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(SKH) - Skilled Healthcare Group - rapidly aging domestic population applying pressure to the healthcare system

Shawn — Sat, 06 Sep 2008 01:40:06 +0000

Skilled Healthcare Group, Inc. (SKH) has been posting solid gains in 2008 as the company continues to benefit from strong underlying demand for its services. Analyst estimates have been rising, and the company’s share price recently set a new 52-week and all-time high.

Skilled Healthcare Group, Inc. provides integrated long-term healthcare services in the United States. Its nursing facilities provide such services as chemotherapy, dialysis and rehabilitation. The company has a market cap of $596 million and is headquartered in Foothill Ranch, California.

Industry Trend

With a rapidly aging domestic population applying pressure to the healthcare system, healthcare providers have seen a big up tick in demand for their services. This environmental shift was evident when Skilled Healthcare Group reported strong second-quarter earnings on Aug 5.

Revenue was up 19.3% from last year to $180.3 million. Net income increased to $8.9 million, a big jump from a loss of $4.1 million in the same quarter last year. This produced earnings of 24 cents per share, on target with analyst expectations.

Segment Growth

Revenues in Skilled Healthcare’s largest business segment, long-term care services, posted very impressive gains, with revenue climbing to $159 million, a 20.4% increase form the same period last year.

Guidance Raised

During the quarterly announcement, the company also raised its 2008 full-year guidance, and now expects revenue to fall between $730 and $740 million, and earnings per share to land between 98 cents and $1.03.

The analyst community is also bullish on the company, with the next-year estimate pegged at $1.13 per share, a 12.73% earnings growth projection.

Based upon the current-year estimate, this stock is trading in line with the overall market, carrying a forward P/E multiple of 16X.

The Chart

Shares of SKH have had a great year, climbing from a low of less than $10 to a recent high-water mark above $16, a new 52-week and all-time high. More recently, this stock has traded in a tight range just below the high. A macro-level trend line is fast approaching to provide additional support.

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(SKH) - Skilled Healthcare Group - rapidly aging domestic population applying pressure to the healthcare system

(SUNH) - Sun Healthcare Group - strong demand for healthcare services

Shawn — Thu, 04 Sep 2008 15:00:21 +0000

Sun Healthcare Group, Inc. (SUNH) reported another solid quarter in early August in which its income was up big from last year. Analysts have revised their estimates upward within the last 30 days, and shares have rallied accordingly, recently hitting a new 26-week high.

Sun Healthcare Group, Inc., through its subsidiaries, provides long-term, sub-acute specialty healthcare services to seniors in the United States. The company was founded in 1989, has a market cap. of $744 million and is headquartered in Irvine, California.

Industry Trend

As a large portion of our nations’s population ages and transition into their golden years, it has triggered strong demand for healthcare services. This has enabled company’s like Sun Healthcare to drives sales and grow profits. This dynamic was evident when the company reported strong second-quarter results on august 6.

Second-Quarter Results

Revenue was up 5.6% from last year to $454.2 million. Net income spiked to $11.2 million, up 44% from last year’s $7.7 million. This produced earnings of 25 cents per share, one penny ahead of analyst estimates of 24 cents per share.

Consistent Earnings

Sun Healthcare has been able to produce consistent earnings in a challenging environment, a testament to strong demand and operational efficiencies. Over the last four quarters, the company has surprised and beaten analyst estimates by an average of 1 penny, or 7.45%.

Analyst Estimates

After the solid quarter, analysts boosted their earnings projections. The current-year estimate now stands at 92 cents per share, up from 89 cents per share 30 days ago. The next-year estimate is bullish, projecting earnings growth of 23%, with the consensus estimate pegged at $1.13 per share.

Valuations

Based upon the current-year estimate, this stock has a forward P/E multiple of 18.5X, a premium to the overall market.

The Chart

Shares of SUNH have been rallying since the company reported its excellent quarterly results, advancing from just above $14 a high-water mark over $17 on Aug 11. Since then, this stock has traded mostly sideways, until recently pressing against an up trend and once again heading back to the high.

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(SUNH) - Sun Healthcare Group - strong demand for healthcare services

(ABT) - Abbott Laboratories - solid return on equityof 27%, which tops the industry average of -13%

Shawn — Thu, 04 Sep 2008 15:00:04 +0000

Abbott Laboratories (ABT), which is trading near a 52-week high, announced stellar results for the second quarter and boosted its full-year 2008 guidance in mid-July. Wall Street earnings forecasts have moved higher since. Full-year 2008 estimates of $3.27 per share advanced from $3.23 over the past 60 trading days. Year 2009 projections of $3.65 climbed from $3.60 over the same time frame.

Company Description

Abbott is a global, broad-based health care company that develops, manufactures and markets pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs more than 68,000 people and markets its products in more than 130 countries. The company is headquartered in north suburban Chicago.

Healthy Growth

In mid-July, the company posted stellar results for the second quarter and boosted its full-year 2008 guidance. Earnings per share of 84 cents outpaced the year-prior 69 cents and beat the consensus estimate by 8%.

“Abbott achieved another quarter of strong performance across our diverse mix of global businesses, with particularly strong results internationally,” said Miles D. White, chairman and chief executive officer, Abbott. “Based on our first-half results, as well as our outlook for the remainder of the year, we’re raising our 2008 forecast for both sales growth and earnings-per-share. We’re also confirming our expectation for continued double-digit earnings-per-share growth in 2009.”

The company hiked its earnings-per-share guidance range for the 2008 full-year from $3.20 - $3.25 to $3.24 - $3.28, excluding specified items.

Full-year 2008 Wall Street estimates of $3.27 per share advanced from $3.23 over the past 60 trading days. Year 2009 projections of $3.65 climbed from $3.60 over the same time frame.

Abbott Laboratories offers a solid return on equity (ROE) of 27%, which tops the industry average of -13%.

Continued Income

In early June, the company declared a quarterly dividend of 36 cents per share, noting that this was the 338th consecutive quarterly dividend paid out by Abbott since 1924. The dividend was paid out on August 15, 2008.

The dividend translates into a yield of 2.4%, which stands high above the yields offered by its peers as most companies within ABT’s industry group offer no dividend.

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(ABT) - Abbott Laboratories - solid return on equityof 27%, which tops the industry average of -13%

(AFAM) - Almost Family - exceptional growth from its visiting nurse segment, which posted a 66% increase in revenue

Shawn — Thu, 04 Sep 2008 15:00:02 +0000

Almost Family, Inc. (AFAM) continues to post strong results in this depressed economic environment. The company’s second-quarter results were far ahead of analyst expectations and its share price has been rallying in response to higher earnings estimates.

Almost Family, Inc. provides home health care services in various states throughout the United States. The company operates in two segments, visiting nurse and personal care. The company was founded in 1985, has a market cap. of $206 million and is headquartered in Louisville, Kentucky.

A Great Quarter

Almost Family’s share price has been on an intense rally for the last two months, and after the company reported record setting second-quarter results on August 6, it was obvious why.

Net services revenue increased 50% from last year to $48.7 million. Net income surged to $3.9 million, up from $2 million in the same period last year, a 95% gain. This produced earnings of 50 cents per share, blowing past analyst estimates of 38 cents per share. The company noted that it was able to achieve these impressive earnings results in spite of issuing an additional 2,512,500 shares.

Almost Family has continued to experience exceptional growth from its visiting nurse segment, which posted a 66% increase in revenue from last year to $38.9 million.

A History of Surprising

This was the fourth time in four quarters that AFAM has either matched or beaten analyst estimates, having done so by an average of 8 cents, or 22%.

Almost Family noted during its press conference that it had recently been added to the Russell 2000 Index and had been named one of Fortune Small Business’ 100 fastest-growing small public companies.

Analyst Estimates

Almost Family’s share price has been advancing in tandem with analyst earnings estimates. The current-year estimate now stands at $1.88 per share, up from $1.42 per share 90 days ago and up from $1.51 30 days ago. The next-year estimate is bullish, projecting earnings of $2.23 per share, a 19% jump from this year.

The Chart

As previously mentioned, shares of AFAM have been on a big rally since early June, climbing to the recent high above $41 from just below $23. More recently, shares have once again begun to advance and are now pressuring the 52-week and all-time high.

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(AFAM) - Almost Family - exceptional growth from its visiting nurse segment, which posted a 66% increase in revenue

(SUNH) - Sun Healthcare Group - strong demand for healthcare services

Shawn — Thu, 28 Aug 2008 22:40:06 +0000

Industry Trend

Second-Quarter Results

Consistent Earnings

Analyst Estimates

Valuations

Based upon the current-year estimate, this stock has a forward P/E multiple of 18.5X, a premium to the overall market.

The Chart

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(SUNH) - Sun Healthcare Group - strong demand for healthcare services

(ABT) - Abbott Laboratories - solid return on equityof 27%, which tops the industry average of -13%

Shawn — Thu, 21 Aug 2008 17:20:03 +0000

Healthy Growth

The company hiked its earnings-per-share guidance range for the 2008 full-year from $3.20 - $3.25 to $3.24 - $3.28, excluding specified items.

Full-year 2008 Wall Street estimates of $3.27 per share advanced from $3.23 over the past 60 trading days. Year 2009 projections of $3.65 climbed from $3.60 over the same time frame.

Abbott Laboratories offers a solid return on equity (ROE) of 27%, which tops the industry average of -13%.

Continued Income

The dividend translates into a yield of 2.4%, which stands high above the yields offered by its peers as most companies within ABT’s industry group offer no dividend.

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(ABT) - Abbott Laboratories - solid return on equityof 27%, which tops the industry average of -13%

(AFAM) - Almost Family - exceptional growth from its visiting nurse segment, which posted a 66% increase in revenue

Shawn — Thu, 21 Aug 2008 17:20:02 +0000

Almost Family’s share price has been on an intense rally for the last two months, and after the company reported record setting second-quarter results on August 6, it was obvious why.

Almost Family has continued to experience exceptional growth from its visiting nurse segment, which posted a 66% increase in revenue from last year to $38.9 million.

A History of Surprising

This was the fourth time in four quarters that AFAM has either matched or beaten analyst estimates, having done so by an average of 8 cents, or 22%.

Analyst Estimates

The Chart

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(AFAM) - Almost Family - exceptional growth from its visiting nurse segment, which posted a 66% increase in revenue

(HGR) - Hanger Orthopedic Group - Net income jumped ahead 57.2% from last year

Shawn — Wed, 20 Aug 2008 15:20:05 +0000

Hanger Orthopedic Group Inc. (HGR) has been posting steady gains since its stock price bottomed out in late April. The company is fresh off the heels of a great second quarter, and analysts have been boosting their earnings estimates in anticipation of robust earnings.

Hanger Orthopedic Group Inc. owns and operates orthotic and prosthetic patient-care centers in the United States. The company has a market cap. of $435 million and is headquartered in Bethesda, Maryland.

A Great Quarter

Shares of HGR have been on a nice rally over the last two weeks, assisted by the company’s excellent second-quarter results, reported on July 29. Sales were up 13% from the same period last year to $181.2 million. Net income jumped ahead 57.2% from last year to $8.0 million. This produced earnings of 25 cents per share, well ahead of analyst estimates of 20 cents per share.

Consistent Results

This is the fourth time in four quarters that Hanger has either beaten or matched analyst estimates, having done so by an average of 3 cents, or 20%.

Hanger reported strong growth from both if its primary segments, with the company’s largest segment in patient care posting a 6.7% increase in same-center sales. Hanger’s distribution segment, smaller by sales volume, posted a 23.5% increase in sales.

Earnings Guidance

After the solid quarter, Hanger confirmed its previous guidance for the rest of the fiscal year, but proceeded to boost its full-year revenue guidance to a range between $680 million and $690 million. Hanger also raised its earnings target to between 80 and 82 cents per share. Analysts have the next-year estimate pegged at 94 cents per share, a 13% earnings growth projection.

Valuations

Based upon the current-year earnings estimate, this is not a cheap stock, trading with a forward P/E multiple of 22X, a sharp premium to the overall market.

The Chart

Shares of HGR have been rallying since finding a bottom below $11 in late April. Since then this stock has advanced beyond the $18.50 mark, establishing a new 52-week and all-time high in the process.

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(HGR) - Hanger Orthopedic Group - Net income jumped ahead 57.2% from last year

(STJ) - St. Jude Medical - all 14 covering analysts boosting their current year estimates within just the last 7 days

Shawn — Thu, 24 Jul 2008 22:17:41 +0000

St. Jude Medical Inc (STJ) has a history of positive earnings surprises, upward estimate revisions and non cyclical-demand. The company’s second-quarter net income was up 20.65% from the same quarter last year, and its stock price has responded, recently advancing back to the 52-week high.

Company Description

St. Jude Medical, Inc. develops and produces medical devices used to diagnose and treat a variety of cardiac and neurological conditions. The company was founded in 1976, carries a market cap of $16.2 billion and is headquartered in St Paul, Minnesota.

Another Great Quarter

St. Jude Medical reported second-quarter results on July 16th that propelled its stock back to the 52-week high. Sales jumped 20% to $1.136 billion, up from $947 million in the same quarter last year. This produced earnings of 60 cents per share, 9% ahead of analyst expectations of 55 cents per share.

The bulk of the company’s sales come from its Cardiac Rhythm Management segment, which recorded $714 million in revenue, a 20% increase from last year.

Company Raises Guidance

After the solid quarter and strong performance in all of its business segments, St Jude went ahead and increased its earnings guidance for 2008, saying it now expects to earn between $2.28 and $2.33 per share, up from the previous range $2.15 to $2.20 per share.

Analyst Estimates Are Up

The analyst community agrees, with all 14 covering analysts boosting their current year estimates within just the last 7 days. The full-year consensus estimate now stands at $2.31 per share.

A History of Surprising

This company has a history of surprising and beating analyst estimates, having done so over the last four quarters by an average of 4 cents, or 7%.

Favorable Industry Comparisons

St. Jude looks attractive when compared to it’s industry competition. It’s ROE of 24.8% is well above the industry average of 15.6%. Also, while it’s peers are leveraged with an average debt-to-equity multiple of 10.4x, St. Jude has a much more conservative debt multiple of just .06x.

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(STJ) - St. Jude Medical - all 14 covering analysts boosting their current year estimates within just the last 7 days

(ABT) - Abbott Laboratories - dividend yield of 2.5% - most companies within its industry group offer no dividend

Shawn — Thu, 24 Jul 2008 22:00:07 +0000

Abbott Laboratories (ABT) recently released stellar results for the second quarter and hiked its full-year 2008 guidance. Nearly all covering analysts responded by increasing their full-year estimates. The company offers ROE of 28%, above the industry average of 27%. In early June, Abbot declared a quarterly dividend of 36 cents per share. ABT’s dividend yield of 2.5% stands high above the yields offered by its peers as most companies within its industry group offer no dividend.

Company Description

Healthy Growth

In mid-July, the company posted stellar results for the second quarter and hiked its full-year 2008 guidance. Earnings per share of 84 cents outpaced the year-prior 69 cents and beat the consensus estimate by 8%.

The company hiked its earnings-per-share guidance range for the 2008 full-year from $3.20 - $3.25 to $3.24 - $3.28, excluding specified items. Twelve out of 14 covering analysts have the full-year forecasts pegged at $3.26 per share, compared to last month’s $3.23. Three of those analysts bumped estimates up to $3.27 over the past week.

Abbott Laboratories offers a solid return on equity (ROE) of 28%, which tops the industry average of 27%.

Continued Income

In early June, the company declared a quarterly dividend of 36 cents per share, noting that this was the 338th consecutive quarterly dividend paid out by Abbott since 1924. The company added that the he cash dividend is payable August 15, 2008, to shareholders of record at the close of business on July 15, 2008.

The dividend translates into a yield of 2.5%, which stands high above the yields offered by its peers as most companies within its industry group offer no dividend.

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(ABT) - Abbott Laboratories - dividend yield of 2.5% - most companies within its industry group offer no dividend

(MA) - Mastercard Inc - ROE of 30%, squashing the industry average of 9%

Shawn — Fri, 20 Jun 2008 21:10:33 +0000

Mastercard Incorporated (MA), a Zacks #1 (Strong Buy) company, continues to reward investors with both growth and income. The company posted an outstanding first quarter in late April and boasts a ROE of 30%, squashing the industry average of 9%. Analysts see more growth ahead as evidenced by a hike in 2008 earnings forecasts of 15% over the past three months. The company’s dividend yield of 0.2% is a competitive one within its industry as MA operates in a space that offers very little in terms of dividend income.

Company Description

As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes more than 18 billion transactions each year, and provides analysis as well as consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard(R), Maestro(R) and Cirrus(R), MasterCard serves consumers and businesses in more than 210 countries and territories.

Recent Events

The company recently said that it would temporarily repeal fees that were charged for cross-border transactions in Europe. This was done in order to abide by European Commission’s December 19, 2007 decision and avoid possible fines since, according to the European Union, the cross-border transactions fees were in violation of EU rules on fair competition.

President of Mastercard Europe Javier Perez commented, “We said in December that although we strongly disagree with the European Commission’s decision, we would comply with it. At the same time, we have solid legal arguments supporting our appeal of the decision to the European Court of First Instance, and we will continue to vigorously pursue that appeal. MasterCard’s policy is to comply with all applicable decisions and regulations, but to challenge them through appropriate channels when we believe that is necessary.”

In late May, Reuters reported that (MA) announced its expectation of double-digit net revenue growth for 2008. Over the longer term, the company is shooting for average annual net income growth of 20% to 30% and average annual net revenue growth of 12 % to 15%.

Higher Estimates

Analysts are also growth for the credit and debt card processor. Five out of 18 covering analysts upped full-year 2008 earnings forecasts to $8.68 per share from last month’s $8.54. Three months ago, projections stood at $7.54. The most accurate current estimate is most bullish at $8.87 per share.

Strong Growth

The Zacks #1 (Strong Buy) company’s first-quarter report noted that profit more than doubled thanks to more customers abroad using the company’s credit and debit cards. Net revenue totaled $1.2 billion, a 29.2% increase over the year-prior result. Cardholders in U.S. also increased their use of the company’s cards but at a more moderate pace.

Industry Comparisons

Mastercard’s earnings per share are expected to grow by 21% over the next 3 - 5 years, topping the industry average of 15%. The company’s ROE of 30%, squashes the industry average of 9%. Mastercard’s net profit margin of 30% crushes the industry’s average of 4%.

Income

The company is yielding 0.2% as it operates in a space that is not known as a dividend paying industry.

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(MA) - Mastercard Inc - ROE of 30%, squashing the industry average of 9%