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: Honda Motor Company (NYSE: HMC), United Natural Foods, Inc. (NASDAQ: UNFI), Cox Radio (NYSE: CXR), Sony Corporation (NYSE: SNE) and Wilmington Trust (NYSE: WL).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Monday’s Analyst Blog:
Honda Motors Feels the Impact
Honda Motor Company (NYSE: HMC) is expanding its business in Asia, growing its global network to increase efficiency and introducing new products to satisfy local markets. Further, capacity expansion plans in Asia and a new sales strategy in Japan inspire optimism about Honda's future prospects.
However, the deepening economic recession due to the impact of the financial crisis in the U.S. and Japan is affecting Honda's operations significantly. The slowdown of European economies due to stagnating consumption and sluggish economic expansion in the Asian countries will further affect Honda. Rising raw material prices and selling and administrative expenses are likely to dent margins.
United Nat'l Foods a Growth Play
Headquartered in Dayville, Connecticut, United Natural Foods, Inc. (NASDAQ: UNFI) is the leading domestic distributor of natural and organic products, providing over 40,000 stock keeping units (SKUs) to more than 17,000 customers. United Natural Foods is a growth company in a growth industry. The $46 billion Natural Products sector is growing 8% versus 2% for the overall grocery industry.
United Natural Foods, Inc. continues to experience broad-based revenue growth and stable-to-improving operating margins ex one-time items. Benefiting from the positive trends in the natural foods industry and improved distribution capacity, sales are expected to continue to grow at a double-digit rate.
Cox Radio Best-Positioned
Cox Radio (NYSE: CXR) is scheduled to report earnings on March 4th at 11:00am Eastern Time. Fundamentals are set to get even weaker after 17 consecutive months of ad revenue declines as CXR's ad revenue and EBITDA growth are eviscerated by the recession.
We expect the decline in revenue (down 6% in 3Q08) and station operating earnings (down 16% in 3Q08) to accelerate in the 4th quarter, driven by a weakening ad market and rising talent costs as Cox attempts to maintain its solid ratings.
Sony's Struggles Continuing
Sony Corporation (NYSE: SNE) is one of the world's leading players in both the electronics and entertainment industries. Established in 1946 in Tokyo, Japan, the company manufactures and globally markets a diversified range of products from video and audio equipment to computer games, CDs and movies.
We believe Sony will continue to struggle as it faces competition from other innovative digital products and from low-cost Asian manufacturers as the consumer market slows. Sony posted lackluster Q3 results, hurt by sluggish sales in its core electronics segment due to the ongoing recession.
Wilmington Trust Stays a Sell
This morning Wilmington Trust (NYSE: WL) reported its 4Q08 and FY08 results. Net loss for the quarter came in at $68.5 million or $1.02 per diluted share, mainly due to $62.4 million (after-tax basis) other-than-temporary securities loss and a sharp increase in loan loss provisions to $67.5 million, slightly offset by decent growth in fee-based revenues. On an operating basis, the loss was $0.10 per share, substantially worse than the estimates.
Credit metrics deteriorated further during the quarter, (mainly in the commercial real estate-construction portfolio) with period end non-performing assets increasing to 2.19% of loans (up 99 bps sequentially), and year-to-date net charge-offs at 0.57% of average loans (up 27 bps). During the reported quarter, WL increased provision for loan losses to $67.5 million from $19.6 million at the end of 3Q08. The loan loss reserve ratio increased to 1.63% from 1.27% at the end of 3Q08.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.
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=2677
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=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
Contacts:
Mark Vickery
Web Content Editor
312-265-9380
Visit:
www.zacks.com
