For Immediate Release
Chicago, IL – March 4, 2010 – 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: Joy Global Inc. (JOYG), Big Lots Inc. (BIG), EQT Corp. (EQT), JAKKS Pacific Inc. (JAKK) and World Wrestling Entertainment (WWE).
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Here are highlights from Wednesday’s Analyst Blog:
Joy Global Surpasses Estimates
Joy Global Inc. (JOYG) posted an EPS of 73 cents for the first quarter of 2010, surpassing the Zacks Consensus Estimate of 64 cents but below the year-ago earnings of 83 cents. The better-than-expected earnings were primarily driven by improved commodities market and better orders during the quarter.
During the quarter, the company merged its operating Continental Crushing and Conveying segment into Joy Mining Machinery and P&H Mining Equipment segment. The results from the prior year have been restated to reflect this integration. Full results for crushing and conveying products are now reported with Joy Global, while the results for sales into the surface market are additionally reported with P&H.
Revenues declined 3% year on year to $729 million in the quarter, as a result of a 12% decline in the Underground Mining Machinery (UMM) segment offset by an 8% increase in the Surface Mining Equipment (SME) segment. Original equipment sales decreased 10%, driven by an 18% decline in the UMM segment and flat sales results in the SME segment.
Aftermarket sales improved 2% in the quarter. Domestic sales fell 17%, whereas international sales grew 14% during the quarter.
Big Lots Outperforms
Big Lots Inc. (BIG) recently posted stronger-than-expected fourth-quarter 2009 results on the heels of better sales, improved inventory control and effective cost management. The quarterly earnings of $1.31 per share outdid the Zacks Consensus Estimate of $1.28, and soared 31% from $1.00 delivered in the prior-year quarter.
The better-than-expected results prompted management to provide three years’ outlook. The retailer now expects earnings per share to grow at a compounded annual growth rate of 12% to 16% from fiscal 2010 to fiscal 2012 based on annual sales growth rate of 5% to 7% and annual comparable-store sales increase of 2% to 3%.
Big Lots also forecasted first-quarter 2010 earnings between 60 cents and 65 cents a share, and fiscal year 2010 earnings in the range of $2.65 to $2.75.
EQT Buys Marcellus Assets
EQT Corp. (EQT) has decided to purchase approximately 58,000 net acres in the Marcellus Shale from a group of private operators and landowners in a stock and cash deal. The acreage is located primarily in Cameron, Clearfield, Elk and Jefferson counties in Pennsylvania.
The total consideration for this deal is about $280 million. Of this, 90% ($252 million) will be paid through EQT shares and 10% ($28 million) will be paid in cash. The acquired properties also include a 200 mile gathering system and approximately 100 producing vertical wells.
Following the completion of the deal, which is expected on or before Apr 30, EQT will have more than 500,000 net acres in this play. Most importantly, about 88% of the acquired acreage will be held in fee or by production from existing vertical wells.
We view this transaction as a prudent step by the company as EQT already has extensive midstream assets and firm contracts to gather and transport natural gas to the lucrative eastern markets.
JAKKS Down a Cent, Outlook Weak
JAKKS Pacific Inc. (JAKK) reported fourth quarter earnings of 22 cents per share, missing the Zacks Consensus Estimate by a penny. The company had earned 55 cents in the year-ago quarter.
Results were mostly in line with our expectations. While the company experienced a decline in revenue, the results were helped by cost cuts.
The company reported a 26% year-over-year decrease in revenue to $198.8 million. Though sales were driven by Halloween costumes, pretend play products, electronic toys and action figures, the company experienced declines in some of the products based on World Wrestling Entertainment (WWE), Hannah Montana, Neopets and others.
Including certain charges and other items, the company reported a net loss of $1.9 million or 7 cents per share, down from a profit of $16.9 million or 55 cents per share in the prior-year period.
For full year 2009, JAKKS reported a loss of $385.5 million or $14.02 per share, down from a profit of $76.1 million or $2.42 per share in the previous year. Excluding impairment charges and other items, the company earned $30.2 million or $1.03 per share in 2009, compared to earnings of $66.6 million or $2.13 per share in the prior year. Revenues were down 11% from the prior year to $803.7 million.
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