For Immediate Release
Chicago, IL – May 4, 2010 – Zacks.com Analyst Blog features: Maidenform Brands (MFB), Under Armour (UA), Plum Creek Timber (PCL), Rayonier (RYN) and VistaPrint N.V. (VPRT).
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Here are highlights from Monday’s Analyst Blog:
Manufacturing Still Rising
Overall this was a very encouraging report. It shows that the manufacturing side of the economy is clearly on the mend, and the market should like these numbers. The overall index, the PMI, has been above the magic 50 mark now for 9 straight months, or since August. That is probably around the time that — when they get around to it — the NBER will officially declare that the recession having ended.
The March reading is the highest since July 2004, and since 1968 the overall PMI index has been above this level in only 54 months, or 10.6% of the time. Clear evidence of an economy on the mend, at least on the manufacturing side, although manufacturing is a relatively small part of the overall economy.
The non-manufacturing index does not have as long a history as the manufacturing index, but covers a much bigger part of the economy, is due out next week. In recent months it has also been above the 50 mark, but much lower than the manufacturing numbers.
The gains appear to be very widespread, particularly in the new orders and production sub-indexes, where almost all of the industries reported improvements and no industries reported deteriorating conditions. The percentage of respondents saying they were seeing increased new orders jumped to 52% from 41% in March while the percentage seeing lower orders fell to 8% from 11%.
Production was a similar story, with those reporting higher production rising to 49% from 36%, while those reporting lower production falling to 7% from 11%. The ISM does list industries by how much things have improved for each of the sub-indexes (also lists in order for those with deteriorating conditions).
The one industry that seems to be on the top of most of the lists was Apparel and related. That probably means good things ahead for stocks like Maidenform Brands (MFB) and Under Armour (UA). Surprisingly, the Wood products area is also showing significant strength, with is bullish for firms like Plum Creek Timber (PCL) and Rayonier (RYN).
VistaPrint Sinks on Weak Outlook
VistaPrint N.V.’s (VPRT) third quarter results were ahead of the Zacks Consensus Estimate. However, the shares tumbled on the company’s weak outlook for the fourth quarter and full fiscal year 2010.
VistaPrint’s third quarter fiscal 2010 (ending March 31) earnings came in at 35 cents per share. The company had earned 33 cents in the year-ago quarter. Excluding share-based compensation expense and its related tax impact, the company would have earned 46 cents versus 44 cents in the prior-year quarter.
Earnings came in ahead of the Zacks Consensus Estimate of 31 cents. The results were driven primarily by higher-than-expected revenue increases. Key operating metrics also remained strong. However, the market has responded negatively to its fourth quarter and full fiscal year outlook, both of which were below the Zacks Consensus Estimates.
For the fourth quarter, VistaPrint expects earnings to range from 35 cents to 38 cents excluding expected share-based compensation expense and its related tax effect. On a GAAP basis, the company expects earnings in the range of 24 cents to 27 cents per share, based on revenues in the range of approximately $169 million to $174 million. The Zacks Consensus Estimate prior to the earnings release was 31 cents for the fourth quarter.
For the full fiscal year 2010, the company expects earnings to range from $1.95 to $1.98 per share, excluding stock compensation costs. On GAAP basis earnings are projected to range between $1.47 and $1.50 per share, based on revenues in the range of approximately $675 million to $680 million. The Zacks Consensus Estimate prior to the earnings release was $1.50 for the full fiscal year 2010.
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