For Immediate Release
Chicago, IL – February 12, 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: PepsiCo Inc. (PEP), Viacom Inc. (VIA.B), Allstate Corporation (ALL), Wal-Mart (WMT) and Big Lots (BIG).
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Here are highlights from Thursday’s Analyst Blog:
Pepsi Reports In-Line
PepsiCo Inc. (PEP) reported strong fourth quarter results with earnings of 90 cents per share. This was in line with the Zacks Consensus Estimate and up 96% year-over-year. The strong results were driven by strong gains in the worldwide snacks and international beverage businesses.
However, net sales for the quarter increased by 4.5% year-over-year to $13.3 billion. The increase was attributable to gains in Latin America Foods – LAF (+11%), Frito-Lay North America – FLNA (+2.0%), Pepsi Americas Foods – PAF (4%), Asia/Middle East/Africa – AMEA (+7.0%), PepsiCo International (+5%) and Europe (+4.0%) which was partially offset by PepsiCo America Beverages – PAB (-2.0%), and Quaker Foods North America – QFNA (-5%).
Viacom’s Profit Soars in 4Q
Viacom Inc. (VIA.B) today declared encouraging financial results for the fourth quarter 2009. Quarterly net income from continuing operations was $663 million or $1.14 per share, compared to $464 million or 28 cents per share in the prior-year quarter.
Fourth quarter adjusted (excluding a one-time discrete tax benefit) EPS was $1.09, significantly above the Zacks Consensus Estimate of 86 cents. This was primarily due to a soaring increase in operating profit and an effective cost-containment strategy. Quarterly total revenue of $4,098 million was down 3% year-over-year and was also below the Zacks Consensus Estimate of $4,236 million.
Quarterly adjusted (excluding one-time charges) operating income was $1,152 million, up 24% year-over-year driven by the solid performance of the Filmed Entertainment segment. At the end of fiscal 2009, Viacom had $298 million of cash & cash equivalent and $6,773 million of outstanding debt on its balance sheet compared to $792 million of cash & cash equivalent and $8,002 million of outstanding debt at the end fiscal 2008.
Allstate Outdoes Expectations
Allstate Corporation’s (ALL) fourth-quarter operating earnings of $1.09 per share were substantially ahead of the Zacks Consensus Estimate of $1.10. This is in contrast to the operating earnings of 96 cents in the year-ago quarter. Results for the quarter benefited primarily from excellent underwriting margins, prudent capital management and strong liquidity. However, lower investment income and decrease in property-liability premiums weighed on the results.
Primarily as a result of lower realized capital losses and improved operating income, Allstate’s net income for the reported quarter came in at $518 million or 96 cents per share, compared to a net loss of $1.1 billion or $2.10 in the prior-year quarter. Operating income, which excludes realized net gains and losses from the sale of investments as well as accruals on non-hedge derivative instruments, for the reported quarter was $592 million, up 14.3% from $518 million in the year-ago quarter.
Initial Jobless Claims Back Down
Millions more homeowners are right on the edge of being underwater. For those people as well, the home equity option is simply not available. With a very low savings rate, particularly among the working and middle classes going in to this recession, their savings would have quickly been eliminated after their income fell to zero. These people would be then be left with no IRAs or 401(k)s and would face a very bleak picture for their retirement years.
With no income and no savings, and credit limits maxes out, they would fall into abject, third-world style poverty. In the process, they would, of course, stop spending all together. As they did, they would no longer be able to shop even at Goodwill or the Salvation Army, let alone discount chains like Wal-Mart (WMT) or Big Lots (BIG).
That would lead to still further job losses at those stores and among the workers who make and transport those goods. These people are probably already high on the list of those who are defaulting on their credit cards, and not paying their mortgages ( not all of them, however).
If people were not getting their extended claims, almost 100% of the long-term unemployed would be defaulting on their debts. That would put even more pressure on bank earnings and capital, making it even less likely that the banks would be lending to small businesses, thus even further shutting down job creation in the economy.
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