Affymetrix, General Cable, Citigroup, JPMorgan Chase and Bank of America highlighted as Zacks Bull and Bear of the Day
CHICAGO, Nov. 5, 2014 /PRNewswire/ -- Zacks Equity Research highlights Affymetrix (Nasdaq:AFFX-Free Report) as the Bull of the Day and General Cable (NYSE:BGC-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onCitigroup Inc. (NYSE:C-Free Report), JPMorgan Chase & Co. (NYSE:JPM-Free Report) and Bank of America Corp. (NYSE:BAC-Free Report).
Here is a synopsis of all five stocks:
Headquartered in Santa Clara, California, Affymetrix (Nasdaq:AFFX-Free Report) is a leading provider of microarray-based products and services to the global research community. The company utilizes its DNA chip technology in areas of gene expression, analysis, and clinical application to help treat infectious diseases, cancer, and other ailments.
Affymetrix has 1,100 employees globally, manufacturing facilities in Ohio, California, Singapore and Austria, and a sales and distribution network across U.S., Latin America, Europe and Asia.
The company has two reportable operating segments: Affymetrix Core (72.2% of revenues in H1 2014) and eBioscience (27.4%).
AFFX reported its Q3 results on October 30. Total revenues increased by 8.4% to $87.1 million ahead of the Zacks Consensus Estimate of $84 million. The positive surprise was driven mainly by strength in the company's product portfolio and increased focus on high-growth markets.
Adjusted earnings for the quarter were $0.08 per share, compared to $0.05 per share in the previous year quarter and substantially ahead of the Zacks Consensus Estimate of $0.04 per share.
The company also upgraded its previously announced revenue and EBITDA guidance for FY 2014.They now expect to generate annual revenues of $345 million and adjusted EBITDA of approximately 17% of revenue.
After better than expected results and upgraded guidance, analysts have started to revise their earnings estimates for the company.
Headquartered in Highland Heights, Kentucky, General Cable (NYSE:BGC-Free Report) develops, designs, manufactures, markets and distributes copper, aluminum and fiber optic wire and cable products for energy, industrial, specialty and communications markets around the world.
During 2013, 43% of sales were in North America, 22% in Europe, 19% in Latin America, 10% in Asia and the remaining 6% in Africa.
On October 29, the company reported its third quarter results. Adjusted operating income for the quarter was $55 million or $0.30 per share, short of the Zacks Consensus Estimate of $0.39 per share. While the company's businesses in North America improved slightly, many other end markets remained under pressure.
For FY 2014, they now expect adjusted operating income to be in the range of $175 million to $190 million. The decrease from the earlier guidance reflected "the impact of an increasingly uncertain macro environment, uneven electrical infrastructure and construction investment throughout Latin America and ongoing challenges in Spain and Thailand."
Due to disappointing results and downgraded guidance, quarterly and annual estimates have been revised sharply downwards in the past few days by analysts.
Additional content:
Citigroup to Revamp Branches with Improvised Tech
In keeping with its restructuring moves, Citigroup Inc. (NYSE:C-Free Report) is set to remodel its U.S. branches with greater focus on technology while simultaneously reducing the size of the branch locations.
Per a Wall Street Journal release, Citigroup will set up "compact" branches, measuring between 600 to 1,200 square feet. Such branches will have three to four full-time employees. Notably, existing branches are more than twofold in size, measuring around 2,500 square feet with nine employees.
Focusing on technology, customers can enjoy better banking experience at these revamped bank branches. Touchscreen walls and online terminals would enable customers to scan through products. The better equipped technologies will also assist customers in smoothly availing banking services.
Jane Fraser, CEO of Citigroup's US Consumer & Commercial Banking has probably presented the upcoming course of actions in the related matter on Monday evening at Money20/20, a conference on digitization of payments.
Citigroup has shed a number of its U.S. locations to cover seven major cities including Boston, Chicago, Los Angeles and Miami. The release included some of Fraser's prepared remarks. Per a remark, "The last few years we have spent systematically shrinking our bricks and mortar presence to the right locations in the markets we want to win in, and, unlike our competitors, we are largely now done."
Notably, Citigroup intends to expand branch locations while maintaining a smaller size. In 2015, the company will increase branches to 59 from the current 54 locations in Miami. Also, the company will consider "mini" branches covering 500 square feet with one employee. Following its expansion in Miami, the bank will test its new branch model in New York and Los Angeles over the upcoming five years.
Branches are trending to be less important for banks as customers prefer to connect with banks though the Internet and mobile phones. Such modes of communication not only save time for a customer, avoiding physical visit to a branch, but also saves costs for a bank.
Processing a daily transaction becomes less expensive for banks compared with processing in a big set up with more staff. However, while ATMs and internet facilitates normal transactions including cash withdrawal and check depositing, banks prefer customers to visit branches for important transactions like availing loans.
Citigroup is not the only bank to emphasize on the importance of small banks equipped with upgraded technology. Other banking giants including JPMorgan Chase & Co. (NYSE:JPM-Free Report) and Bank of America Corp. (NYSE:BAC-Free Report) have tested similar moves.
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