For Immediate Release
Chicago, IL – November 3, 2010 – Zacks Equity Research highlights BJ's Restaurants (BJRI) as the Bull of the Day and Skechers' (SKX) the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Motors (MTLQQ), BP Plc (BP) and Archer Daniels Midland Co. (ADM).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506.
Here is a synopsis of all five stocks:
Bull of the Day:
BJ's Restaurants (BJRI) remains well positioned to sustain its growth momentum while generating improved earnings on the heels of efficient operations and innovative offerings. These also help the company to drive traffic and post positive same-store sales growth.
The company also boasts of a debt-free balance sheet. With a slow revival in the economy, the company plans to accelerate its unit growth in 2011, and believes that there is room for at least 300 restaurants.
Its core California market, which has been under pressure due to high unemployment, also started to post modest same-store sales and promise substantial growth potential for the future. Hence, we upgrade the stock from Neutral to Outperform.
Bear of the Day:
Skechers' (SKX) third-quarter 2010 results missed the Zacks expectations for 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. Following the earnings release, the Zacks Consensus Estimates have been falling, with analysts remaining bearish on the stock, prompting us to revise our recommendation. We now expect the stock to Underperform.
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.
Latest Posts on the Zacks Analyst Blog
GM IPO to Raise $10 Billion
Sources have revealed that General Motors (MTLQQ) will scoop out $10 billion from the stock market through its initial public offering (IPO) of common stock, to be held in November 18, 2010.
Each of the 365 million common shares that make up the IPO is expected to sell within $26-$29 range, higher than a forecasted price of $20 to $25, provided by then Chairman Ed Whitacre last month.
Post bankruptcy, GM is primarily owned by the U.S. and Canada governments, and by a trust fund providing medical benefits to United Auto Workers (UAW) retirees.
The U.S. government holds a 61% stake, the UAW union holds a 17.5% stake through its Retiree Medical Benefits Trust and the Canadian government holds 11.7%. The remaining shares went to the bondholders of the old company. GM received $52 billion in U.S. Treasury (“UST”) loans by selling 61% ownership stake of the company and C$1.5 billion ($1.5 billion) in Export Development Canada (“EDC”) loans while going through the bankruptcy protection last year.
BP Beats on Improved Prices
BP Plc (BP) reported third-quarter 2010 earnings of $1.73 per American Depositary Share (ADS), well above the Zacks Consensus Estimate of $1.51 and the year-earlier profit of $1.61. We have adjusted reported earnings for comparable periods for non-operating items.
The positive comparisons were driven by higher realized oil prices, lower depreciation and lower-than-usual tax rates.
The company's revenue jumped approximately 10% to $74,652 million from $67,856 million in the year-ago quarter.
BP is well on track with its $30 billion assets sale. The new chief executive said early last month that the company trying to reduce operator ships it holds in the Gulf of Mexico. He also hinted that BP is considering resumption of its dividend payment early next year.
All these positive initiatives have reflected in the company's share performance. BP ADSs rose more than 17% in the last two months.
Archer Daniels Misses Estimate
Archer Daniels Midland Co.'s (ADM) fiscal 2011 first-quarter earnings plunged to $345 million or 54 cents per share from $496 million or 77 cents per share in the year-ago quarter. Quarterly earnings fell short of the Zacks Consensus Estimate of 75 cents per share.
The soft quarterly result was primarily due to lower segment profit and negative discrepancy from changing LIFO inventory valuations.
Archer Daniels' quarterly net sales increased 12.6% year over year to $16.8 billion, also beating the Zacks Consensus Estimate of $15.5 billion. The growth was mainly attributable to a 13.7% growth in Corn Processing revenues and a 1.6% rise in Oilseeds Processing revenue sto $6.5 billion, partially offset by a 22.8% decline in Agricultural Services revenues to $6.5 billion.
Total segment operating profit for Archer Daniels dropped to $765 million from $774 million in the prior-year quarter. Operating profit for Oilseeds Processing segment grew $24 million to $308 million from $284 million in the year-ago period, reflecting better crushing volumes in South America and Europe, improved margins in soybean and softseed crushing.
Archer Daniels' Corn Processing segment swung to an operating profit of $341 million from an operating profit of $188 million last year. The increase was primarily attributable to a significant improvement in bioproducts performance stemming from better margins for ethanol and lysine aided by lower net corn costs. However, growth in segment operating income was partially offset by lower average selling prices of sweeteners and starches.
Archer Daniels' Agricultural Services segment recorded a quarterly operating profit of $132 million compared with an operating profit of $175 million in the year-ago period due to the negative impact from supply shifts early in the quarter. Operating loss from the Other business segment came in at $16 million as opposed to an operating profit of $127 million in the year-ago quarter.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
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 analyst 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 by visiting http://at.zacks.com/?id=7159.
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=5509.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
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.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
ARCHER DANIELS (ADM): Free Stock Analysis Report
BJ'S RESTAURANT (BJRI): Free Stock Analysis Report
BP PLC (BP): Free Stock Analysis Report
MOTORS LIQUIDAT (MTLQQ): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis Report
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
