The largest company as measured by market cap in the world, Exxon Mobil (NYSE:XOM), recently raised its dividend (29th consecutive year), and also has a hefty estimate for 2011 and 2012 concerning its EPS.
The dividend of Exxon was just raised to $1.88, resulting in a yield of 2.10 percent.
EPS estimates for 2011 are $8.39 a share, and for 2012 $8.98 a share.
The P/E (ttm) of the company is 12.39.
Exxon was under pressure Monday, as were almost all oil and gas companies after the announced death of Osama bin Laden, which generated uncertainty as to what the fallout over time would be.
Exxon closed Monday at $86.97, falling $1.01, or 1.15 percent.
Showing posts with label EPS. Show all posts
Showing posts with label EPS. Show all posts
Tuesday, May 3, 2011
Tuesday, April 26, 2011
ITT (ESI) (BEAV) (CBE) (KMB) (NFLX) EPS Adjusted by Goldman (GS)
Goldman Sachs (NYSE:GS) changed their EPS estimates on BE Aerospace (NASDAQ: BEAV), Cooper Industries PLC (NYSE: CBE), ITT Educational Services Inc (NYSE: ESI), Kimberly Clark Corp (NYSE: KMB) and Netflix, Inc. (NASDAQ: NFLX), with all but Kimberly Clark Corp getting upwardly revised.
Goldman Sachs (GS) raised its EPS on shares of BE Aerospace (BEAV). They have a “Buy” rating with a $48.00 price target on the company.
Goldman raised its EPS on shares of Cooper Industries PLC (CBE). They have a “Neutral” rating with a price target of $70.00 on the firm.
Goldman Sachs raised its EPS on ITT Educational Services Inc (ESI). They have a “Neutral” rating with a $83.00 price target on the stock.
It also cut its EPS estimates on Kimberly Clark Corp (KMB). They have a “Sell” rating with a price target of $64.00 on the company.
Goldman boosted its EPS on Netflix, Inc. (NFLX). They have a “Buy” rating and a price target of $300.00 on NFLX.
Goldman Sachs (GS) raised its EPS on shares of BE Aerospace (BEAV). They have a “Buy” rating with a $48.00 price target on the company.
Goldman raised its EPS on shares of Cooper Industries PLC (CBE). They have a “Neutral” rating with a price target of $70.00 on the firm.
Goldman Sachs raised its EPS on ITT Educational Services Inc (ESI). They have a “Neutral” rating with a $83.00 price target on the stock.
It also cut its EPS estimates on Kimberly Clark Corp (KMB). They have a “Sell” rating with a price target of $64.00 on the company.
Goldman boosted its EPS on Netflix, Inc. (NFLX). They have a “Buy” rating and a price target of $300.00 on NFLX.
Monday, April 18, 2011
BofA (BAC) Estimates Slashed by Atlantic Equities
EPS estimates of Bank of America (NYSE:BAC) were cut by Atlantic Equities after the release of the earnings report of the company.
Concerning legacy mortgages, Atlantic Equities analyst Richard Staite said he believes the giant bank will continue to be challenged by them, which will put downward pressure on the stock's valuation multiple. Lower sales should be offset by reduced provisions, he added.
Full year 2011 adjusted-EPS are expected to come in at 97 cents, according to Atlantic Equities, dropping from the prior $1.22, and way down from consensus of $1.27. For full year 2012 estimates were dropped from $1.62 to $1.56, also far below consensus of $1.85.
Staite also asserts he doesn't believe there will be any "meaningful" dividend boost before 2013.
Atlantic Equities reiterates a "Neutral" rating on Bank of America and a price target of $16 a share. Bank of America was trading at $12.39, falling $0.43, or 3.39 percent, as of 12:22 PM EDT.
Concerning legacy mortgages, Atlantic Equities analyst Richard Staite said he believes the giant bank will continue to be challenged by them, which will put downward pressure on the stock's valuation multiple. Lower sales should be offset by reduced provisions, he added.
Full year 2011 adjusted-EPS are expected to come in at 97 cents, according to Atlantic Equities, dropping from the prior $1.22, and way down from consensus of $1.27. For full year 2012 estimates were dropped from $1.62 to $1.56, also far below consensus of $1.85.
Staite also asserts he doesn't believe there will be any "meaningful" dividend boost before 2013.
Atlantic Equities reiterates a "Neutral" rating on Bank of America and a price target of $16 a share. Bank of America was trading at $12.39, falling $0.43, or 3.39 percent, as of 12:22 PM EDT.
PG&E (PCG) Upgraded by Credit Suisse (CS)
Shares of PG&E Corporation (NYSE:PCG) were upgraded by Credit Suisse (NYSE:CS) from "Neutral" to "Outperform," citing the headwinds facing the company have been identified and at the current price are overstated, as they see limited fundamental downside going forward.
Credit Suisse says shares of PCG are trading cheap to its peers at this time, considering the company's 7%+ rate base growth, earnings visibility with decoupling, forward rates and cost of capital set through 2012, a 2013 ROE reset to 10.5%, limited risk to Diablo Canyon, and realistic outcomes from San Bruno are not that negative.
They have a EPS estimate for 2011-2013 of $3.73, $3.92, and $3.74.
PG&E Corporation were trading at $44.71, down $0.15, or 0.35 percent, as of 12:10 PM EDT. The price target on the company was boosted from $45 to $50 by Credit Suisse.
Credit Suisse says shares of PCG are trading cheap to its peers at this time, considering the company's 7%+ rate base growth, earnings visibility with decoupling, forward rates and cost of capital set through 2012, a 2013 ROE reset to 10.5%, limited risk to Diablo Canyon, and realistic outcomes from San Bruno are not that negative.
They have a EPS estimate for 2011-2013 of $3.73, $3.92, and $3.74.
PG&E Corporation were trading at $44.71, down $0.15, or 0.35 percent, as of 12:10 PM EDT. The price target on the company was boosted from $45 to $50 by Credit Suisse.
Wednesday, April 6, 2011
Time to Buy Hewlett Packard (HPQ)?
With the energy sector and commodity companies attracting a lot of attention from investors recently, some companies in the tech sector have been trading at low valuations, offering what looks like a good time to invest, like with Hewlett Packard (NYSE:HPQ).
Earnings estimates for HPQ are a little over $5 a share in 2011 and $5.69 for 2012.
The shares have been trading in a range of $37.32 to $54.75 over the past 52 weeks. The 50 day moving average is $44.15 and the 200 day moving average is $43.05.
Because Hewlett Packard's shares have been under pressure recently and are trading below the 50 and 200 day moving averages, buying in stages for the purpose of taking advantage of expected dips would be a good strategy.
Hewlett Packard pays a dividend of 32 cents a year, which is equal to a .8 percent yield. Hewlett Packard recently announced a goal of $7 a share in earnings by 2012.
Hewlett Packard was trading at $41.18, gaining $0.89, or 2.21 percent, as of 2:07 PM EDT.
Earnings estimates for HPQ are a little over $5 a share in 2011 and $5.69 for 2012.
The shares have been trading in a range of $37.32 to $54.75 over the past 52 weeks. The 50 day moving average is $44.15 and the 200 day moving average is $43.05.
Because Hewlett Packard's shares have been under pressure recently and are trading below the 50 and 200 day moving averages, buying in stages for the purpose of taking advantage of expected dips would be a good strategy.
Hewlett Packard pays a dividend of 32 cents a year, which is equal to a .8 percent yield. Hewlett Packard recently announced a goal of $7 a share in earnings by 2012.
Hewlett Packard was trading at $41.18, gaining $0.89, or 2.21 percent, as of 2:07 PM EDT.
Time to Buy Corning (GLW)?
With the energy sector and commodity companies attracting a lot of attention from investors recently, some companies in the tech sector have been trading at low valuations, offering what looks like excellent buying opportunities, like with Corning Incorporated (NYSE:GLW).
Earnings estimates for Corning are a little over $2 a share for 2011, and even more in 2012, so the PE ratio is about 10 on these estimates.
The shares have been trading in a range from $15.45 to $23.43 in over the past 52 weeks. The 50 day moving average is $21.87 and the 200 day moving average is $18.93.
Because Corning's shares have been under pressure recently and are trading below the 50 and 200 day moving averages, buying incrementally in order to take advantage of expected dips would be a good strategy.
With the moving average of about $19 a share, that would also be a place to look to enter at for a full position.
Corning was trading at $20.49, gaining $0.09, or 0.44 percent, as of 1:54 PM EDT.
Earnings estimates for Corning are a little over $2 a share for 2011, and even more in 2012, so the PE ratio is about 10 on these estimates.
The shares have been trading in a range from $15.45 to $23.43 in over the past 52 weeks. The 50 day moving average is $21.87 and the 200 day moving average is $18.93.
Because Corning's shares have been under pressure recently and are trading below the 50 and 200 day moving averages, buying incrementally in order to take advantage of expected dips would be a good strategy.
With the moving average of about $19 a share, that would also be a place to look to enter at for a full position.
Corning was trading at $20.49, gaining $0.09, or 0.44 percent, as of 1:54 PM EDT.
Friday, April 1, 2011
JDS Uniphase (JDSU) Getting Crushed in New Quarter
JDS Uniphase (NASDAQ:JDSU) has a stellar first quarter, soaring 44 percent during that time, but that was then and this is now, and in the first day of the second quarter the share price is getting crunched after the company announced again there will be a delay in anticipated networking upgrade spending.
Shares plummeted over 8 percent on the news for most of the trading day.
Stifel Nicolaus noted, “we would see any weakness in the stock as an opportunity for long-term investors to build positions.”
That was after Stifel lowered their fully year 2011 earnings estimate on the company, while raising its full year 2012 EPS.
The company said they believe the sector will “gather momentum over the next several quarters.”
JDS was trading at $19.22, falling $1.62, or 7.77 percent, as of 1:34 PM EDT. Stifel Nicolaus reiterated its "Buy" rating on JDS.
Shares plummeted over 8 percent on the news for most of the trading day.
Stifel Nicolaus noted, “we would see any weakness in the stock as an opportunity for long-term investors to build positions.”
That was after Stifel lowered their fully year 2011 earnings estimate on the company, while raising its full year 2012 EPS.
The company said they believe the sector will “gather momentum over the next several quarters.”
JDS was trading at $19.22, falling $1.62, or 7.77 percent, as of 1:34 PM EDT. Stifel Nicolaus reiterated its "Buy" rating on JDS.
Thursday, March 31, 2011
Intel (INTC) Drops on Earnings Cut
Shares of Intel (NASDAQ:INTC) dropped today after FBR Capital Markets slashed its earnings per share estimates on the in the first quarter from 51 cents a share to 48 cents a share.
Concerns over the impact of growing tablet sales on PCs and notebooks were the impetus behind the earnings being lowered, according to FBR.
Sales of Sandy Bridge also appear to be weaker than expected, putting pressure on Intel.
Intel was trading down at $20.01, falling $0.45, or 2.20 percent, as of 12:36 PM EDT. FBR also dropped its price target on Intel from $27 to $25 a share.
Concerns over the impact of growing tablet sales on PCs and notebooks were the impetus behind the earnings being lowered, according to FBR.
Sales of Sandy Bridge also appear to be weaker than expected, putting pressure on Intel.
Intel was trading down at $20.01, falling $0.45, or 2.20 percent, as of 12:36 PM EDT. FBR also dropped its price target on Intel from $27 to $25 a share.
Thursday, March 24, 2011
Research In Motion (RIMM) May Get Boost from Global Expansion
Research In Motion (Nasdaq: RIMM) has jumped higher ahead of the Company's fourth quarter 2011 earnings report after the market closes.
The company is expected to report EPS of $1.75 on revs of $5.63 billion. Last quarter, the mobile communications company reported EPS of $1.74 on revenues of $5.49 billion, beating consensus EPS of $1.64 and revenues of $5.39 billion. Research In Motion produced EPS of $1.27 on revs of $4.08 billion, missing consensus views in the fourth quarter of 2010.
Shares gained 13.9% through the quarter, to $66.20 at the end of February. The stock is down about 6% since then, and finished 2010 about 6.2%.
As a simple valuation, Research In Motion trades with a forward P/E of 9.2x FY12 EPS estimates, compared to 12.8x for Apple Inc. (Nasdaq: AAPL) and 10.5x at Nokia (NYSE: NOK).
Data from Bloomberg has 30 analysts with a Buy on Research In Motion, 22 with a Hold, and seven suggesting to Sell. The analyst price target average is $75.50, with a high of $100 and low of $45. Shares have traded in a range of $76.78 - $42.53 over the last 52-weeks.
Source
The company is expected to report EPS of $1.75 on revs of $5.63 billion. Last quarter, the mobile communications company reported EPS of $1.74 on revenues of $5.49 billion, beating consensus EPS of $1.64 and revenues of $5.39 billion. Research In Motion produced EPS of $1.27 on revs of $4.08 billion, missing consensus views in the fourth quarter of 2010.
Shares gained 13.9% through the quarter, to $66.20 at the end of February. The stock is down about 6% since then, and finished 2010 about 6.2%.
As a simple valuation, Research In Motion trades with a forward P/E of 9.2x FY12 EPS estimates, compared to 12.8x for Apple Inc. (Nasdaq: AAPL) and 10.5x at Nokia (NYSE: NOK).
Data from Bloomberg has 30 analysts with a Buy on Research In Motion, 22 with a Hold, and seven suggesting to Sell. The analyst price target average is $75.50, with a high of $100 and low of $45. Shares have traded in a range of $76.78 - $42.53 over the last 52-weeks.
Source
Tuesday, March 22, 2011
Carnival's (CCL) Guidance Key for Momentum
There will be no surprises when Carnival reports today, as they've already guided the quarter down on EPS, lowering estimates to $0.19 a share.
The good news for shareholders and investors is the share price of the company has plummeted 20 percent since the early part of March, and any positive surprise could push the stock up.
Now the company is showing some strength as it moves toward its quarterly report, and it could be poised for a move it that strength is reported as sustainable.
The obvious question is the effect from increasing gas prices on the industry, which was hit hard when gas prices approached similar levels a couple of years ago, although they may have to move up another 30 cents a gallon or move before consumers start to pull back on spending.
But the world events have people jittery again, and a lot will depend upon guidance from Carnival as to the upside, if there is any more to be had.
Carnival closed Monday at $41.01, gaining $1.38, or 3.48 percent.
The good news for shareholders and investors is the share price of the company has plummeted 20 percent since the early part of March, and any positive surprise could push the stock up.
Now the company is showing some strength as it moves toward its quarterly report, and it could be poised for a move it that strength is reported as sustainable.
The obvious question is the effect from increasing gas prices on the industry, which was hit hard when gas prices approached similar levels a couple of years ago, although they may have to move up another 30 cents a gallon or move before consumers start to pull back on spending.
But the world events have people jittery again, and a lot will depend upon guidance from Carnival as to the upside, if there is any more to be had.
Carnival closed Monday at $41.01, gaining $1.38, or 3.48 percent.
Tuesday, March 15, 2011
Shares of (MMI) Cut on Lower Xoom Sales
Shares of Motorola Mobility (NYSE:MMI) were getting hit today as Oppenheimer & Co. analyst Ittai Kidron cut his outlook on the stock after he downwardly adjusted his expectations for sales of "Xoom."
Kidron said, “We believe Motorola has missed an opportunity to make its mark in the market by initially targeting value vs. volume.”
He said he sees more modest sales of Xoom than he has originally expected, and thinks they missed a big opportunity by not offering a variety of tablets at different price points.
Consequently, he cut his 2011 EPS and revenue outlook for Motorola Mobility, as it looks like they won't get the market share gains he thought they would against Apple’s (NASDAQ:AAPL) iPad 2.
Kidron reiterates an "Outperform" rating on Motorola Mobility, which was trading at $23.35, down $1.34, or 5.43 percent, as of 2:40 PM EDT. He also lowered his price target on the company from $36 to $32.
Kidron said, “We believe Motorola has missed an opportunity to make its mark in the market by initially targeting value vs. volume.”
He said he sees more modest sales of Xoom than he has originally expected, and thinks they missed a big opportunity by not offering a variety of tablets at different price points.
Consequently, he cut his 2011 EPS and revenue outlook for Motorola Mobility, as it looks like they won't get the market share gains he thought they would against Apple’s (NASDAQ:AAPL) iPad 2.
Kidron reiterates an "Outperform" rating on Motorola Mobility, which was trading at $23.35, down $1.34, or 5.43 percent, as of 2:40 PM EDT. He also lowered his price target on the company from $36 to $32.
Thursday, March 3, 2011
Research in Motion (RIMM) Will Shine in Fourth Quarter Says BMO
Citing their checks, BMO said the fourth quarter for Research in Motion (NASDAQ:RIMM) will be strong, even though they haven't released new products in the quarter.
BMO Capital analyst Tim Long noted, “Our checks indicate that RIMM is seeing strength in all regions outside North America, despite a lack of new products in the quarter. We believe the Torch, 9300, 8520, and rollout of BB 6.0 are all leading to upside.”
The fourth-quarter earnings estimate was raised from $1.77 to $1.81 a share, above consensus of $1.75 a share.
The 2012 earnings estimate was boosted from $7.40 a shared to $8 a share. Long introduced 2013 an earnings estimate of $9.25 a share.
RIMM was trading at $68.04, gaining $2.21, or 3.36 percent, as of 11:53 AM EST.
BMO Capital analyst Tim Long noted, “Our checks indicate that RIMM is seeing strength in all regions outside North America, despite a lack of new products in the quarter. We believe the Torch, 9300, 8520, and rollout of BB 6.0 are all leading to upside.”
The fourth-quarter earnings estimate was raised from $1.77 to $1.81 a share, above consensus of $1.75 a share.
The 2012 earnings estimate was boosted from $7.40 a shared to $8 a share. Long introduced 2013 an earnings estimate of $9.25 a share.
RIMM was trading at $68.04, gaining $2.21, or 3.36 percent, as of 11:53 AM EST.
Goldman (GS) Boosts Apple (AAPL) Estimates After Unveiling iPad 2
Goldman Sachs (NYSE:GS) increased its EPS estimates on Apple (NASDAQ:AAPL) after the company unveiled the highly anticipated iPad 2.
Goldman said, "The new device offers significant upgrades from the prior version, which we believe should provide an early line of defense against the wave of tablet competitors arriving in the coming months.While these features were largely in line with expectations, the new iPads will ship earlier than the widely anticipated late-March/early-April time frame. We are maintaining our unit estimates due to our view that the iPad 2 will accelerate Apple's competitive momentum in tablets."
Gold raised its estimates for the full year 2011-13, now seeing revenues this fiscal year of $100.4 billion and EPS of $23.29, an increase from $99.37 billion and $23.07.
For 2012, Goldman sees revenue of $122.68 billion and EPS of $28.61, up from a previous view of $119.79 billion and $27.98. In 2013, Goldman sees Apple with revenues of $134.85 billion and EPS of $31.32, up from $131.63 and $30.56.
Goldman maintains a "Conviction Buy List" rating on Apple, which was trading at $358.55, up $6.43, or 1.83 percent, as of 11:21 AM EST. They have a price target of $450 on Apple.
Goldman said, "The new device offers significant upgrades from the prior version, which we believe should provide an early line of defense against the wave of tablet competitors arriving in the coming months.While these features were largely in line with expectations, the new iPads will ship earlier than the widely anticipated late-March/early-April time frame. We are maintaining our unit estimates due to our view that the iPad 2 will accelerate Apple's competitive momentum in tablets."
Gold raised its estimates for the full year 2011-13, now seeing revenues this fiscal year of $100.4 billion and EPS of $23.29, an increase from $99.37 billion and $23.07.
For 2012, Goldman sees revenue of $122.68 billion and EPS of $28.61, up from a previous view of $119.79 billion and $27.98. In 2013, Goldman sees Apple with revenues of $134.85 billion and EPS of $31.32, up from $131.63 and $30.56.
Goldman maintains a "Conviction Buy List" rating on Apple, which was trading at $358.55, up $6.43, or 1.83 percent, as of 11:21 AM EST. They have a price target of $450 on Apple.
Wednesday, February 2, 2011
Ford's (NYSE:F) EPS, PT Slashed by Morgan Stanley (NYSE:MS)
How quickly analysts can change their outlook on a company, especially after weaker than expected earnings results as in the case of Ford Motor (NYSE:F), which had its EPS estimates and price target on them cut be Morgan Stanley (NYSE:MS).
Morgan Stanley analyst Adam Jonas said, "N. America accounted for most of the 4Q shortfall, suffering a sharp increase in launch and engineering costs as Ford brings to market a very high volume of new models. While we underestimated the inflation in launch-related costs, we do not believe the 2.4% global auto division margin Ford produced in 4Q accurately reflects the company’s fundamental position. More perplexing to investors, in our view, was how margins were cut in half despite sales that surprised positively, up 14% sequentially. This is an industry where if you get the top-line right, you usually get your earnings right. Frequently, as last week showed, this is not the case."
Jonas lowered his EPS estimate for full year 2011 from $3.00 to $2.40.
Ford was trading at $15.53, falling $0.36, or 2.23 percent, as of 12:57 PM EST. Morgan Stanley lowered their price target on Ford from $23 to $21.
Morgan Stanley analyst Adam Jonas said, "N. America accounted for most of the 4Q shortfall, suffering a sharp increase in launch and engineering costs as Ford brings to market a very high volume of new models. While we underestimated the inflation in launch-related costs, we do not believe the 2.4% global auto division margin Ford produced in 4Q accurately reflects the company’s fundamental position. More perplexing to investors, in our view, was how margins were cut in half despite sales that surprised positively, up 14% sequentially. This is an industry where if you get the top-line right, you usually get your earnings right. Frequently, as last week showed, this is not the case."
Jonas lowered his EPS estimate for full year 2011 from $3.00 to $2.40.
Ford was trading at $15.53, falling $0.36, or 2.23 percent, as of 12:57 PM EST. Morgan Stanley lowered their price target on Ford from $23 to $21.
Monday, January 31, 2011
AU Optronics (NYSE:AUO) Continues to Bleed Losses
Even with low expectations for the quarter, AU Optronics (NYSE:AUO) wasn't even able to meet those, as losses continue to mount at the company.
Ticonderoga says, "AUO reported 4Q10 consolidated sales of NT$102.6 billion (down 17.5% Q/Q). In U.S. dollar terms, 4Q10 sales came in nearly 12% lower sequentially at US$3.52 billion and below our US$3.76 billion forecast. AUO reported an EPS of negative $0.45, much worse than our projection of negative $0.07. Despite reporting the most challenged quarter since 1Q09, we believe that investors are likely to once again search for a bottom in the shares. However, we believe any recovery will be muted as the secular shift toward LCD TV slows and the economics of the panel industry remain challenged. With a slowing secular trend in the LCD market we believe investors are likely to pay an incrementally lower multiple for LCD-related names through each cycle. We continue to remain unexcited by our LCD coverage universe, which also includes LG Display (NYSE:LPL)(Sell) and Corning (NYSE:GLW)(Sell).
"For 1Q11, we are raising our revenue estimate to $3.38 billion from $3.28 billion, and we expect AUO to post a loss of $0.10 per share compared with our previous expectation of a loss of $0.13 per share. For 2011, we are raising our revenue estimate to $14.52 billion from $13.92 billion and increasing our EPS projection to $0.36 from $0.17."
Ticonderoga maintains a 'Neutral' rating on AU Optronics (AUO), which closed Friday at $9.58, down $0.29, or 2.94 percent.
Ticonderoga says, "AUO reported 4Q10 consolidated sales of NT$102.6 billion (down 17.5% Q/Q). In U.S. dollar terms, 4Q10 sales came in nearly 12% lower sequentially at US$3.52 billion and below our US$3.76 billion forecast. AUO reported an EPS of negative $0.45, much worse than our projection of negative $0.07. Despite reporting the most challenged quarter since 1Q09, we believe that investors are likely to once again search for a bottom in the shares. However, we believe any recovery will be muted as the secular shift toward LCD TV slows and the economics of the panel industry remain challenged. With a slowing secular trend in the LCD market we believe investors are likely to pay an incrementally lower multiple for LCD-related names through each cycle. We continue to remain unexcited by our LCD coverage universe, which also includes LG Display (NYSE:LPL)(Sell) and Corning (NYSE:GLW)(Sell).
"For 1Q11, we are raising our revenue estimate to $3.38 billion from $3.28 billion, and we expect AUO to post a loss of $0.10 per share compared with our previous expectation of a loss of $0.13 per share. For 2011, we are raising our revenue estimate to $14.52 billion from $13.92 billion and increasing our EPS projection to $0.36 from $0.17."
Ticonderoga maintains a 'Neutral' rating on AU Optronics (AUO), which closed Friday at $9.58, down $0.29, or 2.94 percent.
Helmerich & Payne (NYSE:HP) EPS Raised Far Above Consensus
Helmerich & Payne (NYSE:HP) and other land drillers are being viewed as negative by a number of investors, but Global Hunter says they're wrong, and have boosted their EPS estimates for 2011/2012 far above consensus.
Global says, "Negative investor sentiment towards the land drillers has proven to be incorrect, yet again, with the group outperforming the OSX by 500 bps and the overall market by 455 bps yesterday. We think this trend continues, similar to the run in Q4 2010, believing the consensus sell-side estimate to be short 20-30% in most cases for the group. Momentum in the high service intensive plays is unlikely to cease in 2011 or 2012 and the major public drillers should continue to take share as legacy equipment is displaced. No driller is in better position to capitalize on this than HP given its fiscally sound operator base (highest in the group at ~85% of active rig count), under-levered balance sheet and strong cash flows. Ramping up production to three rigs per month suggests it likely delivers more than 50 rigs through 2012. Annualizing last quarter's results and the 2c per share each newbuild adds suggests greater than $5 in earnings power. Despite yesterday's 9.5% move we think the stock has another 20%+ to go."
"We are increasing our fiscal 2011 and 2012 EPS estimates to $4.09 and $5.15 from $3.45 and $4.05, respectively (note consensus as of yesterday was $3.33 and $3.55)."
Global reiterates an "Accumulate" on Helmerich & Payne (HP), which closed Friday at $56.37, down $0.37, or 0.65 percent. Global raised their price target on Helmerich from $62 to $70.
Global says, "Negative investor sentiment towards the land drillers has proven to be incorrect, yet again, with the group outperforming the OSX by 500 bps and the overall market by 455 bps yesterday. We think this trend continues, similar to the run in Q4 2010, believing the consensus sell-side estimate to be short 20-30% in most cases for the group. Momentum in the high service intensive plays is unlikely to cease in 2011 or 2012 and the major public drillers should continue to take share as legacy equipment is displaced. No driller is in better position to capitalize on this than HP given its fiscally sound operator base (highest in the group at ~85% of active rig count), under-levered balance sheet and strong cash flows. Ramping up production to three rigs per month suggests it likely delivers more than 50 rigs through 2012. Annualizing last quarter's results and the 2c per share each newbuild adds suggests greater than $5 in earnings power. Despite yesterday's 9.5% move we think the stock has another 20%+ to go."
"We are increasing our fiscal 2011 and 2012 EPS estimates to $4.09 and $5.15 from $3.45 and $4.05, respectively (note consensus as of yesterday was $3.33 and $3.55)."
Global reiterates an "Accumulate" on Helmerich & Payne (HP), which closed Friday at $56.37, down $0.37, or 0.65 percent. Global raised their price target on Helmerich from $62 to $70.
Caterpillar (NYSE:CAT) Machinery in High Demand
While mining stocks have been taking a breather lately, that does nothing to change the dynamics of the industry, which is the continual pursuit of new resources, as well as working existing mines. That's good news for Caterpillar (NYSE:CAT), as many mining companies are flush with cash after a super 2010, and are looking to spend on new equipment.
Consequently, after a solid fourth quarter, Susquehanna is boosting their EPS estimates and price target on CAT raising their guidance.
Susquehanna raised their full year 2011 by 6 percent and their full year 2012 EPS estimate by 5 percent. The new full year 2011/12 EPS estimates were bumped up from $5.90 and $7.50 to $6.25 and $7.85.
They maintain their "Positive" rating on Caterpillar, which closed Friday at $95.68, losing $0.95, or 0.98 percent. Susquehanna boosted their price target on Caterpillar from $105 to $118.
Consequently, after a solid fourth quarter, Susquehanna is boosting their EPS estimates and price target on CAT raising their guidance.
Susquehanna raised their full year 2011 by 6 percent and their full year 2012 EPS estimate by 5 percent. The new full year 2011/12 EPS estimates were bumped up from $5.90 and $7.50 to $6.25 and $7.85.
They maintain their "Positive" rating on Caterpillar, which closed Friday at $95.68, losing $0.95, or 0.98 percent. Susquehanna boosted their price target on Caterpillar from $105 to $118.
Friday, January 28, 2011
USG Corp.'s (NYSE:USG) PT, ESP Estimates Raised by Goldman (NYSE:GS)
Goldman Sachs raised their EPS estimates and price target on USG Corp. (NYSE:USG), saying they see the company focusing on increasing margins rather than sales volume in 2011.
They responded by increasing their EPS estimates for full year 2011 and full year 2012 from $1.74 and $0.25 to $1.53 and $0.19, based on stronger pricing power.
Also noted was the reduction in operation costs by the company. Consequently, stronger margins should be sustainable.
Goldman maintains a "Neutral" rating on USG, which closed Thursday at $16.75, down $0.50, or 2.90 percent. Goldman raised their price target on USG from $11 to $12.50.
They responded by increasing their EPS estimates for full year 2011 and full year 2012 from $1.74 and $0.25 to $1.53 and $0.19, based on stronger pricing power.
Also noted was the reduction in operation costs by the company. Consequently, stronger margins should be sustainable.
Goldman maintains a "Neutral" rating on USG, which closed Thursday at $16.75, down $0.50, or 2.90 percent. Goldman raised their price target on USG from $11 to $12.50.
Kimberly Clark's (NYSE:KMB) Gross Margin Expansion Impressive
Kimberly Clark (NYSE:KMB) made significant headway in the expansion of gross margins in the fourth quarter, impressing Jefferies.
Jefferies said they "are impressed with management's ability to expand gross margins in the 4Q given the difficult consumer environment in developed markets coupled with rampant input cost inflation, 2011 appears to be shaping up as one of restructuring and continued below-trend growth."
They set full year EPS estimates for 2011 and 2012 at $4.95 and $5.30.
Jefferies reiterates their "Hold" rating on Kimberly Clark (KMB), which closed Thursday at $65.13, level with the close on Wednesday. Jefferies raised their price target on Kimberly from $67 to $70.
Jefferies said they "are impressed with management's ability to expand gross margins in the 4Q given the difficult consumer environment in developed markets coupled with rampant input cost inflation, 2011 appears to be shaping up as one of restructuring and continued below-trend growth."
They set full year EPS estimates for 2011 and 2012 at $4.95 and $5.30.
Jefferies reiterates their "Hold" rating on Kimberly Clark (KMB), which closed Thursday at $65.13, level with the close on Wednesday. Jefferies raised their price target on Kimberly from $67 to $70.
Cohu's (NASDAQ:COHU) GM Weakness Driving EPS Down
Cohu (NASDAQ:COHU) gave low guidance from its GM exposure, falling close to 34 percent, resulting in Needham lowering their EPS estimate on them.
Needham says, "The semi equipment orders dropped 9% Q/Q and the semi equipment book-to-bill was 0.88. Revenue guidance for Q4 was to the range of $85-90M or a 10% decline Q/Q. This is in line with our revenue estimate. However, the GM guide of flat at about 34% is below our expectation and is expected to carry thorough mid-2011. This was due to a delay in taking manufacturing steps offshore from the Poway, CA facility for mostly the Pyramid handler. We adjusted our 2011 revenue/EPS from $323M/$1.75 to $326M/$1.55 and introduced our 2012 revenue/EPS at $319M/$1.70."
Needham & Company maintains a "Buy" rating on Cohu (COHU), which closed at $15.18, losing $1.48, or 8.88 percent. Needham lowered their price target on Cohu from $21 to $20.
Needham says, "The semi equipment orders dropped 9% Q/Q and the semi equipment book-to-bill was 0.88. Revenue guidance for Q4 was to the range of $85-90M or a 10% decline Q/Q. This is in line with our revenue estimate. However, the GM guide of flat at about 34% is below our expectation and is expected to carry thorough mid-2011. This was due to a delay in taking manufacturing steps offshore from the Poway, CA facility for mostly the Pyramid handler. We adjusted our 2011 revenue/EPS from $323M/$1.75 to $326M/$1.55 and introduced our 2012 revenue/EPS at $319M/$1.70."
Needham & Company maintains a "Buy" rating on Cohu (COHU), which closed at $15.18, losing $1.48, or 8.88 percent. Needham lowered their price target on Cohu from $21 to $20.
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