For Immediate Release
Chicago, IL – April 2, 2013 – 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 Time Warner Inc. (TWX), Lions Gate (LGF), Time Warner Cable Inc. (TWC), Netflix, Inc. (NFLX) and AmerisourceBergen Corporation (ABC).
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 Monday’s Analyst Blog:
Time Warner Records New High
Time Warner Inc.’s (TWX) strategic initiatives and an upbeat guidance facilitated it to record a new 52-week high of $58.02 on Thursday, Mar 28.
Shares of this media and entertainment company eventually closed at $57.62, recording a healthy return of 15.8% year to date. The company currently trades at a forward P/E of 15.67x, almost at par with the peer group average of 15.69x.
Alongside, one of the company’s peers, Lions Gate (LGF), reached a new 52-week high of $24.15 on Thursday, Mar 28.
Time Warner has been expanding its digital presence, enabling consumers to enjoy its content through numerous platforms and devices. Alongside, it has entered into content distribution deals with companies like Time Warner Cable Inc. (TWC) and Netflix, Inc. (NFLX).
Meanwhile, Warner Bros. became the first movie studio to offer video on demand, and acquired Flixster, a movie search application on smartphones and mobile devices.
The company also launched a digital movie technology, UltraViolet, through which consumers have the choice to watch movies on their preferred Internet-connected devices. The device is available in the U.S., Canada and the U.K., and now the company plans to launch the technology in Australia, France, Germany, Ireland and New Zealand.
Time Warner has been actively managing its cash flows returning much of its free cash to shareholders via dividend and share repurchases. During the last reported quarter, the company generated free cash flow of $990 million.
Time Warner hiked its quarterly dividend by 11% to 28.75 cents a share and announced a new share buyback plan of $4 billion. From Jan 1, 2012 through Feb 1, 2013, Time Warner bought back 84 million shares, aggregating $3.5 billion.
Going forward, this Zacks Rank #3 (Hold) stock projects low double-digit growth rate in earnings per share for 2013.
AmerisourceBergen Sells Canadian Biz
AmerisourceBergen Corporation (ABC) recently announced that the company has entered into a definitive agreement with Canadian distributor Kohl & Frisch Limited aimed at divesting its Canadian Pharmaceutical Distribution Business.
As per the agreement, AmerisourceBergen Corporation will sell its Canadian pharmaceutical distribution business, AmerisourceBergen Canada Corporation (TVTV) to Kohl & Frisch Limited for approximately $80 million – $100 million. AmerisourceBergen Corporation will hang on to its specialty business unit in Canada.
The performance of the ABCC unit has been disappointing in recent times. On its first quarter fiscal 2013 earnings conference call in Jan 2013, AmerisourceBergen stated that ABCC was having a tough time in implementing a large new retail contract in the Canadian market due to significant reimbursement challenges, particularly for generics.
The transaction is expected to close in the third quarter of fiscal 2013. As a result of the sale, AmerisourceBergen Corporation expects to record an estimated loss on sale and other impairment charges in the range of $160 million and $180 million in the second quarter of fiscal 2013.
Consequently, AmerisourceBergen revised its guidance for 2013. AmerisourceBergen now expects revenues in 2013 to grow by roughly 8% to 10% compared to the previous guidance of 8% – 11%.
AmerisourceBergen increased its earnings guidance in fiscal 2013 to $3.04 – $3.14 from the earlier estimated range of $2.96 – $3.06. The Zacks Consensus Estimate for fiscal 2013 stands at $3.06.
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
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.
Zacks Investment Research
800-767-3771 ext. 9339
More From Zacks.com
- Investment & Company Information
- Time Warner