CHICAGO, Oct. 28 /PRNewswire/ -- Zacks Equity Research
highlights Eaton Corp. (NYSE: ETN) as the Bull of the Day
and Lookheed Martin Corporation (NYSE: LMT the Bear of the
Day. In addition, Zacks Equity Research provides analysis on
Procter & Gamble (NYSE: PG), Sprint Nextel (NYSE:
S) and Comcast Corp. (NYSE: CMCSA).
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Full analysis of all these stocks is available at
http://at.zacks.com/?id=7835.
Here is a synopsis of all five stocks:
Bull of the Day:
Eaton Corp. (ETN) has gradually transformed itself from
an automotive and truck component manufacturer into a diversified
industrial enterprise with leading positions in its core
electrical, hydraulic and aerospace market segments.
Eaton's third quarter earnings of $1.60 outperformed the Zacks Consensus Estimate
of $1.38, driven by 14% end-market
growth. Also, bookings across the company's business segments
showed substantial growth, with greater strength at Electrical,
Hydraulic and Aerospace. In our view, the company's organic growth
will be driven by strength in its end-markets.
Going forward, the company expects global market conditions to
improve, especially international markets. We upgrade our
recommendation for ETN to Outperform with a target price of
$105.
Bear of the Day:
Lockheed Martin Corporation (LMT), the largest U.S.
defense contractor, reported disappointing numbers in the third
quarter, with EPS missing the Zacks Consensus Estimate and lagging
the year-ago quarterly numbers.
In the near-term, the gloom is unlikely to lift given the
overhang of defense budget cuts, a receding order backlog,
headwinds in margins, execution risk of major programs, cost
overruns, higher pension liability and risks regarding retrenchment
cost recovery.
We do not expect the situation to improve significantly in the
near future, and therefore downgrade Lockheed Martin to
Underperform.
Latest Posts on the Zacks Analyst Blog:
Procter & Gamble Reports Modest Q1
Procter & Gamble Co. (PG) reported modest results for
the first quarter of 2011. Net earnings from continuing operations
of $1.02 a share were 5% above the
97 cents a share profit posted in the
year-ago period. Earnings were also above the Zacks Consensus
Estimate of $1.00.
Procter & Gamble forecasts second-quarter 2011 net earnings
from continuing operations and core earnings to be in the range of
$1.05 to $1.11 per share, reflecting
a 4%–10% growth rate. The guidance implies that P&G will
continue to invest in innovation and various marketing program. The
Zacks Consensus Estimate for the next quarter is $1.12 per share.
For fiscal 2011, the company reaffirms its net earnings from
continuing operations and core earnings to be in the range of
$3.91–$4.01 per share, a 11%–14%
growth on a continuing operations basis and 7%–9% growth on a core
basis. The Zacks Consensus Estimate for fiscal 2011 is $3.98.
Sprint Loss Widens Again
Sprint Nextel (S), the third-largest U.S. wireless
carrier, reported third quarter 2010 adjusted net loss per share of
18 cents, which surpassed the Zacks
Consensus Estimate of net loss of 28
cents. Adjusted earnings excluded a one-time tax related to
non-cash charge of $365 million
(12 cents per share). Sprint reported
its third quarter results before the opening bell.
On a GAAP basis, Sprint posted a net loss of $911 million (30
cents per share), 91% more than the net loss of $478 million (17
cents) in the year-ago quarter. Third quarter loss widened
as Sprint spent more to upgrade its handsets and increase sales of
its products.
Consolidated operating revenue inched up 1% year over year to
$8.152 billion and was above the
Zacks Consensus Estimate of $8.023
billion. This marks the first quarterly increase in three
years. Higher revenues were driven by strong revenues from prepaid
Boost service and equipment, partially offset by lower
contributions from its wireline and post-paid wireless
businesses.
Adjusted OIBDA (operating income/loss before depreciation,
amortization, asset impairments and abandonments) fell 11% year
over year to $1.3 billion. Higher
handset subsidy as well as increased sales expenses put a drag on
adjusted OBIDA in the third quarter.
Comcast Again Beats Zacks Estimate
Comcast Corp. (CMCSA) reported third quarter 2010
financial results, which exceeded the Zacks Consensus Estimate.
Adjusted EPS in the reported quarter was 32
cents compared with 28 cents
in the prior-year quarter. Adjusted EPS includes $39 million, net of tax expense related to the
NBC Universal Transaction.
Adjusted EPS exceeds the Zacks Consensus Estimate of
30 cents. Better-than-expected
results were due to a solid customer growth, an improving
advertising market and continued strength in Business Services.
GAAP net income was $867 million
or 31 cents per share, compared with
$944 million or 33 cents per share in the prior-year quarter. Net
income declined 8.2% year over year, partly due to costs related to
its pending acquisition of NBC Universal.
Get the full analysis of all these stocks by going to
http://at.zacks.com/?id=7836.
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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