Dixie Group, Syneron Medical, PVR Partners, Hess and Oiltanking Partners highlighted as Zacks Bull and Bear of the Day
CHICAGO, Sept. 5, 2013 /PRNewswire/ -- Zacks Equity Research highlights The Dixie Group (Nasdaq:DXYN-Free Report) as the Bull of the Day and Syneron Medical Ltd (Nasdaq:ELOS-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onthePVR Partners L.P. (NYSE:PVR-Free Report), Hess Corporation (NYSE:HES-Free Report) and Oiltanking Partners L.P. (NYSE:OILT-Free Report).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Here is a synopsis of all five stocks:
After excellent second quarter results, earnings estimates have been rising for The Dixie Group (Nasdaq:DXYN-Free Report) sending the stock to Zacks Rank #1 (Strong Buy) with an 'Outperform' recommendation.
The Dixie Group is a manufacturer and marketer of carpet and rugs to high-end residential customers through the Fabrica International, Masland Residential and Dixie Home brands. The company began its operations in 1920 and transitioned from textiles to floorcovering in the 1990s.
In 2004, it refined its focus on upper-end markets—both commercial and residential. The company is known for its innovative styling, design and colors.
On July 31, 2013, DXYN reported its second quarter operating results. The quarter resulted in earnings of $0.13 per share, compared with a loss of $0.03 per share for the same quarter of 2012. The results were substantially ahead of the Zacks Conesus Estimate of $0.04 per share.
Dixie had a year-over-year sales improvement of 26% with sales growth in all areas of the business. The management believes that despite potential macro-economic issues, conditions in the upper-end residential portion of the industry will continue to improve during 2013.
Estimates have moved into the negative territory after ugly second quarter results, sending Syneron to a Zacks Rank # 5 (Strong Sell) last month.
Syneron Medical Ltd (Nasdaq:ELOS-Free Report) is a leading global aesthetic device company with a 29% worldwide market share. It focuses on non-invasive aesthetic procedures and operates under two segments: Professional Aesthetic Devices and Emerging Business Units.
The Company provides advanced solutions for a broad range of medical-aesthetic applications including body contouring, hair removal, wrinkle reduction, improving the skin's appearance, and the treatment of acne, leg veins and cellulite. The Company sells its products under two distinct brands, Syneron and Candela.
ELOS reported its second quarter FY 2013 results on August 14, 2013. Revenues in Q2 2013 were $68.8 million, up 1% from $68.1 million in the second quarter of 2012. Net operating loss for quarter was $0.01 per share, substantially worse than the Zacks Consensus Estimate of earnings of $0.03 per share.
Gross Margin for the quarter was 48.3%, down from 53.2% in second quarter of 2012. Revenue mix, increased production costs and volume discounts affected the gross margin.
Due to disappointing results and uninspiring guidance, quarterly and annual estimates have been revised sharply downwards in the past few weeks. Zacks consensus estimates for the current quarter and year are now in the negative territory—($0.05) and ($0.19) per share respectively, down substantially from $0.03 and $0.14 per share, 60 days ago.
Additional content:
PVR Partners, Hess Ink Deal
PVR Partners L.P. (NYSE:PVR-Free Report) continues to strengthen its strategic alliance with Hess Corporation (NYSE:HES-Free Report). Currently, the partnership has entered into an agreement with Hess Corp. to provide trunkline plus gathering and compression services. This project is expected to be online by the end of 2014. The estimated expenditure for this project will be in the range of $125-$150 million.
Per the agreement, PVR Partners will install a 45-mile natural gas trunkline with a diameter of minimum 20 inch. The partnership will also set up allied gathering pipelines and facilities at Hess Corp.'s lean gas production facility in eastern Ohio's Utica Shale. The trunkline will carry 450 million cubic feet of lean gas per day. The trunkline will initially connect with the Texas Eastern and Rockies Express interstate pipelines and subsequently connect with other interstate systems.
The new pipelines will cover Belmont, Jefferson and Harrison Counties, where Hess Corp. enjoys a considerable acreage position. Later, PVR Partners will own and operate the natural gas trunkline and related facilities. In addition, the partnership will also build gathering pipelines, compression stations, dehydration facilities and other associated facilities in the Utica Shale.
Initially, PVR Partners will provide services to Hess Corp. Later, the partnership intends to sign more contracts with several producers to provide capacity and gathering services.
In the current contract, PVR Partners will get service charges from Hess Corp. against providing these facilities. The fees will be calculated on the basis of volumes, thus ensuring steady revenue flow to the partnership, without commodity price risks.
Installation of a number of new pipelines will allow PVR Partners to strengthen its presence in the region and serve customers in a better way, which will subsequently increase the number of contract-awards while improving top line, going forward.
PVR Partners currently has a Zacks Rank #3 (Hold). Another stock from the industry presently performing well is Oiltanking Partners L.P. (NYSE:OILT-Free Report), with a Zacks Rank #1 (Strong Buy).
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Click here to subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on DXYN - FREE
Get the full Report on ELOS - FREE
Get the full Report on PVR - FREE
Get the full Report on HES - FREE
Get the full Report on OILT - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
SOURCE Zacks Investment Research, Inc.
Share this article