Today's Must Read
Honda (HMC) to Gain From Vision 2030 Plan, Recalls a Woe
Rising Healthcare Spending, Buyouts Drive Danaher (DHR)
Friday, February 23, 2018
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bristol-Myers (BMY), Honda (HMC), and Danaher (DHR). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Bristol-Myers’ shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the last six months, gaining +13.4% vs. +4.4%. Bristol-Myers reported strong results for the fourth quarter beating on both earnings and sales. Strong sales of Opdivo and Eliquis contributed to the top line in the quarter.
In addition, the guidance for 2018 was encouraging. The Zacks analyst likes Bristol-Myers’ efforts to develop its pipeline, especially Opdivo. Several label expansion applications for Opdivo are under review in the United States and Europe. Potential approval will boost the prospects of these drugs. The positive results from the Checkmate-227 study for first-line treatment of lung cancer has already boosted prospects of approval.
However, pricing concerns, stiff competition in the HCV and immuno-oncology space are expected to remain an overhang on the company’s shares. Yervoy’s sales are expected to be under pressure due to the adoption of Opdivo in adjuvant melanoma.
Shares of Honda have outperformed the Zacks Domestic Automotive industry over the last six months, increasing +28.1% vs. +21.5%. In third quarter of fiscal 2018 (ended Dec 31, 2017), Honda reported better-than-expected earnings. Revenues also came in higher than expectation. Through the Vision 2030 strategy plan, the company is focusing on strategies to boost coordination between research and development as well as procurement and manufacturing of its products.
The company is undertaking frequent collaborations to expand its business. The company has been recalling vehicles frequently over the last few years. Moreover, it has been facing a rise in R&D expenses and unfavorable foreign currency translation issues.
Danaher’s shares have gained +3.6% over the past three months, outperforming the Zacks Diversified Operations industry, which has declined -2.1% over the same period. Danaher kept its impressive earnings beat streak alive as its fourth-quarter 2017 adjusted earnings beat expectations.
The Zacks analyst is optimistic about the company’s core revenue and earnings growth, on the back of improving order trends and its operating culture, DBS. Its recent acquisitions – Pall and Cepheid – are proving to be strong profit churners, and will boost top-line growth as they become a part of the company’s core revenues.
However, slowdown in the company’s academic business in Europe and prolonged sluggishness in the Dental business might restrict growth, going forward. Moreover, weakness in industrial markets and stiff competition may also hurt the company's financials.
This apart, the company remains highly vulnerable to adverse foreign currency translations, as a significant portion of its revenues is derived from regions outside the United States.
Other noteworthy reports we are featuring today include MetLife (MET), Manulife (MFC) and V.F. Corp. (VFC).
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Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>