CHICAGO, July 27, 2011 /PRNewswire/ -- Zacks Equity
Research highlights Dollar Financial (Nasdaq: DLLR) as the
Bull of the Day and Grupo Televisa S.A. (NYSE: TV) as the
Bear of the Day. In addition, Zacks Equity Research provides
analysis United Parcel Services (NYSE: UPS), 3M
Company (NYSE: MMM) and The Hershey Company (NYSE:
HSY).
(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:
Dollar Financial's (Nasdaq: DLLR) third-quarter 2011
earnings came modestly ahead of the Zacks Consensus Estimate,
benefiting primarily from a solid performance at core business
units as well as successful implementation of a business
diversification strategy.
A solid liquidity position, exposure to a somewhat
recession-proof sector and cost containment measures are expected
to drive growth in future. Going ahead, the company is also
expected to grab the opportunities through acquisitions and deploy
the available funds in a manner that will further enhance future
earnings.
Our six-month target price of $27.00 per share equates to about 13.2x our
earnings estimate for fiscal 2011. With no dividend to supplement,
the expected total return equates to 20.5% over that period.
Bear of the Day:
We downgrade our recommendation on Grupo Televisa S.A.
(NYSE: TV) to Underperform following its second-quarter 2011
financial results, which fell below the Zacks Consensus Estimates.
Televisa lost a significant amount of advertising revenue from
businesses of Mexican telecom tycoon Carlos
Slim.
Intensifying competition in the Mexican pay-TV market has forced
Televisa to spent more in order to retain and solidify its customer
base. Therefore, depreciation and amortization charges increased by
leaps and bounds while significantly hurting the company's bottom
line.
Televisa is trying hard to enter into the lucrative wireless
market of Mexico. However, we
remain concerned that the company may not get the regulatory
approval. We believe a prolonged legal battle with Carlos Slim-controlled entities will continue to
affect the overall financials of Televisa in the rest of 2011. We
do not find any near-term catalyst for the company.
Latest Posts on the Zacks Analyst Blog:
UPS Posts Record 2Q
Before the opening bell, United Parcel Services (NYSE:
UPS), the world's largest package delivery company, reported second
quarter adjusted earnings of $1.05
per share that outpaced the Zacks Consensus Estimate by a penny.
Earnings per share showed substantial 25% growth from 84 cents in the year-ago quarter.
UPS generated record earnings per share in the second quarter.
Healthy US Domestic Package revenue, strong export volumes in
International Package as well as improved performance in its Supply
Chain and Freight segment led to the quarter's outperformance.
Total revenue grew 8.1% year over year to $13.2 billion and beat the Zacks Consensus
Estimate of $13.1 billion. The
year-over-year increase reflects consolidated volume growth of 1%
and a 7.1% increase in total revenue per piece. Adjusted operating
income climbed 18.8% year over year to $1.67
billion, reflecting an operating margin of 12.6%, which was
up 110 basis points (bps).
3M Outpaces Estimates
3M Company (NYSE: MMM) reported second-quarter 2011
results before the market opened today, reporting earnings per
share from continuing operations of $1.60, in line with the Zacks Consensus estimate.
Earnings per share increased by 3.9% year over year.
Total Revenue
Total revenue in the quarter increased by 14.1% year over year
to $7.7 billion. In March 2011, the earthquake in Japan negative affected sales growth by 2.4
percentage points. The company's sales increased in all regions,
with 24.1% growth in Europe, 20.2%
in Latin America/Canada, 11.0% in Asia Pacific and 8.7% in the US.
Outlook
3M expects sales growth for full-year 2011 to be negatively
impacted by the Japan earthquake
by approximately one percentage point, operating margins by 30
basis points and earnings by $0.11 to
$0.12 per share.
The company generated significant free cash flow in
second-quarter 2011. A strong cash flow position and continuously
expanding sales revenue provide 3M ample resources to expand
through acquisition and innovation of new products.
3M is globally recognized for its innovations, which is
supported by some of its well-known brands, such as Nexcare,
Post-it, Scotch, Scotch-Brite, and Scotchgard leading the market.
We believe that continued capital expenditure with new product
launches should bolster its prospects across most end markets.
However, the company's growth objectives are largely dependent
on timing and market acceptance of its new product offerings,
including its ability to continually renew its pipeline of new
offerings and bring those to the market at acceptable price
points.
Further, the results have been impacted by worldwide economic
and capital market conditions. Negative consumer sentiment is
affecting the retail store traffic. On the corporate side, lower
employment levels are negatively reducing office supply purchases
in most companies.
3M Company, together with its subsidiaries operates as a
diversified technology company with manufacturing operations spread
over 60 countries worldwide.
Hershey Exceeds by a Penny
The Hershey Company (NYSE: HSY) has posted adjusted
quarterly earnings of 56 cents a
share in the second-quarter 2011 financial results, which slightly
exceeded the Zacks Consensus Estimate of 55
cents. It also surpassed the prior-year adjusted earnings of
51 cents per share.
On a reported basis, earnings for the quarter came in at
56 cents, up from 20 cents per share delivered in the year-ago
quarter.
The adjusted earnings in the second quarter of 2011 exclude
credits related to the Project Next Century program announced in
June 2010. The results also exclude
pre-tax charges of $9.4 million, or
2 cents per share, more than offset
by an adjustment of $11.2 million, or
2 cents a share, resulting in a net
credit of $1.8 million due to a
reduction of previous estimates.
The prior-year quarter excludes net pre-tax charges of
$86.2 million, or 31 cents per share, comprised of Project Next
Century costs of $41.5 million, or
11 cents, and a non-cash goodwill
impairment charge of $44.7 million,
or 20 cents related to the Godrej
Hershey Ltd. joint venture in India.
Management expects its total pre-tax GAAP charges and
non-recurring project implementation costs related to the Project
Next Century program to be $140 million to
$160 million for 2011.
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.
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=7158.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc.,
which was formed in 1978 by Leonard
Zacks. As a PhD from MIT 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=4582.
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.