For Immediate Release
Chicago, IL – November 30, 2011 – Zacks Equity Research
highlights Cabela's, Inc. (CAB) as the Bull of the
Day and Willis Group Holdings, Plc (WSH) as the
Bear of the Day. In addition, Zacks Equity Research provides
analysis on Guess? Inc. (GES), Abercrombie
& Fitch Co. (ANF) and Gap Inc.
(GPS).
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:
Cabela's, Inc. (CAB) third-quarter 2011
earnings of $0.50 per share beat the Zacks Consensus Estimate of
$0.44, and surged 61.3% from the prior-year quarter. The quarter
witnessed healthy revenue growth and profitability at its retail
segment, sturdy performance at Cabela's CLUB Visa program, strong
merchandise gross margin and increased market share.
Merchandise gross margin expanded 140 basis points to 35.9%
during the quarter. Management reiterated its long-term goal of
increasing the margin by 200-300 basis points. Driven by improving
trends, the company now expects earnings to beat the consensus in
fiscal 2011 and increase at a low double-digit rate in fiscal
2012.
The company also remains focused on alleviating bad debt risk in
its credit card business. The gradual improvement in the economy
has lowered delinquencies and charge-offs.
Bear of the Day:
We are downgrading our recommendation on Willis Group
Holdings, Plc (WSH) to Underperform from Neutral due to
the headwind from The Loan Protector business that is expected to
weigh on North American results. The soft insurance market is
likely to continue.
Additionally, the weakness in the US economy will remain a
headwind and restrict any significant top-line growth in the
company. Willis also expects to incur pre-tax charges of
approximately $160 million in 2011, up from $130 million expected
earlier.
Our six-month target price of $31.00 equates to about 11.2x our
earnings estimate for 2011. This target price along with an annual
dividend of $1.04 implies an expected negative return of about 8%
over that period, which is consistent with our Underperform
recommendation.
Latest Posts on the Zacks Analyst Blog:
Earnings Preview: Guess? Inc.
Guess? Inc. (GES), one of the world’s leading
designer and distributor of lifestyle apparels, is scheduled to
report its third quarter 2012 financial results before the opening
bells on November 30, 2011.
The current Zacks Consensus Estimate for the quarter’s earnings
is pegged at 74 cents a share. The Zacks Consensus Estimate
projects revenues for the quarter to come in at $658 million.
Second Quarter 2012 Recap
Guess? Inc., which faces stiff competition from
Abercrombie & Fitch Co. (ANF) and Gap
Inc. (GPS), posted second quarter 2012 adjusted earnings
per share (EPS) of 84 cents, which surpassed the Zacks estimate by
3 cents. It also exceeded the year-ago earnings of 72 cents by
16.7%.
Revenues in the quarter soared 17.3% year over year to $677.2
million. In constant dollar terms, net revenue went up 9.5% from
the previous year.
Operating income grew 17.3% to $113.0 million, reflecting
favorable currency, volume/mix gains and lower overheads.
Operating Income margin remained flat with the prior year
quarter at 16.7%. Product margin climbed up owing to higher
relative occupancy, distribution and selling expenses.
Read The Whole Story at Guess? Beats; Profits Overseas
Management Guidance
Based on the results posted in the second quarter, the company
estimated the third quarter diluted earnings to be in the range of
71 cents to 74 cents. For fiscal 2012, the company expects earnings
in the range of $3.25 to $3.35 and GAAP diluted earnings per share
between $3.06 and $3.16.
Third-Quarter 2012 Zacks Consensus
Earnings estimates for the third quarter of 2012, as provided by
the analysts, range from a low of 70 cents to a high of 77 cents.
Thus, the current Zacks Consensus Estimate for the quarter is
pegged at 74 cents per share, reflecting a year-over-year decline
of one penny.
Over the past 30 days, none of the analysts have revised the
earnings estimate. Hence, the Zacks Consensus Estimate did not
change. However, the estimate increased by 1 penny over the last 90
days.
Earnings History: Ahead of Zacks
With respect to earnings surprises, Guess? topped the Zacks
Consensus Estimate in all the preceding four quarters. Over the
last four quarters, the earnings surprise ranged from 3.70% to
27.12%, with the average earnings surprise being 15.14%, suggesting
that Guess? has always outperformed the Zacks Consensus Estimate
over that period.
Recommendation
The company’s in-house team of dedicated designers and product
specialists enable the company to stay ahead in the face of
changing lifestyle and fashion trends by bringing innovative and
unique products to its customers. However, stiff competition from
numerous manufacturers, importers and distributors; having
significantly greater financial, distribution, advertising and
marketing resources concerns us.
Currently, we prefer to rate the stock as Neutral. However,
Guess? holds the Zacks #4 Rank, which translates into a short-term
'Sell' rating.
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
ABERCROMBIE (ANF): Free Stock Analysis Report
CABELAS INC (CAB): Free Stock Analysis Report
GUESS INC (GES): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
WILLIS GP HLDGS (WSH): Free Stock Analysis Report
Zacks Investment Research
Abercrombie and Fitch (NYSE:ANF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Abercrombie and Fitch (NYSE:ANF)
Historical Stock Chart
From Jul 2023 to Jul 2024