Procter & Gamble (PG) gave up its early gains and was trading lower Tuesday, despite reporting better-than-expected third-quarter earnings.
P&G said it earned 86 cents a share on revenue of $15.76 billion, while analysts were expected 82 cents a share on $15.82 billion. Its guidance for the fourth quarter and full year were in-line with expectations but still call for EPS to fall year over year.
Analysts are weighing in on the stock this afternoon. Citis Wendy Nicholson reiterated a Buy rating and raised her price target by 42, to $90, writing that while productivity programs are in full swing sales growth is still elusive:
PGs robust cost savings initiatives have led to a 310 bps YoY increase in the companys operating margin YTD in FY16 (300 bps alone in 3Q, despite a 130 bps increase in advertising spending). And, PG sounds confident in its ability to continue to improve its productivity further. On a YTD basis, PGs organic top line growth is flat, compared to market growth rates of 3%, which is a result of PG continuing to lose market share in more than 50% of its businesses. While PG has indeed shown some areas of improvement in organic top line growth (e.g., China down only MSD in fiscal 3Q16 vs. down HSD in fiscal 2Q16, and there are pockets of strength in U.S. market shares for laundry, baby care, hair care, and oral care), PGs overall batting average with regard to the success of its reinvestment initiatives is still disappointing, in our view.
Top Cheapest Companies To Invest In Right Now: Credit Suisse Group(CS)
Credit Suisse Group AG, together with its subsidiaries, operates as a financial services company. The company operates in three segments: Private Banking, Investment Banking, and Asset Management. The Private Banking segment offers advisory services and a range of wealth management solutions, including pension planning, life insurance products, tax planning, and wealth and inheritance advice for the high-net-worth and ultra-high-net-worth individuals. This segment also supplies banking products and services to affluent, high-net-worth and ultra-high-net-worth clients, and corporates and institutions. The Investment Banking segment provides investment banking and securities products and services to corporations, governments, pension funds, and institutions. Its products and services include debt and equity underwriting, sales and trading, mergers and acquisitions advice, divestitures, corporate sales, restructuring, and investment research. The Asset Management segment offe rs integrated investment solutions and services to institutions, governments, foundations and endowments, corporations, and individuals. It provides access to a range of investment classes across alternative investment, asset allocation, and traditional investment strategies. The company operates in Switzerland, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. Credit Suisse Group AG was founded in 1856 and is headquartered in Zurich, Switzerland.
- [By Paul R. La Monica]
European banks worse off than 2008? Lamensdorf is concerned about the exposure to bad loans (especially energy company debt) held by big banks such as Royal Bank of Scotland (RBS), Credit Suisse (CS) and Deutsche Bank (DB). He’s shorting all three.
- [By Wayne Duggan] Related DB Deutsche Bank In The Tank Mike Khouw Sees Unusual Options Activity In Deutsche Bank 33 Large Banks On The Federal Reserve's Radar In 2016 (Seeking Alpha) Related CS Earnings Scheduled For February 4, 2016 Blockchain Moves Forward In The Financial Industry Credit Suisse Group AG (CS) Tidjane Thiam on Q4 2015 Results – Earnings Call Transcript (Seeking Alpha)
The latest credit default swap (CDS) data from BMO Capital Markets indicate a number of investors are growing increasingly concerned about the one-year outlook for capital markets. In a new report, analyst Mark Steele discussed the recent surge in one-year CDS activity, and what it means for the market.
Top Cheapest Companies To Invest In Right Now: Astro-Med, Inc.(ALOT)
AstroNova, Inc., formerly Astro-Med, Inc., incorporated on January 9, 1969, designs, develops, manufactures and distributes a range of specialty printers, and data acquisition and analysis systems. The Company operates through two segments: QuickLabel and Test & Measurement (T&M). The Company sells specialty printing systems, and test and measurement systems under the brand names, including QuickLabel. The Company offers both hardware and software, which incorporate technologies in order to acquire, store, analyze and present data in multiple formats. The Company serves markets, such as aerospace, apparel, automotive, avionics, chemicals, computer peripherals, communications, distribution, food and beverage, general manufacturing, packaging and transportation. The Company’s products are distributed through its sales teams and authorized dealers in the United States. The Company sells to customers outside of the United States through its branch offices in Canada, Europe and Asia, as well as with independent dealers and representatives.
The Company’s QuickLabel segment offers product identification and label printer hardware, software, servicing contracts and consumable products. The products sold under the QuickLabel brand include digital color label printers and specialty original equipment manufacturer (OEM) printing systems, as well as a line of consumables, including labels, tags, inks, toner and thermal transfer ribbon. In addition, QuickLabel sells special software used to design labels and other identification marks for a range of applications especially in the field of packaging. QuickLabel provides training and support through trained service technicians. The products sold under the QuickLabel brand are used in industrial and commercial product packaging and automatic identification applications to digitally print custom labels and other visual identification marks. In the aerospace market, the Com pany provides airborne printers.
In the color l! abel market, QuickLabel offers a range of entry-level, mid-range and high-performance digital label printers. QuickLabel products are sold to manufacturers, processors and retailers labeling products on a short-run basis. The QuickLabel models include the Kiaro! family of high-speed inkjet color label printers, and the QLS-4100 Xe color thermal transfer label printer. QuickLabel also sells and supports its Pronto! family of barcode printers, which utilize single color-thermal transfer label printing technology, as well as a range of custom designed OEM printers.
Test & Measurement
The Company’s T&M segment offers a suite of products and services that acquire and record visual and electronic signal data from local and networked sensors, as well as wired and wireless networks. The recorded data is processed and analyzed and then stored and presented in various visual output formats. The Company supplies a range of products and services that include ha rdware, software and consumables to customers. The segment also includes a line of aerospace printers that are used to print hard copies of data. Its products include the Daxus portable data acquisition system, TMX high-speed data acquisition system, Dash 8HF-HS data recorders, Everest telemetry recorders, ToughWriter, Miltope-brand and RITEC-brand airborne printers, and ToughSwitch ruggedized Ethernet switches.
The Company’s airborne printers are used in the flight deck and in the cabin of military, commercial and business aircraft to print hard copies of data required for the operation of aircraft, including navigation maps, arrival and departure procedures, flight itineraries, weather maps, performance data, passenger data, and various air traffic control data. ToughSwitch Ethernet switches are used in military aircraft and military vehicles to connect multiple computers or Ethernet devices. The airborne printers and Ethernet switches are ruggedized to comply with rigorous military and commercial flightworthiness stan! dards for! operation under extreme environmental conditions. The Company furnishes ToughWriter airborne printers for numerous aircraft made by Airbus, Boeing, Embraer, Bombardier, Lockheed, Gulfstream and others.
The Company’s family of portable data recorders is used in research and development (R&D) and maintenance applications in aerospace and defense, energy discovery and production operations, rapid rail, automotive, and a range of other transportation and industrial applications. The TMX data acquisition system is designed for data capture of long-term testing where the ability to monitor high channel counts and view a range of input signals, including time-stamped and synchronized video capture data and audio notation is important. Everest telemetry recorders are used in the aerospace industry to monitor and track space vehicles, aircraft, missiles and other systems in flight.
- [By Monica Gerson]
Astro-Med, Inc. (NASDAQ: ALOT) is projected to post its quarterly earnings at $0.21 per share on revenue of $25.50 million.
Bellatrix Exploration Ltd (NYSE: BXE) is expected to post a quarterly loss at $0.10 per share on revenue of $71.27 million.
Best Oil Service Stocks For 2016: Pinnacle Entertainment Inc.(PNK)
Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L’Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.
- [By Ben Levisohn]
Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.
First Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:
When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.
Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:
With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.
He also likes Wynn Resorts (WYNN), despite its 34% gain.Santarelli writes:
As for WYNN, we believe near-term estimates continue to take a back seat to capital return