Zacks Analyst Blog Highlights: TransDigm Group, Inc., Banco Bradesco S.A., XenoPort, American Tower Corp. and Myriad Genetics Inc. – Press Releases
Source: http://www.zacks.com/stock/news/19926/Zacks+Analyst+Blog+Highlights%3A+TransDigm+Group%2C+Inc.%2C+Banco+Bradesco+S.A.%2C+XenoPort%2C+American+Tower+Corp.+and+Myriad+Genetics+Inc.++-+Press+ReleasesPosted on Thursday, May 7th, 2009 | In Market Commentary, Stocks to Watch
For Immediate Release
Chicago, IL – May 7, 2009 – 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 include: TransDigm Group, Inc. (TDG), Banco Bradesco S.A. (BBD), XenoPort (XNPT), American Tower Corp. (AMT) and Myriad Genetics, Inc. (MYGN).
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Here are highlights from Wednesday’s Analyst Blog:
TransDigm’s Impressive Quarter
TransDigm Group, Inc.’s (TDG) Q2-09 Net Sales rose by 10.1% to $193.0 million (we had been looking for $191 million); however, the organic change in Net Sales was a negative 1.5%, as the increase was caused by the inclusion of three recent acquisitions.
Drilling down into the data, TDG’s Gross Profit rose by 15.9% to $108.8 million and the Gross Margin expanded from 53.6% to 56.4%. S,G&A as a percent of Sales was relatively stable at 10.6% versus 10.5%. The Amortization of Intangibles climbed by 30.3% to $3.6 million (those acquisitions). Operating Income climbed by 16.5% to $84.8 million and the Operating Margin went from 41.5% to 43.9%. The Tax Rate nudged up from 34.0% to 36.2%. The bottom line of all this is that Fully-Diluted EPS rose by 25.0% to 80¢ (our estimate was 76¢). It was an impressive quarter!
Banco Bradesco Misses Ests
In its first quarter report, Banco Bradesco S.A. (BBD, or Bradesco) posted net earnings of R$1,723 million before nonrecurring items — down 10% year over year, and below our estimate due to a higher-than-expected loan loss provision on deteriorating asset quality.
Net interest income advanced 27% year over year to R$7.7 billion, as solid growth in average loans outstanding (up 29% year over year) was partially offset by a lower adjusted net interest margin that fell an estimated 80 basis points to 8.4% from 9.20%. Fees and commissions increased 1% year over year from last year’s first quarter, as higher volumes was partly offset by a decline in fees from loan operations.
XenoPort: Long-Term Upside
We consider XP-13512, to be called Solzira in the U.S., to be a potential blockbuster opportunity with a full label — including restless leg syndrome (RLS), neuropathic pain (PHN / PDN) and migraine prophylaxis. As for now, we are holding off on modeling sales in neuropathic pain and migraine until we see more (or perhaps any positive) data.
However, what we have seen so far in RLS looks highly encouraging, and we are pleased to see the NDA back under review. We believe that if XenoPort (XNPT) can see Solzira to commercialization, it will improve the future partnering plans for other compounds such as XP-19986, and allow management to move forward with other candidates such as XP-21279.
American Tower Stands Tall
Expansion initiatives and associated business prospects at American Tower Corp. (AMT), a leading operator of wireless communications towers in the US and emerging markets, have led management to maintain growth projections for 2009.
Overall performance has been driven by substantial demand for tower space to facilitate high-speed wireless data services and mobile video, along with emerging 3G technologies. Rental & management revenue, adjusted EBITDA, and free cash flow financial metrics remain favorable. The company’s new venture in the India is considered a significant catalyst moving forward.
Buy Myriad Genetics, Post-Results
Myriad Genetics, Inc. (MYGN) relies on its molecular diagnostic products for its revenue generation and is currently seeing solid growth in this business. On May 4, 2009, the company reported fiscal 3Q09 financial results ended March 31, 2009.
Total revenue for the 2009 fiscal third quarter increased to a record $87.5 million, compared with $61.8 million in the prior-year period. Molecular diagnostic revenues rose 47% to $86.5 million from $59.0 million last year. The improvement resulted primarily from an increase in the Company’s sales and marketing efforts, including expansion of its women’s health sales force. It was also due to the continuation of its direct-to-consumer marketing campaign, which the company believes has resulted in improved physician acceptance and adoption of its molecular diagnostic products. Molecular diagnostic revenue of $86.5 million in 3Q09 was slightly lower than our estimate of $90 million.
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