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Zacks Analyst Blog Highlights: Home Depot, Ford, TRW Automotive, Revlon and Estee Lauder – Press Releases

Zacks Market Commentaries (November 18th, 2009) Writes:

For Immediate Release

Chicago, IL – November 18, 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: Home Depot (HD), Ford (F), TRW Automotive (TRW), Revlon (REV) and Estee Lauder (EL).

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 Tuesday’s Analyst Blog:

Home Depot Sales Dip

Home Depot (HD), the largest home improvement retailer in the world, reported net income of $689 million or 41 cents per share in the third quarter of fiscal 2009, compared to net income of $756 million or 45 cents per share in the year-earlier quarter.

...

Industrial Production Rebound Stalls – Analyst Blog

Dirk Van Dijk (November 17th, 2009) Writes:
In October, overall Industrial Production rose by 0.1%, far below the 0.6% increase registered in September and the 1.3 increase registered in August. It was also well below the 0.4% consensus expectations. To my mind, this is one of the most important economic reports, and one that does not get anywhere near the attention it deserves in the press. The September numbers were revised down from 0.7% growth, while the August numbers were revised up from 1.2%, so call it a wash on the revisions -- although they do make the slowdown more dramatic. Of far more concern than just the raw slowdown in the numbers was the source of the meager increase. Industrial production has three major categories: manufacturing, mining and utilities. Of these, manufacturing is by far the most important. Mining is a relatively small sector in the U.S., and while utility output is important, ...

Zacks Analyst Blog Highlights: TRW Automotive, Dish Network Corp., TiVo Inc., DirecTV and AT&T – Press Releases

Zacks Market Commentaries (November 11th, 2009) Writes:

For Immediate Release

Chicago, IL – November 11, 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: TRW Automotive (TRW), Dish Network Corp. (DISH), TiVo Inc. (TIVO), DirecTV (DTV) and AT&T (T).

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 Tuesday’s Analyst Blog:

TRW Posts Robust Profit

TRW Automotive (TRW) has revealed a staggering rise in profits to $76 million or 68 cents per share in the third quarter ended Oct. 2, 2009, from a net loss of $22 million or 22 cents per share in the prior-year quarter.

The profit

...

TRW Posts Robust Profit – Analyst Blog

Zacks Market Commentaries (November 10th, 2009) Writes:
TRW Automotive (TRW) has revealed a staggering rise in profits to $76 million or 68 cents per share in the third quarter ended Oct. 2, 2009, from a net loss of $22 million or 22 cents per share in the prior-year quarter. The profit was also significantly higher than the Zacks Consensus Estimate of 14 cents per share. The Michigan-based manufacturer of advanced technology products and services for the automotive markets commended its restructuring and cost containment actions for its impressive rise in profit. Operating income for the quarter went up to $165 million from $44 million in the prior-year period. Apart from restructuring and cost containment actions, this was driven by lower raw material prices and favorable non-recurring supplier and customer settlements. During the quarter, TRW continued to reduce its salaried workforce by an additional 200 employees, which brings the total salaried reductions ...

Zacks Bull and Bear of the Day Highlights: Cytori Therapeutics, Red Robin Gourmet Burgers Inc., Ford, Eaton and TRW Automotive – Press Releases

Zacks Market Commentaries (October 19th, 2009) Writes:

For Immediate Release

Chicago, IL – October 19, 2009 – Zacks Equity Research highlights Cytori Therapeutics (CYTX) as the Bull of the Day and Red Robin Gourmet Burgers Inc. (RRGB) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford (F), Eaton (ETN) and TRW Automotive (TRW).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

We continue to be very positive on Cytori Therapeutics (CYTX) and believe the company's Celution System, a better mousetrap for quickly and efficiently harvesting adult stem cells, will see sales ramp significantly over the next few years.

Sales of the system have been tracking with our expectations. Ultimately, the clinical data will determine the pace at which the ramp continues. So far, the clinical data has been exciting,

...

Capacity Utilization Improves – Analyst Blog

Dirk Van Dijk (October 16th, 2009) Writes:
In September, total Industrial Production rose by 0.7% from August -- its third straight monthly increase after a string where it was down 17 of 18 months. Total Capacity Utilization also climbed to 70.5%, up from an upwardly revised 69.9% (originally 69.6%) in August. While both are still at extremely low levels, the three straight months of improvement is a VERY good sign. Turning first the the Industrial Production numbers, the increase in total production was 0.7%, which is a distinct slowdown from the 1.2% gain in August, and from the 0.9% gain in July. However, the August number was revised up sharply from 0.8% growth originally reported (July was revised down from up 1.0%). Thus the gain was coming against a higher base than was thought, and things were better in August than we thought. Still, from a longer term perspective it is not all that good -- year-over-year total Industrial Production is down ...

How’s “Cash for Castles” Doing? – Analyst Blog

Dirk Van Dijk (September 22nd, 2009) Writes:
The $8,000 tax credit for first-time home buyers is going to expire on November 30th. People have to close by that date, which means they really have to agree to buy within the next few weeks. The housing market has begun to rebound a bit, and the tax credit has been part of it. So should Congress extend, or even -- as some are advocating -- expand the program? My answer would be no, certainly no to expansion. Conceptually, the tax credit is similar in many ways to the "Cash for Clunkers" program, but it is much more expensive, and far less targeted. "Cash for Castles" applies to any house, either new or used, while "Cash for Clunkers" only applied to new cars. Increasing sales of used houses only indirectly stimulates the economy. The same is true for used car sales. With sales of used homes, very few jobs ...

I Was Wrong About GM Bankruptcy – Analyst Blog

Dirk Van Dijk (July 6th, 2009) Writes:
It now appears that General Motors (GMGMQ) will shortly leave Chapter 11. Like the Chrysler bankruptcy, I was wrong to think that it would be an extremely long and drawn-out affair. While having two of the big three go into bankruptcy was bad news for the economy, their short stay in bankruptcy means that the damage is going to be much less than I feared.That said, the previous shareholders have been wiped out, and many of the creditors -- including some pretty senior ones -- got not just a haircut but a shaved head.The government (61% U.S. and 11.7% Canada) and the UAW (17.5% in the Health Care Trust) will control the new GM. I hope that the government does not plan on being the controlling shareholder forever, but on the other hand I don't want to see it totally lose the ...

Zacks Industry Outlook Highlights: General Motors, AutoZone and TRW Automotive. – Press Releases

Zacks Market Commentaries (June 8th, 2009) Writes:
For Immediate Release

Chicago, IL - June 8, 2009 - Zacks.com releases the latest Industry Outlook. Today's interview is with senior analyst Paul Raman, who talks about the Automotive Industry, including General Motors (GMGMQ), AutoZone (AZO) and TRW Automotive (TRW).

A synopsis of today's Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

Earnings are below expectations and have been for some time. Demand for autos is down (35)% due to a weak economy and weakening real estate market. Demand is also hurt by weakening employment. The recent credit crunch is crippling to auto sales, and this has a trickle-down effect throughout the industry.

Furthermore, there is a slowdown of SUV sales, which are 55% of sales (cars are 45%). Imports have also been more competitive, as they tend to have better gas mileage. Costs

...

Automotive Industry – Industry Outlook

Zacks Market Commentaries (June 8th, 2009) Writes:
Overview - Upgraded from Negative to Neutral

OPPORTUNITIES

The industry is very concentrated, with the top 8 global auto companies having more than 90% of global revenues and the top 50 global auto parts companies having 80% of global revenues (the top 4 US tire producers have 75% of the US market).

There is a focus on automation and simplifying product lines to lower costs and benefit from economies of scale. The average car now needs only 15-25 man-hours per vehicle and this drops 2% annually. Hybrid/alternative cars represent a source of growth in the future. Market share gains by hybrids/alternatives will be slow, and they are now only 4% of cars on the road. GM and Chrysler both have filed for bankruptcy, and will emerge more competitive in the long run.

WEAKNESSES

Earnings are below expectations and have been for some time. Demand for autos is down (35)% due to a weak ...

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