Today's Must Read
Higher Music & Pictures Sales Benefit SONY Amid Rising Costs
End Market Strength Aids 3M (MMM) Amid Supply-Chain Woes
Wednesday, August 10, 2022
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 S&P Global Inc. (SPGI), Sony Group Corporation (SONY), and 3M Company (MMM). 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 >>>
S&P Global shares have declined -9.5% over the past year against the broad market's -8.3% decline, reflecting the data vendor's exposure to an uncertain macroeconomic environment. While the company is faced with a number of near-term challenges, it is well placed to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products. Effective management execution has helped it generate solid cash flow which is utilized for growth initiatives. Dividend payments and share buybacks boost investors’ confidence and positively impact earnings per share.
Sony shares have declined -16.4% over the past year against the Zacks Audio Video Production industry’s decline of -19.8%. The Zacks analyst believes that due to weak macro-economic conditions, the company trimmed its operating income guidance for fiscal 2022. Operating income is now projected to decline 8% against earlier projected decline of 3.5%.
The company expects operating margin for the fiscal year to be likely affected by decline in G&NS segment operating income. Stiff rivalry and high cost of goods sold pose concerns. However, Q1 performance gained from increases in revenues from Music and Pictures’ segments. It remains focused on the premium segment of the branded products market to maximize growth.
For fiscal 2022, the company now expects sales to improve 16% due to higher Music, Pictures and E&TS segment sales. Strategic acquisitions and joint ventures bode well in the long haul. The company continues to expect 18-million-unit sales for its PlayStation 5.
3M’s shares have declined -23.2% over the past year against the Zacks Diversified Operations Services industry’s decline of -20.4%. The Zacks analyst believes supply-chain disruptions, raw material and logistics cost inflation are weighing on 3M’s operations. Foreign-currency headwinds are impacting the company’s top line.
The company has reduced its sales and earnings forecast for 2022. Due to these headwinds, shares of the company have lost 17% so far this year. However, strong demand across most end markets is supporting 3M’s growth. The company’s pricing actions and restructuring initiatives are supporting its margin performance.
Improvement in abrasives, electrical markets, roofing granules, automotive aftermarket and industrial adhesives businesses bode well for the company. Strength in separation and purification business, owing to strong demand for biopharma filtration solutions for COVID-related vaccines is driving the Healthcare segment’s performance.
(You can read the full research report on 3M here >>>)
Other noteworthy reports we are featuring today include Northrop Grumman Corporation (NOC), Paychex, Inc. (PAYX), and Shopify Inc. (SHOP).
Director of Research
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>>>