CHICAGO, June 15, 2011 /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: Best Buy Company, Inc. (NYSE:
BBY), V.F. Corporation (NYSE: VFC), Timberland Co.
(NYSE: TBL), Gap Inc. (NYSE: GPS) and Sears Holdings
Corporation (Nasdaq: SHLD).
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Here are highlights from Tuesday's Analyst Blog:
Best Buy Tops Estimate
Best Buy Company, Inc. (NYSE: BBY), a leading specialty
retailer of consumer electronic products, recently posted
better-than-expected first-quarter 2012 results, thereby sending
the shares up $2.06 or 7.2% to
$30.88 in pre-market trading.
The quarterly earnings of 35 cents
a share topped the Zacks Consensus Estimate of 33 cents, but fell 2.8% from 36 cents earned in the prior-year quarter. The
Zacks Consensus Estimate had remained stagnant prior to the
earnings release with none of the 25 analysts covering the stock
revising their estimates in the last 30 or 7 days.
Management reiterated its fiscal 2012 adjusted earnings guidance
range of $3.30 to $3.55 per share.
The current Zacks Consensus Estimate for the fiscal year is
$3.46.
Gross profit dropped marginally by 0.9% to $2,768 million, whereas gross margin contracted
60 basis points (bps) to 25.3%. Operating income slipped 9.9% to
$282 million, whereas operating
margin fell 30 bps to 2.6%.
Richfield, Minnesota-based Best
Buy said that total revenue climbed 1.4% to $10,940 million from the prior-year quarter.
However, the company registered a fall of 1.7% in comparable-store
sales versus growth of 2.8% in the year-ago quarter.
The total revenue also came ahead of the Zacks Consensus
Estimate of $10,697 million. For
fiscal 2012, Best Buy projected revenue between $51 billion and $52.5 billion.
VF Corp. to Acquire Timberland
V.F. Corporation (NYSE: VFC), in an endeavor to grow its
outdoor and action sports business through expansion, entered into
a merger agreement with Timberland Co. (NYSE: TBL). The
company has offered to pay $43 for
each Timberland share or $2.2 billion
net of cash acquired.
The inclusion of Timberland in the V.F. Corporation portfolio of
brands of outdoor and action sports business comprising Vans,
Jansport, Eastpak and other brands, will make 50% of the company's
total revenue, expected to rise to 60% by 2015.
The deal, which is expected to reach fruition by the end of
third quarter of fiscal 2011, will increase V.F. Corporation's
profit by 25 cents a share and
revenues by $700 million in fiscal
2011.
In fiscal 2012, the deal is expected to add 75 cents to the earnings of the company.
Timberland is expecting annual sales of $1.6
billion in 2011 while V.F. Corporation targets an annual
revenue growth of 10%.
The transaction, subject to customary conditions, including
receipt of Timberland stockholder approval and applicable
regulatory approvals, will be financed by the company through cash
in hand, commercial paper and term debt.
Timberland is a global leader in the design, engineering and
marketing of premium-quality footwear, apparel and accessories for
consumers. Timberland markets products under the Timberland,
Timberland PRO, Mountain Athletics, SmartWool, Timberland Boot
Company and Howies brands.
Based in Greensboro, North
Carolina, V.F. Corporation is one of the world's largest
apparel companies. The company, together with its subsidiaries,
engages in the design, manufacture, and marketing of branded
apparel and related products in the
United States and internationally. Major competitors of the
company are Gap Inc. (NYSE: GPS) and Sears Holdings
Corporation (Nasdaq: SHLD).
V.F. Corporationcurrently retains a Zacks #2 Rank, which
translates to a short-term Buy rating. However, we maintain a
long-term Outperform recommendation on the stock.
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