Investing For Growth
Investing For Growth
(FOOL GLOBAL WIRE)
LEXINGTON, Ky. (July 12): Telecommunications equipment maker Tellabs <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:TLAB)") else Response.Write("(NASDAQ:TLAB)") end if %> posted better-than-expected earnings last night, and it expects its second-half results to outdo the first half, despite the acquisition dilution which showed up in this quarter's earnings release.
Tellabs posted second-quarter earnings of $0.42 per share versus $0.30 in the year-ago period. After taking out a one-time acquisition charge, the company lost $0.20 for the quarter, which probably explains the stock's dip today. But in terms of before-charge earnings, Tellabs beat the First Call consensus estimates of $0.38 by 10.5%, a good performance by any account.
As if to reinforce that point, Alex. Brown said it raised earnings estimates on Tellabs for 1996 to $1.70 per share from $1.65, and for 1997 to $2.10 per share from $2.00. The brokerage said it kept the company at a "strong buy" rating.
In another round of analyst woes for Hewlett-Packard <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:HWP)") else Response.Write("(NYSE:HWP)") end if %>, just about everyone who didn't cut estimates on it yesterday did so today. For example, Soundview Financial analyst Russ Crabs reduced the earnings estimates on HWP to $5.10 per share from $5.51 for 1996, and to $5.78 from $6.55 for 1997. He kept the rating, though, at a "near- and long-term buy."
Caught in the down-draft in Hewlett-Packard yesterday, SCI Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:SCIS)") else Response.Write("(NASDAQ:SCIS)") end if %> tried to distance itself from HWP's exit from the disk-drive business. SCI Systems' management claims that component sales and profits the company derived from Hewlett-Packard were minimal and that SCI Systems expects no significant inventory adjustments will be required.
The new IFG top ten list will be posted this evening, but there's only one material change in the stocks on the new list. Checkpoint Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CKP)") else Response.Write("(NYSE:CKP)") end if %> has slipped out of the top ten and the new stock making it into the group is apparel maker Nautica Enterprises <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:NAUT)") else Response.Write("(NASDAQ:NAUT)") end if %>.
And in Relative Strength model news, the quarterly model is now up 14.03% for 1996 and the monthly model is up 17.59%, versus a gain in the S&P 500 for the year of less than 5%. For those of you who want a refresher on the Relative Strength approach, today's Fribble, "A Relative Strength Update," outlines the method we use for our online models.
Enjoy the weekend, Fool.
Transmitted: 7/12/96 | ||||||||
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