CHICAGO, Aug. 3, 2011 /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 Parker Hannifin Corporation
(NYSE: PH), Marathon Oil Corporation (NYSE: MRO),
Marathon Petroleum Corporation (NYSE: MPC), Standard
Motor Products Inc. (NYSE: SMP) and Visteon Corporation
(NYSE: VC).
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Here are highlights from Tuesday's Analyst Blog:
Parker-Hannifin: Record Earnings
Parker Hannifin Corporation (NYSE: PH) released its
fourth-quarter fiscal 2011 earnings result before the market opened
today, reporting earnings per share of $1.79, slightly below the Zacks Consensus
Estimate of $1.80 and above
prior-year earnings of $1.35.
For full-year fiscal 2011, earnings per share of $6.37, were in line with the Zacks Consensus
Estimate. The company achieved record earnings results during the
year and also record sales and earnings for the quarter.
Total Revenue
The company's sales in the reported quarter increased by 22.4%
year over year to $3.4 billion. Sales
for the quarter included a 1% contribution from acquisition and 6%
from currency effects. Total orders in the quarter increased by
15%.
Outlook
Parker Hannifin expects fiscal
2012 earnings per share to be in the range of $6.70 to $7.50. The company continues to focus on
implementation of Win Strategy, a prime benefactor for Parker. The
company aims on providing leading services to its customers, new
product developments and system innovations. Acquisitions are also
a target for the company for growth.
We believe Parker Hannifin is a
high-quality company that is showing good execution. The company is
witnessing a recovery in aerospace demand, which positively favors
its future growth. MRO (Maintenance, Repair, and Overhaul) is
expected to get a boost from continued deferral of capital
investment in new machines. Parker
Hannifin's strong exposure to MRO-type products and ability
to convert net income into free cash flow will benefit future
earnings.
However, the company's domestic and foreign operations are
subject to significant competitive pressures. To compete
successfully, the company's Industrial and Climate &
Industrial Controls must excel in terms of product quality and
innovation, customer service, manufacturing and distribution
capability and price competitiveness.
New-Look Marathon Misses, Profits Up
Oil and natural gas exploration and production firm Marathon
Oil Corporation (NYSE: MRO) reported weaker-than-expected
second quarter 2011 results, as unplanned disruptions hurt
production.
Houston, Texas-based Marathon –
which recently spun off its refining/sales business into a
separate, independent and publicly traded company Marathon
Petroleum Corporation (NYSE: MPC) – announced earnings from
continuing operations (excluding special items) of 96 cents per share, below the Zacks Consensus
estimate of 99 cents per share. The
now-separated downstream unit has been treated as discontinued
operations.
However, compared with the year-ago period, Marathon's adjusted
earnings per share from continuing operations improved 54.8% (from
62 cents to 96 cents), while revenues
were up 33.1% to $3,865.0 million,
reflecting higher commodity prices.
Guidance
Marathon estimates third quarter 2011 E&P production
available for sale in the range of 330,000 – 350,000 BOE/d,
excluding the effect of any future acquisitions or disposals. For
the full year, volumes are expected to range between 350 and 360
BOE/d.
Rating
Marathon shares currently retain a Zacks #5 Rank, which
translates into a short-term Strong Sell rating.
Standard Motor Beats Estimate
Standard Motor Products Inc. (NYSE: SMP) reported
earnings of $13.7 million or
59 cents per share substantially
improving from $8.1 million or
35 cents per share in the second
quarter of 2010.
Reported income in the quarter included a post-retirement
curtailment gain of $2.19 million or
9 cents per share and another gain of
$157,000 or 1
cent per share from sale of assets whereas, the last year
quarter included a gain of $125,000
or 1 cent per share from sale of
assets along with restructuring and integration expenses of
$774,000 or 4
cents per share.
Excluding these items, adjusted earnings of the company stood at
$11.4 million or 49 cents per share compared with $8.7 million or 38
cents per share in the year-ago quarter. Earnings per share
also exceeded the Zacks Consensus Estimate of 45 cents per share.
Consolidated net sales in the quarter grew 5.6% to $244.0 million from $231.0
million in the corresponding quarter of 2010. Both the
business segments saw modest improvements in sales. The company
recently strengthened its Engine Management product line by
utilizing BLD Products' wide product portfolio.
The company had a gross profit of $63.2
million compared with a gross profit of $58.4 million in the comparable quarter of 2010.
The improvement was primarily driven by the company's efficient
cost management efforts, such as relocating to low cost
manufacturing sites, purchasing product from low cost areas and
lower overheads.
Revenues from the Temperature Control segment amounted to
$79.7 million, up 7.8% from last
year's $73.9 million. Gross profit
from the segment totaled $19.6
million up 10.7% year over year.
On the other hand, revenues in the Engine Management segment
escalated 4.6% to $159.9 million.
Gross profit in the segment also climbed up 6.7% to $40 million in the second quarter of 2011.
Standard Motor's cash balance improved slightly to $13.1 million as of June
30, 2011 from $12.1 million as
of December 31, 2010. Long-term debt
was reported at $258,000 at the end
of the second quarter of 2011 versus $307,000 as of December
31, 2010.
The Board of Directors also announced a payment a quarterly
dividend of 7 cents on September 01, 2011 to its stockholders of record
on August 15, 2011.
The Long Island City, New
York-based Standard Motor is one of the leading
manufacturers, distributors and marketers of automotive replacement
parts in the U.S. and enjoys a strong competitive advantage due to
its brand recognition and customer base. Moreover, is not
significantly exposed to the cyclicality of the automotive industry
since it is focused on the aftermarket, where it is a leading niche
market player.
However, high customer concentration, weak pricing in the
Temperature Control segment and intensifying competition may hamper
its growth in the coming years. The company's key competitors
include Visteon Corporation (NYSE: VC).
Thus, the shares of Standard Motor are maintaining a Zacks #3
Rank, which translates into a short-term Hold rating.
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