MLAN - The Midland Co - Board of Directors boosted the company’s annual dividend by 63.3% - Upward revisions were submitted by two analysts

The Midland Company (MLAN), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for 10 straight quarters and in 14 out of the past 15. After reporting impressive first-quarter results, MLAN upped its full-year profit guidance to between $3.35 and $3.65 per share. In late January, the Board of Directors boosted the company’s annual dividend by 63.3% to 40 cents per share. MLAN has a price-to-book ratio of 1.4, compared to 4.5 for the market. Full Analysis The Midland Company, through its subsidiaries, provides specialty insurance products and services in the United States. The company operates in four segments: Residential Property, Recreational Casualty, Financial Institutions and Other Insurance Products. MLAN also owns a niche transportation business, M/G Transport Group, which operates a fleet of dry cargo barges for the movement of dry bulk commodities on the inland waterways. MLAN has quite an impressive history when it comes to exceeding analysts’ earnings expectations. The company topped the Street’s estimate for 10 straight quarters and in 14 out of the past 15. MLAN managed to surprise to the upside by a double-digit percentage four times and by a triple-digit percentage on three occasions. On Apr 19, MLAN posted first-quarter profits of $1.11 per share, marking a four-cent year-over-year improvement. With analysts calling for 92 cents per share, the result equated to a positive surprise of 20.7%. Revenues came in at $210 million, compared to $186.9 million in the first quarter of last year. Property and casualty gross written premiums advanced 17.3% to $205.4 million. President and CEO John W. Hayden stated, "We are delighted to report record results for the first quarter of 2007 and sustain the outstanding momentum we have built over the last several years. This marks the fifth consecutive year we have produced record first-quarter results." In addition to reporting impressive first-quarter results, MLAN upped its full-year profit guidance. The company now expects earnings per share between $3.35 and $3.65. Analysts responded to MLAN’s bullish outlook by adjusting their estimates upward. The consensus estimate for this year has risen 17 cents to $3.55 per share over the past 30 days, with all four covering analysts raising their estimates. Profit forecasts for next year jumped nine cents to $3.45 over the same period of time. Upward revisions were submitted by two of the four covering analysts. On Jan 25, the Board of Directors boosted the company’s annual dividend by 63.3% to 40 cents per share from 24.5 cents. MLAN has a current dividend yield of 0.94% and a five-year average dividend yield of 0.75%. MLAN is currently trading at a valuation of 12.0x current fiscal-year estimated earnings and at 12.3x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.2x current fiscal-year estimated earnings and at 15.1x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.4, 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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BDG - Bandag, Inc - first-quarter profits of 75 cents per share, easily surpassing the consensus estimate of 39 cents by 92.3%

Bandag, Inc. (BDG) exceeded analysts’ earnings expectations in four straight quarters, most recently by 92.3% in the first quarter. On May 8, the Board of Directors declared a quarterly cash dividend of 34 cents per common share of stock. Consensus earnings estimates for both this year and next have risen over the past seven days. This Zacks #1 Rank stock has a price-to-book ratio of 1.7 compared to 4.5 for the market and 2.0 for the industry average. Full Analysis Bandag, Inc., through its subsidiaries, engages in the manufacture and sale of precured tread rubber, equipment and supplies for retreading tires. Also, the company has an 87.5% interest in Speedco, Inc., a provider of on-highway truck lubrication and routine tire services to commercial truck owner-operators and fleets. BDG exceeded analysts’ earnings expectations in four straight quarters by an average margin of 32.1%. In three out of the four aforementioned quarters, the company achieved double-digit percentage earnings surprises. On Apr 25, BDG announced first-quarter profits of 75 cents per share, easily surpassing the consensus estimate of 39 cents by 92.3%. The year-over-year improvement was even more impressive—294.7% when compared to earnings of 19 cents per share in the first quarter of 2006. Net sales came in at $227.0 million, compared to $212.4 million in the prior-year period. Chairman and CEO Martin G. Carver stated, "Bandag's first quarter performance is especially gratifying because it demonstrates the benefits of recent strategic actions to strengthen and position our operations for profitable growth globally. Moving forward, we're very excited about the future." On Dec 5, 2006, BDG announced that it had entered into a merger agreement with Bridgestone Americas Holding, Inc. in which BDG will become a subsidiary of Bridgestone. The cash deal is valued at approximately $1.05 billion. The proposed merger is still subject to regulatory approvals and is expected to be completed in the second quarter of 2007. In early May, the Board of Directors declared 34-cent quarterly cash dividend. The dividend is payable on Jul 20 to stockholders of record as of Jun 20. The company is currently yielding 2.7%. Consensus estimates for this year currently reside at $3.20, marking a 32-cent improvement when compared to the consensus of a week earlier. One of the two covering analysts upped his estimate. Profit forecasts for next year have risen by a larger amount—61 cents to $3.41 over the same period of time. An upward revision was submitted by one of the two covering analysts. BDG is currently trading at a valuation of 15.9x current fiscal-year estimated earnings and at 14.9x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.3x current fiscal-year estimated earnings and at 15.3x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.7 compared to 4.5 for the market and 2.0 for the industry average. BDG’s return on equity more than triples that of the industry average—10% compared to 3%. 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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LECO - Lincoln Electric Holdings, Inc - exceeded analysts’ earnings expectations for nine consecutive quarters and in 12 out of the last 13

Lincoln Electric Holdings, Inc. (LECO) exceeded analysts’ earnings expectations for nine consecutive quarters and in 12 out of the last 13. Earnings per share are projected to grow 12.2% over the next 3-5 years. On Apr 27, the Board of Directors declared a regular quarterly cash dividend of 22 cents per share. LECO is currently yielding 1.3% and has a five-year average dividend yield of 2.2%. Full Analysis Lincoln Electric Holdings, Inc., through its subsidiaries, engages in the manufacture and resale of welding and cutting products worldwide. LECO’s customers comprise companies operating in general metal fabrication; infrastructure, including oil and gas pipelines and platforms, buildings, bridges, and power generation; transportation and defense industries; equipment manufacture in construction, farming, and mining; retail resale; and rental market. On Apr 26, LECO posted first-quarter earnings per share of $1.12, beating the Street’s estimate of $1.02 by 9.8%. The company has now exceeded analysts’ earnings expectations for nine consecutive quarters and in 12 out of the last 13. When compared to profits of 86 cents per share in the first quarter of last year, the result equated to a 30.2% year-over-year improvement. Revenues increased 17.2% to $549 million from $468.4 million in the prior-year period. Revenues from LECO’s North American operations jumped 8% to $345.7 million, while export sales soared 55% to $47.5 million. LECO increased revenues for the past five years, expanded gross margins for the past three and grew profits for four years running. Earnings per share grew 23.7% over the past five years. The company reported record fourth-quarter and full-year 2006 results in late February. Chairman and CEO John M. Stropki stated, "I am pleased to report excellent sales and profit results for the first quarter. Our broad, global positioning and expanded product line have allowed us to weather some economic softening in certain markets while capitalizing on the strength and growth of others. We continue to stay very focused in executing our strategies across our regional businesses, which include market share growth, offering value-added products and services and operational excellence." The consensus earnings estimate for this quarter currently sits at $1.21 and marks a two-cent increase over the past 30 days. Profit forecasts for next quarter are up a penny over the same period of time. Earnings per share are projected to grow 12.2% over the next 3-5 years. On Apr 27, the Board of Directors declared a regular quarterly cash dividend of 22 cents per share. The dividend is payable on Jul 13 to shareholders of record as of Jun 29. In late November, the Board boosted the company's quarterly dividend by three cents to its current rate. LECO has a current dividend yield of 1.3% and a five-year average dividend yield of 2.2%. The company’s return on equity of 22% is in line with that of the industry average. LECO 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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FLR - Fluor Corp - beat the Street’s earnings estimate in six out of the past eight quarters by an average margin of 26.4%

Fluor Corporation (FLR), which was first featured as a Growth and Income pick on Oct 17, has returned over 23%. The company exceeded analysts’ earnings expectations in six out of the past eight quarters by an average margin of 26.4%. Earnings per share are forecasted to grow 15.2% over the next 3-5 years. In early May, the Board of Directors declared a quarterly cash dividend of 20 cents per common share of stock. FLR has a current dividend yield of 0.80%. Full Analysis Fluor Corporation is one of the world's largest, publicly owned engineering, procurement, construction and maintenance services companies. FLR’s clients span a wide range of industry worldwide, including chemicals and petrochemicals; commercial and institutional; government projects; healthcare; life sciences; manufacturing; microelectronics; mining; oil and gas; power; telecommunications; and transportation infrastructure. FLR, which was first highlighted as a Growth and Income pick on Oct 17, has returned over 23%. The company continues to surprise to the upside, while consensus earnings estimates are still trending higher for both this year and next. FLR beat the Street’s earnings estimate in six out of the past eight quarters by an average margin of 26.4%. In five of the six aforementioned quarters the company produced a double-digit percentage earnings surprise. Earnings per share grew 9.8% over the past five years and are forecasted to grow by a larger magnitude going forward—15.2% over the next 3-5 years. On May 7, FLR reported first-quarter earnings per share of 94 cents. This amounted to a 6.8% positive earnings surprise with analysts calling for 88 cents per share. Revenues came in at $3.64 billion versus $3.62 billion in the first quarter of 2006. FLR stated that it achieved double-digit revenue gains from four of its five business segments. Oil and gas revenues led the way soaring 41.2% to $1.68 billion from $1.19 billion. Chairman and CEO Alan Boeckmann stated, "Fluor's operations posted very strong results, enabling us to largely offset the expected decline in contingency response work in the Government segment. We continue to win substantial new project awards across our diversified businesses which we expect will continue to drive growth in revenue, earnings and backlog." On May 9, FLR announced it received a $1 billion contract from Saudi International Petrochemical Co. FLR will provide engineering, procurement, construction management and precommissioning services for an acetyls complex in Jubail, Saudi Arabia. The project should be completed in December of 2008. The contract was booked in the first quarter. In early May, the Board of Directors declared a quarterly cash dividend of 20 cents per common share of stock. The dividend is payable on Jul 3 to shareholders of record as of Jun 7. FLR has a current dividend yield of 0.80% and a five-year average dividend yield of 1.4%. The company’s return on equity nearly doubles that of the industry average—15% compared to 8%. FLR 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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BWLD - Buffalo Wild Wings - annual growth targets of 15% for units, 20% for revenue and 25% for net income through the next three years (2007-2009)

BW3 as BWLD is popularly known has surpassed earnings estimates in 12 out of the last 13 quarters. Year-over-year earnings growth has been extremely impressive ovet that time period. Nine analysts have raised their numbers for this year. Over the last month, this year's estimates have jumped 18 cents to $2.20 per share, while next year's numbers have also risen 18 cents to $2.68 per share. Full Analysis Buffalo Wild Wings (BWLD) owns, operates, and franchises a chain of 429 casual dining restaurants that serves chicken wings (23% of sales), hamburgers, sandwiches, appetizers, salads and other items. Open from lunch until 2am, the restaurant concept offers a full bar (28% of sales) and up to 40 televisions, and appeals not only to sports fans who come to drink and watch games but also to families, whose kids can watch TV or play video games. Take out service also generates strong sales, accounting for more than 15% of BWLD's business. Buffalo Wild Wings was started near Ohio State University and today nearly 19% of its restaurants are in Ohio, although the chain has expanded into 37 states, with the majority of its units being in the mid-Atlantic, Great Lake states, Texas and Florida. BWLD is well positioned to attain its annual growth targets of 15% for units, 20% for revenue and 25% for net income through the next three years (2007-2009). With just 431 restaurants, the concept has a lot of room to grow before saturating the market. Sports and alcohol are sellers in most major markets, so we don t anticipate unique regional tastes dampening sales as the company expands into new markets. Management believes the system can support at least 1,000 restaurants (it currently has 430) and the company has the infrastructure to support 15% unit growth, which is slower than the 21.2% growth in openings over the last four years. In early-May, the company said its first-quarter profit leaped 58% as higher sales helped to offset rising prices for chicken wings. For the quarter ended April 1, net income rose to $5.5 million, or 63 cents per share, from $3.5 million, or 40 cents per share, in the year-ago quarter. Analysts expected 53 cents per share. Revenue rose 24% to $79.9 million from $64.3 million in the first quarter of 2006. Analysts were looking for earnings of 52 cents per share on revenue of $78.4 million. Same-store sales rose 9% at company-owned restaurants and 3% at franchised restaurants. Same-store sales, or sales at stores open at least a year, are a key measure of retailer and restaurant performance since they count growth at existing stores rather than newly-opened ones. Sally Smith, President and Chief Executive Officer, commented, "First quarter sales continue to show the strength of the Buffalo Wild Wings' brand. Key to the industry-leading same-store sales of 8.7% at company-owned restaurants and 3.3% at franchised locations is the expanded media campaign and the guest-driven focus in our restaurants that reinforces our brand promise: YOU HAVE TO BE HERE(TM). Average weekly sales volumes again outpaced our same-store sales trends, with increases of 9.5% at company-owned restaurants and 4.7% at franchised locations. With year-over-year improvements and leveraging throughout our statement of earnings, we delivered earnings per diluted share of $0.63, an impressive 58% increase over the prior 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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IRBT - iRobot Corp - reported first-quarter earnings that beat estimates by almost 21%

IRBT bested first-quarter estimates by almost 21%, prompting analysts to raise this year's and next year's numbers. Over the past month, this year's estimates have increased 28% to nine cents per share, while next year's numbers have risen 8% to 27 cents per share. The company has no debt which is impressive for such a young and growing firm. Full Analysis iRobot Corporation (IRBT) designs, develops, and markets robots for consumer, government, and industrial markets in the United States and internationally. It offers consumer products, including floor cleaning robots, such as Roomba floor vacuuming robot and Scooba floor washing robot. The company's government and industrial products include PackBot Scout, a portable, tactical, and mobile robot for military operations in urban terrain and battle missions; PackBot Explorer for performing real-time targeting and battle damage assessment; and PackBot EOD, a rugged and lightweight robot to conduct explosive ordnance disposal, hazardous materials, search-and-surveillance, and other law enforcement tasks for bomb squads, SWAT teams, military units, and other authorities. The company sells its products through various distribution channels, including chain stores, retailers, and on-line store, as well as directly to government customers. It serves law enforcement, homeland security, commercial cleaning, elderly care, oil services, home automation, landscaping, agriculture, and construction markets. iRobot Corporation has strategic alliances with Deere & Company and The Clorox Company. IRBT reported first-quarter earnings that beat estimates by almost 21%. Net loss in the first quarter of 2007 was $5.5 million compared with a net loss in the first quarter of 2006 of $2.9 million. Revenues for the first quarter of 2007 grew to $39.5 million, compared with $38.2 million for the same quarter one year ago. During the quarter, iRobot received an additional $14 million order from Naval Sea Systems Command (NAVSEA) for 101 bomb-disposal robots plus spare parts, under its Man Transportable Robotic Systems (MTRS) contract. Also, the company announced it received an order of more than $2.8 million for 22 iRobot PackBot® EOD robots and spare parts from the German Federal Defense Forces. Successful training on the robots delivered in 2006 was one of the reasons for exercising this follow-on order. "In Q1, we delivered our 11th consecutive quarter of year-over-year revenue growth," said Colin Angle, chief executive officer of iRobot. "Our financial performance in the quarter was on plan and consistent with our expectations. These results coupled with our excellent visibility for the rest of the year, particularly in our government business, give us a high level of confidence in meeting our first-half and full-year financial guidance. We are therefore reaffirming the guidance we provided on Feb. 12, 2007." 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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B - Barnes Group, Inc - raised its full-year guidance from $1.53-1.60 to $1.74-1.83 per share

Barnes Group, Inc. (B) topped analysts’ earnings expectations for three straight quarters by an average margin of 18.4%. After reporting solid first-quarter results, the company boosted its full-year profit guidance to between $1.74 and $1.83 per share. Analysts responded to B’s bullish guidance by upping their earnings estimates. This Zacks #1 Rank stock has a price-to-book ratio of 2.8, compared to 4.5 for the market and 2.9 for the industry average. Its PEG ratio currently resides at 0.86. Full Analysis Barnes Group, Inc. is an international aerospace and industrial products manufacturer and distributor serving a range of end markets and customers. The company operates in three segments: Barnes Distribution, Associated Spring and Barnes Aerospace. B exceeded analysts’ earnings expectations for three straight quarters by an average margin of 18.4%. In each of the aforementioned quarters, the company was able to surprise to the upside by a double-digit percentage. Moreover, B met or topped estimates in nine out of the past 10 quarters (beating eight times while matching once). On May 9, B reported first-quarter profits of $27.7 million, or 50 cents per share, compared with $18.5 million, or 36 cents per share, in the prior-year period. The result represented a 25.0% positive surprise with analysts calling for earnings per share of 50 cents. Revenues jumped 20.3% to $360.7 million from $299.9 million in the first quarter of 2006. The company’s aerospace division led the way with revenues soaring 36.3% to $91.2 million. President and CEO Gregory F. Milzcik stated, "The continued consistent performance of Barnes Group, with 17 quarters of double-digit sales growth, combined with the momentum of our operational improvement initiatives provide us with greater confidence in our outlook for 2007." This greater confidence pushed B to raise its full-year profit guidance to between $1.74 and $1.83 per share. The company’s prior outlook called for earnings per share between $1.53 and $1.60. The consensus earnings estimate for this year currently resides at $1.86. When compared to the consensus of a week earlier, it has risen 26 cents. All three covering analysts upped their estimates. Profit forecasts for next year are up by an even greater margin—30 cents to $2.15 over the same period of time. Upward revisions were submitted by three of the four covering analysts. Earnings per share are projected to grow 16% over the next 3-5 years, with the industry expected to grow at a 15% clip. On Apr 19, the Board of Directors boosted the company's quarterly cash dividend by 12% to 14 cents per share. The dividend will be paid on Jun 11 to shareholders of record as of Jun 1. B has a current dividend yield of 1.72%. The company has paid a cash dividend to stockholders on a continuous basis since 1934. B is currently trading at a valuation of 15.7x current fiscal-year estimated earnings and at 13.6x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.2x current fiscal-year estimated earnings and at 15.2x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.8, compared to 4.5 for the market and 2.9 for the industry average. Its PEG ratio currently resides at 0.86. The company’s return on equity, a common measure of profitability, quadruples that of the industry average—48% compared to 12%. 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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CNS - Cohen & Steers, Inc - Board of Directors boosted the company’s quarterly cash dividend by 54%

Cohen & Steers, Inc. (CNS), last presented as a Growth and Income pick on Jan 30, is up over 11%. The company exceeded analysts’ earnings expectations for the past four quarters by an average margin of 16.3%. Consensus earnings estimates have risen over the past 30 days for this Zacks #1 Rank stock. On Mar 13, the Board of Directors boosted the company’s quarterly cash dividend by 54% to 20 cent per share. CNS’s return on equity quadruples that of the industry average. Full Analysis Cohen & Steers, Inc., together with its subsidiaries, operates as a manager of equity portfolios primarily in the United States. The company serves individual and institutional investors through a range of open-end mutual funds, closed-end mutual funds and institutional separate accounts. CNS also has a small investment bank that advises real estate businesses and REITs. CNS, which was last featured as a Growth and Income stock on Jan 30, has added an additional positive earnings surprise to its track record. The company has now exceeded analysts’ earnings expectations for the past four quarters by an average margin of 16.3%. Moreover, the stock is up over 11% and is still a Zacks #1 Rank stock (strong buy). On Apr 25, CNS reported first-quarter profits of $22.3 million, or 52 cents per share. The result beat the consensus earnings estimate of 40 cents by an impressive 30.0%, and soared past earnings in the prior-year period by 136.4%. Total revenues ballooned 103.2% to $76.8 million, compared to $37.8 million in the first quarter of 2006. CNS’s investment banking division recorded its best quarter ever, posting revenues of $15.7 million, versus $705,000 for the prior-year period. Assets under management reached a record $33.6 billion at Mar 31, 2007. At Dec 31, 2006, assets under management stood at $29.9 billion. Consensus earnings estimates for this quarter and next are each up two cents to 43 cents and 45 cents, respectively, over the past 30 days. Three of the five covering analysts raised their estimates for both this quarter and next. Profit forecasts for this year and next have risen 19 cents and 17 cents to $1.84 and $2.15, respectively, over the past month. Upward revisions were submitted by five of the six covering analysts for both this year and next. Earnings per share are projected to grow 19% over the next 3-5 years, well above the 10% projected growth rate for the industry. On Mar 13, the Board of Directors boosted the company’s quarterly cash dividend by seven cents, or 54%, to 20 cents per share. Commenting on the dividend increase, Co-Chairman and Co-Chief Executive Officer Martin Cohen stated, "Our continued profitability and strong margins give us increased financial flexibility." CNS is currently yielding 1.5%. The company’s return on equity, a common measure of profitability, quadruples that of the industry average—48% compared to 12%. 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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FWLT - Foster Wheeler, Ltd - Moody's and Standard & Poor's S&P recently raised Foster Wheeler's credit ratings

Foster Wheeler blew the cover off the ball in its latest quarter, exceeding the consensus estimates by 85 cents, or 113%. Needless to say, the stock has been on fire, approaching its 52-week highs in recent trading. Earnings estimates have exploded higher in the wake of the company's blowout quarter. Over the past week, this year's estimates have rocketed $1.24 to $4.59 per share. This kind of earnings momentum takes some time to play out. Full Analysis Foster Wheeler, Ltd. (FWLT) primarily provides engineering and construction services to the oil and gas, oil refining, chemical/petrochemical, pharmaceutical, environmental, power generation, and power plant operation and maintenance sectors worldwide. It operates through two groups, Global Engineering and Construction Group (Global E&C Group), and Global Power Group. The company reported a solid first-quarter profit because of a robust energy market, and shares rose sharply as a result. Earnings increased to $114.8 million, or $1.60 per share, from $14.6 million, or a loss of 8 cents per share a year ago. Last year's quarter included costs of 29 cents per share related to a distribution of additional shares to warrant holders. Revenue grew 78% to $1.15 billion from $645.8 million during the same period a year ago. FWLT said markets for the company's services "remain very robust," as global economic growth drives investment in new and existing oil and gas, refinery, petrochemical and power facilities. Its backlog as of March 30 stood at $2.74 billion, compared with $2.53 billion at the close of the fourth quarter and $2.49 billion at the end of the first quarter last year. "I would like to congratulate all Foster Wheeler employees worldwide for producing a fourth consecutive record-breaking earnings quarter," said Raymond J. Milchovich, chairman and chief executive officer. "Our consistent pursuit of commercial and operational excellence is clearly re-inventing the earning capability of our 116-year-old company. Both of our business groups delivered performance breakthroughs from the year-ago quarter." In another positive development, Moody's Investors Service (Moody's) and Standard & Poor's (S&P) recently raised Foster Wheeler's credit ratings. Moody's raised the Company's corporate credit rating to "Ba3" from "B1", raised the credit rating assigned to Foster Wheeler's five-year, $350 million senior secured domestic credit facility to "Baa3" (investment grade) from "Ba1", and confirmed that its ratings outlook for Foster Wheeler remains "positive." S&P raised the Company's corporate credit rating to "BB" from "B+", and raised the credit rating assigned to the domestic credit facility to "BB+" from "BB-." 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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WHQ - W-H Energy Services, Inc - exceeded analysts’ earnings expectations for the past six quarters by an average margin of 15.9%

W-H Energy Services, Inc. (WHQ), which was first featured as a Value pick on Dec 20, has returned over 20%. The company exceeded analysts’ earnings expectations for the past six quarters by an average margin of 15.9%. WHQ’s first-quarter results were impressive, fueled by greater utilization across many of its service lines. Consensus earnings estimates have risen over the past 30 days. This Zacks #1 Rank stock has a price-to-book ratio of 3.4, compared to 4.5 for the market. Full Analysis W-H Energy Services, Inc. is a diversified oilfield service company that provides products and services used primarily for the drilling, completion and production of oil and natural gas wells. The company’s operations are currently focused offshore in the Gulf of Mexico and in the North Sea, and onshore along the Gulf Coast. WHQ’s customers include independent oil and natural gas companies, drilling contractors and other oilfield service companies. WHQ, which was first presented as a Value pick on Dec 20, has returned over 20%. Moreover, the company continues to trade at a discounted valuation and has maintained the coveted Zacks #1 Rank status. WHQ exceeded analysts’ earnings expectations for the past six quarters by an average margin of 15.9%. Over the past 10 quarters, the company produced nine earnings surprises while meeting estimates once. In eight of the nine quarters WHQ surprised by a double-digit percentage. On Apr 27, WHQ reported first-quarter profits of $1.16 per share. The result beat the consensus estimate of $1.04 by 11.5% and soared past earnings in the prior-year period by 48.7%. Revenues came in at $272.9 million, up 35.2% from the $201.8 million achieved in the first quarter of 2006. Broken down by region, domestic revenues increased 31% while international revenues ballooned 76%. President and CEO Ken White stated, "We continue to make market share gains with the execution of our strategy of providing leading technology solutions to our customers, capitalizing on the growth of horizontal and directional drilling, and exploiting geographic growth opportunities." WHQ has differentiated itself by strategically targeting opportunities in niche markets. Looking ahead, the company is expected to expand its international operations into areas such as Brazil, the Caspian Sea, Italy and the Middle East. Consensus estimates have experienced sizeable jumps over the past 30 days. Profit forecasts for both this quarter and next have risen 10.4% over the past month, with three analysts upping their estimates. Profit forecasts for this year and next increased 7.6% and 13.6%, respectively, over the same period of time. Upward revisions were submitted by three analysts for both periods. WHQ is currently trading at a valuation of 13.0x 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 16.3x current fiscal-year estimated earnings and at 15.3x next fiscal-year estimated earnings. The company has a price-to-book ratio of 3.4, compared to 4.5 for the market. WHQ’s return on equity tops that of the industry average—27% compared to 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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MER - Merrill Lynch & Co., Inc - PEG ratio currently resides at 0.94

Merrill Lynch & Co., Inc. (MER) exceeded analysts’ earnings expectations in 15 out of the past 16 quarters. The company recently reported impressive first-quarter results. In late April, the Board of Directors authorized a $6-billion share repurchase plan and declared a 35-cent dividend payment. This Zacks #1 Rank stock has a price-to-book ratio of 2.3, compared to 4.5 for the market. Its PEG ratio currently resides at 0.94. Full Analysis Merrill Lynch & Co., Inc., through its subsidiaries, provides broker-dealer, investment banking, financing, wealth management, advisory, asset management, insurance, lending, and related products and services on a global basis. MER’s history of beating the consensus earnings estimate is truly outstanding. The company topped the Street’s estimate in 15 out of the past 16 quarters. In 10 out of the 15 aforementioned quarters, MER managed to surprise by a double-digit percentage. On Apr 19, MER reported first-quarter profits of $2.26 per share. With analysts calling for $1.96 per share, the company surprised by a solid 15.3%. The result also crushed earnings of 44 cents in the prior-year period (MER recorded $1.2 billion in one-time compensation expenses). Revenues soared 23.6% to $9.85 billion, compared to $7.97 billion in the year-ago period, and were the second highest ever after the third quarter of 2006, when MER benefited from a one-time gain related to the purchase of BlackRock Inc. Chairman and CEO Stan O'Neal stated, "This was a terrific quarter. In an environment which was volatile at times, we took full advantage of market opportunities and delivered value to our clients and our shareholders. Our product capabilities and geographic reach are stronger and broader now than at any point in our history, and we continue to make investments to further enhance our franchise." Consensus earnings estimates for this quarter and next are up 14 cents and six cents, respectively, over the past 30 days. Upward revisions were submitted by 10 covering analysts for this quarter, while eight boosted their profit forecasts for next quarter. Estimates for this year and next have risen 58 cents and 59 cents, respectively, over the same period of time. 10 analysts increased their forecasts for both this year and next. Earnings per share are projected to grow 12% over the next 3-5 years. On Apr 30, the Board of Directors authorized the repurchase of up to $6 billion of the company's outstanding common shares. During the first quarter, MER bought back $2 billion worth of shares and $9.09 billion in shares during all of 2006. Moreover, on Apr 27, the Board declared a regular quarterly cash dividend of 35 cents per common share. The dividend is payable on May 23 to shareholders of record as of May 8. MER has a current dividend yield of 1.5% and a five-year average dividend yield of 1.3%. MER is currently trading at a valuation of 11.2x current fiscal-year estimated earnings and at 10.5x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.3x current fiscal-year estimated earnings and at 15.2x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.3, compared to 4.5 for the market. Its PEG ratio currently resides at 0.94. MER’s return on equity surpasses that of the industry average—23% compared to 15%. 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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CR - Crane Co - met or topped the consensus estimate for 16 consecutive quarters

Crane Co. (CR) exceeded analysts’ earnings expectations for eight straight quarters, most recently by 10.9% in the first quarter. The company also announced that it expects to hit the higher end of its full-year profit guidance. Analysts have been upping their earnings estimates. CR is currently yielding 1.4% and has a five-year average dividend yield of 1.5%. Full Analysis Crane Co. is a diversified manufacturer of highly engineered industrial products. The company provides products and solutions to customers in the aerospace, electronics, hydrocarbon processing, petrochemical, chemical, power generation, automated merchandising, transportation and other markets. CR operates in five business segments: Aerospace & Electronics, Engineered Materials, Merchandising Systems, Fluid Handling, and Controls. When it comes to exceeding analysts’ earnings expectations, CR has quite a solid track record. The company beat the Street’s estimate for the past eight quarters. Also, CR met or topped the consensus estimate for 16 consecutive quarters (14 positive earnings surprises). Earnings per share grew 16% over the past five years. On Apr 23, CR surprised to the upside by 10.9% when it reported first-quarter profits of 71 cents per share. Compared to earnings of 61 cents in the prior-year period, the result marked a 16.4% year-over-year improvement for the company. Revenues jumped 14.3% to $628.2 million from $549.4 million in the first quarter of last year. Order backlog as of Mar 31 sat at $727 million—a 16.9% increase when compared to a backlog of $622 million last year. President and CEO Eric C. Fast stated, "Our record first-quarter EPS gives us a strong start toward posting our third consecutive year of record earnings. The five acquisitions we completed in 2006, which were important strategic additions to strengthen our industry leading positions, contributed significantly to our profit improvement." Looking ahead to the second quarter, CR expects profits between 74 cents and 82 cents per share, compared to 71 cents per share in the second quarter 2006. Earnings for the entire year are projected to come in between $2.80 and $2.95 per share, and management is more confident that it will hit the higher end of the guidance. Consensus earnings estimates for this quarter have risen four cents to 77 cents over the past 30 days, with four of the seven covering analysts upping their projections. Estimates for the full year are up seven cents to $2.92 over the same period of time. Five of the seven covering analysts submitted upward revisions. Earnings per share are projected to grow 10.5% over the next 3-5 years. In late January, the Board of Directors declared a regular quarterly cash dividend of 15 cents per share for the first quarter of 2007. CR is currently yielding 1.4% and has a five-year average dividend yield of 1.5%. The company has a return on equity of 19% compared to 16% for the industry average. CR 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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RS - Reliance Steel & Aluminum Co - All six covering analysts upped their estimates

Reliance Steel & Aluminum Co. (RS), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in 15 out of the past 16 quarters. Consensus estimates for both this year and next have risen by a considerable margin over the past month. On Feb 14, the Board of Directors declared a 33% boost in the company’s regular quarterly cash dividend. RS has a current dividend yield of 0.51%. Full Analysis Reliance Steel & Aluminum Co. is one of the largest metals service center companies in the United States. The company provides metals processing services and distributes a full line of more than 90,000 metal products through a network of more than 150 locations in 37 states, Belgium, Canada, China and South Korea. RS sells its products and services to more than 95,000 customers in a broad range of industries. When it comes to topping the Street’s earnings estimate, RS is one of the best. The company beat the consensus estimate in 15 out of the past 16 quarters. In seven out of the 15 aforementioned quarters, RS surprised by a double-digit percentage. In one quarter it actually produced a triple-digit percentage surprise. On Apr 19, RS reported first-quarter profits of $1.46 per share. The result surpassed analysts’ expectations of $1.30 per share by 12.3% and soared past earnings of $1.07 in the prior-year period by 36.4%. Revenues came in at $1.84 billion, versus $988 million in last year. Steady demand for its products and recent acquisitions were cited as fueling revenue growth. During the first quarter, RS finalized three metals service center acquisitions: Encore Group of metals service center companies (Encore Metals, Encore Metals (USA), Inc., Encore Coils, and Team Tube in Canada), Crest Steel Corporation and Industrial Metals and Surplus, Inc. CEO David H. Hannah stated, "We are very pleased with our 2007 first-quarter results. Overall, customer demand was steady throughout the quarter at what we consider to be a healthy level." The consensus estimate for this year currently calls for profits of $5.88 per share. Compared to the consensus of 30 days earlier, it jumped 50 cents. All six covering analysts upped their estimates. Profit forecasts for next year increased 66 cents to $6.10 over the same period of time, with five of the six covering analysts submitting upward revisions. Earnings per share are projected to grow 19% over the next 3-5 years. The industry is expected to grow by 14%. On Feb 14, the Board of Directors declared a 33% boost in the company’s regular quarterly cash dividend to eight cents per share of common stock. Its second-quarter dividend is payable on Jun 22 to shareholders of record as of Jun 1. RS distributed regular quarterly dividend payments for 47 straight years. The company has a current dividend yield of 0.51%. RS increased revenues and expanded gross margins for the past five years, while growing profits for the last four. Its return on equity of 24% betters the industry average of 17%. 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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SII - Smith Intl, Inc - 55% of the company's 2006 revenue was generated from markets outside North America

Smith International's stock has been on fire this year, easily outpacing the industry as well as the S&P 500. Earnings estimates have increased nicely over the past month. This year's numbers have jumped 21 cents to $3.23 per share, while next year's estimates have also risen 21 cents to $3.87 per share. Analysts project the company to grow earnings at a 22.67% annual rate over the next three to five years. Full Analysis Smith International, Inc. (SII) is a major oilfield services company, engaged in providing a comprehensive line of products and engineering services to the oil and gas exploration and production industry, as well as to the petrochemical and other related industries. The company provides its products and services worldwide through four business units, which are grouped into two reportable segments: Oilfield Products and Services, and Distribution. Performance of oilfield service companies, including Smith International, is closely tied to capital expenditures by oil and gas companies on exploration and production (E&P) activities. Peak cycle commodity prices since early 2005 have significantly strengthened producers cash flows and balance sheets, enabling producers to ramp up their E&P spending gradually, particularly in the offshore markets. Although close to 60% of the company's 2006 consolidated revenue was generated in North America, Smith's profitability was largely dependent upon business levels in markets outside of North America. The Distribution segment, which accounts for approximately 26% of consolidated revenue and primarily supports a North American customer base, serves to distort the geographic revenue mix of the company. Excluding the impact of the Distribution segment, 55% of the company's 2006 revenue was generated from markets outside North America. Smith, therefore, enjoys strong leverage to these markets, where activity levels are ramping up significantly. On the acquisitions front, Smith has acquired more than $400 million worth of proven products from niche industry players over the last three years. During 2006, the company completed seven acquisitions in exchange for an aggregate amount of around $227 million. Notable transactions included the Epcon Offshore acquisition, a Norway-based global provider of proprietary water treatment technology designed to optimize the removal of hydrocarbons from water generated during the production process, and the Specialised Petroleum Services Group Ltd., a global provider of patented well-bore clean-up products. Smith also remains focused on returning capital to shareholders. It initiated a regular quarterly dividend in 2005 and raised it by 33% to the annualized run rate of $0.32 per share in March 2006. In February this year, the company again increased the quarterly dividend rate by 25% to the annualized run rate of $0.40 per share. On April 25, Smith International reported better than expected first-quarter 2007 earnings of $0.76 per share (Zacks estimate was for $0.73 per share), compared to $0.53 per share in the year-earlier quarter and $0.71 in the fourth quarter of 2006. Continued expansion in the Oilfield segment operating margins driven by strong global offshore markets resulted in solid year-over-year and sequential gains. Revenue during the quarter increased 5.4% sequentially and 25.3% year over year to $2.1 billion. Offshore business volumes accounted for approximately 90% of the Oilfield segment revenue increase over the prior quarter, driven by strong demand for drilling and completion fluids, environmental solutions and borehole enlargement technologies. 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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MINI - Mobile Mini, Inc - reported record first-quarter results in early-May

Mobile Mini has exceeded analyst estimates in an impressive 13 consecutive quarters. Year-over-year growth has consistently exceeded 30% over that time frame. Six analysts have raised their numbers for this year. Over the past month, this year's earnings estimates have increased seven cents to $1.59 per share. Next year's numbers have jumped 11 cents to $1.84 per share. Full Analysis Mobile Mini, Inc. (MINI) provides portable storage solutions primarily in the United States. The company offers a range of portable storage products in varying lengths and widths with various features, such as its proprietary security systems, multiple doors, electrical wiring, and shelving. It provides steel portable storage containers, mobile offices, and custom structures for various business needs. The company's products include refurbished and modified storage units, manufactured storage units, steel combination mobile office and storage/office units, wood mobile office units, records storage units, van trailers, and other non-core storage units. MINI reported record first-quarter results in early-May. Earnings per share grew almost 35% year-on-year to 35 cents, beating the consensus estimate by three cents. Total revenues increased 29.4% to $73.0 million from $56.4 million. Also, the company's operating margin increased to 36.7% from 35.3%. Steven Bunger, Chairman, President & CEO of Mobile Mini, stated, "Our first quarter internal growth rate was higher than expected and translated into better than expected lease revenues, EBITDA and diluted earnings per share." He went on to say, "We are especially pleased by the 20% increase in lease revenues achieved by our European branches as compared to the same period last year when those locations were not part of Mobile Mini. This exceptional growth is, we believe, only the beginning of the results we can achieve now that we have our own yards, trucks, systems and a far more developed product line at our European branches compared to one year ago." In light of the stronger than expected first quarter results and the expected interest savings, management has raised 2007 pro forma guidance to between $285-$290 million in leasing revenues and $1.53-$1.58 in EPS. This is an eight-cent bump up from previous guidance. 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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