UVV - Universal Corp - 21.4% improvement in the consensus earnings estimate in the past 30 days

Universal Corporation (UVV) recently reported strong results for the third quarter of fiscal 2007. Consensus earnings estimates for this Zacks #1 Rank stock have been on the rise for both this year and next over the past 30 days. UVV has a price-to-book ratio of 1.8, compared to 4.2 for the market. The company is currently yielding 3.3% and has a five-year average dividend yield of 3.7%. Full Analysis Universal Corporation, through its subsidiaries, engages primarily in the selecting, buying, shipping, processing, packing, storing and financing of leaf tobacco in tobacco growing countries for sale to, or for the account of, manufacturers of tobacco products worldwide. UVV does not manufacture cigarettes or other consumer products. The company conducts business in more than 35 countries. On Feb 7, the company reported third-quarter fiscal 2007 income from continuing operations of $35.8 million, or $1.17 per share, compared to a loss of $349,000, or one cent per share, in the prior-year period. Revenues in the quarter were $515.9 million, up 8.5% from $475.7 million achieved in the third quarter of fiscal 2006. For the first nine months of the year, income from continuing operations came in at $59.3 million, or $1.87 per share, versus $22.3 million, or 87 cents per share, for the same period last year. Revenues jumped 9.4% to $1.51 billion from $1.38 billion. Looking ahead, Chairman and CEO Allen B. King stated, "The remainder of the fiscal year is expected to benefit from seasonal shipping patterns for North American, African, and European tobaccos while other origins move toward seasonally low periods. Although we have seen improvements this year from steps we took last year and a better South American crop, we will continue our efforts to improve our worldwide operations and to eliminate unproductive operations and assets.” The consensus earnings estimate for this year currently resides at $4.25. This marks an impressive 21.4% improvement when compared to estimates of 30 days prior. Profit forecasts for next year are up by an even larger margin over the past month—26.6% to $5.00. On Feb 6, the Board of Directors declared a quarterly dividend of 44 cents per share of common stock. The dividend is payable on May 14 to shareholders of record as of Apr 9. The company is currently yielding 3.3% and has a five-year average dividend yield of 3.7%. UVV is currently trading at a valuation of 12.8x current fiscal-year estimated earnings and at 10.9x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.4x current fiscal-year estimated earnings and at 14.0x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to 4.2 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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SWY - Safeway, Inc - surprised by a double-digit percentage in seven out of the 12 quarters

Safeway, Inc. (SWY) exceeded analysts’ earnings estimates in 12 out of the past 16 quarters by an average margin of 15.3%. The company met or topped expectations for 16 consecutive quarters. Shareholder value has been enhanced though both share purchases and dividend payments. SWY has a current dividend yield of 0.68%. Full Analysis Safeway, Inc., together with its subsidiaries, operates as a food and drug retailer in North America. The company operates stores that provide an array of dry grocery items, food, and general merchandise, as well as features specialty departments, such as bakery, delicatessen, floral and pharmacy. As of Dec 30, 2006, SWY operated approximately 1,761 stores. SWY exceeded analysts’ earnings estimates in 12 out of the past 16 quarters by an average margin of 15.3%. The company surprised by a double-digit percentage in seven out of the 12 quarters. In the four quarters in which SWY failed to beat the Street’s estimate, it managed to meet expectations. On Feb 22, the company reported fourth-quarter profits of 61 cents per share. The result represented a 5.2% positive earnings surprise when compared to the consensus estimate of 58 cents. Earnings in the prior-year period came in at 51 cents, thus, the year-over-year improvement was 19.6%. Total revenues increased to $12.5 billion from $12.0 billion in the fourth quarter of last year. For the entire year, profits rose to $870.6 million from $561.1 million last year. The result marked SWY’s highest annual profit since earning $1.25 billion in 2001. Total revenues climbed to $40.2 billion, compared to $38.4 billion in 2005. SWY increased revenues and grew profits for the past four years. Chairman, President and CEO Steve Burd stated, “Our fourth-quarter results demonstrate that our strategy continues to work well. By delivering superior perishables, completing more Lifestyle stores, making investments in price and promotion, controlling our costs, and delivering outstanding service, we are able to bring more to the table for our customers and our shareholders. We plan to continue to build on this momentum in 2007.” Consensus estimates have inched up over the past 30 days. Profit forecasts for this year currently sit at $1.96, versus $1.94 a month earlier, and represent upward revisions by three analysts. Estimates for next year are up two cents to $2.17 over the same period of time. Two analysts submitted upward revisions. Earnings per share are projected to grow 11.0% over the next 3-5 years. During the fourth quarter, SWY repurchased 3.7 million shares of its common stock at a total cost of $106 million (including commissions). For the entire year, the company bought back 12 million shares of its common stock at a total cost of $318.0 million (including commissions). SWY is still authorized to repurchase $747 million of its stock. On Dec 8, the Board of Directors declared a regular quarterly cash dividend of 5.75 cents per share. The company has a current dividend yield of 0.68%. SWY’s return on equity of 14% is in line with that of the industry average. SWY 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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GLBL - Global Industries, Ltd - dramatically exceeded earnings estimates in each of the past four quarters by an average margin of 60%

The company has dramatically exceeded earnings estimates in each of the past four quarters by an average margin of 60%. Not surprisingly, earnings estimates have been moving up for this year and next. Over the past week, this year's estimates have jumped 11 cents to $1.37 per share, while next year's numbers have risen 27 cents to $1.65 per share. The stock is cheap at 9.9x next year's estimates, well below the growth rate of 20%. Full Analysis Global Industries, Ltd. (GLBL) provides construction services to the offshore oil and gas industry primarily in the United States Gulf of Mexico. Its services include pipeline construction, platform installation and removal, diving services, and construction support. The company also operates construction vessels. The company also leases or charters other vessels and equipment, such as tugboats, cargo barges, utility boats, dive support vessels, and saturation diving systems. Its customers primarily include oil and gas producers and pipeline companies. GLBL said in early-March its fourth-quarter profit soared on strong performances in its Latin America and Gulf of Mexico diving segments. Net income surged to $54.9 million, or 47 cents per share, from $10.1 million, or 9 cents per share, in the previous year. Revenue for the quarter jumped 75 percent to $304.1 million from $174 million a year ago. Analysts only expected 36 cents per share. The company's balance sheet is in rock-solid shape. At December 31, 2006, the Company had $352.2 million of cash and no outstanding borrowings on its revolving line of credit. The positive cash flow generated from operations during the fiscal year sufficiently funded capital spending and improved the Company's financial flexibility. B.K. Chin, Chief Executive Officer of Global Industries, stated, "I am pleased to announce another quarter of outstanding financial results for our Company which was made possible by the extraordinary performance of our employees. The operational and financial successes of 2006 have positioned Global strategically to take advantage of the increasing opportunities that are presenting themselves not only in 2007 but also for 2008 and beyond." The company has dramatically exceeded earnings estimates in each of the past four quarters by an average margin of 60%. Not surprisingly, earnings estimates have been moving up for this year and next. Over the past week, this year's estimates have jumped 11 cents to $1.37 per share, while next year's numbers have risen 27 cents to $1.65 per share. The stock is cheap at 9.9x next year's estimates, well below the growth rate of 20%. 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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AZ - Allianz SE - Analysts upped their earnings estimates over the past 60 days

Consensus earnings estimates have been on the rise for Allianz SE (AZ), a Zacks #1 Rank stock. The Board of Directors recently announced a 90% increase in the company’s dividend. AZ has a current dividend yield of 0.96%. The company has a price-to-book ratio of 1.7, compared to 4.2 for the market. Full Analysis Allianz SE is a global financial service company that is engaged in the provision of insurance, banking and asset management. It has global property-casualty insurance, life/health insurance, and banking and asset management operations in more than 70 countries, with the largest of its operations in Europe. On Feb 22, AZ reported fourth-quarter profits of 1.37 billion euros ($1.8 billion), compared with 872 million euros a year earlier. Fewer claims fueled the successful quarter along with a tax gain after a change in German corporate tax law (the tax gain amounted to 500 million euros, or $657 million). The company's property and casualty business advanced 4.8% from the prior-year period, while its life and health insurance income soared 69%. For the entire year, AZ’s profits ballooned 60.3% to 7.02 billion euros ($9.23 billion), versus 4.38 billion euros in 2005. The company's property and casualty business accounted for earnings of 4.7 billion euros ($6.18 billion), up 34.3% percent from 3.5 billion euros in 2005. Its life and health insurance income rose 18.5% to 1.6 billion euros from 1.35 billion euros last year. CEO Michael Diekmann stated, “In 2006 we didn't just achieve our ambitious targets in terms of the result, but surpassed them all by a wide margin. We've delivered what we promised and will do so again in the coming years as well.” Analysts have become more optimistic about AZ’s future prospects and upped their earnings estimates over the past 60 days. Consensus estimates have risen 7.4% to $2.03 over the past two months. Profit forecasts for next year jumped 10.9% to $2.13 over the same period of time. The Board of Directors recently stated that it would pay a dividend of 3.80 euros ($5.00), up from the 2 euros ($2.63) it paid in 2005. The company has a current dividend yield of 0.96%. On Feb 21, AZ agreed to purchase a 49.17% stake in Rosno Group, a Russian insurer, from its Russian partners for $750 million. AZ already held about 47.4% of the company. Rosno is among Russia's top four insurers with products covering property, health and life. AZ is currently trading at a valuation of 9.8x current fiscal-year estimated earnings and at 9.0x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.4x current fiscal-year estimated earnings and at 14.0x next fiscal-year estimated earnings. AZ has a price-to-book ratio of 1.7, compared to 4.2 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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VMI - Valmont Industries, Inc - Analysts have been upping their earnings estimates

Valmont Industries, Inc. (VMI) recently reported impressive results for both the fourth quarter and full year of 2006. Analysts have been upping their earnings estimates for VMI. Earnings per share are projected to grow 15% over the next 3-5 years. On Feb 26, the Board of Directors declared a quarterly cash dividend of 9.5 cents per share. This Zacks #1 Rank stock is currently yielding 0.71%. Full Analysis Valmont Industries, Inc. is the global leader in designing and manufacturing poles, towers and structures for lighting and traffic, wireless communication and utility markets and a provider of protective coating services. The company also leads the world in mechanized irrigation equipment for agriculture. VMI also produces a wide variety of tubing for commercial and industrial applications. On Feb 14, VMI posted fourth-quarter profits of $16.1 million, or 62 cents per share, compared to $11.6 million, or 45 cents per share in the prior-year period. The result equated to a 37.8% year-over-year improvement. Moreover, with analysts calling for 59 cents, VMI surprised to the upside by 5.1%. Revenues jumped 5.4% to $328.0 million from $311.3 million in the fourth quarter of 2005. Full-year profits soared 57.3% to $61.5 million, versus $39.1 million last year. Revenues increased 15.3% to $1.28 billion from $1.11 billion in 2005. Chairman and CEO Mogens C. Bay stated, “Looking at the total year, we are pleased with the progress we made, yet not satisfied. We believe there is more work to be done to realize further improvements in top line growth, operating performance and returns on capital.” Analysts have been upping their earnings estimates for VMI. Estimates for this quarter and next have risen 7.0% and 10.5%, respectively, over the past 30 days. Profit forecasts for this year and next are up 6.5% and 11.5%, respectively, over the past month. Earnings per share are projected to grow 15% over the next 3-5 years, with the industry expected to grow at an 11% clip. On Feb 26, the Board of Directors declared a quarterly cash dividend of 9.5 cents per share. The dividend is payable on Apr 16 to shareholders of record as of Mar 30. On Apr 24, 2006, VMI increased its quarterly dividend by 11.8%. VMI is currently yielding 0.71% and has a five-year average dividend yield 1.3%. The company’s return on equity, a common measure of profitability, betters that of the industry average—17% compared to 16%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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AYR - Aircastle Ltd - trading at 17x 2007 estimates, well below the projected long-term growth rate of 25%

AYR will release fourth quarter and year-end results on March 15. Analysts expect the company to earn 37 cents per share, up a penny from last week. The company exceeded estimates by over 14% in its September quarter, coming in with 32 cents per share. The stock is trading at 17x 2007 estimates, well below the projected long-term growth rate of 25%. Full Analysis Aircastle Limited (AYR) engages in the acquisition, ownership, and lease of commercial jet aircraft to passenger and cargo airlines worldwide. It also makes investments in other aviation assets, including debt securities secured by commercial jet aircraft. As of March 31, 2006, the company's aircraft portfolio consisted of 42 aircraft that were leased to 24 lessees located in 16 countries, and managed through its offices in the United States, Ireland, and Singapore. The company, which went public in August, plans to finance the acquisitions through company stock and borrowings. It expects to close on 28 of the 38 aircraft this year. The remainder will close by February 2009. The aircraft, which include new freighters, converted freighters and passenger models, brings the company's fleet to 115. Aircastle just sured up its cash position by raising $446 million in a Follow-On Offering of 13.5 million common shares. The offering was priced at $33 per share. The company gave underwriters the option to buy up to around 2 million shares to cover overallotments. AYR will release fourth quarter and year-end results on March 15. Analysts expect the company to earn 37 cents per share, up a penny from last week. The company exceeded estimates by over 14% in its September quarter, coming in with 32 cents per share. The stock is trading at 17x 2007 estimates, well below the projected long-term growth rate of 25%. 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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GBL - GAMCO Investors, Inc - fourth-quarter results crushed the consensus estimate of 67 cents by 28.4%

GAMCO Investors, Inc. (GBL), a Zacks #1 Rank stock, recently reported record fourth-quarter earnings per share. Results for the full year were also solid. The consensus estimate for this year is up over the past 30 days. The Board of Directors has returned value to its shareholder base through both dividend distributions and share buybacks. GBL has a price-to-book ratio of 2.7, compared to 4.2 for the market. Full Analysis GAMCO Investors, Inc. is a diversified asset manager and financial services company. The company's investment services are primarily offered through its subsidiary GAMCO Asset Management Inc, which manages separate accounts for high net worth individuals, institutions and qualified pension plans. GBL's asset management businesses are supported by Gabelli & Company, Inc., an institutional broker/dealer. Gabelli & Company, Inc. distributes the mutual funds managed by Gabelli Funds. On Feb 7, GBL reported record fourth-quarter profits of 86 cents per share. The result crushed the consensus earnings estimate of 67 cents by 28.4%. With earnings of 65 cents per share in the prior-year period, the result amounted to a 32.3% year-over-year improvement. Revenues jumped 13.8% to $82.5 million from $72.5 million a year earlier. For the full year, profits climbed 8.4% to $68.8 million from $63.5 million in 2005. Revenues came in at $261.5 million, compared to $253.3 million last year. Assets under management ended the year at $28.1 billion, versus $26.8 billion at the end of 2005. The consensus estimate for this year currently sits at $2.65, and represents a 14-cent increase over the past 30 days. Both of the covering analysts upped their profit forecasts. Earnings per share are projected to grow 10% over the next 3-5 years. The Board of Directors has returned value to its shareholder base through both dividend distributions and share buybacks. On Feb 14, the Board declared a regular quarterly cash dividend of three cents per share. GBL is currently yielding 0.32%. Through Dec 31, 2006, the company repurchased 4,669,658 Class A common shares since its buyback program was authorized in March 1999. In the fourth quarter, GBL repurchased 4,700 shares. Moreover, on Nov 7, 2006, the Board approved the repurchase of 400,000 additional shares. The total amount of shares available for repurchase under the program was approximately 1,047,800 shares at Dec 31, 2006. GBL is currently trading at a valuation of 14.2x current fiscal-year estimated earnings and at 13.8x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.2x current fiscal-year estimated earnings and at 13.8x next fiscal-year estimated earnings. GBL has a price-to-book ratio of 2.7, compared to 4.2 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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ACL - Alcon, Inc - All 11 analysts upped their projections

Alcon, Inc. (ACL) exceeded analysts’ earnings expectations in 13 out of the past 16 quarters. After issuing bullish guidance for 2007, analysts responded by raising their earnings estimates. In early February, the Board of Directors expanded the company’s share repurchase program by five million shares. ACL is currently yielding 1.1% and has a five-year average dividend yield of 0.60%. Full Analysis Alcon, Inc. researches, develops, manufactures and markets pharmaceuticals, surgical equipment and devices, contact lens care solutions and other vision care products that treat diseases, disorders and other conditions of the eye. Over the past 16 quarters, ACL exceeded analysts’ earnings expectations in 13 quarters and matched estimates twice. In the remaining quarter, Alcon missed the consensus estimate by only a penny. On Feb 7, ACL posted fourth-quarter profits of $1.16 per share, compared to 86 cents per share in the fourth quarter of 2005. In addition to achieving a 34.9% year-over-year improvement, the result beat the Street’s estimate of $1.03 by 12.6%. Revenues rose 16.2% to $1.22 billion from $1.05 billion in the fourth quarter of 2005. For the entire year, profits experienced a 45% jump to $1.35 billion, compared to $931 million in 2005. Revenues came in at $4.8 billion from $4.37 billion last year. ACL increased revenues, expanded gross margins and grew profits for the past four years. Chairman, President and CEO Cary Rayment stated, “I am extremely pleased at how well our entire organization executed our strategic and operating plans in 2006. That we once again grew faster than the overall eye care market confirms the strategic value of our focus on eye care on a global scale. We continued to gain market share broadly across our product lines and geographies and also to build demand for advanced eye care products in emerging markets like China, India and Russia.” Looking ahead, ACL expects 2007 earnings per share growth between 17% and 19% to between $5.10 and $5.20. Analysts adjusted their profit forecasts in response, sending the consensus earnings estimate up 21 cents to $5.15. All 11 analysts upped their projections. Estimates for next year jumped 24 cents to $5.88, and represent upward revisions by six of the 11 covering analysts. Earnings per share are projected to grow 14.7% over the next 3-5 years. ACL’s Board of Directors will propose to shareholders a dividend of 2.50 Swiss francs per share and will be voted on at the shareholder Annual General Meeting on May 9, 2007 in Zug, Switzerland. The company is currently yielding 1.1% and has a five-year average dividend yield of 0.60%. On Feb 7, the Board authorized the expansion of its share repurchase program to allow for the buyback of up to an additional five million shares of its outstanding common stock. ACL’s return on equity dwarfs that of the industry average—48% compared to 9%. ACL 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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CLAY - Clayton Holdings, Inc - This marked the third consecutive quarter in which the company posted a 20% positive earnings surprise

The company reported a excellent fourth-quarter results. CLAY came in with 24 cents per share in earnings, four cents ahead of the consensus estimate. This marked the third consecutive quarter in which the company posted a 20% positive earnings surprise. As a result, this year's earnings estimates have jumped 15 cents to $1.03 per share over the past month. Full Analysis Clayton Holdings, Inc. (CLAY), through its subsidiaries, provides a suite of outsourced services, mortgage-related analytics, and specialized consulting services for buyers and sellers of, and investors in, mortgage-related loans and securities and other debt instruments. Its services include transaction management services, which consist of due diligence, mortgage processing services for buyers of mortgage loans, professional staffing, and compliance products and services; credit risk management and surveillance services; and specialized loan servicing services. The company reported a excellent fourth-quarter results. CLAY came in with 24 cents per share in earnings, four cents ahead of the consensus estimate. This marked the third consecutive quarter in which the company posted a 20% positive earnings surprise. As a result, this year's earnings estimates have jumped 15 cents to $1.03 per share over the past month. "2006, our first year as a public company, ended on a strong note," said Frank Filipps, Chairman and Chief Executive Officer of Clayton. "For the quarter and the full year, Clayton registered significant growth in revenues and profits and improvement in margins; this in a year when total originations declined by 14% and MBS issuance declined by 4%. Driving this performance were our ongoing efforts to migrate due diligence business to our centralized underwriting platform, accompanied by tighter operational and expense controls. Our results also benefited from the excellent growth in our non-due diligence businesses - surveillance, conduit, staffing, special servicing and consulting - which registered year-over-year revenue growth of 55% and accounted for 45% of fourth quarter revenues." Gross margin improved to 40.0% in the fourth quarter of 2006, as compared to 37.4% in the third quarter of 2006. This was the result of a positive shift in Clayton's mix of business, increased use of centralized underwriting services and improved productivity during the quarter. Cash flow from operations for the fourth quarter of 2006 was approximately $14.8 million as compared to approximately $1.4 million in the fourth quarter of 2005. 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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LII - Lennox Intl - the Board of Directors upped its quarterly cash dividend by 18%

Lennox International, Inc. (LII), which was first highlighted as a Value stock on Dec 1, is up over 17%. The company recently reported record full-year 2006 results. Consensus estimates for both this year and next are up over the past 30 days. On Dec 11, the Board of Directors upped its quarterly cash dividend by 18%. This Zacks #1 Rank stock has a price-to-book ratio of 2.9, compared to 4.2 for the market. Full Analysis Lennox International, Inc. and subsidiaries engage in the design, manufacture and marketing of climate control solutions for the heating, ventilation, air conditioning and refrigeration markets. The company serves distributors, installing dealers, homeowners, national accounts and original equipment manufacturers. LII, which was first presented as a Value pick on Dec 1, continues to trade at a discounted valuation. More importantly, the company is still a Zacks #1 Rank stock and is up over 20% since its debut. On Feb 8, LII reported fourth-quarter profits of 46 cents per share. The result beat analysts’ expectations by a penny and was flat on a year-over-year basis. Revenues slipped to $862.4 million from $870.6 million in the prior-year period. LII cited relatively warm winter and declines in new home construction as factors hindering demand. On a much brighter note, for the entire year, profits jumped to $166 million from $150.7 million in 2005. Revenues came in at $3.67 billion, compared to $3.37 billion last year. Both figures represented new records for the company. CEO Bob Schjerven stated, “Despite a year of numerous challenges, Lennox International achieved record sales and profitability in 2006. We successfully managed commodity price increases, the transition to a new 13 SEER energy efficiency standard for residential air conditioning, a downturn in housing starts and unfavorable heating season weather to chart the best financial performance in our 112-year history.” The consensus estimate for this year currently sits at $2.57 and marks a 13.2% improvement over the past 30 days. Both of the covering analysts upped their estimates. Profit forecasts for next year have risen by an even larger margin—14.5% to $2.93 over the same period of time. One of the two covering analysts submitted an upward revision. On Dec 11, the Board of Directors upped its quarterly cash dividend by 18% to 13 cents per share from 11 cents. The company has a current dividend yield of 1.5%. LII 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 11.7x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.3x current fiscal-year estimated earnings and at 14.0x next fiscal-year estimated earnings. LII has a price-to-book ratio of 2.9, compared to 4.2 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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CHE - Chemed Corp - Analysts responded to bullish guidance by adjusting their estimates for this year and next

Chemed Corporation (CHE), a Zacks #1 Rank stock, beat the Street’s earnings estimate in 10 out of the past 12 quarters by an average margin of 11.2%. Analysts have been upping their profit forecasts for both this year and next. Earnings per share are expected to grow 16% over the next 3-5 years. CHE has a current dividend yield of 0.52% and its return on equity tops that of the industry average—14% compared to 11%. Full Analysis Chemed Corporation operates in two divisions: Vitas and Roto-Rooter. The company’s Vitas division focuses on noncurative hospice care for terminally ill patients. This division provides direct medical services and counseling to patients and their families through its team of doctors, nurses, home health aids, social workers, clergy and volunteers. CHE’s Roto-Rooter division offers plumbing and drain cleaning services through company-owned branches, independent contractors and franchisees. CHE exceeded analysts’ earnings expectations in 10 out of the past 12 quarters by an average margin of 11.2%. In six out of the aforementioned 10 quarters the company surprised by a double-digit percentage. On Feb 20, CHE posted fourth-quarter earnings per share of 71 cents, easily surpassing the Street’s estimate of 57 cents by an impressive 24.6%. Compared to profits of 61 cents per share in the prior-year period, the result amounted to a 16.4% year-over-year improvement. Revenues jumped 10.7% to $271.9 million from $245.7 million in the year-ago period. For the entire year, profits came in at $50.7 million, versus $35.8 million in 2005. Revenues increased 11.4% to $1.02 billion from $916 million last year. CHE increased revenues and grew profits for the past three years. Looking ahead, CHE projects 2007 earnings per share between $2.45 and $2.60. Analysts responded to the company’s bullish guidance by adjusting their earnings estimates for both this year and next. The consensus estimate for 2007 currently sits at $2.43 and represents a 6.1% increase over the past 30 days. Seven of the eight covering analysts upped their estimates. Profit forecasts for next year have risen 8.7% to $2.74 over the same period of time. Four of the six covering analysts submitted upward revisions. Earnings per share are expected to grow 16% over the next 3-5 years. On Feb 16, the Board of Directors declared a quarterly cash dividend of six cents per share. CHE has a current dividend yield of 0.52% and a five-year average dividend yield of 0.91%. The company’s return on equity tops that of the industry average—14% 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

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PDGI - PharmaNet Development Group, Inc - expects earnings per share from continuing operations to rise up to 30% in 2007

Earnings estimates have been on the upswing for the company, especially over the past month. During that time frame, this year's estimates have jumped 17 cents to $1.12 per share. The numbers for the quarter ending in March have risen a dime to 27 cents per share. The stock is attractively valued at 21.2x this year's estimates, below it's projected growth rate of 27%. Full Analysis PharmaNet Development Group, Inc. (PDGI), a drug development services company, provides a range of early and late stage clinical drug development services to branded pharmaceutical, biotechnology, generic drug, and medical device companies. The company operates in two segments: Early Stage Clinical Development and Late Stage Clinical Development. The Early Stage Clinical Development segment provides Phase I clinical trial facilities, bioanalytical laboratories, and clinical laboratories services. The Late Stage Clinical Development segment provides late Phase II through Phase IV services, including data management and biostatistics, clinical laboratory services, medical and scientific affairs, regulatory affairs and submissions, and clinical information technology services. PDGI said last Thursday it expects earnings per share from continuing operations to rise up to 30% in 2007. The company forecast adjusted earnings per share from continuing operations from $1.06 to $1.21, or 93 cents to $1.08 including one-time items, and direct revenue of $334 million to $339 million. The company booked 2006 adjusted earnings per share from continuing operations of 94 cents on direct revenue of $302.4 million. The stock shot up $3.89, or 19.1%, to close at $24.21 on the Nasdaq Stock Market on more than six times their average volume. "The fourth quarter and full year 2006 financial results demonstrate the determination and commitment of the entire management team and all PharmaNet Development Group employees to make continued progress while overcoming the significant challenges of 2006," commented Jeffrey P. McMullen, president and chief executive officer. Earnings estimates have been on the upswing for the company, especially over the past month. During that time frame, this year's estimates have jumped 17 cents to $1.12 per share. The numbers for the quarter ending in March have risen a dime to 27 cents per share. The stock is attractively valued at 21.2x this year's estimates, below it's projected growth rate of 27%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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