ASFI - Asta Funding, Inc - exceeded earnings expectations for 10 consecutive quarters by an average of 10.3%

Asta Funding, Inc. (ASFI), a Zacks #1 Rank stock, topped the Street’s earnings estimate for 10 consecutive quarters by an average margin of 10.3%. The company recently reported solid results for the first quarter. Consensus earnings estimates have been on the rise over the past seven days. ASFI has a price-to-book ratio of 2.6, compared to 4.2 for the market. Full Analysis Asta Funding, Inc. is a leading consumer receivable asset management company that specializes in the purchase, management and liquidation of performing and non-performing consumer receivables. The company generates revenues and earnings primarily through the purchase and collection of performing and non-performing consumer receivables that have typically been either charged-off by the credit grantors or not considered to be prime receivables. ASFI’s history of exceeding analysts’ earnings expectations is quite impressive, having done so for 10 consecutive quarters by an average margin of 10.3%. The company surprised to the upside by a double-digit percentage in six out of the aforementioned 10 quarters. On Feb 9, ASFI reported first-quarter fiscal 2007 earnings per share of 77 cents. With the Street calling for 70 cents per share, the company topped expectations by a solid 10.0%. Compared to earnings of 64 cents per share in the prior-year period, the result equated to a 20.3% year-over-year improvement. Revenues jumped 26.1% to $25.6 million from $20.3 million in the year-ago period. ASFI grew profits for the past eight years. CEO Gary Stern stated, “I am very pleased with our first-quarter results. We remain very satisfied with the success of our business model and hopeful about our future. Asta continues to be successful in identifying and purchasing portfolios that it believes will benefit shareholders.” On Mar 5, ASFI announced that Palisades Acquisition XVI, LLC, its indirect wholly-owned subsidiary, finalized its definitive agreement to purchase a portfolio of approximately $6.9 billion in face value receivables. Stern commented, “It is rare that an opportunity of this size and quality becomes available in the market.” Analysts have been upping their earnings estimates for ASFI. The consensus earnings estimate for this quarter and next increased by 18.0% and 17.5%, respectively, over the past seven days. Profit forecasts for this year have risen 16.5% over the same period of time. ASFI is currently trading at a valuation of 10.4x current fiscal-year estimated earnings and at 10.6x 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. The company has a price-to-book ratio of 2.6, compared to 4.2 for the market. ASFI has been more profitable than its peers. The company’s return on equity of 27% betters the industry average of 21%. 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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LMT - Lockheed Martin Corp - 13.1% positive earnings surprise

Lockheed Martin Corporation (LMT), which was last highlighted as a Growth and Income pick on Aug 1, is up 22%. LMT topped the Street’s earnings estimate in 14 out of the past 16 quarters. In late January, the company raised its 2007 earnings per share guidance. Consensus estimates for this year and next are up over the past two months. The company is currently yielding 1.4% and has a five-year average dividend yield of 1.3%. Full Analysis Lockheed Martin Corporation is the largest defense contractor in the world. The company’s customer base encompasses the U.S. government, foreign governments and other commercial buyers. LMT currently operates through five segments: Aeronautics, Electronic Systems, Space Systems, Information & Technology Services and Integrated Systems and Solutions. Since LMT was last featured as a Growth and Income pick on Aug 1, the stock is up nearly 22%. The company continues to exceed analysts’ earnings expectations and earnings estimates are still trending higher. LMT topped the Street’s earnings estimate in 14 out of the past 16 quarters. In eight out of the 14 quarters, the company surprised to the upside by a double-digit percentage. Earnings per share grew 26.3% over the past five years. On Jan 25, LMT reported fourth-quarter profits of $1.64 per share. The result amounted to a 13.1% positive earnings surprise and a 41.4% year-over-year improvement. Revenues climbed 6.0% to $10.84 billion from $10.23 billion in the prior-year period, with sales improving in most of its business segments. For the entire year, profits came in at $2.5 billion, or $5.80 per share, versus $1.8 billion, or $4.10 per share, in 2005. Revenues rose 6.5% to $39.6 billion from $37.2 billion last year. LMT increased revenues and grew profits for the past five years. Chairman, President and CEO Bob Stevens stated, “Our strategic, operational and financial performance for 2006 was solid and a tribute to our 140,000 employees and our leadership team. In 2007, we will continue to focus on our customers, shareholders and employees as we deliver on our commitments and foster a culture of innovation.” Looking ahead, LMT now expects 2007 earnings per share between $5.80 and $6.00, up from its prior guidance which called for profits between $5.60 and $5.80 per share. The consensus earnings estimate for this year currently sits $6.04, marking an 18-cent jump over the past 60 days. Profit forecasts for next year have risen nine cents to $6.56 over the same period of time. On Jan 25, the Board of Directors declared a quarterly cash dividend of 35 cents per share. The dividend is payable on Mar 30 to stockholders of record as of Mar 1. LMT is currently yielding 1.4% and has a five-year average dividend yield of 1.3%. The company’s return on equity easily surpasses that of the industry average—31% compared to 20%. LMT 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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SWIR - Sierra Wireless, Inc - Over the past 60 days, this year's numbers have jumped 22%

SWIR has shown remarkable earnings momentum over the past three quarters. During that time, the company has exceeded earnings estimates by an average of over 90%. Additionally, earnings estimates have been moving solidly higher. Over the past 60 days, this year's numbers have jumped 11 cents to 60 cents per share. Next year's estimates have risen a dime to 93 cents per share. Full Analysis Sierra Wireless, Inc. (SWIR) develops and markets wireless solutions, including data modems for portable computers (PC), embedded modules for original equipment manufacturers (OEMs), rugged vehicle-mounted modems, and mobile phones. Sierra's customers include Lenovo, Panasonic, Toshiba, Hewlett Packard, Hitachi, iPass, Ingram Micro, Cingular, Verizon, Sprint, T-Mobile, Handspring/Palm, and others. Its most popular product is the AirCard, which allows portable computers such as notebooks and personal digital assistants (PDAs) to access the Internet over existing wireless phone networks. Revenue by product segments in the fourth quarter of 2006 was: 70% from PC cards, 24% from OEM/embedded modules, 2% from mobile products, and 4% from other sources. The distribution channel, including wireless carriers, generated 46% of revenue, resellers 27%, PC OEMs 17%, and other sources represented 10%. For the fourth quarter of fiscal 2006, the company derived 54% of its revenue from the Americas, 24% from Europe, and 22% from the Asia-Pacific region. Continued global channel expansion and strong OEM design wins have established Sierra as a market leader in the wireless PC cards and modems market. The company received orders for embedded module designs from ten PC OEMs, including HP, Lenovo, Fujitsu Siemens, Panasonic, AsusTek, Dialogue, and Itronics. All cards are to be compatible with 3G wireless networks around the world. Sierra continues to diversify its business prospects on a global basis. Over 35 networks are using Sierra s AirCard products. The company now markets and sells AirCard 850/875 to Orange UK, O2 in the UK, Weiss Telecom in France, and Telefonica in Spain. In addition, Sierra is selling HSDPA AirCard to Debitel in Germany, Oi and Orange in France, O2 and Orange in the UK, Swisscom and Sunrise in Switzerland, and Telefonica in Spain. SWIR has shown remarkable earnings momentum over the past three quarters. During that time, the company has exceeded earnings estimates by an average of over 90%. Additionally, earnings estimates have been moving solidly higher. Over the past 60 days, this year's numbers have jumped 11 cents to 60 cents per share. Next year's estimates have risen a dime to 93 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

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CITP - COMSYS IT Partners, Inc - topped earnings expectations in three out of the past four quarters by an average of 50.8%

COMSYS IT Partners, Inc. (CITP) beat the consensus earnings estimate in three out of the past four quarters by an average margin of 50.8%. The company recently released solid results for both the fourth quarter and full year of 2006. Consensus earnings estimates are up over the past 30 days. This Zacks #1 Rank stock has a price-to-book ratio of 3.9 and its PEG ratio currently sits at 0.95. CITP’s return on equity of 21% tops the industry average of 13%. Full Analysis COMSYS IT Partners, Inc. is a leading information technology services company with 42 offices across the U.S. and offices in Canada and the U.K. CITP’s service offerings include contingent staff augmentation of IT professionals, permanent recruiting and placement, vendor management and project solutions including network design and management, offshore development, customized software development and maintenance, software globalization/localization translation services and implementation and upgrade services for SAS, business intelligence and various ERP packages. CITP topped analysts’ earnings expectations in three out of the past four quarters by an average margin of 50.8%. In one quarter the company surprised by a double-digit percentage and in another by a triple-digit percentage. On Feb 15, CITP exceeded analysts’ earnings estimates for the fourth quarter by a penny when it posted profits of 30 cents per share. The result marked a 130.8% year-over-year improvement when compared to earnings of 13 cents per share in the prior-year period. Revenues came in at $184.7 million, up 7.8% from $171.3 million for the fourth quarter of 2005. For the entire year, profits soared to $21.0 million from $2.1 million last year. Revenues experienced an 11.3% jump to $736.6 million, compared with $661.7 million for 2005. CEO Larry L. Enterline stated, “Overall, we are pleased with the progress we made in 2006, and believe that COMSYS is well positioned to continue taking advantage of its market opportunities.” Consensus earnings estimates for this quarter and next are each up a penny to 25 cents and 35 cents, respectively, over the past 30 days. Profit forecasts for this year are up six cents to $1.34 over the past month. Earnings per share are projected to grow 15% over the next 3-5 years. CITP is currently trading at a valuation of 14.3x current fiscal-year estimated earnings and at 13.1x 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 13.9x next fiscal-year estimated earnings. The company has a price-to-book ratio of 3.9, compared to 4.2 for the market. CITP’s PEG ratio currently sits at 0.95. The company’s return on equity, a common measure of profitability, easily surpasses that of the industry average—-21% compared to 13%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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FAF - First American Corp - topped earnings expectations in 13 of 16 quarters by an average of 15.3%

The First American Corporation (FAF), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in 13 out of the past 16 quarters by an average margin of 15.3%. Consensus estimates for both this quarter and the full year have risen over the past 30 days. The Board of Directors recently raised its cash dividend by 22% to 22 cents per share. FAF has a price-to-book ratio of 1.6, compared to 4.2 for the market. Full Analysis The First American Corporation is America's largest provider of business information. The company supplies businesses and consumers with valuable information products to support the major economic events of people's lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. FAF operates within five primary business segments: Title Insurance and Services, Specialty Insurance, Mortgage Information, Property Information and First Advantage. FAF topped analysts’ earnings expectations in 13 out of the past 16 quarters by an average margin of 15.3%. In nine out of the aforementioned 13 quarters, the company managed to surprise by a double-digit percentage. On Mar 1, FAF surprised to the upside by 26.2% when it posted fourth-quarter earnings per share of $1.06. Revenues came in at $2.16 billion, down slightly when compared to fourth-quarter 2005 revenues of $2.21 billion. Looking ahead, FAF believes there may be a continued slowdown in housing activity and an increase in defaults and foreclosures. Moreover, the company's title, tax and flood businesses may experience a slower level of growth. As a result, an emphasis will be placed on expense management. On a brighter note, many of the company's other businesses, namely default, mortgage-risk analytics and employment screening, are projected to experience a strong increase in demand for their products. Analysts’ optimism about FAF’s future prospects has been growing over the past 30 days. Earnings estimates for this quarter currently sit at 73 cents and represent a 10.6% jump over the past month. Profit forecasts for this year are also up, increasing 4.4% to $3.81 over the same period of time. Upward revisions were submitted by all three covering analysts for both this quarter and the full year. Earnings per share are projected to grow 13% over the next 3-5 years. The industry is projected to grow at an 11% clip. Management at FAF has returned value to shareholders through dividend payments. In fact, the Board of Directors recently boosted its quarterly cash dividend by 22% to 22 cents per share. The dividend is payable on Apr 16 to shareholders of record as of Mar 30. FAF has distributed a cash dividend for each of the past 98 years. FAF is currently trading at a valuation of 13.7x current fiscal-year estimated earnings and at 12.2x 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 1.6, 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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AGU - Agrium, Inc - Three of the seven covering analysts submitted upward revisions

Agrium, Inc. (AGU) exceeded analysts’ earnings expectations in eight out of the past 11 quarters by an average margin of 23.7%. Consensus earnings estimates for both this year and next have risen over the past month. The company’s return on equity betters that of the industry average—12% compared to 10%. Full Analysis Agrium, Inc. is a leading global producer and marketer of agricultural nutrients, industrial products and specialty fertilizers, and a major retail supplier of agricultural products and services in both North and South America. The company produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. When AGU beats the consensus earnings estimate it usually does by a large margin. AGU topped the Street’s earnings estimate in eight out of the past 11 quarters by an average margin of 23.7%. In five out of the eight quarters the company surprised to the upside by a double-digit percentage. On Feb 1, AGU posted fourth-quarter earnings per share of 25 cents. With analysts calling for profits of 19 cents per share, the company surprised by an impressive 31.6%. The number excludes the impact of a $95 million after-tax adjustment in the carrying cost of a Canadian phosphate facility. Revenues jumped 15.5% to $944 million from $817 million in the year-ago period. Looking ahead, President and CEO Mike Wilson stated, “Fundamentals in the agriculture and fertilizer sector are now among the strongest we have ever seen. With the acquisitions and expansions that we completed in 2006, we are well positioned to benefit from the current market conditions and strong outlook. We expect demand for all crop inputs to be very strong this spring, which will benefit our expanded Retail, Wholesale and Advanced Technologies operations in 2007.” The company’s bullish outlook prompted analysts to revise their earnings estimates upward. Profit forecasts for this year have risen 12 cents to $2.64 over the past 30 days. Three of the seven covering analysts submitted upward revisions. Estimates for next year climbed by an even greater magnitude—20 cents to $2.83 over the same period of time. Three of the seven covering analysts also upped their estimates for next year. On Dec 13, the Board of Directors declared a cash dividend of five and one half cents per common share of stock. AGU is currently yielding 0.28%. The company’s return on equity betters that of the industry average—12% compared to 10%. AGU is currently trading at a valuation of 14.9x current fiscal-year estimated earnings and at 13.9x 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 14.1x next fiscal-year estimated earnings. The company has a price-to-book ratio of 3.9, 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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TRN - Trinity Industries, Inc - topped the consensus earnings estimate in eight consecutive quarters by an average margin of 71.3%

Trinity Industries, Inc. (TRN) has beaten the consensus earnings estimate in eight consecutive quarters by an average margin of 71.3%. The company recently reported record revenues and profits for 2006. Consensus earnings estimates for this year and next are up over the past month. Earnings per share are projected to grow 20% over the next 3-5 years. Full Analysis Trinity Industries, Inc., through its subsidiaries, provides various products and services for the transportation, industrial, construction and energy sectors primarily in the United States. The company operates in five groups: Rail, Construction Products, Inland Barge, Energy Equipment, and Railcar Leasing and Management Services. TRN has topped the consensus earnings estimate in eight consecutive quarters by an average margin of 71.3%. The company surprised by a double-digit percentage in six quarters and produced a triple-digit surprise on one occasion. Fourth-quarter 2006 earnings per share at TRN amounted to 73 cents, beating the Street’s estimate by 12.3% and topping profits in the prior year by 123.2%. Revenues increased 14.9% to $835.0 million from $727.0 million in the fourth quarter of 2005. Chairman, President, and CEO Timothy R. Wallace stated, “The fourth quarter capped a strong year of revenue and earnings growth for Trinity. All of our businesses achieved higher revenues. We continue to grow a diversified portfolio of businesses and are achieving operational efficiencies in several of our businesses. Our markets remain healthy and we have positioned our businesses to take advantage of the opportunities in those markets.” For the entire year, TRN produced profits of $230.1 million, compared to $86.3 million last year. Revenues were $3.2 billion, versus $2.7 billion in 2005. Both figures were records for the company. The consensus estimate for this year currently sits at $3.16 per share. When compared to the consensus of 30 days ago, it has risen seven cents. Two of the four covering analysts upped their projections. Profit forecasts for next year call for $3.50 per share—representing a 20-cent increase over the same period of time. One analyst submitted an upward revision. Earnings per share are projected to grow 20% over the next 3-5 years, with the industry expected to grow at a 16% clip. On Mar 5, the Board of Directors declared a quarterly cash dividend of six cents per share. The dividend represents TRN’s 172nd consecutive and is payable Apr 30 to stockholders of record as of Apr 13. The company has a current dividend yield of 0.60%. TRN’s return on equity of 15% is in line with that of the industry average. TRN 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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MCO - Moody’s Corp - MCO has repurchased 84.4 million shares at a total cost of $2.9 billion

Moody’s Corporation (MCO) exceeded analysts’ earnings expectations over the past 16 quarters. Earnings per share are projected to grow 14.4% over the next 3-5 years. The company has been active in repurchasing shares and its Board of Directors recently raised its quarterly dividend by 14% to eight cents per share. MCO has a current dividend yield of 0.50% and a five-year average dividend yield of 0.40%. Full Analysis Moody’s Corporation is among the world's most respected, widely utilized sources for credit ratings, research and risk analysis. In addition to the company’s core ratings business, it publishes market-leading credit opinions, deal research and commentary, serving more than 9,000 customer accounts at some 2,400 institutions around the world. When it comes to beating the Street’s earnings estimate, MCO is one of the best. The company topped the consensus estimate for 16 consecutive quarters. In nine out of the 16 quarters, MCO surprised to the upside by a double-digit percentage. Earnings per share grew 26.2% over the past five years. On Feb 7, MCO reported fourth-quarter profits of 64 cents per share. The result amounted to a solid 10.3% positive surprise with analysts expecting 58 cents per share. Compared to earnings of 52 cents per share in the prior-year period, the result marked a 23.1% year-over-year improvement. Revenues rose 24.7% to $590.0 million from $473.2 million for the same quarter of 2005. For the entire year, profits came in at $753.9 million, compared to $560.8 million in 2005. Revenues jumped 17.9% to $2.04 billion from $1.73 billion last year. MCO increased revenues and grew profits for the past six years. Consensus estimates for both this quarter and next are up two cents over the past 60 days. Profit forecast for this year and next have risen nine cents and five cents, respectively, over the same period of time. Earnings per share are projected to grow 14.4% over the next 3-5 years. During the fourth quarter, MCO repurchased 2.3 million shares at a total cost of $149.6 million. For the full year of 2006, the company bought back 18.0 million shares at a total cost of $1.1 billion. Since becoming a public company in October 2000 and through year-end 2006, MCO has repurchased 84.4 million shares at a total cost of $2.9 billion. As of Dec 31, 2006, the company was still authorized to buy back $1.8 billion under the current $2 billion program. On Dec 13, the Board of Directors approved a 14% increase in the company's regular quarterly cash dividend to eight cents per share. MCO has a current dividend yield of 0.50% and a five-year average dividend yield of 0.40%. MCO 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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AIG - American Intl Gp, Inc - return on equity of 16% tops the industry average of 13%

American International Group, Inc. (AIG) recently announced a new dividend policy in which the company will boost its common stock dividend by approximately 20% on an annual basis. AIG is currently yielding 0.96%. The Board also authorized the repurchase up to $8 billion in common stock. Consensus estimates for both this year and next are up over the past 30 days. AIG’s return on equity of 16% tops the industry average of 13%. Full Analysis American International Group, Inc., through its subsidiaries, provides insurance and financial services in the United States and internationally. The company operates through four segments: General Insurance, Life Insurance and Retirement Services, Financial Services and Asset Management. AIG has operations in more than 130 countries and jurisdictions. On Mar 1, AIG reported fourth-quarter earnings per share of $1.47. While the result missed the Street’s estimate of $1.50, it marked a 153.4% year-over-year improvement when compared to profits of 58 cents per share in the prior-year period. Net premiums climbed 5.9% to $10.8 billion from $10.1 billion in the fourth quarter of 2005. Net premiums earned rose 7.8% to $11.1 billion. For the entire year, AIG reported a profit of $14.05 billion, or $5.36 per share, compared with $10.48 billion, or $3.99 per share in 2005. On an adjusted basis, the company reported a profit of $15.41 billion, or $5.88 per share. Net premiums written increased 7.2% to $44.9 billion while net premiums earned advanced 6.6% to $43.5 billion. The company’s combined ratio, a measure of profitability for insurance companies, for the fourth quarter improved to 91.7% from 96.2% in the fourth quarter 2005, excluding current period catastrophe-related losses and the reserve charge. For the full year, it improved to 89.1% from 93.2%. 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. The Board of Directors approved a new dividend policy in which the company, under ordinary circumstances, will boost its common stock dividend by approximately 20% on an annual basis. The new policy will become official with the common stock dividend declared in May of 2007. AIG’s currently pays a quarterly dividend of 16.5 cents per share. The company has a current dividend yield of 0.96% and a five-year average dividend yield of 0.55%. The Board also authorized the expansion of AIG's existing share repurchase program by allowing the company to repurchase up to $8 billion in common stock. AIG stated that it intends to buy back $5 billion in common stock during 2007. The consensus estimate for this year currently resides at $6.34 and represents an eight-cent increase over the past 30 days. Profit forecasts for next year jumped 26 cents to $6.93 over the same period of time. Eight analysts upped their estimates for this year while four did so for next year. AIG’s return on equity of 16% tops the industry average of 13%. AIG 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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CLUB - Town Sports Intl Holdings - boosted its fiscal 2007 earnings per share guidance

Town Sports International has been on a roll. The company has easily exceeded earnings estimates in each of the past three quarters, with the last two averaging a 50% positive surprise. Earnings estimates have climbed upwards over the past week. This year's numbers have jumped six cents to 82 cents per share, while next year's estimates have risen four cents to $1.00 per share. The stock is trading at 20x next year's estimates, in-line with its long-term growth rate. Full Analysis Town Sports International Holdings (CLUB), engages in the ownership and operation of fitness clubs in the Northeast and Mid-Atlantic regions of the United States. Its clubs offer fitness area to accommodate cardiovascular and strength-training exercises; special purpose rooms for group fitness class instruction and other exercise programs; cycling studios; massage; sports clubs for kids; locker rooms, including shower facilities, towel service, and other amenities. The company's fitness clubs also offer personal training services; fee-based programming, including programs targeted at children, members, and nonmember adult customers; and other facilities, including swimming pools, and racquet and basketball courts at certain locations. TSI Holdings operates its fitness clubs under the brand names of Boston Sports Clubs, New York Sports Clubs, Washington Sports Clubs, and Philadelphia Sports Clubs. The company boosted its fiscal 2007 earnings per share guidance Tuesday, after reporting strong fourth-quarter results in early March. Town Sports -- which went public in June -- increased its earnings per share estimates to between 79 cents and 83 cents per share when adjusted for early debt extinguishment costs on a post-tax basis. In January, the company had forecast a profit of 73 cents to 76 cents per share. The company expects annual revenue in the range of $475 million to $480 million, up 10% to 11% over 2006 revenue of $433.1 million. Robert Giardina, Chief Executive Officer of TSI, commented: "We finished our first year as a publicly traded company with accelerated sales growth and with average annual club revenue surpassing the $3.0 million mark for the first time in the company's history. We also opened the 100th New York Sports Clubs facility in early 2007, further solidifying our number-one position in the region, and have a pipeline that is set to deliver 10% club growth in 2007." Mr. Giardina continued, "With all of these achievements, plus the strong comparable-club revenue growth, ancillary revenue growth, and performance of our multi-recreational facilities in the fourth quarter, we are confident that our overall fundamentals are as sound as they have ever been." The company has easily exceeded earnings estimates in each of the past three quarters, with the last two averaging a 50% positive surprise. Earnings estimates have climbed upwards over the past week. This year's numbers have jumped six cents to 82 cents per share, while next year's estimates have risen four cents to $1.00 per share. The stock is trading at 20x next year's estimates, in-line with its long-term 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

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LDG - Longs Drug Stores Corp - exceeded earnings estimates in 12 consecutive quarters

LDG's stock has been performing extremely well. The company has exceeded earnings estimates in 12 consecutive quarters, posting robust year-over-year growth over that time period. Two analysts have raised their numbers for this fiscal year. Earnings estimates for this fiscal year have risen 15 cents per share to $2.37 over the past month. Similarly, estimates for the quarter ending July have jumped seven cents to 59 cents per share. Full Analysis Longs Drug Stores Corporation (LDG) provides retail drug and pharmacy benefit services in the United States. The company operates in two segments: Retail Drug Stores and Pharmacy Benefit Services. The Retail Drug Stores segment offers prescription drugs and general merchandise. The general merchandise includes over-the-counter medications, health and beauty products, cosmetics, photo and photo processing, convenience food and beverage items, and greeting cards, as well as housewares, automotive, and sporting goods. This segment also operates a mail order pharmacy business. In addition, it provides various health screening services, such as blood, glucose, osteoporosis, stroke, and cholesterol testing. The Pharmacy Benefit Services segment offers pharmacy benefit management services, including plan design and implementation, claims administration, formulary management, and mail order pharmacy to third party health plans and other organizations. The company's same-store-sales, or sales at stores open at least a year, rose 2.7% in February. Pharmacy same-store sales rose 3.9% while front-end comparable sales rose 1.6%. Total sales for February climbed 4.6% to $367.5 million from $351.3 million in February of 2006. The results of 23 stores spread throughout Colorado, Oregon and Washington are listed as discontinued operations. The company has announced plans to close those stores. Total sales include 486 stores. Fourth-quarter net income came in at $26.9 million, or 71 cents per share, from $35.4 million, or 93 cents per share, in the year-ago period. The latest quarter included a charge of $3.8 million related to the planned disposition of 31 stores, and the year-ago quarter included a gain of $6.6 million on the sale of its Lathrop distribution facility. Adjusted EPS was 81 cents per share, above the 74-cent consensus. Chairman, President and Chief Executive Officer Warren F. Bryant said, "We executed several complex initiatives this past year and we are pleased with the results we have achieved. We have leveraged our investments in RxAmerica and achieved significant financial growth in this business. Within the past year, we also successfully opened a new retail distribution center and accelerated our store expansion while managing through the negative impact that lower Medicare reimbursements has had on our retail drug store profitability." LDG's stock has been performing extremely well. The company has exceeded earnings estimates in 12 consecutive quarters, posting robust year-over-year growth over that time period. Two analysts have raised their numbers for this fiscal year. Earnings estimates for this fiscal year have risen 15 cents per share to $2.37 over the past month. Similarly, estimates for the quarter ending July have jumped seven cents to 59 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

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JSDA - Jones Soda - blew away earnings estimates in the quarter ending in December 2006 with a 700% positive surprise

The company blew away earnings estimates in the quarter ending in December 2006. JSDA posted a 700% positive surprise. As a result, analyst have been adjusting their forecasts upwards. Over the past 60 days, this year's estimates have risen almost 20% to 13 cents per share. Next year's estimates have also jumped 10 cents to 26 cents per share. Analysts are projecting that the company can grow its earnings 30% over the long term. Full Analysis Jones Soda (JSDA) develops, manufactures, markets, and distributes premium soda products under the Jones Soda, Jones Energy (citrus energy drink), Jones Organics (ready-to-drink organic tea), Jones Naturals (non-carbonated juice & tea), and WhoopAss (citrus energy drink) brands. The company's products are sold in 44 states in the United States and 9 provinces in Canada, primarily in convenience stores, delicatessens, sandwich shops, and selected supermarkets, as well as through a few national retail accounts. In 2005, the company derived 88% of sales in the United States, 11% in Canada and approximately 1% in other international countries. Management's business strategy is to increase sales by expanding the distribution of the company's internally developed brands in new and existing markets and by developing strong relationships with key accounts. Utilizing creative but relatively low cost marketing techniques, the company has built a network of independent distributors and a presence with national retail accounts. Through the independent distributor network, Jones Soda has focused on four core markets (the Midwest, Northwest, Southwest, and western Canada). Jones Soda officially entered the carbonated soft drink (CSD) industry with a licensing agreement with Target Corporation in 2004. Initially, 12 ounce cans of Jones Soda were sold under a two year exclusive marketing and distribution agreement. However, after two successful twos, management expanded the company s presence in the $66 billion CSD industry with a five year distribution and manufacturing agreement with National Beverage for 12 ounce cans of Jones Soda and 16 ounce cans of Jones Energy that will begin distribution in 2007. The company blew away earnings estimates in the quarter ending in December 2006. JSDA posted a 700% positive surprise. As a result, analyst have been adjusting their forecasts upwards. Over the past 60 days, this year's estimates have risen almost 20% to 13 cents per share. Next year's estimates have also jumped 10 cents to 26 cents per share. Analysts are projecting that the company can grow its earnings 30% over the long term. 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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