Archive for May, 2010

(FDO) Family Dollar is a Bargain According to Financial Tides

I’m from Charlotte and the South likes our hometown boy Family Dollar Stores (FDO). We know a bargain when we see one. Management knows a bargain too. The Levine family interests still control more than 8% of the stock so they had the company buy back 4 million shares... 

19May2010 | | 0 comments | Continued

(MUR) Murphy Oil Corporation Reports Earnings Below Estimates

Subsequent to Murphy Oil Corporation’s (MUR) earnings release dated May 5, 2010, the company’s share price has remained largely stable. Despite the earnings sinking below estimates in the quarter, the company’s position remains strong on back of expectations of improved... 

19May2010 | | 0 comments | Continued

(HPQ) Hewlett-Packard Second Quarter Earnings Beat The Street

Hewlett-Packard (HPQ) did what it was supposed to do in its fiscal second-quarter report. The market wanted further evidence that the recovery for computer technology was not a fluke, but instead an indication of an improving environment. We’ll have to wait to be certain, but... 

19May2010 | | 0 comments | Continued

(WHR) Whirlpool Corporation – Estimates Soaring After Big First Quarter Beat – Still a Value Stock

Whirlpool Corporation (WHR) has been riding the global recovery to big earnings as the emerging markets, especially Brazil, have given a big boost to the bottom line. Whirlpool is a Zacks #1 Rank (strong buy) stock. The company manufactures home appliances, such as refrigerators,... 

18May2010 | | 0 comments | Continued

(UCTT) Ultra Clean Holdings – Strong Balance Sheet

Ultra Clean Holdings, Inc. (UCTT) recently hit a new multi-year high after the company reported better than expected Q1 results in late April that included a 31% earnings surprise. With a forward P/E of 12X, shares trade at a discount to the market and its industry peers. Company... 

18May2010 | | 0 comments | Continued

(AOB) American Oriental Bioengineering – Bear of the Day

American Oriental Bioengineering’s (AOB) first quarter earnings per share came in at $0.04, well below both the Zacks Consensus Estimate of $0.07 and $0.10 reported in the year-ago period. Although revenues recorded a 16.7% year-over-year increase to $53.7 million, we remain... 

18May2010 | | 0 comments | Continued

(OC) Owens Corning – Earnings Report Blew Away Estimates

Owens Corning (OC) analysts have drastically increased their estimates, keeping shares fairly priced. With the market weighing on stocks, this could be a good buying opportunity. Company Description Owens Corning makes residential and commercial building materials. The company... 

18May2010 | | 0 comments | Continued

(HD) Home Depot Earnings Report Beats – Ups Guidance

The Home Depot Inc.’s (HD) fiscal 2010 first-quarter GAAP net income jumped 41% to $725 million from $514 million in the year-ago period. Excluding special items, adjusted earnings per share came in at 45 cents, which topped the Zacks Consensus Estimate of 40 cents derived... 

18May2010 | | 0 comments | Continued

(STP) Suntech Power Holdings’ Reports Quarterly Preliminary Results

Suntech Power Holdings Co. Ltd. (STP) announced preliminary financial results for first quarter 2010. The company anticipates total revenue for the quarter in the range of $580 to $590 million, well above the Zacks Consensus Estimate of $565 million. Suntech’s better-than-expected... 

18May2010 | | 0 comments | Continued

(MDR) McDermott International Beats Expectations but Sales Slump

Energy-focused engineering and construction company McDermott International (MDR) reported better-than-expected first-quarter earnings, driven by robust performance from the Offshore Oil and Gas Construction segment. Earnings per share, excluding costs related to a planned spin-off,... 

18May2010 | | 0 comments | Continued

($MSFT) Microsoft Corporation – Bull of the Day

Microsoft’s (MSFT) huge core business, its acquisition strategy and cost reduction initiatives are driving strong cash flows and earnings growth. That said, shares are currently trading at 15.0X the trailing twelve months earnings compared to 35.5X for the peer group and... 

18May2010 | | 0 comments | Continued

(ETP) Energy Transfer Partners L.P. Hurt by Lower Volumes

Energy Transfer Partners L.P. (ETP), a master limited partnership (MLP), announced its weak first quarter results, adversely affected by a decrease in volumes in its transportation pipelines. The pipeline operator’s results were also pulled down by lower ‘Retail Propane’... 

18May2010 | | 0 comments | Continued

(CTIC) Cell Therapeutics Stock Issuance Dilutes Shareholder Value

Cell Therapeutics (CTIC) recently decided to exchange up to 60 million shares of its common stock for $30 million of notes. Liquidity crisis at the company continues to remain a major concern for us. Earlier, in April 2010, the company raised $18.5 million through preferred stock... 

18May2010 | | 0 comments | Continued

(A) Agilent Technologies Beats Quarterly Earnings by a Penny

Agilent Technologies Inc. (A) beat the second quarter Zacks Consensus earnings per share by a penny, or 2.4%. Revenue of $1.27 billion beat by 2.5%. Shares were buoyant during the day, but dropped off 2.02% after-hours. Agilent saw another quarter of expansion in gross, operating... 

18May2010 | | 0 comments | Continued

(ARAY) Accuray Analyst Maintains Neutral Rating

We recently reiterated our ‘Neutral’ rating on Accuray Incorporated (ARAY) with a target price of $6.75 based on a P/E of 33.8x our fiscal 2011 EPS estimate of 20 cents. The company’s results for the third quarter fiscal 2010 were mixed. Earnings per share of 4 cents were... 

18May2010 | | 0 comments | Continued

(JEC) Jacobs Engineering Group Wins More Contracts

Jacobs Engineering Group Inc. (JEC) has won a couple of contracts during the month of May. The latest was the contract from Cessna Spanish Citation Service Center, S.L., a division of Textron Inc. (TXT). According to the contract, Jacobs will design and build a new Citation Service... 

18May2010 | | 0 comments | Continued

(WFMI) Whole Foods Market Sells Healthy Lifestyles

Financial Tides likes Whole Foods (WFMI) promotion of a healthy lifestyle. They were hurting for a while when households traded down price wise during the beginning of the recession. For the first time in 5 quarters same store sales are up as shoppers again strive to eat healthy... 

18May2010 | | 0 comments | Continued

(ISRG) Intuitive Surgical Analyst Upgrades to Outperform

We recently upgraded Intuitive Surgical, Inc. (ISRG) to ‘Outperform’ with a target price of $409 based on a P/E of roughly 48.1x our fiscal 2010 EPS estimate of $8.51. The company reported an outstanding first quarter in fiscal 2010. Earnings per share were $2.12, handily... 

18May2010 | | 0 comments | Continued

(WMT) Wal-Mart Stores’ First Quarter 2011 Report Beats Estimates

Wal-Mart Stores Inc. (WMT) reported better-than-expected first-quarter 2011 results with quarterly earnings of 88 cents per share, beating the Zacks Consensus estimate of 84 cents per share. Management had guided towards an EPS range of 81 cents to 85 cents in February this year. Wal-Mart’s... 

18May2010 | | 0 comments | Continued

(IBM) International Business Machines Faces Lawsuit Battle

International Business Machines (IBM) and the State of Indiana have been suing each other in an Indianapolis courthouse over a terminated outsourcing deal, under which IBM was to overhaul and modernize Indiana’s outdated and ineffective welfare eligibility system. The State... 

17May2010 | | 0 comments | Continued

(KWK) Quicksilver Resources Buys More Shares in Lake Arlington

Quicksilver Resources Inc. (KWK) announced today that it has acquired additional interests in the company’s operated Lake Arlington project in Tarrant County, Texas from a private party for $62 million in cash. The acquisition represents roughly 25% working interest in... 

17May2010 | | 0 comments | Continued

(QTM) Quantum Fourth Quarter Earnings Barely Misses Expectations

Quantum Corp. (QTM) posted a narrower fiscal 2010 fourth-quarter GAAP net loss of $4.4 million, compared to a loss of $11.9 million in the year-ago period, after the closing bell on Thursday. Excluding special items, the company’s adjusted earnings came in at 2 cents per share,... 

17May2010 | | 0 comments | Continued

(IPG) Interpublic Group of Companies First Quarter 2010 Earnings Scorecard

Interpublic Group of Companies, Inc. (IPG) reported disappointing results on April 20 for the first quarter of 2010 with a loss per share of 15 cents. It missed the Zacks Consensus Estimate by 2 cents. During the past month, shares have fallen by approximately 14%. However, this... 

17May2010 | | 0 comments | Continued

(FST) Forest Oil First Quarter Report Misses Estimate

Forest Oil Corp. (FST) reported first-quarter earnings per share of 42 cents, below the Zacks Consensus Estimate of 47 cents, mainly due to lower sales volume However, earnings per share was up 45% year over year. Net income spiked up 70% to $47.5 million from $27.9 million in... 

17May2010 | | 0 comments | Continued

(PNC) PNC Financial Services Group Earnings Scorecard

Following the first quarter 2010 earnings release of PNC Financial Services Group Inc. (PNC) on April 22, a majority of analysts covering the stock have raised their estimates. The upward bias seems to follow in the wake of improved credit costs, lower expenses, improved revenue... 

17May2010 | | 0 comments | Continued

(AXP) American Express Company to Bid for Royal Bank of Scotland Unit

American Express Company (AXP) and UK-based private equity house Permira are jointly bidding for Royal Bank of Scotland’s (RBS) payment processing division, the Financial Times reported yesterday. If closed, the deal could raise around $3.6 billion. The experience of AmEx in... 

17May2010 | | 0 comments | Continued

(EIA) Oil & Gas May 2010 Industry Outlook

OUTLOOK Crude Oil The improving economic scene, both here in the U.S. as well as worldwide, has been the main driver of the oil rally that saw the commodity breaching the $85 per barrel level earlier this month. However, in recent days, concerns about the European debt crisis... 

17May2010 | | 0 comments | Continued

(WNR) Western Refining’s Earnings Loss Narrows

Oil refiner and marketer Western Refining Inc. (WNR) reported better-than-expected first quarter results, helped by higher sales volumes. Its loss per share, excluding special items, came in at 35 cents, narrower than the Zacks Consensus Estimate of 47 cents. In the year-ago... 

17May2010 | | 0 comments | Continued

(OCN) Ocwen Financial Analysts Downgrade to Neutral

Given the current sustainability factor, on Friday we downgraded Ocwen Financial Cor. (OCN) to Neutral from Outperform. Although the company’s first quarter earnings were a penny ahead of the Zacks Consensus Estimate, the results reflected a lackluster performance by Ocwen’s... 

17May2010 | | 0 comments | Continued

(SUG) Southern Union’s Earnings Report Lags Consensus

Southern Union Company (SUG) reported adjusted earnings per share of 44 cents in the first quarter of 2010, compared with 56 cents in the first quarter of 2009. The results of the company fell 8 cents short of the Zacks Consensus expectation of 52 cents per share. The adjusted... 

17May2010 | | 0 comments | Continued