The Zacks Analyst Blog Highlights:Pfizer, Zoetis, SunPower, Edison
International and ReneSola
CHICAGO, April 30, 2013
CHICAGO, April 30, 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 Pfizer (NYSE:PFE), Zoetis Inc.
(NYSE:ZTS), SunPower Corp. (Nasdaq:SPWR), Edison International (NYSE:EIX) and
ReneSola Ltd. (NYSE:SOL).
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from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday's Analyst Blog:
Pfizer Likely to Report In-Line Earnings
We expect Pfizer (NYSE:PFE) to report in line first-quarter 2013 results
before the opening bell on Apr 30, 2013.
Factors at Play for 1Q
We expect Pfizer to struggle to post meaningful top-line growth going forward.
The company has entered a challenging operating period with the loss of patent
exclusivity on Lipitor, Norvasc, Protonix, Camptosar and Zoloft. These
products are all facing declining sales due to generic competition. In 2013,
revenues will be hit by about $4 billion due to genericization and the
expiration of a few co-promotion agreements.
While near-term earnings will be driven by cost cutting efforts and share
repurchases, longer-term growth will depend on the success of drug
The efforts of Pfizer notwithstanding, first-quarter 2013 results will likely
continue to be hurt by the genericization. Pfizer spun off its Animal Health
business in Feb 2013, in order to streamline its operations. The spun off
entity is currently trading on the New York Stock Exchange as Zoetis Inc.
(NYSE:ZTS). We note that the Animal Health business generated sales of $1.2
billion in the fourth quarter of 2012 accounting for 7.8% of total revenues.
Pfizer has delivered positive earnings surprises in the last four quarters
with an average beat of 6.26%.
Our proven model does not conclusively show that Pfizer is likely to beat
earnings estimates this quarter. This is because a stock needs to have both a
positive earnings Expected Surprise Prediction (ESP) (Read: Zacks Earnings
ESP: A Better Method) and a Zacks Rank #1, 2 or 3 for this to happen.
Zacks ESP: The ESP, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the
Most Accurate Estimate and Zacks Consensus Estimate currently stand at 55
Zacks Rank #3 (Hold): Pfizer's Zacks Rank #3 lowers the predictive power of
ESP because the Zacks Rank #3 when combined with an ESP of 0.00% indicates the
possibility of in line results.
SunPower Begins Solar Project Construction
SunPower Corp. (Nasdaq:SPWR) in collaboration with MidAmerican Solar has begun
the construction of the Antelope Valley Solar Projects (AVSP). The
579-megawatt ("MW") solar projects consist of two co-located projects in Kern
and Los Angeles counties in Calif.
These big-scale projects are owned by MidAmerican Solar. Meanwhile, SunPower
is the engineering, procurement and construction contractor. Under a multiyear
services agreement, SunPower will also provide operations and maintenance
services for the plants.
Together these projects form the largest solar power development that is under
construction. On an average, these projects have the capacity to generate
electricity that is sufficient to power approximately 400,000 homes. Per two
long-term power purchase contracts, the renewable energy generated from these
solar farms will be sold to Southern California Edison, a subsidiary of Edison
The energy generated will eradicate approximately 775,000 metric tons of
carbon dioxide annually. This is almost equal to removing approximately 3
million cars from the road over the next 20 years.
SunPower is installing the SunPower Oasis Power Plant product at the sites.
Oasis Power Plant product is a fully integrated, modular solar technology
requiring minimal land use. The Power Plant product uses high-efficiency
SunPower solar panels mounted on SunPower T0 Trackers. The T0 Trackers boost
energy capture by up to 25% because of the strategic placement of solar
Besides being eco-friendly, the projects will fulfill corporate social
responsibility. During the three-year construction period, approximately 650
workers will be employed. Moreover, it will contribute more than $500 million
to the regional economy. The construction of the projects is expected to be
completed by the end of 2015.
SunPower Corporation designs, develops, manufactures, markets and sells
high-performance solar electric power technology products, systems and
services worldwide for residential, commercial and utility-scale power plant
The company is also currently working on the development of solar projects.
Only a few days back SunPower commenced the construction of twin solar
projects in Yolo County, Calif. The company expects the projects to produce
5.8 MW of emission-free solar power for county facilities.
Going forward, we like the company's diversified channel strategy with a
strong presence in the residential and commercial market, along with its
status as a conversion efficiency leader. Over the near term, however, we are
apprehensive about the higher cost structure of the company compared to its
peers, the glut of solar panels in the market, lower average selling prices,
subsidy roll-back risk in Europe, rising competition, financial stability of
its customers and foreign exchange risk.
SunPower carries a Zacks Rank #3 (Hold). One stock worth considering is
ReneSola Ltd. (NYSE:SOL) with a Zacks Rank #2 (Buy).
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