On Sep 27, Zacks Investment Research upgraded
Hawaiian Telecom Holdco, Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Hawaiian Telecom has been witnessing rising earnings estimates
on the back of strong fiscal second-quarter 2013 results.
Moreover, this well-known integrated communications and
entertainment solutions provider delivered positive earnings
surprises in 3 of the last 4 quarters with an average beat of
13.7%. The long-term expected earnings growth rate for this stock
Hawaiian Telecom reported second-quarter (ended Jun 30)
results on Aug 5. Non-GAAP earnings per share came in at 21
cents, missing the Zacks Consensus Estimate of 25 cents by 16%.
The decrease was attributable to a one-time $3.7 million loss on
early extinguishment of debt, a $2.5 million increase in
depreciation and amortization, and a $2.5 million deferred tax
provision. These were partially offset by a one-time $6.5 million
gain from the sale of property.
However, revenues for the quarter grew 2.4% year over year to
$97 million, driven by video, HSI, and revenues related to the
Further, the company has been pursuing some strategic
acquisitions to strengthen its position in the voice, data and
converged services and cloud. Yesterday, Hawaiian Telecom
completed the acquisition of SystemMetrics Corporation in a cash
transaction valued at approximately $16 million. Prior to this,
the company acquired Wavecom Solutions Corporation.
The Zacks Consensus Estimate for fiscal 2013 increased 32.1%
to $1.03 per share as most estimates were revised higher over the
last 60 days. For fiscal 2014, more than half of the estimates
were revised higher over the same time frame, lifting the Zacks
Consensus Estimate by 46.3% to 60 cents per share.
Other Stocks to Consider
Apart from Hawaiian Telecom, other favorably ranked stocks
TALKTALK TELECOM GRO
Telecom, SGPS S.A.
). While TALKTALK carries a Zacks #1 Rank (Strong Buy), the
latter two carry a Zacks #2 Rank (Buy).
HAWAIIAN TELCOM (HCOM): Free Stock Analysis
PORTUGAL TELCOM (PT): Free Stock Analysis
TALK TALK U-ADR (TKTCY): Get Free Report
TELEF BRASIL SA (VIV): Free Stock Analysis
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