Bucyrus International is thriving despite a poor economic backdrop. Booming commodities markets and strong global growth are accounting for the success. Over the past four quarters, the company has posted an average surprise of 15.6%. During the past two months, this year's earnings estimates have increased 39 cents to $5.14 per share.
Full Analysis
Bucyrus International, Inc. (BUCY) engages in designing, manufacturing, and marketing draglines, electric mining shovels, and rotary blast-hole drills used for surface mining. It also provides aftermarket replacement parts and services for its machines.
The company's equipments are used for mining copper, thermal coal, metallurgical coal, oil sands, iron ore, molybdenum, phosphate, bauxite, gold, diamonds, and uranium. Bucyrus International also offers engineered replacement parts, maintenance and repair labor, technical advice, refurbishment and relocation of machines, structural and mechanical engineering, and non-destructive testing.
BUCY reported a blowout fourth quarter in which it earned $1.22 per share, a full 38.6% ahead of estimates. Sales more than doubled to about $548 million. The overall increase in surface mining sales reflected the ongoing global demand for Bucyrus' products and services, which continues to be driven by the sustained strength in markets for commodities mined by Bucyrus machines.
It also raised guidance for 2008. Bucyrus said in its conference call with investors that it expects 2008 revenue of $2.35 billion to $2.45 billion. Analysts expected revenue of $2.25 billion for the year, on average.
Not surprisingly, analysts had great things to say about the company. Baird's Robert F. McCarthy maintained his "Outperform" rating for the stock, but raised his price target by $9 to $130. He estimates the company's EBITDA forecast implies earnings of about $4.75 to $5.50 per share for the year. Analysts, on average, expect a 2008 profit of $4.66 per share.
Seth R. Weber of Banc of America Securities backed his "Buy" rating for the South Milwaukee, Wis., company and boosted his price target by $4 to $108, saying he expects Bucyrus to benefit from strong commodity prices and growing demand for the commodities from emerging economies.
Over the past four quarters, the company has posted an average surprise of 15.6%. During the past 60 days, this year's earnings estimates have increased 39 cents to $5.14 per share. Earnings are slated to grow another 23% next year. The stock is cheap with a PEG ratio of 0.8.
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
Tuesday, April 01, 2008
BUCY - Bucyrus Intl - to benefit from strong commodity prices and growing demand for the commodities from emerging economies
EOG - EOG Resources - Brokerage analysts have been raising estimates on the company for the quarter
EOG Resources, Inc. (EOG) is drilling for profits as natural gas prices keep rising. On Feb 28, EOG announced two major new crude discoveries which the company expects to begin producing by next year. The company beat on estimates in the fourth quarter by 20.56% and has surprised in three of the last four quarters by an average of 9.86%.
Full Analysis
EOG Resources is a large independent oil and natural gas company with proven reserves in the United States, Canada, offshore Trinidad and the United Kingdom North Sea.
In 2007, 85% of EOG’s production was natural gas and 15% was crude oil and natural gas liquids. A total of 83% of the company's production came from the United States and Canada. For the full year 2007, total company production increased 11% on a daily basis as compared to 2006. In the United States natural gas daily production increased 19%.
On Feb 28, the company, a Zacks #2 Rank (Buy), announced major new crude oil discoveries and raised its production growth forecasts for both 2009 and 2010 to the range of 13% to 15% compared to the prior growth estimate of 10%. The company believes that crude oil and natural-gas liquid volumes will likely grow faster than natural-gas production.
This bullish news was in addition to the outstanding fourth-quarter earnings the company reported on Feb 7. Profit for the quarter soared 51%, boosted by large one-time gains and a jump in revenue.
EOG earned $358 million, or $1.44 per share, compared with $237.2 million, or 96 cents per share, for the same quarter in 2006. Excluding special items, the company posted $1.29 per share, beating analysts' estimates by 20.56% or 22 cents per share.
Brokerage analysts have been raising estimates on the company for the quarter and the year as natural gas prices remain elevated. For the quarter, nine out of 17 covering analysts raised for the quarter by four cents to $1.47 from $1.43. Two analysts also lowered.
For the year, 12 out of 21 analysts raised consensus estimates by 33 cents to $6.14 from $5.81 per share. Two analysts also lowered.
Analysts expect year-over-year growth in the first quarter of 32.11%. For the year, analysts estimate year-over-year growth of 41.11%.
The company also announced on Feb 7 that it was increasing its dividend by 33% to 12 cents per share, providing a yield of 0.40%.
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
WLL - Whiting Petroleum - had its earnings estimates seriously boosted by the analyst community
Whiting Petroleum Corporation (WLL) has been pumping up its profits as energy prices continue to accelerate. The company reported awesome fourth quarter results that included an amazing 63% jump in earnings. Estimates continue to be increased by the analyst community, and the company is projecting production growth of more than 5% in 2008. With the high-demand summer season close at hand this is another energy company that looks well positioned to benefit from the trend.
Full Analysis
Whiting Petroleum Corporation engages in the exploration and production of oil and gas primarily in the Rocky Mountains, Gulf Coast and Michigan regions of the United States. It sells oil and natural gas to the end users, marketers, and other purchasers. The company was founded in 1983 and is headquartered in Denver, Colorado.
Whiting is yet another energy exploration company that is cashing in on surging energy prices. This was evident when the company reported its fourth quarter results on Feb 27.
Sales grew 46% from last year to $251.1 million. Net income also jumped sharply, up 63% to $45.8 million. This produced earnings of $1.08 per share, well ahead of analyst expectations of 99 cents.
Whiting sold a barrel of oil during the quarter for an average price of $74.66, compared to the average selling price from the previous year of $50.57. The company also said it made $6.37 for each 1,000 cubic feet of natural gas it sold, compared to $6.18 last year.
Whiting's total oil and gas production actually dipped 2% when compared to last year, but has since provided a bullish forecast for its 2008 production estimates. The company said it expects to boost production by 5.4% to 6.7% this year. The company predicted it will produce the equivalent of 15.5 million to 15.7 million barrels of oil in 2008, up from 14.71 million in 2007.
With the bullish trend running through the energy markets, Whiting has had its earnings estimates seriously boosted by the analyst community. Within just the last 30 days, six of nine covering analysts have boosted their current-year estimates, driving the consensus estimate higher by 77 cents to its current projection of $4.21 per share.
Whiting shares took a little hit on Mar 19 when crude prices temporarily dipped below the $100 mark. Since then shares have put together a very nice recovery and have rallied right back to their 52-week high over $66. Moving forward, look for the previous breakout area at $64 to be a strong source of support should shares dip lower. But as it stands, the upward trend is strong and the energy markets are not showing any signs of slowing down, both of these factors should enable Whiting to grow its profits.
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
PDC - Pioneer Drilling - company reported third-quarter earnings on Feb 27 and beat estimates by 45%
Pioneer Drilling is growing as this oil and gas services company diversifies geographically around the United States and dips its toe into international expansion. The company has surprised on estimates the last two quarters on average of 27.78%.
Full Analysis
Pioneer Drilling Company (PDC) is an oil and gas services company that provides land contract drilling services to independent and major oil and gas exploration and production companies.
Pioneer, a Zacks #1 Rank (Strong Buy) has rigs located in the prolific natural gas producing regions of North, South and East Texas, Oklahoma and the Rocky Mountains.
The company's rig fleet consists of 66 land drilling rigs with depth ranges of 6,000 - 18,000 feet. Many of the rigs are designed to be fast moving and quick rig up. The company is geographically diverse. PDC has 20 rigs in the East Texas division, 17 rigs in the South Texas division, 13 rigs in the Rocky Mountains divisions, 10 rigs in the North Texas division and six rigs in the Oklahoma division.
The company has been growing through acquisitions. In 2005, PDC established operations in Western Oklahoma and the Williston Basin of North Dakota and Montana through acquisitions.
On March 3, the company closed on its previously announced acquisition of WEDGE Well Services, LLC. The WEDGE companies provide oil and gas well workover, wireline and fishing and rental services throughout the United States.
Pioneer also separately purchased Prairie Investors, d/b/a Competition Wireline, located in Billings, Montana. Competition Wireline produces the latest pulsed-neutron tool for logging oil and gas wells. Pioneer also acquired six additional wireline trucks.
Pioneer paid $340 million for both companies, securing a $400 million, five-year, senior secured revolving credit facility for the transactions.
After the acquisitions, the company re-organized into two divisions: the Drilling Services Division and the Pioneer Production Services Division. Pioneer's Drilling Services Division will operate 69 drilling rigs throughout the U.S. and Colombia.
The WEDGE companies and Competition Wireline will now make up the Production Services Division which will operate 62 workover rigs, 51 wireline trucks and approximately $13 million in fishing and rental tools throughout the United States. Pioneer estimates its Production Services Division will contribute, on an annualized basis for the 2008 calendar year, $165 million to $185 million of revenue.
The company's growth strategy includes expanding internationally.
"By organizing our Company into operating divisions, each headed by experienced, proven leaders, we further position Pioneer to take advantage of this talent for continued expansion and growth. Our production services acquisitions, together with our recent international expansion in our Drilling Services Division, are major steps toward our long- held strategic goal of transforming Pioneer into a multi-national energy services provider," said Wm. Stacy Locke, President and CEO.
The company reported third-quarter earnings on Feb 27 and beat estimates by nine cents, or 45%. Net income for the quarter was $14.8 million, or 29 cents per share, compared with net income of $24 million, or 48 cents per share, for the same period in 2006. Analysts expected 20 cents per share.
Pioneer changed its fiscal year end from March 31 to December 31, resulting in a nine month reporting year for 2007.
For the year, reduced down to just nine months, revenue increased $1.1 million to $313.9 million from $312.8 million for the comparable nine months in 2006 due to the advent of Colombian operations, the addition of an average of 7 rigs which were offset by an 8% decline in rig utilization rates and a decrease in average revenues of $621 per day.
Despite a more challenging environment in the industry, brokerage analysts are still optimistic about 2008. Three out of six covering analysts raised first quarter estimates in the last 30 days by five cents to 22 cents from 17 cents per share.
Analysts have also hiked estimates for the full year, with three out of six raising estimates on average of 41 cents to $1.20 from 79 cents per share.
The company is an attractive value pick in the oil and gas services sector. It has a P/E of 12.86. Its price-to-book is 1.75, under the industry average of 1.97.
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
