For Immediate Release
Chicago, IL – February 26, 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: H.J. Heinz Company (HNZ), Kohl’s Corp. (KSS), Freddie Mac (FRE), Express Scripts Inc. (ESRX) and WellPoint Inc. (WLP).
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 Thursday’s Analyst Blog:
Heinz Reports Strong 3rd Quarter
H.J. Heinz Company (HNZ) reported strong results for the fiscal third quarter of 2010 with earnings of 83 cents per share. Earnings were well above the Zacks Consensus Estimate of 64 cents, and were up 9.2% year over year.
Quarterly net sales increased 12.7% year over year to $2.68 billion, primarily attributable to a 6.9% favorable impact from foreign exchange translation and a 2.9% benefit from acquisitions. Volumes grew 1.2% year-over-year and pricing also contributed favorably to the top line by 1.8%. Organic sales, excluding the impact of foreign exchange, grew 3.0% during the quarter.
Kohl’s Beats, Stock Gains
Kohl’s Corp. (KSS) reported fiscal 2009 fourth-quarter results before the opening bell on Thursday. The company posted net income of $431 million or $1.40 per share, compared to $336 million or $1.10 per share in the year-earlier quarter. Quarterly earnings also topped the Zacks Consensus Estimate of $1.37 per share.
However, Kohl’s offered a conservative outlook for the first quarter of fiscal 2010, with earnings expected to range between 48 cents and 52 cents per share. The guidance is below the Zacks Consensus Estimate of 54 cents per share, which reduced by 2 cents over the past month as 4 analysts lowered while 1 raised expectations. Shares of Kohl’s have gained more than 3.5% in morning trading Thursday.
For fiscal 2010, Kohl’s anticipates earnings to range between $3.40 and $3.63 per share assuming a 4% to 6% increase in total sales and 1% to 3% growth in same-store sales. This guidance is in line with the current Zacks Consensus Estimate of $3.61 per share, which moved up 3 cents over the past month as 13 of 22 analysts increased while 2 reduced expectations.
Freddie Mac’s Net Loss Widens
Freddie Mac’s (FRE) fourth quarter net loss came in at $2.39 per share, substantially higher than the Zacks Consensus Estimate of a loss of 80 cents. This also compares unfavorably with a net loss of $2.06 in the prior quarter.
Results for the quarter exclude the preferred dividend of $1.3 million paid to the U.S. Treasury on the senior preferred stock. With some early signs of stabilization in the housing market, Freddie Mac expects low mortgage rates, relatively high affordability and the homebuyer tax credit to help fuel the recovery in the upcoming quarters. Though provision for credit losses showed some improvement over the prior quarter, it remained at an elevated level as the credit market continued to deteriorate.
For full year 2009, net loss narrowed to $25.7 billion or $7.89 per share, compared to a loss of $50.8 billion or $34.60 in the previous year.
ExpressScripts Beats & Guides Up
Express Scripts Inc. (ESRX) announced better-than-expected results with fourth-quarter earnings of 97 cents per share, 7 cents above the Zacks Consensus Estimate. Earnings increased 14.1% from the year-ago period. Full year earnings were $3.58 per share, 12 cents above the Zacks Consensus Estimate and well above the year ago earnings of $3.18.
Fourth quarter revenues increased a whopping 49% to $8.2 billion. Full year revenues increased 12.6% to $24.7 billion. We believe that the company benefited from new business gained through its acquisition of NextRx, the pharmacy business management (PBM) segment of WellPoint Inc. (WLP).
NextRx provides PBM services to approximately 25 million Americans and manages more than 265 million adjusted prescriptions annually. We view Express Scripts’ acquisition of NextRx as a smart strategic move.
The aligned business model should provide significant opportunities for driving growth. The deal includes a 10-year agreement under which Express Scripts will provide PBM services including home delivery and specialty pharmacy services, to members of the affiliated health plans of WellPoint.
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 Leonard Zacks. As a PhD in mathematics 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.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
