Join        Login             Stock Quote

Two Good Earnings Reports - Jacobs Engineering (JEC) and Millicom International Cellular (MICC)

 April 23, 2008 12:36 AM

Two very solid reports this mornings, one from a name in the portfolio, and one we recently sold out of due to a poor chart.


Jacobs Engineering (JEC)posted 45% growth in earnings, up to $0.80 (vs expectation of $0.77) on revenue growth of 27% which was in line with expectations. Backlog, one of my favorite measures in this sector, increased another $5.5 Billion or 51% year over year, to a $16.2 Billion level. This equates to over a year and a half of business. Guidance was increased a bit from $2.95-$3.25 to $3.00-$3.30, compared to analysts $3.16. This is not the cheapest of the infrastructure stocks, but a very reliable company.


Millicom International Cellular (MICC) also posted very good results and the stock is up 7% in premarket. I had sold the last of this position a few weeks ago (Apr 8: Bookkeeping: Closing Million International Cellular), since like Google, it was acting badly in a recovering market - but like Google the chart was a bad tell. On the bright side it indicates the fundamental work on this name was good, when even stocks we sell off are performing well.
  • Emerging markets telecom firm Millicom International (MICC) posted first-quarter core earnings in line with expectations on Tuesday and added 2.8 million new subscribers in the period, boosting its shares.
  • "Millicom recorded the second best quarter in its history in terms of net subscriber additions, adding 2.8 million in the quarter, following the exceptional final quarter of 2007," its Chief Executive Marc Beuls said in a statement.
  • The company added 3.4 million subscribers in the fourth quarter of 2007 and the increase in the first three months of the year brought the total number of subscribers to 26.2 million at the end of March, up 59 percent from a year earlier.
  • "Subscriber growth is really impressive and sales in Africa have picked up speed," said Bengt Molleryd, analyst at Handelsbanken.
  • The biggest growth in subscribers in the first quarter came in Honduras, Ghana and Tanzania, Millicom said.
  • The company, which operates in 16 countries in Latin America, Africa and Asia, plans to invest over $1a billion this year.
  • Millicom said, however, it would see a gradual decline in average revenues per user (ARPU) as it continues to target customers with lower disposable income. ARPU was $12.7 in the first quarter against $13.9 in the preceding three months.
  • "ARPU is a bit worrying, but it is a natural process that it will fall and I think that they can compensate for it as they continue to grow," said Urban Ekelund, analyst at Redeye. Millicom said that although ARPU would fall, higher volumes will bring economies of scale, helping EBITDA margins.
Long Jacobs Engineering in fund and personal account

iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageMBIA Inc. (MBI) : BTI's $12 a Tough Task

MBIA Inc. (NYSE:MBI) is doing well on a day stocks are struggling The guarantee insurance company is the read on...

article imageUrban Outfitters, Inc. (URBN) Q2 Earnings Preview: A Snug Fit

Urban Outfitters, Inc. (NASDAQ:URBN) will hold a webcast to discuss its second quarter of fiscal-year 2015 read on...

article imageEstee Lauder Companies Inc. (EL) Q4 Earnings Preview: Options Player Betting On EL’s EPS Looking Pretty

Estee Lauder Companies Inc. (NYSE:EL) will release fiscal 2014 fourth quarter and full year financial read on...

article imageHerbalife Ltd. (HLF): 3 Reasons To Pay Attention to Recent Insider Buying

Well, well, well… it looks as if boardroom buyers viewed the recent selloff as an opportunity to buy. read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.