CBEY - Cbeyond, Inc - reported fourth-quarter earnings that blew away forecasts by 300%

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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ACAP - American Physicians Capital, Inc - has now exceeded the consensus estimate in 13 consecutive quarters

American Physicians Capital, Inc. (ACAP) exceeded analysts’ earnings expectations in 13 consecutive quarters. Consensus earnings estimates have risen over the past 60 days for this Zacks #1 Rank stock. ACAP continues to return value to shareholders through stock buybacks. The company has a price-to-book ratio of 1.7 compared to 4.4 for the market. Full Analysis American Physicians Capital, Inc., through its subsidiaries, provides medical professional liability insurance in the United States. The company is focused primarily in the Midwest, with Michigan, Illinois, Ohio, Kentucky and New Mexico serving as its core states. ACAP ranks 17th nationally among professional liability insurers, with approximately 9,600 policies in-force. When ACAP was first highlighted as a Value pick on Aug 31, 2006, its strong history of topping analysts’ earnings expectations was noted. In the two quarters that have elapsed since its debut, the company posted two more positive surprises. ACAP has now exceeded the consensus estimate in 13 consecutive quarters, including eight double-digit percentage surprises and three of the triple-digit variety. Furthermore, the company continues to trade at a discounted valuation. On Feb 14, ACAP posted fourth-quarter profits of 96 cents per share. The result surpassed the consensus estimate of 82 cents by 17.1% and marked a 43.9% year-over-year improvement. The combined ratio, a measure of profitability for insurance companies, was 83.6% for the quarter, versus 91.5% for the same period in 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. For the entire year, the combined ratio improved to 87.5%, compared to 97.5% for last year. President and CEO R. Kevin Clinton stated, "APCapital had a very successful and profitable year in 2006. Our strategic plan of focused operations and strict underwriting continues to be effective. We have produced a solid and profitable book-of-business, generating a 16.5% return on beginning shareholders' equity." Over the past 60 days, consensus estimates for this quarter and next have risen three cents and five cents to 86 cents and 88 cents, respectively. Profit forecasts for this year and next have risen 19 cents and 15 cents, respectively, over the same period of time. ACAP repurchased 190,650 shares of its common stock during the fourth quarter of 2006. For the entire year, the company bought back 1,075,350 shares. On Oct 27, 2006, the Board of Directors approved a new stock buyback plan for 2007 and authorized the repurchase of $32 million of its common shares. ACAP is currently trading at a valuation of 10.8x current fiscal-year estimated earnings and at 11.1x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x current fiscal-year estimated earnings and at 14.5x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.7 compared to 4.4 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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JPM - JPMorgan Chase & Co - declared an 11.8% boost in its quarterly cash dividend

JPMorgan Chase & Co. (JPM) topped the Street’s earnings estimate in nine consecutive quarters. The company recently released solid results for the first quarter of 2007. The Board of Directors announced an increase in its quarterly cash dividend and authorized a new $10 billion common stock repurchase program. Consensus estimates for both this year and next are up over the past week. This Zacks #1 Rank stock has a price-to-book ratio of 1.6 compared to 4.5 for the market. Full Analysis JPMorgan Chase & Co. is a leading global financial services firm with assets of $1.4 trillion and operations in more than 50 countries. The company operates through six segments: Investment Bank, Retail Financial Services, Card Services, Commercial Banking, Treasury and Securities Services and Asset Management. JPM exceeded analysts’ earnings expectations in nine straight quarters by an average margin of 8.1%. Moreover, the company surprised to the upside in 14 out of the past 16 quarters. On Apr 18, JPM announced first-quarter profits of $1.23 per share, easily surpassing the consensus estimate of $1.00 by 23.0%. The year-over-year improvement was even more impressive—39.8% when compared to earnings of 88 cents per share in the first quarter of 2006. The investment bank, asset management and commercial banking all delivered record earnings. Revenues came in at nearly $19 billion, compared to $15.2 billion in the prior-year period. Chairman and CEO Jamie Dimon stated, "We are very pleased with our record results this quarter, which reflected the strength of our broad and diversified franchise. Across all of our businesses we experienced continued growth in client volumes, including new accounts, loans, deposits and new business." The Board of Directors also made two announcements that should appeal to stockholders looking for additional value from the company. JPM declared an 11.8% boost in its quarterly cash dividend to 38 cents per share of common stock from 34 cents. It was the first time the company raised its dividend since 2001. The dividend is payable on Jul 31 to stockholders of record as of Jul 6. The company is currently yielding 2.6%. Also, management authorized a new $10 billion common stock repurchase program. The new buyback plan replaces the prior $8 billion program which had approximately $850 million of remaining authorization. Consensus estimates for this year currently reside at $4.24, marking a 15-cent improvement when compared to the consensus of a week earlier. Eight of the 15 covering analysts upped their estimates. Profit forecasts for next year have risen 12 cents to $4.62 over the same period of time. Upward revisions were submitted by seven of the 14 covering analysts. Earnings per share are projected to grow 9% over the next 3-5 years. JPM is currently trading at a valuation of 12.4x current fiscal-year estimated earnings and at 11.4x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.1x current fiscal-year estimated earnings and at 14.6x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.6 compared to 4.5 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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SCHN - Schnitzer Steel Industries, Inc - topped the Street’s earnings estimate in three out of the past four quarters by an average margin of 30.4%

Schnitzer Steel Industries, Inc. (SCHN), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in three out of the past four quarters by an average margin of 30.4%. Profits and revenues for the second quarter of fiscal 2007 were solid. Consensus earnings estimates have been on the rise over the past 30 days. The company has returned value to its shareholders through both dividend payments and share buybacks. SCHN has a price-to-book ratio of 2.0, compared to 4.5 for the market. Full Analysis Schnitzer Steel Industries, Inc. engages in recycling ferrous and nonferrous metal, and used and recycled auto parts, as well as in manufacturing finished steel products in the United States and internationally. The company, with its joint venture partners, currently processes over 4.9 million tons of recycled metals a year. SCHN’s steel mill, Cascade Steel Rolling Mills, Inc., has an annual production capacity of 700,000 tons of finished steel products. SCHN topped the Street’s earnings estimate in three out of the past four quarters by an average margin of 30.4%. In all three of the aforementioned quarters, SCHN surprised by a double-digit percentage. On Apr 9, SCHN posted second-quarter fiscal 2007 profits of 93 cents per share. The result crushed the consensus estimate of 62 cents by 50%. Compared to earnings of 68 cents per share in the prior-year period, the result marked a 36.8% year-over-year improvement. Revenues ballooned 49.9% to $604.4 million from $403.3 million in the second quarter of fiscal 2006. President and CEO John Carter stated, "We continue to be pleased with our strong operating and financial results." Looking ahead, SCHN stated that average scrap metal selling prices in the third quarter should rise to "record levels." They will average about $40 to $50 per ton higher than the second quarter. Second-quarter sales prices of ferrous recycled metal averaged $233 per long ton domestically and $238 in the export market. Analysts responded to the company’s strong forecast by upping their earnings estimates. Consensus estimates for this quarter have risen 16.3% to $1.07 over the past 30 days, while estimates for next quarter are up 8.0% to $1.22. Profit forecasts for this year experienced a 16.1% leap to $3.90 and estimates for next year jumped 6.0% to $4.07 over the same period of time. On Apr 23, the Board of Directors declared a quarterly cash dividend of 1.7 cents per common share of stock. The dividend is payable on May 21 to shareholders of record as of May 7. Furthermore, during the second quarter, SCHN repurchased 1.25 million shares of its Class A common stock at an average price of $37.20 per share. For the first half of the year, the company bought back 1.5 million shares, or approximately 5% of total shares outstanding, with 3.2 million shares still available for repurchase. SCHN is currently trading at a valuation of 12.9x current fiscal-year estimated earnings and at 12.4x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x current fiscal-year estimated earnings and at 15.0x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.0, compared to 4.5 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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DRYS - DryShips, Inc - Profit forecasts for this year are up 19.5%

Consensus earnings estimates have been on the rise for DryShips, Inc. (DRYS). In early April, the Board of Directors declared a quarterly cash dividend of 20 cents per share, its eighth consecutive quarterly cash dividend. This Zacks #1 Rank stock has a price-to-book ratio of 2.5, compared to 4.5 for the market. Its return on equity more than doubles that of the industry average—21% compared to 8%. Full Analysis DryShips, Inc. engages in the ownership and operation of drybulk carriers worldwide. The company’s fleet carries various dry bulk commodities, including coal, iron ore, grains, bauxite, phosphate, fertilizers and steel products. On Feb 28, DRYS reported fourth-quarter profits of 77 cents per share, beating the Street’s estimate by two cents. Revenues rose 28.2% to $79.1 million from $61.7 million during the prior-year period. Chairman and CEO George Economou stated, "We are delighted to report another successful year since our company's listing in February 2005. DryShips has kept its promise and has executed on its stated strategy of growing and renewing its fleet." On Apr 17, DRYS stated it will purchase three bulk carriers for $49 million each. The company’s fleet will stand at 36 after the transactions, with an average age of just 8.6 years. The age of the industry average fleet is currently 12.6 years. While the consensus earnings estimate for this quarter has remained flat over the past 30 days at 88 cents per share, estimates for next quarter have jumped 30.8% to $1.02. Profit forecasts for this year are up 19.5% to $4.41 over the past month, while estimates for next year have risen 12.7% to $4.54. Both of the covering analysts submitted upward revisions for this year and next. The Board of Directors recently declared a quarterly cash dividend of 20 cents per common share. The dividend is payable on Apr 30 to stockholders of record as of Apr 16. The payment represented the company’s eighth consecutive quarterly cash dividend. DRYS has a current dividend yield of 2.65%. DRYS is currently trading at a valuation of 6.9x current fiscal-year estimated earnings and at 6.7x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x current fiscal-year estimated earnings and at 15.0x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.5, compared to 4.5 for the market. The company’s return on equity more than doubles that of the industry average—21% compared to 8%. 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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GWW - W.W. Grainger, Inc - topped or matched the consensus estimate for 14 consecutive quarters

W.W. Grainger, Inc (GWW), after posting solid first-quarter results, raised the bottom end of its previous full-year guidance by 10 cents. Analysts responded to the company’s bullish guidance by upping their estimates. GWW’s 2007 product catalog contains an increase of 23,000 items over last year's record offering. The company has a current dividend yield of 1.4% and a five-year average dividend yield of 1.5%. Full Analysis W.W. Grainger, Inc. is a leading broad-line supplier of facilities maintenance products. The company’s customers consist of 1.8 million businesses and institutions across North America and China. GWW works with more than 1,300 suppliers to provide customers with access to more than 800,000 products. GWW exceeded analysts’ earnings expectations over the past three quarters and has topped or matched the consensus estimate for 14 consecutive quarters. Earnings per share grew 14.1% over the past five years. On Apr 16, GWW posted first-quarter earnings per share of $1.17, which amounted to a quarterly record for the company. With analysts calling for profits of $1.08 per share, GWW surprised to the upside by 8.3%. Compared to earnings of 93 cents in the first quarter of last year, the result represented a 25.8% year-over-year improvement. Revenues jumped 9.2% to $1.55 billion from $1.42 billion. Chairman and CEO Richard L. Keyser stated, "We're executing well on our strategy and our investments in growth are paying off. We continue to gain share in this fragmented industry by serving our existing customers well and leveraging our supply chain, branch network and sales resources to find and serve new customers. We expect to earn more business by helping customers get the job done." Based on GWW’s strong first-quarter results, the company raised the bottom end of its previous guidance by 10 cents. GWW now projects 2007 earnings per share to be between $4.70 and $4.85. Analysts responded to the company’s bullish guidance by upping their estimates. The consensus estimate for this year currently sits at $4.77, marking a five-cent improvement over the past seven days. Profit forecasts for next year have also risen by five cents to $5.39. Earnings per share are projected to grow 12.3% over the next 3-5 years. In early February, GWW announced the release of its 2007 product catalog, which features more than 138,000 facilities maintenance products, an increase of 23,000 items over last year's record offering. In addition to the product expansion, GWW also added new search and selection tools on grainger.com which should greatly assist its customer base. On Jan 31, the Board of Directors declared a quarterly cash dividend of 29 cents per share. The company has a current dividend yield of 1.4% and a five-year average dividend yield of 1.5%. Its return on equity almost doubles that of the industry average—17% compared 9%. GWW 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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AYI - Acuity Brands, Inc - Four analysts raised their estimates for this quarter and three did so for next quarter

Acuity Brands, Inc. (AYI), which was last highlighted as a Growth and Income pick on Nov 1, is up nearly 26%. The company recently reported record earnings per share, net income and net sales for both the second quarter and first half of fiscal 2007. Consensus estimates have risen over the past 30 days. Earnings per share are projected to grow 23% over the next 3-5 years. AYI is currently yielding 0.97%. Full Analysis Acuity Brands, Inc., through its subsidiaries, engages in the design, production and distribution of lighting equipment and specialty products worldwide. The company distributes its indoor and outdoor lighting fixtures for commercial and institutional, industrial, infrastructure and residential applications for various markets throughout North America and select international markets. Its specialty products include cleaners, deodorizers, sanitizers and pesticides. AYI, which was last presented as a Growth and Income pick on Nov 1, is up nearly 26%. The company continues to beat the Street’s earnings expectations and analysts are still raising their profit forecasts. When AYI reported second-quarter fiscal 2007 profits of 55 cents per share on Apr 4, it marked the fourth straight quarter in which the company surprised to the upside. Analysts were calling for 49 cents. Compared to earnings of 32 cents per share in the prior-year period, the result equated to an impressive 71.9% year-over-year improvement. Revenues jumped to $575.4 million from $549.6 million. Earnings per share, net income and net sales were new records for AYI. Furthermore, AYI achieved record earnings per share, net income and net sales for the first six months of fiscal year 2007. Earnings per share amounted to $1.32, versus 80 cents per share in the prior-year period. Net income soared 58.6% to $57.9 million and net sales increased 6.7% to $1.19 billion. Chairman, President and CEO Vernon J. Nagel stated, "We are very pleased with our progress in fiscal 2007. In the second quarter, we once again produced record results that exceeded our internal expectations. Our performance on a consolidated basis continues to reflect the benefits obtained from our pricing initiatives including ongoing product price reviews, new products and services, all-time high service levels and enhanced productivity in key areas of our business." Consensus estimates for this quarter and next are up five cents and two cents to 88 cents and $1.16, respectively, over the past 30 days. Four analysts raised their estimates for this quarter and three did so for next quarter. Profit forecasts for this year and next have risen 17 cents and 22 cents to $3.40 and $3.93, respectively, over the past month. Upward revisions were submitted by four analysts for this year while three analysts boosted their estimates for next year. Earnings per share are projected to grow 23% over the next 3-5 years, with the industry expected to grow by 21%. On Mar 29, the Board of Directors declared a quarterly cash dividend of 15 cents per share. AYI has a current dividend yield of 0.97%. The company’s return on equity tops that of the industry average—23% compared to 22%. AYI 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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QCOM - QUALCOMM Inc - company has now topped analysts’ expectations in 10 out of the last 12 quarters

QUALCOMM Incorporated (QCOM) topped analysts’ earnings expectations in 10 out of the last 12 quarters. Earnings per share are projected to grow 17% over the next 3-5 years. In mid March, the company raised its second-quarter profit guidance (it is scheduled to release second-quarter results today). QCOM has a current dividend yield of 1.12% and a five-year average dividend yield of 0.67%. Full Analysis QUALCOMM Incorporated engages in the design, development, manufacture and marketing of digital wireless telecommunications products and services based on its Code Division Multiple Access (CDMA) technology. On Jan 24, QCOM reported first-quarter fiscal 2007 earnings per share of 39 cents, which beat the Street’s estimate by two pennies. The company has now topped analysts’ expectations in 10 out of the last 12 quarters. Revenues increased 16.1% to $2.02 billion from $1.74 billion in the prior-year period. The company cited strong demand for wireless phones that use the company's chipsets and software as fueling the quarterly results. CEO Dr. Paul E. Jacobs stated, "Our results this quarter were driven by record 3G handset and chipset shipments. The worldwide migration to CDMA-based technologies is accelerating as we continue to execute with our partners to drive innovations into the marketplace." QCOM is set to announce its second-quarter results today. In mid March, the company raised its second-quarter profit guidance to between 48 cents and 49 cents per share on revenues between $2.1 billion and $2.2 billion. The previous outlook called for earnings per share between 42 cents and 44 cents on revenues between $2 billion and $2.1 billion. Strong worldwide demand for the company’s CDMA products prompted the revised guidance. The consensus earnings estimate for this quarter currently sits at 43 cents per share—a five-cent improvement over the past 60 days. Profit forecasts for the full year have risen seven cents to $1.62 over the same period of time. Earnings per share are projected to grow 17% over the next 3-5 years, while the industry is expected to grow by 15%. Free cash flow during the first quarter was $467 million, up 21.9% over the prior-year quarter. Also, at the end of the first quarter, QCOM had more than $10.5 billion of cash, cash equivalent and marketable securities on its balance sheet and no debt outstanding. This has enabled the company to pay a quarterly cash dividend of 14 cents per common share. The dividend is payable on Jun 29 to stockholders of record as of Jun 1. QCOM has a current dividend yield of 1.12% and a five-year average dividend yield of 0.67%. The company’s return on equity, a common measure of profitability, quadruples that of the industry average—20% compared to 5%. QCOM 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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HON - Honeywell International, Inc - topped or met expectations in 15 out of the past 16 quarters

Honeywell International, Inc. (HON) recently raised its 2007 profit and revenue guidance after it reported solid first-quarter results. Analysts responded to the company’s bullish outlook by upping their profit forecasts. On Apr 23, the Board of Directors declared a regular quarterly dividend of 25 cents per share of common stock. HON has a current dividend yield of 1.9%. Full Analysis Honeywell International, Inc. is a diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. On Apr 20, HON posted first-quarter earnings per share of 66 cents. With analysts calling for 61 cents, the company surprised to the upside by 8.2%. Even more impressive was the year-over-year improvement—29.4% when compared to earnings of 51 cents in the first quarter of 2006. HON beat the consensus earnings estimate in four out of the past five quarters and topped or met expectations in 15 out of the past 16 quarters. Revenues rose 11.1% to $8.04 billion from $7.24 billion last year. Chairman and CEO Dave Cote stated, "Honeywell had a terrific start to 2007 with strong sales, double-digit earnings growth and higher free cash flow. Our great positions in good industries and global presence helped drive organic growth in each of our businesses." Based on the company’s strong first quarter, HON raised its 2007 guidance. Revenues are now expected to come in at $33.5 billion, a $700 million-dollar upward adjustment. The company also raised its profit outlook by 15 cents to between $3.00 and $3.10 per share. Analysts responded to the company’s bullish outlook by upping their profit forecasts. The consensus estimate for this year currently sits at $3.08, a 15-cent improvement when compared to the consensus of a week earlier. All eight covering analysts submitted upward revisions. Estimates for next year have risen by eight cents to $3.40 over the past seven days. Seven analysts raised their projections. Earnings per share are expected to grow 12.6% over the next 3-5 years. On Apr 23, the Board of Directors declared a regular quarterly dividend of 25 cents per share of common stock. The dividend is payable on Jun 8 to shareholders of record as of May 18. In addition to raising its revenue and profit guidance, the company also raised its free cash flow outlook by $100 million to between $2.6 billion and 2.8 billion. This should bode well for those that continue to require additional income in the form of a dividend payment. HON has a current dividend yield of 1.9%. Also, in mid February, the Board authorized the repurchase up to an additional $3 billion of its common stock. HON’s return on equity tops that of the industry average—20% compared to 19%. HON 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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SGP - Schering-Plough Corp - 90 million possible customers

Schering Plough has engineered an excellent turnaround that shows no signs of abating. The company crushed estimates by almost 45% in its most recent quarter and raised guidance. Over the past month, this year's estimates have increased seven cents to $1.16 per share. The stock is still attractive at about 22x next year's earnings, below its long-term growth rate of 26.56%. Full Analysis Schering-Plough Corporation (SGP) is a global healthcare company that offers both prescription and over-the-counter (OTC) products. The company specializes in anti-infective, anticancer, allergy/respiratory and cardiovascular products such as Temodar (brain cancer), Clarinex (allergy relief), Nasonex (allergy relief), Remicade (anti-inflammatory) and Zetia (cholesterol inhibitor). Besides Afrin (nasal spray), its prescription drug Claritin is also available over-the-counter. Through a joint venture, Merck and Schering-Plough co-developed and now co-market the cholesterol-lowering combination drug Zocor/Zetia called Vytorin. Schering-Plough is in the process of a massive restructuring and reorganization program to cut costs and reduce its dependency on the now-OTC-available Claritin franchise. On March 12, 2007 Schering-Plough announced that plans to acquire Organon BioSciences N.V., the human and animal health care businesses of Akzo Nobel N.V., for approximately 11 billion in cash ($14.4 billion based on closing exchange rate on March 9, 2007). The transaction, which is expected to close by the end of 2007, is anticipated to be accretive to Schering-Plough's earnings per share (EPS) by about 10 cents in the first full year, excluding purchase-accounting adjustments and acquisition-related costs. Schering-Plough expects to achieve annual synergies of $500 million; it will take three years from the closing to reach this level of synergies. CEO Fred Hassan believes that Schering-Plough has now entered the next phase of the Value Enhancement Initiative (VEI) plan known as build a base . Over the course of the last year Schering-Plough has delivered positive reported revenue growth and a substantial increase in earnings. The company was able to grow the adjusted top-line (includes-Zetia/Vytorin) by 21% to $3,550 million in the first quarter. Zetia and Vytorin have enormous growth potential within the estimated $24 billion cholesterol market. In the U.S., some 90 million people could benefit from some statin therapy. Unfortunately, only about half of these patients are diagnosed and only about half of those diagnosed receive pharmaceutical treatment. Furthermore, of those patients on existing therapies like statins, only about half meet the new NIH goal of LDL below 70mg/dL. This is where Zetia has soared. Zetia offers strong efficacy in lowering bad cholesterol when used in combination with other statin drugs. As such, Zetia's future lies in the combination pill Zocor/Zetia, now called Vytorin. April 19, 2007: Schering-Plough reported financial results for the first quarter in 2007. The company reported total revenues of $2,975 million, up 17% over the same period in 2006. On an adjusted basis to include 50% of the cholesterol joint venture sales, total revenues were $3,555 million, up 21% over the same period in 2006. This was the tenth quarter in a row the company has reported double-digit adjusted revenue growth. Net income totaled $543 million in the quarter, an increase of 66% over the first quarter in 2006. Earnings per share was $0.36. 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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TIE - Titanium Metals Corp - operating income increased 74%

Titanium Metals is enjoying strong demand for its products and is focused on investment in expansion of its productive capacity. The stock is only covered by one analyst, but earnings estimates have jumped. Over the past 60 days, this year's estimates have risen 13 cents to $1.65 per share. The stock is attractive at 17.9x next year's estimates, below its projected growth rate of 25%. Full Analysis Titanium Metals Corporation (TIE), together with its subsidiaries, produces titanium melted and mill products for commercial aerospace, military, industrial, and other applications worldwide. It offers titanium sponge, which is the basic form of titanium metal used in titanium products; and melted products, such as ingot, electrodes, and slab that are the result of melting sponge and titanium scrap either alone or with various alloys. The company also provides mill products that are forged and rolled from ingot or slab products, including billets, bars, plates, sheets and strips, and pipes; and fabrications, which comprise spools, pipe fittings, manifolds, and vessels that are cut, formed, welded, and assembled from titanium mill products. Titanium Metals Corporation sells its products directly in the United States and Europe, as well as through independent agents and distributors worldwide. Demand for the company's products are strong as evidenced by the decision to expand production. TIE said it plans to expand production of titanium sponge, the porous metal used in manufacturing titanium alloys, to meet strong demand for its metals products. The company plans to build a new factory with capacity for 10,000 to 20,000 metric tons of titanium sponge, with room for future expansion. Titanium Metals reported operating income of $109.5 million for the quarter ended December 31, 2006 compared to $63.0 million for the quarter ended December 31, 2005, an increase of 74%. The increase in operating income results primarily from increases in average selling prices and sales volume, partially offset by increases in raw material costs. Steven L. Watson, Vice Chairman and Chief Executive Officer, said, "TIMET maintained strong sales volumes and operating margins during the fourth quarter of 2006. We achieved operating income margins of approximately 34% for the fourth quarter and 32% for the full year 2006, despite continued volatility in certain raw material and energy costs. We remain focused on investment in expansion of our productive capacity across all areas of our manufacturing operations to position ourselves to capitalize on the positive outlook for growth in key market segments." Titanium Metals is enjoying strong demand for its products and is focused on investment in expansion of its productive capacity. The stock is only covered by one analyst, but earnings estimates have jumped. Over the past 60 days, this year's estimates have risen 13 cents to $1.65 per share. The stock is attractive at 17.9x next year's estimates, below its projected 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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USM - United States Cellular Corp - board of directors has authorized the company to buy back up to 500,000 shares

USM's earnings estimates have been on the rise, especially for next year. 2008 estimates have increaed 50 cents to $2.89 per share over the past 60 days, and 16 cents alone in the past week. Two analysts have raised their estimates for next over the past 90 days. The company sports a relatively low debt/equity percentage of 27%. Full Analysis United States Cellular Corporation (USM), or U.S. Cellular (USM), is the sixth largest wireless telecom operator in the U.S., with approximately 5.8 million customers. Based in Chicago, USM provides wireless service coverage in select Midwest markets, including Chicago, Milwaukee, Madison, Des Moines, Cedar Rapids, Tulsa, and Knoxville. The company is the largest subsidiary of Telephone and Data Systems (TDS), a diversified telecom service provider. In 2002, USM purchased the metropolitan Chicago wireless assets from PCS PrimeCo. The company's current network reaches approximately 15% of the geographic area and 12% of the U.S. population. In order to drive growth, the company has been acquiring select wireless licenses in areas adjacent to its established coverage regions. This will enable the company to build contiguous operating market areas which, in turn, would provide more in-network roaming capabilities for its customers and prospects. Subscriber growth has been steady as the company added 297,000 net new retail subscribers in 2006. Although the competitive environment has intensified following the federally mandated implementation of wireless number portability (in November 2003 for the major metropolitan areas and May 2004 for smaller cities), U.S. Cellular's high customer service standards have helped keep churn (customer switching) rates low. In the most recent quarter, the company's overall churn rate was 1.6%, which is below the industry average. The company also plans to introduce a limited trial of Evolution Data Optimized ( EV-DO ) technology. This advancement will increase the throughput of data transmissions on its network comparable to offerings by other nationwide cellular carriers. U.S. Cellular has successfully upgraded its network from the older cellular protocol equipment to the newer code division multiple access CDMA technology. On March 6, USM announced that the board of directors has authorized the company to buy back up to 500,000 shares from time to time through open-market purchases, block transactions or other methods. This authorization will expire on March 6, 2010. This authorization is in addition to U.S. Cellular's existing share repurchase plan which authorizes the company to repurchase approximately 170,000 shares in each fiscal quarter. There is no expiration date for this program. 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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