St. Joe, PennyMac Mortgage Investment Trust, Johnson Controls, Tower International and Lear highlighted as Zacks Bull and Bear of the Day
CHICAGO, Dec. 23, 2013 /PRNewswire/ -- Zacks Equity Research highlights The St. Joe Company (NYSE:JOE-Free Report) as the Bull of the Day and PennyMac Mortgage Investment Trust (NYSE:PMT-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Johnson Controls Inc. (NYSE:JCI-Free Report), Tower International, Inc. (NYSE:TOWR-Free Report) and Lear Corp. (NYSE:LEA-Free Report).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Here is a synopsis of all five stocks:
The St. Joe Company (NYSE:JOE-Free Report) is a real estate developer with more than 500,000 acres of land, concentrated primarily in Northwest Florida between Tallahassee and Destin.
Over the years, the company has developed successful residential and commercial projects and related infrastructure and is currently focused on growing its resorts, leisure and leasing operations.
JOE has five reportable operating segments: (1) residential real estate, (2) commercial real estate, (3) resorts, leisure and leasing operations, (4) forestry and (5) rural land. During Q3, about 50% of revenues came from resorts, leisure and leasing operations.
Joe reported its third quarter results on November 7, 2013. Net Income for the quarter came in at $4.2 million, or $0.05 per share, significantly ahead of the Zacks Consensus Estimate of $0.01 per share.
PennyMac Mortgage Investment Trust (NYSE:PMT-Free Report) is a specialty finance company that invests primarily in residential mortgage loans and mortgage-related assets. The company operates as a REIT for tax purposes. PMT is an externally managed by PNMAC Capital Management LLC, an investment adviser.
PennyMac invests in residential mortgage-related opportunities including mortgage loans, mortgage servicing rights and mortgage-backed securities. It invests in both newly originated prime mortgage loans and distressed mortgage loans.
PMT reported its Q3 results on November 6, 2013. The company reported net income of $39.7 million, or $0.57 per diluted share, for the quarter, down 27% from the prior quarter. The results missed the Zacks Consensus Estimate of $0.66 per share by nine cents.
Results were affected by higher mortgage rates which resulted in a significant slowdown in refinance activity and contraction in the mortgage origination market.
ROE declined to 11% from 18% in the prior quarter but the book value increased to $21.22 from $21.06 in the prior quarter.
Additional content:
Johnson Controls Sees Brighter 2014
Shares of Johnson Controls Inc. (NYSE:JCI-Free Report) declined 2.3% to $50.16 yesterday due to broader market decline, even though the company provided profitable guidance for 2014. The company projected higher sales and earnings in fiscal 2014 based on its continued market leadership in core businesses and strong overall performance.
Johnson Controls expects earnings per share in the band of $3.15 to $3.30 for the year, compared with $2.66 per share earned in fiscal 2013. Revenues are likely to improve 3% to $43.8 billion in the year driven by growth in all the business segments. Revenues will benefit from higher automotive production in all its locations compared to 2013 level, with 11% improvement in China, 6% in North American and 2% in Europe.
Segment Outlook
Revenues in the Automotive Seating segment are estimated to rise 1% to 2% in fiscal 2014, based on higher production volumes in North America and stable volume in Europe. Chinese business results are not incorporated in the revenue guidance. However, revenues in the Automotive Electronics are expected to witness 2.5% to 3% decrease and the Automotive Interiors sales should decline by 1.5% year over year.
The Automotive Experience segment's margins are projected at around 4% to 4.2%, driven by higher volumes, operational improvements, and benefits from restructuring actions.
Revenues from the Building Efficiency segment are estimated to increase 1% to 3% in 2014 due to growth in the emerging markets partially offset by Global Workplace Solutions (GWS) portfolio rationalization. Segment margins are forecasted to rise to 7%–7.2%, due to pricing actions, benefits from cost reduction initiatives and GWS operating model changes.
Revenues from the Power Solutions segment are expected to climb 7% to 8%, due to expanding volumes in all regions with higher market share growth in China. Increased production of Absorbent Glass Mat (AGM) batteries will also benefit the results. Segment margins should be around 16% to 16.2% due to higher profitability in China, operational improvements and positive impacts from vertical integration.
Johnson Controls plans capital expenditures of $1.2 billion in 2014, which is $200 million lower than the 2013 level. The company predicts free cash flow generation of about $1.6 billion which will provide opportunities for future capital expenditures, strategic acquisitions, share repurchases and dividend payouts.
Mid-Term/Long-Term Outlook
Till 2018, Johnson Controls expects revenues from the Automotive Experience segment to be consistent with 2013 levels due to lower capital investments and new vehicle programs. The company predicts margin to expand to about 7% by 2018 due to the favorable impacts from vertical integration, operational improvements and commercial discipline.
Johnson Controls expects revenues from the Building Efficiency segment to rise 5% to 6% on the back of recovery in global markets and gain in market share. The company forecasts margins, excluding GWS, to reach 10% due to higher volumes, pricing initiatives and supply chain improvements.
Johnson Controls expects revenues from the Power Solutions segment to rise 8% to 9% per annum due to expansion in China and improved product mix together with gain in market share. The company projects margin expansion of 100 to 150 basis points till 2018, due to better product mix and the benefits of vertical integration.
Johnson Controls is a supplier of automotive interiors, batteries, and other control equipment. It leads in the supply of HVAC, building controls, refrigeration and security systems for buildings. The company currently holds a Zacks Rank #3 (Hold).
Some better-ranked stocks the same industry include Tower International, Inc. (NYSE:TOWR-Free Report) and Lear Corp. (NYSE:LEA-Free Report), which carry 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 JOE - FREE
Get the full Report on PMT - FREE
Get the full Report on JCI - FREE
Get the full Report on TOWR - FREE
Get the full Report on LEA - 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
[email protected]
http://www.zacks.com
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