|
CHICAGO--(BUSINESS
WIRE)--Zacks.com announces the list of stocks featured in the Analyst Blog.
Every day the Zacks Equity Research analysts discuss the latest news and events
impacting stocks and the financial markets. Stocks recently featured in the blog
include: SAP AG (NYSE: SAP), H.J. Heinz Co (NYSE: HNZ),
NewAlliance Bancshares, Inc. (NYSE: NAL), Norfolk Southern Corp.
(NYSE: NSC) and Home Diagnostics, Inc. (Nasdaq: HDIX).
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 Thursday’s Analyst
Blog:
SAP Growth Getting Challenged
SAP AG (NYSE: SAP) reported slightly higher revenues and
weaker-than-expected earnings in second quarter of 2008 due to the costs of BOBJ
acquisition. The company continued its growth in Asia, Americas and Europe.
Additionally, the company proved it is still competitive with the larger
deals, winning Heinz Company (NYSE: HNZ) and Hallmark during the second
quarter. Despite this, the uncertainty regarding its willingness to look for
larger acquisitions to help fuel its growth, compared to its previous organic
growth strategy is likely to hinder the company’s stock
performance in the near term.
NewAlliance Difficulties Priced In
NewAlliance Bancshares, Inc.’s (NYSE: NAL)
2Q08 diluted earnings of $0.12 per share were one penny short of our estimate as
well consensus. The miss was primarily due to higher-than-expected provision
expense.
Credit quality though still quite solid, weakened slightly during the
quarter, with non-performing loans up 13 bps sequentially to 0.53% of total
loans. Net interest margin increased 11 basis points to 2.67%, mainly due to
lower cost of funds. While the company is expected to continue to benefit from
its strong capital position and credit quality, relative to its peers;
increasing credit costs will keep the earnings under pressure.
Norfolk Southern Target Higher
We are maintaining our Hold rating on Norfolk Southern Corp. (NYSE:
NSC), but raising our target price to $70. In its second quarter report, NSC
posted EPS of $1.18, well above the consensus and Zacks estimate of $1.05,
largely due to better-than-expected revenue growth.
Revenues rose 16% due to a 14% gain in revenue yield, partly offset by a 2%
volume decline. We are increasing our diluted EPS estimates to $4.30 from $4.05
for 2008 and to $4.90 from $4.60 for 2009. We expect results to benefit from
continued strong pricing, though volumes should decrease due to economic
weakness. Fuel costs will likely prove a significant headwind. NSC recently
increased the dividend 10% to a $1.28 annual rate and has increased the dividend
23% over the last twelve months.
Home Diagnostics Getting Bigger
Home Diagnostics, Inc. (Nasdaq: HDIX) is small but growing player in
the $7 billion worldwide blood glucose monitoring market, estimated to be
growing 8% per annum in North America and 17% per annum outside of North
America. The company markets its products through 40,000 retail chains and
wholesalers, capturing 3.6% of the market.
The company reported second quarter revenue growth of 18.9% year-over-year,
slightly higher than our estimates. Barring retail, growth was seen across all
the revenue channels. Home Diagnostics' integrated sales approach and
co-branding initiatives with retails are paying off, enabling them to capture
incremental market share. We expect this trend to continue. The company expects
to launch two new products, TRUEresult and TRUEto go, in the second half of
2008.
Want more from Zacks Equity Research? Subscribe to the free Profit from the
Pros newsletter: http://at.zacks.com/?id=2649.
|
(0 voto)
