The Zacks Analyst Blog Highlights: MCG Capital, Grupo Financiero Santander Mexico, Imperva, Newcastle Investment and Aeropostale

Zacks Equity Research

For Immediate Release
 
Chicago, IL – April 24, 2014 – 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 the MCG Capital Corporation (MCGC-Free Report), Grupo Financiero Santander Mexico, S.A.B. de C.V. (BSMX-Free Report), Imperva Inc. (IMPV-Free Report), Newcastle Investment Corp. (NCT-Free Report) and Aeropostale Inc (ARO-Free Report).
 
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

5 Stocks to Lose Post-Earnings
 
This earnings season has not yet proven itself very strong. Of the 85 S&P 500 companies that have reported first quarter numbers through Monday morning, 67% topped on the bottom line and 51% have moved past the revenue estimates. This data from FactSet will reflect a further bearish trend when compared to the four-year average trend. In the last four years, 73% firms have topped earnings while 58% outpaced revenue expectations.

The growth weakness is broad-based and not concentrated in any one sector, with 10 of the 16 Zacks sectors expected to show earnings declines in the first quarter. Among the major sectors, earnings are expected at this stage to be down 7.3% in Finance, 6.9% in Technology, 9.0% in Energy, and 14.4% in Autos. Business Services and Utilities are the only sectors expected to show double-digit earnings growth.

The first quarter earnings season is expected to be the low point of this year’s earnings picture, both in terms of total earnings as well as the growth rate.

Here we will pick 5 companies that are not likely to beat earnings and also have other weaknesses. All these stocks carry ‘Sell’ ratings, and their Earnings ESP and average earnings surprise in the last four quarters are negative. This year’s earnings growth estimates for these 5 companies are negative and they are also seeing negative estimate revisions for the current quarter and year.

MCG Capital Corporation (MCGC-Free Report)

MCG Capital is a provider of debt and equity capital to domestic private companies. It may also invest in minority or own equity positions.

Estimated Earnings Release Date: April 29

Rank: Zacks Rank #4 (Sell)

Current Quarter Earnings ESP: -16.67%

Average EPS Surprise (Last 4 Quarters): -6.63%

Last EPS Surprise: -18.18%

This Yr`s Estimated Growth: -43.79%

Current Quarter Estimate Revisions (Over 60 Days): Down from 13 cents to 6 cents

Current Year Estimate Revisions (Over 60 Days): Down from 49 cents to 29 cents

Grupo Financiero Santander Mexico, S.A.B. de C.V. (BSMX-Free Report)

It provides various banking services in Mexico. It serves individuals as well as small and medium-sized enterprises, and corporate customers.

Estimated Earnings Release Date: April 29

Rank: Zacks Rank #4 (Sell)

Current Quarter Earnings ESP: -5%

Average EPS Surprise (Last 4 Quarters): -0.91%

Last EPS Surprise: -29.17%

This Yr`s Estimated Growth: -4.21%

Current Quarter Estimate Revisions (Over 60 Days): Down from 21 cents to 20 cents

Current Year Estimate Revisions (Over 60 Days): Down from 90 cents to 87 cents

Imperva Inc. (IMPV-Free Report)

It is a developer, seller and service provider of data center security solutions. The company also offers cloud-based services.

Estimated Earnings Release Date: May 1

Rank: Zacks Rank #5 (Strong Sell)

Current Quarter Earnings ESP: -19.74%

Average EPS Surprise (Last 4 Quarters): -300.13%

Last EPS Surprise: -1133.33%

This Yr`s Estimated Growth: -156.31%

Current Quarter Estimate Revisions (Over 60 Days): Loss estimates widened from 70 cents to 76 cents

Current Year Estimate Revisions (Over 60 Days): Loss estimates widened from $2.32 to $2.64

Newcastle Investment Corp. (NCT-Free Report)  

Newcastle Investment is a REIT firm that invests in and manages real estate related and other debt investments. The company is REIT qualified for federal income tax purposes.

Estimated Earnings Release Date: May 2

Rank: Zacks Rank #4 (Sell)

Current Quarter Earnings ESP: -28.57%

Average EPS Surprise (Last 4 Quarters): -19.21%

Last EPS Surprise: -11.11%

This Yr`s Estimated Growth: -26%

Current Quarter Estimate Revisions (Over 60 Days): Down from 10 cents to 7 cents

Current Year Estimate Revisions (Over 60 Days): Down from 42 cents to 37 cents

Aeropostale Inc (ARO-Free Report)

Aeropostale is a specialty retailer of casual apparel and accessories. As of Mar 13, the company operated 864 Aeropostale stores in 50 states and Puerto Rico, 78 Aeropostale stores in Canada, and 151 P.S. from Aeropostale stores in 31 states and Puerto Rico.

Estimated Earnings Release Date: May 22

Rank: Zacks Rank #4 (Sell)

Current Quarter Earnings ESP: -1.39%

Average EPS Surprise (Last 4 Quarters): -17.12%

Last EPS Surprise: -16.67%

This Yr`s Estimated Growth: -51.77%

Current Quarter Estimate Revisions (Over 60 Days): Loss estimates widened from 17 cents to 72 cents

Current Year Estimate Revisions (Over 60 Days): Loss estimates widened from 71 cents to $1.72

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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