Click here to close now.


News Feed Item

The Zacks Analyst Blog Highlights: IBM, Sempra Energy, NRG Energy, Laclede Group and Questar

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 IBM (NYSE:IBM), Sempra Energy (NYSE:SRE), NRG Energy Inc. (NYSE:NRG), The Laclede Group, Inc. (NYSE:LG) and Questar Corporation (NYSE:STR).


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:

IBM Misses Earnings, Revenues in Q1

IBM (NYSE:IBM) missed the Zacks Consensus Estimate for the first time in years during its first quarter. Years!

The computing powerhouse also missed on the top line, in a quarterly performance that is sure to add to growing concerns about the market and the economy. Mercifully, Big Blue kept its outlook for 2013 unchanged, which is going to have to pass as good news in an otherwise surprising report.

As of this writing, shares of Big Blue are down more than 4% after hours.

IBM reported operating earnings per share of $3 for the first quarter, which was below the Zacks Consensus Estimate of $3.06. The result was 8% better than the year-ago performance.

Total revenues of $23.4 billion were also below the Zacks Consensus Estimate of $24.5 billion. While the earnings miss is surprising, the revenue miss is more disappointing. In its fourth quarter, IBM had topped expectations for the first time in several quarters. We were hoping that was the beginning of a turnaround in this department. Guess not.

The company stated that it failed to close a number of software and mainframe transactions, which have moved into the second quarter. Meanwhile, the services business performed as expected.

IBM was pretty much standing still heading into this report. With a Zacks Rank #3 (Hold), there had been very few earnings estimate revisions in the past several months. The Zacks Consensus Estimate for this year is at $16.74 per share, which is up from $16.58 three months ago, but had been rather stagnant since. In fact, the consensus is down a penny in the past 7 days.

It will be interesting to see what kind of repercussions this report has on earnings season. IBM is seen as a bellwether not only for technology, but the market in general. A good report could have helped the souring mood among investors, but it will instead bring a lot of questions.

Sempra Buys More Renewables

San Diego Gas & Electric (SDG&E), a subsidiary of Sempra Energy (NYSE:SRE), has entered into power purchase agreements ("PPA") to buy 62 megawatts ("MW") of capacity from five renewable energy projects in California. These projects comprise three solar and two wind operations.

Per a 20-year agreement, Sempra will buy 7 MW of solar power from Northlight Power's NLP Valley Center and 20 MW of power from Silverado Power, LLC's Zodiac projects. Both these solar projects are located in San Diego County. NLP Valley Center is expected to come online in Sep 2014 and Zodiac in May 2015.

The company will buy 20 MW of energy from E.ON Climate and Renewables' Maricopa West project, according to a 15-year power agreement. This project will be built in Kern County and is expected to come online in Jan 2015.

In a 10-year agreement, the company will buy wind power from Terra-Gen's 3.5 MW Oak Creek that will be built in Kern County. This project is expected to come online in Jan 2014. Sempra has entered into another 10-year agreement to buy 11.2 MW from San Gorgonio Westwinds II projects that will be built at Riverside County. This wind project is expected to begin operations in Jan 2015.

However, these five agreements have yet to be approved by California Public Utilities Commission.

Sempra is on track to meet the state's renewable energy goal that calls for generating 33% of energy from renewable sources by 2020. In 2011, the company entered into 23 renewable energy contracts that resulted in 20.8% of energy produced from renewable sources.

In 2012, the company signed 13 such contracts, resulting in 20.3% of energy from renewables. The company believes that if the same trend continues then it will be able to generate 25% of renewable energy by 2016.

Recently, the first large scale renewable energy project, namely the NRG Solar Borrego Project, came online in San Diego County which was developed by

NRG Energy Inc.




Currently, Sempra has six projects under construction in the Imperial Valley. These projects include the Ocotillo Express Wind Project that was connected to the Sunrise Powerlink in Dec 2012.

All these project developments have enabled the company to create a well-balanced renewable portfolio that is a combination of a broad spectrum of energy sources including solar, wind, biomass, biogas and geothermal energy. The company presently retains a short-term Zacks Rank #2 (Buy).

Other stocks worth considering are The Laclede Group, Inc. (NYSE:LG) and Questar Corporation (NYSE:STR), both with a Zacks Rank #2 (Buy).

Based in California, Sempra Energy is an energy services holding company involved in the sale, distribution, storage, and transportation of electricity and natural gas.

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
SYS-CON Events announced today that Luxoft Holding, Inc., a leading provider of software development services and innovative IT solutions, has been named “Bronze Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Luxoft’s software development services consist of core and mission-critical custom software development and support, product engineering and testing, and technology consulting.
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text...
Between the compelling mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how busine...
Nowadays, a large number of sensors and devices are connected to the network. Leading-edge IoT technologies integrate various types of sensor data to create a new value for several business decision scenarios. The transparent cloud is a model of a new IoT emergence service platform. Many service providers store and access various types of sensor data in order to create and find out new business values by integrating such data.
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
Scott Guthrie's keynote presentation "Journey to the intelligent cloud" is a must view video. This is from AzureCon 2015, September 29, 2015 I have reproduced some screen shots in case you are unable to view this long video for one reason or another. One of the highlights is 3 datacenters coming on line in India.
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Bryan Forrester, Senior Vice President of Sales at eFolder, will present how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He will also demonstrate how easy it is to search and restore cloud application data using Cloudfinder.
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/...
SYS-CON Events announced today that Spirent Communications, the leader in testing navigation and positioning systems, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Spirent Communications enables innovations in communications technologies that help connect people. Whether it is service provider, data centers, enterprise IT networks, mobile communications, connected vehicles or the Inte...
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, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate 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, ...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, will look at di...
Saviynt Inc. has announced the availability of the next release of Saviynt for AWS. The comprehensive security and compliance solution provides a Command-and-Control center to gain visibility into risks in AWS, enforce real-time protection of critical workloads as well as data and automate access life-cycle governance. The solution enables AWS customers to meet their compliance mandates such as ITAR, SOX, PCI, etc. by including an extensive risk and controls library to detect known threats and b...
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
The enterprise is being consumerized, and the consumer is being enterprised. Moore's Law does not matter anymore, the future belongs to business virtualization powered by invisible service architecture, powered by hyperscale and hyperconvergence, and facilitated by vertical streaming and horizontal scaling and consolidation. Both buyers and sellers want instant results, and from paperwork to paperless to mindless is the ultimate goal for any seamless transaction. The sweetest sweet spot in innov...