For Immediate Release
Chicago, IL – January 19, 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: International Business Machines Corp. (IBM), Hewlett-Packard Co. (HPQ), Cisco Systems Inc. (CSCO), Dell Inc. (DELL) and Scientific Games Corporation (SGMS).
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 Monday’s Analyst Blog:
IBM to Announce 4th Quarter Results
IT bellwether International Business Machines Corp. (IBM) is set to release its fourth-quarter of 2009 earnings on Jan. 19. We do not expect the earnings to be a major catalyst for the stock price movement, but our focus will be on its guidance for fiscal 2010, which could drive the stock price.
Historically, the company’s earnings have consistently surpassed the Zacks Consensus Estimate, and IBM has raised its guidance for almost every quarter in the last two years. During the third quarter, IBM raised its earnings outlook for fiscal 2009, the second time in the past year, and expects full-year earnings of at least $9.85 per share, up from the previous forecast of $9.70. The Zacks Consensus Estimate calls for earnings of $9.88 per share for fiscal 2009.
IBM is not expected to produce any earnings surprise in the coming quarters. For the upcoming quarter, the Zacks Consensus Estimate is $3.47 per share. Consequently, price movement is likely to be limited in the near-term.
IBM also expects to return to revenue growth in the fourth quarter. The company also expects 2009 pre-tax income for its software and services businesses to grow at double-digit rates, to around $8 billion.
While we believe that IBM is a fundamentally sound company with a strong market position, we anticipate some near-term hurdles. We believe that the overall demand environment could limit the stock’s relative appreciation in the near term. However, we also expect the company to benefit from the revival in IT spending.
We remain optimistic on the company’s long-term growth, and expect it to post stronger results in 2010 due to cost cutting and a shift to higher margin software and services business. Management stated that IBM is well on course to deliver an EPS of $10 to $11 in 2010. We expect further upside in IBM’s share price and advise stockholders to wait for a favorable exit point.
IBM faces competition from some of its top competitors, such as Hewlett-Packard Co. (HPQ), Cisco Systems Inc. (CSCO) and Dell Inc. (DELL).
Scientific Games Big in Germany
Scientific Games Corporation (SGMS) announced that it has been awarded a five-year contract by the Sachsische LOTTO-GmbH in the German state of Saxony to supply instant tickets and cooperative services.
The contract begins from January 2010. Scientific Games will be the exclusive supplier of instant tickets and will be also provide consulting services such as marketing support, training and production related matters to Saxony.
Scientific Games continues to grow through international development activities, especially in Germany and China. In Germany, the company runs 20 active Deal or No Deal games and instant ticketing with 6,000 retailers. In 2008, the company signed four new contracts in Germany to provide pari-mutuel wagering systems, terminals and services.
The agreement with Sachsische LOTTO is the sixth cooperative services contract that Scientific Games has won in Germany, and further validates the company’s growing initiative in international expansion.
Based in New York City, Scientific Games is a global IT systems and services company that provides instant ticket and online lottery products, systems and services to lottery authorities and gaming markets worldwide.
We believe that Scientific Games benefits from its strong and growing presence in the worldwide instant ticket and online lottery markets, and has made significant in-roads into international markets that have traditionally been dominated by GTECH Holdings Corporation.
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
