The Zacks Analyst Blog Highlights:Goldman Sachs Group, Blackstone Group L.P., Wal-Mart Stores, GoPro and Gibraltar Industries
CHICAGO, July 1, 2014 /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 Goldman Sachs Group, Inc. (NYSE:GS-Free Report), Blackstone Group L.P. (NYSE:BX-Free Report), Wal-Mart Stores Inc. (NYSE:WMT-Free Report), GoPro, Inc. (Nasdasq:GPRO-Free Report) andGibraltar Industries, Inc. (Nasdaq:ROCK-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Michaels IPO Raises $472M
Initial Public Offerings (IPO) continue to gain traction as more and more companies list their stocks on a public exchange. Art & craft specialty retailer The Michaels Companies, Inc. is the latest to join the fray, with its shares commencing trade under the symbol "MIK" from Jun 27, 2014.
The company issued 27.8 million shares at $17.00 apiece. Per sources, the initial price target was in the range of $17.00 to $19.00 a share. However, the opening price at the beginning of the trading session was $17.00, which nudged up to close at $17.02.
With The Goldman Sachs Group, Inc. (NYSE:GS-Free Report) and J.P. Morgan serving as representatives and joint book-running managers of the underwriters, Michaels raised over $472 million from this offering. It plans to use the proceeds to repay its outstanding debt. Alongside, underwriters have been given a 30-day option to buy up to an additional 4.2 million shares, by various selling shareholders.
Michaels is one of the biggest arts and crafts specialty retailers in North America. Based in Texas, the company currently owns 1,145 Michaels stores in Canada and 49 other states. It also operates 118 Aaron Brothers stores and develops 11 unique private brands such as Studio Decor, Bead Landing, Loops & Threads, and Recollections.
Founded in 1983, most of the company's stock was acquired by the affiliates of Bain Capital Partners, LLC and The Blackstone Group L.P. (NYSE:BX-Free Report) in Oct 2006. Michaels generated $4.6 billion in sales in fiscal 2013.
Dealing in a wide range of products like framing, seasonal merchandise, wall décor, home décor and so on exposes Michaels to stiff competition from behemoths like Wal-Mart Stores Inc. (NYSE:WMT-Free Report).
Apart from Michaels, another company which recently favored the IPO market includes GoPro, Inc. (Nasdasq:GPRO-Free Report). This portable video camera maker raised higher-than-expected $427 million from the offering. GoPro's equity offer also marks the second largest IPO in Sillicon Valley behind Alibaba.
Gibraltar (ROCK) Lowers Q2 Outlook
Gibraltar Industries, Inc. (Nasdaq:ROCK-Free Report) recently announced its fiscal second-quarter 2014 (ending Jun 30, 2014) preliminary results. The company expects revenues in the range of $230–$233 million, down from previously expected range of $243–$248 million. Residential Products segment sales are expected to be within $116–$118 million, which leads to 6% year over year growth, down from 20% growth expected earlier. Additionally, adjusted net income has been lowered to a range of 14–16 cents per share from the previous projection of 29–32 cents per share.
The reduced outlook was due to lower end-market demand in the fiscal second quarter. Gibraltar Industries had reported disappointing fiscal first-quarter 2014 results due to prolonged cold weather in major parts of the U.S. Its hopes for stronger sales in the fiscal second quarter were also dashed due to weak demand for residential products. Gross profit margin in the fiscal first quarter decreased 275 basis points to 15.6%.
In the fiscal second quarter, residential products sales remained low with no further signs of improvement expected in second half of the year. Gibraltar Industries does not expect revenues in the second half of fiscal 2014 to be significantly higher than the first half. Based on this, the company expects adjusted earnings per share in the second half of the fiscal year to be in line with the first half.
The company is expected to release fiscal second-quarter results on Aug 5. The Zacks Consensus Estimate for the same stands at 15 cents per share, reflecting a year-over-year decline of 42.3%. However, the Zacks Consensus Estimate for fiscal 2014 stands at 82 cents per share, denoting year-over-year growth of 18.8%.
With a market capitalization of $474.8 million, Gibraltar Industries sports a Zacks Rank #1 (Strong Buy) at this time.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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