GLBL - Global Industries, Ltd - beat analysts' expectations of 36 cents by 30.6%

Global Industries, Ltd. (GLBL) beat the Street�s earnings estimate for the past four quarters by an average margin of 61.0%. Analysts have been upping their profit forecasts for this Zacks #1 Rank stock. The company has a price-to-book ratio of 2.8, compared to 4.2 for the market and 3.1 for the industry. Its PEG currently resides at 0.64. Full Analysis Global Industries, Ltd. provides offshore construction, engineering and support services including pipeline construction, platform installation and removal, and diving services to the oil and gas industry in the Gulf of Mexico, West Africa, Asia Pacific, Middle East/India, South America and Mexico's Bay of Campeche. GLBL has 24 construction barges, 22 liftboats, 17 dive support vessels and 15 marine support vessels. GLBL topped the Street's earnings estimate for the past four quarters by an average margin of 61.0%. In three out of the four quarters the company surprised by a double-digit percentage. A triple-digit percentage was posted in the remaining quarter. On Feb 28, GLBL reported fourth-quarter profits of $54.9 million, or 47 cents per share, compared to profits of $10.1 million, or nine cents per share, for the same period last year. In addition to achieving such a huge year-over-year gain, the result beat analysts' expectations of 36 cents by 30.6%. Revenues ballooned 74.8% to $304.1 million from $174 million a year ago. For the entire year, profits soared to $199.7 million, or $1.70 per share, versus $34.8 million, or 30 cents per share, in 2005. Revenues ballooned to $1.23 billion from $688.6 million last year. CEO B.K. Chin stated, "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." Consensus estimates for this quarter and next are up 20.7% and 38.5%, respectively, over the past 30 days. Profit forecasts for this year and next have risen 15.1% and 3.1%, respectively, over the same period of time. Earnings per share are projected to grow 20% over the next 3-5 years. GLBL is currently trading at a valuation of 12.7x 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 15.8x current fiscal-year estimated earnings and at 14.4x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.8, compared to 4.2 for the market and 3.1 for the industry in which it participates. Its PEG currently resides at 0.64. The company's return on equity of 31% betters the industry average of 26%. 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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BDX - Becton, Dickinson and Co - increased revenues and expanded gross margins for the past nine years

Becton, Dickinson and Company (BDX), first highlighted as a Growth and Income pick on Aug 18, is up over 10%. The company topped the Street�s earnings estimate for 15 consecutive quarters. Consensus estimates for this year and next are up over the past two months. On Nov 21, the Board of Directors upped its quarterly cash dividend by 14% to 24.5 cents per share. BDX has a current dividend yield of 1.3% and a five-year average dividend yield of 1.2%. Full Analysis Becton, Dickinson and Company engages in the manufacture and sale of a broad range of medical supplies, devices, laboratory equipment and diagnostic products worldwide. BDX serves healthcare institutions, life science researchers, clinical laboratories, industry and the general public. When BDX was first presented as a Growth and Income pick on Aug 18, the company had exceeded analysts earnings expectations for 13 consecutive quarters. In the two quarters that have since elapsed, BDX added two more positive earnings surprises to its string of beating the Street. Furthermore, the company is up over 10% since its debut. On Jan 25, BDX reported first-quarter fiscal 2007 earnings per share of 96 cents, beating the consensus estimate by four cents and topping profits of 83 cents per share in the prior-year period by 15.7%. Revenues jumped 7.9% to $1.5 billion from $1.39 billion in the same period last year. The company cited higher sales of safety-engineered devices and prefillable drug delivery products as fueling its solid quarterly results. Chairman, President and CEO Edward J. Ludwig stated, "We are pleased with our strong start to fiscal 2007. Higher margin products and increased operating effectiveness continued to expand our operating profit margin. This performance has enabled us to increase the pace of our R&D spending while delivering double-digit earnings growth." BDX increased revenues and expanded gross margins for the past nine years. The company grew profits for the past two. Consensus earnings estimates for this year currently reside at $3.75 and represent a four-cent improvement over the past 60 days. Profit forecasts for next year are up three cents to $4.19 over the past two months. Earnings per share are projected to grow 12.9% over the next 3-5 years. On Nov 21, the Board of Directors upped its quarterly cash dividend by 14% to 24.5 cents per share from 21.5 cents. BDX has a current dividend yield of 1.3% and a five-year average dividend yield of 1.2%. The company�s return on equity nearly doubles that of the industry average--23% compared to 12%. BDX 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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KSU - Kansas City Southern - Three analysts have raised their estimates for this year

The company has dramatically exceeded earnings estimates in each of the past four quarters. The average surprise has been over 30%. Three analysts have raised their estimates for this year. Over the past 60 days, this year's estimates have increased 20 cents to $1.40 per share. Analysts expect the company to earn $1.80 per share next year. Full Analysis Kansas City Southern (KSU), through its various subsidiaries and alliances, provides rail transportation services over a network of more than 25,000 route miles across the U.S., Canada, and Mexico. The company's principal subsidiary is wholly owned Kansas City Southern Railway Company (KCSR). KCSR serves a ten-state region in the Midwest and southern parts of the U.S. and has the shortest north/south rail route between Kansas City, Missouri and several key ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas. KSU owns all of the stock of Kansas City Southern de Mexico, S.A. de C.V. (KCSM). KCSM operates a primary commercial corridor of the Mexican railroad system and serves most of Mexico's principal industrial cities and three of its major shipping ports. Zacks Equity Research Analyst Ann Hefron, CFA sees the potential for additional improvement in the operating margin on the back of rising freight volumes, higher fuel surcharges (fuel surchage coverage is roughly 88%), and continued strength in pricing, driven by tight rail and trucking capacity. Other efforts that should lead to improved margins include upgrading the locomotive fleet to newer more fuel-efficient locomotives, improved fuel utilization, and continued integration of operations and shared services that will lead to cost take-outs. Moreover, the new business pipeline continues solid, with significant strength in agriculture, chemical, coal and intermodal. Earnings are also expected to benefit further from a reduction in the corporate tax rate in Mexico and the refinancing of $618 million of high yield debt, which will save roughly $15 million in annual interest costs. The company has dramatically exceeded earnings estimates in each of the past four quarters. The average surprise has been over 30%. Three analysts have raised their estimates for this year. Over the past 60 days, this year's estimates have increased 20 cents to $1.40 per share. Analysts expect the company to earn $1.80 per share next year. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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ORH - Odyssey Re Holdings Corp - beat the Street’s estimate for four straight quarters by an average of 36.6%

Odyssey Re Holdings Corp. (ORH) exceeded analysts’ earnings expectations for four straight quarters by an average margin of 36.6%. The Board of Directors recently increased the company’s quarterly cash dividend by 100% to 6.25 cents per common share. This Zacks #1 Rank stock has a price-to-book ratio of only 1.3, compared to 4.2 for the market. Full Analysis Odyssey Re Holdings Corp. is a leading worldwide underwriter of property and casualty treaty and facultative reinsurance, as well as specialty insurance. The company underwrites through offices in the United States, London, Paris, Singapore, Toronto and Latin America. The past year has been a solid one for ORH when it comes to exceeding analysts’ earnings expectations. The company beat the Street’s estimate for four straight quarters by an average margin of 36.6%. In three out of the four quarters ORH surprised by a double-digit percentage. On Feb 22, ORH posted fourth-quarter profits of 91 cents per share. With analysts expecting 78 cents, the company beat estimates by 16.7%. ORH reported a loss of $1.06 per share in the prior-year period. Total revenues rose to $654.6 million from $599.9 million in the fourth quarter of last year. For the entire year, profits came in at $499.6 million, or $6.93 per share, compared with a prior-year loss of $117.7 million, or $1.81 per share. Total revenues jumped 13.3% to $2.9 billion from $2.56 billion in 2005. The company’s combined ratio for the year, a measure of profitability for insurance companies, was 94.4% compared to 117.6% for 2005. It was ORH’s best underwriting performance since it became a public company. 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. President and CEO Andrew A. Barnard stated, “OdysseyRe attained numerous milestones in 2006. Our full year net income of $500 million is our highest ever, as is our return on common equity of 28.3%. Looking forward, our diversified portfolio and global reach, coupled with our proven underwriting and investment expertise, position us well for the challenges of an uncertain market.” The consensus earnings estimate for this year currently resides at $3.25. This equates to a 12-cent increase over the past two months. On Feb 22, the Board of Directors boosted its quarterly cash dividend by 100% to 6.25 cents per common share from 3.125 cents. The dividend is payable on Mar 30 to shareholders of record as of Mar 16. ORH has a current dividend yield of 0.64%. ORH is currently trading at a valuation of 12.1x 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 15.5x current fiscal-year estimated earnings and at 14.2x next fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.3, 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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DIS - The Walt Disney Co - result surpassed analysts’ expectations by 23.1%

The Walt Disney Company (DIS), a Zacks #1 Rank stock, topped the consensus earnings estimate for 15 straight quarters. The company recently announced two major resort expansions to Walt Disney World and will double the size of its cruise business. Analysts have been upping their profit forecasts for both this year and next. The Board of Directors boosted its annual dividend by 14.8% in late-November. DIS has a current dividend yield of 0.90%. Full Analysis The Walt Disney Company, through its subsidiaries, operates as a diversified entertainment company worldwide. DIS operates in four segments: Media Networks, Parks and Resorts, Studio Entertainment and Consumer Products. When it comes to beating the Street’s earnings estimate, DIS rarely disappoints. The company topped the consensus estimate for 15 straight quarters. Furthermore, when DIS surprises to the upside, it usually does so by a large margin, including double-digit surprises on 10 occasions. On Feb 7, DIS posted first-quarter fiscal 2007 profits of 48 cents per share. The result surpassed analysts’ expectations of 39 cents by 23.1% and earnings in the prior-year period by 37.1%. Revenues jumped 9.8% to $9.725 billion from $8.854 billion in the same period last year. The impressive quarter was fueled by DIS’s studio entertainment division, where revenues increased 29% to $2.6 billion and operating income more than quadrupled to $604 million. President and CEO Bob Iger stated, “I am very pleased to report such strong quarterly earnings to kick off 2007. These results are particularly gratifying given the great year we had in 2006 and are another clear sign our strategy is driving growth and creating shareholder value.” During the first quarter, DIS repurchased 29 million shares for a total cost of $957 million. As of Dec 30, 2006, the company was still authorized to buy back approximately 177 million additional shares. In addition to returning shareholder value through share buybacks, DIS declared an annual cash dividend of 31 cents per share in late-November. This amounted to a 14.8% increase over the prior year's dividend. The company has a current dividend yield of 0.90% and a five-year average dividend yield of 1.0%. On Mar 1, DIS announced two major resort expansions to Walt Disney World. The first will be a 900-acre golf community with an as yet undetermined-sized Four Seasons hotel. Work on the luxury resort could begin this year, and the hotel is projected to open in 2010. The second project is targeted to the value- and mid-priced market and will include a mix of 4,000 to 5,000 non-Disney branded time share and low- to mid-rise hotel units. Shops, restaurants, entertainment venues and clubs will also be developed. Other expansion can be found in its cruise business, with DIS doubling its size by adding two ships, scheduled to launch in 2011 and 2012. The ships will each be two decks taller than the two existing Disney cruise ships, Disney Magic and Disney Wonder. Consensus earnings estimates for both this year and next experienced seven-cent jumps to $1.79 and $2.00, respectively, over the past 60 days. Earnings per share are expected to grow by 11.7% over the next 3-5 years. The company’s return on equity doubles that of the industry average—12% compared to 6%. 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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ALGT - Allegiant Travel Co - Over the past 60 days, this year's estimates have increased 11.2%

The company doesn't have much of an earnings history as a public company, but earnings estimates have been heading significantly higher. Over the past 60 days, this year's estimates have increased 14 cents to $1.39 per share. Next year's numbers have jumped 29 cents to $1.77 per share. The stock is attractively priced at 18.6x next year's estimates, below the long-term growth rate of 20.63%. Full Analysis Allegiant Travel Company (ALGT), a leisure travel company, provides scheduled passenger services from small cities to leisure destinations of Las Vegas, Nevada and Orlando, Florida. It offers air travel on a stand alone basis or bundled with hotel rooms, rental cars, and other travel-related services. The company also provides charter services under long-term contracts, as well as on a seasonal and ad-hoc basis. It markets scheduled service products through direct advertising and offers charter services directly or via brokers. Allegiant reported in early-March that passengers grew 44.9% in February over the same period last year. Revenue passenger miles grew 25.9%, while available seat miles rose 24.9%. The company reported fourth-quarter profits that more than doubled analyst expectations. Earnings per share of 28 cents were 154% higher than analyst views of 11 cents. Revenues grew 83.7% to $243 million. "Our excellent fourth quarter operating results added to our already strong performance through September 2006," said Maurice J. Gallagher, Chairman, CEO and President of Allegiant Travel Company. "Through our continued focus on 'being different' our team members have produced results of which we all can be proud. Customer response to our leisure service offerings continues to be encouraging, including to our new 'world-class leisure destination' of Tampa Bay/St. Petersburg." Gallagher continued, "We are very pleased with our 11.7% operating margin in the fourth quarter. Our December initial public offering substantially improved our balance sheet, making it one of the best in the industry. In particular, 2006 year-end cash and short-term investments were a substantial $136 million. We believe we have built a strong base from which to face the future." The company doesn't have much of an earnings history as a public company, but earnings estimates have been heading significantly higher. Over the past 60 days, this year's estimates have increased 14 cents to $1.39 per share. Next year's numbers have jumped 29 cents to $1.77 per share. The stock is attractively priced at 18.6x next year's estimates, below the long-term growth rate of 20.63%. 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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CE - Celanese Corp - ROE of 92.9%, well above the industry average of 17.4%

Celanese Corporation (CE), a Zacks #1 Rank Stock, has beat analyst expectations, raised guidance, and announced a debt restructuring and share buyback. These developments have allowed the stock to return over 16% for the year, well above the market averages. In addition, CE continues to trade at multiples well below both the overall market and its respective industry, despite superior profitability. Full Analysis Celanese is an integrated global producer of value-added industrial chemicals. They are the world's largest producer of acetyl products, including acetic acid, vinyl acetate monomer and polyacetals. Celanese is also a leading global producer of high-performance engineered polymers used in consumer and industrial products. Their operations are located in North America, Europe and Asia, including substantial joint ventures in China. In early February, the company reported fourth quarter EPS of 75 cents, up from 60 cents the prior year, and 18 cents above expectations. Revenues also posted above estimates, rising to $1.66 billion, up from $1.65 billion the previous period. For the full-year 2006, the company reported a 10.4% increase in revenues to $6.66 billion, while EPS rose by 41% to $2.36. As a result of improved operating margins and strong product demand, Celanese boosted its 2007 outlook. The company now expects to report EPS of $2.70 to $3.00, up from previous guidance of $2.60 to $2.90. The improved outlook assumes the closure of the pending Oxo products and derivatives divesture by the end of the first quarter. If included, the divested businesses would raise 2007 EPS guidance by 20 cents. Celanese Corp. recently announced a plan to refinance its existing debt, allowing the company to cut outstanding debt by approximately $200 million. The company will also use proceeds from its Oxo products and derivatives sale to help repurchase approximately $400 million in common stock. According to David Weidman, chairman and CEO, “The simplified capital structure will offer Celanese improved strategic and operational flexibility and is expected to be accretive to our adjusted EPS. By executing our comprehensive six-point growth strategy, we are confident that we will continue to generate significant cash flow and execute on our financial objectives.” Adding support to the latest 31.58% surprise, analysts raised the company’s 2007 earnings estimates by 12 cents. More recently, expectations were increased again by an additional six cents to $3.03. These positive revisions have helped CE return 16.8% for 2007, well above the S&P 500 decline of 1.2%. The company outperformed the market by 21.7% in 2006, the year following its IPO. CE is currently trading at 10.7x current fiscal-year estimated earnings, a substantial discount to the S&P 500 multiple of 15.4x and respective industry multiple of 14.1x. Furthermore, the company trades at 9.9x next fiscal-year estimated earnings, still under the respective market multiple of 14.0x. While trading at a discount to both the market and the industry, Celanese has a ROE of 92.9%, well above the industry average of 17.4%. 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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PH - Parker Hannifin Corp - Gross margins expanded 190 basis points - balance sheet is extremely strong

There are several positive factors impacting Parker Hannifin's business segments, including margin improvement from increased volume, strategic procurement, pricing, and lean manufacturing efforts undertaken by the company. The company's cash flow position remains healthy and its balance sheet is extremely strong, with a very low net debt/capitalization ratio (23.8%). Full Analysis Parker Hannifin Corporation (PH) operates in the industrial, mobile equipment, and aerospace markets, supplying original equipment manufacturers (OEMs) with hydraulics, fluid connectors, climate control systems, filters, and aerospace motion control systems. The firm operates in 35 states in the U.S. and 43 countries worldwide. For the FY ended June 2006, Parker Hannifin generated strong revenue of $9.39 billion, primarily through its industrial and aerospace divisions. Earlier, the company had four reportable segments: Industrial, Aerospace, Climate and Industrial Controls, and Other. There are several positive factors impacting Parker Hannifin's business segments, including margin improvement from increased volume, strategic procurement, pricing, and lean manufacturing efforts undertaken by the company. Over the past two years, the company has signed a lot of long-term agreements with its suppliers to ensure a stable supply of material, and also remains focused on improving the customer service level. The combination of these efforts drives margin improvement. Gross margins expanded 190 basis points (bps) year over year to 22.8% and operating margins grew 140 bps year over year to 13.2% in the second quarter of FY07. The company's industrial business has been the primary growth driver amid continued industrial endmarket strength and acquisitions. The company s International industrial sale continues to perform well registering a growth of 36.3% (12.1% organically) in the second quarter of FY07. Looking ahead, rising order trends provide a favorable outlook on the segment's top-line growth. The company's cash flow position remains healthy and its balance sheet is extremely strong, with a very low net debt/capitalization ratio (23.8%). Parker generated strong cash flow from operations up 11.8% year over year to $954.6 million in FY06 and $307.6 million (including pension contribution of $111.0 million) in the first half of FY07. 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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UL - Unilever PLC - stock is attractively valued at 15.2x next year's estimates

Earnings estimates have been on the rise, especially over the past month. During that time period, this year's estimates have risen 13 cents to $1.81 per share, while next year's numbers have increased 21 cents to $1.91 per share. The stock is attractively valued at 15.2x next year's estimates, slightly below the company's projected long-term growth rate of 16%. Full Analysis Unilever PLC (UL) manufactures, markets, and sells a broad portfolio of consumer products across the globe in developed, developing, and emerging markets. The Netherlands-based (Rotterdam) company operates in Europe, North America, Asia and the Pacific, Latin America, Africa, and the Middle East. Management's financial ambition is to be in the top third of its peers in terms of Total Shareholder Return. Since January 2001, Unilever has organized its businesses into two global divisions: (1) Foods and (2) Home and Personal Care (HPC). The Foods division, which accounts for 53% of revenues and 44% of operating profits (2006), operates through three business units: oil and dairy-based foods, ice cream and beverages, and culinary and frozen foods. Oil and dairy-based foods include margarine, cheese products, and cooking oils, with leading brands, such as Knorr, Hellmann's, Country Crock, Becel, and Bertolli Olive Oil. The company's premium ice cream brands are Breyers, Magnum, Ben & Jerry's, and Wall's. By focusing on selected, leading brands and reducing costs through restructured operations, the operating margin should improve through economies of scale. Approximately 140 business lines have been divested, including chemicals, canned meats, frozen fish, pregnancy testing, and professional cleaning. In addition, several acquisitions have bolstered the brand product portfolio, namely Slim Fast, Ben & Jerry's, and Bestfoods (all in 2000). Management is targeting growth opportunities in the developing and emerging markets which are witnessing a consumer spending growth rate that is faster than in developed markets. The percentage of revenue from developing and emerging markets has increased from 20% to 41% over the last 15 years. The company holds relatively high market share in many key markets like ice cream in Turkey, laundry detergent in South Africa, and soups & sauces in Indonesia. Unilever Brazil is the seventh largest operating company in that country. UL's long-term growth strategy includes introducing new products with sharper execution and favorable pricing. Recently in the U.S., the company rolled out Wishbone salad Spritzers , Lipton Pyramid tea bags, new Knorr soups and bouillons, an expanded range of Bertolli premium frozen meals, and AdeS nutritional drink. Earnings estimates have been on the rise, especially over the past month. During that time period, this year's estimates have risen 13 cents to $1.81 per share, while next year's numbers have increased 21 cents to $1.91 per share. The stock is attractively valued at 15.2x next year's estimates, slightly below the company's projected long-term growth rate of 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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BRP - Brasil Telecom Participacoes S.A. - wireless subscriber base increase of 52.6% year-over-year

Brasil Telecom Participacoes S.A. (BRP), a Zacks #1 Rank stock, reported solid fourth-quarter and full-year 2006 results in late January. The consensus earnings estimate for this year has risen over the past week. The company has a price-to-book ratio of only 0.96, compared to 4.2 for the market and 2.4 for the industry. Full Analysis Brasil Telecom Participacoes S.A. provides fixed-line telecommunications services in Brazil. The company also provides network services, including interconnection and leasing of trunk lines; data transmission services; and wireless services using global system for mobile communications technology. On Jan 30, BRP posted better-than-expected fourth-quarter results. Net revenues reached R$2,741 million (US$1,280 million), up from R$2,628 million in the previous quarter and R$2,592 million in the fourth quarter of 2005. Net income reached R$267.8 million (US$125 million), from R$64.0 million in the previous quarter and a loss of R$118.6 million in the same quarter of 2005. The wireless segment reached roughly 3.38 million subscribers, equating to a subscriber base increase of 10.7% quarter-over-quarter and 52.6% year-over-year. The broadband ADSL accesses in service increased 30% year-over-year and 5.2% quarter-over-quarter, reaching 1.32 million customers. For the entire year, BRP’s net revenues climbed 1.6% to R$10,296.7 million when compared to R$10,138.7 million last year. Net income totaled R$470.4 million, versus a loss of R$28.3 million in the previous year. The consensus earnings estimate for this year currently resides at $3.49. This marks a 24-cent improvement when compared to estimates of two months prior. It is up five cents over the past week. BRP is currently trading at a valuation of 12.5x current fiscal-year estimated earnings and at 10.4x 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 14.0x next fiscal-year estimated earnings. The company has a price-to-book ratio of only 0.96, compared to 4.2 for the market and 2.4 for the industry in which BRP participates. 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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HCC - HCC Insurance Holdings, Inc - forecasted to grow 16% while the industry is expected to grow at 11%

HCC Insurance Holdings, Inc. (HCC) exceeded analysts’ earnings expectations in 12 straight quarters, and in 15 out of the past 16. Impressive fourth-quarter and full-year results were recently released by the company. Consensus earnings estimates for both this quarter and the full year have risen over the past two months. HCC is currently yielding 1.3% and has a five-year average dividend yield of 1.0%. Full Analysis HCC Insurance Holdings, Inc. provides property and casualty, surety, group life and accident and health insurance products. The company also offers related agency and reinsurance brokerage services. HCC operates in the United States, the United Kingdom, Spain, Ireland and Bermuda. HCC’s history of beating analysts’ earnings estimates is nearly flawless. The company exceeded the consensus estimate in 12 straight quarters, and in 15 out of the past 16. Earnings per share grew 25.7% over the past five years. On Feb 20, HCC beat the Street’s fourth-quarter estimate by two pennies with earnings per share of 76 cents. The company posted profits of 57 cents per share in the prior-year period, marking a 33.3% year-over-year improvement. Total revenues soared 33.9% to $599.1 million from $447.6 million. For the entire year, profits ballooned 79.0% to $342.3 million from $191.2 million in the prior year. Revenues were also up, advancing 26.8% to $2.08 billion, compared to $1.64 billion in 2005. The company’s combined ratio for the quarter, a measure of profitability for insurance companies, was 87.4% compared to 89.9% for the same period in 2005. For the full year, the combined ratio was 84.2% compared to 93.2% for 2005. A ratio less than 100% indicates that the company is turning an underwriting profit, while a ratio greater than 100% indicates one that is paying out more money in claims versus receiving via premiums. The consensus earnings estimate for this quarter currently sits at 75 cents and represents a two-cent increase when compared to the consensus of 60 days earlier. Profit forecasts for this year jumped 13 cents to $3.23 over the same period of time. Earnings per share are forecasted to grow 16% over the next 3-5 years. The industry is expected to grow at an 11% clip. On Mar 24, the Board of Directors declared a regular quarterly cash dividend of 10 cents per common share of stock. This dividend is payable on or about Apr 16 to shareholders of record as of Apr 2. The company is currently yielding 1.3% and has a five-year average dividend yield of 1.0%. HCC’s return on equity tops that of the industry average—18% compared to 14%. HCC 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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CBEY - Cbeyond, Inc - crushed analyst expectations in each of the past three quarters by an average margin of about 350%

Cbeyond has crushed analyst expectations in each of the past three quarters by an average margin of about 350%. Five analysts have raised their estimates for this year, while three have done so for next year. Over the past month, 2007 estimates have increased eight cents to 46 cents per share, while this quarter's numbers have jumped 50% to nine cents per share. Analysts project that the company can generate long-term earnings growth of 23%. Full Analysis Cbeyond, Inc. (CBEY), through its subsidiaries, provides managed voice over Internet protocol-based communications services to small and medium-sized businesses in Los Angeles, Atlanta, Dallas, Denver, Houston, and Chicago. Its services include local and long distance voice services, broadband Internet access, email, voicemail, Web hosting, secure backup and file sharing, fax-to-email, virtual private network, and other communications and information technology services. The company also offers mobile voice and data services via its mobile virtual network operator relationship with a nationwide wireless network provider. It offers these services primarily through its direct sales force, as well as through channel partners. The company was founded in 1999. It was formerly known as Egility Communications, Inc. and changed its name to Cbeyond Communications, Inc. in 2000. Cbeyond reported fourth-quarter earnings that blew away forecasts by 300%. Earnings per share came in at 16 cents compared to four cents projected by analysts. Revenue rose 33% to $58.9 million from $44.4 million. Cbeyond expects 2007 sales between $275 million and $280 million. Analysts estimate $276 million. "Our fourth quarter results illustrate the power of Cbeyond's business model," said Jim Geiger, chief executive officer of Cbeyond. "We executed on steadily growing customer additions, continued low monthly churn at 1.0%, and steadily increasing applications used per customer of 5.6. We were particularly pleased to maintain stable ARPU of $742, despite the typical fourth quarter seasonality factors and ongoing reductions in the government-mandated rates we charge for terminating long distance calls." "Furthermore, Chicago notched its first full quarter of positive adjusted EBITDA, and we have strong expectations for that market going forward. Not only do we now have five of our seven markets consistently generating positive adjusted EBITDA, but these markets are collectively increasing at a rapid rate." Cbeyond has crushed analyst expectations in each of the past three quarters by an average margin of about 350%. Five analysts have raised their estimates for this year, while three have done so for next year. Over the past month, 2007 estimates have increased eight cents to 46 cents per share, while this quarter's numbers have jumped 50% to nine cents per share. Analysts project that the company can generate long-term earnings growth of 23%. 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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