For Immediate Release
Chicago, IL – November 21, 2011 – 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 Gap Inc. (GPS),
American Eagle Outfitters Inc. (AEO), The
TJX Companies Inc. (TJX), Zimmer Holdings
(ZMH) and Stryker Corporation (SYK).
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:
Negative Comps Hit Gap’s Profits
Battered by negative comparable store sales growth, increased
input costs and deep discounting, Gap Inc.’s (GPS)
third-quarter 2011 earnings of 38 cents per share declined 20.8%
from the prior-period earnings of 48 cents per share. However,
quarterly earnings managed to beat the Zacks Consensus Estimate by
a penny. The impacts of negative forces on earnings per share were
partially offset by the company’s massive share repurchases.
Quarter in Detail
During the quarter, net sales edged down 1.9% to $3,585.0
million from $3,654.0 million in the year-ago quarter. Total
revenue marginally missed the Zacks Consensus Estimate of $3,586.0
million.
Same-store sales slipped 5.0% for the quarter versus an increase
of 1.0% in the prior-year quarter primarily due to negative
double-digit comparable sales growth in the company’s women’s
business. Gap reported a decline in same-store sales across all
brands. Same-store sales of Gap North America, Banana Republic
North America, Old Navy North America and International brands
declined 6.0%, 1.0%, 4.0% and 10.0%, respectively.
Quarterly gross profit fell 12.7% year over year to $1,314.0
million, and gross margin contracted 450 basis points (bps) to
36.7%. Operating expenses, as a percentage of sales, leveraged 40
bps from the prior-year quarter to 27.0%. Gap’s operating income
plunged 31.3% year over year to $346.0 million, while operating
margin shriveled 410 bps to 9.7%.
Balance Sheet and Dividend
At the end of third quarter, the company has cash and cash
equivalents of $1,392.0 million compared with $1,403.0 million in
the year-ago period and free cash flow of $222.0 million.
In third-quarter 2011, the company deployed $645.0 million of
cash toward share buybacks and $55.0 million toward dividends.
Gap’s board of directors has authorized a new $500.0 million share
repurchase program. During the quarter, Gap paid a quarterly
dividend of 11.25 cents per share to its shareholders, up 13.0%
from the prior-year period.
In the reported quarter, the company repurchased about 107
million shares for $2.0 billion.
Year-to-date, the company has made a capital expenditure of
$416.0 million and expects to expend $575.0 million in Capex for
fiscal 2011.
Store Count
During the reported quarter, Gap opened 41 company-operated
stores and shuttered 29 locations, bringing the total
company-operated store counts to 3,065. Moreover, in the third
quarter, the company has opened 18 stores in franchise business
while closed 2 stores bringing the total franchise store counts to
211.
In an effort to improve customer experience and enhance
productivity per square footage, the company intends to
strategically close and consolidate square footage at Gap and Old
Navy brands. Gap wants to strategically reduce its Gap North
America store counts to 950 by the end of fiscal 2013 including 700
specialty stores and approximately 250 outlets.
Contrary to this, the company is planning aggressively to expand
its international and franchise business. The company intends to
triple the Gap store count in China from 15 to approximately 45
during the next 12 month period. Moreover, the company is
anticipating opening a total of 60 franchise stores by the end of
fiscal 2011, of which it has already opened 33.
Guidance
The company has maintained its fiscal 2011 earnings guidance in
the range of $1.40 to $1.50 per share. The current Zacks Consensus
Estimate stood at $1.50 per share which at the higher end of
guidance range.
Based in San Francisco, California, Gap is a premier
international specialty retailer offering a diverse range of
clothing, accessories, and personal care products for men, women,
children and babies. Its flagship brands include Gap, Banana
Republic, Old Navy, Piperlime and Athleta.
In a drive to boost international operations, Gap consolidated
its foreign business under one division from London. Lackluster
sales in North America compelled the company to explore business in
other shores. In order to counter the domestic market saturation,
Gap is aiming to generate 30% of total sales from its overseas
operations and online business by 2013.
To achieve this end, Gap has opened its stores in China, Italy
and Australia and has launched e-commerce business in more than 90
markets, which are expected to bolster its top and bottom line
performance, moving forward.
Above all, Gap operates in a highly fragmented market and
competes with national and local department stores and discount
stores, such as American Eagle Outfitters Inc.
(AEO) and The TJX Companies Inc. (TJX), which
offer products at fire sale prices. To retain the existing market
share, the company may have to slash sales prices, which could
affect margins.
Gap’s shares maintain a Zacks #2 Rank, which translates into a
short-term Buy rating. Our long-term recommendation on the stock
remains Neutral.
Zimmer Acquires ExtraOrtho
Zimmer Holdings (ZMH), a global orthopedic and
surgical products company, has acquired Memphis-based medical
device company ExtraOrtho. ExtraOrtho with its external fixation
line, XtraFix External Fixation System, is expected to broaden
Zimmer's existing portfolio of trauma-care solutions and also
bolster the company's position in the external fixation market,
which is estimated to be $820 million. However, financial terms of
the deal have not been disclosed.
On the heels of a series of newly launched technologies, Zimmer
has emerged as one of the fastest growing companies in the $5.5
billion global trauma market. During the third quarter of 2011,
Zimmer recorded double-digit sales growth in its trauma business
across all geographies, particularly in Europe, Middle East and
Africa, where the growth rate was 21.4% (at CER).
Over the past few quarters, the company has been witnessing
expansion in the NCB Periprosthetic Plating system, which primarily
addresses complex femoral fractures that can occur around the knee
or a hip implant. Furthermore, the Natural Nail product family,
particularly the Cephalomedullary Nail, continues to be the growth
driver for this segment.
The company has embarked on its growth trajectory with new
product launches, implementation of new technologies and expansion
into the emerging markets. Additionally, we believe the company’s
strong cash generation, with $553 million in cash and cash
equivalents and debt as a percentage of total capital at 21.6% in
the last reported quarter, facilitates meaningful investment and
acquisitions.
However, Zimmer continues to witness challenges in the form of
pricing pressure and lower procedure volumes resulting from
economic uncertainty. Moreover, the company faces tough competition
from players such as Stryker Corporation (SYK),
among others.
We have a Neutral recommendation on Zimmer, in line with its
peers. All the stocks mentioned above retain short-term Zacks #3
Ranks (Hold).
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
About Zacks
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
AMER EAGLE OUTF (AEO): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
STRYKER CORP (SYK): Free Stock Analysis Report
TJX COS INC NEW (TJX): Free Stock Analysis Report
ZIMMER HOLDINGS (ZMH): Free Stock Analysis Report
Zacks Investment Research
TJX Companies (NYSE:TJX)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
TJX Companies (NYSE:TJX)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024