For Immediate Release
Chicago, IL – August 14, 2014 – Zacks Equity Research highlights Akorn Inc (AKRX-Free Report) as the Bull of the Day and Dean Foods Corp (DF-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on IMAX Corp. (IMAX-Free Report), Walt Disney Company (DIS-Free Report) and Lions Gate Entertainment Corp. (LGF-Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Akorn Inc (AKRX-Free Report) has beaten the Zacks Consensus Estimate for the second consecutive quarter, and this beat shows investor just what they wanted to see. Today, AKRX is a Zacks Rank #1 (Strong Buy), and it is the Bull of the Day.
Akron recently reported another beat of the Zacks Consensus Estimate, but this quarter saw a beat on top and on the bottom line too.
Investors love to see beats increase in size from one quarter to the next. For AKRX we saw a $0.05 beat or a 27% positive earnings surprise which surpassed the $0.02 or 15% positive earnings surprise in the last quarter.
More importantly to aggressive growth investors, the company beat on the top line for the first time since the September 2013 quarter. Revenue of $151M was $8M or 5.6% ahead of the Zacks Consensus Estimate.
Akorn manufactures and markets diagnostic and therapeutic ophthalmic pharmaceuticals, niche hospital drugs, and injectable pharmaceuticals. The company was founded in 1971 and is headquartered in Lake Forest, Illinois.
Bear of the Day:
Dean Foods Corp (DF-Free Report) has missed the Zacks Consensus Estimate in each of the last five quarters. DF is a Zacks Rank #5 (Strong Sell), and it is the Bear of the Day.
Dean Foods Company is a food and beverage company that processes and distributes milk and other dairy products in the United States. The company offers its products under approximately 50 local and regional proprietary or licensed brands and private labels, such as the TruMoo, Alta Dena, Berkeley Farms, Country Fresh, Dean's, Garelick Farms, LAND O LAKES, Lehigh Valley Dairy Farms, Mayfield, McArthur, Meadow Gold, Oak Farms, PET, T.G.Lee, Tuscan, and others. Dean Foods Company was founded in 1925 and is headquartered in Dallas, Texas.
In the Bull of the Day I talked about the change in short interest and how the stock performed over the last month. With DF, we have a completely different story.
Over the month of July, DF is down by a little more than 13%. That is just what the shorts want to see... but what have they done with their positions?
The data shows that there were 10.3M shares sold short at the end of June and that number jumped to 13.8M shares sold short by the end of July. Due to significant daily volume, the days to cover moved up from 3.6 to 5.1.
IMAX Poised on Blockbuster Hollywood Productions
On Aug 12, 2014, we issued an updated research report on IMAX Corp. (IMAX-Free Report). Blockbuster Hollywood releases, increasing number of theater installations, higher backlogs and a growing presence in China will continue to drive the company’s growth going forward.
IMAX has delivered positive earnings surprises in two of the last four quarters last year, with an average beat of a negative 3.70%. In second-quarter 2014, the company’s top and the bottom lines outpaced the respective Zacks Consensus Estimate.
IMAX is set to garner strong box-office revenues with strong 3D movie line-ups for the coming quarters. The blockbuster action flick, Transformers 4, was screened across 75 IMAX theaters in China toward the end of second quarter, and is expected to drive the company’s box-office business further in the forthcoming quarters.
Notably, IMAX announced a content delivery agreement with Wasu Digital TV Media Group as part of the IMAX TCL home theater initiative. The company also entered into a multi-picture agreement with The Walt Disney Company (DIS-Free Report).
Recently, IMAX also signed an agreement with Europe’s major cinema operator, Nordic Cinema Group, to install a theater at the latter’s SF Bio multiplex. Moreover, the company has teamed up with South Africa’s leading movie chain company, Ster-Kinekor, to launch its first theater in the country.
Despite a strong backlog of 419 theaters, IMAX has given a tepid installation guidance of around 112 systems in 2014. The company’s business model is gradually shifting from equipments to box-office releases. As a result, it is becoming increasingly dependent on the success of Hollywood films. The company’s future performance now depends on the selection of movies the company makes and their performance on IMAX theaters.
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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