Zacks Analyst Blog Highlights: Navigant Consulting, DryShips Inc., Wipro Ltd., Citigroup and UBS AG

Business Wire, Jan 26, 2009

CHICAGO -- 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: Navigant Consulting (NYSE: NCI), DryShips Inc. (NASDAQ: DRYS), Wipro Ltd. (NYSE: WIT), Citigroup (NYSE: C) and UBS AG (NYSE: UBS).

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Here are highlights from Friday's Analyst Blog:

Navigant Consulting Headed Lower

Navigant Consulting (NYSE: NCI) is a provider of specialized consulting services. The company primarily focuses on customers in industries undergoing substantial regulatory and structural changes, including construction, energy, financial services and healthcare.

Second-quarter results showed signs of weakness. Although management moderately increased its full-year revenue and EBITDA guidance, the magnitude of the increase was less than the expected contribution from the recently acquired Chicago Partners. As such, management effectively lowered its guidance for operations in the core business.

DryShips Preannounces Results

Today, DryShips Inc. (NASDAQ: DRYS) preannounced that earnings before other items would be about $34.7-39.3 million, corresponding to earnings per share of $0.63-0.71, versus $4.51 in the year-ago quarter. This compares to consensus EPS of $1.29 and our estimates of $1.69.

TCE (time-charter equivalent) revenues are expected to be about $184.2-208.7 million, and are well below the consensus estimate of $226.6 million and our estimate of $251 million. These results reflect substantially reduced spot rates as well as weak volumes due to the global economic slowdown.

Wipro's Guidance Hurts Stock

Wipro Ltd.'s (NYSE: WIT) Q3 results met expectations with nearly 9% quarter-over-quarter increase in profits, but lower Q4 expectations are impacting the shares negatively in trading today. The company now expects revenues from IT services in Q4 to be around $1.05 billion, which is approx. 5 percent less sequentially in dollar terms.

The revenue guidance includes Citi Technology Services Ltd., Citigroup's (NYSE: C) in-house IT services provider in India, which Wipro acquired in December, 2008 for $127 million with an expected 2008 revenues of about $80 million.

UBS Ests Lowered Pre-Earnings

We are maintaining our Hold on UBS AG (NYSE: UBS). UBS will report fourth quarter results on February 10.

We are lowering our per share estimates to a loss of $5.95 from a loss of $5.75 for 2008 and to earnings per share of $1.00 from $2.00 for 2009. These reductions reflect changes in assumptions largely related to the global economic slowdown, including lower revenues and higher loss provisions than previously expected. Also, we have revised our FX [foreign exchange] assumptions due to appreciation of the US$ against the Swiss franc [CHF].

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