World Wrestling Entertainment, Inc. is putting a Full Nelson on the competition. It is interesting to note that its consumer products division showed impressive growth even though the economy is struggling. These results show that the company could be immune to an impending recession. Over the past 30 days, this year's earnings estimates have risen almost 10% to 87 cents per share.
Full Analysis
World Wrestling Entertainment, Inc. (WWE), together with its subsidiaries, engages in developing, producing, licensing, marketing, and selling television and pay-per-view event programming and live events, and consumer products featuring its World Wrestling Entertainment brands worldwide. It operates in four segments: Live and Televised Entertainment, Consumer Products, Digital Media, and WWE Films.
The Live and Televised Entertainment segment engages in the sale of tickets to live events, merchandise at live events, television rights, pay-per-view, and video on demand programming. Its merchandise consists of the sale of WWE branded products, such as T-shirts, caps, and other novelty items.
Just last week, the company announced a 50% boost in stockholder dividends for all shares not owned by the McMahon family. The quarterly dividend goes from $.24 to $.36 per share. The McMahon family quarterly dividend remains at $.24 per share. This news comes on the heels of WWE reporting a 23% increase in 2007 fourth quarter results over the prior year quarter. “This announcement underscores our commitment to the Company’s public shareholders,” commented Vincent K. McMahon, Chairman of the Board of Directors.
A few weeks ago, the company said its fourth-quarter profit rose 38.6% and beat analysts' predictions, aided by growth in its consumer products segment as well as its live and televised entertainment segment. For the quarter that ended Dec. 31, WWE earned $21.5 million, or 30 cents per share, compared with $15.5 million, or 22 cents per share, in the year-ago quarter. The company's revenue rose year over year to $132.6 million from $107.6 million.
“We ended the year with solid fourth quarter performances from all of our operating units, resulting in a 23% increase in revenue over last year. The quarter capped off a very successful year in which we set an all time revenue high of $485 million,” said Linda McMahon, Chief Executive Officer. “We expect our initiatives for international expansion and the continued improvement in our Digital Media and Wireless businesses will help us sustain our growth momentum in 2008.”
It is interesting to note that its consumer products division showed impressive growth even though the economy is struggling. These results show that the company could be immune to an impending recession. Over the past 30 days, this year's earnings estimates have risen almost 10% to 87 cents per share. Two out of the three covering analysts have raised their numbers. The stock is attractively valued at a PEG ratio of 0.6.
Content Courtesy: Zacks Investment Research
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Wednesday, February 27, 2008
WWE - World Wrestling Entertainment - 23% increase in revenue over last year
AUO - AU Optronics Corp - ROE of 27% sits high above the industry average of 7%
AU Optronics Corp. (AUO) recently posted preliminary consolidated and unconsolidated revenue for January. While the results registered slight decreases from December, year-over-year results increased by significant margins. AU Optronics’ ROE of 27% sits high above the industry average of 7%. The company’s net profit margin of 14% also boasts a comfortable lead over the industry’s average of 2.3%.
Full Analysis
AU Optronics is Taiwan's largest and a worldwide top 3 manufacturer of thin film transistor liquid crystal display panels (TFT-LCD). The company is able to provide customers a full range of panel sizes and comprehensive applications, offering TFT-LCD panels in sizes ranging from 1.5 inches to greater than 65 inches.
AUO has major competitive advantages with its comprehensive product lines, allowing for maximum flexibility in producing TFT-LCD panels. After its merger with Quanta Display Inc. in October 2006, AUO is able to leverage the core competency advantages of both sides to not only increase production capacity but also better seize ever-shifting market opportunities.
The company recently reported preliminary consolidated and unconsolidated revenue for January. While the results registered slight decreases by 3.8% and 3.6% respectively from December, year-over-year result increased by healthy percentages of by 65.5% and 65.4% respectively.
AU Optronics announced fourth-quarter and full-year result in late January, sporting quarterly earnings per share of $1.30 in U.S. currency, which sky rocketed past the year-ago six cents per share and exceeded the consensus estimate by 38%.
The company noted that its large-sized panel shipments in 2007 grew 65.9% year-over-year to 80.9 million units, and the company therefore was ranked No.1 in terms of worldwide large-area TFT-LCD shipment units. AUO added that the shipment of small- to medium- sized panel for consumer product applications posted a remarkable 80.7% year-over-year increase to 143.1 million units.
Wall Street estimates show increases for the 2008 year. Two out of three covering analysts raised full-year earnings forecasts from last month’s $3.18 per share to $3.20. The company’s earnings per share are expected to grow by 20% over the next 3 – 5 years, topping the industry average expectation of 15%.
AU Optronics’ return on equity (ROE) of 27% sits high above the industry average of 7%. The company’s net profit margin of 14% also boasts a comfortable lead over the industry’s average of 2.3%.
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AKS - AK Steel Holding Corp - fourth time in four quarters that AK Steel has surprised and beaten estimates by 34%
AK Steel Holding Corporation (AKS) has been benefiting from the shifting dynamics in the domestic and global steel markets. Domestic supplies have been diminishing as importers attempt to avoid negative currency translations, while global demand is surging as a result of emerging market demand from countries like China and India. These conditions led to very strong full-year results for AK Steel, with income growing to $387.7 million from just $12 million in 2006.
Full Analysis
AK Steel Holding Corporation, through its subsidiaries, produces flat-rolled carbon, stainless, and electrical steels, as well as tubular products in the United States. It also sells its products in Canada, Mexico, and western Europe. AK Steel Holding was founded in 1900 and is headquartered in West Chester, Ohio.
The company reported very strong fourth-quarter and full-year results on Jan 22. Revenue rose 7% to $1.69 billion. Net income totaled $106.7 million, a dramatic increase from last year's results of a loss of $49.3 million, that included a $133.2 million charge for retiree health care benefits. This produced earnings of 95 cents per share, well ahead of analyst estimates of 59 cents.
Full year fiscal 2007 results were equally impressive, with net income growing to $387.7 million, producing earnings of $3.46 per share. These results mark a significant improvement from AK Steel's 2006 performance, producing income of $12 million and earnings of 11 cents. Net sales rose to $7 billion for the first time on shipments of 6.5 million tons, compared with $6.1 billion and 6.2 million tons in 2006.
This marks the fourth time in four quarters that AK Steel has surprised and beaten estimates, having done so by an average of 21 cents, or 34%.
The company also said it expects shipments in the first quarter of 2008 to be comparable to those of the fourth quarter of 2007, and that its first quarter 2008 average per-ton selling prices will be 5% to 6% higher than in the fourth quarter of 2007.
The analyst community has been bullish on AK Steel lately, with 2 covering analysts increasing their current-year estimates within the last 30 days, pushing the consensus estimate 10 cents higher to its current reading of $3.85.
The company's ROE reading is amazing, coming in at 56.75%, easily trumping the industry average of 19.12%.
Since the announcement of the awesome fourth-quarter and full-year results on Jan 22, AK Steel shares have been on an absolute tear, rebounding from a low of less than $34 to their current location of over $52, representing more than a 50% gain in just over four weeks.
Within the last two days, shares of AKS have moved into a very critical area, a major level of resistance and the 52-week high, just above $52. It is important that shares continue to trade above this area and log a nice close or two higher in order to firmly establish their presence in this new territory. As it stands, the upward trend is very strong and should provide plenty of support as shares attempt to muster the strength to once again push higher.
Content Courtesy: Zacks Investment Research
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TRMA - Trico Marine Services - beat analysts' estimates by 67.61 percent
Trico Marine Services is finding that servicing the oil and gas sector during record high crude prices translates into higher profits. The company easily beat fourth quarter estimates by 67.61 percent and is seeing record day rates for some of its vessels.
Full Analysis
Trico Marine Services, Inc. (TRMA), headquartered in Houston, Texas, operates a diverse fleet of vessels serving the oil and gas industry, primarily in the North Sea, Gulf of Mexico, West Africa and Latin America.
The company, a Zacks #1 Rank (Strong Buy), has a fleet which includes multi-purpose anchor handling, towing and supply vessels (AHTS), large platform supply vessels, an advanced small-waterplane-area twin-hull (SWATH) crew vessel, crew boats and line handling vessels.
The company's services include the transportation of drilling materials, supplies and crews, and support for the construction, installation, maintenance and removal of offshore facilities.
On Feb 18, Trico reported fourth quarter earnings and beat analysts' estimates by 48 cents, or 67.61 percent. Net income was $30.7 million, or $2.08 per share. Due to changes to the Norwegian Tonnage Tax rules that took place in December 2007, the tax changes increased net income for the quarter by 89 cents per share. Excluding the tax increase, the company reported $1.19 compared to analysts' consensus estimates of 71 cents per share.
In the fourth quarter, the North Sea market hit record day rates in the spot anchor handler market, with average day rates for the North Sea class fleet improving by 15 percent over the third quarter.
The market in West Africa is also heating up. For the first time in the company's history, the average day rate for vessels in West Africa exceeded the day rates for those in the Gulf of Mexico for the 180-foot supply vessels.
"We are pleased with our fourth quarter and full year 2007 results. While we experienced softness in our Gulf of Mexico market, we continued to successfully execute our plan to mobilize vessels internationally for longer term contracts and better day rates," said Chairman and Chief Executive Officer, Joseph S. Compofelice.
"During the fourth quarter, we mobilized six vessels internationally which brought the total to thirteen vessels for the year, or 20% of our fleet," he said.
Brokerage analysts mirror the company's optimism about 2008. One out of two covering analysts raised estimates for the full year in the last week by 22 cents to an average of $3.27 from $3.05 per share.
Trico hit the ball out of the park the last four quarters, surprising on consensus estimates by an average of 27.48 percent. The company has solid value fundamentals. It has a P/E of only 11.64, which is under the industry average of 20.7. It has a P/B of 1.51.
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