The Zacks Analyst Blog Highlights: Bank of America Corporation, Citigroup, Morgan Stanley, PNC Financial Services Group & McD..
January 25 2012 - 3:30AM
Zacks
For Immediate Release
Chicago, IL – January 25, 2012 – 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 Bank of America Corporation (BAC),
Citigroup Inc. (C), Morgan
Stanley (MS), PNC Financial Services Group
Inc. (PNC) and McDonald’s Corporation
(MCD).
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:
BofA Targets Additional Cost Cuts
Bank of America Corporation (BAC) is targeting
more cost cuts as part of its plan to boost efficiency, according
to a Bloomberg report. The company already aimed at $5 billion in
cost saves in the first phase of its ongoing initiative Project New
BAC. Further, it expects to save additional costs of up to $3
billion in the second phase, as per the report, which cited the
company's CEO's message during the January 19 employee meeting.
BofA launched a company-wide efficiency initiative with a goal
to improve earnings by lowering expenses, increasing revenue,
strengthening risk control and making changes to allow better
execution and customer service, while returning more value to
shareholders.
Last September, the company announced that it will retrench
about 30,000 workers under the first phase of its ongoing
cost-cutting initiative - Project New BAC. The first phase
comprised BofA's consumer-facing businesses and support operations.
The second phase involves investment and commercial banking,
trading, and wealth-management business lines. The second phase is
expected to be accomplished in April this year.
Notably, BofA is not the only institution, who is leaving so
many jobless. Some of the U.S. banks, such as Citigroup
Inc. (C), Morgan Stanley (MS) and
PNC Financial Services Group Inc. (PNC) also
revealed their plans to reduce hundreds of jobs earlier.
Last week, BofA reported its fourth quarter earnings of 15 cents
per share, substantially lower than the Zacks Consensus Estimate of
23 cents. However, this compares favorably with the loss of 16
cents in the prior-year quarter. The sale of non-core assets and
accounting gains made it possible for the company to remain
profitable.
BofA is making every effort to keep itself afloat. Initiatives
such as realigning the balance sheet in accordance with regulatory
changes and shedding non-core assets to strengthen its capital
position vouch for its good business intention. It is poised to
benefit from its large-scale operations and faster-than-expected
improvement in credit quality.
Through the sale of its non-core assets, BofA has been striving
hard to soar up its capital levels and pass the fourth round stress
test to be conducted by the Federal Reserve. However, the company
will have an even higher stumbling block to clear this time as it
has significant exposure to the stressed European countries.
Naturally, its chances of passing the test and gaining eligibility
to enhance shareholders value are rather dim.
The shares of BofA retain a Zacks #3 Rank, which translates into
a short-term Hold rating.
McDonald’s Posts Strong 4Q
McDonald’s Corporation (MCD) posted fourth
quarter 2011 earnings of $1.33 per share, surpassing the Zacks
Consensus Estimate of $1.30. Fourth quarter earnings were 15%
higher than the year-ago level of $1.16. The currency movements did
not impact the quarterly results.
Value offerings and premium products coupled with higher
comparable sales were primarily responsible for the earnings
growth. The company also derived significant synergies from the
“Plan to Win” program, which is aimed toward sustaining growth by
driving restaurant visits, providing everyday value, innovating new
menu items, and re-imaging restaurant and marketing
campaigns.
The company’s full-year earnings per share were $5.27 versus
$4.58 in fiscal 2010. The currency favorably impacted the fiscal
earnings by 19 cents per share.
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
BANK OF AMER CP (BAC): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
MCDONALDS CORP (MCD): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
PNC FINL SVC CP (PNC): Free Stock Analysis Report
To read this article on Zacks.com click here.
PNC Financial Services (NYSE:PNC)
Historical Stock Chart
From May 2024 to Jun 2024
PNC Financial Services (NYSE:PNC)
Historical Stock Chart
From Jun 2023 to Jun 2024