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
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes how...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
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 busin...
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...