Schlumberger and Kinetic Concepts Rise on Spectacular Earnings

Disappointing earnings from Google and Caterpillar pulled stocks sharply lower in Friday morning trading. The Nasdaq led the major indices to the downside with a loss of 1.5%, while the Dow and S&P gave up 1.2% each.

Friday had its share of winners, and the following leaders have high PowerRatings (for Investors). A rating of 10 is highest, and our data from 1995 through 2006 show that stocks with high PowerRatings have historically outperformed over the next twelve months. Among the winners today are a number of stocks with high PowerRatings (for Investors).

• Kinetic Concepts (KCI@KCI | Quote | Chart | News | PowerRating) is up 14.4% on Friday morning to $65.05. Kinetic Concepts, a medical appliance and equipment provider, announced a 24.5% increase in net earnings for the second quarter. Earnings per share beat analysts' consensus. Further, the company raised its earnings forecast for the fiscal 2007 in line or above estimates. KCI has a high PowerRating of 8 and its shares are up 64% year-to-date.
• Cytec Industries (CYT@CYT | Quote | Chart | News | PowerRating) is up 3.8% on Friday morning to $72.30 and has the highest PowerRating of 10. This S&P 400 Midcap developer of specialty chemicals released earnings after the close on Thursday. Cytec posted $1.11 earnings per share beating analysts' expectations of $0.95 earnings per share. Net earnings for the second quarter rose to $54.8 million from $48.5 million in the same period one year ago. Cytec shares are up 27% year-to-date and has a market cap of $3.45 billion.
• Schlumberger (SLB@SLB | Quote | Chart | News | PowerRating) shares added 2.8% on Friday to $96.03. Schlumberger, the world's largest oilfield-services provider, posted Q2 profits that rose 47% on increased drilling demand by oil and gas producers, especially in the Middle East and Europe. Schlumberger has now beaten Wall Street expectations for 11 quarters in a row. So far this year, SLB shares have gained 51%.  SLB has a high PowerRating (for Investors) of 9.