CHICAGO, Feb. 9, 2011 /PRNewswire/ -- Zacks Equity
Research highlights: Apple Inc. (Nasdaq: AAPL) as the Bull
of the Day and Plexus Corp. (Nasdaq: PLXS) as the Bear of
the Day. In addition, Zacks Equity Research provides analysis on
Toyota Motor Corp. (NYSE: TM), Avon Products Inc.
(NYSE: AVP) and NYSE Euronext Inc. (NYSE: NYX).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
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:
Apple Inc.'s (Nasdaq: AAPL) posted stellar first quarter
2011 results beating the Zacks Consensus Estimate. The
outperformance was driven by strong iPhone, Mac and iPad sales.
Over the last four quarters, Apple has surpassed the Zacks
Consensus Estimate by 21.3%.
The outlook for Mac, iPad and iPhone remains robust, backed by
domestic and international demand, boding well for Apple's revenues
and earnings. With a loyal customer base, international expansion,
competitive pricing strategy and solid cash in hand, we remain
positive on its long-term growth. Moreover, we expect Apple to
introduce new products this year to compete against new
Android-based phones and tablet PCs.
We are also positive on the addition of Verizon as a carrier
that will help it double its customer base. Stronger-than-expected
iPhone and iPad sales will help Apple gain increasing smartphone
market share. We expect the company to outperform its peers this
year and thus we again raise our 2011 revenue and EPS estimates. We
upgrade Apple shares to Outperform and raise our price target to
$422.00.
Bear of the Day:
Plexus Corp. (Nasdaq: PLXS) posted mixed first quarter
2011 results with earnings surpassing but revenues missing the
respective Zacks Consensus Estimates marginally. Plexus reduced its
outlook for the next two quarters of 2011 due to significant
headwinds resulting from a slow down in production for two
significant customers, an increase in operating costs and a
significant production delay for the Coca-Cola Company.
Plexus' weak revenue outlook will weigh on the company's 2011
results. Intense competition in the EMS market, small market share,
continued component challenges and supply chain constraints pose
threats.
We remain apprehensive about the company meeting its 2011
targets and expect revenues to be down with difficult operating
performance. We have reduced our estimates for fiscal 2011 and
downgrade the stock to Underperform. We lower our target price to
$25.00.
Latest Posts on the Zacks Analyst Blog:
Toyota Posts Dips, Ups Guidance
Toyota Motor Corp. (NYSE: TM) posted a 39% fall in profit
to yen 93.63 billion ($1.14 billion) or yen
29.86 (36 cents) per share in
the third quarter of fiscal 2011 from yen
153.22 billion ($1.86 billion)
or yen 48.86 (59 cents) per share in the year-ago quarter. The
fall in profit was attributable to lower sales in Japan, North
America and Europe as well
as a stronger yen.
Consolidated revenues in the quarter dipped 12% to yen 4.67 trillion ($56.74
billion) on the back of a 13% fall in global sales volume to
1.8 million units. Vehicle sales declined 21% to 507,861 units in
North America, 31% to 402,476
units in Japan and 5% to 207,621
units in Europe. Meanwhile, sales
rose 21% to 334,504 units in Asia
and 2% to 349,219 units in Other regions.
Operating profit almost fell yen 90.03
billion to yen 99.07 billion from yen
189.11 billion in the quarter. The decrease in operating
profit was attributable to unfavorable changes in exchange
rates.
Segment Performance
In the Automotive segment, revenues dipped 12% to yen 4.26 trillion due to lower unit sales. The
segment saw an operating loss of yen 27.53
billion in the quarter in contrast with an operating profit
of yen 124.48 billion in the prior
fiscal year due to the same factors that affected the company's
operating income.
In the Financial Services segment, revenues slipped 3% to
yen 297.50 billion. Consequently,
operating profit declined by yen 35.80
billion to yen 116.44 billion from yen 80.64 billion in the prior fiscal year. In
All other businesses, revenues ebbed 7% to yen 224.65 billion. However, operating profit
rose by yen 27.79 billion to yen 13.39
billion.
Guidance Raised
Toyota revised its estimates upward for fiscal 2011. The
automaker now anticipates vehicle sales in the range of 7.41
million–7.48 million units up from the prior estimate of 7.38
million–7.41 million units.
The company forecasted consolidated revenues to be yen 19.2 trillion, operating income to be
yen 550 billion and net income to be
yen 490 billion. This compared to the
prior guidance of yen 19.0 trillion
in consolidated revenues, yen 380
billion in operating income and yen
350 billion in net income.
Toyota's results clearly reflect loss of consumer confidence as
a result of its series of automotive safety recalls since
September 2009. However, we
appreciate the company's efforts to improve its sales volume as
well as its cost reduction measures. As a result, the company has a
Zacks #3 Rank (Hold) on its stock for the short term (1–3
months).
Avon Products Misses Our Estimates
Avon Products Inc. (NYSE: AVP) recently posted
fourth-quarter 2010 adjusted earnings of 59
cents a share, which fell short of the Zacks Consensus
Estimate of 67 cents and dipped 13.2%
from the year-ago figure of 68 cents
a share.
For the fiscal 2010, the company reported adjusted earnings per
share of $1.80 compared with
$1.75 in the year-ago quarter.
Earnings also failed to meet the Zacks Consensus Estimate of
$1.89 per share.
On a reported basis, including one-time items, earnings dropped
15% to 53 cents per share from
62 cents per share in the year-ago
quarter. For fiscal 2010, earnings fell 4% to $1.39 per share.
Total sales of the company rose 1.0% year over year to
$3,175.6 million compared with
$3,134 million a year ago, backed by
a surge in pricing and synergistic acquisitions. However, revenues
earned remained below the Zacks Consensus Estimate of $3,277.0 million.
The company's beauty product sales slipped 1.0%, driven by
growth across all categories marred by skin care and color, which
declined 12.0% and 2%, respectively.
NYSE Euronext Clears Low Bar
NYSE Euronext Inc.'s (NYSE: NYX) fourth quarter operating
earnings per share of 46 cents came
in a couple of pennies ahead of the Zacks Consensus Estimate of
44 cents. However, earnings were
substantially behind the 58 cents
recorded in the year-ago quarter.
Results reflect weak transaction and clearing volumes,
particularly in the European derivatives and U.S. cash trading that
primarily lowered the top line. Both New York Portfolio Clearing
(NYPC) and NYSE Liffe U.S. are currently incurring losses.
However, the company benefited from various cost reduction
programs. These aided in increasing efficiency of the new
initiatives taken to launch new data centers as part of its
long-term strategy. Nevertheless, operating net income decreased
21% year over year to $120 million
from $151 million in the year-ago
quarter.
NYSE reported GAAP net income of $135
million or 51 cents per share
as compared with $172 million or
66 cents per share in the prior-year
quarter. These include the impact of pre-tax merger expenses, exit
costs and requisite reversal of discrete tax reserves of
$18 million versus $43 million reported in the year-ago quarter.
Gross revenues declined by 8.0% year over year to $1.05 billion in the reported quarter. Besides,
net revenues (defined as gross revenues less direct transaction
costs consisting of Section 31 fees, liquidity payments and routing
and clearing fees) were $613 million,
down 4% from $640 million in the
prior-year quarter and also below the Zacks Consensus Estimate of
$617 million.
Revenues from information service and technology solutions (up
11% year over year) were offset by a decline in derivatives (down
6% year over year) and in cash trading and listings (down 7% year
over year) due to price reductions, unfavorable currency
fluctuations and lower trading volumes. Fixed operating expenses
decreased slightly to $425 million
from $431 million in the prior-year
quarter.
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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