This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
For Immediate Release
Chicago, IL – October 29, 2012 – 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 Agilent Technologies Inc. ( A - Analyst Report ) , STMicroelectronics NV ( STM - Snapshot Report ) , Forest Laboratories ( FRX - Analyst Report ) , Ironwood Pharmaceuticals ( IRWD - Snapshot Report ) and ITT Educational Services, Inc.’s ( ESI - Snapshot Report ) .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday’s Analyst Blog:
Agilent to Showcase New EMPro 2012
Agilent’s EMPro 2012 will facilitate the designing of 3-D models by analyzing the electrical performance of radio frequency (RF) and other high-speed components. The latest EMPro coupled with Agilent’s Advanced Design System (ADS) software has the capabilities to improve performance and accelerate product development with the help of 3-D modeling.
Aerospace/Defense industry engineers and designers of antenna, high-speed connector, RF & microwave component, IC package and others use the EMPro 2012 software for analyzing the 3D electromagnetic (EM) effects of components such as RF IC packages, antennas, on-chip and off-chip embedded passives and printed circuit board (PCB) interconnects.
There is ample room for growth if Agilent plays to its strength and remains committed to its customers by providing world class, affordable test and measurement solutions. Agilent’s testing systems have proved to be effective in the past, enabling it to build a strong position for itself.
Agilent’s revenue in the third quarter was flat sequentially and up 1.9% year over year, short of management’s expectations of a 2-3% sequential increase ($1.77 billion to $1.79 billion). The Electronic Measurement segment contributed 49.0% of revenue. The weakness was on the computing/semiconductor side of the business.
The Life Sciences segment generated 23.0% of revenue, down 1.0% sequentially and up 2.1% from last year. The Chemical Analysis segment generated 22.0% of third quarter revenue, down 8.8% sequentially and 7.0% year over year. The sequential decline was largely because of weakness in food testing.
Currently, Agilent Technologies has a Zacks #4 Rank, implying a short-term Sell rating.
Earnings Scorecard: Forest Labs
Following the release of second quarter fiscal 2013 results, most of the analysts providing earnings estimates for Forest Laboratories ( FRX - Analyst Report ) have made downward revisions to their estimates for fiscal 2013. The downward revision in estimates is mainly in response to the company’s lowered guidance for fiscal 2013.
Second Quarter Fiscal 2013 Quarter Highlights
Forest Labs reported earnings per share of 8 cents in the second quarter of fiscal 2013, well below the year-earlier earnings of 91 cents per share. Results were hit by the loss of exclusivity on Lexapro.
Excluding acquisition-related amortization costs, second quarter fiscal 2013 earnings came in at 15 cents, down from 95 cents in the year-ago quarter. The Zacks Consensus Estimate was hinting towards breakeven earnings.
Second quarter revenues declined 34.9% to $760.6 million, with net sales falling 38.8% to $692.0 million. Total revenues missed the Zacks Consensus Estimate of $779 million.
A detailed discussion of second quarter fiscal 2013 results is available here: Earnings Decline at Forest Labs
Agreement of Estimate Revisions
There is a significant negative bias in earnings estimate revisions for Forest Labs for fiscal 2013. Following the release of second quarter fiscal 2013 results, all 12 analysts providing estimates for the stock lowered their estimates for fiscal 2013.
A similar trend is seen for fiscal 2014 as well with 19 of the 22 analysts providing estimates cutting their estimates with no movement in the opposite direction.
Forest Labs expects to earn 45 - 60 cents per share (excluding acquisition-related amortization), down from the earlier guidance of 95 cents - $1.10 per share.
With the entry of generic competition, Lexapro sales will continue declining. In addition to lower Lexapro sales, other factors expected to affect sales are lower than expected royalty income and the discontinuation of shipping of Levothroid.
However, more than the Lexapro impact, we were disappointed to see Forest Labs cut its revenue expectations for Namenda. The company now expects Namenda sales to grow 11% in fiscal 2013 instead of 17%. This means that Namenda s sales will be affected by about $85 million.
Forest Labs said that although sales in the retail segment were in line with expectations, long term care sales were below expectations. Long term care sales account for 35-40% of the company’s Namenda sales.
Meanwhile, Linzess, which gained FDA approval in August for the treatment (once-daily) of adults suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC), is expected to deliver sales of $25 million instead of $60 million.
Magnitude of Revisions
Estimates for fiscal 2013 have gone down by 43 cents following the release of second quarter fiscal 2013 results. The current Zacks Consensus Estimate is 25 cents. Fiscal 2014 estimates have been slashed by 28 cents to $1.27 per share. The reduction in fiscal 2014 estimates mainly reflects reduced expectations from Namenda.
We currently have a Neutral recommendation on Forest Labs, which carries a Zacks #3 Rank (short-term Hold rating). Forest Labs is facing tough times with Lexapro losing patent protection.
More than Lexapro’s genericization, the cut in Namenda’s guidance is disappointing as Namenda is currently the main contributor to the Forest Labs’ top line. Moreover, the performance of new products especially Teflaro, has been below expectations. However, we remain encouraged by Forest Labs’ progress with its pipeline candidates.
ITT Educational’s Weak Environment
ITT Educational Services, Inc.’s (
- Snapshot Report
third quarter 2012 earnings of $1.83 per share beat the Zacks Consensus Estimate of $1.75 by 4.6%. However, earnings for the quarter dropped 26.2% year over year due to lower revenue.
Quarterly revenue totaled $314.7 million, down 12.7% from the prior-year quarter due to weak enrollments. Total revenue also missed the Zacks Consensus Estimate of $316 million.
Quarter in Detail
The company witnessed a 17.1% year-over-year decline in total enrollment to 65,662 students. The overall decline in enrollment mainly resulted from a 15.8% drop in new enrollment to 19,298 students. New student enrollment witnessed a decline of 36% in Graphic Designs and criminal justice programs and a 12% drop in the drafting, network administration and electronics programs.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
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=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT 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=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Zacks Investment Research
800-767-3771 ext. 9339
Please login to Zacks.com or register to post a comment.