Welcome!

News Feed Item

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

CHICAGO, April 19, 2013 /PRNewswire/ -- Zacks.com 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).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

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: http://at.zacks.com/?id=5517

About Zacks

Zacks.com 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 http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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]
http://www.zacks.com

 

 

 

 

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
Organizations do not need a Big Data strategy; they need a business strategy that incorporates Big Data. Most organizations lack a road map for using Big Data to optimize key business processes, deliver a differentiated customer experience, or uncover new business opportunities. They do not understand what’s possible with respect to integrating Big Data into the business model.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...