Friday, March 10, 2017
Today's Research Daily features new research reports on 16 major stocks, including 3M (MMM), FedEx (FDX) and Netflix (NFLX).
3M shares have gained +6.7% over the last six months, outperforming the Zacks Diversified Operations industry, which has gained +5.2% over the same period. The Zacks analyst likes 3M's global footprint, diversified product portfolio and ability to penetrate different markets. During 2016–2020, 3M expects 8–11% growth in earnings per share driven by an organic sales growth of 2–5%. 3M is standardizing its business processes through a new, global ERP system and expects $500 to $700 million in annual operational savings by 2020. However, the company is facing increased pension expenses as its workforce begins to retire. In addition, the company is susceptible to high commodity price risks. Earnings estimate for the current year has also decreased in the past three months, signifying somewhat negative investor sentiment. (You can read the full research report on 3M here.)
Shares of FedEx lost ground following the weaker than expected quarterly results, but they have been strong performers in the post-election period (up +15.4% vs. +2.6% for the Zacks Air Freight industry & +7.5% for the S&P 500 index). The Zacks analyst likes. FedEx's decision to reward shareholders through dividend payments and share buybacks. Despite such positives, the company is likely to struggle in the third quarter of fiscal 2017 due to higher costs of package deliveries in the recent holiday season and the shift in the product mix. The pessimism regarding the stock ahead of its fiscal third-quarter earnings release can be gauged by the 3.3% decrease in the Zacks Consensus Estimate over the last two months. (You can read the full research report on FedEx here.)
Netflix’s shares outperformed the Zacks categorized Broadcast Radio/TV sector over last one year, jumping +43.9% versus the sector’s gain of +16.9%. The Zacks analyst likes its focus on global expansion and original content. The streaming giant has experienced 7.05 million net new additions in the last reported quarter, taking the total count to 19 million for 2016. Moreover, for the first time, Netflix expects International segment to post profits in the current quarter to the tune of $16 million. Netflix remains committed to make 50% its total content original over the next few years. It estimates content spending in 2017 to be around $6 billion. However, investments in original/acquired content remain a drag on profitability. (You can read the full research report on Netflix here.)
Other noteworthy reports we are featuring today include Edison International (EIX), Autodesk (ADSK) and Domino’s (DPZ).
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Director of Research
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
3M (MMM) Shows Long-Term Promise with Sustainable Growth
FedEx's (FDX) Dividend Payments Consistent, Risks Stay
Netflix (NFLX) Poised to Grow on Expansion, Risks Remain
Edison International (EIX) Tops Q4 Earnings, Misses on Sales
The covering analyst thinks improved revenue growth primarily drove Edison International's better-than-expected earnings growth in Q4.
Southwestern Energy (SWN) Q4 Earnings Miss, Improve Y/Y
The Zacks analyst believes that lower production resulted in Southwestern Energy's earnings miss in the fourth quarter.
United Natural (UNFI) Q2 Earnings In-Line; Misses on Sales
The Zacks analyst thinks the company's focus on acquisition was offset by the ongoing industry headwinds and deflation
Assurant (AIZ) Q4 Earnings Beat, Expenses Decrease
Assurant also witnessed a decline in its revenues, but reported lower losses and expenses.
Domino's (DPZ) Poised for Growth on Solid Comps Trend
Domino's digital ordering system, re-imaging and other sales initiatives should help sustain the excellent comps trend and drive growth.
ABM Industries (ABM) Beats Q1 Earnings on Holistic Growth
ABM reported solid first-quarter fiscal 2017 results with adjusted earnings beating the Zacks Consensus Estimate by $0.05.
Torchmark (TMK) Well Poised for Growth on Core Strength
The covering analyst believes Torchmark's niche market focus, steady capital deployment and strong operating fundamentals should drive long-term growth.
Sucampo's (SCMP) Sole Drug Amitiza Faces Generic Threats
According to the covering analyst, though Sucampo's sole drug Amitiza did well in the fourth quarter, it is facing generic threats.
Autodesk (ADSK) Q4 Loss Wider than Expected, Revenues Beat
The Zacks analyst believes Autodesk's transition to subscription based model and marketing initiatives will be a drag on the financials in the near term but should prove beneficial going ahead.
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Netflix, Inc. (NFLX): Free Stock Analysis Report
3M Company (MMM): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
Edison International (EIX): Free Stock Analysis Report
Domino's Pizza Inc (DPZ): Free Stock Analysis Report
Autodesk, Inc. (ADSK): Free Stock Analysis Report
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