Analyst upgrades

• UBS upgraded CF Industries (CF) to neutral from sell. The firm cites valuation for the upgrade. In addition, UBS raised its price target on shares to $84 from $81.
• Baird upgraded Johnson Controls (JCI) to outperform from neutral and raised its price target to $42 from $33. The upgrade was based on improving margins, China growth, and upside from a cyclical recovery.
• Barrington upgraded G&K Services (GKSR) to outperform from market perform ahead of the company's Q3 results to reflect optimism regarding the company's operational turnaround. The firm set a $35 price target for shares.
• LaSalle Hotel (LHO) was upgraded to top pick from outperform at RBC Capital.
• Zimmer (ZMH) was upgraded to overweight from neutral at JPMorgan.
• Thermo Fisher (TMO) was upgraded to buy from hold at Jefferies.

Continue reading Analyst Calls: CF, JCI, BAX, NWL, UTL, NOK, VMW, ANF, DELL

Analyst Calls: CF, JCI, BAX, NWL, UTL, NOK, VMW, ANF, DELL originally appeared on BloggingStocks on Mon, 26 Apr 2010 10:00:00 EST. Please see our terms for use of feeds.

I'm characterizing this as odd because I guess I was expecting to see a big beat on the bottom line after observing the strong rally in the stock. At the time of this writing, shares of the retailer were trading higher by over 6%, with tons of volume backing the bid.

Continue reading American Eagle Outfitters Rallies on Q4 Stats

American Eagle Outfitters Rallies on Q4 Stats originally appeared on BloggingStocks on Wed, 10 Mar 2010 15:30:00 EST. Please see our terms for use of feeds.

J. Crew Group (JCG), an apparel chain whose related stocks include Abercrombie & Fitch (ANF), Gap (GPS), and JCPenney (JCP), reported strong sales and earnings yesterday after the bell. I'm impressed; I have to say, like I did the last time, bravo to an excellent quarter.

Overall sales rose 19% in Q4, according to the corporate press release. Same-store revenues increased 17%. Earnings per share were 61 cents on a diluted basis. A loss of 22 cents was recorded twelve months ago. As far as the analysts go, they should be pleased. Then again, they probably should be disappointed, since their projections were completely taken out (I guess it all depends on one's perspective). Either way, the call was for net income to come in around 46 cents per share.

Continue reading J. Crew Posts Strong Q4: Time to Take Profits?

J. Crew Posts Strong Q4: Time to Take Profits? originally appeared on BloggingStocks on Wed, 10 Mar 2010 09:10:00 EST. Please see our terms for use of feeds.

Continue reading Abercrombie (ANF) Looking Rangebound?

Abercrombie (ANF) Looking Rangebound? originally appeared on BloggingStocks on Thu, 18 Feb 2010 14:30:00 EST. Please see our terms for use of feeds.

Abercrombie & Fitch (ANF), whose mall colleagues include American Eagle Outfitters (AEO) and Gap (GPS), closed over 4% higher on Tuesday on active volume. The market liked the fourth quarter numbers. I did not.

Let's see. Total sales were down 5%. Same-store sales skidded 13%. Total company domestic sales contracted 12%. And net income came in at 91 cents per share, adjusted. This compared unfavorably to the $1.06 per share made in the year-ago period.

Continue reading Abercrombie & Fitch Posts Lower Sales in Q4

Abercrombie & Fitch Posts Lower Sales in Q4 originally appeared on BloggingStocks on Wed, 17 Feb 2010 10:10:00 EST. Please see our terms for use of feeds.

Here's a stock I've been wrong about. I've been bearish on J. Crew Group (JCG), as this previous article will indicate. But since the latest quarterly results show a vast improvement of the retailer's fundamentals, I guess you could say I was decidedly behind the curve.

According to the earnings release, revenues increased 14% in the third quarter. Same-store sales advanced 8%. Net income more than doubled to 67 cents per diluted share. A lot of this good news was expected, as Trey Thoelcke pointed out in his earnings preview. Still, the bottom line beat the analysts by several pennies. And you've got to love the increase seen in the gross margin.

Continue reading J. Crew reports an excellent quarter: Is the stock a buy before the holidays?

J. Crew reports an excellent quarter: Is the stock a buy before the holidays? originally appeared on BloggingStocks on Wed, 25 Nov 2009 09:00:00 EST. Please see our terms for use of feeds.

Ann Taylor (ANN) was upgraded Monday, according to TheStreet.com. Jesup & Lamont calls the stock a buy now instead of a hold. You're never far from the analyst game when you trade on Wall Street. Question is, what should you do about this retailer? Should you give it a position in your own portfolio?

I'm not the biggest fan of Ann Taylor. I don't like the fundamentals. I made this amply clear back in August when I discussed the company's second quarter.

Continue reading Ann Taylor upgraded: Ignore the stock or buy ahead of earnings report?

Ann Taylor upgraded: Ignore the stock or buy ahead of earnings report? originally appeared on BloggingStocks on Tue, 17 Nov 2009 09:30:00 EST. Please see our terms for use of feeds.

Back in August, I discussed my amazement at Abercrombie & Fitch (ANF). The stock just didn't seem to be acting in a manner which reflected the fundamentals of the business it represents. Well, my bout of amazement continues, because shares of the retailer are up 9% as of this writing on the latest earnings report. One that didn't impress me.

For the third quarter, Abercrombie made, on a reported basis, 44 cents per diluted share compared to 72 cents per diluted share in the year-ago period. After adjustments, earnings came in at 30 cents per share. Okay, that profit drop is bad enough, but wait till I get to the really bad stuff. Which would be revenues. Total sales declined 15%, but same-store sales were even worse: they plunged off the proverbial cliff, falling 22%.

Continue reading Abercrombie & Fitch: A momentum play after Q3 release?

Abercrombie & Fitch: A momentum play after Q3 release? originally appeared on BloggingStocks on Fri, 13 Nov 2009 18:00:00 EST. Please see our terms for use of feeds.

The future investment stars are already with us. The NYSE Financial Future Challenge, operated by the NYSE Foundation, By Kids for Kids, K12 Inc. and the United Investors Association, is in full swing, with five finalists just identified. To reach this level, the participants had to develop a new product, idea or process that would "excite, educate and motivate their peers" to become interested in the financial marketplace. The eventual winner lurks within this subset and will receive a $2,500 prize -- a great way to get that portfolio started. And, he or she will be feted at a closing bell ceremony at the NYSE (NYX) on January 11, 2010.

The finalists presented a variety of ideas which are sure to generate some buzz. Kelsey Foss, a 12-year-old from Mountainville, NY, proposed a new television show, "Stock Market Tycoon Idol," which would harness the popularity of reality TV while amping up the content. The program would involve the journeys of 10 kids as they seek to make money or lose it, with the possibility of becoming virtual millionaires along the way. The show would be set at a mock NYSE studio on Wall Street, and exports would be brought out to mentor the contestants. The reality TV reach would help engage a younger audience.

Continue reading Tomorrow's gurus shine in NYSE Financial Future Challenge

Tomorrow's gurus shine in NYSE Financial Future Challenge originally appeared on BloggingStocks on Fri, 13 Nov 2009 09:15:00 EST. Please see our terms for use of feeds.

There's a difference between a CEO that's paid well and one that's raking in loot he clearly doesn't deserve. The former may invoke a bit of ire in this economic climate, but when cooler heads prevail, the cash laid out is usually but a rounding error on the increases in market cap he's driven. An overpaid CEO, on the other hand ... well, it's a bit harder to justify the inflated package.

Kerri Chyka over at CNN Money reports that the Corporate Library sifted through the bloated and legit packages out there to let us know which top dogs are rolling in dough that should probably be left in the company coffers.

1. Michael Jeffries, Abercrombie & Fitch (NYSE: ANF)
Last year, Michael Jeffries made $71.8 million in total, with a base salary of $1.5 million, according to corporate governance research firm, the Corporate Library. It even included a $6 million retention bonus ... because you want to hang on to a guy who the research firm calls one of the five "Highest Paid Worst Performers" of 2008. If that stings, Jeffries can hop on the Abercrombie corporate jet instead of running away. He's paid better than 75% of rival CEOs, while the share price generally underperformed them.

2. James W. Stewart, BJ Services Company (NYSE: BJS)
James Stewart had a good year in 2008, as it outperformed most of its peers, and he nailed a $34.6 million package. In all fairness, $30 million came from the value realized on stock options. The four years that preceded Stewart's strong performance, on the other hand, were lackluster. The future, it seems, is immaterial, as Baker Hughes picked up BJ Services last month, and Stewart will probably be out the door at the end of the year, when the deal closes.

Continue reading Five overpaid CEOs to make you jealous

Five overpaid CEOs to make you jealous originally appeared on BloggingStocks on Tue, 29 Sep 2009 15:20:00 EST. Please see our terms for use of feeds.

Retail sales were down for the twelfth month in a row in August, according to an Associated Press report. Consumers stayed focused on what they need rather than what they want, as unemployment remains high and even those employed worry about the future of their jobs.

The silver lining, though, is that the coming holiday season might not be as bad as many thought.

Some retailers actually showed gains. TJMaxx (NYSE: TJX) and Old Navy, a Gap (NYSE: GPS) company, for example, saw year-over-year sales increases, though upscale stores generally sustained declines. The action on the discount side could be an early sign that the consumer is ready to play.

Continue reading Twelve straight months of retail sales declines

Twelve straight months of retail sales declines originally appeared on BloggingStocks on Fri, 04 Sep 2009 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Abercrombie prepares to cut prices

Abercrombie prepares to cut prices originally appeared on BloggingStocks on Mon, 17 Aug 2009 15:30:00 EST. Please see our terms for use of feeds.

Last summer we lamented the price of gas. This year, however, there's at least one upside. Retail sales for June were up 0.6% - substantially better than the 0.4% anticipated - with the gas prices leading the charge. A slight tip in the brutalized auto manufacturer sector helped, as well. This was the largest retail sales increase in five months.

Gas stations benefited from the cost of fuel, adding a bit of pep to a beleaguered retail industry: sales were up 5% year over year, after doing the same in May. And, car dealers had their best month since January: the sales of cars and parts climbed 2.3%. Nonetheless, this corner of the retail world is still off 14.5% from last year. It may have helped last month, but we're still pretty far from a cure.

Continue reading Gas prices drive retail sales rebound, coveted brands still struggle

Gas prices drive retail sales rebound, coveted brands still struggle originally appeared on BloggingStocks on Tue, 14 Jul 2009 16:45:00 EST. Please see our terms for use of feeds.

Continue reading Abercrombie & Fitch finally pulls the plug on Ruehl

Abercrombie & Fitch finally pulls the plug on Ruehl originally appeared on BloggingStocks on Wed, 17 Jun 2009 15:10:00 EST. Please see our terms for use of feeds.

I didn't think the numbers were particularly fetching. Revenues declined nearly 10%, thanks in part to the effects of currency translation (maybe that should be no thanks). Earnings per share came in at $0.35, a massive 30% decline. And same-store sales in North America dipped 10% (take out currency, and the dip was 6%, which still wasn't good).

Continue reading Guess? defeats analysts in Q1: Is the buying overdone?

Guess? defeats analysts in Q1: Is the buying overdone? originally appeared on BloggingStocks on Fri, 05 Jun 2009 14:50:00 EST. Please see our terms for use of feeds.

Anyway, Abercrombie, which shares space at the mall with names like J.C. Penney (NYSE: JCP), American Eagle Outfitters (NYSE: AEO), Gap (NYSE: GPS), and Aeropostale (NYSE: ARO), saw its top line decline by 24%. Same-store sales for the company's entire operations dropped 30%. Same-store sales at the Abercrombie & Fitch brand itself plunged 26%. Earnings per share took a dive of more than 50% to $0.31. It should be noted, however, that there is a pending non-cash charge that will be added to these results at a later time.

Continue reading Abercrombie & Fitch sees huge sales decline in Q1

Abercrombie & Fitch sees huge sales decline in Q1 originally appeared on BloggingStocks on Fri, 15 May 2009 14:40:00 EST. Please see our terms for use of feeds.

Bed Bath & Beyond (NASDAQ: BBBY) reported earnings for the fourth quarter on Tuesday after the market closed its doors. In the after-hours session, the retailer's stock rallied mightily, rising over $3.50, or better than 14%. Let me tell you, that was impressive. As was the beat on the bottom line.

As I wrote in my preview piece, the market was looking for 44 cents per share. Bed Bath & Beyond did its job and delivered 55 cents per share. Net sales decreased by less than 1%. Granted, no one likes to see the top line contract even a little, but considering how bad retail has been, I actually find this to be a small victory. Unfortunately, the same-store sales weren't good. They dropped over 4%. Also, operating profit and cash from operations saw a decline.

Continue reading Bed Bath & Beyond goes beyond the call of duty in Q4

Bed Bath & Beyond goes beyond the call of duty in Q4 originally appeared on BloggingStocks on Wed, 08 Apr 2009 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Aeropostale beats analysts, grows earnings and comps, but stock still sells off ... why?

Aeropostale beats analysts, grows earnings and comps, but stock still sells off ... why? originally appeared on BloggingStocks on Fri, 13 Mar 2009 16:30:00 EST. Please see our terms for use of feeds.

American Eagle Outfitters (NYSE: AEO), whose mall colleagues include Gap (NYSE: GPS), Abercrombie & Fitch (NYSE: ANF), and Urban Outfitters (NASDAQ: URBN), posted Q4 earnings on Wednesday.

The Christmas season was a difficult one for the chain. Sales decreased 9%, and same-store sales declined a whopping 16%. Ouch, sorry to hear that, American Eagle. Earnings came in at 19 cents per share, meeting analysts expectations.

It's the same old story: to move merchandise, things had to be marked down. And that affected profits. Big time.

Continue reading American Eagle meets expectations in Q4, but comps see huge decline

American Eagle meets expectations in Q4, but comps see huge decline originally appeared on BloggingStocks on Thu, 12 Mar 2009 07:00:00 EST. Please see our terms for use of feeds.

J. Crew Group (NYSE: JCG) issued a Q4 report that the market seemed to like. The retailer posted a loss of 22 cents per share on Tuesday after the bell. As I said in my earnings preview, Wall Street was bracing for a loss of 27 cents per share. That five-penny beat helped to send J. Crew's shares up by well over 10% in the after-hours session.

I think the buying was a bit overdone. Sure, I'll give credit where credit is due. Management did beat the analysts and their precious earnings models. How much credit should I give beyond that?

Continue reading J. Crew beats analysts, but the stock is not in fashion to me

J. Crew beats analysts, but the stock is not in fashion to me originally appeared on BloggingStocks on Wed, 11 Mar 2009 07:00:00 EST. Please see our terms for use of feeds.