MEMC Electronic Materials, Inc. has been performing beautifully considering the broader market and the selloff some of its peers have experienced. It is within shouting distance of a new high. This year's earnings estimates have increased 26 cents to $4.47 per share over the past 60 days. Analysts expect a further gain of 16.2% next year.
Full Analysis
MEMC Electronic Materials, Inc. (WFR) produces wafers for the semiconductor industry worldwide. Its products include prime polished wafers, such as OPTIA and annealed products; epitaxial wafers consisting of thin silicon layer grown on the polished surface of the wafer; and test/monitor wafers for testing semiconductor fabrication lines and processes.
The company's products are used in the manufacture of various semiconductor devices, including microprocessor, memory, logic, and power devices. Its customers comprise semiconductor device manufacturers, including the memory, microprocessor, and applications specific integrated circuit manufacturers, as well as foundries.
Along with the release of the firm's third quarter earnings last year, WFR announced they signed two additional solar wafer agreements worth between $8 billion and $9 billion over the next 10 years. This essentially doubles the previously announced total to between $15 billion and $18 billion in solar wafer agreements, which represents nearly half of WFR s long-term revenue targets.
MEMC will benefit from higher ASPs in polysilicon and silicon wafers as a result of the Solar explosion, and since the firm produces nearly all of its raw materials for poly, WFR will not be a price taker as other firms will.
MEMC also announced they will participate in 5% of the increase in the value of Conergy's solar cell and module subsidiary. Management revealed very little when prodded for more details, however they did comment it can be thought of as a tracking stock.
After significant trouble, which brought the firm to bankruptcy's door in 2001, the balance sheet is a source of strength and WFR is generating free cash flow. MEMC generated operating cash flow of $917.2 million in 2007, or 47.7% of net sales, and free cash flow of $640.8 million, or 33.3% of net sales.
The stock has held up pretty well considering the fate of other solar companies and the broader market. It is about $6 below a 52-week high. This year's earnings estimates have increased 26 cents to $4.47 per share over the past 60 days. Analysts expect a further gain of 16.2% next year. WFR has posted an average surprise of 5% over the past four quarters.
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
Friday, March 14, 2008
WFR - MEMC Electronic Materials - announced they signed two additional solar wafer agreements
RTN - Raytheon Co - just received two Navy contracts, reported an excellent fourth-quarter and full-year results
Raytheon Co. (RTN) continues to be a great Growth & Income pick with solid fundamentals. On the income side, RTN boasts a dividend yield of 1.6% while it operates in an industry that offers little in terms of dividends. Raytheon also offers growth as evidenced by its return on equity (ROE) of 13%, which compares favorably to the industry average of 9%. The company, which just received two Navy contracts, reported an excellent fourth-quarter and full-year results in late January. RTN hiked its full-year outlook as did Wall Street.
Full Analysis
Raytheon Company is a technology leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 85 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 72,000 people worldwide.
The company continues to be a great Growth & Income pick with solid fundamentals. On the income side, RTN offers a dividend yield of 1.6% while it operates in an industry that offers little in terms of dividends. Raytheon also offers growth as evidenced by its return on equity (ROE) of 13%, which compares favorably to the industry average of 9%. The company’s net margin has demonstrated solid growth at a rate of 12%, while the industry average is significantly lower at 4.3%.
The company, which just received two Navy contracts in the amounts of $44.3 million and $31 million, reported an excellent fourth-quarter and full-year results in late January. Highlights include record bookings of $9.2 billion in quarter and $25.5 billion for year. Sales totaled $6.0 billion for the quarter and $21.3 billion for the year. Both amounts represent year-over-year increases of 8%.
Adjusted fourth-quarter earnings per share from continuing operations of 96 cents topped the consensus estimate by 3% and came in above the year-ago result. Full-year earnings per share from continuing operations totaled $3.31, versus the previous year’s $2.63.
"2007 was a very successful year for the company; we grew sales 8% in 2007 while increasing operating income by 20%," said William H. Swanson, Raytheon Chairman and CEO. "We ended the year with record bookings and backlog, which positions us well for 2008 and beyond."
The company hiked its full-year outlook as did Wall Street. Full-year 2008 earnings estimates of $3.87 per share are 10 cents above the forecasts of two months ago.
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
CLHB - Clean Harbors - every single covering analyst boosting current-year estimates within the last 30 days
Clean Harbors, Inc. (CLHB) stock price has been in a steady up-trend since late January, with share moving from $55 to $63 in just four weeks, a very impressive 15% short-term return. The momentum was built upon impressive fourth-quarter and full-year results, reported on Feb 27, in which net income jumped 44% from the same quarter last year. The company provided a bullish forecast for its 2008 full-year results as well.
Full Analysis
Clean Harbors, Inc. provides environmental services in North America. It operates through two segments, Technical Services and Site Services. The Technical Services segment collects, transports, treats, and disposes hazardous and non-hazardous wastes for commercial and industrial customers. The Site Services segment provides environmental site services to maintain industrial facilities and process equipment, as well as clean up of hazardous materials to chemical, petroleum, transportation, utility, and governmental agencies. The company was founded in 1980 and is based in Norwell, Massachusetts.
The company reported very strong fourth-quarter and year-end results on Feb 27. Revenue grew 11% to a record $257.7 million. Net income jumped 45% to $16.6 million, producing earnings of 81 cents per share, well ahead of analyst estimates. Over the last two quarters, Clean Harbors has beaten analyst estimates by an average of 9 cents, or 14%.
Full-year 2007 revenue grew 14% to $946.9 million. Net income totaled $44 million, producing earnings of $2.14 per share. Net income was down marginally from 2006, but the company was able to boost its cash and marketable securities by 44% to $120.4 million.
The company provided upbeat guidance for 2008, but did remark that the first quarter tends to be its softest of the year. First quarter revenue is targeted between $225 million and $230 million. Full-year revenue is projected to increase 6% to 8% to over $1 billion for the first time in the company's history.
Alan S. McKim, Chairman and Chief Executive Officer said,"We are encouraged about our top- and bottom-line prospects for 2008. With significant momentum, favorable industry trends and our established position as the leader in the environmental services sector, we expect that 2008 will be another record year for Clean Harbors."
The analyst community agrees, with every single covering analyst boosting current-year estimates within the last 30 days, driving the consensus estimate higher by 13 cents to its current projection of $2.65 per share.
The solid fourth quarter results and optimistic forecast have been reflected in the company's share price, which has been in a bullish mood lately.
Shares gapped open higher the day after the report and have since continued to trend higher. The key to the chart is the top-side resistance level at $63 and the fresh 52-week high just above $66. The upward trend is in play and should provide support as shares accelerate to challenge the $63 level once again. The stochastic is providing a nice signal, indicating that shares are not currently over-extended and should have room to move to the upside.
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
WTI - W&T Offshore - achieved 89% success in its exploration and development drilling program in 2007
W&T Offshore is drilling for big profits in the Gulf of Mexico as crude continues to hit record highs. The company saw natural gas and oil prices surge in 2007 from 2006 and so far, in 2008, prices are even higher. The company surprised on fourth-quarter earnings by 17.65% and has surprised for the last four quarters on average of 23.46%. Brokerage analysts forecast year-over-year growth for 2008 of 14.16%.
Full Analysis
W&T Offshore, Inc. (WTI) is an independent oil and natural gas exploration company. WTI has approximately 200 fields in federal and state waters primarily in the Gulf of Mexico. The fields include both the deep water and deep shelf regions.
The company's total proved oil and natural gas reserves as of Dec 31, 2007, were 51 million barrels of oil and natural gas liquids and 332.8 billion cubic feet ("Bcf") of natural gas or 638.8 Bcf equivalent of natural gas.
WTI is growing by acquisition. The company announced on Jan 30 that it closed on Apache's interest in Ship Shoal 349 field, located off the coast of Louisiana, for $116 million in cash. The acquisition covers two federal offshore lease blocks, Ship Shoal Blocks 349 and 359, with an effective date of Jan 1, 2008.
On Feb 28, the company reported fourth-quarter earnings and surprised on consensus estimates by 12 cents. Net income was $60.7 million, or 80 cents per share, compared to $39.2 million, or 52 cents per share in 2006. Brokerage analysts expected 68 cents per share.
Revenues increased to a record $1.1 billion for the year.
Fourth-quarter production gained 19% from the third-quarter 2007. For the year, production increased 28% over 2006.
Prices on both natural gas and oil soared in 2007 compared with 2006. In the fourth quarter, WTI sold natural gas at an average price of $7.28 per thousand cubic feet (Mcf) compared to an average price of $6.64 per Mcf in 2006. For oil, the company sold oil and liquid gas at an average price of $84.62 per barrel. In 2006, the average price per barrel was $52.13.
WTI achieved 89% success in its exploration and development drilling program in 2007, including drilling six of seven exploration wells and two of two development wells.
The company is bullish about 2008. WTI plans to spend approximately $330 million on exploration for the year.
"Today, we are focused on capitalizing on the tremendous opportunities we created in 2007," said Tracy W. Krohn, Chairman and Chief Executive Officer.
"We are planning on drilling 50 wells during 2008, which is a record number for W&T. Over half of these wells are on former Kerr-McGee properties, and about two-thirds are from existing platforms or infrastructure. This large number of wells drilled on or near existing infrastructures or platforms will help W&T convert exploration successes to cash flow quickly," he said.
Brokerage analysts responded to the optimistic news and the record crude prices by raising first quarter and full-year estimates. Three out of seven covering analysts raised for the first quarter in the last 30 days on average of 5 cents to 75 cents from 70 cents. For the year, one out of seven analysts raised in the last 30 days by one cent to 2.58 cents from $2.57 per share.
W&T is an attractive value play in the energy sector with crude continuing to soar and natural gas at two-year highs. It has a P/E of 13.23. Its price-to-book is 2.26. The company has an outstanding five-year average return on equity (ROE) of 27.10%.
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
