The Zacks Analyst Blog Highlights:DFC Global, Walgreens, Supernus Pharma, GNC Holdings and Herbalife

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Sep 03, 2013, 09:30 ET

CHICAGO, Sept. 3, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the DFC Global Corp. (Nasdaq:DLLR-Free Report), Walgreens (NYSE:WAG-Free Report), Supernus Pharma (Nasdaq:SUPN-Free Report), GNC Holdings Inc. (NYSE:GNC-Free Report) and Herbalife Ltd. (NYSE:HLF-Free Report).

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Here are highlights from Friday's Analyst Blog:

DFC Financial Downgraded to Strong Sell

Zacks Investment Research downgraded DFC Global Corp. (Nasdaq:DLLR-Free Report) to a Zacks Rank #5 (Strong Sell) on Aug 27.

Why the Downgrade?

DFC Global has witnessed sharp downward estimate revisions after reporting disappointing fiscal fourth quarter and 2013 results.

On Aug 22, DFC Global reported fiscal fourth quarter and 2013 earnings results. Fiscal fourth quarter earnings per share lagged the year-ago earnings of 58 cents per share by 15.5%, though it surpassed the Zacks Consensus Estimate by 4.3%.

Though the total revenue of DFC Global for the quarter inched up 0.9% year over year, it fell short of the Zacks Consensus estimate by 21%.

Fiscal 2013 bottom line fell short of the year ago earnings by 18.5%.

Operating expenses in the reported quarter escalated 20.2% year over year.

The extent of increase in operating expenses offset the increase in revenue, thereby pulling down operating income by 31.9% year over year to $67.3 million in the reported quarter. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $69.3 million, down 11.7% year over year.

While DFC Global exited fiscal 2013 with cash and cash equivalents of 196.2 million, down 12.4% year over year, long-term debt increased 3.8% year over year to $975 million as of Jun 30, 2013.

DFC Global expects to incur expense in the range of $10.0 million–$15.0 million to support ongoing regulatory related activities, including regulatory advisory costs, legal opinion and analysis, and audit and regulatory compliance costs in fiscal 2014.

The Zacks Consensus Estimate for fiscal 2014 slumped 86% to $1.12 per share over the last 7 days and all 4 estimates moved south. For fiscal 2015, 1 of 4 estimates was revised downward over the same time frame, sinking the Zacks Consensus Estimate by 36% to $1.66 per share.

Walgreens Makes Deal with Orlando Health

Walgreens (NYSE:WAG-Free Report) and Florida-based Orlando Health, a not for-profit-healthcare organization, signed a clinical collaboration that will provide integrated and expanded health care services to patients throughout Central Florida, with an added focus on convenience and affordability.

The collaboration will see Healthcare Clinics operating at conveniently-located Walgreens during evenings and weekends, with online appointment-scheduling facilities. Orlando Health patients will receive coordinated Healthcare Clinic facilities for chronic and preventive disorders.

The collaboration will also facilitate communication between Orlando Health physicians and Healthcare clinic nurses to effectively share patient information. Finally, it will ensure extended patient awareness regarding Orlando Health and Healthcare Clinic services.

The healthcare industry presents diverse opportunities and the collaboration will serve Walgreen's mission to provide customized and quality healthcare services. Walgreens plans to utilize its extensive chain of popular retail outlets to deliver superior medical care, while ensuring better management of patient care services at the same time. The diverse portfolio of health care assets of the company is also expected to deliver proper and timely services to the patients.

The two companies are also interested in exploring options of sharing electronic medical records to ensure read-only access for real-time medical data of patients. The execution of such endeavour thus foresees the need for creating online or call center appointment scheduling technology.

This collaboration will effectively focus on Central Florida, Orlando Health being a primary healthcare provider in the region. A total of 13 Healthcare clinics at select Walgreens in nearby cities like Orlando, Kissimmee, Apopka, Winter Springs, Clermont, Lake Buena Vista, Lake Mary, Winter Park and Windermere, Florida have been shortlisted to offer the services.

Both Walgreens and Orlando Health services are of the opinion that adoption of new approaches, and building new relationships will optimally cater to the growing healthcare needs of people, offering them the best possible medical services at convenient locations and affordable rates.

Currently, WAG carries a Zacks Rank #3 (Hold). Other stocks that are worth a look include Supernus Pharma (Nasdaq:SUPN-Free Report) carrying a Zacks Rank #1 (Strong Buy) GNC Holdings Inc. (NYSE:GNC-Free Report) and Herbalife Ltd. (NYSE:HLF-Free Report), each carrying a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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