Green Mountain Coffee Roasters, Titan International, GlaxoSmithKline,
AstraZeneca and Sanofi highlighted as Zacks Bull and Bear of the Day
CHICAGO, Aug. 21, 2013
CHICAGO, Aug. 21, 2013 /PRNewswire/ --Zacks Equity Research highlights Green
Mountain Coffee Roasters, Inc. (Nasdaq:GMCR-Free Report) as the Bull of the
Day and Titan International Inc. (NYSE:TWI-Free Report) as the Bear of the
Day. In addition, Zacks Equity Research provides analysis ontheGlaxoSmithKline
(NYSE:GSK-Free Report), AstraZeneca (NYSE:AZN-Free Report) and Sanofi
Here is a synopsis of all five stocks:
Bull of the Day:
Green Mountain Coffee Roasters, Inc. (Nasdaq:GMCR-Free Report) is back to
being the darling of Wall Street after the NASDAQ announced it would be
joining the NASDAQ-100 on Aug 22. Shares of this Zacks Rank #1 (Strong Buy)
hit new 52-week highs on the news.
This comes on the heels of its fifth earnings beat in a row where the company
also raised full year fiscal 2013 guidance.
Green Mountain Coffee is a specialty coffee maker which also sells the Keurig
Single Cup brewing system. The K-cups are all the rage in the home coffee and
specialty drink categories.
On Aug 7, Green Mountain Coffee reported its fiscal third quarter results
which beat the Zacks Consensus Estimate for the fifth quarter in a row.
Revenue rose 11%, with revenue in the United States jumping 14% year over
year. Canada was soft, however, which some attributed to competition from
other coffee options.
Gross margin grew 720 basis points to 42.1% from 34.9% in the year before.
While the company lowered full year sales guidance to the range of 13%-14%
from its prior guidance of 14%-17%, it raised full year EPS guidance to
$3.19-$3.24 from its previous guidance of $3.05-$3.15.
Bear of the Day:
Titan International Inc. (NYSE:TWI-Free Report) continues to suffer from a
build-up in tire inventory in the farm and construction industry. This Zacks
Rank #5 (Strong Sell) is expected to see a double digit earnings decline in
2013 on tough market conditions.
Titan International supplies wheels, tires and assemblies for off-highway
equipment used in agriculture and earthmoving/construction.
When agriculture and mining was booming, tire sales were too. In 2011, the
farmers took home record income and Titan's earnings jumped 253%.
But excess inventory that has been dropped into the aftermarket from the farm,
construction and mining industries has impacted pricing.
On July 24, Titan reported second quarter results and missed on the Zacks
Consensus by 49%. Earnings were 24 cents compared to the Zacks Consensus
Estimate of 47 cents.
It was Titan's third big miss in the a row even though it had warned on the
year in June.
Sales rose 29.2% to $593.3 million but the North American construction market
saw volumes decrease 25% due to soft construction trends.
Glaxo Flu Vaccine Gets U.S. Approval
GlaxoSmithKline (NYSE:GSK-Free Report) recently announced that the U.S. Food
and Drug Administration (FDA) has cleared its quadrivalent formulation of
intramuscular Flulaval. Flulaval Quadrivalent has been approved for the
prevention of influenza caused by types A and B strains in adults and children
aged 3 years and above.
Flulaval Quadrivalent helps fight against two strains of influenza A and two
strains of influenza B, thus providing it with an edge over the currently
available trivalent Flulaval version, which is only approved for use in
adults. We expect the approval of Flulaval Quadrivalent to enable the company
to solidify its position in the market once it is made available next year.
We note that this is the second intramuscular quadrivalent influenza vaccine
in Galxo's portfolio. In Dec 2012, the FDA approved Fluarix Quadrivalent for
treating adults and children aged 3 years and above. The intramuscular vaccine
is now available to the customers.
Currently approved quadrivalent influenza vaccines include AstraZeneca's
(NYSE:AZN-Free Report) intranasal influenza vaccine FluMist Quadrivalent and
Sanofi's (NYSE:SNY-Free Report) quadrivalent formulation of Fluzone.
Glaxo currently holds a Zacks Rank #3 (Hold). The biggest near-term challenge
for Glaxo will be to replace the revenues that will be lost to generic
competition. Products like Valtrex, Lamictal, Imitrex, Requip, Combivir and
Epivir are already facing declining sales due to intense generic competition.
Going forward, a major part of Glaxo's revenues will be exposed to generic
competition, as products like Pandemrix and Prepandrix are scheduled to lose
exclusivity in the next few quarters.
We believe that the pipeline at Glaxo must deliver to counter the generic
threat. We are impressed by Glaxo's growth-by-acquisition strategy to combat
the loss of revenues due to genericization of key products.
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