Kirby keeps rolling along. The company 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 month. Those estimates have risen 11 cents to $2.75 per share. The stock is valued reasonably with a PEG ratio of 1.3.
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 month. Those estimates have risen 11 cents to $2.75 per share. The stock is valued reasonably with a PEG ratio of 1.3.
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Thursday, April 03, 2008
KEX - Kirby Corp - stock is valued reasonably with a PEG ratio of 1.3
CBI - Chicago Bridge & Iron Co - ROE for CBI is 26%, which is double the industry’s average of 13%
Chicago Bridge & Iron Company N.V. (CBI) posted full-year 2007 results in late February, showing growth in many areas, which included 2007 earnings per share of $1.71 versus the year 2006 result of $1.19. Investors who want income combined with growth should consider this company as growth is not the only story here. Chicago Bridge & Iron declared an interim dividend of four cents per share, which was paid out on March 31, 2008. The company’s dividend yield of 0.4% is higher than the industry average. The ROE for CBI is 26%, which is double the industry’s average of 13%.
Full Analysis
Chicago Bridge & Iron Company N.V., together with its subsidiaries, is an engineering, procurement and construction company worldwide. The company’s customers are predominantly from the energy and natural resource industries.
With more than 70 proprietary licensed technologies and 1,500 patents and patent applications; CB&I is uniquely positioned to take projects from conceptual design, through technology licensing, engineering and construction and final commissioning.
The company employs about 17,000 individuals in more than 80 locations.
CBI’s most recent contract announcement occurred in late March. It is valued at approximately $40 million and is for several large water storage tanks to be built at an independent water and power plant project in the Middle East. The project is scheduled to be completed in early 2010.
The company posted full-year 2007 results in late February, showing growth in many areas. Earnings per share of $1.71 outpaced the year 2006 result of $1.19 per share. Backlog increased by 69% on a year-over-year basis. Consolidated 2007 revenue increased 40% from 2006 to $4.4 billion.
“2007 was a good year with strong earnings, cash flow and revenue growth,” said Philip K. Asherman, President and CEO. “Substantial new awards have led to record backlog, which positions us for continued success in 2008 and beyond.
For 2008, CB&I issued an earnings per share guidance of $2.40 to $2.65. Wall Street has 2008 earnings pegged at around $2.59 right now. Three out of ten covering analysts lifted forecasts to that level from last month’s expectations of $2.55. Two months ago, projections stood at $2.44. The most accurate estimate is also the most bullish at $2.63. The company's earnings per share expected to grow by 25% over the next 3 - 5 years, which is much more favorable than the industry average of 15%.
Investors who want income combined with growth should consider this company as growth is not the only story here. Chicago Bridge & Iron declared an interim dividend of four cents per share, which paid out on March 31, 2008. The company’s dividend yield of 0.4% is higher than the industry average as most companies in its industry offer no dividend.
The return on equity (ROE) for CBI is 26%, which is double the industry’s average of 13%. Its net profit margin of 3.8% also outperforms the industry average of 2.9%.
Content Courtesy: Zacks Investment Research
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HAE - Haemonetics Corp - expects revenue growth between 11% and 12%, up from the previous 10% and 12%
Haemonetics Corporation's (HAE) share price has been locked into a very smooth up trend for the last two months after the company reported solid third quarter results on Jan 31 in which revenue was up sharply from the same period last year. The company is also engaged in a number of initiatives to drive its growth trajectory, including restructuring activities in the European zone and the acquisition of third party products. Shares just closed above a key level at $60, and look well positioned to continued the trend.
Full Analysis
Haemonetics Corporation designs, manufactures, and markets automated systems for blood donors and surgical patients worldwide. It also markets data management systems for blood and plasma collection agencies. Haemonetics was founded in 1971 and is based in Braintree, Massachusetts.
Haemonetics Corp.'s share price has been on a very steady climb since the summer of 2003, advancing from just above $15 to their high-water mark of over $60. After dipping lower earlier this year in the weakened economic environment, the company's share price has once again transitioned into its old form and locked into a nice up trend.
The recent surge in share price has been driven by the company's solid third quarter results, reported on Jan 31. Net revenue was up 18.6% to $135 million. Net income was actually down 15% to $14 million, but when excluding charges in 2007 and 2008, adjusted net income was $15 million, up 12.5%. This produced adjusted net earnings of 57 cents, up 16.4%.
Haemonetics ended the third quarter with a cash balance of $117 million, and just $12 million of debt. During the quarter, the company produced $25 million of cash flow from operations and invested $15 million in capital expenditures.
Haemonetics is executing a number of initiatives designed to drive growth that appear to be progressing successfully. An ongoing restructuring effort in Europe has led to 26.5% revenue growth in that region. In addition, the acquisition of the TEG Thrombelastograph Hemostasis Analyzer business is expected to contribute $16 million in annual revenues.
Haemonetics also provided bullish fiscal 2008 guidance, saying that it expects revenue growth between 11% and 12%, up from the previous 10% and 12%. The company narrowed its gross profit guidance to $250-$253 million, and said that it expects full-year earnings to be between $2.07 and $2.12 per share.
When the third quarter results hit the street the company's share price responded accordingly and jumped higher, above $60. But until just two days ago, shares had been unable to move beyond this point in spite of repeated attempts to push higher. Now that the level has been breached, this area should act as a very nice level of support moving forward should shares take a breather and dip lower. Beyond this level is the 52-week high residing just above $63. With the company producing solid earnings and a bullish forecast in hand, this company's stock should be able to maintain its upward ascent in spite of the challenging environment.
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ELP - Companhia Paranaense de Energia - 2008 P/E of 8.68, under the industry average of 18.4
Companhia Paranaense de Energia- COPEL is riding the wave of Brazil's economic success in agribusiness as it sees power consumption continuing to rise in the industrial and commercial segments. ELP is an attractive value pick, with a 2008 P/E of 8.68.
Full Analysis
Companhia Paranaense de Energia - COPEL (ELP) generates, transmits and distributes power to the State of Parana in southern Brazil.
Copel is the largest company in Parana with 3.38 million consumers covering virtually 100% of homes in urban areas and 90% in rural areas.
Connected customers include 2.6 million homes, 58,000 industries, 281,000 commercial establishments and 331,000 rural properties. Copel makes an average of 70,000 new connections every year.
On Mar 25, the company announced that it had received a construction permit from the Parana State Environmental Institute for the Maua Hydroelectric Power Plant on the Tibagi River in the northern region of Parana. Copel holds a 51% interest in the project in partnership with the federal state-owned company Electrosul.
On March 3, the company reported excellent 2007 year-end results. Net operating revenues rose 10.9% compared to 2006, to R$ 5,422 million. In the 4Q07, net operating revenues were R$ 1,434 million.
Additionally, net income year-to-date was R$ 1,107 million, or R$ 4.04 per share. Net income in the 4Q07 alone was R$ 312 million, or R$1.14 per share.
Copel's total power consumption billed in 2007 rose 6.8% compared to 2006. The company said the increase in performance was due to several factors including higher average temperatures in 2007 in relation to 2006; growth in average income levels due to the higher minimum wage and greater availability of credit (a drop in interest rates); improvement in the industrial market driven by the recovery in crop output and higher exports in some sectors; and the creation of 122,000 new formal jobs in the state, which was 7% higher than in 2006.
Residential consumption, which accounts for 25.7% of the company's market, rose by 6.6% in 2007, its best performance in the past ten years. Average consumption per residential customer was 3.6% higher than in 2006.
Industrial consumption, which accounts for 38.7% of Copel's market, was up 7.5% over 2006. The company attributes the increase to the positive results in Parana's economy in the agribusiness, industrial and service sectors. State exports grew by 23.3% in 2007, led by soybeans, corn, cars and poultry sales. Parana is Brazil's largest soybean and corn producer.
Commercial consumption was the best performing sector. It accounts for 18.6% of Copel's market and grew by 9.2% year-over-year. The company said that growth in the commercial sectors was due to higher levels of available income which meant expansion into high energy consumption areas such as supermarkets and shopping malls.
Brokerage analysts have been raising full year consensus estimates on the company. Over the last 90 days, estimates have risen by 37 cents per share to $1.93 from $1.56 per share. In the last 30 days, one out of three analysts have raised by one cent to $1.93 from $1.92 per share.
ELP is cheap. The company has a 2008 P/E of 8.68, under the industry average of 18.4. It's price-to-book is only 0.84. In 2007, the return on net equity was 15.3%. As an extra bonus, the company also pays a dividend of 1.40%.
Content Courtesy: Zacks Investment Research
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