SRE,PCG,AGL,F,HST

CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Sempra Energy (NYSE: [ SRE ]), Pacific Gas & Electric Company (NYSE: [ PCG ]), AGL Resources Inc. (NYSE: [ AGL ]), Ford Motor Co. (NYSE: [ F ]) and Host Hotels & Resorts Inc. (NYSE: [ HST ]).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ]

Here are highlights from Wednesdaya�s Analyst Blog:

Sempra Energy Making Solar Inroads

Sempra Energy (NYSE: [ SRE ]) entered into a 20-year power-purchase agreement with Pacific Gas & Electric Company (NYSE: [ PCG ]) to sell 150 megawatts (MW) of solar power produced at its Mesquite Solar I project in Arizona. After completion in early 2013, Mesquite Solar I will produce enough emission-free electricity to power approximately 56,000 homes.

Sempra Energy expects to begin construction on Mesquite Solar I in 2011. The power-purchase contract with Pacific Gas for Mesquite Solar I is, however, subject to approval of the California Public Utilities Commission.

Mesquite Solar I is the first phase of Sempra Energya�s planned Mesquite Solar complex in Arlington, Arizona. The company, in the long-run, plans to build up to 600 MW of solar power at the site, which would make it the largest photovoltaic solar power plant in North America. The solar installation will connect to the power grid at the nearby Hassayampa switchyard, a major energy hub that provides access to consumer markets throughout the Western U.S.

Mesquite Solar I is Sempra Generation's third solar energy project. The company already has two solar facilities in Nevada a"10-MW El Dorado Solar facility and the 48-MW Copper Mountain Solar project.

Sempra Energy is a Southern California-based energy services holding company involved in the sale, distribution, storage, and transportation of natural gas. Its subsidiary Sempra LNG develops, owns and operates liquefied natural gas receipt terminals serving North American markets. Sempra competes with other companies for construction and operation of liquefied natural gas receiving terminals and purchase of the same.

Sempra Energya�s diversified basket of businesses insulates its operations to a significant degree from regulatory rate risks, compared to integrated utility peers.

We believe that Sempra Energy presents a lower risk profile relative to its peers. This bullish outlook is supported by stable utility earnings, steady progress at its LNG terminals and Sunrise Powerlink transmission line, ongoing installations of smart meter and renewable power projects in the Pacific Southwest.

However, on account of pending regulatory issues, and execution risk associated with ongoing infrastructure projects, we reiterate our Neutral recommendation on the Zacks #3 Rank Sempra Energy stock. In the near term we would advise investors to focus on its Zacks #1 Rank (Strong Buy) peers like AGL Resources Inc. (NYSE: [ AGL ]).

Ford Sales Up 27% in Asia, Africa

Ford Motor Co. (NYSE: [ F ]) has posted a 27% rise in sales to 78,700 units in its Asia Pacific and Africa region, including Australia, China, India, Thailand and South Africa. This was attributable to impressive sales of the newly launched Ford Fiesta in South East Asia and Ford Figo in India.

In China, sales went up 26% to 50,970 units. Meanwhile, sales in India jumped 146% to 8,380 units, led by strong demand for Ford Figo.

In Thailand, Forda�s sales more than tripled to 2,049 units, driven by the launch of all-new Ford Fiesta. In fact, the sales marked the automakera�s best monthly performance in the country since December 2007.

Ford anticipates 70% of its sales growth to come from its Asia-Pacific and Africa region in the next 10 years, mostly from China and India. Industry sales in the region are expected to rise from 16 million units in 2009 to 35 million units by 2018.

Ford has been pursuing a major expansion plan in the emerging countries, including Argentina, Brazil, China, India and Thailand. Through the expansion plan, the automaker aims to tap the growing market potential in the countries, especially those in Asia.

Since last year, Ford has invested $510 million in China and $500 million in India as part of its expansion plan. Recently, Ford and Japana�s Mazda Motor announced their plan to invest $350 million in their Auto Alliance joint venture plant in Rayong, Thailand. This comes on top of a $450 million investment for a new plant at the same location made in June this year.

Host Hotels Reports In Line

Host Hotels & Resorts Inc. (NYSE: [ HST ]), the largest lodging real estate investment trust (REIT) in the U.S., reported third quarter 2010 FFO (funds from operations) of $75 million or 11 cents per share, compared to $66 million or 11 cents per share in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. The third quarter 2010 reported FFO was in line with the Zacks Consensus Estimate.

The third quarter 2010 reported FFO included certain non-recurring items, excluding which FFO during the quarter was 13 cents per share. Total revenue increased 11.4% during the quarter to $1.0 billion compared to the year-earlier quarter. Total quarterly revenue was well ahead of the Zacks Consensus Estimate of $969 million. Comparable hotel revenue per available room (RevPAR) increased 8.8% during the quarter driven by a rise in occupancy and average daily rates. The increase in RevPAR was primarily due to a 4.5% increase in average daily rate along with a 2.9% improvement in occupancy.

Comparable hotel adjusted operating margins during the quarter increased 150 bps, despite a 50 bps decline in revenues due to incremental attrition and cancellation fees compared to the same period in 2009. During the quarter, Host Hotels reported an adjusted EBITDA (Earnings before Interest Expense, Income Taxes, Depreciation and Amortization) of $163 million compared to $139 million in the year-ago period. During the quarter, the company acquired three premium hotels in New York, Chicago, and London for a total of $430 million, including assumed consolidated debt of $166 million. Subsequent to the quarter end, Host Hotels acquired a 245-room JW Marriott Hotel Rio de Janeiro, Brazil, for approximately $48 million.

Total capital expenditures during the quarter were $49 million, which included return on investment (ROI) and repositioning projects of approximately $17 million. For fiscal 2010, Host Hotels expects total capital expenditure in the range of $300 million to $320 million.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: [ http://at.zacks.com/?id=5516 ]

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4580 ].

Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.

Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contributing Sources

Market Wire

N@N

SRE,PCG,AGL,F,HST