On Sep 18, Zacks Investment Research upgraded
Interval Leisure Group, Inc
) to a Zacks Rank #1 (Strong Buy).
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Why the Upgrade?
Interval Leisure Group has witnessed rising earnings estimates on
the back of solid second-quarter 2013 results. Moreover, this
provider of membership and leisure services to the vacation
industry delivered positive earnings surprises in the last 4
quarters, with an average beat of 14.8%. The long-term expected
earnings growth rate for this stock is 10%.
Interval Leisure Group reported second-quarter results on Aug 7.
Non-GAAP earnings per share came in at 32 cents, surpassing the
Zacks Consensus Estimate by 14.3%, and year-ago earnings by 78%.
The improvement came on the back of better top line (improving
5.2% year over year) and lower interest expense (plunging 82%
year over year). Higher revenues from the operating segments -
Membership and Exchange, and Management and Rental - aided the
improvement in top line. Both the segments remain focused on
organic growth initiatives and new business development
While cash and cash equivalents of Interval Leisure Group at
quarter-end improved 7.7% from 2012-end, debt level declined
17.3% over the same period. Free cash flow in the first half of
2013 increased 27.5% year over year.
The Zacks Consensus Estimate for fiscal 2013 increased 4.7% to
$1.33 per share as 3 of 5 estimates were revised higher over the
last 60 days. For 2014 as well, 3 of 5 estimates were revised
higher over the same time frame, lifting the Zacks Consensus
Estimate by 3% to $1.37 per share.
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