NEW YORK (MarketWatch) ��Shares of Tesla Motors Inc. and Abercrombie & Fitch Co. dropped in premarket trade Wednesday following their quarterly results.
DeclinersShares of Abercrombie & Fitch Co. (ANF) �dropped nearly 7%. The teen retailer late Tuesday reported a 12% drop in third-quarter sales and 14% plunge in total same-store sales. Abercrombie revised its full-year guidance, now expecting per-share earnings of between $1.40 and $1.50.
Reuters Enlarge Image The Tesla Model S at the Frankfurt Motor ShowTesla Motors Inc. (TSLA) �shares slid 12%. The electric-car company late Tuesday forecast little change in fourth-quarter adjusted earnings compared to the third quarter, which weighed on shares. The company beat estimates as it narrowed its third-quarter loss to 32 cents a share from a loss of $1.05 a share a year earlier. Read a recap of the company�� third-quarter earnings call here.
Hot Clean Energy Stocks To Watch For 2015: Inchcape PLC (INCH)
Inchcape plc is a global premium automotive distributor and retailer. The Company provides a professional and financed route to market for automotive manufacturers across five continents. Inchcape acts as a vehicle and parts distributor in 22 of its 26 markets. In these markets, the Company has responsibility for managing the value chain on behalf of a focused portfolio of premium and luxury brand partners. The Company�� responsibilities as a distributor include specifying vehicles to meet local market requirements, organizing logistics from the factory gate through to the retail center, appointing and performance managing the retail network and acting as the national marketer of the brand. The Company derives over two third of its profit from Asia Pacific and emerging markets. Its markets include Hong Kong, Singapore, Russia, Chile, Ethiopia, Australia and the United Kingdom. Advisors' Opinion:- [By Inyoung Hwang]
Inchcape Plc (INCH) surged 9.9 percent to 645 pence, the highest level since June 2008. The largest publicly traded U.K. car retailer and wholesaler reported first-half adjusted pretax earnings increased 11 percent. The company also announced share buybacks of 100 million pounds in the next year.
Top Retail Companies To Invest In 2014: L-3 Communications Holdings Inc. (LLL)
L-3 Communications Holdings, Inc., through its subsidiary, L-3 Communications Corporation, provides command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; aircraft modernization and maintenance; and government services in the United States and internationally. Its C3ISR segment offers fleet management sustainment and support, such as procurement, systems integration, sensor development, modifications, and periodic depot maintenance for signals intelligence and communications intelligence systems; strategic and tactical signals intelligence systems; secure data links; secure terminal and communication network equipment and encryption management; and communication systems. The company?s Government Services segment provides communication software support, information technology services, and various engineering development services and integration support; engineering and information systems support services; teaching and training; h uman intelligence support services; command and control systems and software services; and technical and management services. Its Aircraft Modernization and Maintenance segment offers modernization and refurbishments, upgrades and sustainment, maintenance, and logistics support services, as well as turnkey aviation life cycle management services for military and various government and commercial customers. The company?s Electronic Systems segment provides components, products, subsystems, systems, and related services across various business areas, including power and control systems, electro-optic/infrared, microwave, simulation and training, precision engagement, warrior systems, security and detection, propulsion systems, avionics and displays, telemetry and advanced technology, undersea warfare, and marine services. L-3 Communications Holdings, Inc. was founded in 1997 and is based in New York, New York.
Advisors' Opinion:- [By Vinay Singh] company provides various security solutions in the United States and internationally.
It has $3.75 per share in cash and enough short-term receivables to take care of its entire long-term debt. Analysts expect $8.34 in EPS for the next fiscal year, and the current stock price is only 9 times that figure, compared to a peer average of 17 times, suggesting L-3 Communications is significantly undervalued.
Impressively, it has similar margins on both EBITDA and operating cash flow in the low double-digits, and its enterprise value implied by the current stock price is only 6.6 times trailing EBITDA. With a free cash flow margin of around 10%, the company should be able to further increase its cash reserve by $14.25 per share next year. **
Also, the company recently raised its quarterly dividend by 10% and authorized the repurchase of as much as $1.5 billion of its stock in a bid to boost shareholder returns. It's no wonder the share count has fallen from 122 million in fiscal 2008 to 94 million at the end of 2012, and considering the management's plans on buybacks, this trend should continue.
Long-term sales growth is where the estimates get tricky. The company faces revenue declines from the winding down of operations in Iraq and Afghanistan, and defense spending cuts due to the rising focus on deficit reduction.
Nevertheless, I expect a steady improvement in free cash flow generation. All told, I think L-3 Communications can grow its free cash flow at a 2-4% rate for the long-term. Discounting that back, it suggests a fair value of about $95.
Raytheon (RTN)
This company also provides various security solutions in the United States and internationally.
It has $12.39 per share in cash and a current ratio of 1.57; the company is liquid. Analysts expect $5.44 in EPS for the next fiscal year, and the current stock price is less than 10 times that figure, compared to a peer average of 17 times, suggesting Raytheon is s
- [By Jon C. Ogg]
L-3 Communications Holdings Inc. (NYSE: LLL) is down by about 1.6% at $90.80 in late afternoon trading on Tuesday. its 52-week range is $68.72 to $94.32 and the consensus price target is $94.64.
- [By Daniel Lauchheimer]
Currently, three main companies supply security equipment to the TSA - Safran (SAFRY.PK), Smiths (SMGKF.PK), and Level-3 Holdings (LLL). All three of these companies sell the whole range of their products to the TSA, with an ETD offering included. Recently, however, a new company, Implant Sciences Corporation (IMSC.PK) received approval from the TSA to begin selling their ETD equipment to airport security professionals. This approval has opened the door for IMSC to begin taking some market share away from the more established players in the US and beyond.
Top Retail Companies To Invest In 2014: CVS Corporation(CVS)
CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.
Advisors' Opinion:- [By Matt Brownell]
Alamy Following an onslaught of media coverage and social media mockery, CVS has agreed to stop giving comically long receipts to its ExtraCare Rewards members. In a Facebook post Friday night, CVS (CVS) chief marketing officer Rob Price acknowledged the complaints about its receipts -- which in some cases measure more than 3 feet long for a single item -- and said it would take steps to shorten them. "You asked for ALL the savings and LESS paper," he wrote. "So, we've found a way to reduce the size of the ExtraCare portion of your receipts by 25% while still providing you all the coupons and rewards." He went on to say that the shorter receipts will be rolling out in the next few weeks, and that the "Send to Card" program, which allows you to send select coupon offers directly to your ExtraCare card, will be expanded next year to include all coupons and offers. That means that ExtraCare members can get all the offers, but with a standard-sized receipt. We stumbled across the issue last week, when an AOL employee bought a single item at a local CVS and wound up with a 38-inch receipt. As we would discover, plenty of shoppers had begun grumbling on social media about similarly long receipts, with some musing about alternative uses for the paper. Other media outlets, including FastCompany and the Huffington Post, likewise picked up on the spreading meme. In its post Friday, CVS showed some sense of humor, acknowledging the "very creative uses" people had come up with for their receipts. It's worth noting that the receipts are still going to be pretty long. It's only a 25% reduction, and only in the coupon portion of the receipt; by our math, that's a reduction of between 6 and 10 inches, so you're still looking at receipts that are upwards of 2 feet in length. That's not quite long enough to wear as a beauty pageant sash, and will prompt a bit less mockery on Twitter, but it still seems like quite a waste of paper. So if that's a concern for you, by all mea
- [By Sean Williams]
But, this concern isn't just relegated to Walgreen. Rite-Aid (NYSE: RAD ) , for instance, only recently recorded an annual profit in fiscal 2013 -- its first such annual profit since 2006! Rite-Aid's problems flow from two fronts: weaker store traffic and extremely high debt levels, which weigh down its strategic options. Even the bigger CVS Caremark (NYSE: CVS ) is having its own set of problems. In the first-quarter it delivered a pharmacy same-store prescription increase of 2%, but saw pharmacy same-store sales dip by 1.4% because of more generic prescriptions being filled. This is a low-margin sector, so anything that can drag down margins can dramatically affect these stocks.
- [By Dan Caplinger]
Walgreen (NYSE: WAG ) will release its quarterly report on Friday, and investors have been pleased with the drugstore chain's success lately, bidding its shares to all-time record highs within the past month. Yet with Rite Aid (NYSE: RAD ) having risen from the ashes to become profitable and with CVS Caremark (NYSE: CVS ) still posing a big obstacle to Walgreen's dominance of the industry, the question investors are asking is whether Walgreen earnings can keep up the pace.
Top Retail Companies To Invest In 2014: World Fuel Services Corporation (INT)
World Fuel Services Corporation, a fuel logistics company, engages in marketing, selling, and distributing aviation, marine, and land fuel products and related services worldwide. The company operates in three segments: Aviation, Marine, and Land. The Aviation segment offers fuel and related services to commercial airlines, second and third-tier airlines, cargo carriers, regional and low cost carriers, airports, fixed based operators, corporate fleets, fractional operators, private aircraft, military fleets, and to the U.S. and foreign governments. Its aviation related services include fuel management, price risk management, arranging ground handling, and dispatch services; and arranging and providing international trip planning, including flight plans, weather reports, and overflight permits. The Marine segment offers fuel and related services to international container and tanker fleets, commercial cruise lines, yachts, and time-charter operators, as well as to the U.S. and foreign governments. Its marine fuel related services comprise management services for the procurement of fuel, cost control, quality control, and claims management. This segment also provides various services, which consist of fueling of vessels in port and sea, and transportation and delivery of fuel and fuel products. The Land segment offers fuel and related services to petroleum distributors operating in the land transportation market; retail petroleum operators; and industrial, commercial, and government customers, as well as engages in crude oil marketing activities. Its land related services include management services for the procurement of fuel and price risk management. In addition, the company offers transaction management services, which consists of card payment solutions and merchant processing services to customers in the aviation, marine, and land transportation industries. World Fuel Services Corporation was founded in 1984 and is headquartered in Miami, Florida.
Advisors' Opinion:- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fuel logistics company World Fuel Services (NYSE: INT ) has earned a coveted five-star ranking.
Top Retail Companies To Invest In 2014: Rite Aid Corp (RAD)
Rite Aid Corporation, incorporated in 1968, is a retail drugstore chain in the United States. As of March 3, 2012, the Company operated drugstores in 31 states across the country and in the District of Columbia. As of March 3, 2012, it operated 4,667 stores. In the Company�� stores, it sells prescription drugs and a range of other merchandise, which it calls front end products. During the fiscal year ended March 3, 2012 (fiscal 2012), prescription drug sales accounted for 68.1% of its total sales. The Company carries a range of front end products, which accounted for 31.9% of its total sales in fiscal 2012. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise and other everyday and convenience products, as well as photo processing. It offers a variety of products under its private brands, which contributed approximately 17% of its front end sales in the categories where private brand products were offered in fiscal 2012. As of March 3, 2012, the Company had opened over 2,100 GNC stores-within-Rite Aid-stores. During fiscal 2012, the Company sold two owned operating stores to independent third parties.
During fiscal 2012, its stores filled approximately 295 million prescriptions and served an average of 2.1 million customers per day. The overall average size of each store in its chain is approximately 12,600 square feet. As of March 3, 2012, 60% of its stores were freestanding; 51% of its stores included a drive-thru pharmacy; 24% included one-hour photo shops, and 46% included a GNC store-within-Rite Aid-store. The Company�� customers may also order prescription refills over the Internet through www.riteaid.com, or over the phone through its telephonic automated refill systems for pick up at a Rite Aid store. It has a strategic alliance with GNC, a retailer of vitamin and mineral supplements.
Advisors' Opinion:- [By Jon C. Ogg]
Rite Aid Corporation (NYSE: RAD) is a turnaround which keeps on turning. That is the theory from Goldman Sachs at least. The brokerage firm upgraded shares of the retail drug store to Buy from Neutral. Perhaps more important is that the price target was raised to $8 from $5 in the call.
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