Kirby has posted an average surprise of 4.3% over the past four quarters. Five of the nine covering analysts for this year have raised their estimates over the past week. Those estimates have risen nine cents to $2.75 per share. The stock is valued reasonably with a PEG ratio of 1.2.
Full Analysis
Kirby Corporation (KEX), through its subsidiaries, provides marine transportation and diesel engine services in the United States. It offers marine transportation services, including inland transportation of petrochemicals, black oil products, refined petroleum products, and agricultural chemicals by tank barges; and offshore transportation of dry-bulk cargoes by barge to petrochemical and refining companies.
The company offers aftermarket service for vessels powered by diesel engines utilized in the various inland and offshore marine industries in the marine market; aftermarket service for diesel engines that provide standby, peak, and base load power generation to users of industrial reduction gears and for standby generation components of the nuclear industry in the power generation market.
The stock has been screaming higher, with the catalyst being raised guidance on March 17. Kirby now projects profit to exceed 66 cents per share, up from its prior forecast of 57 cents to 62 cents per share for the period. Analysts expect a profit of 60 per share, on average.
Kirby cited higher-than-expected demand for both its marine transportation and diesel engine services operations. The company also said that it continues to experience improvements in equipment utilization, rates, efficiency and time-charter revenue.
On January 30, KEX announced record net earnings for the fourth quarter ended December 31, 2007 of $34.4 million, or $.64 per share, compared with net earnings of $23.4 million, or $.44 per share, for the 2006 fourth quarter. Kirby's initial published 2007 fourth quarter earnings guidance range was $.57 to $.62 per share, which was revised to exceed $.62 per share on January 14. Consolidated revenues for the 2007 fourth quarter were a record $307.9 million, an increase of 22% over the $251.4 million reported for the 2006 fourth quarter.
"The record fourth quarter marked the 16th consecutive quarter that our earnings exceeded the same quarter of the previous year," said Joe Pyne, Kirby's President and Chief Executive Officer. "Strong demand continued in all of the marine transportation markets Kirby services. Our fleet of tank barges and towboats remained essentially fully utilized and pricing for our services remained consistent with the first nine months of 2007."
Kirby has posted an average surprise of 4.3% over the past four quarters. Five of the nine covering analysts for this year have raised their estimates over the past week. Those estimates have risen nine cents to $2.75 per share. The stock is valued reasonably with a PEG ratio of 1.2.
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
Thursday, March 27, 2008
KEX - Kirby - higher-than-expected demand for both its marine transportation and diesel engine services operations
GME - GameStop - huge average surprise of 33.2% over the past four quarters
GameStop is on fire, plain and simple. It is still in the early stages of its growth cycle. The company has posted a huge average surprise of 33.2% over the past four quarters. Just over the past week, this year's earnings estimates have jumped 17 cents to $2.37 per share.
Full Analysis
GameStop Corp. (GME) sells software, hardware, and game accessories for video game systems and personal computers. The company is also the largest reseller of used video games. It currently operates 5,264 retail stores across North America and Europe. GameStop makes its stores easily accessible to clients of all age groups by locating its stores within walking or biking distance.
The company has focused on high-traffic areas. Most of its stores are located in strip malls, with the remaining stores located in shopping malls. GameStop Corp. also offers strategy guides, action figures, as well as other computer and video game magazines to its customers.
GameStop will continue to benefit from the current video game cycle, which is still in the "early innings" of the game. The company is well-positioned to take advantage of this video game cycle that is being driven by next-generation video game consoles and the best video games ever designed.
The company believes that this cycle will be "deeper, wider, and longer" than any previous period of new console introductions. The company's stellar fourth quarter results were driven by new video games including Activision s Call of Duty 4: Modern Warfare, Rock Band from Electronic Arts, Assassin's Creed by Ubisoft, Nintendo's Super Mario Galaxy, and Activision's Guitar Hero III.
The great thing for GameStop is that it doesn't matter who the winners or losers are in terms of consoles or video game titles, as long as demand for games is strong. Instead of picking the winners, GameStop closely monitors the pulse of the video game world and lets its customers tell them which games to stock in stores.
In addition to the next generation video game cycle, GameStop's store expansion strategy continues to drive sales. GameStop is aggressively opening new stores in favored strip mall locations. These stores offer superior customer service and focus on trade-ins and used game sales. GME's size affords the company many competitive advantages and cost savings that should help drive solid sales growth and profit margin expansion in the years ahead.
GME has posted a huge average surprise of 33.2% over the past four quarters. Just over the past week, this year's earnings estimates have jumped 17 cents to $2.37 per share. Analysts expect a further gain of 23.8% next year. Ten out of 11 analysts raised their numbers.
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 - All four analysts have raised their numbers over the past 30 days
Clean Harbors, Inc. is cleaning up investors' portfolios. The company is increasing its incinerator capacity which should spur strong revenue growth. This year's earnings estimates have increased 15 cents to $2.67 over the past month. All four analysts have raised their numbers over the past 30 days.
Full Analysis
Clean Harbors, Inc. (CLHB) , through its subsidiaries, 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, health care providers, educational and research organizations, and other environmental services companies and governmental entities.
It offers resource recovery and fuels blending, incineration, landfills, wastewater treatment, and explosives management services; and cleanpack services, including handling, packaging, transportation, and disposal of laboratory quantities of outdated hazardous chemicals, household hazardous wastes, and waste pesticides and herbicides. 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.
In early-January, the shares got a boost after Wedbush Morgan Securities analyst upgraded the stock because Clean Harbors' growing incinerator capacity will increase its revenue. Analyst Al Kaschalk raised his rating on Clean Harbors shares to "Strong Buy" from "Buy," and increased his price target to $64 per share from $62. The "Strong Buy" rating means Kaschalk expects the stock to rise 20% or more in the next six to 12 months, and his price target implies 26.9% growth.
CLHB also got a boost when it released third-quarter numbers that beat expectations in early-November. The company reported third-quarter earnings of $12.9 million, or 63 cents a share, on revenue of $245.5 million. Analysts anticipated earnings of 57 cents a share and revenue of $238.5 million. For the year, Clean Harbors sees revenue growth of 12% to 13%, up from its prior guidance.
This year's earnings estimates have increased 15 cents to $2.67 over the past month. All four analysts have raised their numbers over the past 30 days. The stock is attractively valued at 22.5x next year's estimates, slightly above its long-term growth rate of 20%. The ROE is a stellar 25%.
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
HPQ - Hewlett-Packard - ROE stands at 22%, well above the industry’s average of 4%
Hewlett-Packard Co. (HPQ) continues to offer solid growth and income. Shares of the computer company are trading higher than they were in late February when HPQ was last featured. Hewlett-Packard reported fiscal first-quarter results in mid-February, setting its non-GAAP full-year 2008 guidance at a range of $3.50 to $3.54. Wall Street has earnings pegged at $3.52 for the year ending October 2008, versus the two months-ago forecasts of $3.37. HPQ sports a dividend yield of 0.7%, a solid yield considering that HP is operating in an industry that is not big on paying dividends. Its ROE stands at 22%, well above the industry’s average of 4%.
Full Analysis
Hewlett-Packard provides infrastructure and business offerings that span from handheld devices to some of the world's most powerful supercomputer installations. It offers consumers a wide range of products and services from digital photography to digital entertainment and from computing to home printing.
HP is among the world’s largest IT companies, with revenue totaling $107.7 billion for the four fiscal quarters ended Jan. 31, 2008.
The company continues to offer solid growth and income. Shares of the computer company are trading higher than they were in late February when HPQ was last featured.
Hewlett-Packard reported fiscal first-quarter results in mid-February, setting its non-GAAP full-year 2008 guidance at a range of $3.50 to $3.54.
"We are raising our guidance yet again, reflecting our confidence in anticipated cost reductions and share gains in key markets," said Mark Hurd, HP chairman and chief executive officer. "We added more than 2,000 sales positions in the past year through acquisitions and hiring. HP remains well positioned for profitable growth as we continue to focus on our numerous cost initiatives and improve our market coverage."
Wall Street has earnings pegged at $3.52 for the year ending October 2008, versus the two months-ago forecasts of $3.37.
The company’s first-quarter report also showed non-GAAP earnings of 86 cents per share, outperforming the previous year’s 65 cents and exceeding the consensus estimate 6%. First quarter net revenue increased 13% on a year-over-year basis.
In addition to experiencing strong growth, this Growth & Income pick offers a dividend yield of 0.7%. This is a solid yield considering that HP is operating in an industry that is not big on paying dividends.
The company’s return on equity (ROE) stands at 22%, well above the industry’s 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
TJX - The TJX Companies - Growth & Income pick offers a ROE of 40%, squashing the industry average of 13%
The TJX Companies, Inc. (TJX) recently reported February sales, which totaled $1.3 billion. The result was up 6% from the year-prior $1.2 billion. Consolidated comparable store sales showed an increase of 3% on a year-over-year basis. This Growth & Income pick offers a ROE of 40%, squashing the industry average of 13%. The company’s dividend yield of 1.1% also outperforms the industry.
Full Analysis
The TJX Companies is a worldwide off-price apparel and home fashions retailer with eight businesses, and more than 2,400 stores. The company’s umbrella includes T.J.Maxx, Marshalls, HomeGoods, and A.J. Wright, in the U.S., Winners and HomeSense in Canada, and T.K. Maxx in Europe.
Bob’s Stores is a value-oriented, casual clothing and footwear superstore in the Northeastern U.S. The company’s off-price mission is to deliver a rapidly changing assortment of quality, brand name merchandise at prices that are 20-60% less than department and specialty store regular prices.
TJX’s target customer is a middle to upper-middle income shopper, who is fashion and value conscious and fits the same profile as a department store shopper, with the exception of A.J. Wright, which reaches a more moderate-income market, and Bob’s Stores, which targets customers in the moderate to upper-middle income range.
The company recently reported February sales, which totaled $1.3 billion. The result was up 6% from the year-prior $1.2 billion. Consolidated comparable store sales showed an increase of 3% on a year-over-year basis.
In mid-February, The TJX Companies posted solid fourth-quarter and full-year results, which included fourth-quarter income from continuing operations of 66 cents per share. The result topped last year’s 51 cents and was ahead of the consensus estimate.
For the year ending January 31, 2009, TJX expects earnings per share from continuing operations to range between $2.20 to $2.25 per share. Analysts are forecasting $2.22, an increase form the two months-ago level of $2.12.
The company’s earnings per share expected to grow by 13% over the next 3 – 5 years, which is in line with the industry average.
This Growth & Income pick offers a ROE of 40%, squashing the industry average of 13%. The company’s dividend yield of 1.1% also outperforms the industry.
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
WMB - Williams Companies - Quarterly earnings also increased on a year-over-year basis, topping the consensus estimate by about 28%
Williams Companies, Inc. (WMB) boasts a Zacks #1 Rank (Strong Buy) as it did when featured about a month ago, and as was the case last month, the company is trading near a 52-week high. This Growth & Income pick recently increased the quarterly cash distribution and has seen analysts lift earnings forecasts. The company’s earnings are expected to grow by 13% over the next 3 – 5 years, more than doubling the industry’s average of 6%. Williams Companies' ROE of 16% also tops the industry average of 14%.
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.
Oil price had crossed the $100 mark some time ago, and these days headlines of oil’s record-breaking levels appear quite frequently. WMB, a Zacks #1 Rank (Strong Buy) company and a player in the oil & gas pipelines industry, has also followed the upward trend, trading not too far off a 52-week high level.
This Growth & Income pick has seen more than just share price growth. The solid fundamentals behind its rising stock price include year 2007 earnings growth from the year-prior $1.62 per common unit to $1.97 per common unit. Quarterly earnings also increased on a year-over-year basis, topping the consensus estimate by about 28%.
On the income side, 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%.
Wall Street lifted full-year 2008 earnings estimates for WMB. Current forecasts of $1.84 per share are above the two months-ago level of $1.78. The company’s earnings are expected to grow by 13% over the next 3 – 5 years, more than doubling the industry’s average of 6%.
Williams Companies' return on equity (ROE) of 16% also tops the industry average of 14%.
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
HLF - Herbalife - experienced strong growth from a number of its key markets, including the U.S. and Taiwan
Herbalife, Ltd., (HLF) reported outstanding fourth quarter results on Feb 26 that included 29% income growth on very strong sales from a number of its key territories. The company proceeded to boost its guidance, adjusting its full-year earnings estimates to $3.25-$3.30 per share. Herbalife shares have responded accordingly to the good news, accelerating to a new 52-week, and all-time high.
Full Analysis
Herbalife sells weight management, nutritional supplement, energy and fitness, and personal care products worldwide. It sells its products in 65 countries through a network of approximately 1.7 million independent distributors, as well as through retail stores and sales force in China. Herbalife was founded in 1980 and is based in Grand Cayman, Cayman Islands.
Herbalife has had quite a year. The company reported excellent fourth quarter results on Feb 26, which gave their stock price a very nice injection of strength, sending shares sharply higher while plenty of other companies were getting battered.
Net income for the fourth quarter was up 19% to $578.1 million. Net income jumped 29%, led by double digit sales growth in the U.S., coming in at $53.8 million. This produced earnings of 77 cents per share, well ahead of analyst estimates.
After the awesome quarterly results Herbalife boosted its guidance. The company anticipates 2008 earnings of between $3.25 and $3.30 per share. Previously, Herbalife said it expected earnings per share of $3.17 to $3.23. Estimates exclude realignment expenses and other one-time costs.
This marks the fourth time in four quarters that the company has surprised and beaten analyst estimates, having done so by an average of three cents, or 4.88%.
The company noted that it experienced strong growth from a number of its key markets, including the U.S. and Taiwan, where sales were up 22% and 19% respectively.
For the full year, income rose 34 percent to $191.5 million, or $2.63 per share, from $143.1 million, or $1.92 per share, in 2006. Revenue grew 14 percent to $2.15 billion from $1.89 billion in the previous year.
The analyst community has been bullish on Herbalife, with every single covering analyst raising current-year estimates within the last 30 days. The current-year consensus estimate has risen 12 cents to its current projection of $3.32 per share.
Herbalife shares have responded accordingly to the excellent quarterly results and bullish guidance, advancing in a very smooth trend from $39 to $49, representing a very nice 25% short-term gain.
Shares recently closed above the $48 level, which had been acting as resistance. Moving forward, should shares stall and retrace, this could be a nice area of support and a location for a bounce. In the meantime, the trend is strong and the outlook is bullish, which should help share of HLF to continue to advance.
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
SAM - The Boston Beer Co - reported results that were well ahead of analyst expectations
The Boston Beer Company (SAM) suffered the ill-effects of a soft quarter last fall when the company disappointed the street and its stock price took a serious beating. After reporting excellent fourth-quarter and full-year results on March 11, the company has done plenty to restore shareholder confidence. Its stock price responded accordingly, accelerating forward and once again approaching its previous high-water mark.
Full Analysis
The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States, Canada and Europe. The company markets approximately 20 beers under the 'Sam Adams' brand name. The company sells its products to a network of wholesale distributors, who then sell to retailers and various other outlets. The Boston Beer Company was founded in 1984 and is based in Boston, Massachusetts.
The Boston Beer Company's share price took a pretty serious hit in early November after the company's third quarter results were lower than expected by the analyst community. Since the plunge, shares have not only stabilized, they have gotten into a pretty darn bullish mood, logging significant gains in just the last few weeks on the heels of a very strong quarter.
On March 11, The Boston Beer Company reported results that were well ahead of analyst expectations. Revenue rose 26% to $92.2 million. Analysts were looking for $88.9 million. Income also surged forward, moving to $6.8 million, more than double last year's number of $2.5 million. This produced earnings of 46 cents per share, well ahead of analyst expectations.
Even more impressive, the company noted that these gains in both revenue and income came after as it was weathering a 21% increase in its cost of goods. This has been a common theme for producers who are supplied by the commodity markets, as the costs of various agricultural and energy products has sky-rocketed.
In spite of the previously mentioned third quarter miss, the company has a very strong history of surprising and beating analyst estimates. Even after calculating the missed quarter, the company has beaten analyst estimates by an average of seven cents, or 25% over the last four quarters.
The company also noted it sold about 20% more barrels in the quarter. Revenue per barrel rose about 5% in the quarter, helped by price increases and a drop in discounts.
For the year, profit grew 24% to $22.5 million, or $1.53 per share, from $18.2 million, or $1.27 per share, in the prior year. Revenue grew 20% to $341.6 million from $285.4 million in 2006.
Boston Beer said it is now expecting full-year 2008 earnings to land between $1.70 and $2.00 per share. The company also said that its first quarter shipments appear to be up 10% from last year.
As previously mentioned, SAM shares have been on a fierce rally after the great quarterly results hit the street, accelerating from less than $35 to over $50. The interesting component of the aggressive formation is that SAM shares have not just held their gains, they have been building on them. Shares have yet to take a little breather, and have continued their aggressive upward trajectory. With shares currently approaching the $50 level, the next target would be the high-point established last fall after the crash just above $55. Take a look at the surge in the chart below.
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
CRZO - Carrizo Oil & Gas - riding a tidle wave of significantly enhanced production capacities and the bullish trend in energy prices
Carrizo Oil & Gas Inc. (CRZO) is cashing in on the big boom in the energy sector. The company reported impressive fourth-quarter results on Feb 28 that included a 47% jump in revenue. Carrizo has been riding a tidle wave of significantly enhanced production capacities and the bullish trend in energy prices. Estimates are on the rise, and the share price is up trending. This company looks well positioned to capitalize from the high-demand summer season that is close at hand.
Full Analysis
Carrizo Oil & Gas Inc. engages in the exploration and production of oil and natural gas. The company primarily operates in the Gulf Coast off Texas and Louisiana. Carrizo was founded in 1993 and is based in Houston, Texas.
Carrizo is not a particularly large company, with a market cap. of just $1.7 billion, but that obviously hasn't prevented it from leveraging its resources in order to produce great results for shareholders.
This dynamic was evident when the company reported excellent fourth quarter results on Feb 28. Revenue jumped to $39.9 million from $24.3 million. Net income rose to $5.6 million from $4.3 million, producing earnings of 26 cents per share, well ahead of analysts who were looking for 21 cents.
Carrizo has been able to consistently beat the street, having surprised to the upside for the last four quarters by an average of five cents, or 27%.
Two key factors led to the strong quarterly results. The company's production capacity grew 54%, moving from 3.66 billion to 5.64 billion daily units. That is a very big jump and it says plenty about this company's ability to pull oil out of the ground.
The second factor would be the gasoline consuming community, which has up to this point shown very little elasticity in demand. Sky-rocketing prices for a barrel of crude and the cost of gasoline at the pump have been a bastion of profitability for companies smartly operating in the right segment of the market.
Full-year revenue increased to $125.8 million from $82.9 million.
Estimates for the company are up as well, as the analyst community adjusts its forecasts based on the good quarter. The current-year forecast has risen five cents in the last 30 days to its current projection of $1.29 per share.
Carrizo shares have been in a really nice up trend for the last year, responding pretty closely to the short-term fluctuations in the oil market. This relationship was in play last week when oil pulled back to the $100 level, providing temporary relief to people on the other side of that bet. Carrizo shares traded lower with the oil market. But as the small reversal faded and oil once again headed north, shares of Carrizo followed. And they now look well positioned to continue the trend as they approach the 52-week and all-time high just past $62.
This is a segment of the market that has a chance to produce solid results for investors searching for options in a very challenging market. Take a look at how the short-term downtrend has just been broken by the strong upside move.
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
JAKK - JAKKS Pacific - company beat on fourth quarter estimates by 41.33%
JAKKS Pacific is finding toys to be profitable as it capitalizes on licensing agreements and acquisitions to grow its toy arsenal. The company beat on fourth quarter estimates by 41.33%. It has surprised on estimates three out of the last four quarters by an average of 14.47%. JAKKS is also cheap. It has a 2008 P/E of only 9.40.
Full Analysis
JAKKS Pacific, Inc. (JAKK) is a multi-brand toy company, headquartered in California, that grows its product line through design, licensing agreements and acquisitions.
JAKKS, a Zacks #1 Rank (Strong Buy), markets lines under various brand names including Play Along, Creative Designs International, Toymax, Funnoodle, Go Fly a Kite, and Plug It In & Play TV Games. Its product categories include Action Figures, Art Activity Kits, Stationary, Water toys Construction Toys, Electronics, Dolls, Role Play, and Dress Up.
JAKKS, along with with THQ Inc., has worldwide publishing and marketing rights to World Wrestling Entertainment video games.
The company recently added to its licensing arsenal by signing a worldwide agreement with double-platinum American country music singer Taylor Swift. Swift has had one Number One single on Billboards Hot Country Songs list from her debut album.
JAKKS plans to launch a line of fashion dolls, role-play toys, including Swift's signature crystal guitar, accessories and craft sets that play up the world of a country music star. The company expects the product line to ship in the Fall 2008.
The company is hoping the product line is a big hit with tweens, following in the model of Hannah Montana. Swift is only 19 years old.
JAKKS has been running on all cylinders for some time. The company reported fourth-quarter earnings on Feb 20 and easily beat analysts consensus estimates by 31 cents a share, or 41.33%. Net income increased 48.3% to $34.4 million, or $1.06 per share, compared to $23.2 million, or 73 cents per share, in 2006.
Net sales increased 19.6% to $284.1 million compared to $238.3 million in the year-ago period.
"We had a more robust fourth quarter than expected, driven by strong sales of our Disney toys, action figures and Plug It In & Play electronic game products, as well as our video game joint venture. We continue to see strong sell-through in the first quarter of 2008, that we believe is due to a combination of gift card purchases and the popularity of the Disney tween pop star Hannah Montana," said Jack Friedman, Chairman and Chief Executive Officer.
The company is also expecting a hearty 2008. JAKKS saw strong positive feedback on its 2008 line from two recent toy shows in Dallas and Hong Kong and that was before signing country star Swift to the licensing agreement. The company is expanding its kids gourmet food products line, led by Cupcake Maker and Spa Factory, and has new innovations for the Hannah Montana line including new collectible fashion dolls, role play and interactive play sets and electronics.
In addition, in February, the Board of Directors authorized a stock buy-back program of up to $30 million of common stock.
Brokerage analysts responded to the great quarter by raising estimates for the first quarter and the year. In the last month, four out of six covering analysts raised consensus estimates by six cents to 20 cents per share from 14 cents per share. For the full year, six out of seven analysts raised consensus estimates by 32 cents to $2.98 from $2.66 per share.
The company is trading at an attractive valuation. Its 2008 P/E is 9.40. JAKKS' price-to-book is 1.15, which is below the industry average of 2.98. The company has a solid average five year return on equity of 11.48%.
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
RKT - Rock-Tenn Co - company is finding pricing power in this economy
Rock-Tenn Company (RKT) manufactures packaging products, bleached and recycled paperboard and merchandising displays. The company has 92 facilities located in 26 states, Canada, Mexico, Chile and Argentina.
The company, a Zacks #1 Rank (Strong Buy), has four divisions: Packaging Products, Paperboard, Merchandising Displays and Corrugated. The Packaging Products segment produces folding cartons and solid fiber interior packaging. The Paperboard segment collects recovered paper and manufactures recycled clay-coated and specialty paperboard, including gypsum paperboard liner, 100% corrugating medium, bleached paperboard and laminated paperboard products.
The Merchandising Displays segment produces temporary and permanent point of purchase displays. The Corrugated segment manufactures corrugated packaging to sell to industrial and consumer products manufacturers and corrugated sheet stock for sale to corrugated box manufacturers.
On Jan 23, the company announced first-quarter earnings and surprised by five cents, or 10.87%. RKT reported net income of $17.5 million, or 46 cents per share, for the first quarter compared to $15.1 million, or 39 cents per share, for first-quarter 2007.
Net income, adjusted for restructuring and other costs primarily related to the closing the Chicopee, Massachusetts folding carton plant, came in at 51 cents per share. Analysts expected 46 cents a share.
Sales increased 11.7% from a year ago to $596.3 million from $533.9 million.
"Strong sales growth in our consumer packaging, corrugated packaging and merchandising display segments drove our 27.5% increase in adjusted net income per share. Operating efficiencies flowing from our commitment to performance excellence in our consumer packaging segment enabled us to achieve the return on sales target of 5% that we established when we acquired the Gulf States assets in 2005." said James A. Rubright, Rock-Tenn Company Chairman and Chief Executive Officer.
Rock-Tenn announced on March 5 that it had completed its acquisition of Southern Container Corporation. Southern Container manufactured containerboard and corrugated packaging. With the acquisition, Rock-Tenn becomes the eighth largest manufacturer of containerboard in North America. The company financed the acquisition with $1.4 billion in new financing, including $1.2 billion in new senior secured credit facilities and $200 million of 9.25% senior notes due 2016.
The company is finding pricing power in this economy. It continues to increase prices. In the first three months of 2008, RKT announced four price increases on uncoated and coated recycled paperboard, bleached paperboard, and millennium grades of recycled paperboard.
Brokerage analysts are optimistic about the second quarter and full year. Two out of three covering analysts raised consensus estimates for the second quarter by one cent to 69 cents from 68 cents a share in the last 30 days. For the full year 2008, two out of three analysts raised consensus estimates in the last 30 days by 10 cents to $2.73 from $2.63 per share.
Rock-Tenn has a P/E of 11.29. Its price-to-book is 1.94. Covering analysts are estimating year-over-year growth of 25.96% in 2008, stronger than the estimated industry growth forecast of 19.8%.
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
GNK - Genco Shipping & Trading - rates obtained by the fleet increased 52.4%
Genco Shipping & Trading sees the surge in commodities demand first hand as the international shipping lanes hum with traffic. The company saw its rates sharply increase in 2007. Genco is sharing the profits with shareholders with a $50 million share repurchase program in 2008 and a heafty dividend of 6.20%. Genco has surprised on estimates the last two quarters.
Full Analysis
Genco Shipping & Trading Limited (GNK) is an international shipping company that transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. The company's fleet of dry cargo vessels consists of Panamax, Handymax and Handysize vessels.
Genco, a Zacks #1 Rank (Strong Buy), has a young fleet with an average age of six years compared to 16 years in the industry. The company's strategy is to manage and expand the fleet in a way that enables it to pay dividends to shareholders.
On Feb 13, Genco announced its fourth-quarter earnings and surprised on estimates by 12 cents, or 11.54%. Net income for the fourth quarter 2007 was $33.5 million, or $1.16 per share, compared to $16.5 million or 65 cents per share in the fourth-quarter 2006. Analysts expected $1.04 per share.
Revenues increased 84% to $65.7 million from $35.7 million in the year-ago period, primarily due to the operation of a larger fleet.
The company's rates increased in 2007 compared to 2006. The average daily time charter equivalent, or TCE, rates obtained by the fleet increased 52.4% to $31,140 per day for the fourth quarter compared to $20,435 in the same period in 2006.
The increase in TCE rates was due to higher charter rates for five of the Handysize vessels, four of the Panamax vessels, and three of the Handymax vessels in the current fleet. Additionally, higher rates were achieved due to the operation of four Capesize vessels which were obtained as part of the Metrostar acquisition.
Genco also announced a $50 million share repurchase program for 2008.
The company is bullish about its prospects in 2008.
"Going into 2008, we are pleased to have taken delivery of the final vessel under our agreements to acquire six drybulk vessels from affiliates of Evalend Shipping Co. S.A. and remain on schedule to take delivery of two Capesize vessels, one later this month and the other later this year," said Robert Gerald Buchanan, President of Genco.
"With the combination of having approximately 80% of our fleet's estimated available days secured on contracts for 2008 and having two vessels with profit sharing agreements, we are in a strong position to provide shareholders with a high degree of earnings visibility while maintaining the ability to benefit from future rate increases," he said.
Analysts responded to the earnings report by being equally bullish about the company. Two out of six covering analysts raised estimates for the first quarter in the last 30 days by three cents to $1.45 from $1.42 per share. For the year, two out of six analysts also raised estimates in the last 30 days by a consensus of 16 cents to $6.86 from $6.70 per share.
Genco is well-positioned as a value stock with a dash of growth and income. Analysts are estimating year-over-year growth in 2008 at 116.35%. As a bonus, GNK also pays a 6.20% dividend.
The company is an attractive value play. Genco's 2008 P/E is only 7.82, well below the industry average of 20. Its price to book is 2.49. Genco has an outstanding average five year return on equity of 20%. The company reports first-quarter earnings on May 7.
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
