Click here to close now.


News Feed Item

The Zacks Analyst Blog Highlights: Baker Hughes, Schlumberger, Exterran Partners, Epl Oil & gas and Hasbro

CHICAGO, April 19, 2013 /PRNewswire/ -- announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Baker Hughes Incorporated (NYSE:BHI), Schlumberger Ltd. (NYSE:SLB), Exterran Partners, L.P. (Nasdaq:EXLP), Epl Oil & gas Inc. (NYSE:EPL) and Hasbro Inc. (Nasdaq:HAS).


Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Thursday's Analyst Blog:

Will Baker-Hughes Beat Earnings?

Houston-based oilfield services company, Baker Hughes Incorporated (NYSE:BHI) is set to report its first-quarter 2013 results on Apr 19, 2013. Let's see how things are shaping up prior to the announcement.

In the last quarter, the company's earnings of 62 cents per share decreased 48.3% from $1.20 per share earned in the year-ago quarter. The results were adversely impacted by unfavorable pricing conditions in the North American Pressure Pumping business. However, the results managed to beat the Zacks Consensus Estimate by a penny.

Growth Factors this Past Quarter

Baker Hughes' fourth-quarter results were stable having surpassed the Zacks Consensus Estimate for both revenues and earnings. However unfavorable pricing conditions in the North American Pressure Pumping business had resulted in year-over-year lower numbers both at the top and the bottom line.

The improvement came from strong international performance, thanks to Latin America and Europe/Africa/CIS. The company's robust seasonal year-end sales, which represented more than 50% of international revenue growth, were also of help. Although Middle East/Asia Pacific experienced some issues with Iraq start-up costs, these are expected to subside in late 2013 and return to more standardized margins.

Of late in Baker Hughes' monthly rig count release, the average U.S. rig count for Mar 2013 was 1,756, down 223 from 1,979 counted a year earlier. The monthly average Canadian rig count was 464, down 28 from 492 counted in Mar 2012. This shows that North American doldrums will continue to affect oil service providers going forward.

Management believes the Middle East/Asia Pacific, and Europe/Africa/Russia/Caspian regions, in particular Iraq and Saudi Arabia, are likely to be the primary growth drivers in the future. In such a scenario, we believe oil field providers like Schlumberger Ltd. (NYSE:SLB) without an overt North American exposure would fare well going forward.

Earnings Whispers?

Our proven model does not conclusively show that Baker Hughes' is likely to beat first quarter earnings. That is because a stock needs to have both a positive Zacks Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: The Expected Surprise Prediction or ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate Estimate and Zacks Consensus Estimate currently stands at 62 cents.
Zacks Rank #3 (Hold): Baker Hughes' Zacks Rank #3 (Hold) lowers the predictive power of ESP because the Zacks Rank #3 when combined with an ESP of 0.00% indicates the possibility of in line results. We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Exterran Partners, L.P. (Nasdaq:EXLP) has an earnings ESP of +4.35% and a Zacks Rank #1 (Strong Buy).

Epl Oil & gas Inc. (NYSE:EPL) has an earnings ESP of +9.76% and a Zacks Rank #1 (Strong Buy).

Hasbro Likely to Beat in 1Q

We expect Hasbro Inc. (Nasdaq:HAS), the worldwide leader in children's and family entertainment products and services, to beat earnings expectations when it reports first-quarter 2013 results before the opening bell on Apr 22.


Why a Likely Positive Surprise?

Our proven model shows that Hasbro has the right combination of two key ingredients to beat earnings.


Positive Zacks ESP: The Earnings ESP (Read: Zacks Earnings ESP: A Better Method) for Hasbro is  at +33.33% – the difference between the Most Accurate estimate of 4 cents per share and the Zacks Consensus Estimate of 3 cents per share. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.

Zacks Rank #3 (Hold): Hasbro's Zacks Rank #3 (Hold) increases the predictive power of its ESP. The combination of its Zacks Rank and +33.33% Earnings ESP makes us confident of a positive earnings surprise in the to-be-reported quarter.


Note that stocks with Zacks Ranks of #1, 2 and 3 have a significantly higher chance of beating earnings. The Sell rated stocks (#4 and 5) should never be considered going into an earnings announcement.


Drivers of Better-than-Expected Earnings

We believe Hasbro is likely to beat earnings in first-quarter gaining from its Entertainment backed products, growing Girls' category and stabilizing Games and Puzzle segments and cost controlling initiatives. Hasbro has been consistently trying to expand its business in the emerging markets in order to increase its international revenues. We expect this to provide Hasbro with a considerable up-market potential and prove accretive to first-quarter earnings.


Hasbro is riding high with its strong product line-up, key licensed brands and lucrative strategic partnerships with several gaming entities. Benefiting from this, the company has been performing favorably and has delivered an average earnings surprise of 1.32% over the last four quarters.


Other Stocks to Consider

Hasbro is not the only stock performing impressively this earnings season. We also observe that there are other companies, which are likely to beat earnings.


Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]





SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application del...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. ...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...