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Top Analyst Reports for AT&T, Dominion Energy & Honda

Mark Vickery
Top Analyst Reports for AT&T;, Dominion Energy & Honda

Friday, May 10, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AT&T (T), Dominion Energy (D) and Honda (HMC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

AT&T’s shares have lost -4.7% over the past year, underperforming the Zacks Wireless National industry's increase of +8%. AT&T reported strong first-quarter 2019 results driven by solid domestic wireless business and incremental contribution from WarnerMedia assets.

The Zacks analyst thinks the company will continue its growth momentum through 2019 as it remains poised to benefit from the impending 5G boom and extended LTE coverage, while focusing on reducing its huge debt burden. AT&T also aims to reinvent digital advertising and give a new dimension to its business model with integrated business platforms.

AT&T is facing a steady decline in linear TV subscribers and legacy services. The company’s wireline division is facing losses in access line due to competitive pressure from voice-over-Internet protocol service providers. As AT&T tries to woo customers with discounts, freebies and cash credits, margin pressures tend to soar.

(You can read the full research report on AT&T here >>>).

Shares of Dominion Energy have gained +14.4% over the past year, outperforming the Zacks Electric Power industry, which has increased +11.1% over the same period. Dominion Energy’s first-quarter earnings and revenues lagged estimates due to mild weather in Virginia and South Carolina, which in turn largely impacted demand.

The Zacks analyst thinks Dominion Energy is benefiting from its regulated growth projects and synergies from acquisition. The company’s expansion of electric transmission, natural gas facilities and midstream assets are strong positives. The company’s completion of its merger with SCANA became immediately accretive to earnings and will likely boost the bottom line further over the long term.

However, Dominion Energy’s future earnings may get affected due to increase in pension expenses and share dilution. The company and its gas unit’s dependency upon third-party producers for natural gas supply increases risk. Any delay in ongoing capital projects may impact Dominion Energy’s profitability.

(You can read the full research report on Dominion Energy here >>>).

Honda’s shares have outperformed the Zacks Foreign Automotive industry over the past year, losing -20.8% vs. -28.5%. In fourth-quarter fiscal 2019, Honda’s operating profit declined 66.6% year over year. This decline resulted from the adverse effects of foreign currency and impact of changes in the global automobile production network and capability in Europe.

These negative factors were partly offset by continuous cost-reduction efforts. The Zacks analyst likes Honda’s Vision 2030 strategy, through which the company aims to boost coordination between research and development as well as procurement and manufacturing of products. However, frequent cases of recall are concerns for the company.

(You can read the full research report on Honda here >>>).

Other noteworthy reports we are featuring today include Marathon Petroleum (MPC), Public Service Enterprise (PEG) and Sprint (S).

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Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

AT&T (T) Rides on 5G Deployment to Deter Legacy Service Woes

Dominion (D) Gains from Investments, Share Dilution a Concern

Honda (HMC) to Gain From Vision 2030 Plan, Recalls a Woe

Featured Reports

Andeavor Buy Boosts Marathon (MPC), Low Oil Discount Hurts

The Zacks analyst is worried over lower crude discounts that weaken the company's refining profitability.

PSEG (PEG) Gains From Modernization, Lower Power Prices Ail

Per the Zacks analyst, Public Service Enterprise's efforts to modernize its distribution systems should bode well for the company. Yet, lower power prices are hurting its gross margin.

Sprint (S) Adds Digital Capabilities to Negate Wireline Woes

Per the Zacks analyst, higher network investments and addition of digital capabilities should drive Sprint's future performance and boost margins, despite waning wireline business due to legacy woes.

Expedia (EXPE) Rides on Gross Bookings Amid Sluggish trivago

Per the Zacks analyst, Expedia's strong gross bookings owing to rising stayed nights and robust Vrbo are driving its top-line growth.

Loan Growth, Acquisitions Aid KeyCorp (KEY), Costs a Concern

Per the Zacks analyst, continued improvement in loans, acquisitions and higher interest rates will support KeyCorp.

Exploration Progress, Debt Reduction to Aid Freeport (FCX)

Per the Zacks analyst, Freeport should gain from its progress in exploration activities to expand production capacity and efforts to deleverage balance sheet.

Fee-based Revenue Continues to Aid Principal Financial (PFG)

Per the Zacks analyst, Principal Financial's focus on fee-based revenue sources will continue to help the company in delivering strong operational performance.

New Upgrades

Motorola (MSI) Rides on Strength in Public Safety Domain

Per the Zacks analyst, Motorola's growth momentum is likely to continue throughout the year on the back of solid demand trends, healthy growth dynamics and strength in the public safety domain.

Strong Revenues, Balance Sheet Aid Lincoln National (LNC)

Per the Zacks analyst, expanding product suite in attractive markets and increasing the breadth and effectiveness of distribution have aided revenues. A strong capital position enables investments.

Strong Demand, DuPont Asset Buyout to Aid FMC Corp (FMC)

The Zacks analyst thinks that FMC will gain from synergies of DuPont's crop protection asset acquisition and strong demand for its herbicide and insecticide products in FY19.

New Downgrades

Higher Costs & Debt Levels Hurt International Flavors (IFF)

Per the Zacks analyst, International Flavors' results are likely to bear the brunt of input cost inflation, unfavorable foreign currency impact and high debt levels.

Sluggish Semiconductor Spending Hurts MKS Instruments (MKSI)

Per the Zacks analyst, the continuing slowdown in semiconductor capital equipment spending negatively impacts MKS Instruments' top-line growth.

Organic Sales Headwinds & High Costs to Hurt Rexnord (RXN)

Per a Zacks analyst, Rexnord will likely suffer from adverse impacts of product line simplification initiatives and weak industrial distribution business in Europe. High costs remain a concern.

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AT&T Inc. (T) : Free Stock Analysis Report
Sprint Corporation (S) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
Dominion Energy Inc. (D) : Free Stock Analysis Report
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