VLO - Valero Energy Corp - surprised to the upside in 13 out of the past 16 quarters - PEG ratio currently resides at 0.37

Valero Energy Corporation (VLO), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in 13 out of the past 16 quarters. On Jan 18, the Board of Directors approved a 50% boost in the company's regular quarterly cash dividend to 12 cents per share. VLO has also been active in repurchasing its own shares. The company has a price-to-book ratio of 2.4 compared to 4.6 for the market and 3.5 for the industry. Its PEG ratio currently resides at 0.37. Full Analysis Valero Energy Corporation is the largest refiner in North America, with a throughput capacity of approximately 3.3 million barrels per day. Its refining activities include refining operations, wholesale marketing, product supply and distribution, and transportation operations. VLO’s geographically diverse refining network stretches from Canada to the U.S. Gulf Coast and West Coast to the Caribbean. When it comes to topping analysts’ earnings expectations, VLO has a fairly solid track record. The company surprised to the upside in 13 out of the past 16 quarters, most recently by 6.3% when it posted first-quarter profits of $1.86 per share. The result marked a 40.9% year-over-year improvement for the company. Revenues slipped to $19.7 billion from $20.93 billion a year earlier. Chairman and CEO Bill Klesse stated, "We're off to a great start in 2007, as Valero earned the highest first quarter profits in company history." VLO used its first-quarter cash in a number of different ways. The company boosted its dividend payment by 50% to 12 cents per share, leading to a current dividend yield of 0.65%. VLO also bought back nearly 15.6 million shares of common stock. Moreover, an additional 4.1 million shares were repurchased in early April. Year-to-date, the company has bought back 19.7 million shares. Lastly, in February, VLO paid off $183 million of callable long-term debt. Analysts have been growing increasingly optimistic about the company’s future earnings prospects. Consensus estimates for this quarter and next are up 43 cents and nine cents, respectively, over the past month. Six analysts upped their estimates for this quarter while four did so for next quarter. Profit forecasts for this year and next experienced 47-cent and 49-cent increases, respectively, over the same period of time. Six analysts upped their estimates for this year while four followed suit for next year. Earnings per share are projected to grow 22% over the next 3-5 years, well above the projected 7% growth rate for the industry. VLO’s return on equity, a common measure of profitability, nearly doubles that of the industry average—31% compared to 17%. The company is currently trading at a valuation of 8.3x current fiscal-year estimated earnings and at 9.6x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.4x current fiscal-year estimated earnings and at 15.3x next fiscal-year estimated earnings. VLO has a price-to-book ratio of 2.4 compared to 4.6 for the market and 3.5 for the industry. Its PEG ratio currently resides at 0.37. 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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TTC - The Toro Company - strong financial performance driven primarily by continued international sales growth and improved gross margins

The Toro Company (TTC) topped the consensus earnings estimate in eight out of the past nine quarters by an average margin of 18.0%. The company has benefited from customer acceptance of new products, along with the momentum of current retail activity. The Board of Directors recently authorized the repurchase up to an additional three million shares and declared a quarterly cash dividend of 12 cents per share. TTC has a current dividend yield of 0.81%. Full Analysis The Toro Company engages in the design, manufacture and marketing of turf maintenance equipment and services, turf and micro irrigation systems, landscaping equipment and residential yard products worldwide. TTC exceeded analysts’ earnings expectations in eight out of the past nine quarters by an average margin of 18.0%. In half of the eight aforementioned quarters the company surprised by a double-digit percentage. On May 24, TTC beat the Street’s second-quarter fiscal 2007 earnings per share estimate of $1.68 by 5.4% when it posted profits of $1.77 per share. The result also equated to a 13.5% year-over-year improvement when compared to earnings of $1.56 per share in the prior-year period. Revenues came in at $686.7 million, compared to $659 million in the second quarter of fiscal 2006. Both figures were records for the company. For the first half of the year, profits jumped 10.7% to $93.4 million from $84.4 for the first six months of last year. Net sales were $1.07 billion, versus $1.03 billion last year. Chairman and CEO Michael J. Hoffman stated, "The company delivered strong financial performance during the first half of the fiscal year driven primarily by continued international sales growth and improved gross margins." Citing strong customer acceptance of new products, along with the momentum of current retail activity, TTC now expects full-year net earnings per share growth to be between 11% and 14%. The company also affirmed its forecast for full fiscal 2007 net sales growth of 5% to 6 %. The Board of Directors authorized the repurchase up to an additional three million shares of its common stock. Moreover, the Board declared a quarterly cash dividend of 12 cents per common share, payable on Jul 12 to shareholders of record as of Jun 20. TTC has a current dividend yield of 0.81% and a five-year average dividend yield of 0.62%. The consensus estimate for this year currently sits at $3.37, representing a 10-cent jump over the past 30 days. Both of the covering analysts upped their forecasts. Estimates for next year have risen by an even larger magnitude—16 cents to $3.78 over the past month. Upward revisions were submitted by both covering analysts. Earnings per share are projected to grow 12% over the next 3-5 years, with the industry expected to grow at a 10% clip. TTC’s return on equity nearly triples that of the industry average—34% compared to 13%. TTC 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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BCSI - Blue Coat Systems, Inc - Earnings per share came in at 31 cents, almost double the 16-cent analyst consensus

Blue Coat Systems' stock has been on fire. After blowing out fourth-quarter earnings, analysts have been busy raising their estimates. Over the past week, this year's estimates have risen 23 cents to $1.04 per share. The July quarter's numbers have also increased six cents to 24 cents per share. Analysts project that the company can generate 25% earnings growth over the next three to five years. Full Analysis Blue Coat Systems, Inc. (BCSI) provides appliances and client-based solutions that enable information technology organizations to enhance security and accelerate performance. It offers ProxySG family of appliances that leverage existing authentication systems to enable granular policy enforcement down to the individual user; and ProxyAV family of Web anti-virus appliances, which enable organizations to scan for viruses, worms, spyware, and Trojans at the Internet gateway or entering through Web-based backdoors that include personal Web email accounts, Web spam or email spam, and browser-based file downloads that bypass existing virus scanning defenses. The company also offers Blue Coat RA appliances that enable organizations to extend application connectivity with integrated endpoint security to remote employees, partners, and customers for both corporate-owned and unmanaged devices; and SSL-VPN appliances that provide secure on-demand access for remote users. BCSI reported fiscal-fourth quarter earnings that easily exceeded expectations. Earnings per share came in at 31 cents, almost double the 16-cent analyst consensus. Revenues jumped 51% to $54.5 million. For the year, Blue Coat reported net income of $18.8 million, or $1.08 per share, compared with $12.1 million, or 83 cents per share, a year earlier. Sales rose to $177.7 million from $141.7 million. The company proceeded to raise its guidance for the first quarter. For the quarter ending July 31, the company expects net income between 27 cents and 38 cents per share excluding amortization, stock option investigation and restatement expenses, and stock-based compensation expense. The company forecast quarterly revenue between $57 million and $60 million, compared with $36.2 million in the year-ago period. Analysts expect a first-quarter profit of 29 cents per share on sales of $55.4 million. "The record revenue we achieved in the fourth quarter reflects continued strength in our core market and growth in the WAN application delivery infrastructure market," said Brian NeSmith, president and chief executive officer. "Although we are pleased with our recent growth, we continue to invest in our sales and marketing organization in an effort to expand our market share." It shouldn't come as a shock that the stock has performed so well. At a current $43, the stock is up close to fourfold from its 52-week low of $12.86. 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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RAMR - RAM Holdings, Ltd - PEG ratio currently resides at 0.67

RAM Holdings, Ltd. (RAMR) topped the Street’s earnings estimate in four straight quarters by an average margin of 21.1%. Earnings per share are projected to grow 14% over the next 3-5 years, while the industry is forecasted to grow by 13%. The company has a price-to-book ratio of 1.1 compared to 4.6 for the market and 2.7 for the industry. RAMR’s PEG ratio currently resides at 0.67. Full Analysis RAM Holdings, Ltd., through its wholly owned subsidiary RAM Reinsurance Company, Ltd., provides financial guaranty reinsurance for public finance and structured finance obligations, covering risks in the United States and international markets. RAMR exceeded analysts’ earnings expectations in four straight quarters by an average margin of 21.1%. In two of the four aforementioned quarters, the company managed to surprise by a double-digit percentage. On May 3, RAMR announced first-quarter profits of 47 cents per share, easily surpassing the consensus estimate of 38 cents by 23.7%. The year-over-year improvement was even more impressive—88.0% when compared to earnings of 25 cents per share in the first quarter of 2006. Net premiums written came in at $22.2 million, soaring 52.1% when compared to $14.6 million of net premiums written in the first quarter of last year. Adjusted premiums written increased 31.9% to $26.9 million. CEO Vernon Endo stated, "We're pleased with our first quarter financial performance. We're also off to a pretty good start on 2007 business production and we're hopeful that our most recent new treaty, which was effective at the beginning of the second quarter, will enable us to continue to show growth in business production during the remainder of the year." The consensus estimate for this year currently resides at $1.72, marking a five-cent improvement when compared to the consensus of a month earlier. One of the three covering analysts upped their estimates. Profit forecasts for next year have risen two cents to $1.92 over the same period of time. Upward revisions were submitted by one of the three covering analysts. Earnings per share are projected to grow 14% over the next 3-5 years, while the industry is forecasted to grow by 13%. RAMR is currently trading at a valuation of 9.4x current fiscal-year estimated earnings and at 8.4x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.5x current fiscal-year estimated earnings and at 15.4x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.1 compared to 4.6 for the market and 2.7 for the industry. RAMR’s PEG ratio currently resides at 0.67. 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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KLAC - KLA-Tencor Corp - company’s return on equity more than doubles that of the industry average - 17% compared to 7%

KLA-Tencor Corporation (KLAC), a Zacks #1 Rank stock, reported solid financial results for the third quarter and first nine months of the year in late April. Consensus earnings estimates for both this year and next have risen over the past 60 days. On May 25, KLAC announced that it finalized its acquisition of Therma-Wave Corporation. The company is currently yielding 0.88%, with a five-year average dividend yield of 0.37%. Full Analysis KLA-Tencor Corporation is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. The company has sales and service offices around the world. On Apr 26, KLAC reported third-quarter fiscal 2007 profits of 87 cents per share. The result beat analysts’ expectations by nine cents and represented an impressive 81.3% year-over-year improvement for the company. Revenues soared 37.8% to $716.2 million from $519.6 million in the prior-year period. CEO Rick Wallace stated, "KLA-Tencor's solid financial performance this quarter reflects our focus on enabling our customers to meet their technical and economic challenges with our inspection and metrology solutions." For the first nine months of the year, profits came in at $380.8 million, compared to $248.8 million for the first nine months of last year. Revenues rose 33.6% to $1.99 billion from $1.49 billion. On May 25, KLAC announced that it finalized its acquisition of Therma-Wave Corporation. KLAC stated that the company’s products and expertise gives its customers an expanded offering of metrology solutions to meet their process control needs. KLAC agreed to purchase Therma in January for about $75 million, or $1.65 per share. Based on the company’s strong quarter, analysts’ optimism has grown pertaining to KLAC’s future earnings potential. The consensus estimate for this year currently sits at $3.04, representing an 11-cent jump over the past 60 days. Profit forecasts for next year have risen by an even larger magnitude—24 cents to $3.18 over the past two months. Earnings per share are projected to grow 17% over the next 3-5 years, with the industry expected to grow at a 14% clip. On May 4, the Board of Directors declared a quarterly cash dividend of 12 cents per share on its common stock. KLAC is currently yielding 0.88%, with a five-year average dividend yield of 0.37%. The company’s return on equity more than doubles that of the industry average—17% compared to 7%. 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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FIG - Fortress Investment Group - assets under management surged 72% year-over-year

Fortress is a young company that is clearly on the rise. Assets under management shot up 72% during the first quarter over the same period last year to $35.96 billion. Over the past month, this year's earnings estimates have increased 18 cents to $1.13 per share. Analysts are projecting that earnings will grow at an annual rate of 60% over the next three to five years. Full Analysis Fortress Investment Group (FIG) is a publicly owned investment management firm. The firm provides its services to pension funds, endowments and foundations, financial institutions, funds of funds and high net worth individuals. It manages hedge funds and publicly traded alternative investment vehicles. The firm invests in the public equity, fixed income, and alternative investment markets of the United States and across the globe. Fortress Investment Group was founded in 1998 and is based in New York City with additional offices in Dallas, Texas; San Diego, California; Hong Kong; London, United Kingdom; Rome, Italy; Frankfurt, Germany; Geneva, Switzerland; Toronto, Canada; and Sydney, Australia. The company reported strong first-quarter earnings in which assets under management surged 72% year-over-year to $36 billion. This was the first time that the New York-based firm has announced quarterly earnings as a publicly traded company. Fortress, which held its initial public offering of stock in February, is at the vanguard of a growing movement in which alternative-investment companies are tapping the public markets. For the first quarter, Fortress earned $62.1 million, down from $130.3 million in the year-earlier quarter. The company's revenue rose 13% to $416.3 million. Fortress didn't give a per-share earnings figure for the entire quarter, but said it had net income per unit of 36 cents from Jan. 1 through Jan. 16 and a net loss per share of 87 cents for the remainder of the first quarter, after the firm reorganized ahead of its IPO. "Fortress's strong results reflect our ability to raise new capital and generate top tier investment returns in our managed funds," said Wesley Edens, Chairman and Chief Executive Officer of Fortress. "Looking ahead, we see significant opportunities to invest capital and believe that our continued focus on delivering strong fund returns will create value for our shareholders." 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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SAFM - Sanderson Farms, Inc - crushed analysts’ earnings expectations in 3 of the past 4 quarters by an average of 144.6%

Sanderson Farms, Inc. (SAFM) absolutely crushed analysts’ earnings expectations in three out of the past four quarters by an average margin of 144.6%. The company benefited from higher overall prices in the poultry markets during the past quarter. Consensus earnings estimates have shot upward over the past month. SAFM has a price-to-book ratio of 2.5, compared to 4.6 for the market. Full Analysis Sanderson Farms, Inc. produces, processes, markets and distributes fresh, frozen and further processed chicken, as well as over 100 frozen prepared entrees and other specialty food products. The company’s customers include distributors, food service operators, club stores and retailers primarily in the Southeast, Southwest, Midwest and West. SAFM absolutely crushed the Street’s earnings estimate in three out of the past four quarters by an average margin of 144.6%. In two of those three quarters it was able to produce a triple-digit percentage earnings surprise. A double-digit percentage surprise was accomplished in the other. On May 24, the company easily surpassed the consensus estimate by 232.5% when it posted second-quarter fiscal 2007 earnings per share of $1.33. Analysts were calling for profits of only 40 cents per share. SAFM lost 83 cents per share in the prior-year period. Net sales came in at $360.5 million, compared with $239.1 million for the second quarter of fiscal 2006. For the first six months of the year, profits amounted to $24.1 million, or $1.19 per share, versus a net loss of $25.3 million, or $1.26 per share, for the first six months of last year. Net sales soared 37.4% to $653.2 million from $475.3 million. Chairman and CEO Joe F. Sanderson, Jr. stated. "We are pleased with our performance during the second quarter and our return to profitability. The improvement in our financial results reflects higher overall prices in the poultry markets compared with both the prior year period and the first fiscal quarter of this year." SAFM stated that overall market prices for poultry products were significantly higher than a year prior, with whole chicken prices up 11.9% and bulk leg quarter prices up 125.3%. The consensus earnings estimate for this quarter and next increased substantially over the past 30 days. Estimates for this quarter increased 35 cents to $1.22, while estimates for next quarter are up 30 cents to $1.14. Profit forecasts for this year have risen 74 cents to $2.71, while estimates for next year jumped 43 cents to $3.69. The Board of Directors declared a quarterly cash dividend of 12 cents per share on Apr 26. The company has a current dividend yield of 1.1% and a five-year average dividend yield of 1.4%. SAFM is currently trading at a valuation of 15.9x current fiscal-year estimated earnings and at 11.7x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.6x current fiscal-year estimated earnings and at 15.5x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.5, compared to 4.6 for the market. SAFM’s return on equity tops that of the industry average—10% compared to 7%. 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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MGA - Magna International, Inc - over the past 30 days, 12 of the 18 covering analysts upped their forecasts

Magna International, Inc. (MGA) reported first-quarter earnings per share of $1.96 which easily surpassed the consensus estimate of $1.33. Revenues came in at $6.4 billion—a record for the company. Analysts have been upping their profit forecasts for this Zacks #1 Rank stock. MGA has a price-to-book ratio of 1.5, compared to 4.6 for the market and 2.2 for the industry. Full Analysis Magna International, Inc. designs, develops and manufactures automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in three geographic segments: North America, Europe, and Rest of World (primarily Asia, South America and Africa). On May 10, MGA posted first-quarter profits of $1.96 per share, which crushed the consensus estimate of $1.33 by 47.4%. However, compared to earnings in the prior-year period, the result was down three cents. Revenues of $6.4 billion were a record for the company and represented a 6.7% increase over the $6.0 billion achieved in the first quarter of 2006. The company cited increases in its North American, European and Rest of World production sales along with complete vehicle assembly sales as fueling quarterly revenues. Looking ahead, MGA projects total sales between $23.5 billion and $24.8 billion, based on light vehicle production volumes of about 15.3 million units in North America and 15.5 million units in Europe. Analysts responded to the company’s strong forecast by upping their earnings estimates. Consensus estimates for this year have risen 51 cents to $6.49 over the past 30 days, with 12 of the 18 covering analysts upping their forecasts. Estimates for next year jumped 37 cents to $7.13 over the same period of time. Upward revisions were submitted by 11 of the 18 covering analysts. Earnings per share are projected to grow 10% over the next 3-5 years. On May 10, the Board of Directors declared a quarterly cash dividend of 24 cents per share of stock. The dividend is payable on Jun 15 to shareholders of record as of May 31. MGA has a current dividend yield of 1.03%. Last month MGA announced that Russian billionaire Oleg Deripaska, through his Basic Element holding company, will invest $1.54 billion in the company. Chairman Frank Stronach stated, "Our partnership will accelerate Magna's growth in Russia and surrounding countries, markets that we see as holding significant opportunities for us." The move caused many to speculate that MGA is gathering cash in an attempt to make a bid for Chrysler. MGA is currently trading at a valuation of 14.4x current fiscal-year estimated earnings and at 13.1x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.6x current fiscal-year estimated earnings and at 15.5x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.5, compared to 4.6 for the market and 2.2 for the industry. 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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MAN - Manpower, Inc - strong history of exceeding analysts’ earnings expectations coupled earnings estimates trending higher

Manpower, Inc. (MAN), which was first featured as a Growth and Income stock on Dec 13, has returned 24%. The company exceeded analysts’ earnings expectations in 13 out of the past 16 quarters. Since MAN announced its quarterly results, analysts have been upping their profit forecasts. Earnings per share are forecasted to grow 17% over the next 3-5 years. This Zacks #1 Rank stock has a current and five-year average dividend yield of 0.69%. Full Analysis Manpower, Inc. offers employers a range of services for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. The company’s worldwide network consists of 4,400 offices in 73 countries and territories. It has been almost six months since MAN was last presented as a Growth and Income pick on Dec 13. In the time that has elapsed, the stock returned 24%. Most importantly, the company is still a Zacks #1 Rank stock due to its strong history of exceeding analysts’ earnings expectations coupled earnings estimates trending higher. MAN topped the consensus earnings estimate in 13 out of the past 16 quarters. In nine out of the 13 aforementioned quarters, the company managed to produce a double-digit percentage surprise. Earnings per share grew 27.3% over the past five years. On Apr 20, MAN posted first-quarter profits of 69 cents per share. With the Street calling for 61 cents, the result equated to a 13.1% positive surprise. The company earned 48 cents per share in the prior-year period. Revenues jumped 17.0% to $4.54 billion from $3.88 billion a year earlier. Chairman and CEO Jeffrey A. Joerres stated, "The strength of our European geography combined with company-wide operational excellence resulted in a very strong first quarter for Manpower. Our Other EMEA segment (Europe excluding France and Italy) increased profitability by 144%, while Manpower France, our single largest operation, increased profitability by 33% on a constant currency basis." Since MAN announced its quarterly results, analysts have been upping their profit forecasts. Consensus estimates for this quarter and next have risen nine cents and seven cents to $1.17 and $1.36, respectively, over the past 60 days. Estimates for this year and next are up 29 cents and 37 cents to $4.66 and $5.43, respectively, over the same period of time. Earnings per share are forecasted to grow 17% over the next 3-5 years. On May 2, the Board of Directors declared a dividend of 32 cents per share, payable on Jun 14 to shareholders of record as of Jun 5. MAN has a current and five-year average dividend yield of 0.69%. The company’s return on equity, a common measure of profitability, tops that of the industry average—14% compared to 10%. 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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SLF - Sun Life Financial, Inc - return on equity tops that of the industry average - 15% compared to 10%

Sun Life Financial, Inc. (SLF) exceeded analysts’ earnings expectations for eight consecutive quarters by an average margin of 11.5%. In early May the company reported record first-quarter profits of 96 cents per share. SLF has enhanced shareholder value through both share repurchases and dividend payments. The company has a current and five-year average dividend yield of 2.46%. Its return on equity tops that of the industry average—15% compared to 10%. Full Analysis Sun Life Financial, Inc. is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. The company has operations in Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. SLF beat analysts’ earnings expectations for eight consecutive quarters by an average margin of 11.5%. During this period of time, the company managed to achieve four double-digit percentage surprises. Earnings per share grew 20.7% over the past five years. On May 1, SLF reported record first-quarter profits of 96 cents per share. The result beat the consensus earnings estimate of 81 cents by 18.5%. Even more impressive was the year-over-year improvement—29.7% when compared to earnings of 74 cents per share in the prior-year period. Revenues climbed 5.7% to $5.6 billion from $5.3 billion in the first quarter of last year. Assets under management at its MFS Investment Management segment exceeded $200 billion for the first time on Apr 13. CEO Donald A. Stewart stated, "Our diversified earnings platform once again delivered strong earnings growth this quarter as we continued to invest in global distribution and growth opportunities. Looking ahead, our strong risk management capabilities will enable us to more effectively manage through changing economic conditions." The consensus estimate for this year has risen 12 cents to $3.49 over the past 30 days. Profit forecasts for next year jumped 13 cents to $3.87 over the same period of time. Earnings per share are projected to grow 11% over the next 3-5 years. SLF has enhanced shareholder value through both share repurchases and dividend payments. The company bought back approximately 2.4 million common shares for $124 million during the first quarter. On May 1, the Board of Directors declared a quarterly cash dividend of 32 cents per common share. The dividend is payable on Jul 3 to shareholders of record as of May 23. SLF has a current and five-year average dividend yield of 2.46%. On May 31, SLF completed its acquisition of Genworth Financial, Inc.'s U.S. Employee Benefits Group. The deal is said to complement SLF’s group business platform and increase the company's market share across its U.S. group lines of business. The company’s return on equity tops that of the industry average—15% compared to 10%. 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 - manufacture and distribution of aerospace and industrial products worldwide

Barnes Group has enjoyed a nice runup due to its strong earnings momentum. The company has met or exceeded earnings estimates in nine out of the past 10 quarters, with the past three quarters posting double-digit positive surprises. Five analylsts have raised their estimates for this year, while three have done so for next year. Over the past month, this year's numbers have risen 24 cents to $1.84 per share. Next year's estimates have jumped 41 cents to $2.26 per share. Full Analysis Barnes Group, Inc. (B) engages in the manufacture and distribution of aerospace and industrial products worldwide. It operates in three segments: Barnes Distribution, Associated Spring, and Barnes Aerospace. Barnes Distribution segment distributes maintenance, repair, operating, and production supplies, as well as provides inventory management and logistic services. It also offers a range of replacement parts and other products, including fasteners, electrical supplies, hydraulic components, chemicals, and security products; die springs and nitrogen gas springs; and mechanical struts and standard parts, such as coil and flat springs to small repair shops, railroads, utilities, food processors, chemical producers, and vehicle fleet operators. In mid-May, the company said its first-quarter profit climbed 50% as sales grew in all business segments and a higher proportion of those increased sales were higher margin items. Earnings rose to $27.7 million, or 50 cents per share, compared with $18.5 million, or 36 cents per share, in the previous year. Analysts predicted net income of 40 cents per share. Revenue for the quarter gained 20% to $360.7 million from $299.9 million, topping Wall Street's estimate of $340.4 million. Management also raised guidance going forward. The company, which last year earned $1.39 per share, now anticipates full-year 2007 net income from $1.74 to $1.83 per share. Earlier this year it forecast 2007 earnings between $1.53 and $1.60 per share. Analysts expect a full-year profit of $1.60 per share. "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," said Chief Executive Gregory F. Milzcik. 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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ASPV - Aspreva Pharmaceuticals Corp - earned $1.03 per share, well above the consensus estimate of 76 cents per share

Aspreva's recent first-quarter results continued the trend of solid outperformances for the company. It has comfortably exceeded earnings estimates in seven out of the past eight quarters, while meeting estimates in one. Over the past month, this year's estimates have jumped 25 cents to $3.88 per share, while next year's numbers have soared 85 cents to $5.46 per share. The stock is trading at a very cheap 3.7x next year's estimates. Full Analysis Aspreva Pharmaceuticals Corporation (ASPV) engages in the identification, development, and commercialization of approved drugs and drug candidates for new indications. It has two phase III clinical development programs underway to evaluate CellCept, an orally delivered immunosuppressant agent, in the treatment of the autoimmune diseases, such as lupus nephritis and pemphigus vulgaris. The company reported fabulous first-quarter which significantly exceeded earnings estimates. ASPV earned $1.03 per share, well above the consensus estimate of 76 cents per share. Total revenue for the first quarter 2007 was $59.3 million compared to $52.5 million in the fourth quarter 2006. Aspreva continues to anticipate that revenue for the full year will be in excess of $245 million. Research and Development expenses in the first quarter of 2007 were $12.3 million, compared to $9.8 million in the first quarter 2006 and $13.6 million in the fourth quarter 2006. ASPV's R&D expenses reflect the activity in Aspreva's two active clinical programs as they continue to mature and also reflect the closing out of clinical development work in myasthenia gravis. Of note was the recording of last patient last dose in the induction phase of the lupus nephritis study in March 2007 and the continued enrollment into the pemphigus vulgaris trial. Increased spending in support of business development efforts also contributed to R&D expenses for the quarter. "In the first quarter, we made meaningful progress in our two clinical programs, including the milestone of last patient last dose which we reached in March for the induction phase of our lupus nephritis trial. We look forward to receiving the preliminary results of this study evaluating the use of CellCept in the treatment of this disease," said Richard M. Glickman, Chairman and Chief Executive Officer of Aspreva. Mr. Glickman added, "As we head into the second quarter, the strength of our balance sheet and the depth of our clinical, regulatory, and commercialization skills, leave us well-positioned for the next phase of our growth as a pharmaceutical company." 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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HOS - Hornbeck Offshore Services, Inc - Eight analysts raised their estimates for this quarter while six did so for next quarter

Hornbeck Offshore Services, Inc. (HOS) beat the Street’s earnings estimate in nine out of the past 12 quarters by an average margin of 25.3%. Consensus estimates have risen over the past 30 days for this Zacks #1 Rank stock. Earnings per share are projected to grow 10% over the next 3-5 years. The company has a price-to-book ratio of 2.3, compared to 4.5 for the market. Full Analysis Hornbeck Offshore Services, Inc. is a leading provider of technologically advanced, new generation offshore supply vessels primarily in the U.S. Gulf of Mexico and select international markets, and is a leading transporter of petroleum products through its fleet of ocean-going tugs and tank barges primarily in the northeastern U.S., the U.S. Gulf of Mexico and in Puerto Rico. The company currently owns a fleet of over 60 vessels. HOS exceeded analysts’ earnings expectations in nine out of the past 12 quarters by an average margin of 25.3%. In seven out of the nine aforementioned quarters, the company surprised by a double-digit percentage. In fact, over the past 12 quarters, HOS has never produced a negative earnings surprise. On May 3, HOS reported first-quarter profits of $17.5 million, or 67 cents per share, versus $14.9 million, or 54 cents per share in the prior-year period. The result amounted to a 24.1% positive surprise and year-over-year improvement for the company. Revenues came in at $68.1 million, an 11.5% improvement when compared to $61.1 million for the first quarter of 2006. In addition to posting strong first-quarter results, HOS also announced that it has expanded its multi-purpose supply vessel program to include a 430-ft. new generation DP-3. The projected delivery date is the third quarter of 2009. Furthermore, HOS also stated it has an exclusive four-year option to construct two additional "sister vessels" based on the same DP-3 MPSV design. Chairman, President and CEO Todd Hornbeck stated, "Given current market demand visibility through at least 2011 and the level of customer inquiries for this type of equipment, we believe that we will be able to secure a multi-year term contract for this new DP-3 vessel at dayrates commensurate with our historical capital investment parameters." Consensus estimates for this quarter and next are each up three cents to 63 cents and 68 cents, respectively, over the past 30 days. Eight analysts raised their estimates for this quarter while six did so for next quarter. Profit forecasts for this year and next have risen 20 cents and 16 cents to $2.62 and $3.16, respectively, over the past month. Upward revisions were submitted by nine analysts for this year and by seven analysts for next year. Earnings per share are projected to grow 10% over the next 3-5 years. HOS is currently trading at a valuation of 14.5x current fiscal-year estimated earnings and at 12.1x 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 2.3, 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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PRA - ProAssurance Corp - upward revisions by all four covering analysts

ProAssurance Corporation (PRA), a Zacks #1 Rank stock, topped the consensus earnings estimate in six consecutive quarters and in nine out of the last 10. Since the release of PRA’s first-quarter results, analysts have been upping their earnings estimates for both this year and next. Earnings per share are projected to grow 11% over the next 3-5 years. PRA has a price-to-book ratio of 1.7, compared to 4.5 for the market. Full Analysis ProAssurance Corporation is the nation's fourth largest writer of medical professional liability insurance, selling primarily to physicians, dentists, other healthcare providers and healthcare facilities, principally in the mid-Atlantic, Midwest and Southeast. PRA also engages in the legal professional liability business in the Midwest. PRA exceeded analysts’ earnings expectations in six consecutive quarters and in nine out of the last 10. The company met or topped the Street’s estimate in 14 out of the past 16 quarters. On May 9, PRA reported first-quarter profits $1.02 per share, compared to 84 cents per share in the prior-year period. In addition to the 21.4% year-over-year improvement, the company managed to beat the consensus estimate by two cents. Total revenues came in at $178.9 million versus $178.2 million in the first quarter of last year. Gross premiums written climbed 1.7% to $185.3 million. The company’s first-quarter combined ratio, a measure of profitability for insurance companies, improved to 91.8% from 96.6%. 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. Since the release of PRA’s first-quarter results, analysts have been upping their earnings estimates for both this year and next. The consensus estimate for this year currently resides at $4.28. This represents a 10-cent jump when compared to the consensus of 30 days prior, and represents upward revisions by all four covering analysts. Profit forecasts for next year have risen by 25 cents to $4.63 over the same period of time, with three of the four covering analysts submitting upward revisions. Earnings per share are projected to grow 11% over the next 3-5 years, in line with the expected growth rate of the industry. On Apr 2, the Board of Directors authorized a $150 million repurchase program to buy back shares or debt securities. As of Apr 27, the company reported that it repurchased approximately 155,000 shares for a total cost of $8.1 million. PRA is currently trading at a valuation of 13.1x current fiscal-year estimated earnings and at 12.1x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.4x 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. 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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PNX - The Phoenix Companies, Inc - surprised to the upside in three straight quarters by an average margin of 55.3%

The Phoenix Companies, Inc. (PNX) topped analysts’ earnings expectations in three straight quarters by an average margin of 55.3%. Consensus earnings estimates for both this year and next have risen over the past month. In late April, the Board of Directors declared an annual cash dividend of 16 cents per share. PNX has a price-to-book ratio of only 0.78, compared to 4.5 for the market and 1.3 for the industry. Full Analysis The Phoenix Companies, Inc. is a leading provider of life insurance, annuities and investment products for the accumulation, preservation and transfer of wealth. The company offers a broad portfolio of products and services to help meet the needs of affluent and high-net-worth individuals and of institutions. When PNX beats the consensus earnings estimate, it usually does so by a rather large percentage. The company surprised to the upside in three straight quarters by an average margin of 55.3%. On May 3, PNX posted first-quarter profits of 33 cents per share, compared to 20 cents per share in the prior-year period. With analysts calling for 23 cents per share, the company posted an impressive 43.5% earnings surprise. Life and Annuity pre-tax operating income soared 64.2% to $62.9 million from $38.3 million in the first quarter of 2006. Assets under management rose 23.2% to $45.7 billion. Chairman, President and CEO Dona D. Young stated, "This quarter provides a strong start to the year for both top and bottom line growth and continues the favorable results of last year's second half." The consensus earnings estimate for this year currently sits at $1.08, a 12-cent improvement when compared to the consensus of 30 days earlier. Six of the eight covering analysts raised their estimates. Profit forecasts for next year have risen by two cents to $1.11 over the past month, with three of the seven covering analysts upping their estimates. Earnings per share are expected to grow 10% over the next 3-5 years. On Apr 26, the Board of Directors declared an annual cash dividend of 16 cents per share. The dividend is payable on Jul 11 to shareholders of record as of Jun 13. PNX has a current dividend yield of 1.02%. PNX is currently trading at a valuation of 14.6x current fiscal-year estimated earnings and at 14.2x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.5x current fiscal-year estimated earnings and at 15.4x next fiscal-year estimated earnings. The company has a price-to-book ratio of only 0.78, compared to 4.5 for the market and 1.3 for the industry. 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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MTW - The Manitowoc Co - return on equity more than doubles that of the industry average—29% compared to 14%

The Manitowoc Company, Inc. (MTW) exceeded analysts’ earnings expectations in nine straight quarters, most recently by 14.8% in the first quarter. Earnings per share are projected to grow 30% over the next 3-5 years. All seven covering analysts upped their profit projections after the company issued bullish guidance for the full year. MTW’s return on equity more than doubles that of the industry average—29% compared to 14%. Full Analysis The Manitowoc Company, Inc. engages in the manufacture and marketing of cranes and related products, foodservice equipment and marine products in the United States and internationally. MTW has operations in over 20 countries around the world. MTW topped the consensus earnings estimate in nine straight quarters by an average margin of 10.2%. Moreover, the company met or beat the Street’s estimate in 15 out of the past 16 quarters (surprising to the upside on 13 occasions). Earnings per share grew 33% over the past five years. On Apr 30, MTW reported first-quarter profits of $1.01 per share, surpassing analysts’ expectations of 88 cents by 14.8%. Even more impressive was the 114.9% year-over-year improvement compared to earnings of 47 cents in the prior-year period. Revenues experienced a 36.2% leap to $862.1 million from $633.0 million in the first quarter of last year. Chairman and CEO Terry D. Growcock stated, "Building on our outstanding performance in 2006, our first-quarter 2007 results significantly eclipsed those from the first-quarter of 2006 and are solidly positioning us for yet another stellar year." Citing underlying strength in its end markets, along with continuing improvements in its manufacturing efficiency, MTW boosted its full-year earnings guidance for the second time this year. The company now projects profits between $4.40 and $4.50 per share, compared to its previous outlook which called for profits between $4.20 and $4.30 per share. Analysts adjusted their estimates in response to MTW’s optimistic outlook. The consensus estimate for this year currently sits at $4.61 and represents a 31-cent improvement overt the past 30 days. All seven covering analysts upped their estimates. Profit forecasts for next year have soared 50 cents to $5.51 over the same period of time, with all seven covering analysts submitting upward revisions. Earnings per share are projected to grow 30% over the next 3-5 years, with the industry expected to grow by only 12%. In late April, the Board of Directors declared a quarterly cash dividend of 3.5 cents per share of common stock. The dividend is payable on Jun 11 to shareholders of record as of Jun 1. MTW’s return on equity, a common measure of profitability, more than doubles that of the industry average—29% compared to 14%. 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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STR - Questar Corp - company has raised its dividend 34 times during the past 35 years

Questar Corporation (STR) exceeded analysts’ earnings expectations in 15 out of the past 16 quarters. The company recently raised its full-year profit and production guidance. Consensus earnings estimates for both this year and next are up over the past two months for this Zacks #1 Rank stock. On May 14, the Board of Directors declared a two-for-one stock split and raised the company’s dividend. STR has a current dividend yield of 0.93%. Full Analysis Questar Corporation is a natural gas-focused energy company with five major lines of business: gas & oil exploration and production; midstream field services; gas & oil marketing and trading; interstate gas transportation and storage; and retail gas distribution. When it comes to beating the Street’s earnings estimate, STR has a nearly flawless track record. The company exceeded analysts’ earnings expectations in 15 out of the past 16 quarters. In the remaining quarter, STR managed to match the consensus estimate. On Apr 25, STR posted first-quarter profits of $151.1 million, or $1.72 per share, compared to $137.2 million, or $1.57 per share, in the prior-year period. With analysts calling for $1.51, the company surprised by 13.9%. The result equated to a 9.6% year-over-year improvement. Revenues declined to $872.1 million from $911.4 million. Chairman, President and CEO Keith Rattie stated, "We're off to a good start in 2007. Accordingly, we're raising our 2007 production guidance. We're also raising the bottom end of the range for our 2007 earnings guidance, even after adjusting for the likelihood that Rockies natural gas prices will be significantly lower this summer than we had assumed in our previous guidance." STR now projects full-year 2007 earnings per share between $5.20 and $5.35, compared to its previous outlook of profits between $5.15 and $5.35 per share. The company’s production is now expected to be between 135 and 138 Bcfe, versus its previous forecast of between 133 and 136 Bcfe. The consensus earnings estimate for this year currently sits at $5.45—up eight cents over the past 60 days. Profit forecasts for next year have risen by 29 cents to $6.02 over the same period of time. Earnings per share are forecasted to grow 10% over the next 3-5 years, while the industry is expected to grow by 7%. On May 14, the Board of Directors declared a two-for-one stock split, to be distributed on Jun 18 to shareholders of record as of Jun 4. The Board also boosted its common stock dividend to 24.5 cents per share from 23.5 cents on a pre-split basis. The dividend represents STR's 250th straight dividend without a reduction. Moreover, the company has raised its dividend 34 times during the past 35 years. STR has a current dividend yield of 0.93%. The company’s return on equity, a common measure of profitability, tops that of the industry average—21% 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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WHR - Whirlpool Corp - earnings estimates for this year and next have risen over the past two months

Whirlpool Corporation (WHR) exceeded analysts’ earnings expectations for 10 consecutive quarters and in 14 out of the past 16. Consensus earnings estimates for this year and next have risen over the past two months for this Zacks #1 Rank stock. The Board of Directors recently declared a 43-cent quarterly dividend and announced that it will resume its previously authorized $500 million share repurchase program. WHR has a current dividend yield of 1.5%. Full Analysis Whirlpool Corporation manufactures and markets home appliances worldwide. The company’s principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, room air-conditioning equipment, and mixers and other small household appliances. WHR has more than 70 manufacturing and technology research centers around the world. WHR exceeded analysts’ earnings expectations for 10 consecutive quarters and in 14 out of the past 16. The company has been on an impressive run of late. In each of the last five quarters WHR managed to surprise by a double-digit percentage. On Apr 24, WHR posted first-quarter profits of $1.55 per share. With analysts calling for $1.13, the company easily surpassed the consensus estimate by an impressive 37.2%. Revenues rose 24.0% to $4.39 billion from $3.54 billion in the prior-year period. Excluding last year’s acquisition of Maytag, revenues still experienced a 2% increase. Chairman and CEO Jeff M. Fettig stated, "Our first-quarter results reflect solid performance from our global businesses and continued strong consumer preference for our brand innovations." WHR recently announced its first ad campaign for Maytag since it was acquired last year. The new commercials will feature the new Maytag Repairman (the original was created in 1967) and will highlight several products including the Maytag Epic Front Load washer and dryer, the new Maytag Centennial Top Load washer and dryer and the Maytag Ice2O French door bottom-freezer refrigerator. Since WHR released its first-quarter results, analysts have grown increasingly optimistic about the company’s future earnings potential. The consensus estimate for this year currently resides at $8.37, marking a 40-cent jump over the past 60 days. Profit forecasts for next year have risen by 29 cents to $9.96 over the past two months. Earnings per share are projected to grow 15% over the next 3-5 years, in line with the expected growth rate of the industry. On Apr 17, the Board of Directors declared a quarterly cash dividend of 43 cents per common share of stock. The dividend is payable on Jun 15 to shareholders of record as of May 18. WHR has a current dividend yield of 1.54%. Moreover, the company announced that it will resume its previously authorized $500 million share repurchase program starting in the second quarter. The buyback program was put on hold while the company worked through its Maytag acquisition, opting to pay down the $800 million debt that came along with the purchase. 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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DECK - Deckers Outdoor Corp - seventh consecutive quarter the company has exceeded estimates by double-digit percentages

Deckers Outdoor Corporation (DECK) has experienced phenomenal growth, largely due to the success of its UGG Brand. The company recently reported first-quarter earnings that surpassed analysts' expectations and forecasted higher full-year earnings and revenue growth. Full Analysis Deckers Outdoor Corporation designs, manufactures, and markets innovative, function-oriented footwear and apparel that have been developed for high-performance outdoor, sports and other lifestyle related activities, as well as for casual use. The company operates three global brands including: TEVA Footwear, UGG Australian Footwear, and Simple Shoes. On Apr 26, Deckers reported first-quarter earnings of 75 cents per share, up from 44 cents in the year-ago period and 24 cents above expectations. Driving the earnings growth, revenues rose 29.6% to $72.6 million, above analysts' estimates of $65 million. Teva, UGG and Simple Shoes reported sales growth of 11.6%, 67.7% and 14%, respectively. UGG's outstanding results were due to increased demand for the expanded spring line which includes espadrilles, sandals, flip flops and boots. Looking forward, Deckers now expects second-quarter revenue growth of 15% and an 80% decline in year-over-year earnings per share. Also, for full-year 2007, the company expects revenue growth of 25% over 2006, up from prior guidance of 15%. Lastly, fiscal 2007 earnings are expected to grow 15%, up from previous forecasts of roughly 5%. The latest earnings announcement marked the seventh consecutive quarter the company has exceeded estimates by double-digit percentages. After the release, analysts increased their full-year profit projections by 42 cents to $3.86. As testament to the company�s strong fundamentals, Zacks currently ranks Deckers a number one out of 12 companies in the Shoes and Related Apparel category. Most recently, on May 16, a retail analyst at a major bank initiated coverage on Deckers with an 'Overweight' rating. The analyst believes substantial upside remains for earnings and sales, with international business comprising an increasing percentage of sales over the next five years. Furthermore, the UGG Brand could see sales triple over the next five years as the segment further expands into warmer weather products and men�s shoes. 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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CMG - Chipotle Mexican Grill, Inc - reiterated its intention to grow EPS at least 25% in the long term

Chipotle is enjoying rapid growth as customers are flocking to the restaurants. Earnings are clearly reflecting this. The company has crushed estimates for six straight quarters by at least 17% each time. Seven analysts have raised their estimates for this year and next year. Over the past month, this year's estimates have increased 10 cents to $1.68 per share. Earnings should grow at a 25.9% clip over the next three to five years. Full Analysis Chipotle Mexican Grill, Inc. (CMG) engages in the development and operation of fast-casual, Mexican food restaurants in the United States. As of December 31, 2006, it operated 581 restaurants, including 8 franchise restaurants. The company was founded in 1993 and is based in Denver, Colorado. The company reported outstanding results for the quarter ending March 31. The casual fast-food chain specializing in gourmet Mexican burritos saw first-quarter earnings of 38 cents a share on revenue of $236.1 million, beating Street estimates of 32 cents on $228 million and providing a quarterly revenue gain of 26.2% vs. the same period just one year ago. Management also reiterated its intention to grow EPS at 25% in the long term and even added an "at least" to that statement, indicating that 25% may turn out to be a conservative number. On top of that, restaurant operating margins during the quarter increased in spite of higher operating costs. "We are pleased with our strong first quarter financial results, which reflect our continued progress in pursuing our Food With Integrity mission, as well as progress toward building a culture which appeals only to our highest performing employees," said Chipotle Founder, Chairman and CEO Steve Ells." "We recently introduced naturally raised chicken in one of our largest markets, Colorado, and now two-thirds of the chicken we serve is naturally raised. As we advance Food With Integrity, we move closer to our goal of changing the way Americans think about and eat fast food." 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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MMS - MAXIMUS, Inc - company came in with a profit of 11 cents per share, versus a loss of three cents forecast by analysts

MAXIMUS, Inc. has experienced a surge in earnings estimates for both this year and next. Over the past month, this year's estimates have soared 50 cents to 89 cents per share, while next year's numbers have jumped 37 cents to $2.41 per share. MMS has exceeded analyst forecasts in each of the past four quarters. Full Analysis MAXIMUS, Inc. (MMS) provides consulting, systems solutions, and operations program management services to state and local government agencies, federal agencies, and commercial customers in the United States. It operates in three segments: Consulting, Systems, and Operations. Even though earnings declined year-over-year, they still crushed analyst expectations. The company came in with a profit of 11 cents per share, versus a loss of three cents forecast by analysts. Maximus paid $6.1 million in legal expenses, which dragged down earnings. Revenue declined less than 1% to $179.1 million, compared with $179.8 million in the year-ago period. The company said sales in last year's second quarter included $6.9 million in corrections and voter hardware revenue that has been divested. The company said its Texas Integrated Eligibility project, which aids enrollment in public assistance programs, brought in $11.2 million in sales, and contributed a pretax loss of $6.5 million, or 18 cents per share, to Maximus' second quarter. The company said it thinks its Texas operations will become profitable next quarter. Maximus' operations unit's sales came to $120.4 million, down a bit year-over-year from $121.2 million due to a loss on the company's Texas operations. More importantly, the company significantly raised guidance for the year. MMS said it expects earnings of 85 cents to 95 cents per share on sales of $740 million to $770 million, compared with February guidance of 40 cents to 80 cents per share on revenue of $710 million to $730 million. Analysts expected the company to post sales of $714.7 million with earnings of 42 cents per share for all of its fiscal 2007. Richard Montoni, Chief Executive Officer of MAXIMUS, commented, "Overall, we are pleased with the results for the quarter and, we are enthusiastic about the prospects for the remainder of fiscal 2007 and the outlook for fiscal 2008. The Texas project, which was generating significant losses over the last three quarters, will begin contributing to profitability in the second half of our fiscal year. The turnaround on this project, as well as the settlement in Ontario, reflects our strategy of aggressively addressing legacy challenges and optimizing current operations. On the new business front, we are focusing on work that meets our more stringent criteria designed to improve profitability and increase levels of client satisfaction over the longer term. Our pipeline of new opportunities remains strong at over $1.2 billion." 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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PCP - Precision Castparts Corp - Seven analysts have raised their estimates for this year and six have done so for next year

Precision Castparts is enjoying strong demand for its products which is evident from its earnings results. The company has exceeded estimates in an incredible 16 consecutive quarters. Year-over-year growth has been explosive over the past two years. Seven analysts have raised their estimates for this year and six have done so for next year. This year's estimates have jumped 52 cents to $6.04 per share over the past month. Full Analysis Precision Castparts Corp. (PCP) engages in the manufacture of metal components and products; and the provision of investment castings, forgings, and fasteners/fastener systems for critical aerospace and industrial gas turbine applications. It operates through four segments: Investment Cast Products, Forged Products, Fastener Products, and Industrial Products. The company offers its products through direct sales force, independent sales representatives, and distributors primarily in the United States, Europe, and Asia. Precision Castparts was founded in 1949 and is based in Portland, Oregon. PCP said fiscal fourth-quarter profit more than doubled on strong demand from the aerospace market and the addition of newly acquired businesses. Net income for the three months ending April 1 totaled $204.5 million, or $1.47 per share, versus $100.4 million, or 73 cents per share, in the fourth quarter of 2006. The recently completed quarter gained from a tax benefit of $6.2 million, or 4 cents per share. Sales surged 64% to $1.55 billion from $942.3 million. By segment, sales of investment cast products climbed 14% to $477.3 million on healthy demand from the aerospace market and the addition of GSC Foundries, which was acquired in February this year. Strong demand from aerospace customers and the acquisition of Special Metals also led to higher sales of forged products, which ballooned to $727.8 million from $241.4 million. The company's smaller fastener products segment posted a 22% jump in fourth-quarter sales to $341.4 million. ``Positive market forces and our strong market position have converged to create an outstanding environment for profitable growth,'' said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. ``The commercial aerospace cycle continues to be the primary engine for this growth. However, Special Metals is rapidly increasing its share in non-aerospace markets, Wyman-Gordon's extruded pipe sales still have a lot of runway, and the IGT market appears to be regaining strength." 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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