For Immediate Release
Chicago, IL – March 29, 2012 – Zacks Equity Research highlights The Washington Post (WPO) as the Bull of the Day and Logitech International (LOGI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Research In Motion Ltd., (RIMM), Apple Inc (AAPL) and Google Inc. (GOOG).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
The Washington Post's (WPO) top and bottom lines surpassed the Zacks expectations in the fourth quarter of 2011. The quarterly earnings of $8.75 per share beat the Zacks Consensus Estimate of $5.36 (but dropped 23.8% from the prior-year quarter). Total revenue of $1,063.4 million also came ahead of the Zacks Consensus Estimate of $1,038 million.
Kaplan Education division has undertaken a restructuring plan to lower its costs structure in the near future. Further, Kaplan International remains promising, registering growth of 14% during the quarter. The Cable division is also performing well, reflecting sustained improvement in Internet and telephone service revenues.
We have a long-term Outperform recommendation on the stock. Our target price of $433.00, 24.1X 2012 EPS, reflects this view.
We maintain our Underperform recommendation on Logitech International (LOGI) with a target price of $7.00. In the recently concluded quarter, the company witnessed lower-than-expected sales, especially in the EMEA region. This was due to product gaps in the video and digital home categories.
Two of the company's primary business divisions also reported revenue declines. Furthermore, the operating income declined due to weaker-than- expected demand and high research and development expenses during the quarter. In addition, for fiscal 2012, the company expects a decline in sales of its PC peripherals, primarily in the mature markets.
Our long-term Underperform recommendation on the stock indicates that it will perform below the market over the next six to twelve months. Our target price is $7.0 or 22.6x 2012 EPS, which is well within the historical range.
Latest Posts on the Zacks Analyst Blog:
RIMM Downgraded to Underperform
We are downgrading our recommendation on Research In Motion Ltd., (RIMM) to Underperform from Neutral on the back of continued somber financial results coupled with a reduced outlook.
Research In Motion has consistently struggled ever since Apple Inc’s (AAPL) iPhone hit the market. The situation worsened further when Google Inc. (GOOG) launched its Android software, which was adopted by several handset manufacturers. Presently, Research In Motion’s BlackBerry operating system has become obsolete and continues to lose market share. Moreover, the recent launch of Apple’siPhone 4S has further hampered its market share.
The company’s global smartphone market share fell 12% in the last quarter compared with 19% in the year-ago quarter. The situation is worst in the US, where revenues declined 7% year over year.
Research In Motion is planning to launch its new QNX-based smartphones in the second half of the year. However, we believe that such a delay in product launch will further create pressure not only on their present market share but also on the average selling price (ASP).
In the mature North American market, Research In Motion has failed to compete with large and established competitors, while in the lucrative emerging markets, the company is facing cut-throat competition from the low-cost phone manufacturers of Taiwan, China and India. Moreover, availability of low-priced Android-based smartphones and iPhone in these emerging markets is a big threat for both enterprise and retail consumer segments.
Recently, the company launched the BlackBerry PlayBook OS 2.0 application for its tablets to improve its email functioning. However, we believe that the upgradation will not make a huge difference to its market share as the whole tablet market is dominated by the recently launched iPad 3. In the opening day alone, Apple sold a record 6 million iPads.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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