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Zacks Analyst Blog Highlights: Smith Micro Software, Inc., Johnson & Johnson, Inc., Campbell Soup Company, Sanofi-Aventis SA and Gannett Co.

April 15, 2009 | Comments: 0
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For Immediate Release

Chicago, IL – April 15, 2009 - 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: Smith Micro Software, Inc. (SMSI - Analyst Report), Johnson & Johnson, Inc. (JNJ - Analyst Report), Campbell Soup Company (CPB - Analyst Report), Sanofi-Aventis SA (SNY - Analyst Report) and Gannett Co. (GCI - Snapshot Report).

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 Tuesday’s Analyst Blog:

Smith Micro Still Worthy

Smith Micro Software, Inc. (SMSI - Analyst Report) is a developer of wireless communications software and utility software for multiple OS platforms. It has significant relationships with several large cellular providers and OEM cell phone manufacturers.

We remain encouraged by the company's recent results, strong brand recognition, and robust customer pipeline for 2009. However, we believe the weakening macro environment and declining consumer spending is likely to be challenging for its consumer business.

J&J Beats on Light Revenues

This morning Johnson & Johnson, Inc. (JNJ - Analyst Report) reported financial results for the first quarter ending March 31, 2009.

Revenue for the quarter came in at $15.0 billion, about $521 million below our forecast and down 7.2% from the same period in 2008. Revenue was negatively impacted by 6% due to foreign exchange, while operational results fell by 1.2%. Consumer, Pharmaceutical and Medical Devices sales contracted by 8.7%, 10.1% and 2.9%, respectively, compared to the same period in 2008.

Campbell Soup a Hold on Costs

Campbell Soup Company’s (CPB - Analyst Report) Transformation and Driving Quality Growth Plans are improving the topline through a combination of improved products, attractive packaging, a new retail shelving system, and more effective marketing. Price increases and a line of lower sodium soups helped Campbell accomplish management's financial goals in the last two fiscal years.

Management continues to optimize the portfolio with the introduction and reformulation of lower sodium soups. However, cost inflation remains a concern. The Hold recommendation is maintained.

Sanofi-Aventis Rated Hold

Sanofi-Aventis SA (SNY - Analyst Report) posted EPS of EUR5.36 in 2008, an increase of just 2% from 2007. Revenue fell 1% in 2008 as a number of products experienced significantly declining sales including Ambien, Tritace and Copaxone.

For 2009 we expect revenue growth to return as generic erosion is more than offset by strong growth of Taxotere, Lantus, Avapro and the vaccines business. We expect revenue growth of 4% in 2009 and EPS of EUR5.81 ($3.82), up 8% from 2008. EPS should continue to benefit from continued strong contribution to royalty income from U.S. Plavix sales and operating margin improvement as a result of cost-cutting.

Gannett Gets Boost from Investor

Shares of Gannett Co. (GCI - Snapshot Report), the publisher of USA Today, jumped 8.3% Monday following an announcement last week that a major shareholder had more than doubled it stake the company.

The investment echoes our thesis that publishers with strong national brands, an aggressive online strategy and a manageable debt load are more likely to withstand the recession and adapt their business models for future profitability.

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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com


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