For Immediate Release
Chicago, IL – January 28, 2010 – Zacks Equity Research highlights Limited Brands (LTD) as the Bull of the Day and Progress Energy (PGN) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Caterpillar Inc.(CAT), Boeing Company (BA) and ConocoPhillips (COP).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Limited Brands’ (LTD) sustained focus on cost containment, inventory management and merchandise initiatives has kept it afloat in a difficult consumer environment.
The company’s Bath & Body Works segment regained its lost momentum in third-quarter 2009, primarily driven by a rise in store transactions, enhancement in the direct channel business and growth from new stores. However, the Victoria’s Secret segment continues to see pressure, registering falling comps across its La Senza and Victoria’s Secret Stores.
The company is in a constant process to revamp its La Senza brand both at home in Canada and internationally. Limited seeks to expand aggressively in Canada, and other international markets, such as Europe and Japan.
Progress Energy (PGN) is one of the nation’s larger pure-play electricity utilities with solid rate base growth opportunity in the long-term. Given the disappointing outcome of the Florida rate case and a lowered 2010 guidance, we expect the stock to remain under pressure in the near term.
Furthermore, the weak economic conditions in Florida, which have slowed customer growth and reduced demand for electricity, remain worrisome issues. Thus, we expect 2010 to be a challenging year for Progress Energy.
Accordingly, we downgrade our recommendation to UNDERPERFORM with a target price of $36.00.
Latest Posts on the Zacks Analyst Blog:
Caterpillar Beats but Disappoints
Caterpillar Inc.(CAT) reported fourth quarter earnings of 41 cents per share, beating the Zacks Consensus Estimate of 28 cents per share. However, the company’s EPS declined 62.0% on a year-over-year basis.
Revenue in the quarter was down 38.9% to $7.9 billion from $12.9 billion posted last year. The sales decline in the quarter constituted lower Machinery sales volume (-$3.4 billion), lower Engines sales volume (-$2.0 billion) and lower Financial Products revenue (-$98 million), partially offset by positive impact of foreign currency translation (-$219 million) and higher price realization (+$199 million).
The company witnessed revenue weakness across its end markets. Both the Machinery Group and the Engines segment have reported revenue decline of 41% each, while the Financial Products segment revenue was down 12%.
Sales were down compared to last year in all the geographic regions. This was due to a combination of slower residential and commercial construction activity, and a reduction in dealer orders, and tight lending conditions.
Boeing Flies High Above Consensus
Boeing Company (BA) has posted fourth quarter fiscal 2009 earnings of $1.79 per diluted share, flying past the Zacks Consensus Estimate of $1.37 per share. For fiscal 2009 the company reported earnings of $1.89, beating the Zacks Consensus Estimate of $1.45 per share.
Boeing’s results reflect solid performance across its businesses. By contrast, the year-ago quarter results were affected by labor strike and a charge on the 747 program.
Boeing’s revenue for fiscal 2009 increased to $68.3 billion on higher commercial airplane deliveries and growth in the Defense, Space & Security business. By contrast, the company generated only $61 billion in revenues in fiscal 2009. In the fourth quarter of fiscal 2009 revenues rose 41.6% year-over-year to $18 billion.
Conoco Beats, R&M Hurts
ConocoPhillips (COP) reported fourth-quarter earnings of $1.16 per share, above the Zacks Consensus Estimate of $1.12. However, earnings per share were well below the year-earlier figure of $1.28. This fall was mainly due to lower natural gas prices, a sharp decline in refining margins and reduced volumes, partially offset by improved oil prices and lower costs. Including one-time items, earnings for the quarter were 81 cents per share.
The Exploration and Production (E&P) segment reported earnings of $1.2 billion during the quarter, up significantly year over year. The increase was mainly driven by increased liquid prices, partially offset by lower natural gas prices and volumes. Daily production from the E&P segment including Canadian Syncrude averaged 1.83 million barrels of oil equivalent per day (MMBOE/d), down from 1.87 MMBOE/d in the year-ago quarter.
The Refining and Marketing (R&M) segment reported a loss of $215 million, compared to a profit of $289 million in the year-ago quarter. The domestic loss in the segment was partially offset by profit from international operations. However, realized refining and integrated margins were significantly lower than in the year-ago quarter. Domestic refining crude oil capacity utilization rate for the quarter averaged 83%, compared to 94% a year earlier. International capacity utilization rate averaged 58%, versus 89% last year. Worldwide utilization averaged 76%, compared to 93% in the year-ago period.
The Midstream segment (which includes the company’s 50% interest in DCP Midstream LLC) contributed $97 million to the net income during the quarter, up approximately 41% year over year. The increase was primarily driven by strong realized prices.
ConocoPhillips’ earnings from its LUKOIL Investment segment came in at $388 million, up dramatically from the prior-year quarter. LUKOIL’s estimated contribution to the company’s quarterly E&P volumes was 431,000 barrels of oil equivalent per day. The Chemicals unit reported earnings of $54 million as against a loss of $6 million a year ago.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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