AXE - Anixter International, Inc - exceeded analysts’ earnings expectations for the past 10 quarters by an average margin of 13.7%

Anixter International, Inc. (AXE), which was first featured as a Value pick on Nov 21, has returned 30%. The company exceeded analysts’ earnings expectations for the past 10 quarters by an average margin of 13.7%. Earnings per share are projected to grow 14% over the next 3-5 years. This Zacks #1 Rank stock has a price-to-book ratio of 3.2, compared to 4.6 for the market. Full Analysis Anixter International, Inc. is the world’s leading distributor of communication products, electrical and electronic wire & cable. The company is also a leading distributor of fasteners and other small parts to original equipment manufacturers. AXE, which was first presented as a Value pick on Nov 21, has returned over 29%. Moreover, the company continues to trade at a discounted valuation and has maintained the coveted Zacks #1 Rank status. AXE exceeded analysts’ earnings expectations for the past 10 quarters by an average margin of 13.7%. The company surprised by a double-digit percentage in seven of the aforementioned 10 quarters. Moreover, AXE met or topped the consensus estimate in 16 straight quarters (surprising to the upside on 15 occasions). On Apr 24, AXE reported first-quarter profits of $1.19 per share. The result beat the consensus estimate of $1.09 by 9.2% and soared past earnings in the prior-year period by 60.8%. Revenues came in at $1.33 billion, up 24.3% from the $1.07 billion achieved in the first quarter of 2006. President and CEO Robert Grubbs stated, "We are pleased to note that the same trends that drove record performance in 2006 have remained largely intact through the first few months of the New Year. Assuming strong market conditions and continued success in our ongoing initiatives to expand our business, we should be in a position to have another very good year." On May 21, AXE announced that it acquired Eurofast SAS, an aerospace fastener distributor, for about $27 million in cash. In 2007, Eurofast is forecasted to produce revenues of approximately $22 million. AXE stated that the acquisition provides the company with customers in France—a country in which it had little penetration prior to the purchase. Consensus earnings estimates for both this quarter and next have risen two cents to $1.30 and $1.39, respectively, over the past month, with one analyst upping his estimate. Profit forecasts for this year and next increased five cents and four cents to $5.22 and $5.82, respectively, over the same period of time. An upward revision was submitted by one of the covering analysts for both periods. Earnings per share are projected to grow 14% over the next 3-5 years. AXE is currently trading at a valuation of 14.3x current fiscal-year estimated earnings and at 12.8x 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 3.2, compared to 4.6 for the market. AXE’s return on equity more than triples that of the industry average—23% 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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MS - Morgan Stanley - sixth consecutive double-digit earnings surprise - estimates have been upwardly revised three times in the last three months

Morgan Stanley (MS) reported a record breaking second quarter, blowing away analyst estimates. Losses in the subprime area were overwhelmed by strong performances from most other segments. Look for the company’s strong fundamentals and consistent earnings momentum to fuel further price acceleration in the coming months. Full Analysis Morgan Stanley provides various financial products and services to clients and customers, including corporations, governments, financial institutions and individuals worldwide. The company operates in four segments: Institutional Securities, Global Wealth Management Group, Asset Management, and Discover. On Jun 20, Morgan Stanley reported second-quarter earnings of $2.45 per share, up from $1.85 in the year-ago period and 60 cents above expectations. Driving the earnings growth, revenues rose an amazing 32% to a record $11.5 billion, also beating analysts’ estimates of $10.03 billion. Record revenues from equity sales and trading (up 33% to $2.2 billion) and investment banking (up 65% to $1.7 billion) contributed heavily to the quarter’s performance. Meanwhile, the soon to be spun-off Discover unit posted a 38% decline in pre-tax income from year-ago numbers. Surprisingly, fixed income sales and trading net revenues were up 34% to $2.9 billion. CFO David Sidwell commented that the firm’s mortgage revenue fell from the first quarter, but other trading businesses like interest rate, currency and credit products helped offset the weakness. The Jun 20 earnings release marked the sixth consecutive double-digit earnings surprise. Full-year estimates have been upwardly revised three times in the last three months, most recently by three cents to $8.15. Look for an additional revision once analysts have a chance to digest the second quarter results. After climbing 43.5% in 2006, MS has risen 9.7% for 2007, just above the S&P 500 return of 7.4%. In fact, year-to-date, MS is outperforming most of its peers with the only exceptions being Goldman Sachs and Deutsche Bank, who are ahead only marginally. After reaching new highs on Jun 15, MS has pulled back slightly, largely due to declines in the overall market. The stock’s underlying trend is still in place and investors should expect strong momentum in the coming months. 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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HPQ - Hewlett-Packard Co - 5 of 11 quarters the company surprised to the upside by a double-digit percentage

Hewlett-Packard Company (HPQ) topped analysts’ earnings expectations in 11 consecutive quarters by an average margin of 11.4%. In addition to posting solid second-quarter results, HPQ raised its full-year earnings per share and revenue guidance. Consensus earnings estimates have risen over the past 60 days. Earnings per share are projected to grow 12% over the next 3-5 years. HPQ has a current dividend yield of 0.71%. Full Analysis Hewlett-Packard Company provides various products, technologies, software, solutions, and services to consumers, businesses and governments worldwide. The company operates in more than 170 countries around the world HPQ exceeded analysts’ earnings expectations in 11 consecutive quarters by an average margin of 11.4%. In five of the aforementioned 11 quarters the company surprised to the upside by a double-digit percentage. On May 16, HPQ posted second-quarter fiscal 2007 earnings per share of 70 cents, which beat the Street’s estimate by a penny and topped the prior-period’s result. Revenues increased 12.8% to $25.5 billion from $22.6 billion a year earlier. Revenues in the Americas climbed 11% to $10.7 billion, revenues in Europe, the Middle East and Africa experienced a 14% jump to $10.3 billion, and revenues in Asia Pacific rose 16% to $4.5 billion. Chairman and CEO Mark Hurd stated, "This was a strong performance for HP. We generated $3 billion of revenue growth, continued to expand earnings and achieved record cash flow from operations. While we still have considerable work ahead of us, I am confident we can continue to execute with discipline and deliver strong financial returns." In addition to posting solid second-quarter results, HPQ raised its full-year earnings per share guidance to between $2.51 and $2.53, compared to its prior outlook of $2.35 to $2.40 per share. Revenues are expected between $100.5 billion and $100.9 billion, up from its previous forecast between $98 billion and $99 billion. Over the past 60 days, consensus earnings estimates for this quarter and next are up four cents and two cents, respectively, to 65 cents and 77 cents. Profit forecasts for this year and next each jumped 12 cents to $2.77 and $3.09, respectively, over the past two months. Earnings per share are projected to grow 12% over the next 3-5 years. On May 18, the Board of Directors declared a regular cash dividend of eight cents per common share of stock. The dividend is payable on Jul 5 to stockholders of record as of Jun 13. HPQ has a current dividend yield of 0.71%. HPQ 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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CUB - Cubic Corp - company won a military training contract with a potential ceiling value of $468 million

Cubic Corporation's results prove that the defense business is in great shape. The company has a record backlog of $621 million, and has recently inked contracts that ensure this level will be stable or even grow. CUB has exceeded earnings estimates in five out of the past six quarters. Four analysts have raised their estimates for this year. Over the past 60 days, this year's estimates have risen 22 cents to $1.37 per share. Full Analysis Cubic Corporation (CUB) engages in the design, development, manufacture, and installation of defense electronics and transportation fare collection systems. Its Defense segment provides customized military range instrumentation systems, tactical engagement simulation systems, firearm simulation systems, communications and surveillance systems, surveillance receivers, power amplifiers, and avionics systems. It also offers training mission support, computer simulation training, distributed interactive simulation, development of military training doctrine, and field operations and maintenance services. The company's Transportation Systems segment offers automated fare collection systems for public transport authorities. Earlier this week, the company won a military training contract with a potential ceiling value of $468 million. Cubic Applications Inc., Cubic Corp.'s principal mission support services division, supplies full-spectrum mission support services at Fort Polk and Little Rock Air Force Base in Arkansas. The current contract with the joint readiness training center at Fort Polk was awarded in 2001 and is valued at close to $375 million. Cubic's second-quarter net income surged more than tenfold, due in large part to settlements of disputed customer payments. Net income jumped to $11.2 million, or 30 cents per share, from $729,000, or three cents per share, a year ago. Sales for the quarter increased 11% to $230 million, from $206.6 million a year ago. Second-quarter defense segment sales grew 13% to $164.8 million, from $145.2 million a year ago. Transportation systems increased revenue 7% to $62 million, from $57.8 million, due to sales growth in its European operations. 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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POR - Portland General Electric Co - beat the consensus estimate by 60.0% when it posted first-quarter earnings

Portland General Electric Company (POR) exceeded analysts’ earnings expectations in three out of the past four quarters by an average margin of 56.6%. Consensus earnings estimates for this year and next have risen over the past week. On May 2, the Board of Directors declared a quarterly cash dividend of 23.5 cents per share. This Zacks #1 Rank stock has a price-to-book ratio of 1.4, compared to 4.6 for the market and 1.9 for the industry. Full Analysis Portland General Electric Company engages in the generation, purchase, transmission, distribution and retail sale of electricity in the state of Oregon. The company also sells electricity and natural gas in the wholesale market to utilities and power marketers in the western United States. POR easily surpassed the Street’s earnings estimate in three out of the past four quarters by an average margin of 56.6%. In all three of the aforementioned quarters the company was able to produce a double-digit percentage earnings surprise. On Apr 30, POR beat the consensus estimate by 60.0% when it posted first-quarter earnings per share of 88 cents. Analysts were calling for profits of only 55 cents per share. POR lost nine cents per share in the prior-year period. Revenues came in at $436 million, compared with $381 million for the first quarter of last year. CEO and President Peggy Fowler stated. "We're pleased with the financial results for the first quarter. We remain focused on meeting our growing customer demand through strong operations, our capital investments and the execution of our Integrated Resource Plan." The consensus earnings estimate for this year currently sits at $1.86, up five cents over the past week. One analyst upped his estimate. Profit forecasts for next year have risen two cents to $1.92 over the same period of time, with one analyst also submitting an upward revision. On May 2, the Board of Directors declared a quarterly cash dividend of 23.5 cents per share. The dividend is payable on Jul 16 to shareholders of record at as of Jun 25, and marks a 4.4% increase when compared to the previous quarterly dividend. The company has a current dividend yield of 3.25%. POR is currently trading at a valuation of 14.9x current fiscal-year estimated earnings and at 14.4x 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 15.5x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.4, compared to 4.6 for the market and 1.9 for the industry. POR’s return on equity of 11% is in line with that of the industry average. 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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FDS - FactSet Research Systems, Inc - exceeded analysts’ earnings expectations for eight consecutive quarters

FactSet Research Systems, Inc. (FDS) has returned 26% since it was last featured as a Growth and Income stock on Jan 10 . The company topped the Street’s earnings estimate for eight consecutive quarters. Earnings per share are projected to grow 19% over the next 3-5 years. On Mar 20, the Board of Directors approved a 100% increase in the company’s quarterly cash dividend to 12 cents per share. Full Analysis FactSet Research Systems, Inc. is a leading provider of global financial and economic data and analytics to the investment community worldwide. Combining more than 200 databases into its own dedicated online service, the company also provides the tools to download, combine and manipulate financial data for investment analysis. FDS is up 26% since it was last featured as a Growth and Income pick on Jan 10. With analysts upping their earnings estimates, coupled with the company’s strong history of beating the Street, we still feel confident about FDS’s future prospects. FDS exceeded analysts’ earnings expectations for eight consecutive quarters. Moreover, the company met or topped the consensus estimate in 15 out of the past 16 quarters. Earnings per share grew 20.9% over the past five years. On Jun 19, FDS reported third-quarter fiscal 2007 profits of 52 cents per share, compared to 40 cents in the prior-year period. Analysts were calling for 51 cents. Revenues increased 22.6% to $121.1 million, versus $98.8 million in the third quarter of fiscal 2006. Subscriptions jumped $26.3 million, while client retention rate continued to eclipse the 95% plateau. For the first nine months of the year, profits came in at $78.9 million versus $59.5 million for the same period last year. Revenues advanced 22.8% to $346.3 million from $282.1 million. Chairman and CEO Philip A. Hadley stated, ''We are pleased to report a successful third quarter. We continued to experience subscription, workstation, and client growth due to momentum across many of our products and geographies.'' The consensus earnings estimate for this year currently resides at $2.01. Two of the seven covering analysts submitted upward revisions over the past seven days. Profit forecasts for next year have risen two cents to $2.36 over the past week, with two of the seven 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 at a 15% clip. On Mar 20, the Board of Directors approved a 100% increase in the company’s quarterly cash dividend to 12 cents per share. FDS has a current dividend yield of 0.70% and a five-year average dividend yield of 0.55%. The company’s return on equity more than doubles that of the industry average—25% 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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NTGR - NETGEAR, Inc - Net income $0.40 per diluted share - Analysts expected 34 cents per share

NETGEAR is enjoying strong demand for its products. The company posted a 17.7% earnings surprise in its first-quarter on a solid jump in revenues. Over the past 60 days, this year's earnings estimates have increased 12 cents to $1.55 per share, while next year's numbers have jumped 17 cents to $1.76 per share. The company has met or exceeded estimates in 12 out of the past 14 quarters. Five analysts have raised their estimates for this year. NETGEAR, Inc. (NTGR) engages in the design, development, and marketing of networking products for home users and small businesses worldwide. Its product offerings enable users to share Internet access, peripherals, files, digital multimedia content, and applications among multiple personal computers and other Internet-enabled devices. The company's ethernet networking products include switches; network interface cards, adapters, and bridges; peripheral servers, such as print servers and disk servers; and VPN firewalls. Its broadband access products comprise routers, gateways, IP telephony products, and wireless gateways. The company's network connectivity products consist of wireless access points, wireless network interface cards and adapters, media adapters, wi-fi phones, network attached storage, and powerline adapters and bridges. Net revenue for the first quarter ended April 1, 2007 was $173.6 million, a 36% increase as compared to $127.3 million for the first quarter ended April 2, 2006, and an increase of 6% as compared to $164.0 million in the fourth quarter of 2006. Net income, computed in accordance with GAAP, for the first quarter of 2007 was $14.0 million, or $0.40 per diluted share. This net income was an increase of 41% compared to net income of $9.9 million for the first quarter of 2006 and an increase of 4% compared to net income of $13.4 million in the fourth quarter of 2006. Analysts expected 34 cents per share. Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, "Revenue in the first quarter came in above guidance due to continued momentum across all channels. Product wise, there was good uptake on our RangeMax NEXT draft 11n products and ProSafe® Smart Switches. The market acceptance of our industry leading stackable Gigabit Smart Switches introduced in the prior fourth quarter is very encouraging. Among the 12 new products introduced in the first quarter of 2007, notable launches included the Digital Entertainer HD, the ProSafe Gigabit Power over Ethernet Smart Switches, and the channel bonding 100Mbps cable modems, which enabled us to penetrate the Japanese and Korean cable operator markets." The company said it agreed to buy privately-held Infrant Technologies Inc., a maker of data-storage equipment, for $60 million in cash. Netgear agreed to pay up to another $20 million over three years if Infrant reaches certain revenue targets. The acquisition "accelerates Netgear's participation in the expanding market for networked attached storage," the company said in a statement. 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 - beat the consensus earnings estimate of 81 cents by 18.5%

Sun Life Financial, Inc. (SLF) beat the Street’s earnings estimate in eight consecutive quarters by an average margin of 11.5%. Consensus earnings estimates are up over the past 30 days. SLF has returned value to its shareholders through both share repurchases and dividend payments. The company has a price-to-book ratio of 2.0, compared to 4.6 for the market. 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 key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. SLF exceeded analysts’ earnings expectations in eight consecutive quarters by an average margin of 11.5%. In half of the aforementioned quarters the company managed to surprise by a double-digit percentage. 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 jumped 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 earnings 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 returned value to its shareholders 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 2.5%. 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. SLF is currently trading at a valuation of 13.3x current fiscal-year estimated earnings and at 12.0x 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 15.5x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.0, compared to 4.6 for the market. SLF’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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RKT - Rock-Tenn Co - return on equity easily surpasses that of the industry average - 14% compared to 4%

Rock-Tenn Company (RKT), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for five straight quarters by an average margin of 62.7%. Consensus earnings estimates for this quarter and the full year have risen over the past month. The company has a price-to-book ratio of 2.3, compared to 4.6 for the market. Its return on equity easily surpasses that of the industry average—14% compared to 4%. Full Analysis Rock-Tenn Company is one of North America's leading manufacturers of packaging products, merchandising displays and recycled paperboard. The company operates manufacturing facilities throughout the United States, Canada, Mexico and Chile. When RKT exceeds analysts’ earnings expectations, it usually does so by a rather large percentage. The company beat the consensus estimate for five straight quarters by an average margin of 62.7%. On Apr 25, RKT reported second-quarter fiscal 2007 profits of 57 cents per share, compared with 22 cents per share in the prior-year period. The result represented a 16.3% positive surprise with analysts calling for earnings per share of 49 cents. Revenues jumped 10.6% to $585.7 million from 529.7 million in the second quarter of fiscal 2007. For the first half of the year, profits came in at $36.8 million versus a loss of $3.8 million for the first six months of last year. Revenues advanced 9.8% to $1.12 billion from $1.02 billion. Chairman and CEO James A. Rubright, "The record sales and strong income gains reflect the continued improvements we have achieved in our businesses. We still recorded the second highest quarterly Paperboard segment income and the highest net income in our company's history." The consensus earnings estimate for this quarter currently resides at 56 cents. When compared to the consensus of 30 days earlier, it has risen five cents. Profit forecasts for this year are up three cents to $2.17 over the same period of time. Earnings per share are projected to grow 8% over the next 3-5 years. On Jan 26, the Board of Directors boosted the company's quarterly cash dividend by 11% to 10 cents per share. RKT has a current dividend yield of 1.21%. Its return on equity easily surpasses that of the industry average—14% compared to 4%. RKT is currently trading at a valuation of 15.2x current fiscal-year estimated earnings and at 14.7x 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 2.3, compared to 4.6 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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CPO - Corn Products Intl - topped the consensus earnings estimate in three out of the past four quarters by an average margin of 32.6%

Corn Products International, Inc. (CPO) exceeded analysts’ earnings expectations in three out of the past four quarters by an average margin of 32.6%. In late April, the company reported record first-quarter earnings per share and revenues. CPO also raised its full-year 2007 profit guidance. Earnings per share are projected to grow 11% over the next 3-5 years. CPO has a current dividend yield of 0.83%. Full Analysis Corn Products International, Inc. is the world’s largest producer of dextrose and a leading regional manufacturer of starches, syrups and glucose. The company provides a wide variety of ingredients to customers in more than 60 industries, including the food, beverage, pharmaceutical, animal feed, corrugating, paper and textile sectors. CPO has topped the consensus earnings estimate in three out of the past four quarters by an average margin of 32.6%. In all three of the aforementioned quarters CPO surprised to the upside by a double-digit percentage. Earnings per share grew 17.0% over the past five years. On Apr 24, 2007, CPO reported first-quarter profits of 66 cents per share. With analysts expecting 41 cents per share, the company recorded a very impressive 61.0% positive earnings surprise. When compared to the first quarter of 2006, CPO’s profits were up an eye-popping 112.9%. Revenues grew 23.9% to $761.9 million from $614.8 million during the same period a year earlier. Both the earnings per share and revenue figures were new records for the company. Chairman, President and CEO Sam Scott stated, "It is gratifying not only to start the year in such an impressive way, but also to set records for quarterly net sales, earnings and margins in the process. All three geographic regions contributed to this excellent performance." In addition to posting record quarterly results, CPO raised its full-year 2007 profit guidance to between $2.10 and $2.30 per share. The company’s prior outlook called for profits between $1.84 and $2.01 per share. Analysts responded to CPO’s bullish guidance by upping their profit forecasts. The consensus earnings estimate for this year currently sits at $2.30. When compared to the consensus of 60 days ago, it has jumped 31 cents. Estimates for next year have risen 33 cents to $2.58 over the same time period. Earnings per share are projected to grow 11% over the next 3-5 years. The industry is projected to grow by a 10% clip. On Mar 16, the Board of Directors declared a regular quarterly cash dividend of nine cents per share of common stock. CPO has a current dividend yield of 0.83%. Its return on equity tops that of the industry average—11% 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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NX - Quanex Corp - Two of the four covering analysts upped their profit forecasts

Quanex Corporation (NX) exceeded analysts’ earnings expectations in 13 out of the past 16 quarters. The company recently boosted the low end of its prior profit guidance to between $3.35 and $3.60 per share from $3.10 to $3.60. Analysts have been upping their estimates since the company released its second-quarter results. NX has a current dividend yield of 1.1% and a five-year average dividend yield of 1.5%. Full Analysis Quanex Corporation and its subsidiaries manufacture engineered materials and components for the vehicular and building products markets in the United States and internationally. The company sells its products through direct and indirect sales forces, as well as through distributors in North America, Asian and European countries. On May 31, NX posted second-quarter fiscal 2007 profits of 84 cents per share. With the Street calling for 76 cents, the result equated to a 10.5% positive surprise. NX has now topped the consensus earnings estimate in 13 out of the past 16 quarters. Net sales came in at $519.4 million from $507.2 million a year earlier. Citing an improving automotive outlook at Vehicular Products and new programs at Engineered Products, NX boosted the low end of its prior profit guidance to between $3.35 and $3.60 per share from $3.10 to $3.60. Since NX announced its quarterly results, analysts have been upping their profit forecasts. Consensus estimates for this year and next have risen 10 cents and 17 cents, respectively, over the past 30 days to between $3.50 and $3.85. Two of the four covering analysts upped their profit forecasts. Earnings per share are projected to grow 15% over the next 3-5 years, with the industry expected to grow by 8%. On Jun 7, NX was named by Industry Week as one of the 50 Best Publicly Held U.S. Manufacturing Companies. It marked the second year in a row that the company earned a spot in the top 50. The study analyzes a company’s revenue growth and profit margin over the past three years, along with other various financial ratios. CEO Raymond Jean stated, ''Quanex is pleased to be named alongside such elite companies. Being in the top 50 is a direct result of the excellent job our employees are doing in providing our customers with superior quality, service and value. It speaks to the focus we are placing on staying competitive in a global economy.'' The Board of Directors declared a quarterly cash dividend of 14 cents per share, payable on Jun 29 to shareholders of record as of Jun 15. NX has a current dividend yield of 1.1% and a five-year average dividend yield of 1.5%. NX 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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KMT - Kennametal, Inc - ew product sales in sales growth will be above 40% in fiscal 2007

Kennametal has been generating healthy amounts of cash flows and profits. The company is also benefiting from the strong growth of emerging economies. Next quarter's earnings estimates have jumped 13 cents to $1.04 per share over the past 90 days. Next year's numbers have also risen 31 cents to $5.41 per share. The company has exceeded earnings estimates in six straight quarters. Three analysts have raised their forecasts for this fiscal year. Full Analysis Kennametal, Inc. (KMT) manufactures, purchases, and distributes an array of tools, tooling systems, supplies, and services for the metalworking, mining, and highway construction industries. It specializes in developing and manufacturing metal cutting tools and wear-resistant parts using a specialized type of metallurgical powder. The company sells its products under the Drill-Fix, Fix-Perfect, Kennametal, and Kyon brands. Its principal international operations are conducted in Western Europe, Canada, Asia Pacific, Brazil, South Africa, and Mexico. In addition, the company has manufacturing and/or distribution in Israel and South America, and sales agents and distributors in Eastern Europe and other areas of the world. Kennametal caters to a broad clientele spread across more than 60 countries, with almost 50% of revenues coming from outside the U.S. During the fourth quarter of fiscal 2006, Kennametal sold its J&L Industrial Supply business unit. There are several factors positively impacting Kennametal's sales growth, including a new business model, market share gains, strong market fundamentals, and new product introductions. The business model focuses on increasing accounts leveraging its global distribution system, through sales channels focused on market segments, and by selling a total solution enabled by complementary acquisitions. Zacks Equity Research Analyst Mario Ricchio believes KMT will continue to increase sales faster than the rate of growth in the industries it serves amid a steady stream of product launches. Management anticipates the share of new product sales in sales growth will be above 40% in fiscal 2007. Additional product launches will be especially relevant in the Widia line of metal-cutting tools, which management expects to use in strengthening its market position among metalworking customers in Europe and India. Over the long term, Kennametal sees another business opportunity in infrastructure development of emerging economies. Management noted that developing countries are building roads necessary for the transportation of goods. These roads will wear out over time due to the sheer quantity of overloaded trucks using this transportation system. Consequently, the company's construction business is expected to benefit from this long-term trend. 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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GLW - Corning Inc - CreditWatch listing reflects steady improvements in the company's operating results

Corning has enjoyed a nice resurgence after taking a beating during the internet meltdown. The company has met or exceeded earnings estimates in 16 consecutive quarters. Year-over-year growth has routinely surpassed 50% over that time period. Six analysts have raised their numbers for both this year and next. Over the past 60 days, this year's estimates have risen six cents to $1.33 per share. The company has an ROE of 25%. Full Analysis Corning Incorporated (GLW) provides technology-based products in the United States. It operates in four segments: Display Technologies, Telecommunications, Environmental Technologies, and Life Sciences. It also offers optical fiber technology products for various applications, such as premises, fiber-to-the-premises access, metropolitan, long-haul, and submarine networks. Corning also offers semiconductor optics comprising optical material products, optical-based metrology instruments, and optical assemblies; ophthalmic glass; plastic products; polarizing glass; glass for high temperature applications; machinable glass ceramics; and other specialty glass products, such as glass lens, and window components and assemblies. Standard & Poor's Ratings Services said last Friday it placed its long-term ratings on Corning Inc. on CreditWatch with positive implications. "The CreditWatch listing reflects steady improvements in the company's operating results and credit measures, based on its leadership position in the liquid-crystal display industry and other technology materials businesses, as well as its continued prudent financial practices," said Standard & Poor's credit analyst Bruce Hyman in a statement. In late-April, the company said its first-quarter profit rose 27%. The world's biggest maker of ultra-thin LCD glass for flat-screen televisions and computers earned $327 million, or 20 cents a share, in the January-March period, up from $257 million, or 16 cents a share, in last year's first quarter. Reflecting on the first-quarter performance, Wendell P. Weeks, president and chief executive officer, said, "We are off to an excellent start this year. We are encouraged that Display Technologies performed as expected and that our new pricing strategy appears to be working. We continue to see progress in our Telecommunications segment and momentum is building for our diesel products." 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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