Zacks Bull and Bear of the Day Highlights: CNH Global, Allegheny Technologies, Facebook, Google and LinkedIn
CHICAGO, May 2, 2013 /PRNewswire/ -- Zacks Equity Research highlights CNH Global (NYSE: CNH) as the Bull of the Day and Allegheny Technologies (NYSE: ATI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Facebook (Nasdaq: FB), Google+ (Nasdaq: GOOG) and LinkedIn (NYSE: LNKD).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
The megatrend of emerging markets driving increased food demand is nowhere more apparent than in the fortunes of farm machinery maker CNH Global (NYSE: CNH) who just reported blow-out first quarter results.
CNH is the number-one manufacturer of agricultural tractors and combines in the world, the third-largest maker of construction equipment, and has one of the industry's largest equipment finance operations.
The company's two brand families, Case Corporation and New Holland N.V., are sold through dealers and distributors on a worldwide basis and you may be surprised to learn that the company is 90% owned by Fiat Industrial of Italy. This will become important in moment.
On April 30, CNH reported Q1 EPS of $1.33 vs consensus expectations of $0.95. This upside surprise was due primarily to strong farm equipment sales in Latin America with industry growth in tractors of +24% and combines of +54%. Market share gains also helped the quarter.
Allegheny Technologies (NYSE: ATI) reported net income for the first quarter 2013 slumping 82% to $10.0 million, or $0.09 per share, on sales of $1.18 billion.
For this diversified maker of specialty metals products from stainless steel to titanium and superalloys, that was quite a drop compared with net income of $56.2 million, or $0.50 per share, on sales of $1.35 billion for Q1 last year.
But the Zacks Rank has been on top of this decline since the summer of 2011 when the stock was at $65. To be specific, ATI has spent most of its time as a Zacks #4 Rank (Sell) or #5 Rank (Strong Sell) in the past 22 months as it fell to back to 52-week lows this week near $26.
Allegheny is facing an overcapacity of competitive stainless steel, according to a Zacks Equity Research report dated April 25. A significant portion of the sales under the High Performance Metals segment is made to customers in the commercial aerospace industry, a historically cyclical industry.
Latest Posts on the Zacks Analyst Blog:
Facebook Beats Slightly on Meaningful Gains
It's now been 4 quarters of earnings report data for Facebook (Nasdaq: FB) since the company went public last May, and it's finally posted its first positive surprise. After the bell Wednesday the iconic social media firm announced it had earned 9 cents per share (accounting for stock-based compensation; the 'headline' number was 12 cents), a penny (12.5%) better than the expected $0.08. Facebook also brought in slightly higher revenues for its March quarter: $1.46 billion in sales versus the expected $1.447 billion in the Zacks Consensus Estimates.
Questions upon every analysts' lips had to do with Facebook increasing its business in the Mobility market, and the company delivered: 751 million users is up 54% year over year and higher than expected. Ad revenue from Mobility hit 30%, better than the 27% anticipated. Though the company generates less revenue per Mobile application, it's clearly the place to be right now for a plurality of tech firms. And Mobile claims more than 25% of Facebook's revenues currently.
Considering Facebook's less-than-glamorous beginning as a publicly traded entity nearly a year ago, Mark Zuckerberg's company has made slow but steady progress getting back toward the company's IPO listing price of $36 per share. Facebook is currently close to knocking on the door of $30 -- well, $28 -- in a down-market during regular trading hours today. Prior to the bell, FB had fallen 1.27%, only to gain a bit in the after-market before slipping a couple cents as of now.
Analysts had been modestly upbeat with earnings expectations, with one upward revision in the past 30 days and one the last 60. This was enough to get Facebook recommended as a Zacks Rank #2 before today's announcement. The Zacks Consensus EPS for the quarter remained .08 almost completely throughout throughout the quarter.
Headwinds for the company -- naturally, that is -- are European growth (or lack thereof) and a Chinese economy that continues pulling back. Facebook also now faces more competition with the build-out of Google+ (Nasdaq: GOOG) and LinkedIn (NYSE: LNKD), which are both focused on taking share from Facebook.
Certainly the Facebook story has been a phenomenal one so far -- heck, they even had an Oscar-winning movie about it -- but the chapters are beginning to read like any other book these days. If the company can continue gaining in Mobile usage and successfully fends off its competition, perhaps Aaron Sorkin may write a sequel one day, after all.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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