CHICAGO, Aug. 17, 2011 /PRNewswire/ -- 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: The Home Depot Inc. (NYSE: HD), Lowe's Companies Inc. (NYSE: LOW) Urban Outfitters Inc. (Nasdaq: URBN) Gap Inc. (NYSE: GPS) and Abercrombie & Fitch Co. (NYSE: ANF).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday's Analyst Blog:

Home Depot Beats Estimates

The world's largest home improvement retailer, The Home Depot Inc. (NYSE: HD) posted second-quarter 2011 adjusted earnings of 86 cents a share. The adjusted earnings not only surpassed the prior-year quarter's earnings of 72 cents a share (an increment of 19.4%), but also outpaced the Zacks Consensus Estimate of 82 cents a share.

During the reported quarter, net sales moved up 4.2% to $20,232.0 million compared with $19,410.0 million in the prior-year quarter, and ahead of the Zacks Consensus Estimate of $19,937.0 million. The increase in net sales resulted from a growth of 4.2% in comparable store sales. Comparable store sales in U.S. stores jumped 3.5% during the second quarter.

Operating margin expanded 70 basis points (bps) to 11.3% compared with 10.6% in the prior-year quarter. Improvement in operating margin was primarily driven by effective cost management.

Balance Sheet, Cash Flow and Dividend

Home Depot ended its second-quarter 2011 with cash and cash equivalents of $2,551 million and long-term debt of $10,731 million. During the reported quarter, the company generated $4,487.0 million of cash from operations and deployed $1,251.0 million toward share buyback, $1,014.0 million for debt repayment and $469.0 million as capital expenditures.

Fiscal 2011 Guidance and Zacks Consensus

Home Depot raised its fiscal 2011 adjusted earnings guidance to $2.34 per share from $2.24 forecast earlier on the back of a 2.5% increase in sales. This represents an increase of 16% from the same period last year.

Home Depot, which competes with Lowe's Companies Inc. (NYSE: LOW), currently has a Zacks #4 Rank, implying a short-term Sell rating on the stock. Besides, the company retains a long-term Neutral recommendation.

Urban Outfitters Beats, Profit Falls

Urban Outfitters Inc. (Nasdaq: URBN), the retailer of apparel, footwear, and accessories, recently posted better-than-expected results for the second quarter ended July 31, 2011. The quarterly earnings of 35 cents a share beat the Zacks Consensus Estimate of 32 cents, but dropped 16.7% from 42 cents earned in the prior-year quarter.

Despite registering a growth in top line, the company witnessed a drop in bottom line due to a 19.1% rise in the cost of sales and an increase of 11.9% in selling, general and administrative expenses.

Urban Outfitters, which competes with Gap Inc. (NYSE: GPS) and Abercrombie & Fitch Co. (NYSE: ANF), said that total net sales climbed 10.3% to $609.2 million, and came ahead of the Zacks Consensus Estimate of $605 million. Net sales increased 10.5% to $577.3 million at the retail segment and 6.6% to $31.9 million at the wholesale segment.

Net sales by brands are as follows - Sales grew 11.9% to $272.2 million at Urban Outfitters, 6.4% to $272.6 million at Anthropologie and 25.2% to $58.7 million at Free People.

The company hinted that comparable retail segment net sales inched up 1%, whereas comparable store net sales dropped 2% during the quarter. Comparable retail segment net sales by brands rose 18% at Free People and 1% at Urban Outfitters but remained flat at Anthropologie.

Urban Outfitters noted that gross profit for the quarter declined 1.6% to $231.1 million, whereas gross margin contracted 459 basis points to 37.9% due to higher merchandise markdowns to sell through slow-moving stock of women's clothing at both Anthropologie and Urban Outfitters.

Operating income plummeted 17.7% to $88 million, whereas operating margin shriveled 500 basis points to 14.4%.

During the quarter, Urban Outfitters opened 10 new stores –– 2 Urban Outfitters stores, 4 Anthropologie stores and 4 Free People stores. The company plans to open about 55–57 new stores over the year.

Urban Outfitters ended the quarter with cash and cash equivalents of $226.4 million and shareholders' equity of $1,304.3 million. During the quarter, the company bought back 2.3 million shares, aggregating $67 million. The company still has 3.3 million shares available at its disposal under its current authorization.

Currently, Urban Outfitters holds a Zacks #3 Rank, which translates into a short-term 'Hold' rating.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

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=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon 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=5518.

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.

Copyright 2011 PR Newswire

Abercrombie and Fitch (NYSE:ANF)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Abercrombie and Fitch Charts.
Abercrombie and Fitch (NYSE:ANF)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Abercrombie and Fitch Charts.