24/7 Wall St. » MO

World’s Top Brands Led By Apple, IBM, Google

Administrator — Tue, 22 May 2012 12:04:20 +0000

You may or may not have heard of Millward Brown, but you might not be surprised who they ranked as the world’s top brand: Apple Inc. (NASDAQ: AAPL) took the pole position in 2012. Millward Brown’s 2012 BrandZ Top 100. The study took into consideration the following: Value, Renewal, Relevance, Reputation, Reimagine, Brand Contribution, Personality, Harder BRICs, Disruption, Technology, Digital, Health & Wellness, and Entitlement

Of the top brands, the following came in after Apple:

2. International Business Machines Corporation (NYSE: IBM)

3. Google Inc. (NASDAQ: GOOG)

4. McDonald’s Corporation (NYSE: MCD)

5. Microsoft Corporation (NASDAQ: MSFT)

6. Coca-Cola Corporation (NYSE: KO)

7. Marlboro of Altria Group Inc. (NYSE: MO)

8. AT&T, Inc. (NYSE: T)

9. Verizon Communications, Inc. (NYSE: VZ)

10. China Mobile Limited (NYSE: CHL)

11. General Electric Co. (NYSE: GE)

The ‘Top Riser” from 2011 to 2012 was Facebook, Inc. (NASDAQ: FB) with a 74% rise

The full Millward Brown study on these brands gets broken down into segments such as industry, brand growth, geographic, and sectors.

JON C. OGG

Filed under: Accounting, Compensation, Consumer Electronics, Consumer Goods, Economy, Editor's Picks, Product Review, Research, Retail, Shareholder Issues Tagged: AAPL, CHL, FB, GE, GOOG, IBM, KO, MCD, MO, MSFT, T, VZ

Investors Seeking Defensive Stocks Where 3% to Over 5% Dividends Rule!

Administrator — Mon, 14 May 2012 17:14:54 +0000

A stock market that sells off eight of nine days is not a good market. Even the Facebook IPO is being viewed as a one-off item rather than a systemic item which will make the market stronger. With “Sell in May and go away!” remaining prevalent and with Europe in meltdown as Asia slows, the big question is where to hide. Some investors just refuse to accept the floor-level rates of CDs and Treasury bills and Treasury notes, so they go hide out in the defensive stocks like tobacco, consumer staples, basic level food, utilities, big-pharma, and maybe even those high-yields in telecom. This is a market where defensive stocks should rule the roost.

People are going to buy Coke and Pepsi, most likely, in almost any economy. Pepsico, Inc. (NYSE: PEP) is actually up 0.6% at $67.23 against a 52-week high of $71.89; Coca-Cola Company (NYSE: KO) is down 0.6% at $76.95 against a 52-week high of $77.82. With yields of about 3% on average, these pay about the same as the 30-Year Treasury’s long-bond. The beer segment remains uncorrelated to defensive stocks as it did last week (in part due to currencies): Anheuser-Busch InBev SA (NYSE: BUD) is down by 0.7% at $71.43 and Molson Coors Brewing Company (NYSE: TAP) is down 1.2% at $40.81. Even the best water utility in America via American Water Works Company, Inc. (NYSE: AWK) is down another 1% $33.99 against a 52-week and all-time high of $34.89.

Food is supposed to be defensive. You gotta eat, right? McDonald’s Corporation (NYSE: MCD) is down almost 0.4% at $91.55 and getting further and further away from that $102.22 all-time high recently seen. The rest of the defensive food segment is up to mixed as food is defensive and with dividends:

Kraft Foods Inc. (NYSE: KFT) is up 0.4% at $39.20 with a 3% yield that challenges the long-bond;
ConAgra Foods, Inc. (NYSE: CAG) is down 0.2% at $25.67 with a 3.7% yield that beats the long-bond;
Campbell Soup Co. (NYSE: CPB) is up 0.25% at $34.49 with a 3.4% yield that beats the long-bond;
Hormel Foods Corporation (NYSE: HRL) is down only 0.1% at $29.08 but its 2.1% yield is ‘only’ paying what the 10-year has been paying recently.

Smoking has those nice 5%-plus yields for the defensive tobacco sector: Altria Group Inc. (NYSE: MO) is down only 0.1% at $31.75 against a 52-week high of $32.62; Vector Group Ltd. (NYSE: VGR) is down 0.5% at $16.73; and Reynolds American Inc. (NYSE: RAI) is down only 0.2% at $40.41 against a high of $42.81.

Diapers, toothpaste, deodorant, and shaving… consumer products are acting defensive: Procter & Gamble Co. (NYSE: PG) is down only 0.3% at $63.50 with a 3.5% yield; Kimberly-Clark Corporation (NYSE: KMB) is up by 0.3% at $79.62 with a 3.7% yield; Colgate-Palmolive Co. (NYSE: CL) is down 0.1% at $99.20 but it only pays about 2.5% for a dividend yield.

Drug and medical is mixed to positive: Merck & Co. Inc. (NYSE: MRK) is up by over 0.8% at $38.35 with its 4.4% yield; Pfizer Inc. (NYSE: PFE) is down only $0.01 at $22.64 with its 3.9% yield; and Johnson & Johnson (NYSE: JNJ) is down 0.5% at $64.00 with its 3.8% yield.

Those smartphones and telephones are not acting defensive at all today with Verizon Communications Inc. (NYSE: VZ) down 0.9% at $40.80 with its 5% yield and with AT&T, Inc. (NYSE: T) down 0.7% at $33.36 with a 5.4% yield.

Some investors are willing to suffer from the near-zero return of Treasuries, while others are going to try to look for the safest of stocks to seek safe and steady dividends. The DJIA is down 0.7% and the S&P 500 was down 0.6% at last look. Both are actually much better than what we were looking at just two hours or so ago.

JON C. OGG

Filed under: Defensive Stocks, Dividend Tagged: AWK, BUD, CAG, CL, CPB, HRL, JNJ, KFT, KMB, KO, MCD, MO, MRK, PEP, PFE, PG, RAI, T, TAP, VGR, VZ

The Market Where Defensive Shares Are Working Again (PEP, KO, BUD, TAP, AWK, MCD, KFT, CAG, CPB, HRL, MO, VGR, RAI, PG, KMB, CL, MRK, PFE, JNJ, T, VZ)

Administrator — Tue, 08 May 2012 16:07:03 +0000

Blame whatever you want. A weaker U.S. economy, a weakening and flailing Europe, a move to socialism in France and Greece, a weaker BRIC and emerging market story, commodity prices and on and on… Commodity prices and their tracking shares are getting hosed today. Why does the “Sell in May and go away!” profile often coincide with sell-offs so well?

After the weakness in the broad market has the DJIA down 140 points (or -1.1%) and the S&P 500 Index down 15 points or 1.1%, it turns out that most of the defensive stock sector leaders are holding up far better than the broad market in our go-to defensive stock portfolio. We have taken a look at each of these with share price snapshots right before Noon EST.

No matter what, you gotta drink! Pepsico, Inc. (NYSE: PEP) is down 0.5% at $66.28 against a 52-week high of $71.89; Coca-Cola Company (NYSE: KO) is down 0.4% at $76.97 against a 52-week high of $77.82. With yields of about 3% on average, these are now challenging the 30-Year Treasury yields. The beer segment is not acting defensive as it should, perhaps because they are foreign issues now with more currency risks: Anheuser-Busch InBev SA (NYSE: BUD) and Molson Coors Brewing Company (NYSE: TAP) are not acting very defensive with price corrections of 3% and 2$ respectively.

Perhaps the most defensive you can get is water, and the top water utility is American Water Works Company, Inc. (NYSE: AWK) with a premium valuation. This water leader is down 0.8% at $33.73 against a 52-week and all-time high of $34.89.

Food is supposed to be defensive, although a drop of 1.5% in McDonald’s Corporation (NYSE: MCD) to $94.10 is causing some added stress in what was the darling of the DJIA in 2011. The rest of the defensive food segment seems to be less damaged when you evaluate the moves: Kraft Foods Inc. (NYSE: KFT) is down only 0.4% at $39.11; ConAgra Foods, Inc. (NYSE: CAG) is down 0.7% at $25.52; Campbell Soup Co. (NYSE: CPB) is down only 0.3% at $33.97; and Hormel Foods Corporation (NYSE: HRL) is down only 1 penny at $28.92 as the world is getting excited about Spam again.

Smoking is defensive again and the tobacco stocks are holding up much better than the broad market with those 5% and higher dividends: Altria Group Inc. (NYSE: MO) is down only $0.3% at $32.10 against a 52-week high of $32.62; Vector Group Ltd. (NYSE: VGR) is down only 0.2% at $16.88; and Reynolds American Inc. (NYSE: RAI) is down only 0.2% at $40.18 against a high of $42.81.

Shaving, diapers, toilet paper, and other consumer products are acting defensive with some gains on a weak day. Procter & Gamble Co. (NYSE: PG) is trading up $0.11 at $64.36 and Kimberly-Clark Corporation (NYSE: KMB) is up $0.08 at $79.08 with KMB challenging the 52-week high. Colgate-Palmolive Co. (NYSE: CL) is down ‘only’ 0.5% at $99.10 against a 52-week high of $100.81.

Drug and medical is holding up on the consumer end with losses look far less than the broader market: Merck & Co. Inc. (NYSE: MRK) is down 0.35% at $38.40; Pfizer Inc. (NYSE: PFE) is down 0.3% at $22.38; and Johnson & Johnson (NYSE: JNJ) is down the least with a drop of 0.2% at $64.65 against a 52-week high of $68.05.

Those smartphones and telephones are somewhat defensive, and those 5%-plus yields sure shield investors who are worried about chasing the hottest growth stocks. Verizon Communications Inc. (NYSE: VZ) is down only 1-penny at $40.52 with a 5% dividend yield and AT&T, Inc. (NYSE: T) is actually up 0.2% at $33.08 with a yield of about 5.4%.

When investors want safety and when the Treasury yield is so low on the longer-term Treasury market, many investors turn to the safety of the higher dividends and safer stocks that are defensive. Greece and the rest of PIIGS may fall again, but the logic is that U.S. consumers still have to eat, drink, shave, put on deodorant, and tend to stick with their core vices as best as they can.

JON C. OGG

Filed under: Consumer Goods, Defensive Stocks, Dividend, Drug companies, Food, Telecom, Tobacco Tagged: AWK, BUD, CAG, CL, CPB, HRL, JNJ, KFT, KMB, KO, MCD, MO, MRK, PEP, PFE, PG, RAI, T, TAP, VGR, VZ

24/7 Wall St. Closing Bell (GD, ABB, HOG, COP, S, ALU, MO, PEP, TLAB, XOM, AET, BMY, BG, JBLU, LIZ, MJN, REGN, SWY, SWC, TASR, UPS, YNDX, NRGY, SPH, LEAP, AKAM)

Paul Ausick — Thu, 26 Apr 2012 20:06:31 +0000

Markets opened a few ticks lower this morning after a poor report on new claims for unemployment benefits in the US (our coverage here). The report that pending home sales jumped 4.1% lit a fire under investors and pushed equities higher (our coverage here). The EIA report on natural gas supplies held gas prices higher although they’ve dropped back by late afternoon (our coverage here). Yields on 7-year US Treasury notes were at a record low following Fed Chairman Ben Bernanke’s clarification of what “exceptionally low” interest rates mean (our coverage here). The US dollar index fell today, now down -0.17% at 78.932. The GSCI commodity index is up 0.04% at 677.57, with commodities mixed on the slightly weaker dollar. WTI crude oil closed up 0.4% at $104.55/barrel, and Brent crude trades up 0.65% at $119.89/barrel. Gold settled up 1.1% today, at $1,660.50/ounce.

The unofficial closing bells put the DJIA up nearly 114 points to 13,204.70 (0.87%), the NASDAQ rose nearly 21 points (0.69%) to 3,050.61, and the S&P 500 rose 0.67% or more than 9 points to 1,399.99.

There were several analyst upgrades and downgrades today, including General Dynamics Corp. (NYSE: GD) cut to ‘equal-weight’ at Morgan Stanley; ABB Ltd. (NYSE: ABB) cut to ‘neutral’ at JPMorgan; Harley-Davidson Inc. (NYSE: HOG) raised to ‘overweight’ at Barclays; ConocoPhillips (NYSE: COP) raised to ‘neutral’ at Macquarie; and Sprint Nextel Corp. (NYSE: S) maintained as ‘hold’ at Argus.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Alcatel-Lucent S.A. (NYSE: ALU) is down -16.9% at $19.71 (our coverage here); Altria Group Inc. (NYSE: MO) is up 0.9% at $31.96 (our story here); Pepsico (NYSE: PEP) is down -0.3% at $66.44 (our story here); Tellabs Inc. (NASDAQ: TLAB) is down -5.1% at $3.83 (our coverage here); Exxon Mobil Corp. (NYSE: XOM) is down -0.8% at $86.13 (our coverage here); Aetna Inc. (NYSE: AET) is down -8.4% at $45.22; Bristol-Myers Squibb Co. (NYSE: BMY) is down -1.7% at $33.72; Bunge Ltd. (NYSE: BG) is down -2.6% at $65.69; JetBlue Airways Corp. (NASDAQ: JBLU) is down -0.1% at $4.64; Liz Claiborne Inc. (NYSE: LIZ) is up 9.4% at $13.87; Mead Johnson Nutrition Co. (NYSE: MJN) is up XX% at $XX; Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) is up 4% at $86.38 after posting a new 52-week high of $87.26n earlier today; Safeway Inc. (NYSE: SWY) is down -2.8% at $21.00; Stillwater Mining Co. (NYSE: SWC) is down -4.6% at $10.69; TASER International Inc. (NASDAQ: TASR) is up 5.7% at $4.39; United Parcel Service Inc. (NYSE: UPS) is down -1.8% at $78.25; and Yandex N.V. (NASDAQ: YNDX) is down -5% at $23.31.

Other standouts from today include the following stocks:

Inergy L.P. (NYSE: NRGY) is up 17% at $19.71. The company is being acquired by Suburban Propane Partners LP (NYSE: SPH). More coverage here.

Leap Wireless International Inc. (NASDAQ: LEAP) is down -20.2% at $6.16. The wireless carrier fell sharply on disappointing quarterly results. More coverage here.

Akamai Technologies Inc. (NASDAQ: AKAM) is down -14.8% at $33.03. The technology provider beat estimates but issued weak guidance.

Stay tuned for Friday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – GDP report
8:30 a.m. – Employment cost index
9:55 a.m. – Reuters/University of Michigan consumer sentiment index

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: ABB, AET, AKAM, ALU, BG, BMY, COP, GD, HOG, JBLU, LEAP, LIZ, MJN, MO, NRGY, PEP, REGN, S, SPH, SWC, SWY, TASR, TLAB, UPS, XOM, YNDX

Altria Doesn’t Light it Up (MO, RAI, LO, PM)

Paul Ausick — Thu, 26 Apr 2012 11:43:15 +0000

Altria Group Inc. (NYSE: MO), the maker of Marlboro cigarettes and other products, reported earnings this morning that did not match expectations. The consensus estimate for EPS was $0.49 and the revenue estimate came in at $4.01 billion. Last year the company posted EPS of $0.44 on revenue of $3.94 in its first quarter.

Adjusted EPS came in at $0.49, right on the estimate, but revenue of $3.98 billion was low. Total sales came in at $5.1 billion, but tobacco-related settlement charges are backed out. Earlier this week Reynolds American Inc. (NYSE: RAI) and Lorillard Inc. (NYSE: LO) reported soft earnings for the quarter. Only Altria’s sister company, Philip Morris International Inc. (NYSE: PM) beat earnings estimates in the first quarter.

Altria, which also owns about 27% of brewing giant SABMiller, did not get any help from beer sales in the quarter. In all, SABMiller contributed $0.01 to Altria’s adjusted EPS.

And as with Reynolds and Lorillard, cigarette sales volume was down — in Altria’s case -2.5%. (Yes, we know the joke.) Marketing and promotional costs were also higher. Net revenues were down -0.8% year-over-year although operating margins rose 1.5% to 41%.

The company reaffirmed full-year adjusted EPS guidance of $2.17-$2.23. The consensus estimate is $2.20. In the first quarter, share buybacks totaled about $294 million and the company has approximately $378 million remaining of its authorized $1 billion share buyback program. Altria boasts a dividend yield of 5.1%, paying an annual dividend of $1.64/share.

Shares of Altria are up 0.35% in the pre-market at $31.80 in a 52-week range of $23.20-$32.10.

Paul Ausick

Filed under: Consumer Goods, Earnings, Tobacco Tagged: LO, MO, PM, RAI

Reynolds American: Not Smokin’ (RAI, MO, PM, LO, BTI)

Paul Ausick — Tue, 24 Apr 2012 13:04:04 +0000

Tobacco merchant Reynolds American Inc. (NYSE: RAI) reported first quarter earnings this morning, and posted a clear miss. Adjusted EPS came in at $0.63, lower than the consensus estimate of $0.65. Revenues totaled $1.93 billion, lower than the $1.99 billion in the same period a year ago, and lower than the consensus estimate of $1.98 billion.

Last week Philip Morris International Inc. (NYSE: PM) reported better than expected earnings and revenues, and Altria Group Inc. (NYSE: MO), Philip Morris’s US counterpart, reports earnings on Wednesday. Lorillard Inc. (NYSE: LO) reports earnings tomorrow, and British American Tobacco plc (AMEX: BTI) has not yet scheduled its earnings release.

Reynolds, like Philip Morris, was able to raise prices during the first quarter, but unlike its competitor, Reynolds experienced a decline in volume. However, Reynolds expects to meet its existing full-year adjusted EPS guidance of $2.91-$3.01.

Lorillard, which reports earnings tomorrow, is expected to post EPS of $2.00 on revenue of $1.2 billion. Altria, reporting on Wednesday, is expected to post EPS of $0.49 on revenue of $4.01 billion.

All the cigarette makers are facing a packaging challenge that is set to take effect in Australia by the end of this year. Packaging would be standardized with no logos allowed. Instead, makers would be required to include graphic images of the diseases caused by cigarettes along with the brand name in a generic type style. British American Tobacco, and others, are challenging the Australian law, and all could soon be challenging similar laws in New Zealand, Canada, Belgium, Iceland, and France.

Far worse, from the tobacco companies’ point of view, would be the adoption of similar laws in the emerging markets of Asia, where sales are growing. There has been no evidence that such laws will be enacted, but the tobacco companies are keeping a close eye on developments.

From an investors point of view, the tobacco companies are particularly attractive for their dividend yields. Reynolds yields 5.40%, Altria yields 5.10%, Philip Morris yields 3.50%, Lorillard yields 4.50%, and British American yields 5.30%.

Shares of Reynolds are off about -1.7% in the pre-market at $41.00 in a 52-week range of $31.82-$42.81.

Paul Ausick

Filed under: Consumer Goods, Earnings Tagged: BTI, LO, MO, PM, RAI

24/7 Wall St. Closing Bell (AET, MO, MWW, RAI, ZNGA, DRI, DLGC, ACN, BONE, WTSLA, KBH, KITD, CPWM, BTU, PLUG)

Paul Ausick — Fri, 23 Mar 2012 20:06:58 +0000

Markets opened about flat this morning but lost ground almost immediately as new home sales data came in weaker than expected. Then came a report that Iranian crude shipments were falling as a result of US-led sanctions, and that pulled the major indexes into positive territory (our coverage here). By the last hour of trading the indexes were up slightly. The US dollar index fell today, now down -0.47% at 79.360. Commodities were generally higher on the dollar weakness. WTI crude oil closed up 1.4% at $106.87/barrel, and Brent crude trades up 1.56% at $125.06/barrel. Gold settled up 1.2% today, at $1,662.40/ounce, finishing the week up 0.4%..

The unofficial closing bells put the DJIA up nearly35 points to 13,080.73 (0.27%), the NASDAQ rose nearly 5 points (0.15%) to 3,067.92, and the S&P 500 rose 0.31% ormore than 4 points to 1,397.11.

There were several analyst upgrades and downgrades today, including Aetna Inc. (NYSE: AET) cut to ‘neutral’ at Goldman Sachs; Altria Group Inc. (NYSE: MO) raised to ‘outperform’ at Wells Fargo; Monster Worldwide Inc. (NYSE: MWW) raised to ‘outperform’ at Baird; Reynolds Aluminum Inc. (NYSE: RAI) cut to ‘market perform’ at Wells Fargo; and Zynga Inc. (NASDAQ: ZNGA) started as ‘underperform’ at Needham.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Darden Restaurants Inc. (NYSE: DRI) is down -1.9% at $50.85; Dialogic Inc. (NASDAQ: DLGC) is up almost 95% at $1.40; Accenture plc (NYSE: ACN) is up 2% at $64.79 after posting a new 52-week high of $64.88 earlier today; Bacterin International Holdings Inc. (NASDAQ: BONE) is down -26% at $2.49; and Wet Seal Inc. (NASDAQ: WTSLA) is down -7.9% at $3.27.

Other standouts from today include the following stocks:

KB Home (NYSE: KBH) is down more than 9% at $10.20. The homebuilder posted weak earnings and said that orders were down. More coverage here.

KIT Digital Inc. (NASDAQ: KITD) is down more than -23% at $6.25 after posting a new 52-week low this morning of $5.99. The video technology company is going through a management shake-up. More coverage here.

Cost Plus Inc. (NASDAQ: CPWM) is up more than 16% at $18.62 after hitting a new 52-week high of $18.98 earlier today. The company reported good earnings and offered an upbeat forecast. More coverage here.

Peabody Energy Corp. (NYSE: BTU) is down about -0.50% at $30.39. The coal miner said estimates would come in at the lower end of the forecast range. More coverage here.

Plug Power Inc. (NASDAQ: PLUG) is down more than -4% at $1.35. The company had a secondary offering of 1.95 million shares today. More coverage here.

Stay tuned for Monday. Federal Reserve Chairman Ben Bernanke and Philadelphia Fed President Charles Plosser are giving speeches. We have also noted the following events on the schedule (all times Eastern):

8:30 a.m. – Chicago Fed national activity index
10:00 a.m. – Pending home sales index
10:30 a.m. – Dallas Fed manufacturing survey
11:30 a.m. – 3- and 6-month Treasury bill auction

Have a great weekend!

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: ACN, AET, BONE, BTU, CPWM, DLGC, DRI, KBH, KITD, MO, MWW, PLUG, RAI, WTSLA, ZNGA

Top Analyst Upgrades & Downgrades (AET, MO, CVH, CBST, DFS, EXM, HFC, MWW, RAI, XLNX, ZNGA)

Administrator — Fri, 23 Mar 2012 12:20:43 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Friday.

Aetna Inc. (NYSE: AET) Cut to Neutral at Goldman Sachs.

Altria Group, Inc. (NYSE: MO) Raised to Outperform at Wells Fargo.

Coventry Health Care, Inc. (NYSE: CVH) Raised to Buy at Goldman Sachs.

Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) Started as Buy at ThinkEquity.

Discover Financial Services (NYSE: DFS) Raised to Conviction Buy List at Goldman Sachs; named Bull of the Day at Zacks.

Excel Maritime Carriers (NYSE: EXM) Cut to Underperform as Bear of the Day at Zacks.

HollyFrontier Corporation (NYSE: HFC) named as value stock of the day at Zacks.

Monster Worldwide, Inc. (NYSE: MWW) Raised to Outperform at Baird.

Reynolds American Inc. (NYSE: RAI) Cut to Market Perform at Wells Fargo.

Xilinx Inc. (NASDAQ: XLNX) Cut to Hold at Auriga.

Zynga Inc. (NASDAQ: ZNGA) Started as Underperform at Needham.

If you enjoyed the top analyst upgrades and downgrades, you can join our free email newsletter that includes analyst summaries each morning sent right to your inbox. We also cover top issues such as IPOs, special financial exclusives, mergers and more. Sign up in the box below.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: AET, CBST, CVH, DFS, EXM, HFC, MO, MWW, RAI, XLNX, ZNGA

Top Analyst Upgrades & Downgrades (MO, AMZN, UHAL, AMLN, ACI, CAJ, CMCSA, DE, DLR, ENS, EQIX, INCY, LO, WFR, NWL, NVDA, PM, RENN)

Administrator — Thu, 16 Feb 2012 13:11:40 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Thursday morning.

Altria Group Inc. (NYSE: MO) Started as Hold at Jefferies.
Amazon.com Inc. (NASDAQ: AMZN) Cut to Equal-weight at Morgan Stanley.
AMERCO, Inc. (NASDAQ: UHAL) named as Bull of the Day at Zacks.
Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) Started as Outperform with $22 target at Credit Suisse.
Arch Coal, Inc. (NYSE: ACI) named as Bear of the Day at Zacks.
Canon, Inc. (NYSE: CAJ) Cut to Neutral at Credit Suisse.
Comcast Corporation (NASDAQ: CMCSA) Reiterated Buy and raised target to $37 at BofA/ML.
Deere & Co. (NYSE: DE) Cut to Market Perform Wells Fargo.
Digital Realty Trust, Inc. (NYSE: DLR) started as Overweight with $76 target at Morgan Stanley.
EnerSys Inc. (NYSE: ENS) named as Value Stock of the Day at Zacks.
Equinix, Inc. (NASDAQ: EQIX) Reiterated Buy with $155 target at BofA/ML.
Incyte Corporation (NASDAQ: INCY) Cut to Equal-weight at Morgan Stanley.
Lorillard, Inc. (NYSE: LO) Started as Buy at Jefferies.
MEMC Electronic Materials, Inc. (NYSE: WFR) Raised to Hold at Jefferies.
Newell Rubbermaid, Inc. (NYSE: NWL) Reiterated Buy and raised target to $24 at BofA/ML.
NVIDIA Corporation (NASDAQ: NVDA) Cut to Neutral at BofA/ML.
Philip Morris International Inc. (NYSE: PM) Started as Hold at Jefferies.
Renren Inc. (NYSE: RENN) Reinstated as Neutral at Credit Suisse.

If you enjoyed the top analyst upgrades and downgrades, you can sign up in the box below to join our morning email list to receive news directly in your inbox each morning. We include major analyst upgrades and downgrades, IPO and M&A news, special situation developments, observations on Warren Buffett and key market gurus, as well as special exclusive feature stories.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ACI, AMLN, AMZN, CAJ, CMCSA, DE, DLR, ENS, EQIX, INCY, LO, MO, NVDA, NWL, PM, RENN, UHAL, WFR

Marlboro Country Getting Smaller (MO)

Paul Ausick — Fri, 27 Jan 2012 14:11:52 +0000

Altria Group Inc. (NYSE: MO), makers of Marlboro cigarettes and many other branded tobacco products, reported fourth quarter earnings this morning. Adjusted EPS came in at $0.50, a penny better than estimates. Revenue totaled $4.34 billion, also above the consensus estimate of $4.23 billion.

Net income for the quarter was down by -9% year-over-year at $836 million compared with $919 million in the same quarter a year ago. Earnings were boosted by the company’s cost cutting, which met a $1.5 billion reduction goal in the third quarter of 2011. The company is looking for an additional $400 million cuts by the end of 2013.

The company’s market share fell -0.7% to 41.6% of the total US market.

Altria announced the retirement of the company’s chairman and CEO, effective in May. The new chairman and CEO will be Martin Barrington, a 19-year veteran of the company.

The company’s 2012 guidance calls for full-year EPS of $2.14-$2.20, not including a $0.03/share adjustment. Analysts had a consensus estimate of $2.19. EPS for 2011 totaled $2.05 on an adjusted basis, slightly higher than the consensus estimate of $2.03.

Altria repurchased $1.3 billion in stock in 2011, out of $2 billion authorized in two repurchase programs. The company expects to complete the authorized repurchase program by the end of this year. Altria pays an annual dividend of $1.64/share, for a dividend yield of 5.7%.

Shares are trading higher by about 1.2% in the pre-market this morning, at $29.00 in a 52-week range of $23.20-$30.40.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Earnings, Tobacco Tagged: MO