Dawson Geophysical is making waves in its industry. Investors are anticipating the release of its fiscal second-quarter earnings on May 7. The stock has staged a powerful rally off of its February lows near $50. Next year's earnings estimates have increased 26 cents to $4.93 per share. This would represent 11.4% growth over 2008 earnings.
Full Analysis
Dawson Geophysical Company (DWSN) provides onshore seismic data acquisition services in the United States. It acquires and processes two dimensional (2D), three dimensional (3D), and multi-component seismic data for oil and gas companies and independent oil and gas operators, as well as for providers of multi-client data libraries.
The company's 2-D method involves in the collection of seismic data in a linear fashion and generates a single plane of subsurface seismic data. Its 3-D method produces a volume of seismic data, which produces precise images of the earth's subsurface.
The company will be reporting fiscal second-quarter results on May 7. Analysts are expecting $1.10 per share versus just 70 cents last year. For its fiscal first-quarter, DWSN reported $1.00 per share in earnings. Revenues grew 45% to $77.6 million.
Seismic Revenue Growth
Revenue growth in the quarter was primarily due to the expanded capabilities of existing crews which resulted in improved efficiencies and pricing as well as the fielding of two additional seismic data acquisition crews in April and September of 2007, the Company's 14th and 15th crews.
Stephen Jumper, President and CEO of Dawson Geophysical, said, "Continued exploration and development activities by our client base fueled our first quarter results -- the best first quarter results in the Company's history. We are extremely pleased with our results in what has historically been our most challenging quarter due to shorter days, weather concerns, and downtime during the holiday season."
The stock has staged a powerful rally off of its February lows near $50. Next year's earnings estimates have increased 26 cents to $4.93 per share. This would represent 11.4% growth over 2008 earnings. DWSN has posted an average surprise of 10.8% over the past four quarters. The stock is attractively valued with a PEG ratio of 0.7.
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Friday, April 25, 2008
DWSN - Dawson Geophysical - attractively valued with a PEG ratio of 0.7
ABT - Abbott Lab - blockbuster drug Humira also treats autoimmune diseases
Abbott Laboratories (ABT) recently posted first-quarter results, demonstrating strong growth. Earnings and sales increased with help from the company's blockbuster drug Humira. ABT is a rewarding pick from a dividend perspective as well. The company increased its quarterly dividend to 36 cents per share, which is 10.8% higher. ABT’s dividend yield is very competitive within its industry, at 2.8%, as most pharmaceuticals do not pay a dividend.
Full Analysis
Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs more than 68,000 people and markets its products in more than 130 countries. The company is headquartered in north suburban Chicago.
Growth
First-quarter results were announced in mid-April, demonstrating strong growth. Excluding special items, earnings totaled 63 cents per share, beating the year-prior result. Revenue jumped 14% to $6.77 billion, up from $5.95 billion last year. Worldwide sales in the first quarter were up 13.8%, reaching $6.8 billion. The company's blockbuster drug Humira was a big contributor to the sales growth. The medication, which also treats other autoimmune diseases, is used in dozens of countries and was recently approved for use in Japan.
“Abbott started 2008 with a strong first quarter, following double-digit sales and earnings growth last year,” said Miles D. White, chairman and chief executive officer, Abbott. "In addition, we received five key new product approvals during the quarter. The continued productivity of our late-stage pipeline, combined with the underlying strength of our broad mix of businesses, gives us a high level of confidence in our future growth outlook."
In March 2008 Abbott announced it would conclude their 31 year-long joint venture (TAP) with Takeda Pharmaceutical Products. It is expected to be finalized by the second quarter of this year. Per the terms, Abbott will receive full-rights to prostate cancer drug Lupron as well as the research and sales staff attributed to it and will receive cash payments up to $1.5 billion over the next five years based on the sales of other of TAP’s products. Takeda will retain rights to the ulcer drug Prevacid and take full ownership of the pipeline.
Abbott issued its earnings guidance for the full-year 2008 of $3.20 to $3.25 per share. For the second quarter, the company’s outlook ranges between 78 cents to 80 cents.
Analysts are forecasting 2008 earnings of $3.24 per share and a second-quarter profit of 79 cents per share.
Income
ABT is a rewarding pick from a dividend perspective as well. The company increased its quarterly dividend to 36 cents per share, which is 10.8% higher. Abbot said the dividend is payable May 15, 2008, to shareholders of record at the close of business on April 15, 2008. The company added that this marks the 36th consecutive year that Abbott has increased its dividend payout and the 337th consecutive dividend paid by Abbott. ABT’s dividend yield is very competitive within its industry at 2.8%, while most pharmaceuticals do not pay a dividend.
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POT - Potash Corp - Income was up 181% - pressure to produce food products continued to drive demand
Potash Corp. (POT) shares have been surging for the last 3 weeks ahead of the company's first quarter results, reported yesterday. The worlds largest producer of Potash did not disappoint. Income was up an amazing 181% from last year to $566 million. The company made special mention in its report about how it continues to benefit from the global forces of supply and demand within the agriculture and food markets. Potash also boosted its guidance for 2008, another very bullish signal from a company that is operating in the right industry at the right time.
Potash Corp. is an integrated producer of fertilizer, industrial and animal feed products. Potash is the worlds largest fertilizer company, specializing in the production of potash, nitrogen and phosphate. Potash carries a market cap. of $66 billion, was founded in 1953 and is based in Saskatoon, Canada.
Impressive First-Quarter Results
Potash reported very strong first-quarter results yesterday that handily beat expectations from the analyst community. Revenue increased 39% to $1.89 billion. Income was up 181% to $566 million from $198 million in the same period last year. This produced earnings of $1.74, well ahead of analyst expectations of $1.49 per share, and last quarter's record results of $1.16 per share.
Potash said that growing global pressure to produce food products continued to drive demand and push prices for potash, phosphate and nitrogen to record levels.
Industry Trend-Global Opportunity
As previously mentioned, Potash provided commentary about the global food dynamics that have been driving its profit. The company said that, "Continued rising world grain demand reduced the expected global stocks-to-use ratio for wheat and coarse grains to a record low in the first quarter of 2008. Some Asian and Latin American countries have now changed their export policies to ensure crops will be available for their own domestic use. This has put further pressure on distribution of the world's grain supply. This tight supply has resulted in higher prices for grain and other crops which, in turn, have raised global demand for fertilizers."
Potash also announced that it was going to bear the favor of higher prices, as many of its large-scale contracts are scheduled to reset. In North America, effective June 1, Potash is raising its price for delivered potash between $150 and $175 per short ton. With unprecedented demand for its products all across the world, and very strong pricing power, Potash is looking incredibly well positioned to continue its trend in earnings and share price appreciation.
Guidance and The Chart
After the fabulous first-quarter results, Potash went ahead and boosted its full-year 2008 guidance. It now expects to earn between $9.50 and $10.50 per share, up form the previous range of $6.25 to $7.25 per share.
Potash shares have been surging forward since early April, advancing from $165 to a high-water mark of over $215, a very snappy short-term return of more than 30%.
As it stands, shares have sold-off on news of the solid quarter. But when considering the fundamentals of this company, where it is experiencing accelerated demand, incredible pricing power and growth in production capacities, it should not be too long before its share price responds to the data and once again begins its upward ascent.
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PRGN - Paragon Shipping - fourth-quarter estimates that beat Wall Street estimates by 38.10%
Paragon Shipping is benefiting from the commodities boom as demand remains strong for its fleet of drybulk vessels. The company beat Wall Street estimates the last two quarters by an average of 21.33%. Paragon's 2008 forward P/E is only 9.16.
Full Analysis
Paragon Shipping Inc. (PRGN) is an international shipping company that transports drybulk cargoes. Headquartered in Greece, the company's current fleet consists of eleven vessels with a total carrying capacity of 706,358 dwt.
Paragon's vessels transport cargo worldwide. The Panamax drybulk carriers carry predominantly coal and iron ore as well as grain and a variety of other drybulk commodities. The Handymax drybulk carriers carry iron and steel products, fertilizers, minerals, forest products, ores, bauxite, alumina, cement and other construction materials.
On Mar 18, the company announced a new three year charter on one of its Panamax carriers, the Pearl Seas, at a daily rate of $51,300. The new charter rate is 66% above the vessel's current daily charter rate. Revenue from the charter is expected to be approximately $48.5 million over the three-year term.
Paragon Beats Estimates For the Fourth Quarter
On Feb 20, the company reported fourth-quarter estimates that beat Wall Street estimates by 38.10%. Net income was $7.7 million, or 29 cents per share, compared to net income of $0.5 million, or 14 cents per share. Analysts expected 21 cents per share.
Time charter revenue for the fourth quarter of 2007 was $30.4 million compared to $4.9 million in 2006. PRGN operated an average of 9.68 vessels during the fourth quarter of 2007, earning an average time charter equivalent rate of $35,284 per day compared to an average of 2.01 vessels during the fourth quarter of 2006, earning an average rate of $25,460 per day.
For the full year 2007, the company reported net income of $4.9 million, or 11 cents per share, compared to 2006 net income of $0.5 million, or 14 cents per share.
Paragon is Bullish on 2008
Paragon Shipping charters its vessels for periods ranging from one to three years. As of Feb 20, the company had fixed 93% of its available fleet days in 2008 and 50% in 2009. This represents expected contracted revenue from these charter agreements of 2007 of $127.5 million for 2008 and $70.0 million for 2009.
"Looking forward, we believe Paragon is well positioned to take advantage of a strong drybulk market, with secular market growth drivers and little exposure to the U.S. economy. The medium-to-longer term drivers of our industry remained unchanged, and during the coming months we will be in a position to take advantage of the high demand levels we've been seeing in the market as we seek to establish new time chartering contracts for some of our assets," said Michael Bodouroglou, Chairman and Chief Executive Officer.
"Our present liquidity position and strong balance sheet, in addition to our locked-in revenue for 2008, will allow us to expand our fleet further while maintaining our commitment to enhancing shareholder value," he said.
Analysts Estimates Rising for the Year in the Last 60 Days
Analysts' consensus estimates for the year rose by two cents to $1.84 from $1.82 per share in the last two months. For the first quarter, estimates remained unchanged at 41 cents a share.
The company focuses on maximizing shareholder value. In 2007, PRGN paid $2.35 per share to shareholders, including a special dividend of 60 cents per share prior to the completion of the company's IPO on Aug 15, 2007. Paragon's current dividend yield is 10.30%.
PRGN has a forward P/E of 9.16, under the industry average of 21.42. Its price-to-book of 1.58 is also under the industry average of 1.84.
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