Douglas Dynamics, Ford Motor, Walt Disney, Lions Gate Films and Netflix highlighted as Zacks Bull and Bear of the Day
CHICAGO, Nov. 7, 2014 /PRNewswire/ -- Zacks Equity Research highlights Douglas Dynamics (NYSE:PLOW-Free Report) as the Bull of the Day and Ford Motor Company (NYSE:F-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onWalt Disney Co. (NYSE:DIS-Free Report), Lions Gate Films (NYSE:LGF-Free Report) and Netflix (Nasdaq:NFLX-Free Report).
Here is a synopsis of all five stocks:
It may only be the beginning of November but the winter cold is already starting to creep in. The Halloween pumpkins aren't even rotten yet and already I'm hearing the dreaded phrase "Polar Vortex" creep back into conversations. For those of us north of the Mason-Dixon it feels like we just thawed out from last year. Well ready or not, old man winter is here. While most of us are downright disgusted with the thought, there are a few companies out there that are very excited to see the mercury drop. Among them is our "Bull of the Day"Douglas Dynamics (NYSE:PLOW-Free Report).
Headquartered in Milwaukee, Wisconsin, Douglas Dynamics designs, manufactures and sells snow and ice control equipment for light trucks. This equipment is comprised of snowplows and sand and salt spreaders. The company sells its products under the Western, Fisher, Blizzard, Snowex, Turfex and Sweepex brands. Currently the company is a Zacks Rank #1 (Strong Buy).
The third quarter was a great one for PLOW. Quarterly Net Sales increased 52% year over year to a record $78.8 million. It had record EPS of 47 cents in Q3, an increase of 45 over last year. Adjusted EBITDA increased 118% to a third quarter record of $22.2 million.
Chairman, President and CEO James L. Janik commented, "So far, 2014 has exceeded our internal expectations with strong financial performance reflecting a favorable market environment, strength across our portfolio, and successful execution of our strategy. During the quarter, we achieved record profitability, which is a testament to our relentless drive to improve efficiency and productivity through our manufacturing operations. We are focused on refining every one of our business processes, which will allow us to increase cash flow and invest in future growth opportunities to drive long-term shareholder value."
A big reason behind Douglas Dynamics' sweet Zacks Rank is the "Surprise" category. The latest 16 cent beat marked the fourth consecutive upside earnings surprise for the stock. This will likely force estimate revisions to the upside over the coming weeks heading into next quarter. Fourth quarter is historically a stronger period for Douglas Dynamic as the winter kicks into full gear and their products are more in demand.
When it comes to cars, I'll admit it, I'm a bit of a gear head. It started at an early age with me when my grandmother would bring me back toy cars from the store. I'd open up the package and look for the meanest, most muscle-bound car I could find, ignore the rest of the cars in there and run that bad boy across the shag carpet, destroying anything in my path. Then it was on to the picture of me in a toy jeep on my birthday with cake all over my face. Now every time I pay one car off I find myself getting another one. And no, I don't do trade-ins, I end up keeping them.
Brian Bolan can attest to the Ford Racing Shelby Cobra jacket I own which I rock with pride, much to the dismay of my coworkers. But I don't care. I'm unapologetically a muscle car man, a Ford fan, and Mustang owner. So it troubles me deeply to make Ford Motor Company (NYSE:F-Free Report) my "Bear of the Day."
There has been a lot of buzz surrounding the release of the 2015 Mustang. It's beautiful, more powerful, more refined, with better handling than its predecessor. With the addition of an independent rear suspension, Ford has eliminated the live axel for the first time ever in its iconic pony car. The thinking was that what the car gave up in additional weight, it would more than make up for in handling. Also, the increased performance would help Ford attack a new market for the Mustang, Europe. With its twisting roads and tight, narrow spaces, the appeal of straight line acceleration just doesn't carry over across the pond like it does here.
But that's not the only big change at the blue oval for this year. Ford has shaken up its irreplaceable F-150 by replacing lots of sheet metal with aluminum. That and other lightening measures have helped drop 700 pounds from this year's model and are pushing fuel economy close to the 30 MPG mark, in a pick-up truck!
Maybe things will turn around later in the model year for Ford but right now the analysts are decidedly bearish on earnings. Over the last 60 days consensus estimates have dropped from $1.34 to $1.11 for the current year and down from $1.93 to $1.63 for next year. Over just the last 30 days, seven analysts have revised to the downside for the current year, while only three have come in with positive revisions. That's a big reason for our Zacks Rank #5 (Strong Sell).
Additional content:
Disney, Lions Gate Beat Earnings Estimates
Two well-known entertainment firms -- The Walt Disney Co. (NYSE:DIS-Free Report) and Lions Gate Films (NYSE:LGF-Free Report) -- reported earnings after the bell Thursday, and both companies topped estimates on the top and bottom lines. Disney brought in $12.39 billion in revenues for the September quarter on earnings per share of 89 cents, beating the $12.23 billion and 88 cents per share expected. Lions Gate saw $552.9 million in sales and 16 cents earnings per share, surpassing the $532 million and 13 cents, respectively.
Disney has really been on a roll for the past three years when the stock was trading at $30 and change. Improvements in its five separate businesses and some hugely successful feature films like Frozen have been at the fore, though Disney does not seem to be quieting down anytime soon. Summer blockbusters like Guardians of the Galaxy helped keep the Studio segment in high gear, with a new Star Wars film -- its title just announced this morning, in fact: The Force Awakens -- coming down the pike.
As far as big film releases, the much smaller but no less movie-prolific Lions Gate may have not made much hay with Expendables 3, but the company has obviously very high hopes for Hunger Games: Mockingjay, Part 1, set for release the week before Thanksgiving. Lions Gate also made inroads into the online video streaming market recently by inking an agreement with Tribeca Enterprises.
For Disney's part, recent streaming deals with Google Play among others will keep this segment competitive with Netflix (Nasdaq:NFLX-Free Report), as well. Also, its Parks segment performed well in the quarter, helping Disney to an all-time record year in fiscal 2014 (which ended Q4 at the September quarter). Disney has beaten earnings estimates in each of the last 5 quarters. Lions Gate's beat-to-miss ratio is a little less steady than that, though when the company beats, it tends to do so by bigger margins.
Both companies had a Zacks Rank #3 (Hold) before their respective earnings announcements. Disney shares are down slightly in the after-market, but Lions Gate is up roughly 4.5%.
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