CHICAGO, Aug. 21, 2014 /PRNewswire/ -- Zacks Equity Research highlights Tata Motors Limited (NYSE: TTM-Free Report) as the Bull of the Day and Tupperware Brands Corporation (NYSE: TUP-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onHospira (NYSE: HSP-Free Report), Mylan (Nasdaq: MYL-Free Report) and Mallinckrodt (NYSE: MNK-Free Report).
Here is a synopsis of all five stocks:
Excellent quarterly results, thanks mainly to strong sales by its Jaguar Land Rover unit have sent estimates for Tata Motors higher and the stock back to Zacks Rank # 1 (Strong Buy).
Tata Motors Limited (NYSE: TTM-Free Report) is India's largest automobile company, and a leader in commercial vehicles in each segment, and among the top in passenger vehicles. It is also the world's fifth largest truck manufacturer and fourth largest bus manufacturer.
The company also has operations in the UK, South Korea, Thailand, South Africa and Indonesia. It acquired Jaguar Land Rover in 2008 from Ford to get a global presence in the luxury vehicle market.
Tata Motors' ADR is listed on the New York Stock Exchange since September 2004.
Tata Motors reported th results for its fiscal first quarter ended June 30 on August 12. Consolidated revenues rose 38.2% over the same quarter in the previous year, thanks mainly to strong demand for new products and growth in volumes at Jaguar Land Rover. On the other hand, the domestic segment continued to report a poor performance with declining sales for cars, SUVs, trucks and buses due to weak macroeconomic conditions.
After excellent results, analysts have raised their estimates for the company. Zacks Consensus Estimates for the current and next fiscal year are now $4.54 and $4.99 per share up from $4.32 and $34.54 per share respectively, 30 days ago.
On August 12, Tata Motors announced the launch of Tata Zest—its first new car model in four years. The car is targeted at India's fast growing middle class with rising incomes. India is expected to become the third largest auto market in the world after China and the US. Per Moody's profitability of the company depends on its ability to sell significant volumes of its new Zest and Bolt models.
Analysts have slashed their estimates for Tupperware after the company missed the revenue estimates and lowered its guidance. As a result, the stock fell back to Zacks Rank # 5 (Strong Sell) yesterday.
Tupperware Brands Corporation (NYSE: TUP-Free Report) is a multi-brand, multi-category, relationship-based sales company. It primarily manufactures and sells preparation, storage, and serving solutions for the kitchen and home.
The company made its debut in 1946 and has now expanded its presence in almost 100 countries around the world. Its sales force consists of independent contractors who market products directly to consumers.
On July 23, Tupperware announced the results for its Q2 of 2014. Net sales for the quarter were $674 million, below street estimates and also short of management's growth estimates. While emerging markets--accounting for 66% of sales--achieved a 10% increase in local currency terms, established markets were down 7% in local currency terms, largely driven by poor results in Germany.
According to the management, the quarter was challenging in several aspects with strong comparisons from prior year, as well as some external and internal challenges, particularly in Germany.
Net income (excluding foreign currency) was down 31% year-over-year. Adjusted diluted earnings of $1.47 per share (including $0.14 negative impact from changes in foreign exchange rates), however met the street consensus.
The company also lowered its full-year earnings guidance to $5.40 to $5.50 per share from the previous guidance of $5.66 to $5.81 per share provided earlier in April.
Hospira Sues FDA on Generic Approval
Shares of Hospira (NYSE: HSP-Free Report) tumbled 2.81% to close the trading session on Aug 19 at $53.92 per share, following the company's decision to file a lawsuit against the FDA over approvals granted to generic versions of its injectable sedative Precedex (dexmedetomidine hydrochloride). Hospira believes that the U.S. regulatory body will clear more applications pertaining to generic forms of the drug, which is a significant contributor to the company's top line.
The branded version of the drug is approved for use in non-intubated patients who need sedation as well as intubated and mechanically ventilated patients in the intensive care setting. Hospira holds a patent (6,716,867) on Precedex relating to intensive care unit sedation which will expire in 2019. The FDA, while approving generic forms of Precedex, stated that it is free to clear the generic versions with labels having no information about the sedative's use in the intensive-care setting and include information pertaining to its uses in other settings. Hospira has challenged the FDA's decision.
Despite the entry of the generic versions of the drug, Hospira continues to expect 2014 earnings per share in the range of $2.30 to $2.50. The Zacks Consensus Estimate of $2.43 per share is well within the guidance range.
Mylan (Nasdaq: MYL-Free Report) was one of the companies to gain FDA approval for its generic version of Precedex. Approval was gained to sell its generic version of Precedex for the sedation of non-intubated patients preceding and/or during surgical and other procedures. The generic player launched its generic form of Precedex immediately after receiving the FDA nod.
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