BetterTrades
(Best) ONXX, DRC, MVL (Worst) HURN, FWLT, WLL from Better Trades
February 24, 2009
After a day of massive sell-offs that saw the major indices drop more than 3% each, today’s trading session was influenced by a remark from Fed Chairman Ben Bernanke in which he told Congress that the recession would end this year. Although a contraction is inevitable for the next six months, by the end of the year, our nation’s economy will begin to expand.
Top 3 Stocks
ONXX – Onyx Pharmaceuticals Inc.
Following the lead of the markets today, Onyx Pharmaceuticals Inc. (ONXX) surged during today’s session, having posted a less-than-expected loss for the 4Q as an increase in sales of their cancer drug Nexavar helped beat analysts’ predictions. The report was released after the closing bell on Monday.
For the recent period, the company posted a loss of $30.2M, or $0.53 per share, versus a loss of $11.7M, or $0.21 per share from a year ago. Revenues, meanwhile, surged during the quarter, advancing from $26.1M to $49.7M, an increase of more than 90%. The key to higher sales was Nexavar, which is used for the treatment of liver cancer and advanced kidney cancer. Its sales increased more than 41% to $176.5M.
On average, analysts were looking for the drug maker to post a loss in earnings of $0.57 per share on overall revenues of $25.9M. Going into the final hour of trading, shares of ONXX were up more than 17%, adding $4.86 to trade at $32.91 per share. Over the past year, shares of Onyx have ranged between $21.66 and $45.69 per share.
DRC – Dresser-Rand Group Inc.
Among the largest global suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical and process industries, Dresser-Rand Group Inc. (DRC) announced late Monday evening that the company’s profits increased during the 4Q as overall revenues surged.
In their report, DRC confirmed that they posted earnings for the quarter of $77M, or $0.94 per share, in contrast to a profit of $43.8M, or $0.51 per share from a year ago, an increase in profits of nearly 76%. Total sales for the company advanced as well, climbing from $520.1M to $745.8M, an increase of more than 43%. In the meantime, analysts were looking for the parts and service provider to post earnings of $0.80 per share on $782.9M in sales.
With quarterly earnings coming in ahead of expectations, and yearly profits increasing nearly 88% year-over-year, shares of Dresser-Rand jumped more than 13% in today’s trading, adding $2.53 to trade at $21.36 per share. During the past 52-weeks, DRC has traded between $11.70 and $42.49 per share.
MVL – Marvel Entertainment Inc.
As one of the world's most prominent character-based entertainment companies, Marvel Entertainment Inc. (MVL) is focused on utilizing its character franchises in licensing, entertainment, publishing and toys. Before the opening bell Tuesday morning, the company announced that their 4Q results bettered forecasts on higher DVD sales from the movie “Iron Man.”
With an area of emphasis that include feature films, DVD/home video, consumer products, video games, action figures and role-playing toys, television and promotions, Marvel posted a profit of $63M, or $0.80 per share, versus a profit of $27.6M, or $0.35 per share from a year ago. Sales also came in higher than predicted, climbing from $109.3M a year ago to $224.3M, an increase in sales of more than 105%.
Analysts, within the industry, were looking for the entertainment company to record earnings of $0.70 per share on overall sales of $213.5M. Looking ahead, Marvel is looking for post 2009 yearly earnings between $1.00 and $1.35 per share on total annual sales between $415M and $460M. Analysts are looking for a yearly result of $1.19 per share on $448.2M in sales.
By late afternoon, shares of Marvel were up more than 15%, gaining $3.61 to trade at $27.53 per share. During the last year, shares of MVL have ranged between $23.28 and $38.50 per share.
Worst 3 Stocks
HURN – Huron Consulting Group Inc.
Posting a higher earnings report in which profits increased more than the previous year, Huron Consulting Group Inc. (HURN) viewed their stock take a hit in trading today as a forward-looking forecast deterred investors.
Working as an independent provider of financial and operational consulting services, Huron booked a profit of $11.8M, or $0.59 per share for the 4Q, up marginally from last year’s earnings of $11.5M, or $0.63 per share. Sales advanced during the quarter as well, from $135.9M to $164M, an increase of nearly 21%. On average, analysts were expecting earnings to come in at $0.61 per share on sales of $173.4M.
For the upcoming fiscal 2009, Huron is looking for post yearly earnings between $3.10 and $3.40 per share on total sales in the range of $730M to $770M. Meanwhile, analysts are anticipating annual profits of $3.49 per share on revenues of $784.2M. Nearing the close, shares of HURN were down $6.33, or 13.8%, to trade at $39.73 per share. HURN has ranged between $37.59 and $66.45 per share over the past year.
FWLT – Foster Wheeler AG
Providing construction and engineering services to the oil and gas, oil refining, chemical/petrochemical, pharmaceutical, environmental, power generation, and power plant operation and maintenance sectors worldwide, Foster Wheeler AG (FWLT) saw their shares slip in trading today, despite an increase in quarterly earnings.
For the 4Q, FWLT announced early Tuesday that the company booked a profit of $99.9M, or $0.75 per share, in contrast to last year’s earnings of $78.1M, or $0.54 per share, an increase in profits of nearly 28% year-over-year. If not for certain one-time charges, the company would have posted earnings of $137.2M, or $1.03 per share. Meanwhile, quarterly sales increased as well, up 12% from $1.47 last year to $1.64B.
Analysts, on average, were expecting the construction and engineering services firm to record quarterly earnings of $0.95 per share on sales of $1.78B. Coming up short on both accounts for earnings projections, shares of FWLT were trading at multi-month lows today, losing $3.16, or 16.5%, to trade at $16.02 per share. Foster Wheeler has traded as low as $13.86 and as high as $79.97 per share over the past 12 months.
>WLL – Whiting Petroleum Corp.
Lastly, an independent oil and gas company that acquires, exploits, develops and explores for crude oil, natural gas and natural gas liquids primarily in the Rocky Mountains and the Gulf Coast of the United States, Whiting Petroleum Corp. (WLL) confirmed Tuesday morning that the company posted a loss in their 4Q as impairment charges cut into the bottom-line.
Recording a loss of $3.04M, or $0.07 per share, that was in sharp contrast to last year’s results of a profit of $45.75M, or $1.08 per share. During the current period, WLL was hit with charges totaling more than $29M. Additionally, overall sales slipped as well, falling from $232.4M to $223.9M, a decrease in revenues of nearly 4%.
Another contributing factor to the company’s poor quarterly performance was an increase in costs and expenses, which advanced from $160.7M to $218.6M, more than a 36% jump. Moreover, analysts were anticipating that the oil and gas company would post a loss of $0.06 per share on overall revenues of $219.9M.
Heading into the closing bell, shares of WLL were down more than 4%, sliding $0.96 to trade at $22.11 per share. Today’s session saw Whiting shares establish a new 52-week low at $20.44 per share. Over the past year, WLL has traded as high as $112.42 per share.
2009 Better Trades Article
brought to you by
BRIAN MULLIN
