Friday, August 26, 2016
Today's must-read reports are for Barclays (LON:BARC) (BCS), Medtronic (NYSE:MDT) (MDT) and Procter & Gamble (PG).
Shares of Barclays have not been having a good time of late. Barclays’ second-quarter 2016 net income declined owing to lower trading and investment banking income, a rise in credit impairment charges as well as sale of several non-core operations. The company’s profitability is being affected by muted revenue growth and a stringent regulatory landscape.
But the analyst likes the company’s sustained progress in streamlining operations and lowering expenses, which will lead to enhanced profitability over time. (You can read the full research report on Barclays here.)
Medtronic’s shares have gained more than 11% year-to-date. Medtronic’s fiscal first-quarter earnings per share edged past estimates while revenues came in fairly close to expectations. The analyst likes Medtronic’s mega $1.1 billion acquisition of Heartware International, which is expected to significantly boost its Cardiac Rhythm & Heart Failure business.
Meanwhile, post the Covidien acquisition, the consolidated company has successfully demonstrated strong segmental performances reflecting successful integration and achievement of synergy targets. (You can read the full research report on Medtronic here.)
Procter & Gamble’s shares have increased more than 10% year-to-date. P&G beat expectations for both earnings and sales in the fourth quarter of fiscal 2016. However, operating profits were weak in the quarter due to higher marketing investments. P&G has been struggling to improve sales. But the analyst likes P&G’s productivity improvements and aggressive cost-saving efforts, which have consistently improved margins (You can read the full research report on Procter & Gamble here.)
Other noteworthy reports we are featuring today include Berkshire Hathaway (NYSE:BRKa) (BRK.B), Dollar Tree (NASDAQ:DLTR) (DLTR) and AT&T (NYSE:T) (T).
Today's Long-Term Buys & Sells
Today you can gain access to the best long-term trades unearthed by Zacks Research. These moves have double and triple-digit profit potential and are rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>
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
Liberty Interactive (NASDAQ:QVCA) Aiming for Formula One Stake
The Zacks analyst believes that Liberty Interactive can benefit significantly from a minority stake in Formula One management Group
HCP Inc's (NYSE:HCP) Q2 FFO Beats, Life Science Occupancy Peaks
In Q2, HCP recorded FFO beat and an all-time high occupancy in life science and medical office portfolio. According to the Zacks analyst, the beat was driven by robust growth in revenues.
Dollar Tree (DLTR) Posts Poor Q2: Earnings & Sales Miss
The covering analyst thinks Dollar Tree looks troubled as both top and bottom lines lagged estimates. However, its solid comps performance and raised earnings view provide reason for optimism.
Chipotle (CMG) Q2 Earnings, Sales Hit by Food-Safety Issues
The Zacks analyst thinks lower revenues led to the earnings miss. Despite its food-safety initiatives, Chipotle reels under negative publicity from the E. coli and norovirus outbreak.
Strategic Alliance, Competitive Pricing Plan Boost AT&T (T)
The covering analyst believes A&T's recent collaboration with Intel Corp (NASDAQ:INTC). and its competitive data plans hold a key driver for growth.
Tesla (NASDAQ:TSLA) Clears Antitrust Hurdle for SolarCity Purchase
The Zacks analyst thinks the deal will provide integration benefits, although SolarCity's high debt and cash outflows are concerns.
Tiffany (TIF) Q2 Earnings Beat, Sales Miss; Outlook Intact
After commencing fiscal 2016 on a soft note, Tiffany posted an earnings beat in the second quarter, in spite of a waning top line. However, it kept its fiscal 2016 view intact.
New Upgrades
PVH Corp. (NYSE:PVH) Tops Q2 Earnings & Ups View
The covering analyst thinks PVH Corp. is on a winning streak as Q2 fiscal 2016 earnings surpassed estimates for the ninth time in a row. Its raised earnings view for fiscal 2016 is another positive.
Illumina (NASDAQ:ILMN) Tops Q2 Earnings, Chinese Business Strong
Illumina posted impressive Q2 results which squarely beat the Zacks Consensus Estimate. The Zacks analyst thinks business growth in China primarily drove expansion in the Asia-pacific region.
Guess' (GES) Beats Earnings in Q2; Raises FY Guidance
Guess' Q2 earnings beat the Zacks Estimate by 16.7% and compared favorably with management's projected range. Guess' raised the lower end of fiscal 2017 earnings guidance expecting higher comps in 2H.
New Downgrades
Berkshire Hathaway (BRK.B) Suffers Due to Cat Loss, Expenses
The Zack analyst believes Berkshire Hathaway's exposure to catastrophe losses and high expenses in the rail road operations may weigh on its profitability.
Sempra Energy's (NYSE:SRE) Earnings Dampened by REX Stake Sale
Sempra Energy's Q2 earnings plunged 23.3% year over year due to lower earnings at most of its segments. The covering analyst thinks the sale of Sempra's REX stake weighed on its quarterly results.
Competition Weighs on Cognizant (CTSH) Amid Macroeconomic Woes
The Zacks analyst believes that Cognizant's business is being affected because of the weakness in financial and healthcare sectors especially as the competition from peers is mounting.
AT&T INC (T): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report
DOLLAR TREE INC (DLTR): Free Stock Analysis Report
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
BARCLAY PLC-ADR (BCS): Free Stock Analysis Report
Original post
Zacks Investment Research