Zacks Analyst Blog Highlights: Baker Hughes, Schlumberger, Halliburton, Whirlpool and CB Richard Ellis Group

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Apr 28, 2011, 10:20 ET

CHICAGO, April 28, 2011 /PRNewswire/ -- Zacks.com Analyst Blog features: Baker Hughes Inc. (NYSE: BHI), Schlumberger Ltd. (NYSE: SLB), Halliburton Co. (NYSE: HAL), Whirlpool Corporation (NYSE: WHR) and CB Richard Ellis Group Inc. (NYSE: CBG).

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Here are highlights from Wednesday's Analyst Blog:

Baker Hughes Shines in Q1

Baker Hughes Inc. (NYSE: BHI) reported impressive first quarter 2011 results with a jump in per share profit based on strong international operations.

The company's earnings came in at 87 cents per share, way ahead of the Zacks Consensus Estimate of 78 cents and more than twice the year-ago quarter's profit level of 41 cents.

Revenue shot up 78.2% to $4.52 billion in the quarter from the year-earlier level of $2.54 billion. The quarter's revenue also exceeded the Zacks Consensus Estimate of $4.30 billion.

Outlook

We believe that Houston, Texas-based Baker Hughes is favorably positioned with a significant improvement in activity levels in both North America and the international regions. The company's strong portfolio of products and services will help it generate better-than-average results in the domestic market and enable it to further penetrate international markets. The company also has a competitive set of technologies, which allows it to continue deepwater activity in the Gulf of Mexico.

However, we remain cautious about delayed permit for deepwater and shelf drilling in the Gulf region. Furthermore, we believe that the company is still in the growth phase of its international expansion and faces stiff competition from peers such as Schlumberger Ltd. (NYSE: SLB) and Halliburton Co. (NYSE: HAL).

We maintain a long-term Neutral rating on the stock. Baker Hughes currently retains a Zacks #3 Rank (short-term Hold rating).

Whirlpool Q1 Weak but Beats Ests

Whirlpool Corporation (NYSE: WHR) reported a 16% fall in profit (before special items) to $2.11 per share from $2.51 per share (before special items) in the year-ago quarter. However, the company has beaten the Zacks Consensus Estimate by a significant margin of 49 cents per share.

The company's results were favorably impacted by cost reduction and productivity initiatives, increased monetization of certain tax credits, and higher unit volume. These were offset by lower product price/mix and higher material and oil-related costs.

Revenues in the quarter increased marginally by 3% to $4.40 billion, up from the Zacks Consensus Estimate of $4.21 billion. The adjusted operating profit decreased 23% to $221 million in comparison to $287 million in the previous year.

CB Richard Ellis Outperforms

CB Richard Ellis Group Inc. (NYSE: CBG), the world's largest commercial real estate services company (on the basis of 2010 revenues), has reported first quarter 2011 revenues of $1.2 billion compared with $1.0 billion in the year-earlier quarter, reflecting an increase of 16%. The strong quarterly revenues marked a solid start to fiscal 2011 as first quarter has been historically the seasonally weakest quarter for the company. Total revenues in the reported quarter were in line with the Zacks Consensus Estimate.

The company reported a net income of $34.4 million or 11 cents per share during the quarter, compared with a net loss of $6.6 million or 2 cents in the year-ago period. Excluding non-recurring items, CB Richard Ellis reported a net income of $40.6 million or 13 cents per share during the quarter compared with $3.2 million or 1 cent in the year-earlier quarter. The first quarter 2011 recurring earnings marginally beat the Zacks Consensus Estimate by a penny.

First quarter 2011 EBITDA (earnings before interest, tax, depreciation, and amortization) increased 51% to $113.0 million, compared to $75.0 million in the year-ago quarter. The better-than-expected results were primarily due to improved performance across almost all geographic regions and business lines against a backdrop of steadily improving global market fundamentals.

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