We once again take a look at the morning's earnings reports, and issue a few select comments on those companies with notable positive or negative earnings surprises:
Recently publicly traded alternative asset manager The Blackstone Group (BX) came out with a negative earnings surprise in its latest quarterly report, down 36.36% on reported earnings of 21 cents per share. The consensus estimate was 33 cents. In early trading Monday, shares of BX are down roughly 7%.
According to the Zacks Price Response Indicator (PRI), we expect a 0.23% price decrease in the 10 days following the EPS earnings report. The company's alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including corporate and mergers and acquisitions advisory; restructuring and reorganization advisory and fund placement services.
Embraer Flies High
Top Brazilian airplane manufacturer Embraer Air (ERJ) flew in with a nearly 100% positive earnings surprise on sales growth of just under 60% and income growth at 217.4%. The quarter's reported US$1.05 per share easily topped the expected 53-cent consensus. Monday trading shows the plane-maker up a percentage point in the morning hours.
The company ranks among the four largest commercial aircraft manufacturers in the world with a well-established family of regional airliners, ranging from the 30-seat EMB 120 Brasilia turboprop to the 37-seat ERJ 135, the new 44-seat ERJ 140 and the 50-seat ERJ 145 jetliners. In addition, the company has launched a new family of jetliners - the ERJ 170, the ERJ 190-100 and ERJ 190-200.
Earnings Miss for UTSI
A negative earnings surprise hit UTStarcom (UTSI), the California-based wireless communications company that serves many markets in the Far East. Year-over-year, EPS results are down nine-and-a-half percent, resulting in a quarterly earning surprise of -31.43. Sales growth has been reported down eight-and-a-quarter percent, and the Zacks PRI expects a -2.31% price decrease in the 10 days following the EPS earnings report.
Utstarcom's suite of network access systems, optical transmission products and subscriber terminal products allows service providers to offer efficient and scalable voice, data and Internet access services. Service providers can easily integrate the standards-based systems into their existing networks and deploy the systems in new broadband, Internet Protocol and wireless network rollouts.
Hewitt Proves Resourceful
Human resources provider Hewitt Associates (HEW) posted a healthy 48.57% positive surprise this morning, on sales growth a notch north of five-and-a-half percent, and income growth at 138-and-a-half percent. The company handily beat the consensus 35 cents EPS expected, and enjoys slightly higher trading by mid-morning.
Chicago-area-based Hewitt Associates is a leading global provider of human resources outsourcing and consulting services. Its reported earnings of 52 cents per share which is an increase of 147.62% compared to last year's earnings of 21 cents per share.
Tyson Down a Tick
Tyson Foods, Inc. (TSN) the world's largest fully-integrated producer, processor and marketer of chicken and poultry-based food products, reported a -10% EPS surprise on slightly upward sales growth of roughly six-and-a-third percent. Again, using the Zacks PRI, we expect a 0.91% price increase in the 10 days following the EPS earnings report.
Read the full analyst report on ERJ.
Read the full analyst report on UTSI.
Read the full analyst report on HEW.
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