Zacks Bull and Bear of the Day Highlights: Wyndham Worldwide, Hospira, Automatic Data Processing, BB&T and BankAtlantic Bancorp
CHICAGO, Nov. 3, 2011 /PRNewswire/ -- Zacks Equity Research highlights Wyndham Worldwide (NYSE: WYN) as the Bull of the Day and Hospira Inc. (NYSE: HSP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Automatic Data Processing (Nasdaq: ADP), BB&T Corporation (NYSE: BBT) and BankAtlantic Bancorp Inc. (NYSE: BBX).
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Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Wyndham Worldwide's (NYSE: WYN) third quarter 2011 earnings were ahead of the Zacks Consensus Estimate, primarily on the back of strong operational performance at each of the three businesses, sound expense management, and continued share repurchases.
Going forward, we expect Wyndham to benefit from its repositioning to a more fee-for-service based business, and its strategic focus on Vacation Exchange as well as Rental businesses. The company is also experiencing a recovery in lodging business with a surge in leisure demands. Wyndham remains committed to enhancing shareholder value and expanding through acquisitions, given the robust free cash flow generation by the company.
Moreover, the company is strengthening its presence in the international markets, particularly in Europe and Asian markets like China and India. The company also raised its outlook for 2011. Hence, we maintain an Outperform rating on the stock.
Hospira Inc.'s (NYSE: HSP) third quarter preliminary results were below expectations due to continued manufacturing problems at the company's Rocky Mountain facility. The facility is expected to continue functioning below full capacity through the remainder of 2011. The additional costs for manufacturing remediation resulted in lost sales, inventory loss and lower service levels.
In addition, management cut its 2011 adjusted earnings guidance to $2.95-$3.05 from $3.90-$4.00. We have slashed our 2011 earnings estimate from $3.93 to $3.01 and our 2012 estimates from $4.47 to $2.85, in line with management's action.
Moreover, the Symbiq and Plum pump issues remain matters of concern. We have, therefore, downgraded our rating on Hospira from Neutral to Underperform.
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ADP Sees 110K Jobs Gained
The Automatic Data Processing (Nasdaq: ADP) employment survey was stronger than expected in October. It shows that private sector employment rose by 110,000, above consensus expectations for a 100,000 increase. The September numbers were revised up to a gain of 116,000 jobs from the initial report of a 91,000 gain.
On average, the ADP report does a fairly good job of predicting the private sector totals that the BLS reports the following Friday, although in any given month it can be off substantially. It is prone to fairly large errors in both directions. Last month it was a bit on the too-pessimistic side, particularly before the revision. The BLS private sector job gains were 137,000.
If confirmed by the BLS on Friday it would indicate that the economy continues to wallow along in a pseudo-recovery: growing, but not growing fast enough for anybody to really feel like it is growing. However, it would not indicate a renewed downturn.
BB&T to Buy BankAtlantic
BB&T Corporation (NYSE: BBT) announced the signing of an agreement to acquire Florida-based BankAtlantic, a wholly-owned subsidiary of BankAtlantic Bancorp Inc. (NYSE: BBX). The transaction would allow the company to fast track its expansion strategy in Florida region.
Under the terms of the deal, BB&T will acquire $2.1 billion in loans and roughly $3.3 billion in deposits (90% core and low-cost funds) for $301 million premium, representing 9.05% of the deposits at BankAtlantic on September 30, plus the net asset value of the bank. However, deposit premium could rise or fall based on the amount of deposits at BankAtlantic prior to the closing of deal, not exceeding $315.9 million.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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