For Immediate Release
Chicago, IL – August 30, 2010 – Zacks.com Analyst Blog features: Netflix Inc. (NFLX), Apple Inc. (AAPL), Microsoft Corp. (MSFT), Sony Corp. (SNE ) and Fred Inc. (FRED).
Here are highlights from Friday’s Analyst Blog:
NetFlix App for Apple Devices
A leading provider of online movie rental and Web video subscription services, Netflix Inc. (NFLX)announced the release of its application to Apple Inc.’s (AAPL) iPod and iPhone Touch handheld devices. The application will allow streaming of movies and TV shows via both Wi-Fi and 3G networks for free.
The Neflix application (app) is used for intuitive viewing of movies and TV shows and requires a Netflix membership. Netflix subscribers who are already using its service for $8.99 per month will be able to view their selected TV episodes and movies from Netflix to their iPhone and iPod touch.
Netflix is already delivering first-run movies on a broad range of devices, which subscribers can access through different platforms such as Apple’s iPad, personal computers, laptops, mobile phones and game consoles such as Microsoft Corp.’s (MSFT) Xbox 360, Sony Corp.’s (SNE ) PS3 and Nintendo’s Wii.
Netflix is broadening its footprint in the mobile market. In our view, the Netflix app for iPhone and iPod device will allow the company to increase its market share in the mobile segment as well as expand its subscriber base and open up new avenues for top-line growth over the long term.
The Netflix app will support any iPhone or iPod touch device running on the iOS version 3.13 or later and will be available from any App Store, the company said.
Netflix’s members can choose movies or TV episodes from a wide range of lists available and can instantly view the chosen program with the help of the multi-touch user interface. It also contains add-on features such as fast-forward, rewind, saving or stopping the video stream at any time. Additionally, Netflix allows users to manage their movie queue on the screen even on different devices capable of streaming from Netflix.
Fred’s Meets, Affirms Outlook
Fred Inc.’s (FRED) posted EPS of 14 cents in its second quarter of fiscal 2010, which matched the Zacks Consensus Estimate and came in ahead of 13 cents reported in the year-ago quarter. Comparable store sales growth, increased traffic driven by Fred’s sales and profit-driving initiatives resulted in the earnings outperformance.
Including the effect of higher income taxes, EPS in the quarter came in at 13 cents compared to 11 cents in the year-ago quarter, an 18% rise.
Total sales increased 4% year-over-year to $449.5 million, missing the Zacks Consensus Estimate of $452.0 million. The revenue growth also fell short of the company’s guided range of 5% to 7%. Comparable store sales for the quarter increased 2.5% compared with a decrease of 1.3% in the year-ago quarter. Same-store sales were near the lower end of the company’s expectations of 2% to 4% for the quarter.
On a monthly basis, comparable store sales increased 3.5%, 1.7% and 2.7% in May, June and July, respectively. Comparable store sales, in all the three months, were boosted by increased traffic, improved sales mix, solid comparable script growth in the pharmacy department and strong Core 5 department results.
May comparable store sales particularly benefited from a strong finish before the Memorial Day holiday, driven by advertising circulars and success of new sales-driving initiatives put in place. In July, the comparable sales were somewhat negatively affected by 75 basis points due to a shift in the retail calendar that eliminated the first-of-the-month sales benefit for July. Notwithstanding, the pharmacy department continued to post positive script gains.
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