Invitrogen Corporation (IVGN), which recently approved a two-for-one stock split, is trading near a 52-week high after reporting a robust first quarter. Earnings per share increased by 36% year-over-year and revenues grew by 13.5% rise in revenues over the same time period. Wall Street estimates have been climbing higher. All 13 covering analysts upped last month’s forecasts of $4.53 per share to $4.80, and one analyst further increased the projection by a penny.
Full Analysis
Invitrogen Corporation provides products and services that support academic and government research institutions and pharmaceutical and biotech companies worldwide in their efforts to improve the human condition. The company provides essential life science technologies for disease research, drug discovery, and commercial bioproduction.
Invitrogen's own research and development efforts are focused on breakthrough innovation in all major areas of biological discovery including functional genomics, proteomics, stem cells, cell therapy and cell biology -- placing Invitrogen's products in nearly every major laboratory in the world.
Stock Split
The company recently approved its first two-for-one stock split. Invitrogen noted that it established May 16, 2008, as the record date and May 27, 2008, as the date on which additional shares will be distributed to shareholders.
“Today’s decision by the Board of Directors reflects the company’s strong financial performance and confidence in our long-term strategy,” said Greg Lucier, Invitrogen’s Chairman and Chief Executive Officer. “The end markets for our technologies are solid, and we remain well positioned to capitalize on the growth opportunities we see in the future.”
Strong First Quarter
The company’s share price received a nice boost after the release of first-quarter results last week, and is now trading near a 52-week high.
The quarterly report boasted robust growth, which included a 36% year-over-year increase in earnings per share and a 13.5% rise in revenues over the same time period.
Bullish Forecasts
Wall Street estimates have been climbing higher. All 13 covering analysts upped last month’s forecasts of $4.53 per share to $4.80, and one analyst further increased the projection by a penny.
The company’s return on equity (ROE) of 13% stands well above the industry average of 8%.
ontent Courtesy: Zacks Investment Research
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Friday, May 02, 2008
IVGN - Invitrogen - ROE of 13% stands well above the industry average of 8%
MA - Mastercard Inc - ROE of 27% is nearly double the industry’s average of 14%
Mastercard Incorporated (MA) is Zacks #1 (Strong Buy) company that is trading near a 52-week high after announcing an outstanding first quarter. Wall Street responded to the company’s stellar results buy hiking earnings forecasts. Mastercard’s ROE of 27% is nearly double the industry’s average of 14%. MA’s net profit margin of 26.7% crushes the industry’s average of 4.8%.
Full Analysis
As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes more than 18 billion transactions each year, and provides analysis as well as consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard(R), Maestro(R) and Cirrus(R), MasterCard serves consumers and businesses in more than 210 countries and territories.
Strong Growth
The Zacks #1 (Strong Buy) company is trading near a 52-week high after announcing an outstanding first quarter. Mastercard’s profit more than doubled thanks to more customers abroad using the company’s credit and debit cards. Net revenue totaled $1.2 billion, a 29.2% increase over the year-prior result. Cardholders in U.S. also increased their use of the company’s cards but at a more moderate pace.
"MasterCard continues to see growth in the U.S. region despite continued economic uncertainty," Robert W. Selander stated. "In this challenging economic environment, we are working closely with our customers to deliver the value and insights they have come to expect to help them meet their business objectives. We are committed to accelerating the global expansion of electronic payments, and are making investments to ensure we are properly aligned with our customers and merchants wherever they do business," said Selander.
Wall Street responded to the company’s stellar results buy hiking earnings forecasts. Twelve out of 20 covering analysts have full-year 2008 estimates pegged at $8.21 per share, which is nice boost from last week’s $7.57. The most accurate projection is even more bullish at $8.58.
Industry Comparisons
Mastercard’s earnings per share are expected to grow by 20% over the next 3 – 5 years, topping the industry average of 16%. The company’s ROE of 27% is nearly double the industry’s average of 14%. MasterCard’s net profit margin of 26.7% crushes the industry’s average of 4.8%.
Income
The company is yielding 0.3% as it operates in a space that is not known as a dividend paying industry.
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CE - Celanese - production and sale of industrial chemicals primarily in North America, Europe, and Asia
Celanese Corp. (CE) is a company on the upswing. It just reported solid first quarter results on Apr 24 that included sales growth of 19% from the year before. This translated into adjusted earnings of $1.06 per share, well ahead of analyst expectations. Moving forward, Celanese said it anticipates strong international demand and continued pricing strength, which should help fuel the underlying data to support its share price.
Celanese Corporation engages in the production and sale of industrial chemicals primarily in North America, Europe, and Asia. Net sales totaled $6.4 billion in 2007, with approximately 70% generated outside of North America. The company has a market cap. of $4.73 billion, was founded in 2004 and is headquartered in Dallas, Texas.
First Quarter Results
Celanese reported respectable first quarter results on Apr 24 in which net sales were up 19% from the year prior to $1.846 billion. The company cited its downstream businesses, higher volume and favorable currency exchanges as the primary drivers of growth.
Net earnings decreased to $145 million from $201 million last year, primarily due to a $79 million restructuring gain from the year prior. Adjusted earnings for the period were $1.06 per share compared to 77 cents last year. Also, during the first quarter, Celanese generated $166 millions in cash from operating activities compared to $12 million last year.
Guidance Boosted
After the solid quarterly results, Celanese boosted its guidance. Due to strong demand and a favorable pricing environment, the company now expects full-year earnings of $3.60 to $3.85 per share, compared to $3.40 to $3.70 before.
The analyst community is even more bullish, with the full-year consensus estimate pegged at $3.93 cents, up from $3.90 just seven days ago.
The bar is being raised for Celanese both internally and externally, but the company has shown it knows how to surprise and beat earnings projections. Over the last four quarters Celanese has bested analyst expectation by an average of nine cents, or 12.32%.
Celanese also bears the favor of carrying attractive valuations. Based upon current-year earnings projections, this stock is only trading at a P/E multiple of just over 11X. The company also looks well insulated from any overbearing debt, carrying a 2.99 debt-to-equity multiple.
The Chart
With all the good news on hand, the company's share price has been advancing. SInce bottoming out on Mar 20 just above $34, this stock has recently topped off over $45, an impressive short-term pop of over 32%. In the process, this stock logged a new 52-week and all-time high. Moving forward, the company should produce the earnings to support its stock price. Taka a look at the nice recent up move in the chart below.
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ZEUS - Olympic Steel - Consensus Estimates Are Rising for the Second Quarter and 2008
Olympic Steel capitalized on rising commodity prices and strong demand for processed steel to post record first-quarter earnings results. The company beat Wall Street estimates by 24.74%. Olympic Steel has a forward P/E of 13.28.
Full Analysis
Olympic Steel Inc. (ZEUS) distributes processed carbon, coated and stainless flat-rolled sheet, and coil and plate steel products in the United States. The company operates as an intermediary between steel producers and manufacturers that require processed steel for their operations. ZEUS operates 15 facilities across North America, predominantly in the Midwest.
Olympic Steel continues to expand its regional reach. On Apr 18, ZEUS announced it was constructing a new facility in Sumter, S.C. which will be completed by the end of 2008. It joins the company's North Carolina operations which were acquired in 2006. The 100,000 square foot facility will cost $10 million and will expand the company's processing capabilities in the Southeast region.
Olympic Steel Reports Record First-Quarter Earnings
On Apr 30, Olympic Steel reported its first-quarter earnings and easily beat Wall Street estimates by 24.74%, or 24 cents a share. Net income was $13.2 million, or $1.21 per share, compared to $5.3 million, or 49 cents per share, in the year ago period. Analysts expected 97 cents. Net sales increased 6% to $274.9 million from $259.4 million in 2007.
Optimistic about the Rest of 2008
The company is optimistic going forward due to strong global steel demand and a weak U.S. currency, and historically low levels of service center inventory. ZEUS acknowledges it faces challenges from rising energy and raw material costs.
"As steel prices continue to escalate and availability of short-term credit tightens through the second quarter, our approach to the market will continue to be guided by our core values of integrity, respect and financial stability. We believe we are appropriately positioned in terms of inventory, value-add processing capabilities, and liquidity to continue performing well through the higher-priced and seasonally stronger second quarter," said Chairman and Chief Executive Officer Michael D. Siegal.
Olympic Steel has allocated $40 million for capital investment in 2008.
Consensus Estimates Are Rising for the Second Quarter and 2008
Consensus estimates for the second quarter are up 24 cents in the last 60 days to $1.40 from $1.16 per share. For the full year, consensus estimates rose 36 cents to $4.00 from $3.64 per share.
Olympic Steel's forward P/E is 13.28. Its price-to-book is 2.08. The company has an outstanding five year average return on equity (ROE) of 15.62%. ZEUS has a dividend yield of 0.32%.
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