Join        Login             Stock Quote

Two Stocks To See Opposite Direction Of Movement On Wednesday -04/04/2012

 April 04, 2012 11:04 AM

Two shares are set to open on an opposite direction on Wednesday. While Mitcham Industries (Nasdaq: MIND) shares are likely to test 52-week high after the impressive fourth quarter earnings results, Williams Partners LP's (NYSE: WPZ) stock is likely to see downside pressure after announcing an underwritten public offering.

Mitcham industries reported that its fourth quarter net income jumped to $10.2 million or 77 cents a share from $1.8 million or 17 cents a share in the year-ago quarter. Similarly, net revenues climbed 88 percent to $37.0 million from $19.7 million in the previous quarter. Revenues were driven by an 87 percent jump in equipment leasing to $23.7 million from $12.7 million in the year earlier quarter.

[Related -Dividend Roundup: CNI, BBT, WPZ, NSC, AMTD, MMP]

Both earnings and revenues were way ahead of Street analysts' estimations of 57 cents a share on revenues of $31.07 million. In the third quarter, the company's earnings were significantly higher than Street consensus. While Mitcham delivered 52 cents a share, analysts were expecting 22 cents a share.

More than the earnings, the company could realize major increases in price realization as evidenced by gross margins jumping eleven percentage points to 57 percent from 46 percent.

Interestingly, analysts' have raised their EPS estimate on Mitcham to 78 cents a share for the first quarter from 69 cents a share within two months. Also, no analyst recommends the stock as a Sell. All analysts have a Buy or Hold rating on the company's shares.

[Related -Fear Has Now Trumped Fundamentals]

For the three brokers covering MIND, the highest price target is $36.00, and lowest target is $25.00. Their mean and median price target is $29.67 and $28.00 respectively. For the 52-week period, the stock touched a high of $26.76 and a low of $9.52. The yearly high price is 10.9 percent lower than analysts' mean price target and 4.6 percent lower than median target.

Williams Partners, Wednesday could be a tough day. The trend was already visible when its stock witnessed  $2.04 or 3.6 percent fall to finish the Tuesday's extended hours of trading at $54.26. This follows after the company announced a public offering  of 9 million to fund its $2.5 billion acquisition of a Cairn Energy subsidiary.

Last month, the company disclosed that it was acquiring Cairn Energy's pipeline infrastructure to extend its coverage in the Marcellus Shale region. Williams Partners estimates that the facility could offer natural gas worth 300 trillion cubic feet within 35 mile radius of the gathering system.

Normally, whenever a company announces a public offering or secondary offering, shares of the company tend to fall for two primary reasons. One is that it could dilute existing share value and more stock will be available thereby reducing demand.

For the 52-week period, the stock reached a high of $65.39 and a low of $45.39.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageBogle Says Indexing Destined To Win The Battle Of The Quants

Vanguard founder John Bogle gave a powerful speech last month at the Q Group’s Spring Seminar that lays out read on...

article imageVMAX and VMIN Poised to Be Most Important VIX ETP Launch in Years

REX Shares is launching two new VIX exchange-traded products on Tuesday in what is likely to be the most read on...

article imageThe April 29 Gold Triangle Breakout Update

If you’re just watching stocks, you may be missing this powerful Triangle Breakout surge in read on...

article imageSell In May, But It Is A Presidential Election Year

With May just around the corner, articles covering the "Sell in May' phenomenon are not in short supply and read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

The 12 'Highest Quality' Stocks
More Articles on: Oils/Energy

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.