The Zacks Analyst Blog Highlights:Kohl's, Actavis, Amgen, Mylan and Pernix Therapeutic Holdings
by PR Newswire
CHICAGO, Feb. 1, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog includeKohl's Corporation (NYSE:KSS), Actavis, Inc. (NYSE:ACT), Amgen (Nasdaq:AMGN), Mylan (Nasdaq:MYL) and Pernix Therapeutic Holdings, Inc. (Nasdaq:PTX).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday's Analyst Blog:
Kohl's Downgraded to Underperform
On Jan 28, we downgraded specialty departmental store Kohl's Corporation (NYSE:KSS) to Underperform due to weaker-than-expected holiday season sales, which also forced the company to reduce its earnings expectation for the fourth quarter and fiscal year 2012.
Why the Downgrade?
Kohl's performance during the holiday season was impacted by unfavorable weather conditions and lower consumer confidence, which forced Kohl's to give more than expected discounts to its customers. This was reflected in Dec comparable store sales, which were lower than the company's expectations. Notably, the company's Nov sales were also below expectations.
The sluggish sales also prompted the company to slash its expectations for the fourth quarter and fiscal year 2012. The company has reduced its earnings expectation to a range of $1.60 to $1.62 for the fourth quarter and $4.11 to $4.13 for fiscal 2012 versus its previous guidance of $2.00 to $2.08 for the fourth quarter and $4.52 to $4.60 for fiscal 2012.
Estimates for Kohl's have been declining ever since it reported its Dec comparable sales. The Zacks Consensus Estimate for fiscal 2012 has gone down 7.0% to $4.13 per share over the last 30 days, while the Zacks Consensus Estimate for fiscal 2013 declined 6.1% to $4.58 per share over the same timeframe. With the Zacks Consensus Estimates for both fiscal 2012 and 2013 going down, the company now has a Zacks Rank #5 (Strong Sell).
Actavis Provides 2013 Guidance
Actavis, Inc. (NYSE:ACT), formerly known as Watson Pharmaceuticals, Inc., recently provided an update on its 2012 performance, 2013 outlook and prospects.
The company said that it expects 2012 earnings on the higher end of its previously issued guidance range of $5.85 to $5.95, up 25% from 2011. 2012 revenues are expected to increase 29% to about $5.9 billion. We note that the Zacks Consensus Estimate of $5.94 per share is already on the higher end of the guidance range.
Actavis expects to earn $7.70 - $8.10 per share on total revenues of about $8.1 billion in 2013. During 2013, the company expects low single-digit pricing erosion in the US and mid single-digit percentage price erosion in ex-US markets. Actavis said that it still expects cost synergy savings of $100 million in 2013 mainly from SG&A, R&D and raw material costs.
Actavis Pharma, the company's global generics business, is expected to post revenues of $6.3 billion - $6.5 billion in 2013. Actavis is the third largest player in the global generics market and has a presence across 62 countries. The company intends to launch its generic version of Pulmicort Respules in the second quarter of 2013. While the company expects an additional competitor for generic Concerta to enter the market in 2013, it does not except any competition for its generic versions of Lidoderm and Adderall XR until 2014.
Actavis' global brands business, Actavis Specialty Brands, is slated to post revenues of $550 million - $600 million in 2013. Products like Rapaflo, Generess FE, the Crinone franchise and the recently completed Uteron acquisition should help drive revenues. The company is also working on the development of biosimilars in collaboration with Amgen (Nasdaq:AMGN).
The Anda Distribution segment is expected to post revenues of $1.0 billion - $1.2 billion.
While revenue guidance was in line with expectations, earnings guidance was below expectations with the Zacks Consensus Estimate standing at $8.20 per share. One of the factors behind this is the entry of an additional competitor for generic Concerta. We believe the company should be able to achieve its guidance easily. With fewer major patent expiries slated to occur in the next few years, we are encouraged by Actavis' focus on building its branded and biosimilars pipeline.
Actavis currently carries a Zacks Rank #3 (Hold). Other generic players like Mylan (Nasdaq:MYL) and Pernix Therapeutic Holdings, Inc. (Nasdaq:PTX) currently look better positioned. These companies carry a Zacks Rank #2 (Buy).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.