FLIR Systems, Inc. has been busy winning contracts. A recent one totalling over $57 million to the U.S. Army was just announced last week. The stock looks attractive after a 35% selloff. FLIR is attractively valued at 18.6x next year's estimates. This is below its long-term growth rate of 20.6%. Earnings estimates for this year have risen seven cents to $1.17 per share over the past 90 days.
Full Analysis
FLIR Systems, Inc. (FLIR) designs, manufactures, and markets thermal imaging and infrared camera systems in the United States and internationally. The company operates through three divisions: Thermography, Commercial Vision Systems, and Government Systems.
The Thermography division offers products for commercial and industrial applications, where temperature measurement is primary requirement. Its products provide highly sensitive temperature measurement, sophisticated image processing, and extensive analytic capabilities.
The company announced last week that it has been awarded multiple delivery orders totaling $57.7 million from the U.S. Army Space and Missile Defense Command. Flir will supply its Star Safire III stabilized multisensor systems and THV-3000 Long Range Imager Systems to the command in Huntsville, Ala. The units will support the U.S. Army and U.S. Marine Corps. Work on the orders will begin immediately in Flir's Portland and Stockholm, Sweden, production facilities.
The stock got a boost last week as Bear Stearns analyst Antonio Antezano gave Flir a 2008 price target of $29 and said he believed the company will have sustained profit growth in coming years. He noted the company's share price has fallen 35% from its 52-week high set in November.
In early-February, FLIR said that its fourth-quarter profit rose 17% as sales increased across each of the thermal imaging product and specialized camera maker's business units. Earnings per share came in at 30 cents, meeting analysts' expectations.
The company, which draws a large part of its sales from government contracts, said revenue jumped 33% to a record $114.3 million at its government systems division. Sales at the company's commercial vision systems and thermography segments also saw double-digit percentage point increases.
FLIR is attractively valued at 18.6x next year's estimates. This is below its long-term growth rate of 20.6%. Earnings estimates for this year have risen seven cents to $1.17 per share over the past 90 days. Analysts expect 17.6% earnings growth next year. Over the past four quarters, FLIR has posted an average surprise of 14.3%.
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
Wednesday, March 19, 2008
FLIR - FLIR Systems - attractively valued at 18.6x next year's estimates
PCLN - Priceline.com Inc - provided investors with some very upbeat, optimistic guidance moving forward
It wouldn’t be far fetched to say that Priceline.com Incorporated (PCLN) embodies aggressive growth. Its share price has increased from about $100 per share in the beginning of this year to Tuesday’s closing share price of $123.06. This during a time when most companies have struggled. PCLN boasts a much more bullish share price increase over a full-year period as its share price more than doubled its March 19, 2007 level of $54.20 per share. The company’s fundamentals spell out aggressive growth also as evidenced by fourth-quarter net income of $32.9 million, versus the year-prior $13.2 million.
Full Analysis
Priceline.com Incorporated operates as an online travel company in the United States and Europe. It offers its services under the Name Your Own Price' brand, which allows its customers to make offers for travel services at discounted prices.
It wouldn’t be far fetched to say that Priceline.com embodies aggressive growth. Its share price has increased from about $100 per share in the beginning of this year to Tuesday’s closing share price of $123.06. This during a time when most companies have struggled. PCLN boasts a much more bullish share price increase over a full-year period as its share price more than doubled its March 19, 2007 level of $54.20 per share.
The company’s fundamentals spell out aggressive growth also as evidenced by fourth-quarter net income of $32.9 million, versus the year-prior $13.2 million. PCLN’s fourth-quarter report, which was released in mid-February, sent its share price soaring thanks to strong results such as revenue that grew 28.8% from last year to $334.9 million. Other positive results included a gross profit total that jumped 61% to $160.2 million, and net income that ascended to $32.9 million from $13.2 million.
Priceline also reported impressive growth statistics from its international engagements, and solid growth from its domestic activities. Priceline President and CEO Jeffry Boyd noted that gross bookings, a key metric in evaluating company performance, grew in its international engagements by 113% year-over-year, while its domestic growth rate grew sequentially to 24.2%, driven by retail airline bookings.
Not only did Priceline report a great quarter, but they also provided investors with some very upbeat, optimistic guidance moving forward. The company said it expects first quarter 2008 results to include year-over-year increases in international gross travel bookings of approximately 85% to 90% and year-over-year increase in revenue of approximately 30%.
Analyst estimates have been rising for the company. Full-year 2008 forecasts of $4.77 per share stand above the two months-ago level of $4.50. The most accurate 2008 projection is a much more bullish $5.04.
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
GLW - Corning Inc - ROE of 26% stomps the industry average of 4%
Corning Incorporated (GLW), a Zacks #1 (Strong Buy) company, recently reaffirmed its first-quarter guidance of sales in the range of $1.59 billion to $1.62 billion and earnings per share, excluding special items, of 41 cents to 43 cents. Analysts raised earnings estimates, bringing them in line with the company’s outlook. In early February, GLW declared a quarterly dividend of five cents per share. The company’s dividend yield of 0.9% is above the industry average, and its ROE of 26% stomps the industry average of 4%.
Full Analysis
Corning Incorporated is the world leader in specialty glass and ceramics. Drawing on more than 150 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences.
The company’s products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.
Following a fifth consecutive year of increased sales and profitability in 2007, Wendell P. Weeks, chairman and chief executive officer recently said, “Last year was a year of outstanding execution for Corning. We had record earnings per share, excluding special items, of $1.41, gross margins at 47%, and operating cash flow of more than $2 billion.” He added, “innovation will continue to drive the company’s long-term growth, as it has throughout the company’s past.”
The company also reaffirmed its first-quarter guidance of sales in the range of $1.59 billion to $1.62 billion and earnings per share, excluding special items, of 41 cents to 43 cents.
Analysts are in agreement as evidenced by current first-quarter earnings expectations of 42 cents per share, versus two months-ago forecasts of 35 cents. For the full year, analysts increased earnings estimates from the two months-ago level of $1.59 per share to $1.72. The most accurate projection is a more bullish $1.78.
In early February, the Zacks #1 (Strong Buy) company declared a quarterly dividend of five cents per share. The dividend is payable March 31, 2008 to shareholders of record as of March 3, 2008. The company’s dividend yield of 0.9% is above the industry average as this technology company is operating in an industry that does not often offer dividends.
This Growth & Income stock pick boasts a return on equity (ROE) of 26%, stomping the industry average of 4%.
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
VIP - Vimpel-Communications - ROE of 31% also tops the industry average of 10%
Vimpel-Communications (VIP) recently posted fourth-quarter and full-year 2007 results, noting that revenues exceeded $7 billion and grew at a remarkable rate of 47%. The company exhibited growth in many areas, but growth is not the only story for this Growth & Income pick. VIP also offers a dividend yield of 0.9%, which is better than the industry average. The company ROE of 31% also tops the industry average of 10%.
Full Analysis
Vimpel-Communications includes cellular companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. The Company operates under the 'Beeline' brand.
VimpelCom is recognized for introducing two digital cellular communications standards in Russia. It built the first dual band GSM-900/1800 cellular network in Russia and leads the development and emergence of the mass consumer market for wireless telecommunications in Russia with prepaid products.
The company recently posted fourth-quarter and full-year 2007 results, noting that revenues exceeded $7 billion and grew at a remarkable rate of 47%. VIP added that strong revenue growth, coupled with a healthy margin and a balanced investment policy, resulted in free cash flow of $1.26 billion, almost tripling the 2006 level.
Analysts are upbeat on this year’s earnings expectations. Three out of eight analysts upped full-year 2008 estimates to $2.05 per share from last month’s $2.02. The most accurate forecast is a more bullish $2.12 per share. The company’s earnings per share are expected to grow by 24% over the next 3 – 5 years, which is above the industry average of 18%.
Vimpel’s return on equity (ROE) of 31% stands high above the industry average of 10%. The company’s dividend yield of 0.9% is also better than the industry average. Also, VIP sports a net profit margin of 20.4%, while the industry average is at a negative 1.0%.
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
NFLX - Netflix - received permission from its board of directors to execute a $250 million common stock re-purchase
Netflix, Inc. (NFLX) has delivered very solid returns to its shareholders in this incredibly challenging year. Its stock price has been advancing behind the strength of the companies excellent full-year and fourth quarter results, both of which showed nice improvements from comparisons to last year. Netflix has also received permission from its board of directors to execute a $250 million common stock re-purchase program.
Full Analysis
Netflix, Inc. provides online movie rental subscription services in the United States. It provides its subscribers access to a library of movie, television, and other filmed entertainment titles on DVD. As of December 31, 2007, the company served approximately 7.5 million subscribers with a library of approximately 90,000 movie, television, and other filmed entertainment titles on DVD. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.
Netflix shares have had a great year, driven by strong fundamentals that include solid fourth quarter results, reported on Jan 23. Revenue for the quarter was up 9% to $302.4 million. Income advanced to $15.8 million from $14.9 million in the same period last year. This produced earnings of 24 cents per share, ahead of both last year's figure, as well as analyst expectations.
This marks the third time in the last three quarters that the company has surprised and beaten analyst estimates, having done so by an average of 36.5%, or six cents.
Netflix reported that its subscriber base grew 18% and advancing to almost 7.5 million.
The company provided bullish first-quarter and full-year guidance during the call, but has since upgraded its projections. On Feb 27, the company boosted the low-end of its first quarter outlook to $10 million, and said it expects its subscriber base to grow from to between 8.16 million and 8.26 million.
Netflix also said that it expects full-year revenue to reach $1.345 billion to $1.385 billion.
Netflix has announced two major share buyback programs within just the last six weeks. On Jan 31, the company announced that its board of directors had authorized a stock re-purchase program of $100 million of its common stock. They followed that announcement up on Mar 6 with another announcement stating that the board had extended clearance to re-purchase an additional $150 million of common stock, placing the total allocation for 2008 buy-backs at $250 million.
Estimates continue to rise for the company, with six covering analysts increasing current-year projections within the last 30 days, and one increasing in just the last seven days. The current-year consensus estimate has advanced nine cents to its current expectation of $1.26 per share.
As you can see, the fundamentals are very strong, and that has been the driving force behind the excellent performance of the company's share price. After getting off to a tough start early in the year, shares have been locked into a very smooth up trend that began when they dipped lower and rebounded from the $20 level on Jan 22.
The key formation on the chart is the upward trend and the formidable level at $34, which is the 52-week high. This level has been tested numerous times over the last week but has yet to be broken. Look for the short-term trend to stay strong and continue to apply upward pressure as shares attempt advance into higher territory.
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
POT - Potash Corp - Estimates continue to rise as analysts increase their projections to reflect the torrid climate
Potash Corp. (POT) continues to benefit from the big boom in agricultural as demand for its crop nutrient products continues to surge. The company's fourth quarter results, reported on Jan 24, were awesome. Revenue jumped 39% and income more than doubled from the same period last year. Estimates continue to rise, with the current-year estimate gaining 29 cents in just the last 30 days and moving to its current projection of $7.51 per share.
Full Analysis
Potash Corporation of Saskatchewan, Inc. (PotashCorp) engages in the production and sale of fertilizers, and related industrial and feed products in North America. The company manufactures and sells solid and liquid phosphate fertilizers; animal feed supplements; and industrial acid, which is used in food products and industrial processes. The company was founded in 1953 and is based in Saskatoon, Canada.
Potash Corp. continues to benefit from the big-boom in the agricultural market, as this leading nitrogen and phosphate producer pads its bottom line with continued revenue growth and strong pricing power. This dynamic was evident when Potash reported its fourth quarter results on Jan 24, which were excellent.
Revenue rose 40% to $1.43 billion. Income more than doubled, growing to $376.8 million from just $186 million in the same period last year. This produced earnings of $1.16 per share, well ahead of analyst estimates, who were looking for $1.00 per share.
Full-year fiscal 2007 results included sales of $5.23 billion, up 39% from the year before, and income of $1.1 billion, up from $631.8 million in 2006. Full-year earnings per share came in at $3.40, up from $1.98 last year.
Estimates continue to rise as analysts increase their projections to reflect the torrid climate. Within the last 30 days, three analysts have increased their current-year estimates, driving the consensus estimate higher by 29 cents to its current projection of $7.51 per share.
As one would imagine, shares of Potash have been big winners for at least the last year, and the trend is showing absolutely no sign of slowing down. Shares did dip lower early in the year, but eager investors quickly stepped in to scoop up shares at what was considered to be discounted prices, and this led to a very strong rally and fresh 52-week and all-time highs.
Moving forward, the key formation on the chart is both the upward trend that has been established and the level of resistance that has developed around the 52-week high at $163. The fundamentals are strong, the outlook is bullish, and shares have established a very nice up trend. This company has a very nice combination of multiple elements currently working in its favor. Look for the trend to stay strong and for shares to bust through the 52-week high and settle in higher territory.
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
TSL - Trina Solar Ltd - Covering analysts forecast year-over-year growth in 2008 of 87.77%
Trina Solar Ltd. is building its alternative energy business in Europe and, in 2008, will enter the US market just as crude hits record highs and heating oil and natural gas prices soar. Solar stocks have been hot the last few years but a recent sell-off in the sector has opened opportunities for value investors. Trina Solar is now trading at a valuation that makes it attractive. The company has a 2008 P/E of only 11.19. Covering analysts forecast year-over-year growth in 2008 of 87.77%.
Full Analysis
Trina Solar Ltd. (TSL) is a manufacturer of monocrystalline ingots and wafers for use in solar module production. The Chinese-based company's solar modules provide electric power for residential, commercial, industrial and other applications worldwide.
Trina Solar, a Zacks #1 Rank (Strong Buy), sells its solar modules primarily in Europe and specifically to Spain, German and Italian customers. The company currently has long-term partnerships with technology suppliers in Switzerland, Italy and Germany, which provide technology at TSL's Chinese facilities.
On March 9, the company announced it signed an agreement with GT Solar Inc. to purchase primary converter and reactor systems for its planned polysilicon production project for $49 million. The purchase price will be paid in installments over the next 12 to 18 months.
"We are very excited to further our partnership with GT Solar, who will provide us a world class platform which is expected to extend our technology, brand and cost advantages to include silicon feedstock under our vertically integrated manufacturing model," said Jifan Gao, Trina Solar's Chairman and CEO. "We believe GT Solar's advanced technology will help Trina Solar to reduce cost in the long run in connection with our polysilicon production."
The company has seen margins and profits increase over 2006. On March 4, the company reported fourth-quarter earnings of 61 cents per share, surprising on estimates by 38.64%, or 17 cents a share. Net income was $15.7 million in the fourth quarter of 2007, compared to $4.6 million or 28 cents per share, an increase of 242.2% over the year ago period. Analysts expected only 44 cents a share for the quarter.
Sales grew 161.3% to $101.4 million from $38.8 million, an increase of 22.8% from the third quarter and 161.6% year-over-year. The company's sales for the fourth quarter broke down to 56% Spain, 7% Germany and 16% Italy. For the year, sales consisted of 34% Germany, 41% Spain, and 19% Italy.
"We are extremely pleased with our results in the quarter to cap a year of many important achievements. We met or exceeded our annual 2007 targets for product shipment, revenue and net income, as the benefits of our fully integrated business model increased our bottom line," said Trina Solar's Chairman and CEO, Jifan Gao.
For 2008, the company has already contracted 100% and 85% of its first and second half 2008 targeted module production, respectively, representing about 90% of its targeted module production from 200MW to 210MW for 2008. TSL also plans to initiate sales in the United States and is in the final process stage to receive its UL certifications.
Trina Solar anticipates its geographic breakdown of 2008 sales in its main markets to be approximately 34% Germany, 26% Spain, 18% Italy, 10% Benelux and 5% in the United States.
Brokerage analysts are bullish on the company and have been raising estimates in the last 30 days. Two out of three covering analysts raised consensus estimates on the first quarter by four cents to 49 cents from 45 cents a share. For the year, two out of seven analysts raised in the last 30 days on average of 15 cents to $2.74 from $2.59 a share.
With the recent sell-off of the solar stocks, Trina Solar is now an attractive value pick. It is trading with a 2008 P/E of 11.19. The company's price-to-book is 2.12. It has surprised on earnings the last four quarters on average of 18.44%.
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
WEL - Boots & Coots - Analysts responded to the company's forecast by raising estimates for the first quarter by 50%
Boots & Coots is finding growth and higher profits in being specialists in oil well emergency response. The company surprised on earnings by 166.67% in the fourth quarter. Analysts forecast juicy year-over-year growth of 113.64% for 2008. The company trades with a P/E of only 6.41.
Full Analysis
Boots & Coots International Well Control, Inc. (WEL) offers oil well services and emergency response to onshore and offshore oil and gas exploration companies around the world.
Boots & Coots, a Zacks #1 Rank (Strong Buy), has two segments: Well Intervention and Response.
The Well Intervention segment handles critical well events such as well fires, blowouts or other losses of control at the well. Well Intervention also includes prevention services such as training, contingency planning, well plan reviews, audits, inspection services and engineering services.
The Response segment responds to the emergencies by sending personnel, equipment and services to a critical well event or a hazardous material response.
On March 10, the company reported fourth-quarter earnings and surprised by five cents, reporting net income of $5.8 million, or eight cents per share, compared to $4.5 million, or seven cents per share, in 2006. Analysts expected three cents a share.
Revenues for the quarter were $36.1 million compared to $33.7 million for the fourth-quarter 2006.
The Well Intervention segment was the company's big revenue producer in the quarter. It generated revenues of $31.3 million compared to revenues of $22.5 million in the year-ago period. Part of the increase in revenues was due to growth in international operations as well as domestic initiatives including the acquisition of StassCo in the Rocky Mountains.
The Response Segment saw a decline from a year ago. It generated revenues of $4.9 million compared to revenues of $11.2 million in 2006. Lower international activity resulted in the reduced revenues in the segment.
"Fourth quarter results have moved the company over the $100 million revenue milestone," said Jerry Winchester, president and chief executive officer. "The strong quarter is a direct result of the investment initiatives we made during 2007, including our redeployment of underutilized assets."
Boots & Coots raised its forecast for the first-quarter 2008 after seeing greater than expected activity in both of its segments. WEL gave guidance of a range of six cents to seven cents a share. Brokerage analysts had been estimating four cents a share.
Analysts responded to the company's forecast by raising estimates for the first quarter to six cents from four cents a share. For the year, two out of two covering analysts also raised consensus estimates by six cents to 23 cents from 17 cents a share.
Boots & Coots is extremely cheap. WEL trades at a 2008 P/E of 6.41, which is under the industry average of 10.9. Its price-to-book is 1.57. The company has a tremendous five year average return on equity of 41.04%.
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
