The Zacks Analyst Blog Highlights: Telefonica, Dell, France Telecom, Vodafone
Group and CME Group
CHICAGO, May 13, 2013
CHICAGO, May 13, 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 Telefonica S.A. (NYSE:TEF), Dell
Inc. (Nasdaq:DELL), France Telecom (NYSE:FTE), Vodafone Group Plc.
(Nasdaq:VOD) and CME Group Inc. (Nasdaq:CME).
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:
Telefonica Signs Deal with Dell
Spanish telecom operator, Telefonica S.A. (NYSE:TEF) has struck a deal with
Dell Inc. (Nasdaq:DELL) to offer mobile connectivity solutions for its Windows
7 and Windows 8-based devices throughout Europe by means of Dell NetReady
Dell is already using Telefónica's mobile service. Therefore by connecting to
Dell NetReady technology, the customers can easily connect their devices to
the Telefónica's pay-as-you-go Internet plan.
The new bundled service, will serve corporate users better as they can easily
access the network whether in office or away by just a click of a button. The
plan is also made flexible starting from 30 minutes up to 1 a month with two
different rate plans.
Telefonica is facing intense competition from the likes of France Telecom's
(NYSE:FTE) Orange mobile brand and Vodafone Group Plc. (Nasdaq:VOD). In order
to safeguard its position in the European region the company is continuously
upgrading its 3G mobile broadband networks –– High Speed Packet Access Plus
(HSPA+) and Dual Cell HSPA. The company is further working to deploy LTE
services in urban areas and also taking initiatives to adopt new technologies
like Voice over LTE (VoLTE) to drive its top line.
The company has undertaken several efforts to enhance efficiency across
European markets such as removal of handset subsidies in Spain, gradual
reduction of subsidies in the U.K., network sharing agreement in the U.K. and
Mexico and redundancy program in Spain. Such initiatives would lead to further
savings and boost profit in the coming years.
Telefonica S.A. currently has a Zacks Rank #3 (Hold).
CME Group Upped to Neutral
We have upgraded derivative exchange – CME Group Inc. (Nasdaq:CME) to Neutral
based on some improvement in volumes and strict expense control in the
first-quarter of 2013. However, top line continued to remain weak.
Why the Upgrade?
Estimates for CME Group have witnessed a marginal decline since its
first-quarter 2013 results on May 2. The company's first-quarter earnings of
73 cents a share were at par with the Zacks Consensus Estimate, while total
revenue of $718.6 million topped the Zacks Consensus Estimate of $714 million.
Nonetheless, both earnings and revenues lagged the year-ago results by 8.8%
and 7.2%, respectively. Overall, CME Group delivered positive earnings
surprises in all of the last 4 quarters with an average beat of 5%.
While average daily volume inched up 1% year over year, total operating
expenses declined 3.2% and non-operating expenses were flat. However, clearing
and transaction fees, accounting for about 83% of the total revenue, decreased
4.5% year over year, whereas market data and information services decelerated
29.2%. A higher tax rate also marred the bottom line.
Following the release of the first-quarter results, the Zacks Consensus
Estimate for 2013 dipped 0.6% to $3.13 per share. The Zacks Consensus Estimate
for 2014 also inched down 0.8% to $3.62 per share. With the Zacks Consensus
Estimates for both 2013 and 2014 going only marginally down, the company now
has a Zacks Rank #3 (Hold).
What is the cause for the strong positive bias on the company? While the top
line is facing challenges from the macroeconomic volatility and intense
competitiveness and will recover at its pace, CME Group is initiating a
disciplined expense management. Total expenses are further projected to be
below 5% for 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.