The Zacks Analyst Blog Highlights:Superior Industries, Ford Motor, General
Motors, Oshkosh and Fred's
CHICAGO, March 11, 2013
CHICAGO, March 11, 2013 /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 Superior Industries (NYSE:SUP),
Ford Motor Co. (NYSE:F), General Motors Company (NYSE:GM), Oshkosh Corporation
(NYSE:OSK) and Fred's Inc. (Nasdaq:FRED).
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday's Analyst Blog:
Superior Cut to Underperform
On Mar 7, we downgraded cast aluminum road wheels manufacturer Superior
Industries (NYSE:SUP) to Underperform, based on the company's significant
customer concentration risk from the Detroit Big Three and lower-than-expected
fourth quarter 2012 earnings.
Why the Downgrade?
Superior Industries' profits declined to $2.7 million or 10 cents per share in
the fourth quarter of 2012 from $12.0 million or 44 cents in the same quarter
of 2011. Earnings per share were substantially lower than the Zacks Consensus
Estimate of 26 cents per share.
Revenues in the quarter fell 3% to $210.0 million due to flat sales volume and
a reduction in average selling price due to lower aluminum prices.
Following the release of the fourth quarter results, the Zacks Consensus
Estimate for 2013 decreased 17.5% to 85 cents per share. The Zacks Consensus
Estimate for 2014 remained flat at 95 cents per share. Currently, Superior
Industries retains a Zacks Rank #5 (Strong Sell).
Superior Industries remains under pressure due to customer concentration. The
Big Three customers of the company -- Ford Motor Co. (NYSE: F), General Motors
Company (NYSE:GM) and Chrysler -- constitute 75% of its total wheel sales.
Any fluctuation in demand from them will adversely affect the company.
The company faces increased competition in terms of price, technology, product
quality, delivery and overall customer service. In addition, the automotive
component supply industry is highly competitive in nature. Superior faces
competition from the well established companies as well as from the newly
formed companies in low-cost foreign markets of China.
Other Stocks to Consider
Oshkosh Corporation (NYSE:OSK), a Zacks Rank #1 (Strong Buy) stock, is
performing well in the industry where Superior Industries operates.
Fred's Sales Slip in January
Recently, Fred's Inc. (Nasdaq:FRED) reported total sales and comparable sales
for Feb 2012. While total sales increased marginally from the comparable
period in the prior year, comparable sales declined. Deferred sales related to
the spring layaway program would have added 60 bps of growth to both total and
comparable store sales.
Comparable store sales for the month fell 1.5% compared to a slip of 0.7% in
the year-ago month. The decline was attributed to lower transactions due to
economic headwinds, ongoing tax processing and refunds, and higher payroll
Comparable store sales for general merchandise was however positive for the
second straight quarter, helped by new products in auto/hardware and strength
at its discount tobacco shop. Pharmacy department sales saw positive script
growth that was offset by the ongoing brand-to-generic shift in the pharmacy
industry, which affected comparable sales by 280 basis points.
Total sales for Feb 2013 marginally increased to $159.2 million compared to
$159.0 million a year ago.
The company opened one store and an Xpress pharmacy during the month.
Keeping in view higher insurance and operating cost and lowering of prices on
basic and consumable products, the company lowered its fourth quarter 2012
earnings to the range of 16 cents to 21 cents per share compared to the
previously announced range of 25 cents to 31 cents announced in Jan 2013.
Want more from Zacks Equity Research? Subscribe to the free Profit from the
Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative
analysis to help investors know what stocks to buy and which to sell for the
Continuous coverage is provided for a universe of 1,150 publicly traded
stocks. Our analysts are organized by industry which gives them keen insights
to developments that affect company profits and stock performance.
Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the
latest analysis from Zacks Equity Research. Subscribe to this free newsletter
Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results. Amongst his
many accomplishments was the formation of his proprietary stock picking
system; the Zacks Rank, which continues to outperform the market by nearly a 3
to 1 margin. The best way to unlock the profitable stock recommendations and
market insights of Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady flow of
Profitable ideas GUARANTEED to be worth your time! Register for your free
subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance
numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any investments.
Nothing herein should be construed as an offer or solicitation to buy or sell
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.
Press spacebar to pause and continue. Press esc to stop.