For Immediate Release
Chicago, IL – May 01, 2014– Zacks Equity Research highlights Hawaiian Holdings, Inc. (HA-Free Report) as the Bull of the Day and Titan International Inc. (TWI-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on DIRECTV Group Inc. (DTV-Free Report), DigitalGlobe, Inc. (DGI-Free Report) and RigNet, Inc. (RNET-Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Hawaiian Holdings, Inc. (HA-Free Report), the parent of Hawaiian Airlines, is seeing strong levels of demand. This Zacks Rank #1 (Strong Buy) is expected to see double digit earning growth in 2014 as consumers spend more money on travel.
Hawaiian Holdings is the largest and longest-serving airlines in Hawaii with 85 years of service. It flies nonstop to 11 U.S. gateway cities as well as internationally to Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti.
It also operates about 160 jet flights internally around the Hawaiian Islands.
On Apr 22, Hawaiian reported its first quarter results and beat the Zacks Consensus by 9 cents. Earnings were a loss of $0.02 compared to the Zacks Consensus of a loss of $0.11.
Hawaiian wasn't as impacted by weather delays as other airlines that operate more flights in the Midwest and East coast. It ranked number one nationally for on-time performance in both January and February.
The company has been expanding service. In the quarter, it added 2 new A330-200 aircraft.
Bear of the Day:
The struggles continue for industrial tire-maker Titan International Inc. (TWI-Free Report). This Zacks Rank #5 (Strong Sell) recently withdrew 2014 guidance after a difficult first quarter which was impacted by the brutal North American winter.
Titan International supplies wheels, tires and assemblies for off-highway equipment used in agriculture and earthmoving/construction.
When agriculture and mining was booming, tire sales were too. In 2011, the farmers took home record income and Titan's earnings jumped 253%.
But excess inventory that has been dropped into the aftermarket from the mining industries has impacted pricing.
Titan's current outlook for mining tires continues to be negative. On Apr 24, in its first quarter press release, the company said the price of tires continued to drop and it saw further drops in the foreseeable future.
In agriculture tires, which is its larger segment, the aftermarket and OEM farm business declined in the first quarter and the OE construction business was also below the company's forecast.
In the first quarter, total sales fell 6.8% to $538.9 million from $578.4 million a year ago. Gross profit also fell to 10.1% of net sales compared to 16.7% in the first quarter of 2013.
3 Telecom Stocks Calling for an Earnings Beat
The telecommunications industry is identified as a major driver of global economic recovery. Robust growth in high-speed mobile Internet traffic, especially for wireless data and video, has radically altered the industry into the most evolving, inventive, and keenly contested space. Moreover, the advent of wireless broadband technology has opened up several service areas with substantial opportunities.
The GSM Association’s research wing, GMSA Intelligence, recently predicted the establishment of over 1 billion LTE global connections by 2017. Currently, there are approximately 200 million LTE links worldwide.
With the first-quarter results underway, we remain optimistic about some earnings surprises in the Telecommunication space.
Why Telecom is an Attractive Bet?
Currently, the U.S. Telecommunications industry is evolving around 5 broad factors. These include the growing popularity of wireless, which is gradually becoming the future of the industry, and the consequent popularity of spectrum. High-speed fiber-based network is projected to expand more aggressively, especially for video/TV offerings.
In addition, consolidation within the industry will continue mainly due to shortage of airwaves and attainment of economies of scale. Innovative products are likely to be launched in areas of m-Commerce, virtualization and cloud-based technology, high-speed metro Ethernet, to name a few. Apart from these, there still remains ample scope for expansion in the U.S. According to the Federal Communications Commission, nearly a fifth of rural American households lack broadband access.
In such a scenario, it might be a good idea to bet on a handful of telecom stocks that are poised to beat earnings estimates this quarter. An earnings surprise should help these stocks outperform in the near term.
How to Find a Top Pick
With the existence of a number of industry players, finding the right stocks that have the potential to beat earnings estimates could appear to be a difficult task, but our proprietary methodology makes it fairly simple for you. You could narrow down the list of choices by looking at stocks that have the combination of a favorable Zacks Rank –Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) – and a positive Earnings ESP.
Earnings ESP is our proprietary methodology for determining stocks having the best chance to surprise with their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination, the chance of positive earnings surprise is as high as 70%.
For investors seeking to benefit by applying this strategy to their portfolios, here are three telecom stocks that have the right combination of elements to post an earnings beat this quarter:
DIRECTV Group Inc. (DTV-Free Report): DIRECTV provides advanced communication services and develops a broad range of entertainment, information and communication services for home and business use, including video, data, voice, multimedia and Internet services.
The Zacks Consensus Estimates for first-quarter 2014 is pegged at $1.49, representing robust growth over the year-ago quarter. The company registered an average earnings surprise of 9.02% over the trailing 12 months. DIRECTV presently carries a Zacks Rank #3 and has an earnings ESP of +1.34%.
--The company is set to report its first-quarter 2014 results on May 6, before the opening bell.
DigitalGlobe, Inc. (DGI-Free Report): DigitalGlobe, Inc. is a global provider of commercial high-resolution earth imagery products and services. The company's products include DigitalGlobe System, QuickBird satellite, ImageAtlas and GlobeXplorer.
The company delivered an average earnings surprise of 125.75% over the past 12 months. DigitalGlobe has an Earnings ESP of +314.29% and retains a Zacks Rank #3.
--The company is slated to release its first-quarter 2014 results on May 1, after market closes.
RigNet, Inc. (RNET-Free Report): RigNet, Inc is engaged in providing data network infrastructure serving the remote communications needs of the oil and gas industry. The company delivers voice, data, video and other value-added services such as real-time management services through an Internet Protocol/Multiprotocol Label Switching, or IP/MPLS, global network.
Currently, the Zacks Consensus Estimate for the company’s first-quarter 2014 is pegged at 27 cents, with growth expectation of 22.7% from the prior-year quarter. The company boasts an average earnings surprise of 13.27% over the trailing 12 months. RigNet currently holds a Zacks Rank #3 and has an earnings ESP of +11.11%.
--The company is slated to report its first-quarter 2014 financial results on May 12, after market closes.
Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Click here to subscribe to this free newsletter today.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; 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.
Get the full Report on HA - FREE
Get the full Report on TWI - FREE
Get the full Report on DTV - FREE
Get the full Report on DGI - FREE
Get the full Report on RNET - FREE
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
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.