(CRDN) - Ceradyne, Inc - Quarterly revenues leaped 56.1%

Ceradyne, Inc. (CRDN) is up over 36% since last highlighted as a Value pick on Oct 4. On Jan 9, the company announced preliminary record financial results for both the fourth quarter and full year of 2006. Over the past 16 quarters, CRDN surprised to the upside on 15 occasions. Earning per share are projected to grow 15% over the next 3-5 years. The company’s return on equity, a common measure of profitability, absolutely crushes that of the industry average—36% compared to 5%. Its PEG ratio currently sits at 0.77. Full Analysis Ceradyne, Inc. develops, manufactures and markets advanced, technical ceramic products and components for defense, industrial, automotive/diesel, electronic and medical markets. CRDN, which was first presented as a Value pick on Oct 4, has returned over 36%. Most importantly, the company still holds the coveted status of a Zacks #1 Rank stock. When it comes to beating the consensus earnings estimate, CRDN is one of the best in the business. In fact, over the past 16 quarters, the company surprised to the upside on 15 occasions while matching expectations once. Moreover, when CRDN surprises, it usually does so by a rather large margin. In 11 out of the 15 quarters, the company beat the Street’s estimate by a double-digit percentage. On Jan 9, CRDN announced unaudited preliminary results for the fourth quarter and full year of 2006 (final results are expected later this month). Quarterly revenues came in at approximately $178 million, equating to a 56.1% leap from $114 million in the prior-year period. New orders were also up huge—increasing 56.2% to $314 million from $201 million in the fourth quarter of 2005. Both were new records for the company. For the entire year, new highs were also achieved. Revenues ballooned 80.2% to a record of approximately $663 million, while total new orders rose 64.4% to approximately $730 million. Earnings per share for the year are projected to hit the upper end of $4.45 to $4.55. The guidance was supplied by CRDN in a teleconference on Nov 1, 2006. Consensus estimates for 2006 jumped two cents to $4.52 over the past month and reflect upward revisions by four analysts. Profit forecasts for next year are up by an even larger amount—14 cents to $4.82 over the same period of time. Two analysts submitted upward revisions. Earnings per share are projected to grow 15% over the next 3-5 years. CRDN is currently trading at a valuation of 13.7x trailing 12-month earnings and at 11.5x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.7x trailing 12-month earnings and at 16.0x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 4.2, compared to 4.9 for the market. Its PEG ratio currently sits at 0.77. CRDN’s return on equity, a common measure of profitability, absolutely crushes that of the industry average—36% compared to 5%. 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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(COL) - Rockwell Collins, Inc - Analysts raised their earnings estimates for this year and next

Rockwell Collins, Inc. (COL) met or beat analysts’ earnings expectations for 16 straight quarters. After posting solid results for the first quarter of fiscal 2007, the company upped its full-year earnings per share guidance. Analysts responded by raising their profit forecasts. Earnings per share are projected to grow 14.5% over the next 3-5 years. This Zacks #1 Rank stock has a current dividend yield of 0.92%. Full Analysis Rockwell Collins, Inc. is a leader in the design, production and support of communication and aviation electronics for military and commercial customers worldwide. COL has a strong history of either meeting or exceeding analysts’ earnings expectations. Over the past 16 quarters, the company surprised to the upside on 11 occasions while matching estimates in the remaining five quarters. Earnings per share grew 19.9% over the past five years. On Jan 25, COL topped the Street’s first-quarter fiscal 2007 earnings estimate of 73 cents per share by a solid 15.1% when it posted profits of 84 cents per share. Furthermore, the result amounted to a 42.4% year-over-year improvement when compared to earnings of 59 cents per share in the prior-year period. Revenues increased 12.7% to $993 million from $881 million a year earlier. President and CEO Clay Jones stated, “Our first quarter results reflect another great start to a new fiscal year as strong demand for our products, systems and services generated double-digit revenue growth, led by a 21% increase in Commercial Systems sales.” Citing a stronger than planned first-quarter financial performance from its Commercial Systems business, coupled with expectations for continued overall favorable market conditions for the remainder of the fiscal year; COL raised its full-year earnings per share guidance to between $3.25 and $3.35. The company’s previous outlook called for profits between $3.10 and $3.20 per share. Analysts responded to the company’s bullish guidance by raising their earnings estimates for this year and next. The consensus estimate for this year has risen 4.7% to $3.34 over the past 30 days and reflects upward revisions by 10 analysts. Profit forecasts for next year climbed 4.0% to $3.68 over the same period of time. Upward revisions were submitted by 11 analysts. Earnings per share are projected to grow 14.5% over the next 3-5 years. On Jan 29, the Board of Directors announced a quarterly cash dividend of 16 cents per common share of stock. COL has a current dividend yield of 0.92% and a five-year average dividend yield of 1.3%. The dividend is payable on Mar 5 to shareholders of record as of Feb 12. The company’s return on equity of 43% dwarfs the industry average of 15%. 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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(SIRF) - SiRF Technology Holdings, Inc -

SIRF recently reported a strong quarter with excellent guidance and saw its stock shoot up 25%. Over the past 90 days, this year's earnings estimates have risen 12 cents to 70 cents per share. Next year's numbers have jumped an even more impressive 31 cents to 92 cents per share. The company has ample growth opportunities in the automative market which should keep growth strong for the foreseeable future. Full Analysis SiRF Technology Holdings, Inc. (SIRF) is the holding company of SiRF Technology, Inc., which is a fabless original equipment manufacturer (OEM) of global positioning system (GPS) semiconductor chipsets, semiconductor-based modules and associated software. Strategically, SiRF's product line provides GPS capability to high-volume consumer and commercial systems. SiRF's products provide GPS location awareness technology to other OEMs that embed the capability into the four targeted platforms: wireless handheld devices, mobile computing devices, other mobile consumer applications and automotive electronic systems. SiRF's ICs are found in wireless handsets, personal digital assistants (PDAs), notebook personal computers (PCs), digital cameras, watches, automotive navigation and automotive telematics systems, and automated toll roads. The communications market appears to hold the most significant near-term growth potential. The company already supplies GPS chips and IP to both Nextel (for its Integrated Digital Enhanced Network phones) and Motorola (for its 3G handsets). It was announced that eight different manufacturers have designed-in the next-generation SiRFStar III product within wireless handsets set to ramp-up production in the second half of 2005. In the consumer market, there are multiple near-term growth prospects. Currently, the SiRFStar II is contained within Research in Motion's BlackBerry 7520, which is used in conjunction with an integrated Nextel service. A European manufacturer has also designed-in the chipset into a PDA. SIRF recently reported a strong quarter with excellent guidance and saw its stock shoot up 25%. Over the past 90 days, this year's earnings estimates have risen 12 cents to 70 cents per share. Next year's numbers have jumped an even more impressive 31 cents to 92 cents per share. The company has ample growth opportunities in the automative market which should keep growth strong for the foreseeable future. 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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(AGII) - Argonaut Group, Inc - exceeded analysts’ earnings expectations for five straight quarters by an average margin of 16.3%

Argonaut Group, Inc. (AGII), a Zacks #1 Rank stock, topped analysts’ earnings expectations for five straight quarters by an average margin of 16.3%. The company recently reported impressive results for the fourth quarter and full year of 2006. Analysts have been upping their earnings estimates for both this quarter and the full year. AGII has a price-to-book ratio of 1.4 and its PEG ratio currently resides at 0.71. Full Analysis Argonaut Group, Inc. is a national underwriter of specialty insurance products in niche areas of the property and casualty market. Through its insurance subsidiaries, AGII offers a full line of products and services designed to meet the unique coverage and claims handling needs of businesses in three primary segments: Excess and Surplus Lines, Select Markets and Public Entity. AGII exceeded analysts’ earnings expectations for five straight quarters by an average margin of 16.3%. The company produced double-digit earnings surprises in four of the five quarters. Moreover, AGII met or topped the Street’s estimate for the past nine quarters (the company surprised to the upside on eight occasions). On Feb 5, AGII reported fourth-quarter profits of 76 cents per share, compared to 72 cents per share in the prior-year period. In addition to the 5.6% year-over-year improvement, the company managed to surprise to the upside by 10.1% with analysts expecting 69 cents per share. Total revenues experienced a 14.5% increase to $243.1 million, when compared to revenues of $212.4 million in the fourth quarter of 2005. Gross premiums written jumped 14.2% to a record $320.1 million, while net premiums written rose 19.9% to $242.4 million. For the entire year, profits increased 31.7% to $106.0 million and total revenues increased 19.4% to $938.7 million. Both figures were all-time highs for the company. Gross premiums written also set a new high, advancing nearly $100 million to $1.2 billion. Net premiums written rose 10.1% to $847.0 million. The company’s combined ratio, a measure of profitability for insurance companies, for the fourth quarter improved to 92.3% from 96.7%. The ratio for 2006 was 93.8% versus 98.7% in 2005. A ratio less than 100% indicates that the company is turning an underwriting profit, while a ratio greater than 100% indicates one that is paying out more money in claims versus receiving via premiums. Since the release of AGII’s fourth-quarter and full-year results, analysts have been upping their earnings estimates for both this quarter and the full year. The consensus estimate for this quarter currently resides at 66 cents. This represents a 6.5% jump when compared to the consensus of seven days prior. Profit forecasts for the full year have risen 2.4% to $3.05 over the same period of time. Earnings per share are projected to grow 17% over the next 3-5 years, while the industry is expected to grow at an 11% clip. AGII is currently trading at a valuation of 11.7x current fiscal-year estimated earnings and at 10.8x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x current fiscal-year estimated earnings and at 14.6x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.4, compared to 4.9 for the market. Its PEG ratio currently resides at 0.71. 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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(CHRW) - C.H. Robinson Worldwide, Inc - Consensus estimates have inched up over the past seven days

C.H. Robinson Worldwide, Inc. (CHRW) beat analysts’ earnings expectations for the past six quarters by an average margin of 7.3%. Consensus earnings estimates have inched up over the past seven days. On Nov 16, the Board of Directors declared a 38.5% boost in its regular quarterly cash dividend to 18 cents per share from 13 cents. CHRW has a current dividend yield of 1.4% and a five-year average dividend yield of 1.0%. Full Analysis C.H. Robinson Worldwide, Inc. is one of North America's largest third party logistics (3PL) companies, with operations in the United States, Canada, Mexico, South America, Europe and Asia. The company is a global provider of multimodal (truck, air, ocean and rail) transportation services and also provides fresh produce sourcing services, including the buying, selling and brokering of fresh produce to produce wholesalers, large grocery retailers, restaurants and foodservice distributors. CHRW beat analysts’ earnings expectations for the past six quarters by an average margin of 7.3%. On Jan 30, the company reported fourth-quarter profits of 41 cents per share. The result represented a 5.1% positive earnings surprise when compared to the consensus estimate of 39 cents. Earnings in the prior-year period came in at 33 cents, thus, the year-over-year improvement was 24.2%. Total revenues increased to $1.64 billion from $1.58 billion in the fourth quarter of last year. For the entire year, profits rose to $266.9 million from $203.4 million last year. Total revenues climbed to $6.56 billion, compared to $5.69 billion in 2005. CHRW increased revenues and grew profits for nine straight years. Consensus estimates have inched up over the past seven days. Profit forecasts for this year currently sit at $1.75, versus $1.71 a week earlier and represent upward revisions by eight analysts. Estimates for next year are up three cents to $2.02 over the same period of time. Two analysts submitted upward revisions. Earnings per share are projected to grow 16.5% over the next 3-5 years. On Nov 16, the Board of Directors declared a 38.5% boost in its regular quarterly cash dividend to 18 cents per share from 13 cents. CHRW has distributed regular dividends for more than 25 years. The company has a current dividend yield of 1.4% and a five-year average dividend yield of 1.0%. On Dec 1, CHRW announced that it acquired certain assets of Triune Freight Private Ltd. and Triune Logistics Private Ltd., a third-party logistics provider in India. Triune has annual gross revenues of approximately $11 million. Vice President Jeff Scovill stated, “Further expansion of our international freight forwarding network is one of our core growth strategies, and Triune is an excellent introduction for us into one of the world's fastest-growing economies.” CHRW’s return on equity, a common measure of profitability, dwarfs that of the industry average—30% compared to 12%. CHRW 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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(MYL) - Mylan Laboratories, Inc - earned 44 cents per share, compared with adjusted earnings of 25 cents per share in the year-earlier period

Mylan just reported a strong quarter and guided higher. The company has exceeded earnings estimates in five straight quarters, with year-over-year growth averaging over 50% over that time frame. Four analysts have raised their forecasts for this year. Over the past week, 2007 estimates have increased eight cents to $1.48 per share. Full Analysis Mylan Laboratories, Inc., (MYL) through its subsidiaries, engages in the development, manufacture, marketing, licensing, and distribution of generic, brand, and branded generic pharmaceutical products in the United States. The company's products are used for diseases ranging from angina to arthritis, depression to diabetes, pain to parkinson's disease, and schizophrenia to sleep disorders, such as central nervous system, cardiovascular, dermatology, and gastrointestinal areas. Mylan Laboratories markets its generic products directly to wholesalers, distributors, retail pharmacy chains, mail order pharmacies, and group purchasing organizations. MYL just announced that it received Food and Drug Administration approval for its generic version of Pfizer Inc's antidepressant Zoloft. Pfizer recently lost patent protection on the drug. Zoloft sales fell 79 percent for Pfizer during its fourth-quarter to $166 million from $808 million a year prior. Mylan said its generic, Sertraline Hydrochloride Tablets, at doses of 25mg, 50mg and 100mg, will be shipped immediately. The company reported strong fiscal third-quarter earnings that easily beat consensus estimates. Excluding one-time gains and stock options costs, the company said it earned 44 cents per share, compared with adjusted earnings of 25 cents per share in the year-earlier period. Analysts only expected 36 cents per share. Revenue grew 29% to $401.8 million from $311.2 million last year. Meanwhile, operating expenses fell by nearly half to $40.9 million from $77.8 million. Mylan also raised the bottom end of its earnings guidance for 2007, saying it now expects earnings per share in the range of $1.50 to $1.55, from the previous range of $1.35 to $1.55. Robert J. Coury, Mylan's Vice Chairman and Chief Executive Officer, commented: "We are extremely pleased to have been able to deliver the most successful quarter and nine month period, financially, in our Company's history." The company has exceeded earnings estimates in five straight quarters, with year-over-year growth averaging over 50% over that time frame. Four analysts have raised their forecasts for this year. Over the past week, 2007 estimates have increased eight cents to $1.48 per share. 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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(HLTH) - Emdeon Corp - business, technology, and information solutions that support healthcare delivery - PEG ratio of 0.83

HLTH has exceeded earnings estimates in three out of the past four quarters. Earnings estimates for 2007 have been on the upswing over the past week, jumping five cents to 80 cents per share. The stock is reasonably priced at 17.8x 2007 estimates, below the projected long-term growth rate of 21.33%, giving the stock a PEG ratio of 0.83. Full Analysis Emdeon Corporation (HLTH) provides business, technology, and information solutions that support the financial and clinical aspects of healthcare delivery in the United States and internationally. It has four segments: Emdeon Business Services, Emdeon Practice Services, WebMD, and Porex. The company reports fourth-quarter results on February 22, but HLTH already raised guidance in early January. Emdeon said results are expected to be above the high end of its previously announced range of financial guidance primarily due to higher than anticipated revenue from online advertising in the latter part of the fourth quarter. Revenue for the fourth quarter is expected to be approximately $79.0 to $80.0 million which is above the range of $73.5 to $76.5 million previously provided. WebMD also announced that preliminary traffic data for the December quarter was approximately 35 million unique monthly users and 800 million page views, representing strong growth over the prior year period of approximately 35% in both unique monthly users and page views. Wayne Gattinella, President and Chief Executive Officer of WebMD, said: "Our traffic trends in December were higher than we have typically seen in the past for that month. Our fourth quarter operating results coupled with strong fourth quarter sales in our online business are powerful signs that WebMD is gaining increased momentum with both our users and sponsors." Further evidence that the company is performing well came in the form of a $100 million share buyback announcement. Under the new program, Emdeon may, beginning on December 19, 2006, use up to $100 million to purchase shares of its common stock from time to time in the open market, through block trades or in private transactions, depending on market conditions and other factors. HLTH has exceeded earnings estimates in three out of the past four quarters. Earnings estimates for 2007 have been on the upswing over the past week, jumping five cents to 80 cents per share. The stock is reasonably priced at 17.8x 2007 estimates, below the projected long-term growth rate of 21.33%, giving the stock a PEG ratio of 0.83. 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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(OMM) - OMI Corp - seaborne transportation for crude oil and petroleum products - trades at a highly discounted valuation

OMI Corporation (OMM), which was first featured as a Value pick on Jul 19, is still trading at a discounted valuation. Moreover, it continues to exceed analysts’ earnings expectations, having done so in eight out of the past nine quarters. On Nov 16, the Board of Directors raised the company’s regular quarterly cash dividend to 14 cents per share and announced a stock repurchase increase. OMM has a price-to-book ratio of 1.7 and its PEG ratio currently resides at 0.71. Full Analysis OMI Corporation provides seaborne transportation services for crude oil and petroleum products in the international shipping markets. The company’s customers include major independent and state-owned oil companies, major oil traders, government entities and various other entities. OMM, which was first highlighted as a Value stock on Jul 19, has held on to its Zacks #1 Rank status. The company’s solid history of exceeding analysts’ earnings expectations has remained intact. Moreover, the stock continues to trade at a highly discounted valuation. OMM beat the Street’s earnings estimate in eight out of the past nine quarters by an average margin of 8.4%. Furthermore, the company met or topped the consensus earnings estimate in 15 out of the past 16 quarters. On Oct 24, OMM reported third-quarter earnings per share of 74 cents, surpassing the Street’s estimate of 70 cents by 5.7%. Compared to earnings of 46 cents in the prior-year period, the result marked an impressive 60.9% year-over-year improvement. Revenues jumped 26.5% to $181.2 million from $143.2 million last year. For the first nine months of the year, profits experienced a 50.8% leap to $245.1 million from $162.5 million for the first nine months of 2005. Revenues rose 20.4% to $557.6 million compared to $463.1 million for the prior-year period. OMM increased revenues and grew profits for the past three years. Consensus estimates for this quarter are up two cents to 56 cents per share over the past 30 days. Two analysts upped their profit forecasts. Earnings per share are projected to grow 14% over the next 3-5 years. The industry is expected to grow at a 10% clip. On Nov 16, the Board of Directors raised the company’s regular quarterly cash dividend to 14 cents per share, representing the third dividend increase in 2006. OMM has a current dividend yield of 2.6%. The Board also authorized an additional $140 million to its share repurchase program, bringing the total amount to buy back to approximately $169 million. OMM bought back approximately nine million shares during 2006. OMM is currently trading at a valuation of 10.0x current fiscal-year estimated earnings and at 9.5x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x current fiscal-year estimated earnings and at 14.6x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.7, compared to 4.9 for the market. Its PEG ratio is 0.71. OMM’s return on equity nearly doubles that of the industry average—27% compared to 14%. 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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(HOT) - Starwood Hotels & Resorts Worldwide, Inc - beat estimates in 12 of 15 quarters by double-digit percentage

Starwood Hotels & Resorts Worldwide, Inc. (HOT) beat the Street’s earnings estimate in 15 consecutive quarters. HOT increased revenues and grew profits for the past three years. Consensus estimates have risen over the past week due to the company’s bullish guidance for 2007. This Zacks #1 Rank stock is currently yielding 2.5% and has a five-year average dividend yield of 1.8%. Full Analysis Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 870 properties in more than 100 countries. HOT also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. HOT’s history of topping analysts’ earnings expectations is extremely impressive, having done so for 15 straight quarters. In 12 out of the 15 quarters the company surprised by a double-digit percentage. On Feb 1, HOT posted fourth-quarter profits of 92 cents per share. The result topped the consensus earnings estimate of 73 cents by 26.0% and earnings of 71 cents in the prior-year period by 29.6%. Revenues increased 3.3% to $1.57 billion from $1.52 billion in the fourth quarter of 2005. For the entire year, profits more than doubled to $1.04 billion from $422 million in 2005. Revenues were basically flat at $5.98 billion. HOT increased revenues and grew profits for the past three years. CEO Steven J. Heyer stated, “I am extremely proud of what Starwood accomplished this year and am even more excited about our positioning for 2007. We emerged from 2006 with the right asset mix, a clear strategy, focus, process and discipline. By any measure, it is clear our new model has been paying off. Today, Starwood is a higher-growth, more capital-efficient, cash-rich and less-cyclical business.” HOT projects 2007 earnings per share of $2.50 and revpar (revenue per available room) growth between 8% and 10% worldwide. Consensus estimates for this quarter and next grew by two cents to 38 cents and 66 cents, respectively, over the past seven days. Profit forecasts for this year have risen by four cents to $2.50, while estimates for next year are up nine cents to $3.00 over the same period of time. Earnings per share are projected to grow 13.7% over the next 3-5 years. Management has returned value to shareholders in the form of stock buybacks and dividend payments. During the fourth quarter of 2006, HOT repurchased approximately 600,000 shares at a total cost of approximately $34.2 million. As of Dec 31, 2006, the company was still authorized to buy back $380 million worth of its stock. HOT is currently yielding 2.5% and has a five-year average dividend yield of 1.8%. The company’s return on equity of 17% tops the industry average of 15%. 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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(ATG) - AGL Resources, Inc - topped the Street’s estimate in 13 out of the past 16 quarters by an average margin of 16.2%

AGL Resources, Inc. (ATG), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in 13 out of the past 16 quarters by an average margin of 16.2%. Analysts have been upping their earnings estimates for both this year and next. On Feb 1, the Board of Directors authorized an 11% boost in the company’s annual dividend to $1.64 per share. The company has a price-to-book ratio of 2.0. Full Analysis AGL Resources, Inc. is an energy services holding company whose principal business is the distribution of natural gas in six states: Florida, Georgia, Maryland, New Jersey, Tennessee and Virginia. The company operates in four segments: Distribution Operations, Retail Energy Operations, Wholesale Services and Energy Investments. ATG topped the Street’s estimate in 13 out of the past 16 quarters by an average margin of 16.2%. In six out of the 13 aforementioned quarters, ATG surprised by a double-digit percentage. On Feb 1, ATG posted fourth-quarter profits of 60 cents per share. The result beat the consensus estimate of 57 cents by 5.3%. Due to warmer weather in New Jersey, Virginia and Florida, gas distribution was a drag on quarterly revenues. Consequently, revenues declined 28.8% to $707 million from $993 million a year ago. For the entire year, profits came in at $212 million, versus $193 million earned in 2005. Revenues were down slightly to $2.6 billion, compared to $2.7 billion last year. Looking ahead, President and CEO John W. Somerhalder II stated, “We continue to focus on the things we do well—improving our operating efficiency, reducing operating costs and capturing value from market volatility. As a result, we are well positioned to continue our track record of earnings growth in 2007.” Analysts have been upping their earnings estimates since ATG released its fourth-quarter and full-year results. The consensus estimate for this year has risen 6.0% to $2.84 over the past week. Profit forecasts for next year experienced a 4.0% leap to $2.86 over the same period of time. On Feb 1, the Board of Directors authorized an 11% boost in the company’s annual dividend to $1.64 per share from the previous annual rate of $1.48 per share. ATG has a very respectable current dividend yield of 3.6% and a five-year average dividend yield of 4.1%. ATG is currently trading at a valuation of 14.5x current fiscal-year estimated earnings and at 14.4x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x current fiscal-year estimated earnings and at 14.6x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.0, compared to 4.9 for the market. ATG’s return on equity of 13% 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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(BEN) - Franklin Resources, Inc - met or topped the consensus for 15 quarters with 13 earnings suprises

Franklin Resources, Inc. (BEN), which was first highlighted as a Growth and Income pick on Nov 14, is still a Zacks #1 Rank stock. Moreover, the stock is up over 12% since its debut. The company beat the Street’s earnings estimate for the past nine quarters by an average margin of 10.2%. Analysts continue to raise their profit forecasts. BEN has instituted an annual dividend increase every year since 1981. The company is currently yielding 0.50%. Full Analysis Franklin Resources, Inc. operates as a global investment management organization. The company offers investment solutions under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust and Darby Overseas names. BEN manages investment vehicles for individuals, institutions, pension plans, trusts, partnerships and other clients. The company has offices in 29 countries and offers investment solutions and services in more than 100. Since BEN made its debut as a Growth and Income pick on Nov 14, the stock has gained over 12%. Much to investors’ delight the company is still a Zacks #1 Rank stock, thanks in no small part to its strong history of exceeding analysts’ earnings expectations coupled with earnings estimates trending higher. One would have to go all the way back to the second quarter of fiscal 2003 to uncover a quarter in which BEN produced a negative earnings surprise (it missed by only a penny). The company beat the Street’s earnings estimate for the past nine quarters by an average margin of 10.2%. In five of the nine quarters, the company surprised by a double-digit percentage. Moreover, BEN met or topped the consensus estimate for 15 consecutive quarters, producing 13 positive surprises during this period of time. On Jan 25, BEN reported first-quarter fiscal 2007 profits of $426.8 million, or $1.67 per share, compared with profits of $318.0 million, or $1.21 per share in the prior-year period. The result amounted to a 10.6% positive earnings surprise with analysts expecting $1.51 per share. Operating income jumped 25.6% to $508.1 million from $404.6 million in the first quarter of fiscal 2006. At the end of the quarter, assets under management rose 19.0% and totaled $552.9 billion, versus $464.8 billion last year. BEN increased revenues for the past seven years and grew profits for the past four. Earnings per share are projected to grow 16% over the next 3-5 years. The industry is expected to grow at a 14% clip. Consensus estimates for this quarter are up six cents to $1.59 over the past 30 days, while estimates for next quarter jumped five cents to $1.65. Seven analysts submitted upward revisions for this quarter and six did so for next quarter. Profit forecasts for this year have risen 33 cents to $6.55 (11 analysts boosted their estimates) and are up 44 cents to $7.37 (seven analysts upped their forecasts) for next year over the past month. On Dec 13, the Board of Directors declared a quarterly cash dividend of 15 cents per share. The payment represents a 25% increase over the dividends paid for the prior quarter and for the same quarter last year. BEN has instituted an annual dividend increase every year since 1981. The company is currently yielding 0.50%. 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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(WEBX) - WebEx Communications, Inc - Earnings estimates have been trending higher over the past week

Earnings estimates have been trending higher over the past week. This year's numbers have jumped 10 cents to $1.32 per share. Next year's estimates have risen 12 cents to $1.63 per share. WEBX has exceeded earnings forecasts in four out of the past five quarters, with two of those periods registering double-digit surprises. Full Analysis WebEx Communications, Inc. (WEBX) engages in the development and marketing of Web collaboration services that enable end-users to conduct meetings and share software applications, documents, presentations, and other content on the Internet using a standard Web browser. The company also provides integrated telephony and Web-based audio and video services using standard devices, such as telephones, computer Web-cameras, and microphones. It also provides asset management, software distribution, patch management, virus protection, and backup management services. WEBX said its fourth-quarter profit rose 22.8% on a jump its core web collaboration business. The company earned $16.7 million, or 33 cents per share, compared with profit of $13.6 million, or 28 cents per share, during the same period a year before. Revenue jumped 22% to $101.9 million from $83.7 million. Analysts expected 27 cents per share. For the full year, the company earned $48.6 million, or 97 cents per share, compared with profit of $53 million, or $1.11 per share, in 2005. Revenue rose to $380 million from $308.4 million. Excluding the acquisition costs, the company said it earned $1.43 per share in 2006. Analysts expected full-year profit of $1.39 per share on revenue of $379.5 million. "I am very pleased with our first ever $100 million quarter. We finished 2006 with strong performance in our core web collaboration business highlighted by excellent bookings and record cash flow", said Subrah Iyar, chairman and chief executive officer of WebEx. "We enter 2007 well-positioned to go deep with our web collaboration suite and wide with new offerings through our WebEx Connect platform." Earnings estimates have been trending higher over the past week. This year's numbers have jumped 10 cents to $1.32 per share. Next year's estimates have risen 12 cents to $1.63 per share. WEBX has exceeded earnings forecasts in four out of the past five quarters, with two of those periods registering double-digit surprises. 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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