Eagle Test Systems is enjoying excellent margins and strong growth opportunities. Earnings estimates have been heading higher. Over the past two months, this year's numbers have risen a dime to $1.05 per share. That $1.05 would represent 127% earnings growth over last year.
Full Analysis
Eagle Test Systems, Inc. (EGLT) designs, manufactures, sells, and services automated test equipment for the semiconductor industry. It offers various testing systems based on its SmartPin technology that enables multiple semiconductor devices to be tested simultaneously, or in parallel, on an individual test system.
The company's test systems offer analog, mixed-signal, and radio frequency test platforms across a range of semiconductors. These systems are incorporated into a range of products, including digital cameras, MP3 players, cellular telephones, video/multimedia products, automotive electronics, computer peripherals, and notebook and desktop computers. It markets its products in the United States, Korea, Singapore, Taiwan, Italy, Germany, China, Malaysia, and the Philippines.
EGLT said its fiscal first-quarter profit rose 40% on higher sales. In late January, the company said it earned $5.3 million, or 23 cents per share, compared with $3.9 million, or 17 cents per share, in the year-ago quarter. Revenue rose to $31 million from $24 million. Analysts only expected 14 censt per share.
Lehman Brothers analyst David Egan, who rates Eagle Test at "Strong Buy," recommendation on the stock, said the company's results beat expectations by a wide margin. Egan added Eagle Test has high margins, attractive growth opportunities, and its near-term business trends are improving. He raised his 2009 earnings-per-share estimate to 70 cents from 55 cents on the belief that Eagle will expand its markets, especially in China.
Also in the earnings release, EGLT said that it expects fiscal second-quarter profit between 17 cents per share and 24 cents per share on revenue between $30 million and $34 million. Analysts expect earnings of 22 cents per share on revenue of $29.6 million for the quarter ending March 31.
"I am very pleased with our strong first quarter performance, particularly during these challenging economic times," stated Len Foxman - Eagle CEO. "These results are indicative of the success we can achieve by leveraging our lean business model and we will remain focused on delivering profitable results and positive earnings for our shareholders."
Earnings estimates have been heading higher. Over the past 60 days, this year's numbers have risen a dime to $1.05 per share. That $1.05 would represent 127% earnings growth over last year. Additionally, the company has posted an average surprise of 24.7% over the past four quarters. The stock is cheap at less than 10x this year's earnings versus a growth rate of over 37%.
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Thursday, March 13, 2008
EGLT - Eagle Test Systems - Eagle Test has high margins, attractive growth opportunities, and its near-term business trends are improving
CHK - Chesapeake Energy - return on equity (ROE) of 18% also tops the industry’s average of 11%
Chesapeake Energy Corporation (CHK) is trading near a 52-week high after delivering a better-than-expected fourth quarter. Wall Street earnings forecasts are on the rise. Full-year 2008 estimates of $3.51 per share climbed from last month’s $3.38. CHK’s earnings per share are expected to grow 15% over the next 3 – 5 years, versus industry’s average of 10%.
Full Analysis
Chesapeake Energy Corporation is the largest independent and third-largest overall producer of natural gas in the U.S. Headquartered in Oklahoma City, the company's operations are focused on exploratory and developmental drilling and corporate and property acquisitions.
The company is known for growth through acquisitions, and is the most active driller of new wells in the U.S.
Chesapeake's production growth has been at or near the top of the industry for several years. After increasing 23% last year, volumes are expected to grow around 20% this year and in the mid-teens level in 2009.
CHK is trading near a 52-week high after delivering a reported better-than-expected fourth quarter as well as the full year. Chesapeake noted that 2007 results reflected strong production gains.
Fourth quarter earnings totaled 93 cents per share, compared to 90 cents per share in the prior-year period. The result came in 15% ahead of the consensus estimate.
Wall Street earnings forecasts are on the rise. Full-year 2008 estimates of $3.51 per share climbed from last month’s $3.38. For 2009, projections of $3.13 per share stand above the prior month’s $3.07. CHK’s earnings per share are expected to grow 15% over the next 3 – 5 years, versus industry’s average of 10%.
In addition to exhibiting solid growth, this Growth & Income pick offers a dividend yield of 0.6%, which higher than the industry averages as oil and gas companies do not generally pay dividends.
The company’s return on equity (ROE) of 18% also tops the industry’s average of 11%. Its net margin of 18.6% compares favorably to the industry’s average of 15.8%.
Content Courtesy: Zacks Investment Research
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FCN - FTI Consulting - unique position of actually benefitting from the turmoil in the financial sector and overal economic environment
FTI Consulting, Inc. (FCN) is in the remarkably unique position of actually benefitting from the turmoil in the financial sector and overal economic environment. As a consulting advisor to distressed businesses, the company's fourth quarter profit jumped sharply behind the momentum of strong demand for its services. Profit jumped 77% from the previous year. The company also provided a bullish forecast, projecting continued strength in demand as their apears to be no near-term end in sight for the calamaties plaguing corporations worldwide.
Full Analysis
FTI Consulting, Inc. provides consulting services to organizations confronting the legal, financial, and reputational issues. The company serves numerous industries, including energy, financial and technology worldwide. The company was founded in 1982 and is based in Baltimore, Maryland.
FTI's stock price has been in a very steady uptrend for a number of years, but recently received a very nice pop after the company reported exceptional fourth quarter results on Feb 29.
Sales rose 29% to $280.5 million. Income jumped 77% to $30.8 million, producing earnings of 60 cents per share, well ahead of analyst estimates.
This is the third time in three quarters that the company has surprised and beaten analyst estimates, having done so by an average of five cents, or 10%.
The company noted that a couple of key developments fueled the stronger than usual growth, citing both the credit crisis and strong international expansion. International sales accounted for 19% of its total sales.
FTI's full-year results were equally impressive, with sales rising 41% to $1 billion. Earnings were $92.1 million, or $2.14 per share, compared to $42 million, or $1.06 per share last year.
The company also provided a bullish forecast for 2008, saying that it expects sales of $1,275 million to $1,315 million to produce earnings between $2.40 and $2.50 per share.
The analyst community agrees, with their projection coming in at the top-end of the company's forecast. The current-year consensus estimate now stands at $2.46, up nine cents from 30 days ago as analysts have revised their projections in light on the strong fourth quarter results and continued turmoil in the financial markets.
As previously mentioned, the great fourth quarter results provided the company's stock price with a pretty serious jolt, with shares actually gapping open higher on the following open. Since then, shares have been able to sustain themselves in higher territory and hold onto their gains.
The key level is the short-term resistance just above $64, which has contained prices since the jump higher last week. This level has been tested numerous times, but has yet to be eclipsed. With the upward trend asserting significant pressure, and shares continuing to log higher lows as they accelerate, this company's stock looks very well positioned to break out from their current range and head higher. The stochastic is also signaling that shares are safely trading away from over-bought territory, implying that this stock has room to move on the upside.
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SVR - Syniverse Holdings - In the last 30 days, four out of six covering analysts raised earnings for the first quarter
Syniverse Holdings is finding big profits as wireless technologies expand across the globe. The company surprised on fourth-quarter earnings by 13.64%. Syniverse has surprised the last three quarters on average of 11.56%. The company has a P/E of 13.46.
Full Analysis
Syniverse Holdings, Inc. (SVR) provides technology services and solutions to over 350 telecommunications carriers in more than 50 countries, including the ten largest U.S. wireless carriers and six of the ten largest international wireless carriers.
Syniverse integrates disparate carriers' systems and networks in order to provide global voice and data communications to wireless subscribers.
The company has offices in major cities throughout North America, The Netherlands, China, the United Kingdom and a worldwide sales force in Brazil, France, India, Italy, Japan, Luxembourg, Norway, Singapore and Slovakia.
On Feb 19, SVR reported fourth-quarter earnings and surprised by three cents, or 13.64%. Net income dropped to $8.5 million, or 25 cents per share, from $59.1 million, or 88 cents per share, in 2006. The year-ago period included a tax benefit of $45.8 million.
Revenue rose 18% to $101.5 million from $85.8 million last year. The company said the increase was fueled by demand for services that enable text messaging and mobile data transmissions as well as solid results in the roaming and clearing services segment.
"The acquisition of BSG Wireless in the quarter increases our global scale and adds critical financial settlement capabilities. Additionally, we expect to realize $12 million of annualized cost synergies as we integrate the two businesses over the next two years," said Tony Holcombe, President and CEO of Syniverse.
Brokerage analysts responded to the earnings report by raising consensus estimates. In the last 30 days, four out of six covering analysts raised earnings for the first quarter by an average of six cents to 26 cents from 20 cents per share. Analysts raised estimates for the full year as well. Four out of six analysts raised by 21 cents to $1.22 from $1.01 per share.
The company is well-positioned in its sector. It has a P/E of 13.64, far under the industry average of 34.3. Its price-to-book is 2.39. SVR also has an excellent five-year average return on equity (ROE) of 16.79%. Analysts forecast year-over-year growth for the first quarter of 136.36%.
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