Earnings

A bunch of my stocks have announced earnings the past few days. I have been remiss in commenting.

1. BBSI - had pretty good numbers (obviously) as they were up on this atrocious day. I thought they were positive. Basically up 15% across the board. Their CEO said "We are pleased with our record second quarter earnings and anticipate a stronger performance in the third quarter." This is a great small cap company.
2. RAIL - I was really not thrilled with their earnings (FreightCar America 2Q Profit Plunges). Their EBITDA for the quarter dropped from 59m to 17m from last year. That will drop them quite a bit on the MFI lists. Here is what their CEO said (not exactly bullish):
   

   "In light of the considerably softer North American market for most railcar types, our optimization of production at low cost facilities, in conjunction with stringent cost control, contributed substantially to our profitability this quarter. We plan to take full advantage of our low cost production facilities wherever possible, while continually reviewing ways to lower our manufacturing break-even point," said Chris Ragot, President and Chief Executive Officer.

   "Orders for railcars totaled 2,262 units in the second quarter of 2007, up from 768 units ordered in the first quarter of 2007, compared with orders of 3,763 units for the same period in 2006. The backlog of unfilled orders was 5,589 units at June 30, 2007, compared with 6,006 units at March 31, 2007 and 16,846 units at June 30, 2006."

   Mr. Ragot further stated, "In this challenging environment, we continue to maintain a strong balance sheet that allows us to proceed with our share repurchase program and explore strategic growth initiatives. Our product diversification program remains on schedule and we continue to examine growth opportunities."

3. WSTG - announced their earnings tonight after the bell (Wayside Technology Group, Inc. Reports 2007 Second Quarter Results). Like RAIL, I was underwhelmed. Sales were up only 6% YoY, not exactly a high flier. Recall, this was the stock that bragged last quarter about 15 straight double digit growth quarters. They did increase their dividend a penny, so that is a sign of confidence in future cash flow.
4. PDS - I saved the worst for last (Precision Drilling Trust Reports 2007 Second Quarter Earnings). Yes even worse than RAIL in my opinion. I felt like selling prematurely (though I didn't). Here are some of their downer comments:

• During the second quarter, Precision experienced some of its lowest activity and equipment utilization levels in a decade as poor weather and continued uncertainty over the economics of natural gas drilling in western Canada led customers to limit spending.
• Precision's customer pricing in Canada declined for drilling rig operations and held for service rigs during the quarter while overall equipment utilization declined significantly from the same period in the prior year. Precision realized an average day rate decline of 9% in the quarter for its drilling rigs compared to prior year levels. In general, spot pricing was considerably weaker in the second quarter of 2007 while average day rates were bolstered by long-term contract rates and market pricing for Precision's Super Single(TM) rigs.
• the outlook for Precision over the second half of fiscal 2007 will continue to be heavily dependant on its dominant market presence in the oilfield service sector in western Canada. The recent build of underground natural gas storage levels and record industry equipment capacity are expected to keep equipment utilization levels at seasonally adjusted low levels with continued price competition.

Dang! Re-reading this really is depressing. I see nothing to like and the outlook is so bad. I don't know, I may just sell tomorrow. They are going to have to cut their dividend and that might tank them later this month. It could be time for my third early sell in 18 months of doing this, I certainly don't take it lightly.