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Magna International, Amazon, The J.M. Smucker Company, Ann Taylor Stores and Hibbett Sports

^{Published on 2010-08-24 14:20:50 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights: Magna International (NYSE: [ MGA ]) as the Bull of the Day and Amazon.com (Nasdaq: [ AMZN ]) the Bear of the Day. In addition, Zacks Equity Research provides analysis on The J.M. Smucker Company (NYSE: [ SJM ]), Ann Taylor Stores Corp. (NYSE: [ ANN ]) and Hibbett Sports Inc. (Nasdaq: [ HIBB ]).

Full analysis of all these stocks is available at [ http://at.zacks.com/?id=2678 ].

Here is a synopsis of all five stocks:

[ Bull of the Day ]:

Magna International (NYSE: [ MGA ]) enjoys a strong competitive position in the automotive industry by virtue of its complete range of interior and exterior auto systems.

The company is strengthening its positions in the emerging markets of Asia, Eastern Europe and Russia. It is also poised for growth through its major business wins from original equipment manufacturers (OEMs).

In the most recent quarter, the company outpaced the Zacks Consensus Estimate by $1.27 per share. These factors have led us to upgrade shares from Neutral to Outperform and set a target price of $91.

[ Bear of the Day ]:

Amazon.com (Nasdaq: [ AMZN ]) is one of the largest online retailers in the world. However, recent growth initiatives have significantly increased the cost structure and related revenue streams appear uncertain as of now.

Consequently, we have lowered our EPS estimates for the rest of the year. Moreover, competition remains a primary concern, with a corresponding negative impact on prices, which also has the potential to hurt margins and cash flow.

Therefore, although we believe in the high growth profile of the core business, Amazon's market position, international success and very strong balance sheet, we expect downward pressure on the shares. Consequently, we are downgrading AMZN shares to Underperform.

Latest Posts on the Zacks [ Analyst Blog ]:

Smucker Beats Estimates

The J.M. Smucker Company (NYSE: [ SJM ]) delivered earnings per share (EPS) of $1.04 for its first quarter fiscal 2011 ended July 31, 2010, outperforming the Zacks Consensus Estimate of 95 cents and the year-ago EPS of 92 cents. Stronger margins aided by a lower tax rate drove the outperformance.

For the first quarters of fiscal 2011 and 2010, EPS excluded restructuring and merger and integration costs of 18 cents and 9 cents, respectively. Including these items, the company reported EPS of 86 cents in the reported quarter compared with 83 cents in the year-ago quarter.

Net sales remained almost flat at $1,047.3 million in the quarter as the impact of favorable foreign exchange rates and sales mix offset the impact of the potato business divestiture and an overall 3% decline in volume. The volume decline was driven by the company's oils and baking brands in the U.S. and Canada. The company, however, achieved volume gains in Folgers and Dunkin' Donuts brand coffee, Jif peanut butter, Hungry Jack pancake mixes and syrups, and beverages in natural foods.

Ann Taylor Q2 EPS Meets

Ann Taylor Stores Corp. (NYSE: [ ANN ]) recently reported fiscal 2010 second-quarter results. The company swung to adjusted earnings of 32 cents per share from an adjusted loss of 32 cents in the year-ago quarter primarily driven by higher sales, improved gross margin and management initiatives to contain costs. Quarterly earnings also matched the Zacks Consensus Estimate.

Quarterly Details

During the quarter, Ann Taylora™s net sales grew 2.8% to $483.5 million from $470.2 million in the year-ago quarter. The growth was primarily driven by a 6.1% growth in same-store sales, partially offset by the net closure of 39 stores in the last one-year period. In terms of brands, same-store sales rose 15.2% at Ann Taylor, while they remained flat at LOFT.

Ann Taylora™s gross profit recorded a growth of 8.1% year-over-year to $266.1 million, while gross margin jumped 270 basis points (bps) to 55.0%. The growth was mainly attributable to better merchandise and reduced markdowns at Ann Taylor coupled with prudent inventory management and effective marketing efforts.

Selling, general and administrative expenses dipped 2.0% year-over-year to $235.4 million due to cost savings related to the companya™s restructuring initiatives. Accordingly, Ann Taylor swung to an operating profit of $29.9 million from an operating loss of $25.2 million in the year-ago quarter, which included a restructuring charge of $31.1 million.

Hibbett Misses Zacks Estimate

Hibbett Sports Inc. (Nasdaq: [ HIBB ]) reported fiscal second-quarter 2011 earnings of 14 cents, lagging the Zacks Consensus Estimate of 16 cents. Results, however, increased a whopping 257% from 4 cents reported in the prior-year quarter. Net income increased almost four fold to $4.0 million from $1.1 million in fiscal second-quarter 2010.

Net sales in the quarter were $139.8 million, up 13.6% from $123.1 million in fiscal second-quarter 2010. Comparable store sales increased 11.9% compared with a decrease of 10.5% in the prior-year quarter. The company recorded its second straight double-digit comparable store sales growth. Results were above the Zacks Consensus Estimate of $138 million.

Cost of goods sold, distribution center and store occupancy costs in the quarter under review increased 10% year over year to $95 million. Store operating, selling and administrative expenses were $34.9 million, up 11.5% year over year.

The company reported operating income of $6.5 million, reflecting a year-over-year 234.4% increase.

Get the full analysis of all these stocks by going to [ http://at.zacks.com/?id=2649 ].

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