BloggingStocks

Eaton (ETN) names new Automotive CEO

Brent Archer — 2008-06-26T14:48:00+00:00

Filed under: Management, Options, Technical Analysis, Eaton Corp (ETN)

Eaton (NYSE: ETN) shares are falling today after the company announced this morning that it has named Joseph P. Palchak its new Automotive Group Chief Executive Officer. ETN shares are trading lower today with most other auto component companies as a weak first-quarter GDP reading has investors worried about the fragile state of the economy. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on ETN.

After hitting a one-year high of $104.12 in July, the stock hit a one-year low of $66.27 in January. This morning, ETN opened at $87.94. So far today the stock has hit a low of $84.78 and a high of $87.94. As of 11:40, ETN is trading at $84.88, down $3.67 (-4.2%). The chart for ETN looks bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider an August bear-call credit spread above the $100 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 6.4% return in seven weeks as long as ETN is below $100 at August expiration. Eaton would have to rise by more than 17% before we would start to lose money. Learn more about this type of trade here.

ETN hasn't been above $100 since October and has shown resistance around $97 recently. This trade could be risky if the company's earnings (due out in mid-July) are a positive surprise, but even if that happens, this position could be protected by resistance ETN might find around $97, where it topped out over the past month.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in JMP or MS.

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Analyst upgrades: WBS, ETN and MVSN

Eric Buscemi — 2008-06-09T12:12:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Eaton Corp (ETN)

MOST NOTEWORTHY: Webster Financial, Eaton and Macrovision were today's noteworthy upgrades:

Keefe Bruyette upgraded shares of Webster Financial (NYSE: WBS) to Outperform from Market Perform on valuation as they feel the company is adequately capitalized and in a position to withstand the weakening credit markets.
JP Morgan upgraded Eaton (NYSE: ETN) to Overweight from Neutral citing bullish management comments at its conference last week.
Piper upgraded Macrovision (NASDAQ: MVSN) to Buy from Neutral citing the closure of the Gemstar deal.

OTHER UPGRADES:

Lehman upgraded U.S. stocks to Overweight from Underweight.
Goldman added Hess Corp (NYSE: HES) and Mosaic (NYSE: MOS) to its Conviction Buy List.
Novo Nordisk (NYSE: NVO) was raised at HSBC to Neutral from Underweight.
Jefferies upgraded ASM International (NASDAQ: ASMI) to Hold from Underperform.

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Kenexa Corporation (KNXA): Share price cycles in bullish 'flag'

Larry Schutts — 2008-05-21T13:02:00+00:00

Filed under: Earnings reports, ConAgra Foods (CAG), Wachovia Corp (WB), Technical Analysis, Eaton Corp (ETN), Stocks to Buy

Kenexa Corporation (NASDAQ: KNXA) provides software, services and proprietary content that enable organizations to find and retain employees. The company's web-based applications assist clients in successfully addressing such issues as recruitment, skills testing and tracking of employee development. The firm also conducts clients' recruitment and hiring processes for them. Kenexa sells its software products and services to some 4,000 firms, primarily on a subscription basis. The company client list includes ConAgra Foods (NYSE: CAG), Eaton Corporation (NYSE: ETN) and Wachovia Corporation (NYSE: WB).

Kenexa pleased investors last week, when it reported Q1 EPS of 31 cents and revenues of $48.2 million. Analysts had been looking for 23 cents and $48.8 million. The CEO noted that Q1 saw a record number of new preferred partner customers sign with the firm. Management also guided Q2 EPS to 34-35 cents (34 cent consensus), Q2 revenues to $56-$57 million ($53.73M consensus), FY08 EPS to $1.47-$1.50 ($1.39 consensus) and FY08 revenues to $230-$235 million ($221.45M consensus).

The KNXA share price popped on the news and has since been defining a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with three "strong buys", six "buys", ten "holds" and two "underperforms". Analysts expect a 20% growth rate, through the next year. The KNXA Price to Sales ratio (2.38), Price to Book ratio (1.68), Price to Cash Flow ratio (14.01), Price to Free Cash Flow ratio (22.01), Sales Growth rate (14.22%), EPS Growth rate (63.16%) and Net Profit Margin (12.57%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $16.07 and $42.44. A stop-loss of $16.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Cramer on BloggingStocks: Oil's not the widespread tax it used to be

Jim Cramer — 2008-05-19T09:22:00+00:00

Filed under: General Electric (GE), Exxon Mobil (XOM), Market matters, Halliburton (HAL), Schlumberger Limited (SLB), Alcoa Inc (AA), Archer-Daniels-Midland (ADM), Bank of America (BAC), Boeing Co (BA), Chesapeake Energy (CHK), Chevron Corp (CVX), duPont(E.I.)deNemours (DD), Office Depot (ODP), Deere and Co (DE), Honeywell Intl (HON), United Technologies (UTX), Eaton Corp (ETN), Anadarko Petroleum (APC), Oil, Stocks to Buy, Burlington Northern Santa Fe (BNI), Norfolk Southern Corp. (NSC), Union Pacific Corporation (UNP), Cramer on BloggingStocks, Potash Corp. of Saskatchewan (POT)

TheStreet.com's Jim Cramer says lots of companies now thrive with crude up here.

Oil's not a tax on everything -- it's a tax on the consumer. That's what I come down to when I see the charts this weekend and ponder what's happening in so much of industrial America.

Company after company that I examine -- the new techs, as I call them -- actually benefit from higher oil prices. Or they can pass them on with ease, because of the worldwide demand being so strong.

Take all of the companies involved with making a Boeing (NYSE: BA) (Cramer's Take): Boeing itself, Alcoa (NYSE: AA) (Cramer's Take), Honeywell (NYSE: HON) (Cramer's Take) and Precision Castparts (NYSE: PCP) (Cramer's Take) being good examples. Each of these is necessary because the new Dreamliner burns lots less fuel, and with fuel the biggest airline cost, it stands to reason that higher energy prices make the plane more desirable even at a higher price point.

Or how about all of the companies involved with process and flow control and efficient motors: Parker-Hannifin (NYSE: PH) (Cramer's Take), Emerson (NYSE: EMR) (Cramer's Take), Eaton (NYSE: ETN) (Cramer's Take) and Flowserve (NYSE: FLS) (Cramer's Take). Those work higher with higher energy prices. CSX (NYSE: CSX) (Cramer's Take), Burlington Northern (NYSE: BNI) (Cramer's Take), Kansas City Southern (NYSE: KSU) (Cramer's Take), Union Pacific (NYSE: UNP) (Cramer's Take) and Norfolk Southern (NYSE: NSC) (Cramer's Take) are smaller energy users than trucks, and they ship plenty of ethanol and fertilizer.

Of course everything farming: Deere (NYSE: DE) (Cramer's Take), Monsanto (NYSE: MON) (Cramer's Take), Du Pont (NYSE: DD) (Cramer's Take), AGCO (NYSE: AG) (Cramer's Take), Potash (NYSE: POT) (Cramer's Take), Agrium (NYSE: AGU) (Cramer's Take), Mosaic (NYSE: MOS) (Cramer's Take) and Archer Daniels (NYSE: ADM) (Cramer's Take) (these are big companies in market cap now, powers of the S&P or companies just waiting to get into the S&P but stalled by a lack of mergers). And everything that drills, ships and transports oil and gas: Rowan (NYSE: RDC) (Cramer's Take), Parker (NYSE: PKD) (Cramer's Take), Weatherford (NYSE: WFT) (Cramer's Take), Cameron (NYSE: CAM) (Cramer's Take), Noble (NYSE: NE) (Cramer's Take), Transocean (NYSE: RIG) (Cramer's Take), FMC Tech (NYSE: FTI) (Cramer's Take), Oceaneering (NYSE: OII) (Cramer's Take) and so many others -- and of course, Halliburton (NYSE: HAL) (Cramer's Take) and Schlumberger (NYSE: SLB) (Cramer's Take).

And then there is oil and gas itself, ever a larger portion of the S&P. Look at the charts during last week's run: Apache (NYSE: APA) (Cramer's Take), Anadarko (NYSE: APC) (Cramer's Take), Nabors (NYSE: NBR) (Cramer's Take), Exxon (NYSE: XOM) (Cramer's Take), Chevron (NYSE: CVX) (Cramer's Take), Occidental (NYSE: OXY) (Cramer's Take), XTO (NYSE: XTO) (Cramer's Take), Southwestern (NYSE: SWN) (Cramer's Take), Chesapeake (NYSE: CHK) (Cramer's Take), Ultra (NYSE: UPL) (Cramer's Take): these all count.

Coal, of course, is a huge beneficiary. Infrastructure works because these companies get the benefits of the oil companies' largesse by being able to build energy-related production centers.

Even the autos can be viewed as benefitting, as the newer cars use less gas than the old ones, making them viable alternatives in multiyear paybacks. Along those lines, energy-efficient appliances get a boost.

Then there are the myriad energy-alternative plays that are always dominating the headlines but haven't yet made it into the S&P or are very small parts of the S&P: the wind plays -- Trinity (NYSE: TRN) (Cramer's Take), Woodward Governor (NASDAQ: WGOV) (Cramer's Take), Owens Corning (NYSE: OC) (Cramer's Take) (also insulation); solar -- First Solar (NASDAQ: FSLR) (Cramer's Take) ($24 billion market cap), SunPower (NASDAQ: SPWR) (Cramer's Take), and all the Chinese plays that people love so much.

Pipelines galore: Kinder Morgan (NYSE: KMP) (Cramer's Take), Enterprise (NYSE: EPD) (Cramer's Take), Boardwalk (NYSE: BWP) (Cramer's Take), so many others.

Many companies are neutral -- financial, telco, utilities -- although some benefit from the price umbrella of higher oil costs and can pass on costs they don't have. Tech's been fairly neutral. The weaknesses we have seen in tech are related to consumer slowdown (customers such as Office Depot (NYSE: ODP) (Cramer's Take)) or financial. Media's neutral, too. Health care can't be considered a negative either when it comes to energy consumption.

Most of the conglomerates say they are energy-positive: United Tech (NYSE: UTX) (Cramer's Take) and, famously, GE (NYSE: GE) (Cramer's Take), which has said that its fortunes should improve as oil goes higher, although we haven't seen that yet.

We know there are plenty that don't. Anything that is sold in the supermarket. Anything retail. Anything that uses oil or natural gas and can't really pass it on: Minerals and mining (although global demand really helps), glass (although recycling really helps, as in the case of Owens-Illinois (NYSE: OI) (Cramer's Take)), and chemicals and the paper producers.

But those companies aren't that important anymore, even though they dominate the consciousness of the marketplace, despite the encroachment of energy as a part of the S&P 500.

In fact, if finance could turn itself around -- something that seems increasingly possible, although it has sucked up a huge amount of capital and done nothing -- you could argue that we are on the cusp of a major move as it dawns on people that energy isn't the tax it used to be.

There are plenty of 30,000-foot flaws to this. We have seen time and again that our own growth in this country is heavily consumer-related. But the industrial growth owes itself not to the U.S. consumer, but the worldwide consumer.

All of these facts can go far toward explaining how higher oil prices have not been able to block the advance of the S&P or the Dow Jones averages. In fact, if the latter were more responsive to energy -- the Chevron nod was accompanied by ne'er-do-well Bank of America (NYSE: BAC) (Cramer's Take) instead of a Deere or another oil play like an Occidental or a Schlumberger -- we would be taking out 13,000 with ease.

All of this is worth thinking about when you are gloomy, because it doesn't add up to a decline, it explains the advance.

Keep it in mind during the next downturn. It explains a lot why they've been fairly shallow.

And I don't expect anything deeper now that finance seems to have stabilized.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long XTO and Owens-Illinois.

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Cramer on BloggingStocks: Play this week with a steady hand

Jim Cramer — 2008-05-05T09:09:00+00:00

Filed under: General Electric (GE), Exxon Mobil (XOM), Market matters, Sprint Nextel Corp (S), Federal Natl Mtge (FNM), BP p.l.c. ADS (BP), Honeywell Intl (HON), United Technologies (UTX), Eaton Corp (ETN), Bear Stearns Cos (BSC), Stocks to Buy, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says there's some reason for caution, but no reason to get out of the market here.

There all right there. Don't you feel it? Hundreds of stocks at resistance. Hundreds have formed a nice base. The Transports and the Dow are moving in synch. The earnings period surprisingly great, with so many companies not stung by the raw costs. Three straight up weeks, with all the commodity stocks showing signs of rolling over; most at crucial "must hold" levels except for gold, which has already crashed, making the inflation case much dimmer in the eyes of the traders.

Yet, you simply can't read the papers. They are too awful. The cost to the consumers for everything from food to gasoline is humongous and going higher, according to all the food execs I had on last week. We are getting nowhere near a bottom in housing. The layoffs, while not significant in the Labor Report on Friday, sure seem endless. The two major presidential candidates from the Democratic side want to tax the oil companies into oblivion, the leaders of the last year. Exxon (NYSE: XOM) (Cramer's Take) blew the quarter. So did GE (NYSE: GE) (Cramer's Take).

Too far, too fast, based on those grim items.

To me, this is the first week since the Bear Stearns (NYSE: BSC) (Cramer's Take) bottom that I think seems aimless.

But perhaps there's a "split the difference" way to approach this week: options expiration.

I expect the bias, once again, to be upward. I have been noting that there's money coming in for some time. The talk about Deutsche Telekom (NYSE: DT) (Cramer's Take) buying ne'er-do-well Sprint (NYSE: S) (Cramer's Take) fits that picture. Strong-currency Europeans and Asians have stepped up their buying. Sovereign funds quietly taking up positions, like the odd building up of BP (NYSE: BP) (Cramer's Take) right at what looked like levels that could not be supported. I expect more of both.

But one of the days this week will be a big down day. We will hear plenty of reasons why it happened, yet it will probably really be caused by option balancing.

I would wait for that day to buy if you aren't in. If you are in, I think you just sit tight. I think the rally's real, and I believe if the cost inputs simply level off -- and I think they will -- we will be in fine shape to move forward. Food and energy can't go up much more from here without severe supply interruptions, as we seem to have reached some sort of price equilibrium. The possibility of the ethanol mandate going away could be huge.

That's why it seems wrong to cash out. Too much upside. Too many stocks selling at low multiples that are doing well. Too many Honeywells (NYSE: HON) (Cramer's Take) and Eatons (NYSE: ETN) (Cramer's Take) and Parker Hannifins (NYSE: PH) (Cramer's Take) and United Technologies (NYSE: UTX) (Cramer's Take). Too many 4%-5% yielders still. You get a break in oil, or even a stabilization, and you get the end of the mandate of ethanol and every transport and food company soars. Plus, other than Fannie Mae (NYSE: FNM) (Cramer's Take) and Freddie Mac (NYSE: FRE) (Cramer's Take), the financials have all refinanced and seem ready to run. Remember, all commodity costs have to do is stay here and that can trigger a further rally.

Lot to like; too little to give up on.

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Parker Hannifin Corporation (PH): Share price defines bullish 'cup & handle'

Larry Schutts — 2008-05-01T08:53:00+00:00

Filed under: Earnings reports, Technical Analysis, Honeywell Intl (HON), Eaton Corp (ETN), Stocks to Buy

Parker Hannifin Corporation (NYSE: PH) manufactures fluid power systems, electromechanical controls and related components. Its Industrial unit offers hydraulic systems, filters, sealing devices, pneumatic components and electromechanical instrumentation to OEMs in various production and processing industries. The firm's Aerospace segment provides hydraulic, fuel, and pneumatic systems used in commercial and military airframe and engine programs. The Climate and Industrial Controls division makes refrigeration and air conditioning systems. The company employs more than 57,000 people in 43 countries around the world. Eaton Corporation (NYSE: ETN) and Honeywell International (NYSE: HON) are competitors.

Investors were pleased last week, when the firm reported fiscal Q3 EPS of $1.49 and revenues of $3.18 billion. Analysts had been looking for $1.34 and $3 billion. Management pointed to growth in many key markets, including aerospace. The firm also guided FY08 EPS to $5.40-$5.60, versus consensus of $5.28.

The announcement popped PH shares out of an early April "cup" into the late April "handle" of a Cup & Handle formation. The price is now showing signs of completing the pattern with a bullish rise from the right-hand side of the "handle".

Brokers recommend the shares with three "strong buys", two "buys" and eleven "holds". Analysts see a 19% average annual growth rate, through the next five years. The PH P/E ratio (15.12), Price to Sales ratio (1.15), Price to Book ratio (2.62), Price to Cash Flow ratio (11.05), Price to Free Cash Flow ratio (15.06), EPS Growth rate (29.57%), Return on Assets (9.98%) and Return on Investment (13.12%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 84% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $58.10 and $86.56. A stop-loss of $69.20 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Cramer on BloggingStocks: Airlines can't survive oil at $120

Jim Cramer — 2008-04-29T09:09:00+00:00

Filed under: Industry, Apple Inc (AAPL), Market matters, Goldman Sachs Group (GS), Eaton Corp (ETN), Delta Air Lines (DAL), Stocks to Buy, Stocks to Sell, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says they can't be profitable with this huge cost - it's time to move on.

Here's a revelation. The airline industry is disappearing right before our eyes. And it doesn't even matter. They can merge all they want, they can try to cut costs through synergy, but the business can't survive $120 oil. The variable cost is 35% of their expense. That's not tenable and it is going higher. Fares have to double to make it up. That's just not tenable. The Dreamliner's a nice savings, but this American industry won't get there in time to be saved by it.

Last week we saw the big give-up, the departure of even the longest-term investors. The stocks are signaling that most of them will have to restructure through bankruptcy. They have done it before, but this time it doesn't matter. The fare increases have to occur, and they are such that the airline structures can't be profitable. It is one of those industries that can't stay afloat without massive federal subsidies, and that can't happen.

I have hated the airline stocks ever since 1985 when I recommended Delta (NYSE: DAL) (Cramer's Take) and my clients promptly dropped 50%. I reiterate that after the tremendous declines these stocks have, they are still worth avoiding. Don't be tempted to pick up these stocks if oil "swoons" down to $115. The airlines will rally, but they will need to do every bit of financing possible if a rally occurs.

This group has held an endless fascination on Wall Street from the first days it traded, yet the industry itself has done nothing but accumulated losses since it started. Find another industry to invest in! This one is not investible!

Random musings: I continue to believe that Apple (NASDAQ: AAPL) (Cramer's Take) can go MUCH higher. It is a very strong story in a group without many good stories. ... I prefer industrial "techs" like Eaton (NYSE: ETN) (Cramer's Take) to any of these techs. ... I firmly believe that Goldman's (NYSE: GS) (Cramer's Take) having a moment where it might be taking huge share and that's why it is up nicely. ... People really are buying retail off the tax rebate checks. ... The McMahons got the bum rush in yesterday's New York Times. It said that the CEO and chairman of World Wrestling Entertainment (NYSE: WWE) (Cramer's Take) enriched themselves with a big dividend boost. WRONG! They boosted the dividend for the other shareholders only, not themselves. That's why I said they are so pro shareholder on the show! Ouch!

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Earnings highlights: Financials, Caterpillar, Johnson & Johnson, Crocs and others

Trey Thoelcke — 2008-04-19T11:40:00+00:00

Filed under: Earnings reports, Caterpillar (CAT), Citigroup Inc. (C), Johnson and Johnson (JNJ), JPMorgan Chase (JPM), Charles Schwab Corp (SCHW), Merrill Lynch (MER), Wachovia Corp (WB), Washington Mutual (WM), Eaton Corp (ETN), Wells Fargo (WFC), Crocs Inc (CROX), Bear Stearns Cos (BSC)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Bear Stearns Cos. Inc. (NYSE: BSC) reported a profit that missed expectations by a penny.
Caterpillar Inc. (NYSE: CAT) posted higher profits in the first quarter, boosted by global gains.
Charles Schwab Corp. (NASDAQ: SCHW) first-quarter earnings were in line with expectations.
Citigroup Inc. (NYSE: C) posted a bigger-than-expected loss on further write-downs.
Crocs Inc. (NASDAQ: CROX) lowered first-quarter guidance led the stock to a new 52-week low.
Eaton Corp. (NYSE: ETN) beat first-quarter estimates due to strong demand overseas.
Gilead Sciences Inc. (NASDAQ: GILD) posted better-than-expected first-quarter earnings.
ITT Corp. (NYSE: ITT) raised its first-quarter and full-year earnings guidance.
Johnson & Johnson (NYSE: JNJ) reported better-than-expected first-quarter earnings.
JPMorgan Chase & Co. (NYSE: JPM) beat expectations though first-quarter profits fell
Merrill Lynch & Co. (NYSE: MER) posted a bigger-than-expected first-quarter loss due to write-downs.
TD Ameritrade Holding Corp. (NASDAQ: AMTD) second-quarter EPS rose 35%, but revenue fell.
U.S. Bancorp (NYSE: USB) beat first-quarter earnings expectations thought profits slipped.
Wachovia Corp. (NYSE: WB) posted its first quarterly loss since 2001 and cut its dividend.
Washington Mutual Inc. (NYSE: WM) swung to a first-quarter loss of more than $1 billion.
Wells Fargo & Co. (NYSE: WFC) beat expectations though first-quarter profits fell.

Also, Jim Cramer doesn't think General Electric (NYSE: GE) is the bellwhether some take it for. Goldman Sachs (NYSE: GS) is pessimistic about this earnings season. Tymothy Sykes looks at some other companies that may follow in the footsteps of Crocs. And here's a look at some companies that reported this week that could bounce back after the recession, as well as earnings expectations for "barometer" companies reporting next week.

Upcoming results to watch for include Bank of America (NYSE: BAC), Halliburton (NYSE: HAL), Merck (NYSE: MRK) Texas Instruments (NYSE: TXN), AT&T (NYSE: T), DuPont (NYSE: DD), Yahoo! (NASDAQ: YHOO), Amazon.com (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Qualcomm (NASDAQ: QCOM), Boeing (NYSE: BA), UPS (NYSE: UPS), 3M (NYSE: MMM), PepsiCo (NYSE: PEP), Microsoft (NASDAQ: MSFT), Motorola (NYSE: MOT), and McDonald's (NYSE: MCD).

Visit AOL Money & Finance for more earnings coverage.

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Eaton Q1 profits rise, JB Hunt and Stanley Furniture profits fall

Trey Thoelcke — 2008-04-14T18:20:00+00:00

Filed under: Earnings reports, Hunt(J.B.) Transport (JBHT), Eaton Corp (ETN)

In earnings reports Monday, Eaton Corp. (NYSE: ETN) posted first-quarter profit gains, while J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) and Stanley Furniture Co. (NASDAQ: STLY) reported smaller profits compared to the same period in 2007.

Eaton, a maker of industrial parts and systems, said that first-quarter earnings rose 5% as demand from international markets pushed sales higher. Net income rose to $247 million, or $1.64 per share, beating Wall Street expectations. Sales rose 12% to $3.5 billion. Eaton shares rose $1.09 in trading Monday to $80.39, but slipped 13 cents in after-hours trading.

J.B. Hunt, which provides truckload and intermodal shipping services, said its first-quarter profit fell 18% because of weak demand and a rising fuel prices. The company earned $36.4 million, or 28 cents per share, missing Wall Street estimates. Total operating revenue rose 10% to $878.4 million. Shares fell 31 cents to $29.15 Monday, and continued to fall in aftermarket trading.

Stanley Furniture, which makes wood furniture for the residential market, said its first-quarter profit tumbled 37%, but beat Wall Street's expectations. The company reported income of $1 million, or 10 cents per share. Sales fell 17% to $62.5 million. Shares fell 15 cents Monday, then plunged another $1, or 9.4%, in after-hours trading to $9.59.

Visit AOL Money & Finance for more earnings coverage.

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Esterline Technologies (ESL): Share price moving in bullish 'flag'

Larry Schutts — 2008-03-20T13:48:00+00:00

Filed under: Earnings reports, Boeing Co (BA), Technical Analysis, Eaton Corp (ETN), Stocks to Buy

Esterline Technologies (NYSE: ESL) is engaged in the design, manufacture, and marketing of engineered products and systems for application in the aerospace and defense industries. The Avionics & Controls unit makes communications systems, medical equipment, and interface systems for aircraft and military vehicles. The Sensors & Systems operation manufactures temperature and pressure sensors, as well as fluid and motion control products. The Advanced Materials segment makes elastomer products, combustible ammunition components and electronic warfare countermeasures. Boeing (NYSE: BA) is a major customer. Eaton Corporation (NYSE: ETN) is a competitor.

The company surprised investors late last month, when it reported Q1 EPS of $1.04 and revenues of $372.4 million. The Street had been expecting 59 cents and $342.3 million. The CEO noted that quarterly organic growth of nearly 25% was well balanced between the military and commercial businesses. Management also guided FY08 EPS to $3.35-$3.50, versus consensus of $3.17.

The share price popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", three "buys" and three "holds". Analysts expect a 26% average annual growth rate, through the next five years. The ESL P/E ratio (12.63), Price to Sales ratio (1.09), Price to Book ratio (1.33), Price to Cash Flow ratio (8.82), Price to Free Cash Flow ratio (13.18), Sales Growth rate (44.78%) and EPS Growth rate (153.66%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $40.10 and $59.20. A stop-loss of $43.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Analyst upgrades: LLNW, DBD and CTHR

Eric Buscemi — 2008-03-04T11:20:00+00:00

Filed under: Analyst upgrades and downgrades, United Technologies (UTX), Akamai Technologies (AKAM), Eaton Corp (ETN)

MOST NOTEWORTHY: Limelight Networks, Diebold and Charles & Colvard were today's noteworthy upgrades:

Jefferies upgraded shares of Limelight Networks (NASDAQ: LLNW) to Hold from Underperform on valuation and believes it impossible to know what will happen to the company from here. On the downside, Jefferies notes a permanent injunction means the business is nearly worthless, but on the upside, is the possibility of sale to Akamai (NASDAQ: AKAM) or a large telecomm service provider.
Baird raised Diebold (NYSE: DBD) to Outperform from Neutral citing expectations of a higher bid from United Technologies (NYSE: UTX).
Merriman upgraded shares of Charles & Colvard (NASDAQ: CTHR) to Buy from Neutral on valuation, as they believe the current share price does not account for the potential wholesale value of the company's manufactured inventory and method patent. They believe Charles & Colvard is a potential acquisition target.

OTHER UPGRADES:

Goldman raised Eaton (NYSE: ETN) to Conviction Buy from Neutral and added Royal Caribbean (NYSE: RCL) to its Conviction Buy List.

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Cramer on BloggingStocks: Cyclicals have left the U.S. in the dust

Jim Cramer — 2008-02-27T08:47:00+00:00

Filed under: Market matters, Caterpillar (CAT), Honeywell Intl (HON), United Technologies (UTX), Eaton Corp (ETN), Stocks to Buy, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says if you can show you're immune to Bernanke, you're going higher.

Cyclicals are on fire here. Stocks like Caterpillar (NYSE: CAT) (Cramer's Take) and Terex (NYSE: TEX) (Cramer's Take) and Joy Global (NASDAQ: JOYG) (Cramer's Take) just can't be stopped. Manitowoc (NYSE: MTW) (Cramer's Take) is a good one. I am thinking United Tech (NYSE: UTX) (Cramer's Take) and Honeywell (NYSE: HON) (Cramer's Take). The rails are on fire.

All of them, what do they have in common? They have left the U.S. behind. We are an afterthought. If you can prove on a conference call that Ben Bernanke has nothing to do with your book of business, you are going higher.

Notice Eaton (NYSE: ETN) (Cramer's Take) and Emerson (NYSE: EMR) (Cramer's Take). They can't quit. When the coal operators come to their sense and realize that they can make fortunes digging for more, then Joy Global will take out the high. I am using any weakness to buy Foster Wheeler (NASDAQ: FWLT) (Cramer's Take), the tug of the non-U.S. cyclicals is that strong.

Of course, if the U.S. comes back you could get a real added bonus.

I wish I had never sold CAT, as it figured out simply to not talk about the U.S. Honeywell was the same way. Danaher (NYSE: DHR) (Cramer's Take), too.

I know these are the worst stocks to own if you believe the early-cycle thesis. But you have to believe in companies that don't do U.S. business or have left it behind. They are on fire and they still can be bought.

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Earnings highlights: Apple, Microsoft, Texas Instruments, Southwest, Caterpillar, and others

Trey Thoelcke — 2008-01-26T08:40:00+00:00

Filed under: Earnings reports, Microsoft (MSFT), Apple Inc (AAPL), Caterpillar (CAT), Nokia Corp. (NOK), Johnson and Johnson (JNJ), Abbott Laboratories (ABT), Coach Inc (COH), ConocoPhillips (COP), Southwest Airlines (LUV), Sun Microsystems (JAVA), Nucor Corp (NUE), QUALCOMM Inc (QCOM), Amgen Inc (AMGN), Texas Instruments (TXN), Eaton Corp (ETN)

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

Abbott Laboratories (NYSE: ABT) swung to a profit on the strength of drug sales.
AK Steel Holding Corp. (NYSE: AKS) swung to a fourth-quarter profit and easily beat estimates.
Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) posted solid results and raised its forecast.
Amdocs Ltd. (NYSE: DOX) reported a record quarter and reaffirmed its guidance.
Amgen Inc. (NASDAQ: AMGN) beat exectations, but concerns remain about FDA scrutiny.
Apple Inc. (NASDAQ: AAPL) easily beat expectations and offered revised guidance (see live blog, transcript).
Caterpillar Inc. (NYSE: CAT) posted a solid quarter on strong international growth.
Coach Inc. (NYSE: COH) beat estimates on strong direct-to-customer and same-store sales.
ConocoPhillips (NYSE: COP) posted a strong fourth quarter due to rising oil prices.
CSX Corp. (NYSE: CSX) beat expectations as increased productivity offset increased fuel costs.
Eaton Corp. (NYSE: ETN) posted solid fourth quarter results due to growth overseas.
Equity LifeStyle Properties Inc. (NYSE: ELS) beat expectations in the fourth quarter and offered guidance.
Franklin Resources Inc. (NYSE: BEN) reported solid results and increased its quarterly dividend.
Johnson & Johnson (NYSE: JNJ) posted a solid fourth quarter and affirmed its 2008 guidance.
Microsoft Corp. (NASDAQ: MSFT) posted strong results due in part to demand for Vista.
Nintendo Co. (OTC: NTDOY) profit soared on demand for the Wii, and the company raised is sales outlook.
Nokia Corp. (NYSE: NOK) reported a strong fourth quarter and increased market share in handset sales.

Nucor Corp. (NYSE: NUE) easily beat analysts' expectations for the fourth quarter.
PetMed Express Inc. (NASDAQ: PETS) profits soared as more people buy pet meds online.
Qualcomm Inc. (NASDAQ: QCOM) reported a solid first quarter on strong demand for its chips.
Skyworks Solutions Inc. (NASDAQ: SWKS) beat expectations and offered revised guidance.
Southwest Airlines Co. (NYSE: LUV) profit nearly doubled despite weather and operational challenges.
Sun Microsystems Inc. (NASDAQ: JAVA) net income soared despite stiff competition.
Texas Instruments Inc. (NYSE: TXN) beat fourth quarter earnings estimates (see transcript).
Xerox Corp. (NYSE: XRX) profit soared on strong sales and it announced a share buyback plan.
Xilinx Inc. (NASDAQ: XLNX) beat expectations due to strong demand for its new products.

See additional earnings highlights.

Also, Jim Cramer's advice for what earnings should mean in your buy or sell decision. Both Peter Cohan and Georges Yared look at the part earnings have played in this week's volatility. And Aaron Katsman is bullish on tech stocks.

Upcoming results to watch for include Verizon (NYSE: VZ), Halliburton (NYSE: HAL), American Express (NYSE: AXP), McDonald's (NYSE: MCD), Yahoo! (NASDAQ: YHOO), Amazon.com (NASDAQ: AMZN), Starbucks (NASDAQ: SBUX), Altria (NYSE: MO), Boeing (NYSE: BA), United Parcel Service (NYSE: UPS), Procter & Gamble (NYSE: PG), Google (NASDAQ: GOOG) and Exxon Mobil (NYSE: XOM).

Visit AOL Money & Finance for more earnings coverage.

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Eaton (ETN) posts 6% net increase

Victoria Erhart — 2008-01-23T16:46:00+00:00

Filed under: Earnings reports, Good news, Industry, Eaton Corp (ETN)

Eaton Corporation (NYSE: ETN) manufactures electrical systems and components for fluid power systems for industrial, automotive and aerospace industries. While the stock market continues to gyrate, Eaton continues to post solid results quarter after quarter. 4Q2007 results proved no exception. Across the board, numbers are up. Net income increased 6% to $256 million, sales grew by 10% due to both acquisitions and organic growth. Operating earnings increased 7% to $269 million. The story is the same for FY 2007 results.

The bulk of Eaton's growth and profits for 2007 came from outside the U.S., which remains a weak market, particularly in the NAFTA truck segment, which declined 14%. To offset this decline, European medium-duty truck production increased 12% and Brazilian agricultural equipment, still a small market, increased 63%. Electrical and fluid power segments each posted sales increases of 17%. Operating profits in these segments increased by 17% and 37% respectively. Aerospace segment grew by 6%.

Eaton CEO Alexander Cutler forecasts overall revenue growth at 25% for 2008, due both to organic growth as well as continued acquisitions. Operating earnings per share for 2008 are forecast at $7.75-$8.25. With the stock price right around $80 per share, coupled with an annual dividend of $0.50 per share, conservative investors may wish to take a look at Eaton as a safe place to park money.

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Analyst downgrades: Air Products, Eaton, Pharmaceutical Product Development

Eric Buscemi — 2008-01-10T11:55:00+00:00

Filed under: Analyst upgrades and downgrades, Eaton Corp (ETN)

MOST NOTEWORTHY: Air Products, Eaton and Pharmaceutical Product Development were today's noteworthy downgrades:

Jefferies downgraded shares of Air Products (NYSE: APD) to Hold from Buy and lowered their target to $105 from $112 as they believe investors should wait for a better entry point given the company's more cyclical growth portfolio. They see downside risks to its electronics, chemicals and equipment businesses.
Eaton Corp. (NYSE: ETN) was downgraded to Neutral from Buy at Goldman due to its high exposure to the U.S. economy.
Baird downgraded Pharmaceutical Product Development (NASDAQ: PPDI) to Neutral from Outperform as its 2008 development guidance appears full and margins look full.

OTHER DOWNGRADES:

Goldman downgraded the U.S. non-life insurance sector to Neutral from Attractive and removed Synchronoss (NASDAQ: SNCR) from its Conviction Buy List.
ING downgraded Fortis (OTC: FORSY) to Hold from Buy.

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