For Immediate Release
Chicago, IL – July 17, 2013 – Zacks Equity Research highlights American Woodmark Corporation (AMWD-Free Report) as the Bull of the Day and Taseko Mines Limited (TGB-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Yahoo! Inc. (YHOO-Free Report), Facebook (FB-Free Report) and Microsoft (MSFT-Free Report).
Here is a synopsis of all five stocks:
Continued recovery in the housing markets and resilient consumer demand have resulted in rising estimates, sending this cabinet maker to Zacks Rank #1 (Strong Buy).
The company manufactures cabinets under four major brands: American Woodmark, Timberlake Cabinetry, Shenandoah Cabinetry and Waypoint Living Spaces and sells more than 435 cabinet lines in a wide variety of design materials and finishes.
Its products are sold through a network of independent dealers and distributors, and directly to major builders and Lowe's and The Home Depot. The company operates 11 manufacturing facilities and 9 builder service centers across the country.
The company reported its fourth quarter ended April 30, 2013 on June 4, 2013. Net sales rose by 26% compared with the fourth quarter of the prior fiscal year to $171.1 million. Net income reported in the fourth quarter of fiscal year 2013 was $5.2 million, or 34 cents per diluted share, compared with a net loss in the fourth quarter of fiscal year 2012 of ($6.0 million), or ($0.42) per diluted share.
The results were substantially ahead of the Zacks consensus estimate of $0.17 per share.
The Company experienced double digit sales gains in each of its sales channels during the fourth quarter of fiscal year 2013, led by new construction sales growth of more than 40%. Remodeling market also recorded a decent mid-single-digit improvement, resulting in a double-digit surge in sales.
This year has been quite challenging for copper miners as declining demand and rising inventories. Disappointing results have in turn led to sharp downward estimates revisions, sending Taseko Mines to a Zacks Rank #5 (Strong Sell).
On May 2, 2013, Taseko reported it first quarter 2013 results. The quarter resulted in an adjusted loss of $2.9 million, down from net earnings of $3.1 million for the first quarter of 2013. On a per-share basis, the loss was $0.01 per share, below consensus.
Due to disappointing results, quarterly and annual estimates have been revised sharply downwards in the past few weeks by analysts.
Zacks consensus estimate for the current quarter now stands at a negative $0.01 per share versus $0.04 per share, 60 days ago, while the full-year consensus estimate is $0.11 per share now, down from $0.21 per share.
While the company is trying to grow production and lower costs, lower copper prices resulting from high inventories and global slow-down continue to act as headwinds.
Yahoo Light in Revs, Beats on EPS Again
Four quarters into Marissa Mayer's tenure as CEO at Yahoo! Inc. (YHOO-Free Report), and we have yet to see anything but positive earnings surprises. Yahoo brought in EPS of 30 cents (Zacks subtracts stock-based compensation from our earnings numbers) on $1070 million (minus traffic acquisition costs, or TAC) in revenues for the second quarter.
What this amounts to is a miss on the top line (we had expected revenues of $1087 million in the quarter) and a 4-cent beat on the bottom line. So it's a 15% positive earnings surprise, even though revenues were down a bit.
Obviously, Yahoo's done a lot of heavy lifting in the past year, both buying -- companies like Tumblr, Bignoggins and other mobile apps and gaming companies -- and selling -- $6+ million in shares of its Chinese Internet partner Alibaba. The windfall from the Alibaba sale (Yahoo still owns a 20% stake in the company) was given back to shareholders, but even with these major acquisition plays Yahoo still sits on $4.8 billion in cash.
Investors and analysts alike have been very high on the company, with YHOO shares having shot up 70% since Mayer took the helm. Yahoo currently has a Zacks Rank #1 (Strong Buy), and obviously Mayer herself is receiving plenty of support, especially considering the... shall we say "rather low bar" set by the previous 3 CEOs at the company.
Yahoo certainly has had a colorful past few years. Who remembers Scott Thompson's falsified bio? Carol Bartz's "f-bombs"? The media did not treat Yahoo kindly over this time period, when companies like Facebook (FB-Free Report) were able to take market share. But with the ship apparently righted -- mobile app exposure is obviously a big part of the web industry, and Yahoo appears to hold a nice hand right now -- YHOO shares have climbed back up from the nether-regions of $12 and change, and are now at levels not seen since Jerry Yang screwed up that Microsoft (MSFT-Free Report) deal.
The question remains whether execution of creating synergies with all its new properties will go smoothly, but Yahoo is clearly in a better place than it was a year ago. Missing estimates on the revenue side is not terrific news, but it's likely not anything an Alibaba IPO can't fix. As for now, Marissa Mayer's honeymoon with her company and the media continues.
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