NPO - EnPro Industries, Inc - crushed the consensus earnings estimate of 49 cents by 65.3%

EnPro Industries, Inc. (NPO), a Zacks #1 Rank stock, has benefited from acquisitions made throughout the year. The consensus earnings estimate for this year has risen dramatically over the past 30 days. NPO has a price-to-book ratio of 2.0, compared to 4.8 for the market. Full Analysis EnPro Industries, Inc. manufactures and markets industrial sealing products, seals for heavy-duty trucking, metal polymer and filament wound bearings, air compressors, and diesel and natural gas-fired engines. The company operates 29 manufacturing facilities in North America, Europe and Asia. NPO sells its products to more than 50,000 customers in over 100 countries across the globe. On Feb 15, NPO posted fourth-quarter profits of 81 cents per share, which crushed the consensus earnings estimate of 49 cents by 65.3%. Compared to earnings of 63 cents per share in the prior-year period, the results marked a 28.6% year-over-year improvement. Revenues jumped 18.2% to $244.8 million from $207.1 million a year ago. For the full year, profits came in at $66.6 million, a 28.3% improvement when compared to $51.9 million earned in 2005. Revenues climbed 10.7% to $928.4 million from $838.6 million. Both the full-year and quarterly profit numbers exclude losses in before-tax asbestos-related costs stemming from legal fees and increased liability coverage for EnPro's subsidiaries. President and CEO Ernie Schaub stated, “A strong fourth quarter helped us complete our best year ever. We had solid organic growth throughout the year, we benefited from acquisitions, we made investments in our operations and we continued to build upon the skills that will ensure our success in the future.” Looking ahead, NPO believes that strong cash flows will help it locate attractive acquisitions and expand the company’s operations into new markets, including China and India. During the past year NPO completed four acquisitions and established a joint venture with a Japanese company to serve the Asian markets. The consensus earnings estimate for this year has risen dramatically over the past 30 days. It currently resides at $3.58—a 22.6% leap when compared to the $2.92 month-old forecast. NPO is currently trading at a valuation of 10.6x current fiscal-year estimated earnings and at 9.6x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.5x current fiscal-year estimated earnings and at 14.2x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.0, compared to 4.8 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

Click for full article

PRU - Prudential Financial, Inc - Upward revisions were submitted by 11 of the 15 covering analysts

Prudential Financial, Inc. (PRU) exceeded analysts’ earnings expectations in nine out of the past 11 quarters by an average margin of 15.3%. The company recently raised its full-year earnings per share guidance to between $6.80 and $7.00. PRU has returned value to shareholders in the form of share buybacks and dividend payments. The company has a current dividend yield of 1.0% and a five-year average dividend yield of 0.75%. Full Analysis Prudential Financial, Inc., through its subsidiaries and affiliates, offers an array of financial products and services, including life insurance, mutual funds, annuities, pension and retirement-related services and administration, asset management, banking and trust services, real estate brokerage and relocation services, and, through a joint venture, retail securities brokerage services. PRU beat the consensus earnings estimate in nine out of the past 11 quarters by an average margin of 15.3%. The company surprised by a double-digit percentage in seven out of the nine aforementioned quarters. On Feb 7, PRU reported fourth-quarter earnings per share of $1.67, topping analysts’ expectations by 10.6%. Profits in the prior-year period came in at $1.06, thus, the company achieved an impressive 57.5% year-over-year improvement. Total revenues increased 12% to $6.55 billion from $5.85 billion a year earlier. For the entire year, profits slipped a bit to $3.14 billion, compared with $3.22 billion in 2005. The 2005 results included a $720 million tax benefit. Revenues in 2006 rose 7.4% to $24.85 billion from $23.13 billion. Chairman and CEO Arthur F. Ryan stated, “The progress we've made in our first five years as a public company is evident in our results for the fourth quarter and the year. With our mix of businesses with attractive growth opportunities, our complementary and expanding distribution, and our strong capital position, we believe we are on track to achieve our longer-term goals.” PRU now expects full-year 2007 earnings per share between $6.80 and $7.00. The company’s previous outlook called for profits between $6.60 and $6.80 per share. This expectation assumes appreciation in the S&P 500 index of 8% for the year. Consensus estimates for this quarter are up three cents to $1.62 over the past 30 days, and represent upward revisions by six analysts. Profit forecasts for this year have risen 20 cents to $6.93 over the same period of time. Upward revisions were submitted by 11 of the 15 covering analysts. Earnings per share are projected to grow 13% over the next 3-5 years, with the industry expected to grow by 10%. On Nov 14, 2006, PRU declared an annual dividend of 95 cents per share, which represented a 22% boost from the dividend declared in the previous year. The company has a current dividend yield of 1.0% and a five-year average dividend yield of 0.75%. During the fourth quarter, the company repurchased 7.7 million shares at a total cost of $626 million. Over the past year, PRU bought back 32.4 million shares at a total cost of approximately $2.4 billion. Since the company began repurchasing shares in May 2002, it has acquired 152.4 million shares at a total cost of $7.9 billion. On Nov 14, 2006, the Board of Directors authorized the buyback of up to $3 billion of its common shares in 2007. PRU 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

Click for full article

TDS - Telephone and Data Systems, Inc - broadband Internet (DSL) business is generating strong growth

Telephone and Data Systems has a mixture of high-growth and stable businesses. TDS Telecom's main focus is on the rural and suburban markets, where competition is less intense than in metropolitan and urban areas. Additionally, the broadband Internet (DSL) business is generating strong growth, partially offsetting recurring declines of local phone access lines and associated revenues. Full Analysis Telephone and Data Systems, Inc. (TDS) is a diversified telecom service provider offering wireless and wireline services to over 5.8 million customers in 35 states. The principal subsidiaries, U.S. Cellular and TDS Telecom, accounted for approximately 77% and 23% of revenue, respectively, in 2005. The company owns 81.3% of U.S. Cellular (USM), the sixth largest wireless operator in the U.S., with 5.8 million subscribers as of December 31, 2006. TDS operates its fixed-line telecom businesses through its wholly-owned subsidiary, providing local phone service, long-distance, and Internet access primarily to rural and suburban communities. It operates both as an incumbent local exchange carrier (ILEC), as well as a competitive local exchange carrier (CLEC). TDS's fast growing, but capital intensive, wireless operations (US Cellular) fit well with its relatively stable, higher margin, fixed-line businesses. U.S. Cellular has earned a respectable reputation for offering high-quality service, which has helped to keep its churn (customer switching) rate low. It has completed a major upgrade of its network from the older time division multiple access (TDMA) equipment, to newer code division multiple access (CDMA) technology. Although growth on the wireline side is expected to be modest, TDS Telecom's main focus is on the rural and suburban markets, where competition is less intense than in metropolitan and urban areas. Additionally, the broadband Internet (DSL) business is generating strong growth, partially offsetting recurring declines of local phone access lines and associated revenues. The company just reported operating revenues of $1,112.1 million for the third quarter of 2006, up 8 percent from $1,027.9 million, as restated, for the comparable period one year ago. Operating income was $110.4 million compared to operating income of $104.5 million, as restated, for the third quarter of 2005. Net income available to common and diluted earnings per share were $75.2 million and $0.64, respectively. In the third quarter of 2005, net income available to common and diluted earnings per share were $38.6 million and $0.33, respectively, as restated. 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

Click for full article

CF - CF Industries Holdings, Inc - earnings estimates for this year and next have experienced sizable leaps over the past 30 days

CF Industries Holdings, Inc. (CF) exceeded analysts’ expectations for the past three quarters, most recently by 8.7% in the fourth quarter of 2006. Consensus earnings estimates for this year and next have experienced sizable leaps over the past 30 days. This Zacks #1 Rank stock has a price-to-book ratio of 2.7, compared to 4.8 for the market. It is currently yielding 0.22%. Full Analysis CF Industries Holdings, Inc., a subsidiary of CF Industries Holdings, Inc., is one of North America’s largest manufacturers and distributors of nitrogen and phosphate fertilizer products. The company's principal products in the nitrogen fertilizer business are ammonia, urea and urea ammonium nitrate solution. Its principal products in the phosphate fertilizer business are diammonium phosphate and monoammonium phosphate. On Feb 8, CF reported fourth-quarter earnings per share of 25 cents. The result amounted to an 8.7% positive earnings surprise with analysts projecting 23 cents per share. Even more remarkable was the year-over-year improvement—profits in the prior-year period were seven cents per share. The company has now exceeded analysts’ expectations for the past three quarters by an average margin of 9.5%. Revenues jumped 9.3% to $506.2 million from $463.0 million in the fourth quarter of 2005. Chairman and CEO Stephen R. Wilson stated, “2006 ended on a strong note for CF Industries. The prospect of significantly higher demand for major crops such as corn and wheat in 2007, coupled with low international grain stockpiles, is expected to produce a sizeable increase in U.S. planted acreage during the coming spring season.” With farmers expecting to plant the largest corn acreage in 60 years this spring, fertilizer prices are projected to rise sharply. The growing demand from the ethanol industry is prompting farmers to take action and plan accordingly. Consensus earnings estimates for this year and next have experienced sizable leaps over the past 30 days due to the bullish guidance on fertilizer companies. The consensus earnings estimate for this year currently resides at $2.44. This represents an 87.7% improvement when compared to the consensus of one month earlier. All four covering analysts boosted their estimates. Profit forecasts for next year jumped 55.8% to $2.57 over the same period of time. An upward revision was submitted by one analyst. On Feb 7, the Board of Directors declared a quarterly cash dividend of two cents per common share of stock. CF is currently yielding 0.22%. CF is currently trading at a valuation of 15.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.5x current fiscal-year estimated earnings The company has a price-to-book ratio of 2.7, compared to 4.8 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

Click for full article

CIT - CIT Group, Inc - quarterly cash dividend a 25% increase over last quarter's dividend

CIT Group, Inc. (CIT) exceeded analysts’ earnings expectations in 12 out of the past 15 quarters. After releasing solid results for the fourth quarter of 2006, the company raised its 2007 profit outlook. The Board of Directors boosted its quarterly dividend by 25% in mid January. CIT is currently yielding 1.8%, with a five-year average dividend yield of 1.6%. Full Analysis CIT Group, Inc. operates as a global commercial and consumer finance company. CIT provides financing solutions, leasing products and advisory services. The company has offices in more than 30 countries. CIT exceeded analysts’ earnings expectations in 12 out of the past 15 quarters. In the three quarters in which the company failed to produce a positive earnings surprise, it missed by only a penny on two occasions and met estimates in the remaining quarter. Earnings per share grew 20.9% over the past five years. On Jan 17, CIT beat the consensus earnings estimate for the fourth quarter by two cents with profits of $1.26 per share. Compared to earnings of $1.09 in the prior-year period, the result equated to a 15.6% year-over-year improvement. Revenues reached $741.4 million, up 11.8% from the prior year's $663.1 million. For the entire year, net income available to shareholders came in at $1.02 billion, compared to $936.4 million last year. Revenues jumped 9.8% to $2.81 billion from $2.56 billion. CIT increased revenues, expanded gross margins and grew profits for the past three years. “We have strong momentum across our businesses and our financial results reflect this strength. As a result of this success, we are increasing our 2007 EPS guidance to $5.40 - $5.50, reaffirming our 15% return on common equity target and increasing our dividend by 25%.” Analysts responded to CIT’s bullish guidance by upping their profit forecasts. The consensus estimate for this year rose 12 cents to $5.43 over the past 60 days. Estimates for next year increased 19 cents to $6.07 over the same period of time. Earnings per share are projected to grow 12% over the next 3-5 years, while the industry is expected to grow 11%. On Jan 16, the Board of Directors declared a regular quarterly cash dividend of 25 cents per share on its outstanding common stock. This marked a 25% increase over last quarter's dividend of 20 cents per share. The company is currently yielding 1.8%, with a five-year average dividend yield of 1.6%. On Jan 25, the Board further enhanced shareholder value by authorizing a $500 million common stock repurchase program. CIT’s return on equity, a common measure of profitability, tops that of the industry average—15% compared to 12%. CIT 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

Click for full article

RIMG - Rimage Corp - significantly exceeded earnings estimates in each of the past four quarters by an average margin of about 31%

Rimage has significantly exceeded earnings estimates in each of the past four quarters by an average margin of about 31%. One out of the two analysts covering the stock raised his estimates for this year. Over the past week, this year's estimates have jumped nine cents to $1.44 per share. Full Analysis Rimage Corporation (RIMG) engages in the development, manufacture, and distribution of CD-Recordable (CD-R) and DVD-Recordable (DVD-R) publishing and duplication systems. Its products provide compelling solutions for distribution and archiving of information on CDs and DVDs for just-in-time, on-demand, and mass customization applications. The company's publishing systems include equipment to handle low-to-high production volumes, incorporate robotics, software, and custom printing technology for disc labeling. Rimage offers its CD-R and DVD-R publishing solutions for markets with needs for on-demand digital information, including digital photography, medical imaging, banking and finance, government, and business offices. RIMG reported a strong fourth quarter this past week by reporting revenues of $30.5 million for the fourth quarter of 2006 ended December 31, an increase of 26% from $24.3 million in the fourth quarter of 2005. Net income rose 57% to $0.34 per share, from $0.22 per share in the year-earlier quarter. Bernard P. Aldrich, president and chief executive officer, commented: "We ended 2006 by posting the strongest fourth quarter in our history, a performance that enabled Rimage to cross the $100 million sales milestone and report record earnings for the full year. Virtually every aspect of our business continued to perform at a high level during the quarter. Our global channel generated sales of mission-critical Producer disc publishing systems across a wide spectrum of markets." "In addition, we continued making excellent progress in our targeted retail, medical imaging and business services applications through sales of both Producer disc publishing systems and related consumable supplies. Looking ahead, we will continue to focus our resources and technological competencies on significant opportunities in our targeted markets. Our strategic focus, combined with the strength of our served markets, makes us believe Rimage's outlook for 2007 is very positive." Rimage has significantly exceeded earnings estimates in each of the past four quarters by an average margin of about 31%. One out of the two analysts covering the stock raised his estimates for this year. Over the past week, this year's estimates have jumped nine cents to $1.44 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

Click for full article

TEX - Terex Corp - PEG ratio is 0.85 - Analysts responded to the company’s bullish guidance by upping their earnings estimates

Terex Corporation (TEX) is up nearly 58% since being featured as a Value stock on Sep 12. Moreover, the company remains a Zacks #1 Rank stock. TEX recently reported solid results for the fourth quarter and full year of 2006. Analysts have been upping their earnings estimates for both this year and next. The Board of Directors announced a $200 million share repurchase program in mid December. TEX’s PEG ratio currently sits at 0.85. Full Analysis Terex Corporation is a diversified global manufacturer of capital equipment for the construction, infrastructure, quarry, mining, shipping, transportation, refining and utility industries. TEX has returned nearly 58% since it made its debut as a Value pick on Sep 12. By exceeding analysts’ earnings expectations, coupled with earnings estimates trending higher, the company has held on to its Zacks #1 Rank status. Furthermore, TEX continues to trade at a discounted valuation. On Feb 14, TEX reported fourth-quarter profits of $100.9 million, or 97 cents per share, compared to $34.8 million, or 34 cents per share for the fourth quarter of 2005. The result beat the consensus earnings estimate by four cents. Revenues rose 29.3% to $2.03 billion from $1.57 billion a year ago. For the entire year, profits came in at $399.9 million versus $188.5 million for the full year 2005. Revenues jumped to $7.65 billion from $6.16 billion a year ago. TEX increased revenues for the past five years. Chairman and CEO Ronald M. DeFeo stated, “2006 was a year of significant progress on many fronts—financially, operationally and organizationally. Financially, we experienced record net sales and net income, and our debt less cash and cash equivalents of $86 million is at a historic low. Our outlook for 2007 is strong and we expect to grow our franchise even more than we did in 2006.” Analysts responded to the company’s bullish guidance by upping their earnings estimates. Profit forecasts for this year sit at $5.16 and represent an 11-cent improvement over the past 30 days. Estimates for next year also jumped 11 cents to $5.99. Three analysts submitted upward revisions for both this year and next. Earnings per share are projected to grow 16% over the next 3-5 years. The industry is expected to grow at a 13% clip. On Dec 15, the Board of Directors authorized a share repurchase program, under which TEX can buy back up to $200 million of the company's outstanding common shares through Jun 30, 2008. It was also announced on this date that TEX will be added to the S&P 500 Index, replacing Navistar International Corp. (NAV). Its addition was made official after the close of trading on Dec 19, 2006. TEX continues to trade at a discounted valuation. The company is currently trading at a valuation of 13.3x current fiscal-year estimated earnings and at 11.5x 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 4.4, compared to 4.8 for the market. Its PEG ratio is 0.85. 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

Click for full article

GRMN - Garmin, Ltd - Estimates for this year and next are up 18.0% and 20.3%, respectively over 30 days

Garmin, Ltd. (GRMN) exceeded analysts’ earnings expectations in 11 consecutive quarters by an average margin of 16.8%. Consensus estimates have been trending higher after the company released impressive results for the fourth quarter and full year of 2006. GRMN is currently yielding 0.87% and its return on equity more than triples that of the industry average—37% compared to 11%. Full Analysis Garmin, Ltd. is a member of the Garmin Ltd. group of companies that designs, manufactures and markets navigation and communications equipment for the aviation and consumer markets. The company’s products serve aviation, marine, automotive, wireless, OEM and general recreation applications. GRMN exceeded analysts’ earnings expectations in 11 straight quarters by an average margin of 16.8%. In eight out of the 11 aforementioned quarters, the company managed to produce double-digit earnings surprises. Moreover, GRMN met or beat the consensus estimate for the past 16 quarters. On Feb 14, GRMN produced a 41.4% positive earnings surprise when it posted fourth-quarter profits of 82 cents per share. Analysts were calling for 58 cents. Compared to the prior-year period, earnings skyrocketed 105%. Revenues for the quarter nearly doubled to $611.2 million from $319.3 million in the prior-year period. For the entire year, profits amounted to $514.1 million, versus $311.2 million last year. Revenues soared 71.8% to $1.77 billion from $1.03 billion. GRMN increased revenues and grew profits for the past six years. Chairman and CEO Dr. Min Kao stated, “2006 was truly a remarkable year for Garmin. We are delighted to have introduced over 70 innovative new products. We also look forward to our customers' reactions to exciting products we have scheduled for delivery in early 2007.” Analysts have displayed their excitement by upping their profit forecasts. Consensus estimates for this quarter and next have risen 7.6% and 9.5%, respectively, over the past 30 days. Estimates for this year and next are up 18.0% and 20.3%, respectively, over the same period of time. Earnings per share are projected to grow 18% over the next 3-5 years, while the industry is expected to grow by 17%. GRMN has a current dividend yield of 0.87% and a five-year average dividend yield of 0.56%. The company’s return on equity more than triples that of the industry average—37% compared to 11%. 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

Click for full article

OMX - OfficeMax Inc - exceeded earnings estimates in 5 quarters, 3 of them with over 100% surprises

OMX has comfortably exceeded earnings estimates in each of the past five quarters. Three of them had positive surprises over 100%. Three analysts have raised their forecasts for this year, while two have done so for next year. Over the past week, earnings estimates have jumped eight cents to $2.66 per share. The stock is attractive at 17.2x next year's estimate of $3.04 per share, below the projected 20% growth rate. Full Analysis OfficeMax Incorporated (OMX) engages in the distribution of business-to-business and retail office products primarily in the United States. It operates through two segments, OfficeMax, Contract and OfficeMax, Retail. The OfficeMax, Contract segment distributes a line of items for the office, including office supplies and paper, technology products and solutions, and office furniture. This segment offers its products directly to corporate and government offices, as well as to small and medium-sized offices in the United States, Canada, Australia, New Zealand, and Mexico. The company recently swung to a fourth-quarter profit, beating Wall Street's estimates, as profit margins expanded. The retailer made $54.4 million, or 46 cents a share, from continuing operations for the quarter ended Dec. 30, reversing the year-ago loss of $22.6 million, or 33 cents a share. Sales fell to $2.26 billion from $2.46 billion a year earlier. Analysts were looking for a 40-cent profit on sales of $2.31 billion. "The fourth quarter and full year 2006 represented significant improvement for OfficeMax," said Sam Duncan, Chairman and Chief Executive Officer of OfficeMax. "We delivered on our turnaround plan goals with solid operating income margin expansion in both our Contract and Retail segments." OMX has comfortably exceeded earnings estimates in each of the past five quarters. Three of them had positive surprises over 100%. Three analysts have raised their forecasts for this year, while two have done so for next year. Over the past week, earnings estimates have jumped eight cents to $2.66 per share. The stock is attractive at 17.2x next year's estimate of $3.04 per share, below the projected 20% growth rate. 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

Click for full article

USAP - Universal Stainless & Alloy Products, Inc - beat the Street yet again, with its average surprise over 12 quarters being 19.9%

Universal Stainless & Alloy Products, Inc. (USAP), which was last presented as a Value stock on Oct 24, is up over 66%. The company exceeded analysts’ earnings expectations in 12 straight quarters by an average margin of 19.9%. USAP reported record fourth-quarter and full-year results in mid January. Consensus estimates continue to trend higher for this Zacks #1 Rank stock. The company has a price-to-book ratio of 3.2, compared to 4.8 for the market. Full Analysis Universal Stainless & Alloy Products, Inc. manufactures and markets semifinished and finished specialty steel products, including stainless steel, tool steel and other alloyed steels. The company's products are sold to rerollers, forgers, service centers, original equipment manufacturers and wire redrawers. When USAP was last presented as a Value stock on Oct 24, its strong history of exceeding analysts’ earnings expectations was noted. At the time, the company topped estimates for 11 straight quarters. Since that time, USAP beat the Street yet again, with its average margin of surprise over the past 12 quarters being 19.9%. The company managed to surprise by a double-digit percentage in nine of the 12 quarters. Moreover, consensus estimates continue to trend higher and the company is still trading at a discounted valuation. On Jan 18, USAP reported fourth-quarter profits of 88 cents per share. The result crushed the consensus earnings estimate of 73 cents by 20.6%. Compared to the prior-year period, earnings ballooned 60.0%. Revenues hit an all-time high, increasing 32.9% to $55.8 million. President and CEO Mac McAninch stated, “We achieved record results in the fourth quarter of 2006 as we have each quarter this year due to the strength of our niche markets coupled with our targeted investments in capital equipment and personnel, which have enabled us to take advantage of market opportunities.” For the entire year, profits soared 57.3% to $20.6 million and revenues experienced a 19.9% leap to $203.9 million. Both numbers marked new highs for the company. The company increased revenues, expanded gross margins and grew profits for the past three years. The consensus estimate for this quarter currently resides at 85 cents. This represents a 16.4% jump when compared to the consensus 60 days earlier. For the full year, profit forecasts increased 8.5% to $3.45. USAP is currently trading at a valuation of 14.8x current fiscal-year estimated earnings and at 13.6x 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 3.2, compared to 4.8 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

Click for full article

LCAV - LCA-Vision, Inc - topped analyst expectations in 14 out of the past 16 quarters

LCA-Vision, Inc. (LCAV), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in 14 out of the past 16 quarters. The company recently reported solid results for the fourth quarter and full year of 2006. Analysts have been upping their profit forecasts for this year and next. The Board of Directors has returned value to stockholders through both share repurchases and dividend payments. LCAV has a current dividend yield of 1.6%. Full Analysis LCA-Vision, Inc. is a leading provider of laser vision correction services under the LasikPlus brand. The company owns and operates 60 LasikPlus fixed-site laser vision correction centers in the United States and participates in a joint venture in Canada. LasikPlus vision centers are located in 46 markets in 28 states. LCAV’s history of topping analysts’ earnings expectations is rather solid, having done so in 14 out of the past 16 quarters. The company managed to surprise by a double-digit percentage in 11 quarters while posting a triple-digit surprise on two occasions. On Feb 12, LCAV reported fourth-quarter profits of 34 cents per share, which surpassed the consensus estimate of 27 cents by an impressive 25.9%. The result also represented a 13.3% year-over-year improvement when compared to the 30 cents earned in the fourth quarter of 2005. Revenues grew to $58.8 million from $46.8 million in the prior-year period. Same-store sales, or sales from stores open at least one year, rose 10%. For the entire year, profits jumped 20.5% to $38.2 million from $31.7 million in 2005. Revenues came in at $256.9 million, versus $192.3 million last year. LCAV increased revenues for the past four years. The company has returned value to stockholders in the form of share buybacks. In November 2006, LCAV announced that it completed the share buyback program authorized by its Board of Directors in May 2005. The plan enabled the company to repurchase one million shares of its common stock for a total cost of approximately $38.5 million. The Board also announced a new share repurchase plan under which LCAV can buy back up to $50 million of its common stock. As of Dec 31, 2006, the company had repurchased 442,400 shares of its common stock for a total cost of approximately $15.5 million. On Feb 21, the Board of Directors declared a quarterly cash dividend of 18 cents per share. The dividend will be paid on Mar 30 to shareholders of record as of Mar 21. LCAV has a current dividend yield of 1.6%. The consensus estimate for this year currently sits at $2.11. This marks a 5.5% jump when compared to estimates of 30 days prior. Profit forecasts for next year have risen by a larger amount—up 10.3% over the same period of time. All four covering analysts raised their estimates for this year while three followed suit for next year. Earnings per share are projected to grow 15.0% over the next 3-5 years. LCAV’s return on equity of 24% more than doubles the 11% for 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

Click for full article

WBMD - WebMD Health Corp - fourth-quarter profit jumped 46% to beat Wall Street expectations

The company has easily exceeded earnings estimates in each of the past five quarters by a minimum of 22% over that time frame. Over the past week, earnings estimates have taken a big leap. This year's numbers have jumped 18 cents to 55 cents per share. Similarly, next year's estimates have risen 18 cents to 78 cents per share. Full Analysis WebMD Health Corp. (WBMD) provides health information services to consumers, physicians, healthcare professionals, employers, and health plans through its public and private online portals and health-focused publications. It operates in two segments: Online Services and Publishing Services. The company's customers include pharmaceutical, biotechnology, medical device, and consumer products companies. It has strategic alliances with AOL division of Time Warner, Inc. and Fidelity Human Resources Services Company, LLC. WBMD said last week its fourth-quarter profit jumped 46% to beat Wall Street expectations, on strong sales growth. Net income for the quarter was $8.9 million, or 15 cents per share, up from $6.1 million, or 11 cents per share, for the fourth quarter of 2005. Revenue was $80.6 million, up 64 percent from $49.1 million in the year-ago period. Analysts expected earnings of 12 cents per share on $79.1 million in revenue. The company also lifted its full-year 2007 financial expectations. WebMD now expects net income of $21 million to $29 million, 35 cents to 48 cents per share, up from a previous forecast for net income of $13 million to $23 million, or earnings 22 cents to 38 cents per share. WBMD expects 2007 revenue to range from $336 million to $352 million, up from a previous projection for $330 million to $340 million. Wayne Gattinella, President and Chief Executive Officer of WebMD, said: "I am extremely proud of our strong operating results for the fourth quarter, as WebMD increased its market position as the leading provider of health information for both consumers and physicians. We expect our momentum to continue with the increasing shift to online marketing and the industry trend towards consumer directed healthcare." The company has easily exceeded earnings estimates in each of the past five quarters by a minimum of 22% over that time frame. Over the past week, earnings estimates have taken a big leap. This year's numbers have jumped 18 cents to 55 cents per share. Similarly, next year's estimates have risen 18 cents to 78 cents 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

Click for full article