Today's Must Read
BNY Mellon (BK) Q3 Results Reflect Constant Cost Saving Efforts
3M (MMM) Remains Poised for Healthy Growth Despite Headwinds
Tuesday, November 15 2016
Today's Research Daily features new research reports on 16 major stocks, including McDonald’s (MCD), Bank of New York Mellon (BK) and 3M (MMM).
Buy-ranked McDonald’s’ shares have struggled lately as a result of the tough operating environment for the restaurant space in general; the entire space has been struggling lately. However, the fast food giant reported encouraging third-quarter adjusted earnings on the back of strong comps growth.
The analyst likes the manner in which the company is trying to strengthen its position via various sales and digital initiatives like menu innovation and introduction of value meals. However, higher labor costs, along with currency headwinds, might hurt profits. (You can read the full research report on McDonald’s here.)
Bank of New York Mellon’s shares have also struggled recently. The Buy ranked stock’s third-quarter earnings easily outpaced expectations. Rise in revenues, lower expenses and benefit from provisions were partially offset by a fall in financing-related fees.
The analyst likes the company’s dedicated global reach, which, accompanied by a diversified product mix and inorganic growth opportunities will improve profitability going forward. Further, cost-saving initiatives will help sustain earnings momentum. However, pressure on margins owing to the persistent low-rate environment is expected to continue in the near term. (You can read the full research report on Bank of New York Mellon here.)
3M’s shares have increased by more than 15% year-to-date but have struggled over the last quarter. Weak revenue growth and intense competition are likely to peg back 3M’s profitability to some extent. 3M is facing increased pension expenses as its workforce begins to retire. Nevertheless, 3M managed to beat third-quarter earnings by a cent.
The analyst likes the company’s focused roadmap on its broad financial objectives for the next five years. 3M is continuing with its portfolio restructuring efforts by divesting non-core assets and making investments in other lucrative markets. 3M expects its restructuring efforts to yield $500–$700 million in annual operational savings by 2020. (You can read the full research report on 3M here.)
Other noteworthy reports we are featuring today include Constellation Brands (STZ), Viacom (VIAB) and Statoil (STO).
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