CHICAGO, Jan. 24, 2011 /PRNewswire/ -- Zacks Equity
Research highlights: Walgreen Co. (NYSE: WAG) as the Bull of
the Day and Skechers U.S.A. (NYSE: SKX) as the Bear of the
Day. In addition, Zacks Equity Research provides analysis on
General Electric Company (NYSE: GE), Bank of America
Corporation (NYSE: BAC) and Skyworks Solutions, Inc.
(Nasdaq: SWKS).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Full analysis of all these stocks is available at
http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Bull of the Day:
Walgreen Co. (NYSE: WAG) reported an EPS of $0.62 in the first quarter of fiscal 2011, well
above both the Zacks Consensus Estimate of $0.54 and the year-ago quarter's $0.49.
The company's strategy of slow-paced store expansion along with
operating expertise has made it a leader in the retail drug store
industry. We are also encouraged by the company's progress in
customer-centric retailing (CCR) rollout and cost-saving
initiatives. Meanwhile, the company is trying to grab a share of
the growing US immunization market.
Although Walgreen has been affected due to high unemployment and
lower discretionary spending, we expect the situation to improve
gradually as the economy recovers. Subsequent to first quarter
results, we have raised estimates for both revenues and earnings.
Given these factors, we upgrade the stock to Outperform.
Bear of the Day:
Skechers U.S.A. (NYSE: SKX) third-quarter 2010 results
missed the Zacks expectations for the top and bottom lines,
reflecting sluggish sales trends and order cancellations.
Consequently, total inventories increased 70.3% to $326.7 million, over the prior-year quarter.
Management hinted that extended delivery times also led to the
inventory pile-up. However, Skechers indicated that it would try to
lower its inventory level over the next two quarters, while
generating reasonable margins.
We believe that international business should act as a catalyst
to normalize the inventory level. Currently, we are maintaining our
Underperform recommendation on the stock until we find any catalyst
triggering a change in our opinion.
Latest Posts on the Zacks Analyst Blog:
General Electric Outperforms
General Electric Company (NYSE: GE) released its fourth
quarter 2010 earnings results before the opening bell today,
reporting earnings per share from continuing operations of
$0.36, above the Zacks Consensus
Estimate of $0.32, up 33% year over
year. This was the third consecutive quarter in which the company
witnessed strong growth in earnings.
For full year 2010, earnings per share from continuing operation
were $1.15, beating the Zacks
consensus Estimate by 3 cents and
increasing by 15% from 2009.
Revenue
Total revenue in the quarter inched up for the first time in
nine quarters by 1% to $41.4 billion,
above the Zacks Consensus Estimate of $33.7
billion. The company continues to benefit from the improving
economic environment. Full year revenues were $150.2 billion, down 3% year over year but above
the Zacks Consensus Estimate of $144.4
billion.
Total orders in the quarter increased by 12% year over year,
with the total backlog reaching a record level of $175 billion, up $3.1
billion. Orders for equipments increased by 20% and for
services were up 5%. Orders in Energy Infrastructure surged 4%.
Segment Details
Energy Infrastructure revenue for the quarter decreased by 3%
year over year to $11.0 billion.
Technology Infrastructure revenue was $10.9
billion, up 9%. Revenues at NBC Universal increased by 12%
to $4.8 billion.
GE Capital revenue declined by 4% to $11.9 billion, while Home & Business
Solutions revenue increased by 5% to 2.3 billion.
BofA Disappoints on Writedown
Bank of America Corporation's (NYSE: BAC) fourth quarter
earnings came in at 4 cents per
share, substantially lower than the Zacks Consensus Estimate of
19 cents. However, this compares
favorably with the loss of 60 cents
in the prior-year quarter.
Earnings for the reported quarter excluded a previously
announced goodwill impairment charge of $2
billion related to its Home Loans and Insurance business.
Considering this charge, BofA reported a net loss of $1.2 billion or 16
cents per share, compared with a net loss of
$194 million or 60 cents per share in the year-ago
quarter. Results for the year-ago quarter included a $4 billion charge related to Troubled Asset
Relief Program (TARP).
Results were also marred by a $3.0
billion increase in provision expense related to the
Government Sponsored Enterprises (GSEs) and $1.5 billion in litigation expenses.
Lower credit costs, higher net interest income and increased
card income were among the positives. However, reduced mortgage
banking income, lower non-interest income and higher non-interest
expense were the downside.
For full year 2010, excluding a goodwill impairment charge of
$12.4 billion, the company earned
86 cents per share, compared with a
loss of 29 cents in 2009. Results
missed the Zacks Consensus Estimate of $1.03.
Skyworks Misses by a Penny
Skyworks Solutions, Inc. (Nasdaq: SWKS) posted a net
income of $60.9 million or
32 cents in the first quarter of
fiscal 2011, more than double from a net income of $28.0 million or 16
cents in the year-ago quarter. Excluding one-time items, but
including stock-based compensation expenses, net income per share
came in at 38 cents, missing the
Zacks Consensus Estimate by a penny.
Revenues of $335.1 million were up
37% from the year-ago quarter and up 7% sequentially. The reported
was slightly ahead of the management's guidance of $330 million – $335
million and beat the Zacks Consensus Estimate of
$332 million.
Skyworks continues to benefit from strong underlying demand in
the mobile Internet market driven by market share gains and new
product ramps. The market for smartphones is growing by leaps and
bounds – four times the growth rate of the traditional cellular
handset. Skyworks continues to benefit from the rising tide of
increasing radio frequency (RF) content associated with 3G and 4G
platforms.
The products from Skyworks support all smartphone and tablet
operating systems including Android, Symbian, Windows Mobile and
others.
Skyworks continues to gain traction on the network
infrastructure side of the mobile Internet connection as operators
install new base stations, new routers, and back-haul equipment to
expand coverage of data services and prepare for next generation
LTE deployments. As carriers like Verizon and AT&T accelerate
their LTE plans, Skyworks expects a solid opportunity for growth in
the coming years with its broad product portfolio.
Get the full analysis of all these stocks by going to
http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two
stocks that are likely to outperform (Bull) or underperform (Bear)
the markets over the next 3-6 months.
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