Today's Must Read
Blackstone (BX) to Benefit from AUM Growth, Cost Woes Linger
Mylan (MYL) Beats on Q2 Earnings, Keeps '16 View
Thursday, August 25, 2016
Today's must-read reports are for GlaxoSmithKline (GSK), Blackstone Group (BX) and Mylan (MYL).
Shares of Glaxo have gained more than 8% year-to-date. Glaxo’s Q2 results were good with the company beating on all fronts. The analyst likes Glaxo’s diversified base and presence in different geographical areas, which should help support revenues. The performance of new products as well as those acquired from Novartis is also encouraging. Glaxo’s efforts to develop its pipeline and efforts to increase cost efficiency are also encouraging. However, challenges remain in the form of increasing competition, genericization and pricing pressure, (You can read the full research report on Glaxo here.)
Blackstone’s shares have gained more than 10% year-to-date. The analyst thinks that Blackstone remains well positioned to capitalize on the changing investment landscape by making long-term investments and augmenting its fund-raising ability. This will lead to continued growth in AUM. Further, the company continues to benefit from the changing investor preference for alternative assets and other risk management strategies. However, mounting operating expenses – which might increase further owing to requirement of more headcount for its well performing funds – remain a major concern (You can read the full research report on Blackstone here.)
Mylan’s shares have not being having a good time of late. Mylan’s second-quarter results were mixed with the company beating on earnings but missing top-line estimates. The analyst likes Mylan’s pursuit of prudent acquisitions and the fact that it is inking strategic deals to drive long-term growth. Moreover, the acquisition of the Renaissance topicals business, when combined with the Meda buyout, is expected to position Mylan as a leader in dermatology. (You can read the full research report on Mylan here.)
Other noteworthy reports we are featuring today include Electronic Arts (EA), Lululemon (LULU) and Whole Foods (WFM).
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Director of Research
Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He also provides weekly commentary to Zacks Premium subscribers and manages the Zacks Focus List and Top 10 portfolios. If you want an email notification each time Sheraz publishes a new article, please click here.