For Immediate Release
Chicago, IL – May 7, 2010 – Zacks.com Analyst Blog features: Transocean, Inc. (RIG), BP Plc (BP), Frontier Communications (FTR), Verizon Communications (VZ) and The Hain Celestial Group, Inc. (HAIN).
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Here are highlights from Thursday’s Analyst Blog:
RIG Tops, Battles Horizon Disaster
Transocean, Inc. (RIG) — the world’s largest offshore driller — reported robust first quarter 2010 results, helped by contributions from newbuild operations. Earnings per share, excluding certain charges, came in at $2.22, well above the Zacks Consensus Estimate of $2.09.
However, Transocean’s earnings beat was overshadowed by the announcement that it will lose more than $500 million in revenue, and its finances will be hampered by hefty fees from a growing pile of lawsuits, as the company gets entangled in the huge oil spill accident in the Gulf of Mexico, the Deepwater Horizon.
In its quarterly filing with the U.S. Securities and Exchange Commission, the Geneva-based company warned investors regarding the risks associated with the Horizon rig disaster, including legal costs, government investigations and lost revenue.
As a reminder, on Apr 20, Transocean’s ultra-deepwater Horizon drilling platform, contracted to British major BP Plc (BP), sank following a fire and explosion while operating in the U.S. Gulf of Mexico off Louisiana ‘s coast. The incident killed 11 workers and caused one of the worst oil spills in U.S. history.
Frontier Beats by a Penny
Frontier Communications (FTR) reported first quarter results with adjusted (excluding acquisition and integration costs) earnings per share of 16 cents, beating the Zacks Consensus Estimate of 15 cents. The results also represent an improvement from 12 cents a year-ago.
The carrier incurred acquisition and integration costs of $10.4 million in the quarter in connection with its impending acquisition of Verizon Communications’ (VZ) regional wireline operations. Net income leapt 17% year-over-year to $42.6 million (or 14 cents a share) helped by a 10% drop in operating expenses.
Hain Celestial Misses by a Penny
The Hain Celestial Group, Inc. (HAIN), which distributes, markets and sells various natural and organic foods as well as personal care products, recently, posted third-quarter 2010 results that fell short of the Zacks expectations.
The quarterly earnings of 28 cents missed the Zacks Consensus Estimate by a penny, and fell 9.7% from 31 cents delivered in the prior-year quarter. On a reported basis, including one-time items, earnings came in at 6 cents a share compared to a loss of $1.01 posted in the year-ago quarter.
Revenue for the quarter tumbled 5.3% to $222.1 million from $234.6 million delivered in the prior-year quarter. The quarterly revenue was hurt by inventory de-stocking by two major distributors and the reduction in the supply of fresh sandwiches to Marks and Spencer in the United Kingdom, but was favorably impacted by foreign currency movements.
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