CHICAGO, Feb. 17, 2011 /PRNewswire/ -- Zacks Equity
Research highlights: Stanley
Black & Decker (NYSE: SWK) as the Bull of the
Day and Sara Lee Corp. (NYSE: SLE) as the Bear of the
Day. In addition, Zacks Equity Research provides analysis on
Dean Foods Company (NYSE: DF), Air Products and
Chemicals (NYSE: APD) and Airgas
Inc. (NYSE: ARG).
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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:
Stanley Black &
Decker's (NYSE: SWK) fourth quarter results were
impressive, with the top line growing 149% and EPS surpassing the
Zacks Consensus Estimate by a wide margin.
Stanley's financial guidance and 21% hike in cost synergies
expected from the BDK acquisition inspired a great deal of
confidence that boosted the growth prospects of the company. It is
also anticipated that all three of its segments would deliver
organic revenue growth in the low- to mid-single digits in
2011.
Moreover, Stanley's strategy of shifting its business portfolio
toward favored growth markets through acquisitions and divestitures
enables expansion in its global business platform. Anticipating
strong growth ahead, we upgrade Stanley to Outperform.
Bear of the Day:
Sara Lee Corp. (NYSE: SLE) is a global manufacturer
as well as marketer of high-quality brand products and possesses a
formidable portfolio of well-established brands. However, as the
company uses different commodities and raw materials, cost-push
inflation remains a key risk factor.
Further, with the intense competition prevailing in the branded
food market, Sara Lee is constantly
under pressure to maintain its position. In addition, after the
resignation of Sara Lee's Chairman
and Chief Executive Officer Brenda
Barnes and the divestiture of its North American bakery
business, there are big questions going forward.
Sara Lee is considering a
sell-off itself to JBS, a Brazilian company. We currently downgrade
the shares of Sara Lee from Neutral
to Underperform.
Latest Posts on the Zacks Analyst Blog:
Dean Foods Beats by a Penny
Dean Foods Company's (NYSE: DF) adjusted earnings
per share for the fourth quarter fiscal 2010 came in at
15 cents, well behind 31 cents recorded in the year-ago quarter but
beat the Zacks Consensus Estimate by a penny.
Dean Foods' full-year 2010 earnings of 80
cents per share fell 49.7% from the prior-fiscal earnings of
$1.59 but surpassed the Zacks
Consensus Estimate by a penny.
Financial Discussion
Dean Foods faces an exceptionally tough fiscal 2010, as the
wholesale pricing of its private label milk at Fresh Dairy
Direct-Morningstar remained under pressure. The company also faces
volume weakness in the whole year.
Dean Foods' quarterly net sales grew 5.5% year over year to
$3,153.0 million, missing the Zacks
Consensus Estimate of $3,176.0
million. The growth was primarily a pass-through of higher
commodity costs at Fresh Dairy Direct-Morningstar to consumers in
the form of higher prices and record top and bottom line
performance at WhiteWave-Alpro that were partially offset by volume
softness at Fresh Dairy Direct-Morningstar.
Segment-wise, during the fourth quarter, Dean Foods' Fresh Dairy
Direct-Morningstar sales increased 5.2% to $2,625.9 million while its WhiteWave-Alpro's
sales increased 7% to $527.0
million.
For the full fiscal 2010, the company's sales grew 9.1% year
over year to $12,122.9 million fell
short the Zacks Consensus Estimate of $12,164.0 million.
Air Products Withdraws Airgas Bid
Air Products and Chemicals (NYSE: APD)
withdrew its $5.9 billion offer to
acquire Airgas Inc. (NYSE: ARG) after a Delaware
Judge upheld Airgas' poison pill defense. Air Products had taken
the case to the Delaware court so
that it would be allowed to buy the company for $70 per share.
According to management of Air Products, the Board of Directors
of Airgas barred its shareholders from deciding whether they wanted
to accept the all cash offer of $70.00. Subsequently, Air Products decided to
withdraw the offer. Airgas, on the other hand, had a different take
and felt that the price offered was not sufficient to compensate
the shareholders.
The Air Products and Airgas battle continues from October 2009 when Air Products made an all-stock
offer at an implied value of $60 per
share to acquire Airgas. After being rejected, Air Products upped
its offer to a cash and stock proposal with an implied value of
$62 per share in December
2009.
However, once again in February
2010, Air Products came up with an unsolicited public offer
of $60 per share in cash. Airgas'
board had relentlessly rejected all the offers on the premise that
it highly undervalued the company and its future prospects,
including its industry leading position in the packaged gas
business, unrivaled platform and benefits expected from the
substantial recent investments.
In December last year, Air Products increased its offer to
$70 per share and called it the best
and final offer. The board of Airgas rejected the offer again
stating that the $70 per share offer
was inadequate and that the value of Airgas should be at least
$78.00 per share.
The acquisition would have helped Air Products venture into the
North American gas market and strengthen its packaged gas
business.
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.
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