Monday, July 25, 2016
Today's must-read reports are for Intel (NASDAQ:INTC) (INTC), Biogen (NASDAQ:BIIB) (BIIB) and AT&T (NYSE:T) (T).
Intel shares have moved to Zacks Rank # 2 (Buy) following the company's Q2 results where it's June-quarter numbers weren't that impressive, but the outlook for the curent and following quarters was favorable. The positive momentum in the stock and EPS estimates reflects this positive guidance. In the updated research report issued today, our analyst discusses the positive outlook for Intel's data center business. Intel’s leading position in PCs, strength in servers, growing position in software and IoT segments and headway in process technology are all positive indicators of its future growth. (You can read the full research report on INTC here.)
Biogen’s Q2 results were impressive with earnings beating estimates by a huge margin & the company raising its outlook. The analyst likes Biogen’s strong position in the multiple sclerosis market where it has a wide range of products. Cost cutting efforts and MS franchise sales should help Biogen achieve its guidance. In addition to consolidating its position in this market, Biogen is also working on diversifying its pipeline. (You can read the full research report on BIIB here.)
AT&T's June quarter results didn't impress, but the company remains on track for achieving $1.5 billion in synergies from the DIRECTV purchase this year and $2.5 billion in 2017. These synergies, coupled with effective cost controls and steady business are driving AT&T's attractive free cash flow outlook, which is on track to total $16 billion this year. The analyst likes the combination of U-verse, DIRECTV’s satellite TV and GigaPower Internet service which can now provide traditional cable TV as well as mobile video streaming services. (You can read the full research report on T here.)
Other noteworthy reports we are featuring today include Stryker (SYK), Roche (RHHBY) and Rogers Communications (RCI).
- Stryker’s (SYK) Q2 Earnings Beat
- Roche (RHHBY) Misses Sales Estimates
- Pulte (PHM) Upgraded to Zacks Rank # 2 (Buy)
- Rogers Comm (RCI) Down to Zacks Rank # 5 (Strong Sell)
The 15 research reports featured in today's Research Daily are a small part of the roughly 100 reports issued by our analyst team today. You can find all of today's stock research reports here.
Sheraz Mian
Director of Research
Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He also provides weekly commentary to Zacks Premium subscribers and manages the Zacks Focus List and Top 10 portfolios. If you want an email notification each time Sheraz publishes a new article, please click here.
Today's Must Read
Featured Reports
Stryker (SYK) Beats Q2 Earnings & Sales, Q3 Outlook Soft
According to the covering analyst, Stryker's innovative product pipeline is a key catalyst in the near term. The acquisitions of Sage Products and Physio Control have significant growth potential.
Roche (RHHBY) Misses Sales Estimates, Maintains View
Roche missed sales estimates in the second quarter. However, the Zacks analyst is impressed by its efforts to grow its portfolio beyond oncology into new avenues such as multiple sclerosis and asthma.
Sonoco (SON) Tops Q2 Earnings on Lower Costs, Weak 3Q Ahead
Even though better-than-expected Q2 earnings have set the pace for Sonoco, the Zacks analyst believes a stronger dollar and a slowdown in manufacturing in the U.S. shall remain headwinds in the next.
Maxim's (MXIM) Q4 Earnings Beat, Revenues Miss Marginally
Despite mixed Q2 results, the Zacks analyst thinks prospects are bright for the company's cloud and cable businesses.
Citizens Financial (CFG) Earnings Up, Crafts New Initiatives
The Zacks analyst remains optimistic about Citizens Financial's growth prospects given its new and ongoing strategic initiatives. While Q2 earnings improved, legal woes and margin pressure persist.
Comerica (NYSE:CMA) Depicts Revenue Growth with Capital Strength
The covering analyst believes 'Growth in Efficiency and Revenue Initiative' will support Comerica's top line amid global concerns. Moreover, stress test clearance depicts a strong capital position.
New Upgrades
Intuitive Surgical (NASDAQ:ISRG) Up on da Vinci Momentum
The Zacks analyst believes growing adoption of the da Vinci system among physicians for general surgery and thoracic procedures is a key growth catalyst.
Pulte (PHM) Beats Q2 Earnings, Outlines New Value-Creation Strategy
The covering analyst believes that higher home sales, improved SG&A leverage and a lower share count drove earnings.
Cost Cuts Help Encana (ECA) Post Surprise Q2 Profit
Steps undertaken by ECA to divest high-cost low-profit gas assets will help its transition to a more diversified oil and gas firm, according to the Zacks analyst.
New Downgrades
Boston Beer (SAM) Cuts View, Q2 Earnings & Sales Fall Y/Y
The covering analyst thinks Boston Beer remains troubled as it slashed its 2016 outlook after posting soft second-quarter 2016 results. While earnings beat estimates, results declined year over year.
Loss of Video Subscribers a Worry for Rogers Communications (RCI)
The Zacks analyst believes that persistent loss of video subscribers to online video streaming services is a major headwind for Rogers Communications going forward.
Slow Emerging Markets Could Hurt Mohawk's (MHK) Sales
Mohawk's sales may be hurt by a slowdown in the emerging markets. Despite some improvement, unfavorable currency remains an overhang and may hurt profitability.
AT&T INC (T): Free Stock Analysis Report
STRYKER CORP (SYK): Free Stock Analysis Report
ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report
ROGERS COMM CLB (RCI): Free Stock Analysis Report
PULTE GROUP ONC (PHM): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
BIOGEN INC (BIIB): Free Stock Analysis Report
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