Parker Hannifin is benefiting from the strength of emerging markets. International growth led to the company beating estimates and raising its forecast. Over the past month, this year's earnings estimates have jumped 18 cents to $5.46 per share. Nine of the 12 covering analysts raised their estimates during this time period.
Full Analysis
Parker Hannifin Corporation (PH) manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers connectors; hydraulic components and systems for the builders and users of industrial and mobile machinery and equipment; pneumatic and electromechanical components and systems.
The company's Aerospace segment provides hydraulic, fuel, and pneumatic systems and components used for commercial and military airframe and engine programs. It also manufactures a range of fluid conveyance systems, fluid metering, delivery and atomization devices, and inert nitrogen generating systems.
Strong Earnings
On April 22, the company said that its fiscal third-quarter profit rose 22%, on gains from acquisitions and core business growth led by international sales of its industrial products. For the three months ending March 31, the company earned $255.4 million, or $1.49 per share, compared with $209.3 million, or $1.19 per share, in the year-ago period. Revenue rose 14% to $3.18 billion, from $2.78 billion in the prior-year period. Analysts, on average, were expecting a profit of $1.34 per share.
Guidance Boost
PH also raised its fiscal 2008 profit forecast on growing orders across several regions and strength in its aerospace segment. For the fiscal year ending in June, the company expects to earn $5.40 per share to $5.60 per share, compared with a previous prediction of $5.15 per share to $5.40 per share. Analysts, on average, expected profit of $5.28 per share for the fiscal year, with estimates ranging from $5.15 per share to $5.39 per share. The company said orders are growing in Europe, Asia, Latin America and North America, and it is continuing to see growth in its aerospace unit.
"We are clearly headed to another record year for Parker, which will be the fifth record year in a row. The company continues to perform very well, showing strength during an economic cycle that has resulted in a challenging economic environment, particularly in North America. This is clearly the result of the dedication of our nearly 60,000 empowered employees who continue to stay focused on the Win Strategy, which is the clear roadmap that defines the goals, sets the strategies for achieving them, and identifies how progress will be measured," said Chairman, CEO and President Don Washkewicz.
Over the past month, this year's earnings estimates have jumped 18 cents to $5.46 per share. Nine of the 12 covering analysts raised their estimates during this time period. Including its recent report, the company has posted an average surprise of 6.7% over the past year. The stock is attractively valued 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, May 06, 2008
PH - Parker Hannifin - Nine of the 12 covering analysts raised their estimates over the past month
RTN - Raytheon - solid growth at a rate of 12%, while the industry average is lower at 8.7%
Raytheon Co. (RTN) recently announced first-quarter results, which included robust bookings of $6.5 billion and record backlog of $37.7 billion. First-quarter earnings per share of 93 cents beat the consensus estimate by 12% and outpaced the year-prior result. RTN's growth is also evidenced by ROE of 13%, which is in line with the industry average. The annual dividend was hiked by 10% from $1.02 per share to $1.12. The quarterly cash dividend of 28 cents per share currently translates into dividend yield of 1.7%, which is above the industry average of 0.1%.
Full Analysis
Raytheon Company is a technology player specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 85 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 72,000 people worldwide.
Growth
Raytheon recently announced first-quarter results, which included robust bookings of $6.5 billion and record backlog of $37.7 billion.
First-quarter earnings per share of 93 cents beat the consensus estimate by 12% and outpaced the year-prior result. The company noted that the higher earnings can be primarily attributed to increased volume, combined with lower net interest and pension expense.
"With the strong performance in the first quarter, the Company is off to a good start," said William H. Swanson, Raytheon's Chairman and CEO. "Our strong bookings, record backlog and solid operating performance demonstrate the Company is continuing to execute and is well positioned going forward."
Quarterly net sales reached $5.4 billion, reflecting an increase of 11% from the year-prior $4.8 billion.
RTN's growth is also evidenced by its return on equity (ROE) of 13%, which is in line with the industry average. The company�s net margin has demonstrated solid growth at a rate of 12%, while the industry average is lower at 8.7%.
Income
In the first quarter, Raytheon repurchased 5.5 million shares of common stock for $340 million, as part of its previously announced share repurchase program. This Growth & Income pick also saw an increase in its dividend as previously reported. The annual dividend was hiked by 10% from $1.02 per share to $1.12. The quarterly cash dividend of 28 cents per share currently translates into dividend yield of 1.7%, which is competitive within its industry as the company operates in an industry that offers little in terms of dividends. The current industry average stands at 0.1%.
Higher Estimates
Wall Street boosted earnings forecasts on the company's solid quarter. Six out of 14 covering analysts increased full-year 2008 projections from last month�s $3.87 per share to $3.90. The most accurate estimate is $3.91 per share.
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 and Trading - Revenue was up 146% from the same period last year
Genco Shipping and Trading Ltd. (GNK) is enjoying the benefits of increased demand and strong pricing power, which helped the company produce excellent first quarter results in which both revenue and net income were up significantly. Estimates continue to rise, and the company's share price has responded accordingly, breaking out from just over $65 only two weeks ago and advancing to their current location of over $77.
Genco Shipping & Trading Limited engages in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. It transports iron ore, coal, grain, steel products, and other drybulk cargoes with its fleet of 28 drybulk carriers. The company has a market cap. of $2.22 billion, was founded in 2004 and is based in New York, New York.
Strong First-Quarter Results
Genco shares had already been rallying ahead of the company's first quarter results, released on Apr 30, but the exceptional performance has helped push its stock price even higher. Revenue was up 146% from the same period last year to $91.7 million. Net income took a big jump forward, increasing to $74 million, from $19.8 million last year. $26.2 million of net income came from a one-time gain.
After removing one-time items, this produced diluted earnings of $1.65 per share, ahead of analyst estimates and well ahead of last year's production.
This marks the third time in the last three quarters that Genko has surprised and beaten analyst estimates, having done so by an average of 15 cents, or 15%.
A Bullish Forecast
Driving Genco's solid quarterly results were not just a product of strong demand, but also strong pricing power. The average daily time charter equivalent rates obtained by the company's fleet increased 73.5% to $35,891 per day for the most recent quarter, compared to the same period last year.
As Genco Shipping continues to post solid growth numbers, the analyst community continues to upgrade their earnings projections. Within just the last seven days, the current-year estimate has tacked on 16 cents, moving to its current projection of $7.29 per share.
The Chart
As previously mentioned, GNK shares have been on a nice run after bottoming out below $35 on Jan 16. Since then this stock has raced back to its 52-week and all-time high just above $78. Moving forward, the key to the formation is whether this stock will be able to stabilize in higher territory. We have seen a fair amount of volatility over the past few months, and GNK logged a pretty quick run back into its current territory. If this stock can plant itself and stabilize in higher ground, it bodes well for its short-term trajectory. Take a look at 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
MEA - Metalico - Reports the Best Quarter in the Company's History
Metalico reported a record quarter as scrap metal prices soar on strong demand. The company has surprised on earnings on average of 17.95% over the last four quarters. Metalico's forward P/E is 14.36.
Full Analysis
Metalico, Inc. (MEA) is a scrap metal processor headquartered in New Jersey. Metalico operates in two segments: ferrous and non-ferrous scrap metal recycling, and lead fabrication.
Metalico, a Zacks #1 Rank (Strong Buy), has 14 recycling facilities in New York, Pennsylvania, Ohio, New Jersey, Texas and Mississippi. MEA also has five lead fabrication plants in Alabama, Illinois, Nevada and California. Scrap metal facilities serving the U.S. and Canadian markets operate out of the Great Lakes facilities.
Refractory metals, such as molybdenum, tungsten and tantalum, are recycled at the central Pennsylvania facility.
In Newark, New Jersey, the company processes used catalytic converters and recycles platinum, palladium, rhodium, known as Platinum Group Metals. The metal is purchased from various sources including manufacturers, small scrap dealers, demolition contractors, and peddlers. The scrap is then sorted and sold to mills, furnaces and foundries.
Metalico Reports the Best Quarter in the Company's History
On Apr 24, Metalico reported record first-quarter earnings that blew by Wall Street estimates by 53.85%. Net income rose 67% to $6.1 million, or 20 cents per share, compared to $3.1 million or 12 cents per share in the first-quarter 2007. Analysts expected 13 cents per share.
Sales increased 230% to $170.5 million from $51.8 million in 2007.
The scrap metal segment led the profit surge in the quarter. Quarter-over-quarter unit volume increased 82% for ferrous and 95% for non-ferrous metals. Prices of both also soared. Ferrous metal prices rose 50% quarter-over-quarter while non-ferrous increased 166% during the same period. Lead fabrication volumes remained unchanged.
Metalico Continues to Expand
The company has been in acquisition mode. On Jan 29, the company closed on the purchases of American CatCon, LLC and American CatCon Holdings LLC, two catalytic converter recycling facilities located in Texas and Mississippi. MEA saw significant synergies in the first quarter from that acquisition.
On Apr 24, MEA announced further expansion through an agreement to acquire a major family-owned metal recycling operation in Western Pennsylvania for $76 million.
MEA Is Bullish About the Second Quarter
The company didn't provide guidance for the second quarter but scrap metal pricing continues to be in the company's favor. According to MEA, ferrous scrap metal pricing has increased further during the second quarter, hitting record levels in April. In the non-ferrous category, prices have settled into a trading range but are still trading at much higher levels than a year ago.
Additionally, Platinum Group Metal prices hit record highs during the first quarter on supply issues related to the power outages in South Africa and concerns over mine operations in that region. Prices in the group have declined about 10%, but remain at historically high levels.
Prices in the lead fabrication segment appear stable. The company said it expects to see seasonally higher unit volumes that could, however, be impacted by the overall slowdown of the US economy.
Analysts Raise Estimates for 2008
Consensus estimates for the full year have been rising in the last 30 days. Two out of two covering analysts raised by 18 cents to 93 cents from 75 cents a share. For the second quarter, analysts have kept consensus estimates steady at 25 cents per share.
Metalico's 2008 P/E is 14.36. Its price-to-book is 2.65. The company's return on equity in 2007 was 12.6%.
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
