The Zacks Analyst Blog Highlights: IBM, Sempra Energy, NRG Energy, Laclede
Group and Questar
CHICAGO, April 19, 2013
CHICAGO, April 19, 2013 /PRNewswire/ --Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include IBM (NYSE:IBM), Sempra Energy
(NYSE:SRE), NRG Energy Inc. (NYSE:NRG), The Laclede Group, Inc. (NYSE:LG) and
Questar Corporation (NYSE:STR).
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Here are highlights from Thursday's Analyst Blog:
IBM Misses Earnings, Revenues in Q1
IBM (NYSE:IBM) missed the Zacks Consensus Estimate for the first time in years
during its first quarter. Years!
The computing powerhouse also missed on the top line, in a quarterly
performance that is sure to add to growing concerns about the market and the
economy. Mercifully, Big Blue kept its outlook for 2013 unchanged, which is
going to have to pass as good news in an otherwise surprising report.
As of this writing, shares of Big Blue are down more than 4% after hours.
IBM reported operating earnings per share of $3 for the first quarter, which
was below the Zacks Consensus Estimate of $3.06. The result was 8% better than
the year-ago performance.
Total revenues of $23.4 billion were also below the Zacks Consensus Estimate
of $24.5 billion. While the earnings miss is surprising, the revenue miss is
more disappointing. In its fourth quarter, IBM had topped expectations for the
first time in several quarters. We were hoping that was the beginning of a
turnaround in this department. Guess not.
The company stated that it failed to close a number of software and mainframe
transactions, which have moved into the second quarter. Meanwhile, the
services business performed as expected.
IBM was pretty much standing still heading into this report. With a Zacks Rank
#3 (Hold), there had been very few earnings estimate revisions in the past
several months. The Zacks Consensus Estimate for this year is at $16.74 per
share, which is up from $16.58 three months ago, but had been rather stagnant
since. In fact, the consensus is down a penny in the past 7 days.
It will be interesting to see what kind of repercussions this report has on
earnings season. IBM is seen as a bellwether not only for technology, but the
market in general. A good report could have helped the souring mood among
investors, but it will instead bring a lot of questions.
Sempra Buys More Renewables
San Diego Gas & Electric (SDG&E), a subsidiary of Sempra Energy (NYSE:SRE),
has entered into power purchase agreements ("PPA") to buy 62 megawatts ("MW")
of capacity from five renewable energy projects in California. These projects
comprise three solar and two wind operations.
Per a 20-year agreement, Sempra will buy 7 MW of solar power from Northlight
Power's NLP Valley Center and 20 MW of power from Silverado Power, LLC's
Zodiac projects. Both these solar projects are located in San Diego County.
NLP Valley Center is expected to come online in Sep 2014 and Zodiac in May
The company will buy 20 MW of energy from E.ON Climate and Renewables'
Maricopa West project, according to a 15-year power agreement. This project
will be built in Kern County and is expected to come online in Jan 2015.
In a 10-year agreement, the company will buy wind power from Terra-Gen's 3.5
MW Oak Creek that will be built in Kern County. This project is expected to
come online in Jan 2014. Sempra has entered into another 10-year agreement to
buy 11.2 MW from San Gorgonio Westwinds II projects that will be built at
Riverside County. This wind project is expected to begin operations in Jan
However, these five agreements have yet to be approved by California Public
Sempra is on track to meet the state's renewable energy goal that calls for
generating 33% of energy from renewable sources by 2020. In 2011, the company
entered into 23 renewable energy contracts that resulted in 20.8% of energy
produced from renewable sources.
In 2012, the company signed 13 such contracts, resulting in 20.3% of energy
from renewables. The company believes that if the same trend continues then it
will be able to generate 25% of renewable energy by 2016.
Recently, the first large scale renewable energy project, namely the NRG Solar
Borrego Project, came online in San Diego County which was developed by
NRG Energy Inc.
Currently, Sempra has six projects under construction in the Imperial Valley.
These projects include the Ocotillo Express Wind Project that was connected to
the Sunrise Powerlink in Dec 2012.
All these project developments have enabled the company to create a
well-balanced renewable portfolio that is a combination of a broad spectrum of
energy sources including solar, wind, biomass, biogas and geothermal energy.
The company presently retains a short-term Zacks Rank #2 (Buy).
Other stocks worth considering are The Laclede Group, Inc. (NYSE:LG) and
Questar Corporation (NYSE:STR), both with a Zacks Rank #2 (Buy).
Based in California, Sempra Energy is an energy services holding company
involved in the sale, distribution, storage, and transportation of electricity
and natural gas.
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