Sohu.com, Inc. recently reported an excellent quarter and guided higher. Its sponsorship of the 2008 Olympic Games should boost revenues going forward as well. SOHU has posted an average surprise of 5% over the past five quarters. The current year's most accurate estimate shows over 7% potential upside. Over the past month, this year's earnings estimates have risen 18 cents to $1.70 per share.
Full Analysis
Sohu.com, Inc. (SOHU) provides a range of online products and services to consumers and businesses in the People's Republic of China. Its products and services to businesses include brand advertising and sponsored search.
The company's products and services to users include aggregated content on various topics, including news, entertainment, sports, business and finance, automobile, real estate, information technology, and women.
In early-February, the company said that its fourth-quarter profit more than doubled on strong advertising and game revenue, and said it expects its sponsorship of the Beijing Olympics this summer to help boost 2008 revenues. For the quarter ended Dec. 31, net income rose to $15.1 million, or 39 cents per share, up from $6.1 million, or 16 cents per share, in the prior year quarter, the Beijing-based company said. Analysts expected 33 cents.
Revenue rose 90% to $65.3 million from $34.4 million in the fourth quarter of 2006. Analysts expected revenue of $55.4 million. Advertising and non-advertising revenue both rose substantially in the quarter, helped by a 46% rise in brand advertising revenue and soaring online game revenue.
SOHU also guided higher for its first quarter, saying profits would come in ahead of expectations. The company said it expects earnings per share between 43 cents and 45 cents for the quarter, excluding share-based compensation expenses between eight cents and nine cents per share. Analysts expected 32 cents per share.
Dr. Charles Zhang, Chairman and CEO of Sohu.com, stated, "Once again our team delivered an outstanding quarter with record total revenues and earnings. We are even more pleased to report that we exceeded our raised guidance in each of our revenue categories and earnings for the fourth quarter announced in early December."
SOHU has posted an average surprise of 5% over the past five quarters. The current year's most accurate estimate shows over 7% potential upside. Over the past month, this year's earnings estimates have risen 18 cents to $1.70 per share. The stock is attractively valued at 21.7x next year's estimates, well below it's long-term growth rate of 42.38%.
Content Courtesy: Zacks Investment Research
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Thursday, February 28, 2008
SOHU - Sohu.com - guided higher for its first quarter, saying profits would come in ahead of expectations
WMB - Williams Companies - earnings are expected to grow by 12% over the next 3 – 5 years, which is double the industry’s average of 6%
Williams Companies, Inc. (WMB) is Zacks #1 Rank (Strong Buy) company that is trading very close to its 52-week high. The company recently reported strong fourth-quarter and full-year results. Shortly thereafter, WMB increased the quarterly cash distribution payable to unitholders to 57.5 cents from 55 cents. This was the eighth consecutive quarter the partnership upped its cash distribution. Wall Street applauded WMB’s strong results, lifting full-year 2008 earnings estimates over the past seven trading days. The company’s earnings are expected to grow by 12% over the next 3 – 5 years, which is double the industry’s average of 6%.
Full Analysis
Williams Companies is a publicly traded master limited partnership that, through its subsidiaries, finds, produces, gathers, processes and transports natural gas. Williams' operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, and Eastern Seaboard.
Along with the record-breaking levels of oil prices, natural gas has also been soaring lately. On Feb 26, natural gas closed at $9.206 per million Btu, the highest since the Jan 31, 2006, settle of $9.316.
The Zacks #1 Rank (Strong Buy) company is trading very close to its 52-week high, and recently posted solid fourth-quarter and full-year results. Earnings for the full year totaled $1.97 per common unit, improving on the year-prior $1.62. Quarterly earnings also increased on a year-over-year basis, topping the consensus estimate by about 28%.
Shortly after completing the fourth quarter, the company increased the quarterly cash distribution payable to unitholders to 57.5 cents from 55 cents. This was the eighth consecutive quarter the partnership increased its cash distribution.
For 2007, Williams Partners' total cash distribution to unitholders was $2.15 per unit, versus $1.725 per unit in 2006, a rise of 25 percent.
Wall Street applauded WMB’s strong results, lifting full-year 2008 earnings estimates over the past seven trading days. Three out of nine covering analysts raised forecasts from last week’s $1.77 per common unit to $1.85. The most accurate projection for 2008 stands at a more bullish $1.91. The company’s earnings are expected to grow by 12% over the next 3 – 5 years, which is double the industry’s average of 6%.
Williams Companies' return on equity (ROE) of 16% matches the industry average.
Content Courtesy: Zacks Investment Research
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XEC - Cimarex Energy Co - Net income more than doubled
Cimarex Energy Co. (XEC) has clearly been one of the beneficiaries of the recent surge in energy prices, as seen by its fourth quarter results, which were exceptional. Revenue grew 47% from the same period last year to $417.6 million. The company also noted that it had effectively built upon its proven reserves, which is a key metric when evaluating the strength of exploration companies. Estimates are on the rise as well.
Full Analysis
Cimarex Energy Co. operates as an independent oil and gas exploration and production company. It primarily operates in Texas, Oklahoma, New Mexico, Louisiana, and the Gulf of Mexico. Cimarex Energy Co. was founded in 2002 and is headquartered in Denver, Colorado.
Cimarex is yet another energy exploration company that has benefited from the incredible surge in crude and natural gas prices over the past few years. This dynamic was evident when the company reported its fourth quarter earnings on Feb 20. Revenue jumped 47% from the same period last year to $417.6 million. Net income more than doubled, growing to $130 million from $58.7 million last year, an impressive jump by any standard. This produced earnings of $1.54 per share, well ahead of analyst estimates.
This marks the third time in three quarters that Cimarex Energy has surprised and beaten analyst estimates, having done so by an average of 18 cents, or 18%.
The company noted that its growth in revenue and income was driven by increased production capacities and accelerating crude and natural gas prices. Crude prices grew 58% and natural gas prices grew 24% from the same period last year.
Fourth-quarter 2007 oil and gas production averaged 471 million cubic feet per day, a 7% increase from the same period last year.
The company also announced that it had effectively boosted its proven reserves, a key metric by which exploration companies are evaluated. At the end of 2007 proved reserves totaled 1.472 trillion cubic feet equivalent, which represents an 11% increase from 2006. Reserves additions totaled 311 Bcfe and replaced 189% of 2007 production.
The excellent quarterly results have created bullish sentiment in the analyst community, as five covering analysts have raised current-year estimates within the last 30 days, while three have raised in just the last seven days. The current-year consensus estimate now stands at $4.41 per share.
The company's stock price has been on quite a tear lately, bagging incredible short-term gains as it has moved from $37 to $52 in only four weeks, representing an impressive 40% return. It has been about 24 months since XEC shares have been in this territory, so that is the basis for our support and resistance levels moving forward. The key level of support, which has definitely been breached, is right around $50. If shares slow-down or pull-back, this area could provide a nice level for a rebound. As it stands, the trend is VERY strong and should continue to support prices as they accelerate into higher territory.
Content Courtesy: Zacks Investment Research
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VLCCF - Knightsbridge Tankers - surprised on analysts' estimates for the fourth-quarter by 43.48 percent
Knightsbridge Tankers is seeing a boom in shipping crude around the globe as commodities heat up. The company surprised on analysts' estimates for the fourth-quarter by 43.48 percent. Knightsbridge has a P/E of 12.40.
Full Analysis
Knightsbridge Tankers Limited (VLCCF), headquartered in Bermuda, is an international tanker company that transports crude oil around the world.
Knightsbridge, a Zacks #1 Rank (Strong Buy), has a fleet of five double-hull very large crude oil carriers. Four tankers were built in 1995 and one in 1996. The company operates on routes serving the major oil ports including the Arabian Gulf, the Far East, Northern Europe, the Caribbean, and an offshore port in Louisiana.
On Feb 13, the company reported fourth-quarter net income of $60.4 million, or $3.53 per share. However, included in the net income figure was a $49.1 million gain from the sale of a tanker in December 2007. Excluding this gain, earnings per share were 66 cents. The company surprised by 20 cents on analysts' consensus estimates of 46 cents per share.
For the full-year 2007, the company reporeted net income of $84.8 million, or $4.96 per share, compared with $45.7 million, or $2.67 per share, in 2006.
After the strong fourth-quarter earnings, brokerage analysts moved to raise estimates. One covering analyst out of three analysts raised estimates for the first quarter in the last 30 days by 58 cents to $1.16 from 58 cents.
For the full-year 2008, one covering analyst out of two analysts raised the estimate in the last 30 days by 23 cents to $2.26 from $2.03.
Knightsbridge is an attractive value play in its industry. The company has a P/E of 12.40, under the industry average of 20.73. Its price-to-book is 2.0. The company's return on equity (ROE) is 19 percent compared to 17 percent in the industry.
As an added bonus, on Feb 13, the company announced a 75 cent per share dividend for the fourth-quarter payable in March. Knightsbridge's dividend is currently averaging 7.5 percent for the year.
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