For Immediate Release
Chicago, IL – March 1, 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: Gap Inc. (GPS), Telephone and Data Systems (TDS), U.S. Cellular (USM), AT&T (T) and Verizon (VZ).
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Here are highlights from Friday’s Analyst Blog:
Gap Reports Impressive Quarter
Gap Inc. (GPS) reported strong fourth quarter fiscal 2009 results despite challenging market conditions. The company reported net income of $352 million or 51 cents per share during the quarter, compared to $243 million or 34 cents per share in the year-earlier quarter. The quarterly earnings beat the Zacks Consensus Estimate by a penny.
For fiscal 2009, Gap reported net income of $1.1 billion or $1.58 per share, compared to $967 million or $1.34 per share in fiscal 2008. The robust earnings were primarily driven by solid sales at its low-price Old Navy segment and the highest fourth quarter operating margins in over a decade. Net sales during the quarter were $4.24 billion compared to $4.08 billion in the year-ago quarter.
The Old Navy chain has benefited from the increasing preference among U.S. shoppers for lower-price stores due to the challenging macroeconomic environment. Comparable store sales increased 2% during the quarter compared to the year-earlier quarter.
TDS Beats by a Penny
Telephone and Data Systems (TDS) announced fourth-quarter 2009 results with earnings per share (EPS) of 15 cents beating the Zacks Consensus Estimate of 14 cents.
Net income (attributable to TDS) for the quarter was $16.5 million as against a net loss of $168.9 million ($1.49 per share) reported a year ago, which was hit by heavy impairment charges. For full year 2009, EPS of $1.77 missed the Zacks Consensus Estimate of $1.84 while exceeding the year-ago EPS of 80 cents.
The Chicago-based operator reported operating revenue of $1,262.8 million for the quarter, reflecting a modest year-over-year decline. For full year 2009, revenue fell 1% to $5,020.7 million. However, the quarterly and annual revenues exceeded the Zacks Consensus Estimates of $1,244 million and $5 billion, respectively.
The company’s wireless subsidiary U.S. Cellular (USM) posted a net income of $12.4 million in the quarter compared to a net loss of $200.1 million reported a year ago. The unit recorded impairment charges of $386.7 million in the year-ago quarter, which impacted the bottom-line.
Operating revenue grew 1% year-over-year to $1,061 million. Service revenue increased 1% to $986.3 million. The unit continues to experience lower roaming revenue, offset by healthy data revenue growth (up 34% year over year). Average monthly ARPU (average revenue per user) increased to $53.55 from $52.71 a year ago, while postpaid churn remained flat at 1.6%.
US Cellular added 10,000 customers during the quarter, bringing the total subscriber base to 6.14 million (including retail customers of 5.74 million). The entity remains susceptible to aggressive product/pricing strategies of its larger rivals like AT&T (T) and Verizon (VZ), contributing to sustained customer defection.
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