Email:
First Name:
Last Name:
Street Address:
Zip Code:
Birthdate:

MM-DD-YYYY
Gender:

Subscribe to the VitalStocks Blog Feed

Subscribe in NewsGator Online

Subscribe in Rojo

Add VitalStocks Investing Newsletter Digest to 

Newsburst from CNET News.com

Add to Google

Subscribe in Bloglines

Friday, February 23, 2007

SPIL - Siliconware Precision Industries Co., Ltd - provider of semiconductor packaging and testing services - PEG ratio is only 0.61

Siliconware Precision Industries Co., Ltd. ADR (SPIL) has returned 51% since first highlighted as a Value pick on Oct 11. The company topped analysts’ earnings expectations for the past seven quarters. SPIL has a price-to-book ratio of 2.5 and its PEG ratio currently sits at 0.61. The company’s return on equity more than doubles that of the industry average, and it is currently yielding 2.7%.

Full Analysis

Siliconware Precision Industries Co., Ltd. ADR is a provider of semiconductor packaging and testing services. The company’s target market consists of those in the personal computer, communications, consumer integrated circuits (IC's) and non-commodity memory semiconductor markets.

When SPIL was first presented as a Value pick on Oct 11, we noted that the company had exceeded analysts’ earnings expectations in five consecutive quarters. SPIL’s solid track record now sits at seven in a row, including five double-digit surprises. Best of all, this Zacks #1 Rank stock is up nearly 50% since its debut.

On Jan 31, SPIL reported fourth-quarter 2006 profits of 22 cents per share, which beat the Street’s estimate by a solid 22.2%. Compared to the prior-year period, earnings were up 4.8%. Revenues came in at NT$ 14,666 million, up 0.4% sequentially and 1.0% year over year.

For the entire year, SPIL reported revenues of NT$ 56,354 million, up 30.8% compared to 2005. Profits ballooned to NT$ 13,329 million, compared with NT$ 8,244 million achieved in the prior-year period. SPIL increased revenues, expanded gross margins and grew profits for the past four years.

While the consensus estimate for this quarter is flat at 15 cents over the past 30 days, it jumped three cents to 20 cents for next quarter. One of the two covering analysts upped his estimate. Profit forecasts for this year currently reside at 77 cents and mark a four-cent improvement over the past month. Upward revisions were submitted by all three covering analysts. Earnings per share are forecasted to grow 20% over the next 3-5 years. The industry is expected to grow at an 18% clip.

SPIL continues to trade at a discounted valuation. The company is currently trading at a valuation of 12.1x current fiscal-year estimated earnings and at 11.0x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.1x current fiscal-year estimated earnings and at 14.7x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.5, compared to 4.9 for the market. Its PEG ratio is 0.61.

SPIL’s return on equity more than doubles that of the industry average—21% compared to 10%. The company has a current dividend yield of 2.7%.

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

Labels:

Click for full article

DE - Deere & Company - beat the Street’s earnings estimate by 26.8%

Deere & Company (DE) exceeded analysts’ earnings expectations for six consecutive quarters by an average margin of 15.3%. DE increased revenues for the past seven years and expanded gross margins and grew profits for five years running. On Nov 29, the Board of Directors at DE announced a 12.8% increase in the company’s quarterly cash dividend to 44 cents per share from 39 cents. This Zacks #1 Rank stock has a current dividend yield of 1.5% and a five-year average dividend yield of 1.8%.

Full Analysis

Deere & Company manufactures and distributes agricultural and commercial equipment worldwide. The company has four manufacturing divisions: Agricultural Equipment, Commercial and Consumer Equipment, Construction and Forestry Equipment, and Power Systems. DE is also one of the largest equipment finance companies in the United States.

DE exceeded analysts’ earnings expectations for six consecutive quarters by an average margin of 15.3%. Moreover, the company beat the consensus estimate in 14 out of the past 16 quarters. DE managed to surprise by a double-digit percentage in 10 out of the 14 quarters.

On Feb 14, DE posted first-quarter fiscal 2007 profits of $238.7 million, or $1.04 per share, which beat the Street’s estimate by 26.8%. When compared to the prior-year period, the company’s earnings were up a solid 10.6%. Revenues increased 4.8% to $4.4 billion from $4.2 billion in the first quarter of fiscal 2006. DE increased revenues for the past seven years and expanded gross margins and grew profits for five years running.

Chairman and CEO Robert W. Lane stated, “Exciting new equipment and services are helping John Deere attract customers and expand our market presence throughout the world. In addition, our focus on rigorous asset management is allowing Deere to serve a growing global customer base while maintaining lean, efficient inventory levels.”

The consensus earnings estimate for this quarter increased 5.3% to $2.37 per share over the past 30 days, and reflect upward revisions by six analysts. Profit forecasts for this year have risen 4.1% to $6.56 per share over the same period of time. Revised estimates were submitted by 11 analysts. Earnings per share are projected to grow 10.1% over the next 3-5 years.

On Nov 29, the Board of Directors at DE announced a 12.8% increase in the company’s quarterly cash dividend to 44 cents per share from 39 cents. Since early 2004, the company has boosted the quarterly dividend rate on four occasions, by a combined total of 100%. DE has a current dividend yield of 1.5% and a five-year average dividend yield of 1.8%.

On Feb 19, DE stated that it will purchase LESCO, Inc., a Cleveland-based supplier of fertilizer, seed and chemicals for lawn and golf course maintenance, for $135 million. “We seek business opportunities that bring new customers to John Deere and that offer new products and services to our existing customers,” said Nate Jones, president of Deere's commercial and consumer division.

DE’s return on equity nearly triples that of the industry average—20% compared to 7%.

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

Labels:

Click for full article

VSEA - Varian Semiconductor - a whopping 200% year-over-year earnings improvement

Varian Semiconductor Equipment Associates, Inc. (VSEA), which was last presented as an Aggressive Growth pick on Nov 28, is up over 21%. The company has exceeded analysts’ earnings estimates in each of the past eight quarters. VSEA recently announced solid first-quarter fiscal 2007 results. Over the past month, this year's estimates have increased 12.6%, representing upward revisions by nine analysts. The stock is cheap given the company's growth prospects. VSEA is trading at 18.6x this year's estimates, below the projected long-term growth rate of 23.3%, giving the stock a PEG ratio of 0.80.

Full Analysis

Varian Semiconductor Equipment Associates, Inc. engages in the design, manufacture, marketing and servicing of semiconductor processing equipment used in the fabrication of integrated circuits.

Since we last featured VSEA as an Aggressive Growth stock on Nov 28, the company is up over 22%. Furthermore, the stock is still a Zacks #1 Rank, thanks to continually exceeding analysts’ earnings expectations, coupled with consensus estimates trending higher.

On Jan 25, VSEA reported first-quarter fiscal 2007 profits 66 cents per share, compared to profits of 22 cents per share for the prior-year period. The result amounted to a whopping 200% year-over-year improvement and an 11.9% positive earnings surprise. VSEA has now exceeded analysts’ earnings expectations for eight consecutive quarters by an average margin of 7.0%. Revenues soared 40.2% to $225.6 million from $160.9 million in the first quarter of fiscal 2006.

CEO Gary Dickerson stated, “The first quarter of fiscal 2007 exceeded our financial guidance. The first quarter of fiscal 2007 was even more compelling from a competitive perspective. Given our strength in the foundry, logic and memory segments, we expect to continue to gain more market share in 2007.”

The consensus estimate for this quarter currently sits at 66 cents. This represents an 11.9% jump over the past month. Upward revisions were submitted by 10 of the 12 covering analysts. Profit forecasts for the full year have risen 12.6% to $2.60 over the same period of time. Nine of the 12 covering analysts upped their estimates.

On Dec 8, the Board of Directors announced that it has amended the company’s existing stock repurchase program by increasing the amount of funds that may be expended in repurchasing VSEA's common stock from $200 million to $300 million.

The stock is cheap given the company's growth prospects. VSEA is trading at 18.6x this year's estimates, below the projected long-term growth rate of 23.3%, giving the stock a PEG ratio of 0.80. The company’s return on equity tops that of the industry average—15% compared to 10%.

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

Labels:

Click for full article

Thursday, February 22, 2007

OHI - Omega Healthcare Investors, Inc - invests in income producing healthcare facilities - net income soared 80.3%

Omega Healthcare Investors, Inc. (OHI) recently reported solid results for the fourth quarter and full year of 2006. The consensus estimate for this year has risen over the past 30 days. The Board of Directors recently boosted its quarterly cash dividend by a penny to 26 cents per common share of stock. This Zacks #1 Rank stock has a price-to-book ratio of 3.3, compared to 4.9 for the market.

Full Analysis

Omega Healthcare Investors, Inc. operates as a real estate investment trust (REIT) in the United States. The company invests in income producing healthcare facilities, principally long-term care facilities, as well as provides lease or mortgage financing to operators of skilled nursing facilities; and to assisted living, rehabilitation and acute care facilities.

On Feb 6, OHI reported fourth-quarter profits of 32 cents per share, compared with 11 cents per share during the same period a year earlier. The Street was expecting 29 cents per share. Total operating revenues jumped 27.5% to $36.2 million versus $28.4 million in the fourth quarter of last year. Rental revenues soared 35.0% to $34.3 million from $25.4 million.

For the full year, OHI's net income soared 80.3% to $45.8 million, compared with $25.4 million in 2005. Total revenues rose 23.8% to $135.7 million from $109.6 million.

In mid December, OHI increased its full-year 2007 earnings per share guidance to between $1.32 and $1.36, compared to its previous outlook which called for profits between $1.21 and $1.26 per share. The company affirmed its 2007 profit forecast in early February. The consensus estimate for this year currently resides at $1.35 and represents a 10.7% jump over the past 30 days.

The Board of Directors recently boosted its quarterly cash dividend by a penny to 26 cents per common share of stock. The company has a current dividend yield of 5.5% and a five-year average dividend yield of 4.1%.

OHI is currently trading at a valuation of 14.1x current fiscal-year estimated earnings and at 13.5x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.1x current fiscal-year estimated earnings and at 14.7x next fiscal-year estimated earnings. The company has a price-to-book ratio of 3.3, compared to 4.9 for the market.

Content Courtesy: Zacks Investment Research

#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

| Blog Home| VitalStocks Home

Labels:

Click for full article

UNP - Union Pacific Corp - UNP’s history of beating the Street’s earnings estimate is quite solid

Union Pacific Corporation (UNP) exceeded analysts’ earnings expectations for the past 10 quarters. Financial results for the fourth quarter and full year of 2006 were solid. Analysts have upped their profit forecasts for both this year and next. The Board of Directors recently authorized a share repurchase program and raised its quarterly dividend by 17% to 35 cents per share. UNP is currently yielding 1.2%.

Full Analysis

Union Pacific Corporation operates primarily as a rail transportation provider through Union Pacific Railroad Company, the largest railroad in North America. The railroad has one of the most diversified commodity mixes in the industry, including chemicals, coal, food and food products, forest products, grain and grain products, intermodal, metals and minerals, and automobiles and parts. UNP also runs a substantial commuter train operation in Chicago.

UNP’s history of beating the Street’s earnings estimate is quite solid, having done so for 10 consecutive quarters. Moreover, the company surprised to the upside in 13 out of the past 16 quarters.

On Jan 25, UNP reported fourth-quarter profits of $485 million, or $1.78 per share, compared to $296 million, or $1.10 per share in the prior-year period. The result amounted to a 13.4% positive surprise with analysts calling for $1.57 per share. Operating revenues jumped 9.4% to $3.96 billion from $3.62 billion in the fourth quarter of 2005.

For the entire year, profits experienced a 56.3% leap to $1.61 billion, compared to $1.03 billion in 2005. Operating revenues were up 14.7% to $15.6 billion from $13.6 billion last year.

President and CEO Jim Young stated, “2006 was a great year for Union Pacific. Our network management initiatives and capacity expansion programs helped us move record volumes for our customers. In 2006, we significantly improved our return on invested capital and laid the foundation for further operational and financial improvement, benefiting both our customers and our shareholders.”

The consensus estimate for this year calls for profits of $6.82 per share. The estimate rose 10 cents over the past 30 days, with seven analysts submitting upward revisions. Profit forecasts for next year experienced a 26-cent jump to $7.83 over the same period of time. Two analysts upped their estimates for 2008. Earnings per share are projected to grow 16% over the next 3-5 years, slightly above the 15% expected growth rate for the industry.

The Board of Directors recently announced the repurchase of up to 20 million common shares by year-end 2009. Also, the Board boosted its quarterly dividend by 17% to 35 cents per share. UNP has distributed dividends on its common stock for 108 straight years. The company is currently yielding 1.2% and has a five-year average dividend yield of 1.6%.

UNP 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

Labels:

Click for full article

WCG - Wellcare Health Plans, Inc - Shares set a new all-time high after the company reported profit growth

As a result of the company's strong quarter, earnings estimates have been on the upswing. Over the past week, this year's estimates have jumped 21 cents to $4.11 per share. WCG has beaten analyst expectations for 10 straight quarters, with seven of them posting double-digit surprises. Four analysts have raised their forecasts for the current year.

Full Analysis

Wellcare Health Plans, Inc. (WCG) provides managed care services to government-sponsored healthcare programs in Florida, New York, Illinois, Indiana, Connecticut, Louisiana, and Georgia. Its functions include claims processing and medical management.

The company offers an array of products, including Medicaid, Medicare, and supplemental security income Medicaid programs, and the State Children's Health Insurance programs. It also provides prescription drug plans.

Shares set a new all-time high after the company reported profit growth in the fourth quarter and lifted its outlook for the first quarter and 2007. Wellcare on said its earnings per share grew to $1.38 from 27 cents, as its membership more than doubled. Analysts had expected income of $1.33 per share. Wellcare also boosted its first-quarter and 2007 income outlook above analyst estimates.

"2006 was a transformative year for WellCare," said Todd S. Farha, Chairman and Chief Executive Officer. "We added over 1.4 million members and doubled our revenue without losing focus on delivering high service levels to our providers and members. We look forward to building on our strong 2006 results in 2007 and in future years."

As a result of the company's strong quarter, earnings estimates have been on the upswing. Over the past week, this year's estimates have jumped 21 cents to $4.11 per share. WCG has beaten analyst expectations for 10 straight quarters, with seven of them posting double-digit surprises. Four analysts have raised their forecasts for the current 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

Labels:

Click for full article

Wednesday, February 21, 2007

SWSI - Superior Well Services, Inc - four of six quarters, the company surprised by a double-digit percentage

Superior Well Services, Inc. (SWSI) topped analysts’ earnings expectations for six straight quarters by an average margin of 15.5%. The Zacks #1 Rank company recently announced solid fourth-quarter and full-year 2006 results. Consensus estimates for this year and next have risen over the past two months.

Full Analysis

Superior Well Services, Inc. offers various wellsite solutions to oil and natural gas companies, primarily technical pumping services and down-hole surveying services in the United States. Since 1997 the company’s operations have expanded from two service centers in the Appalachian region to 19 service centers providing coverage across 38 states. The majority of SWSI’s customers are regional, independent oil and natural gas companies.

SWSI exceeded analysts’ earnings expectations for six consecutive quarters by an average margin of 15.5%. In four out of the six quarters, the company surprised by a double-digit percentage.

On Feb 13, SWSI reported fourth-quarter earnings per share of 49 cents, which beat the Street’s estimate by a penny. The result more than doubled the 23 cents per share posted in the prior-year period. Revenues ballooned 82.3% to $75.1 million, compared to $41.2 million in the fourth quarter of last year.

For the entire year, profits came in at $31.9 million, versus $9.5 million in 2005. Revenues soared 85.7% to $244.6 million, compared to $131.7 million last year, with each operating region experiencing revenue increases.

CEO David Wallace stated, “We are extremely pleased with the 2006 performance. Revenue growth in 2006 allowed us to maintain strong earnings despite start-up costs associated with our new service centers. Completion of the company's follow-on common stock offering in December 2006 provided the company with a strong financial foundation to continue its growth in the future.”

In early December, SWSI announced the pricing of its follow-on public offering of 4.6 million shares of common stock at $25.50 per share. The company plans to use the proceeds to repay outstanding indebtedness and to purchase additional oilfield service equipment.

The consensus earnings estimate for this year currently sits at $2.10, marking a 7.7% improvement when compared to estimates of 60 days prior. Profit forecasts for next year jumped 6.8% to $2.67 over the same period of time.

SWSI is currently trading at a valuation of 10.8x current fiscal-year estimated earnings and at 8.5x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.1x current fiscal-year estimated earnings and at 14.7x next fiscal-year estimated earnings. The company has a price-to-book ratio of 3.9, compared to 4.9 for the market.

Content Courtesy: Zacks Investment Research

#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

| Blog Home| VitalStocks Home

Labels:

Click for full article

PSYS - Psychiatric Solutions - is nothing if not predictable

Background

Psychiatric Solutions, Inc. offers an extensive continuum of behavioral health programs to critically ill children, adolescents and adults through its ownership and operation of freestanding psychiatric inpatient hospitals and its management of psychiatric units within general acute care hospitals owned by others.

Full Analysis

Psychiatric Solutions is nothing if not predictable. On Feb 15, PSYS delivered its twelfth straight positive earnings surprise. The company reported EPS of 33 cents, up 27% from the same quarter last year and a 10% positive earnings surprise. Sales grew 15.86% to $280.96 million and income rose 48% to $18.04 million.

Technical Analysis

With a company reporting earnings surprises for the last three years, you’d expect to see a steady uptrend. For the most part, that’s what you get with PSYS. The company has outperformed the general market for the last four years, and is beating the S&P 500 in 2007. For the year to date, PSYS is up 4.1% compared to the S&P 500 gain of 2.61%.

The company set a new 52-week high on twice normal volume on Friday, then followed again on Tuesday with another 52-week high. With Friday’s breakout on heavy volume and Tuesday’s follow through, this is a stock that one just has to bite the bullet and buy. There is little likelihood of a significant break from current levels. The company’s consistent ability to beat analysts’ expectations should take some of the sting out of ‘buying high and selling higher’ with PSYS stock.


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

Labels:

Click for full article

ACE - ACE limited - surprised by a double-digit percentage in the past two reports

ACE limited (ACE) exceeded analysts’ earnings expectations in 14 out of the past 16 quarters, including an 11% surprise in its most recent quarter. Analysts have been upping their profit forecasts for both this year and next. ACE has a current dividend yield of 1.7% and a five-year average dividend yield of 1.9%. Its return on equity tops that of the industry average—19% compared to 16%.

Full Analysis

ACE Limited, the Bermuda-based holding company of the ACE Group of Companies, provides a range of insurance and reinsurance products to insureds through operations in more than 50 countries around the world. The company operates through five segments: Insurance North American, Insurance Overseas General, Global Reinsurance, Financial Services, and Life Insurance and Reinsurance.

When ACE was first presented as a Growth and Income pick on Oct 11, the company had beaten the consensus earnings estimate in 12 out of the past 14 quarters. ACE extended its solid track record by adding two more surprises over the past two quarters. Moreover, the company surprised by a double-digit percentage on both occasions.

On Jan 30, ACE posted fourth-quarter profits of $643 million, or $1.92 per share, compared with $244 million or 72 cents per share for the same quarter of last year. Analysts were calling for earnings of $1.73 per share. Gross premiums written jumped 5.8% to $4.01 billion from $3.79 billion in the prior-year period. Net premiums written rose 8.8% to $2.86 billion.

For the entire year, profits came in at $2.35 billion versus $955 million for 2005. Gross premiums written climbed 3.6% to $17.4 billion, while net premiums written experienced a modest advance to $12.0 billion from $11.8 billion.

ACE’s combined ratio, a measure of profitability for insurance companies, for the fourth quarter improved to 88.2% from 101.9%. For the entire year, the ratio was 88.1% compared to 99.5% last year. 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.

Consensus estimates for this year are up three cents to $6.96 over the past 30 days, and reflect upward revisions by nine analysts. Three analysts upped their profit forecasts for next year, causing estimates to rise by four cents to $7.12. Earnings per share are projected to grow 10.3% over the next 3-5 years.

On Nov 17, ACE declared a quarterly cash dividend of 25 cents per share. The company has a current dividend yield of 1.7% and a five-year average dividend yield of 1.9%. ACE’s return on equity tops that of the industry average—19% compared to 16%.

ACE 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

Labels:

Click for full article

PCR - Perini Corp - beat Wall Street expectations and gave an upbeat 2007 forecast

PCR has met or exceeded estimates in 11 out of the past 12 quarters. Three analysts have raised their forecasts for this year. Earnings estimates have turned upward over the past week for both this year and next year. Next year's estimates jumped 15 cents to $2.75 per share over the past week. The stock is attractively priced at 14x next year's estimates.

Full Analysis

Perini Corporation (PCR) provides general contracting, construction management, and design-build services to private clients and public agencies worldwide. The company offers general contracting, preconstruction planning, and project management services, including the planning and scheduling of the manpower, equipment, materials, and subcontractors required for a project.

It also offers self-performed construction services, including site work, concrete forming, and placement and steel erection. Perini Corporation operates through three segments: Building, Civil, and Management Services.

The company's stock rose to a 52-week high last week, a day after the company reported fourth-quarter earnings that beat Wall Street expectations and gave an upbeat 2007 forecast. Net income came in at $19.3 million, or 72 cents per share, compared with a loss of $13.9 million, or 45 cents per share, in the fourth quarter of 2005, when a judgment against two Perini joint ventures cost the company $23.6 million, or 90 cents per share. Analysts only expected 34 cents per share.

Sales rose to $944.3 million from $603.2 million in the fourth quarter of 2005, buoyed by a 73.5% jump in building revenue to more than $801 million. For 2006, Perini posted a profit of $41.5 million, or $1.54 per share, compared with $4 million, or 20 cents per share, in 2005. Sales rose to a record $3.04 billion from $1.73 billion in 2005.

Robert Band, President and Chief Operating Officer, stated that, "We are pleased to report a record pretax profit for 2006, led by our building and our management services segments. Our strong backlog of $7.9 billion entering 2006 converted to revenue as expected during the year. In addition, we have added new work to our backlog during 2006 at a faster pace than our revenue burn-off, resulting in an increased backlog of $8.5 billion at December 31, 2006. Given the visibility provided from this backlog, we look forward to what we anticipate will be a record year in 2007 for revenues and earnings per share."

PCR has met or exceeded estimates in 11 out of the past 12 quarters. Three analysts have raised their forecasts for this year. Earnings estimates have turned upward over the past week for both this year and next year. Next year's estimates jumped 15 cents to $2.75 per share over the past week. The stock is attractively priced at 14x next year's estimates.

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

Labels:

Click for full article