For Immediate Release
Chicago, IL – August 20, 2014– Zacks Equity Research highlights Andersons, Inc. (ANDE-Free Report) as the Bull of the Day and Hovnanian Enterprises, Inc. (HOV-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on IMAX Corporation (IMAX-Free Report), AMC Entertainment Holdings, Inc. (AMC-Free Report) and Lions Gate Entertainment Corp. (LGF-Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Agriculture is still hot. The Andersons, Inc. (ANDE-Free Report) recently blew past the Zacks Consensus Estimate in the second quarter by 35.7%. This Zacks Rank #1 (Strong Buy) has the rare combination of both an attractive valuation and strong earnings growth.
The Andersons was founded in 1947 by Harold Anderson in Maumee , Ohio with a single grain elevator. It has grown into an agribusiness company with 6 business segments across North America , including in grain, ethanol, plant nutrient, turf and cob products and consumer retailing.
It also has rail equipment leasing interests in Canada and Mexico .
On Aug 6, The Andersons reported its second quarter results and crushed the Zacks Consensus by 41 cents. Earnings were $1.56 compared to the consensus of $1.15.
The quarter was boosted by the best quarter for the Ethanol Group in its history and strong results from the Plant Nutrient Group. Volume rose 6% in the first half of the year, regaining the loss of volume in the first quarter due to the harsh winter weather.
The Rail Group also contributed in the quarter as the utilization rate rose to 89.1% from 86.1% the prior year. The company expects the utilization rate to continue to rise.
Bear of the Day:
Hovnanian Enterprises, Inc. (HOV-Free Report) continues to struggle despite near record housing prices and strong demand for new homes. This Zacks Rank #5 (Strong Sell) has missed on the Zacks Consensus two quarters in a row.
However, in June, the company still firmly believed that the United States was in the early stages of the housing recovery.
Hovnanian is one of the largest homebuilders in the United States with operations in 16 states and Washington, DC. It builds in some of the largest markets including California, Texas, New Jersey, Ohio and Illinois.
Its homes are sold under the names Hovnanian, Brighton Homes, Parkwood Builders, Town & Country Homes and Oster Homes. It also builds active adult homes through its Four Seasons communities.
On June 4, Hovnanian reported its fiscal second quarter results and missed on the Zacks Consensus for the second quarter in a row.
The company took a loss of $0.04 compared to the consensus which was looking for $0.01. The loss was mostly due to expenses, which rose 7.5% in the quarter.
Revenue rose 6.4% to $449.9 million from $423 million a year ago as average sales price rose.
In March, to boost sales after a slow winter season, it ran a national sales campaign called "Big Deal Days" which resulted in 728 net contracts signed, the largest monthly net contracts since April 2008.
But sales in April and May were choppy and were under a year ago levels.
While Hovnanian still expects to be profitable for the year as it sees the second half of the year being stronger than the first half, fiscal 2014 will under perform compared to 2013.
IMAX, AMC Extend Theater Ties
Leading global entertainment technology company, IMAX Corporation (IMAX-Free Report) extended its revenue-sharing contract with AMC Entertainment Holdings, Inc. (AMC-Free Report) – the second-largest cinema chain in the U.S. – to include 11 new IMAX theatres.
The additional screens will receive IMAX facilities for a 13-year lease term from the date of installation. Meanwhile, the screens will be installed in locations including New York, Newark, Chicago and Phoenix. With this recent agreement, IMAX’s revenue-sharing contract with AMC Entertainment Holdings covers 159 theatres.
In June, IMAX strengthened its partnership with Ster-Kinekor Theatres, a unit of Primedia (Pty) Ltd, with the launch of two theatres in South Africa. The first movie hall is scheduled to be opened by the end of August at The Grove Mall in Pretoria East while the next will be inaugurated in the second half of 2015 at the Eastgate Shopping Centre in Johannesburg.
During the second quarter, IMAX installed 19 new theaters. Notably, the company had 408 theatres operating under joint revenue-sharing arrangements as of Jun 30, 2014 as against 336 theatres a year ago. Hence, we believe that these strategic deals will certainly boost the company’s top line. In the recently concluded quarter, the company’s revenues came in at $79.1 million, down 3.1% year over year. However, the figure surpassed the Zacks Consensus Estimate of $76 million.
IMAX currently carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Better-ranked stocks worth considering in the same sector include Lions Gate Entertainment Corp. (LGF-Free Report), which sports a Zacks Rank #1 (Strong Buy).
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