Kirby Corporation
This company hikes its first-quarter earnings guidance as demand for commodities shipping stays strong.
Kirby Corporation (KEX) operates a fleet inland tank barges and towing vessels transporting bulk liquid products, specifically petrochemicals and refined petroleum products, throughout the Mississippi River System and the Gulf Coast Intracoastal Waterway. Kirby also owns and operates four ocean-going barge and tug units transporting dry-bulk commodities in United States coastwise trade.
The company, a Zacks #1 Rank (Strong Buy), operated on all cylinders in 2007. On Jan 30, Kirby announced record fourth quarter and full year 2007 earnings.
For the fourth-quarter, the company reported $34.4 million, or 64 cents per share, compared with $23.4 million, or 44 cents per share, in 2006. The company initially gave a guidance range for the quarter of 57 cents to 62 cents per share and then, on Jan 14, said that the quarter would be better than even 62 cents a share.
Revenues were also a record, coming in at $307.9 million, or 22% higher than the fourth-quarter of 2006.
The company has routinely beaten the results of the year ago period.
'The record fourth quarter marked the 16th consecutive quarter that our earnings exceeded the same quarter of the previous year,' said Joe Pyne, Kirby's President and Chief Executive Officer.
The company cited strong demand in the marine transportation markets and an ability to keep pricing consistent for the great quarter and year.
Kirby continues to see strong demand in its business. On March 17, Kirby raised its earnings estimate for the first quarter and now expects it to exceed 66 cents per share, up from its prior guidance of 57 cents to 62 cents per share. This is substantially higher than the same period a year ago, when Kirby saw earnings of 46 cents per share.
The company said it is seeing stronger than anticipated demand for both the marine transportation and diesel engine services operations. KEX also said it continues to experience high equipment utilization, an upward trend in rates, and increased efficiencies from operating additional towboats.
The company expects to give second-quarter and full-year guidance when it announces its first quarter results on April 23.
Kirby has a P/E of 17.32 and a P/B of 3.63. Analysts estimate 2008 year-over-year growth at 16.28%. In 2007, the company's return on equity was an excellent 17.26%.
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