For Immediate Release
Chicago, IL – November 07, 2013 – Zacks Equity Research highlights NuVasive ( NUVA- Free Report) as the Bull of the Day and Jamba Inc.'s ( JMBA- Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the DICK'S Sporting Goods Inc. ( DKS- Free Report), The Walt Disney Company ( DIS- Free Report) and Five Below, Inc. ( FIVE- Free Report.
Here is a synopsis of all five stocks:
Bull of the Day:
NuVasive ( NUVA- Free Report) is $1.5 billion medical device company specializing in products for the surgical treatment of spine disorders. NUVA's main platform, Maximum Access Surgery ( MAS), allows the surgeon to perform minimally invasive surgery on the spine while minimizing tissue disruption and enabling safe navigation of the body's nerve anatomy.
NuVasive was founded in 1997, began commercial sales in 2001 and has grown revenues from approximately $100 million in 2006 to $619 million in 2012.
Last week, NUVA reported strong third quarter results with sales up 14% to $169 million and profits beating the Street by over 100% with EPS of $0.28 vs. the consensus of $0.13. NuVasive's management raised its 2013 guidance to $670 million in sales from $655 million previously and bumped EPS expectations by about 14%.
In response, analysts raised their projections for NUVA citing its ability to gain market share in the $9 billion global spine procedure market, of which they are the 4th-largest player. NuVasive's product portfolio saw strong performance in several segments with 12% growth in lumbar, 27% in cervical, and 11% in biologics.
International revenue grew 31% in the third quarter, despite headwinds in Latin America. Last quarter, management had lowered its full-year international revenue growth guidance to 25% and reiterated this expectation despite improved performance this quarter.
Bear of the Day:
Jamba Inc.'s ( JMBA- Free Report), through its subsidiary, Jamba Juice Company, offers delicious blended beverages, juices, and fruit smoothies. The company just reported third-quarter EPS of $0.15 cents missing the consensus of 18 cents by 16.7% and the year-ago quarter’s earnings of 21 cents by 28.6%.
Total revenue in the quarter was down 6.3% year over year to $61.4 million owing to the decline in company sales and lower comps. Quarterly revenues were also below the Zacks Consensus Estimate of $62 million by nearly 1%.
The company could offer a host of reasons to explain the sales and profits dip, including the uncertain economic and political environment, which may have led cash-conscious customers to spend less on eating out. Adverse weather in some major markets also seems to be responsible for such disappointing results in the third quarter.
But the bottom line for food, just like fashion, is that customers can be fickle and the competition can be fierce. With new venues like Protein Bar in Chicago offering healthy, delicious, and fast shakes, the Jamba appeal may be less juicy.
Dick's Partners with ESPN
Full-line sporting goods retailer DICK'S Sporting Goods Inc. ( DKS- Free Report) is aggressively expanding its operations by opening stores at new locations and collaborating with other companies to grow business. The latter measure was evident from the company’s recently concluded multi-year partnership agreement with ESPN, the all-sports media outlet owned by The Walt Disney Company ( DIS- Free Report).
As per the deal, DICK’S Sporting has now become an exclusive e-Commerce supplier of all licensed merchandise and sporting goods on ESPN.com as well as other related digital properties. The company did not disclose any financial terms of the deal.
In the near future, the tie-up between two companies will likely enable fans to purchase licensed fanwear available at the ESPN.com, ESPN The Magazine, ESPN Radio and mobile properties like ScoreCenter, GameCast and WatchESPN.
The agreement also strengthens its existing relationship with ESPN. Prior to this, DICK’S Sporting and ESPN had jointly sponsored the coverage of ‘Champ Week’ for college basketball earlier this year. Apart from this, in late August, ESPN telecasted DICK’S Sporting’s ‘Hell Week,’ a documentary based on an intense pre-season training camp of a high school football teamon ESPN2 and ESPNU.
We believe that the partnership will facilitate DICK’S Sporting to expand its customer base and drive top-line growth. Apart from forming alliances with other companies, DICK’S Sporting is expanding its store base to drive growth. The company intends to increase retail store count to 800 by the end of fiscal 2017 from 518 at the end of fiscal 2012. Further, the company will remodel its existing stores from time to time in order to keep them up-to-date and productive.
DICK’S Sporting is also concentrating on customer needs in order to boost sales. Further, to ease customers’ shopping experience, the company has introduced a mobile application for iPhones and Android Smartphones that enables customers to locate DICK’S Sporting stores in any particular area and buy goods directly, using the application.
We believe that the company’s strategic measures of consolidating its store base and the use of technology to provide better services will enhance its relationship with present customers, attract new customers and effectively promote products.
Other Stocks to Consider
DICK’S Sporting currently carries a Zacks Rank #3 (Hold). However, other stocks in the retail sector that are worth a look include Five Below, Inc. ( FIVE- Free Report), which has a Zacks #2 Rank (Buy).
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