CHICAGO, April 29, 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: ExxonMobil Corp. (NYSE: XOM),
Chevron Corp. (NYSE: CVX), The Dow Chemical Company
(NYSE: DOW), Brinker International Inc (NYSE: EAT) and
BJ's Restaurants, Inc. (Nasdaq: BJRI).
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Here are highlights from Thursday's Analyst Blog:
ExxonMobil Soars on Oil Prices
U.S. energy behemoth ExxonMobil Corp.'s (NYSE: XOM) first
quarter earnings shot up more than 69% year over year (from
$6.3 billion to $10.7 billion),
driven by higher commodity price realizations, improved refinery
margins and solid chemical contributions.
The world's largest publicly traded oil company posted earnings
of $2.14 per share, beating the Zacks
Consensus Estimate of $2.05 and
substantially ahead of the year-earlier earnings of $1.33. Total revenue in the quarter increased
26.3% year over year to $114.0
billion, easily surpassing the Zacks Consensus Estimate of
$97.5 billion.
Outlook
ExxonMobil currently retains a Zacks #3 Rank (short-term 'Hold'
rating).
With the economic rebound showing signs of strengthening and oil
prices rallying, we expect integrated oil companies such as
ExxonMobil to continue to accelerate revenue and earnings growth
over the next few quarters. Apart from the economic recovery, the
company's recent results have also benefited from its operational
and production efficiency and contributions from growth
programs.
ExxonMobil – the largest U.S. oil firm by market value ahead of
Chevron Corp. (NYSE: CVX) – is the best-run integrated oil
company in the world given its track record of superior return on
capital employed. It has long been a core holding for investors
seeking a defensive name with continued dividend growth.
However, as access to new energy resources becomes more
difficult, ExxonMobil, like most of its peers, will face headwinds
to replace its reserve. Given its large base, achieving growth in
oil and natural gas production has been a challenge with the
company over the last many years. With the established oil
producing regions of Europe and
North America well beyond their
prime, the search for growth has pushed ExxonMobil into riskier
regions.
Dow Beats Consensus
The Dow Chemical Company (NYSE: DOW) earned 82 cents per share in the first quarter of 2011,
ahead of the Zacks Consensus Estimate of 67
cents per share as well as last year's 43 cents per share. However, including one-time
charges, the company earned 54 cents
per share compared with 41 cents per
share in the year-ago quarter.
Quarterly revenues jumped 20% year over year to $14.7 billion and were above the Zacks Consensus
Estimate of $13.8 billion. Volume
(8%) and pricing (12%) gains across all business segments and
geographical regions, particularly North
America and Europe, yielded
healthy revenue growth.
North American revenues grew 8.1% while that of Latin America shot up 13.7%. Demand increased
by 12.9% in Europe, Middle East and Africa, and 4.9% in Asia Pacific. Latin American volumes were up
1%. Volume in Asia Pacific
decreased 4% and in North America
decreased 2%.
A stronger top-line growth resulted in an increase of over 34%
in EBITDA (adjusted) to $2.4 billion.
EBITDA margin was up 300 basis points year over year. Dow's global
operating rate was 83%, flat year over year but up 2%
sequentially.
Brinker Tops Estimates
The leading casual dining restaurant company in the world,
Brinker International Inc (NYSE: EAT) reported third quarter
2011 adjusted earnings per share (EPS) of 47
cents, surpassing the Zacks Consensus Estimate of
45 cents as well as the prior-year
quarter earnings of 37 cents. The
upside in earnings was driven by continued margin expansion at
Chili's and top-line growth at Maggiano's.
On a GAAP basis, the owner of Chili's Grill & Bar and
Maggiano's Little Italy reported third quarter earnings of
45 cents per share, higher than
39 cents posted in the year-ago
quarter.
Outlook
Brinker reaffirmed its adjusted earnings guidance range of
$1.30 to $1.42 for fiscal 2011. The
Zacks Consensus Estimate for fiscal 2011 is $1.49. The company continues to expect full-year
revenues to decrease between 2% and 4% from the last year's
revenues of $2.86 billion. The
company projects comparable restaurant sales in a range of flat to
negative 2%.
The company plans to open 33 to 40 franchised restaurants in
2011, including 8 to 10 franchised restaurants under the Chili's
brand and 25 to 30 internationally.
Our Take
System-wide comparable restaurants sales remained sluggish in
the reported quarter, but same-restaurant sales at company-owned
restaurants improved. Moreover, Brinker is repositioning its
Chili's brand to offset its declining sales momentum and record
more sustainable and stable growth. Additionally, the company is
making efforts to expand its margins through disciplined cost
management and is also expected to benefit from capacity
contraction and the consequent lower unit capital
expenditure.
One of Brinker's competitors, BJ's Restaurants, Inc.
(Nasdaq: BJRI) reported first quarter 2011 adjusted earnings of
25 cents per share, above the Zacks
Consensus Estimate of 19 cents,
driven by strong comparable restaurant sales growth.
Brinker holds a Zacks #2 Rank, implying a short-term Buy rating
on the stock. We also reiterate our long-term Outperform
recommendation.
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