Showing posts with label Earnings Per Share. Show all posts
Showing posts with label Earnings Per Share. Show all posts
Tuesday, October 9, 2012
Alcoa (AA) Earnings, Revenue Plummet YOY
Earnings and revenue for aluminum giant Alcoa (AA) plunged from the same quarter last year, suffering a net loss of $143 million, with revenue falling from $6.42 billion last year to $5.83 billion this year. Earnings dropped from a profit of $172 million last year to a loss of $143 million this year.
I'm not sure why the headlines are screaming about the company meeting analysts' expectations, as the expectations were so low it would have been hard to lose in that environment.
Analysts had been looking for the company to generate revenue of $5.54 billion, and for earnings to come in even with last year's numbers.
CEO Klaus Kleinfeld continues to beat the drum about aluminum demand going to double sometime between 2010 and 2020, but things will have to change drastically for that to happen in the years ahead.
Of course there's little place to go up for the price, so if there ever is the beginnings of a real economic recovery, aluminum prices could shoot up, but there are far too many variables and questions concerning the global economy to be able to even suggest that is going to happen in the near future.
Again, I'm not sure how these dismal numbers can be called a beat, other than analysts lowered their estimations so much that it was inevitable that Alcoa would surpass them. But at least they were able to. Anything less would have been an even greater disaster for the struggling company.
Some of the segments Kleinfeld says grew were in the automotive business in the United States, as well as the aerospace unit.
Alcoa closed at $9.13, up by a penny, or 0.11 percent. In after hours trading the company was down $0.10.
Thursday, November 4, 2010
Anadarko Petroleum (NYSE:APC) Should Deliver 7% to 9% Production Growth Long Term
Over the next five years, Anadarko Petroleum (NYSE:APC) should grow production at an annual rate of 7 percent to 9 percent, says Barclays (NYSE:BCS).
"Anadarko reported an adjusted Q3 EPS headline miss of $0.21 vs. our $0.25 and consensus of $0.28. Higher-than-guided G&A contributed to the miss vs. our estimates as APC accrued a $30-million non-executive compensation charge related to a program designed to retain personnel after the Macondo incident. The company slightly raised 2010 production guidance and lowered spending - 3%. We continue to believe the long-term story is intact with APC poised to deliver 7-9% annual production growth for the next five years. The uncertainty surrounding potential liabilities from the Macondo incident is likely to steer performance in the intermediate term."
EPS estimates lowered from $1.85 to $1.55 for the full year 2010, and for the full year 2011 from $1.45 to $0.80.
Anadarko closed down at $63.64, dropping $0.18, or 0.28 percent. Barclays maintains an "Overweight" on them with a price target of $71, raised from $65.
"Anadarko reported an adjusted Q3 EPS headline miss of $0.21 vs. our $0.25 and consensus of $0.28. Higher-than-guided G&A contributed to the miss vs. our estimates as APC accrued a $30-million non-executive compensation charge related to a program designed to retain personnel after the Macondo incident. The company slightly raised 2010 production guidance and lowered spending - 3%. We continue to believe the long-term story is intact with APC poised to deliver 7-9% annual production growth for the next five years. The uncertainty surrounding potential liabilities from the Macondo incident is likely to steer performance in the intermediate term."
EPS estimates lowered from $1.85 to $1.55 for the full year 2010, and for the full year 2011 from $1.45 to $0.80.
Anadarko closed down at $63.64, dropping $0.18, or 0.28 percent. Barclays maintains an "Overweight" on them with a price target of $71, raised from $65.
Kennametal (NYSE:KMT) Margins Look to Improve
While the majority of analysts have been falling all over themselves over Kennametal (NYSE:KMT) after their first earnings report, UBS (NYSE:UBS) was more subdued, maintaining their "Neutral" rating on them, while dropping their price target significantly.
UBS said, "We are raising our FY11E EPS to $2.35, from $2.10, largely to reflect an improved margin profile. We are tweaking our FY12 and FY13 EPS estimates, to $2.80 and $3.15, from $2.85 and $3.18, respectively."
Earnings projections from Kennametal were also raised from a range of $1.85 to $2.15 a share to $2.25 to $2.45.
Kennametal did raise their guidance for Fiscal 2011, with a moderate growth pace to continue in their eyes. Both earnings and sales projections were also raised.
Even so, UBS sees them struggling with their share price, and lowered their price target from $36 to $30.
Kennametal closed Wednesday at $33.80, losing $0.54, or 1.60 percent.
UBS said, "We are raising our FY11E EPS to $2.35, from $2.10, largely to reflect an improved margin profile. We are tweaking our FY12 and FY13 EPS estimates, to $2.80 and $3.15, from $2.85 and $3.18, respectively."
Earnings projections from Kennametal were also raised from a range of $1.85 to $2.15 a share to $2.25 to $2.45.
Kennametal did raise their guidance for Fiscal 2011, with a moderate growth pace to continue in their eyes. Both earnings and sales projections were also raised.
Even so, UBS sees them struggling with their share price, and lowered their price target from $36 to $30.
Kennametal closed Wednesday at $33.80, losing $0.54, or 1.60 percent.
Yingli Green (NYSE:YGE) Sales Rising, Costs Lowering
Yingli Green Energy Holding (NYSE:YGE) earnings per share estimate was upwardly revised by Auriga on expected higher sales over the next two quarters, and on remaining committed to being a low-cost leader.
"We raise Yingli's 3Q10 and 4Q10 estimates on higher sales, better than expected cost control, and currency tailwinds. Yingli's price-leader sales strategy stoked its channel while cost programs have run ahead of industry price declines. Yingli's near-term results clearly benefit from current industry trends, and we expect this to continue into 2011. We maintain our 2011 estimates ahead of the 3Q10 report and look for more clarity from the call before adjusting our 2011 view in-line with recent trends...We raise near-term estimates to reflect industry trends and increase 2010 Sales/GM%/EPS to $1.78b/32%/$1.30 from $1.67b/30.6%/$1.00, but maintain our prior 2011 estimates and $15 target," said Auriga.
They maintain their "Buy" rating on Yingli, which closed Wednesday down at $11.90, losing $0.06, or 0.50 percent. A price target of $15 was placed on Yingli by Auriga.
"We raise Yingli's 3Q10 and 4Q10 estimates on higher sales, better than expected cost control, and currency tailwinds. Yingli's price-leader sales strategy stoked its channel while cost programs have run ahead of industry price declines. Yingli's near-term results clearly benefit from current industry trends, and we expect this to continue into 2011. We maintain our 2011 estimates ahead of the 3Q10 report and look for more clarity from the call before adjusting our 2011 view in-line with recent trends...We raise near-term estimates to reflect industry trends and increase 2010 Sales/GM%/EPS to $1.78b/32%/$1.30 from $1.67b/30.6%/$1.00, but maintain our prior 2011 estimates and $15 target," said Auriga.
They maintain their "Buy" rating on Yingli, which closed Wednesday down at $11.90, losing $0.06, or 0.50 percent. A price target of $15 was placed on Yingli by Auriga.
Wednesday, November 3, 2010
Citigroup (NYSE:C) Sees Baker Hughes (NYSE:BHI) Performing Strong
Citing the recent strong quarter from Baker Hughes (NYSE:BHI), Citigroup (NYSE:C) sees them continuing on in that performance going forward.
Citigroup raised their 2010 EPS estimate from $1.75 to $2.02 a share, and its 2011 EPS forecast from $2.80 to $3.30 a share.
A "Hold" rating was maintained on Baker by Citi.
Baker Hughes closed Tuesday at $49.28, gaining $0.91, or 1.88 percent. Citigroup increased their price target on them from $49 to $56.
Citigroup raised their 2010 EPS estimate from $1.75 to $2.02 a share, and its 2011 EPS forecast from $2.80 to $3.30 a share.
A "Hold" rating was maintained on Baker by Citi.
Baker Hughes closed Tuesday at $49.28, gaining $0.91, or 1.88 percent. Citigroup increased their price target on them from $49 to $56.
Anadarko Petroleum (NYSE:APC) Raises Production Guidance for 2010
Based on their stronger-than-expected quarterly performance, Anadarko Petroleum (NYSE:APC) increased their production guidance for 2010, and UBS (NYSE:UBS) agrees with them, raising their price target on the oil company while maintaining a "Buy" rating on them.
UBS said, "APC raised 2010 production guidance by 0.5 MMBoe to 233-236 MMBoe (entirely due to stronger than expected 3Q), trimmed its capex budget by $150 million, and raised per unit cost guidance 2%. We’re adjusting ‘10 EPS/CFPS from $1.75/10.85 to $1.55/$10.60 while maintaining ’11 EPS/CFPS at $2.10/$12.20."
Anadarko closed Tuesday's session at $63.82, increasing $0.66, or 1.04 percent. UBS raised their price target on the company from $66 to $72.
UBS said, "APC raised 2010 production guidance by 0.5 MMBoe to 233-236 MMBoe (entirely due to stronger than expected 3Q), trimmed its capex budget by $150 million, and raised per unit cost guidance 2%. We’re adjusting ‘10 EPS/CFPS from $1.75/10.85 to $1.55/$10.60 while maintaining ’11 EPS/CFPS at $2.10/$12.20."
Anadarko closed Tuesday's session at $63.82, increasing $0.66, or 1.04 percent. UBS raised their price target on the company from $66 to $72.
Tuesday, November 2, 2010
BP (NYSE:BP) Costs Rise to $40 Billion for Gulf Oil Spill
While turning a profit for their latest quarter, BP (NYSE:BP) took another charge of close to $7.7 billion related to the spill, which brings their total costs to an enormous $40 billion so far.
They also turned a profit of $1.785 billion, a major improvement over the last quarter when they had a loss of $16.9 billion.
The extra charge for the quarter was higher than expected because of the company taking longer in September to plug the well than they had anticipated.
BP CEO Bob Dudley said, "We have made good progress during the quarter. This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months.
"We have also begun to make important changes in the way we operate across the group ... to ensure that safety and risk management are embedded as the absolute priority for every operation, for every person, throughout BP."
The $40 billion is an estimate as to what the costs of the oil spill will ultimately be, almost 25 percent above previous estimates, and sure to rise.
They also turned a profit of $1.785 billion, a major improvement over the last quarter when they had a loss of $16.9 billion.
The extra charge for the quarter was higher than expected because of the company taking longer in September to plug the well than they had anticipated.
BP CEO Bob Dudley said, "We have made good progress during the quarter. This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months.
"We have also begun to make important changes in the way we operate across the group ... to ensure that safety and risk management are embedded as the absolute priority for every operation, for every person, throughout BP."
The $40 billion is an estimate as to what the costs of the oil spill will ultimately be, almost 25 percent above previous estimates, and sure to rise.
Alliance Resource (Nasdaq:ARLP) Should Rebound in 2011
Alliance Resource Partners (Nasdaq:ARLP) should enjoy a rebound in 2011 says Barclays (NYSE:BCS), who raised the price target on the coal miner while maintaining their "Equalweight" rating on the company.
Barclays said, "Alliance Resource Partners reported 3Q10 earnings per unit of $1.48 vs. the consensus estimate of $1.69/unit and our estimate of $1.67/unit. The miss was driven in part by lower than expected coal volumes in Northern and Central Appalachia due to the heightened regulatory environment together with higher operating costs due to the ongoing ramp up of the River View mine...Our new $62 target price assumes a 6.5% yield on our 2012 distribution estimate of $4.00 per unit. Our prior price target of $55/unit assumed a 7.3% yield on our 2012 distribution estimate of $4.00 per unit."
Barclays did lower their earnings per share estimate on Alliance from $6.90 to $6.70 a share, but increased it significantly for full year 2011 from $5.70 to 6.75.
Alliance closed Monday at $59.45, gaining $0.61, or 1.04 percent. Barclays increased their price target on the company from $55 to $62.
Barclays said, "Alliance Resource Partners reported 3Q10 earnings per unit of $1.48 vs. the consensus estimate of $1.69/unit and our estimate of $1.67/unit. The miss was driven in part by lower than expected coal volumes in Northern and Central Appalachia due to the heightened regulatory environment together with higher operating costs due to the ongoing ramp up of the River View mine...Our new $62 target price assumes a 6.5% yield on our 2012 distribution estimate of $4.00 per unit. Our prior price target of $55/unit assumed a 7.3% yield on our 2012 distribution estimate of $4.00 per unit."
Barclays did lower their earnings per share estimate on Alliance from $6.90 to $6.70 a share, but increased it significantly for full year 2011 from $5.70 to 6.75.
Alliance closed Monday at $59.45, gaining $0.61, or 1.04 percent. Barclays increased their price target on the company from $55 to $62.
Mosaic (NYSE:MOS), CF (NYSE:CF) Will Benefit from Fertilizer Price Increases says Barclays (NYSE:BCS)
The increase in the price of corn and soybeans has been a gamechanger in the fertilizer industry, and Barclays (NYSE:BCS) sees CF Industries (NYSE:CF) and Mosaic (NYSE:MOS) benefiting strongly from it.
Barclays expects and especially strong move from CF Industries, raising their price target on them from $105 to $130 over the next year, and for Mosaic, they raised the price target on them from $60 to $69.
For CF, Barclays sees them driven by higher raising nitrogen prices, increasing estimates for CF from $264 a ton to $296 a ton and its 2011 estimate from $257 to $288. The firms 2010 average phosphate price estimate was increased from $410 to $494 and its 2011 estimate raised from $408 to $474.
Concerning phosphate prices for Mosaic, Barclays boosted their 2011 and 2012 phosphate price estimate from $451 and $433 to $480 and $476.
CF closed Monday at $121.39, losing $1.14, or 0.93 percent. Mosaic closed down at $72.33, falling $0.83, or 1.13 percent.
Barclays expects and especially strong move from CF Industries, raising their price target on them from $105 to $130 over the next year, and for Mosaic, they raised the price target on them from $60 to $69.
For CF, Barclays sees them driven by higher raising nitrogen prices, increasing estimates for CF from $264 a ton to $296 a ton and its 2011 estimate from $257 to $288. The firms 2010 average phosphate price estimate was increased from $410 to $494 and its 2011 estimate raised from $408 to $474.
Concerning phosphate prices for Mosaic, Barclays boosted their 2011 and 2012 phosphate price estimate from $451 and $433 to $480 and $476.
CF closed Monday at $121.39, losing $1.14, or 0.93 percent. Mosaic closed down at $72.33, falling $0.83, or 1.13 percent.
Edison International (NYSE:EIX) Considered "Undervalued" by Jefferies
After solid third-quarter results by Edison International (NYSE:EIX), Jefferies raised their price target on the energy company while maintaining their "Buy" rating on them.
Jefferies said, "We believe that EIX is undervalued, trading at the discount of our estimated stand-alone utility value of about $41.50. We do not assign any value to the merchant business."
While upping their earnings per share estimate for 2010 from $3.30 to $3.50, for 2011 they lowered EPS from $2.90 to $2.65 and 2012 from $2.65 to $2.40.
Edison International closed Monday at $37.04, gaining $0.14, or 0.38 percent. Jefferies raised their price target on them from $38 to $41.50.
Jefferies said, "We believe that EIX is undervalued, trading at the discount of our estimated stand-alone utility value of about $41.50. We do not assign any value to the merchant business."
While upping their earnings per share estimate for 2010 from $3.30 to $3.50, for 2011 they lowered EPS from $2.90 to $2.65 and 2012 from $2.65 to $2.40.
Edison International closed Monday at $37.04, gaining $0.14, or 0.38 percent. Jefferies raised their price target on them from $38 to $41.50.
Commercial Metals (NYSE:CMC) Earnings Cut Hard by UBS (NYSE:UBS)
Although UBS (NYSE:UBS) maintained their "Neutral" rating on Commercial Metals (NYSE:CMC), while looking for the fourth quarter to gradually improve, they still see some challenges, and lowered their earnings outlook and price target on the company.
UBS said, "Mgmt anticipated a breakeven Q1 vs consensus $0.17, absent LIFO, which could be a hit given CMC’s outlook for higher scrap prices into its Nov qtr. It cited seasonal weakness, continued downstream ops losses, and Croatia maintenance. We cut Q1e to $0.02 from $0.25 and 2011e to $0.65 vs $1.15 and consensus $1.30."
Commercial Metals closed level on Monday, ending at $13.88, the same as Friday's close. UBS lowered their price target on them from $16 to $15.
UBS said, "Mgmt anticipated a breakeven Q1 vs consensus $0.17, absent LIFO, which could be a hit given CMC’s outlook for higher scrap prices into its Nov qtr. It cited seasonal weakness, continued downstream ops losses, and Croatia maintenance. We cut Q1e to $0.02 from $0.25 and 2011e to $0.65 vs $1.15 and consensus $1.30."
Commercial Metals closed level on Monday, ending at $13.88, the same as Friday's close. UBS lowered their price target on them from $16 to $15.
Goldman Sachs (NYSE:GS) Slashes Consol Energy (NYSE:CNX) Price Target
Goldman Sachs (NYSE:GS) took the knife to the price target of Consol Energy Inc. (NYSE:CNX), cutting their price target on the company after missing earnings per share estimates in the last quarter.
Even, Goldman did say they liked the high margin businesses of the company, and still maintain a "Buy" rating on them.
Goldman said in a note to clients, "Despite the challenges, we remain Buy-rated ,as we like CNX's high-margin businesses and see shares as undervalued on a SOTP basis with risk/reward positive. Assuming historic average multiples, we believe shares are discounting HH gas prices per MMBtu of $4.00 for 2011 and $4.50 in 2012 with little credit for asset sales and West VA Marcellus resource upside potential. We believe natural gas prices are at the lower end of a $3.50-$5.00 NT trading range, likely limiting further downside to Buy-side estimates and sentiment. Street expectations for 2011-2012 coal volumes have been reset lower. We see $2-$3/share of upside from the sale of met coal assets and $2-$7/share if WV drilling results are positive."
Consol closed Monday at $36.91, gaining $0.15, or 0.41 percent. Goldman has a price target of $44 on them, lowering it from $47.
Even, Goldman did say they liked the high margin businesses of the company, and still maintain a "Buy" rating on them.
Goldman said in a note to clients, "Despite the challenges, we remain Buy-rated ,as we like CNX's high-margin businesses and see shares as undervalued on a SOTP basis with risk/reward positive. Assuming historic average multiples, we believe shares are discounting HH gas prices per MMBtu of $4.00 for 2011 and $4.50 in 2012 with little credit for asset sales and West VA Marcellus resource upside potential. We believe natural gas prices are at the lower end of a $3.50-$5.00 NT trading range, likely limiting further downside to Buy-side estimates and sentiment. Street expectations for 2011-2012 coal volumes have been reset lower. We see $2-$3/share of upside from the sale of met coal assets and $2-$7/share if WV drilling results are positive."
Consol closed Monday at $36.91, gaining $0.15, or 0.41 percent. Goldman has a price target of $44 on them, lowering it from $47.
Jinko Solar (NYSE:JKS) Should Push its Way to Higher Earnings
JinkoSolar Holding (NYSE:JKS) looks like after its third-quarter report they have a strong chance of pressing their way into higher earnings, according to analysis from Auriga.
Auriga said, "Jinko Solar's (JKS, Buy) 3Q10 results above Consensus and our recently raised estimates show the continuing potential upside from big capacity additions and better than expected cost reductions. While we do see declining margins into 2011 as a necessity, we also believe Jinko Solar's approach is correct by increasing capacity ahead of price declines and continuing down the cost curve. We raise our 2011 EPS estimate to $5.05 from $4.60 and increase our target."
"Risk increases on potential ASP and poly swings. Large potential variability in module ASPs vs poly costs represents the biggest risk to the stock - both upside and downside. Management spoke of module ASPs trending with poly cost, but this is not assured. While we model both poly price and module ASP declines, we also recognize that the two are not inextricably linked. Our model assumes JKS' poly cost peaks at $72/kg in 1Q11 and declines to $55/kg in 4Q11."
JinkoSolar soared in Monday's trading after smokin' the quarter, with revenue soaring by 261 percent to $215 million, smashing the $153.3 million analysts were looking for. Gross profit outperformed as well, increasing from $9.3 million to $72 million.
Two things the company has going for it in a slowing market is the continual commitment to lower costs, while also being able to land deal for 2011 when most the rest of the industry will struggle.
JinkoSolar closed Monday at $35.14, gaining $4.99, or 16.55 percent. Auriga raised their price target on JinkoSolar from $37 to $40 a share.
Auriga said, "Jinko Solar's (JKS, Buy) 3Q10 results above Consensus and our recently raised estimates show the continuing potential upside from big capacity additions and better than expected cost reductions. While we do see declining margins into 2011 as a necessity, we also believe Jinko Solar's approach is correct by increasing capacity ahead of price declines and continuing down the cost curve. We raise our 2011 EPS estimate to $5.05 from $4.60 and increase our target."
"Risk increases on potential ASP and poly swings. Large potential variability in module ASPs vs poly costs represents the biggest risk to the stock - both upside and downside. Management spoke of module ASPs trending with poly cost, but this is not assured. While we model both poly price and module ASP declines, we also recognize that the two are not inextricably linked. Our model assumes JKS' poly cost peaks at $72/kg in 1Q11 and declines to $55/kg in 4Q11."
JinkoSolar soared in Monday's trading after smokin' the quarter, with revenue soaring by 261 percent to $215 million, smashing the $153.3 million analysts were looking for. Gross profit outperformed as well, increasing from $9.3 million to $72 million.
Two things the company has going for it in a slowing market is the continual commitment to lower costs, while also being able to land deal for 2011 when most the rest of the industry will struggle.
JinkoSolar closed Monday at $35.14, gaining $4.99, or 16.55 percent. Auriga raised their price target on JinkoSolar from $37 to $40 a share.
Monday, November 1, 2010
Citigroup (NYSE:C) Sees Uncertainty Ahead for TC Pipelines (Nasdaq:TCLP)
While Citigroup (NYSE:C) maintained its "Hold" rating on TC Pipelines (Nasdaq:TCLP), while raising their price target on them, they said in a research note that going to 2011, EPU remain "unclear" for the company.
Also in spite of the uncertainty going forward, Citigroup raised their 2010 and 2011 earnings per share estimates from $1.98 to $2.71 for 2010, and from $2.54 to $2.84 for 2011.
In their latest quarterly results, TC Pipeline's EPU of $0.82 beat Citi's estimate of $0.51.
TC was trading at $48.90, losing $0.34, or 0.69 percent. Citigroup raised their price target on them from $42.50 to $48.50.
Also in spite of the uncertainty going forward, Citigroup raised their 2010 and 2011 earnings per share estimates from $1.98 to $2.71 for 2010, and from $2.54 to $2.84 for 2011.
In their latest quarterly results, TC Pipeline's EPU of $0.82 beat Citi's estimate of $0.51.
TC was trading at $48.90, losing $0.34, or 0.69 percent. Citigroup raised their price target on them from $42.50 to $48.50.
Has Enbridge Energy (NYSE:EEP) Finally Turned the Corner?
After reputation problems results from the pipeline spills, Barclays (NYSE:BCS) sees Enbridge Energy Partners (NYSE:EEP) as having turned the corner, maintaining their "Equalweight" on them while raising the price target.
Barclays said, "Turning the corner following pipeline spills. Combining better-than-expected 3Q results, a restart of Lines 6A and 6B, expected accretion from the Elk City acquisition and reaffirmation of distribution growth guidance, we feel EEP has turned the corner following the pipeline spills. While EEP will likely have a few messy accounting quarters and higher '11 maintenance capex, the spill overhang is largely removed, in our opinion."
Since the middle of September Enbridge has rebounded in share price nicely.
They closed Friday at $61.49, dropping $0.09, or 0.15 percent. Barclays raised their price target from $58 to $62 on Enbridge.
For earnings per share, that was adjusted for FY11 EPS from $2.72 to $2.92 and FY12 from $3.00 to $3.05.
Barclays said, "Turning the corner following pipeline spills. Combining better-than-expected 3Q results, a restart of Lines 6A and 6B, expected accretion from the Elk City acquisition and reaffirmation of distribution growth guidance, we feel EEP has turned the corner following the pipeline spills. While EEP will likely have a few messy accounting quarters and higher '11 maintenance capex, the spill overhang is largely removed, in our opinion."
Since the middle of September Enbridge has rebounded in share price nicely.
They closed Friday at $61.49, dropping $0.09, or 0.15 percent. Barclays raised their price target from $58 to $62 on Enbridge.
For earnings per share, that was adjusted for FY11 EPS from $2.72 to $2.92 and FY12 from $3.00 to $3.05.
Chart Industries (Nasdaq:GTLS) Orders Expected to Accelerate Says Barclays (NYSE:BCS)
Citing a global energy infrastructure buildout cycle starting up again, Barclays (NYSE:BCS) said orders for Chart Industries (Nasdaq:GTLS) should accelerate in 2011.
Barclays said, "We continue to believe Chart represents a solid long term investment and is a good way to gain leverage to the global energy
infrastructure buildout cycle which is restarting. We expect orders to
accelerate and drive backlog higher in the coming quarters.
"We are raising our 2011 and 2012 EPS estimates to $1.80 (from $1.70) and
$2.50 (from $2.40) reflecting higher margin assumptions for the Energy &
Chemicals and BioMedical businesses. We are increasing our price target to
$34. We are now keying our price target for GTLS off of 2012E earnings vs.
2011 previously) given increased confidence in a recovery in demand for energy infrastructure equipment and our view that 2012 will represent a more normalized earnings year for the company."
Barclays reiterated an "Overweight" on Chart, raising their price target from $27 to $34. Chart closed Friday's trading session at $23.30, losing $0.83, or 3.44 percent.
Barclays said, "We continue to believe Chart represents a solid long term investment and is a good way to gain leverage to the global energy
infrastructure buildout cycle which is restarting. We expect orders to
accelerate and drive backlog higher in the coming quarters.
"We are raising our 2011 and 2012 EPS estimates to $1.80 (from $1.70) and
$2.50 (from $2.40) reflecting higher margin assumptions for the Energy &
Chemicals and BioMedical businesses. We are increasing our price target to
$34. We are now keying our price target for GTLS off of 2012E earnings vs.
2011 previously) given increased confidence in a recovery in demand for energy infrastructure equipment and our view that 2012 will represent a more normalized earnings year for the company."
Barclays reiterated an "Overweight" on Chart, raising their price target from $27 to $34. Chart closed Friday's trading session at $23.30, losing $0.83, or 3.44 percent.
Friday, October 29, 2010
Citigroup (NYSE:C) Sees Cliffs' (NYSE:CLF) ArcelorMittal (NYSE:MT) Negotiations as No Risk to Earnings
Citigroup Inc. (NYSE:C) commented on Cliffs Natural Resources Inc.'s (NYSE:CLF) earnings today, targeting specifically the ongoing negotiations with ArcelorMittal (NYSE:MT).
Citigroup's Brian Yu wrote in a note that Citi sees negotiations between the companies "as a timing issue rather than an earnings risk."
Cliffs significantly missed on their third quarter operating earnings per share, which came in at $2.08, far below the $2.70 Citigroup was looking for. Earnings in general were reported at $2.18 a share.
Cliffs was trading at $64.24, up $0.87, or 1.37 percent as of 1:00 PM EDT.
Citigroup's Brian Yu wrote in a note that Citi sees negotiations between the companies "as a timing issue rather than an earnings risk."
Cliffs significantly missed on their third quarter operating earnings per share, which came in at $2.08, far below the $2.70 Citigroup was looking for. Earnings in general were reported at $2.18 a share.
Cliffs was trading at $64.24, up $0.87, or 1.37 percent as of 1:00 PM EDT.
Thursday, October 28, 2010
AK Steel (NYSE:AKS) Worst Pick Says UBS (NYSE:UBS)
UBS (NYSE:UBS) sees Thyssen's new mill as an overall drag on AK Steel (NYSE:AKS), which will hurt their more profitable businesses. Consequently, UBS said they're maintaining a "Neutral" rating on the company.
"We cut our Q4e EPS to a $0.64 loss to incorporate guidance of an $80/t EBIT loss on 10% fewer tons, and no planned repeat of a Q3 $8M+ FX gain. Seasonally weak Q4 volumes distort profits somewhat, but we see still challenging conditions into 2011. As such, we cut our 2011e to $0.30 from $0.42 and vs consensus $1.08," said UBS.
"AK is our least favorite pick...We have longer-term structural concerns over
pressure from Thyssen’s new mill, from both its high quality focus in AK’s auto niche business and just-started stainless steel capacity that can hurt AK's higher-profit businesses."
AK closed Wednesday at $12.40, losing $0.44, or 3.43 percent. UBS has a price target of $13 on them, lowering them from $14.
"We cut our Q4e EPS to a $0.64 loss to incorporate guidance of an $80/t EBIT loss on 10% fewer tons, and no planned repeat of a Q3 $8M+ FX gain. Seasonally weak Q4 volumes distort profits somewhat, but we see still challenging conditions into 2011. As such, we cut our 2011e to $0.30 from $0.42 and vs consensus $1.08," said UBS.
"AK is our least favorite pick...We have longer-term structural concerns over
pressure from Thyssen’s new mill, from both its high quality focus in AK’s auto niche business and just-started stainless steel capacity that can hurt AK's higher-profit businesses."
AK closed Wednesday at $12.40, losing $0.44, or 3.43 percent. UBS has a price target of $13 on them, lowering them from $14.
Hexcel (NYSE:HXL) Wind Growth Slowing Down
Alternative energy companies will remain under pressure, and that will be true of Hexcel (NYSE:HXL) as it pertains to their wind power segment, as the abundance of natural gas is expected to slow down demand and capital expenditure on companies producing wind products.
UBS (NYSE:UBS) said they're maintaining a "Neutral" on the company as recovery in the sector will take a long time. We don't see growth in that area for some time. After all, how long will it take for natural gas resources to slow down? It could be decades before they do, and probably into well over a 100 years. Not great news for the wind, solar and nuclear industries, among others.
"We have lowered our 2011 EPS estimate to $0.95 from $1.00 to account for a slower recovery in wind and also the headwind from a weaker dollar attributable to HXL’s significant Europe production. Our 2012-14 EPS estimates have also moved lower to account for a slower wind recovery. Vestas
today came out and forecast roughly 15% growth in shipments in 2011, below our prior forecast for wind. We remain cautious on HXL given the potential for wind growth to disappoint and A350 to slide to the right combined with its premium valuation."
Hexcel closed down Wednesday at $17.80, losing $0.29, or 1.60 percent. UBS has a price target of $18 on them.
UBS (NYSE:UBS) said they're maintaining a "Neutral" on the company as recovery in the sector will take a long time. We don't see growth in that area for some time. After all, how long will it take for natural gas resources to slow down? It could be decades before they do, and probably into well over a 100 years. Not great news for the wind, solar and nuclear industries, among others.
"We have lowered our 2011 EPS estimate to $0.95 from $1.00 to account for a slower recovery in wind and also the headwind from a weaker dollar attributable to HXL’s significant Europe production. Our 2012-14 EPS estimates have also moved lower to account for a slower wind recovery. Vestas
today came out and forecast roughly 15% growth in shipments in 2011, below our prior forecast for wind. We remain cautious on HXL given the potential for wind growth to disappoint and A350 to slide to the right combined with its premium valuation."
Hexcel closed down Wednesday at $17.80, losing $0.29, or 1.60 percent. UBS has a price target of $18 on them.
Wednesday, October 27, 2010
First Solar (Nasdaq:FSLR) An Investment, Not a Trading Stock
Communicating why it maintains a "Buy" rating on First Solar, Inc. (Nasdaq:FSLR), Auriga likes the strategy for the long term the management is enacting.
"Within our solar coverage, we continue to regard First Solar as an investment rather than a trading stock. Management has demonstrated the wherewithal to invest throughout the annual PV cycle while the project business brings stability to the business model in terms of both module placement and profitability. As the growth of the project business accelerates, the timing of revenue recognition will be difficult to model, thus investors, not traders, need to value the stock over longer investment horizons. Our profitability estimates continue to be above the Street consensus through 2011, and our initial EPS estimate on 2012 approaches $11/share," said Auriga.
Although possibly being too optimistic, Auriga sees earnings per share for 2010 having an upside, 2011 being too bearish for earnings per share, and expansion capacity driving the earnings per share to $11 in 2012.
Sounds more like a cheerleader in some ways rather than analysis.
First Solar closed at $148.15 Monday, gaining $1.00, or 0.68 percent. Auriga has a price target of $175 on them.
"Within our solar coverage, we continue to regard First Solar as an investment rather than a trading stock. Management has demonstrated the wherewithal to invest throughout the annual PV cycle while the project business brings stability to the business model in terms of both module placement and profitability. As the growth of the project business accelerates, the timing of revenue recognition will be difficult to model, thus investors, not traders, need to value the stock over longer investment horizons. Our profitability estimates continue to be above the Street consensus through 2011, and our initial EPS estimate on 2012 approaches $11/share," said Auriga.
Although possibly being too optimistic, Auriga sees earnings per share for 2010 having an upside, 2011 being too bearish for earnings per share, and expansion capacity driving the earnings per share to $11 in 2012.
Sounds more like a cheerleader in some ways rather than analysis.
First Solar closed at $148.15 Monday, gaining $1.00, or 0.68 percent. Auriga has a price target of $175 on them.
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