (high definition televisions, home theater systems, video game consoles, stereos), appliances (refrigerators, washing machines, dryers, microwave ovens, freezers, ranges), computers (personal, laptop), and furniture (dining room, living room, bedroom) and accessories (pictures, lamps, tables). The only things you need to actually buy outright for yourself are food, clothing and sheets! Days ago, Plano, Texas-based RCII announced a $576 million deal to buy Erie, Penna.-based Rent-Way Inc., a rent-to-own chain operator. Shareholders of Rent-Way will vote Nov. 14 on that proposed sale, with the deal expected to be completed in the fourth quarter. If, for some reason, the shareholders reject the plan, Rent-Way owes RCII $21.6 million in termination fees and expenses. The first six months of the year have been financially good for RCII. Total reported revenues for the six months ended June 30, 2006 increased to $1.191 billion, a 0.8% increase from $1.182 billion for the same period in the prior year. Same store revenues for the six month period ending June 30, 2006 increased 1.4%. Reported net earnings for the six months were $80.2 million, or $1.14 per diluted share, an increase of 5.6% for the same period in the prior year. 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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Richard Moroney, Dow Theory Forecasts newsletter - (NKE) - (XOM) - (GE) - (STR) - (WMT) - (WFC)

Richard Moroney, editor of the Dow Theory Forecasts newsletter, says defensive stocks tend to provide decent returns even during volatile or down markets. Read about some of the characteristics these stocks have in common. Afterward, take a look at a few of the names from this featured expert’s portfolio of Recommended Stocks with Defensive Appeal. Commentary In a recent Monday Night Football game, the Chicago Bears beat the Arizona Cardinals, 24-23, scoring 21 points in the final 16 minutes. What made this improbable comeback especially amazing is how the Bears scored — the defense scored 14 of the 21 points. When it comes to investing, a good defense can also score you points on Wall Street, especially during difficult market periods. “Defensive” stocks tend to provide decent returns even during volatile or down markets. They tend to share common characteristics: Most come from industry groups that see steady demand regardless of economic conditions. Stocks in these groups also tend to exhibit less share price volatility, as measured by standard deviation of returns. The chart below shows average standard deviations for stocks in the 10 sectors of the S&P 1500 Index. Sectors with the lowest standard deviations — consumer staples, financials, and utilities — are typically viewed as “defensive.” Such companies as McDonald’s (MCD) and Nike (NKE) are not part of traditionally defensive sectors, but demand for their products remains fairly solid even during periods of economic weakness. Defensive stocks tend to be large-capitalization companies with steady track records and strong finances. During periods of market uncertainty, investors prefer the safety and stability afforded by larger, more established companies. Defensive stocks tend to have a steady history of sales, earnings, and dividend growth. In market environments when capital gains are scarce, dividends are increasingly attractive. Valuation is a key component of defensive stocks. While such stocks may not be bargain priced, neither are they usually excessively valued. While it may seem odd to play defense with your portfolio with the Dow Industrials reaching all-time highs, recession-resistant blue chips have been among the better performers since cyclical and small-company stocks peaked in May. Whether the rotation toward defensive blue chips continues will hinge on the economy; a slow-growth, disinflationary environment tends to favor blue chips, while strong growth and improving pricing power tend to favor cyclicals and small stocks. Regardless of the economy’s course, it makes sense to sprinkle any portfolio with quality defensive stocks for diversification purposes. Furthermore, defensive stocks provide some portfolio insurance should the economy slow more than Wall Street expects. Most important, several high-quality defensive stocks are available at attractive valuations. Two Recommended Stocks with Defensive Appeal: While many energy stocks have been hurt by lower commodity prices, shares of Exxon Mobil (XOM) have held up well. Because of its enormous size and diversity, investors view the company as a safer energy bet that delivers steadier results than its peers. Ventures with state-owned oil companies are promising, and international development projects in West Africa, the Middle East, and Russia should boost production in the years ahead. On Oct. 23, Exxon said it reached a preliminary agreement to sell natural gas from Russia’s Sakhalin Island to China. Deepwater exploration also represents a strong growth opportunity, and the company is expanding its presence in the growing market for liquefied natural gas. Exxon has added enough reserves to offset at least 100% of production every year since 1997 — a trend likely to continue. Capital spending is expected to average about $20 billion per year from 2006 to 2010, up from $17.7 billion last year. Exxon aggressively repurchases its own shares. The company repurchased $12.8 billion in stock in the first half of 2006 and expects to buy back $7 billion in the September quarter. While General Electric (GE) is classified as an industrial conglomerate, its business mix is so diversified that its performance is not especially dependent on the economic cycle. GE makes products ranging from jet engines to consumer appliances to medical equipment, many of which follow different business cycles. The company is one of the world’s largest providers of commercial and consumer financing and owns the NBC television network and Universal Studios. Recent results have benefited from strength in a variety of end markets, a trend management expects to continue into 2007. Operating losses at NBC Universal have weighed on GE’s earnings growth in recent quarters, but the unit expects to return to profitability in the December quarter. In October, NBC Universal announced plans to cut 700 jobs, or 5% of its work force, and cut annual costs by $750 million by the end of 2008. GE plans to invest the savings in fast-growing international and digital operations. Other Recommended Stocks with Defensive Appeal include: Questar (STR) is a diversified energy services holding company. It has two basic divisions--Market Resources and Regulated Services. Market Resources engages in energy development and production; gas gathering and processing; and wholesale gas, electricity and hydrocarbon liquids marketing and trading. Regulated Services conducts interstate gas transmission and storage activities and retail gas distribution services. The Company is also involved in information and communication systems and technologies. Wal-Mart Stores (WMT) is the world's largest retailer. They are engaged in the operation of mass merchandising stores, which serve their customers primarily through the operation of three segments, which are the Wal-Mart Stores segment, the SAM'S Club segment and the International segment. Wells Fargo (WFC) is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. 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 "Dow Theory Forecasts" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Dow Theory Forecasts" 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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