N@N

Energizer Holdings Inc., Panasonic Corp., Procter & Gamble Co., Stratasys Inc. and Hewlett-Packard

^{Published on 2010-11-03 20:40:29 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Energizer Holdings Inc. (NYSE: [ ENR ]), Panasonic Corp. (NYSE: [ PC ]), Procter & Gamble Co. (NYSE: [ PG ]), Stratasys Inc. (Nasdaq: [ SSYS ]) and Hewlett-Packard (NYSE: [ HPQ ]).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ]

Here are highlights from Tuesdaya™s Analyst Blog:

Energizer Runs Low in 4Q

Energizer Holdings Inc. (NYSE: [ ENR ])reported fourth quarter 2010 non-GAAP earnings of 81 cents per share, well below the Zacks Consensus of 95 cents, based on weak revenue growth in the quarter.

Including charges and one-time items, earnings came in at $1.20 per share in the quarter, well above the Zacks Consensus Estimate of 95 cents and up 126.4% year over year from 53 cents in the prior year quarter.

Energizer reported earnings per share of $5.60 for the fiscal 2010, on a non-GAAP basis. On a GAAP basis, earnings were $5.72 per share, up 21.2% y/y from $4.72 reported in the prior year.

Gross margin was 46.6%, compared with 43.9% in the year-ago quarter, and was favorably impacted by 40 basis points due to currency impact.

Although spending on advertising and promotion (A&P) increased 27.2% year over year (14.2% of total third quarter 2010 revenue versus 11.0% in the year-ago period), profits improved due to lower product costs.

Guidance

Management did not provide any earnings forecast for the first quarter of 2011.

However, Energizer expects raw material and commodity costs in the range of $20 million to $30 million, having an unfavorable impact on fiscal 2011 results as compared with fiscal 2010, primarily due to higher zinc and steel costs.

Energizer expects a favorable impact from foreign currency fluctuations in the range of $20.0 million to $30.0 million for the fiscal 2011.

Energizer plans to spend approximately 11.5% to 12.0% of net sales on advertising & promotion for fiscal 2011.

Our Take

Despite a weak fourth quarter, we continue to expect strong top-line growth for Energizer going forward. Moreover, we believe that the company will benefit from its restructuring initiatives, product innovations and strong balance sheet in the near term.

However, intense competition from Panasonic Corp. (NYSE: [ PC ]) and Procter & Gamble Co. (NYSE: [ PG ]), inventory destocking and weak consumer environment are potential negatives.

Energizer is currently a Zacks #2 Rank stock (short-term Outperform rating) and has an Outperform rating over the long term.

Impressive 3Q for Stratasys

Stratasys Inc. (Nasdaq: [ SSYS ]) reported third quarter 2010 earnings per share of 15 cents, 3 cents above the Zacks Consensus Estimate of 12 cents per share.

Revenue

Stratasys reported third quarter 2010 revenue of $30.3 million, up 24.0% from $24.3 million reported in the year-ago quarter. Growth in revenue is attributable to an improvement in business conditions within the companya™s core market.

Consumable and system unit sales were also encouraging, increasing 34% and 39%, respectively, from the year-ago quarter. The 3D printer revenue also increased by a staggering 88%, driven by robust sales of Hewlett Packard Companya™s (HPQ) Designjet lines of products that use Stratasys components.

Segment-wise, revenues from Products came in at $23.9 million, up 32.8% from $18.0 million reported in the year-ago quarter. Services revenue during the quarter was $6.29 million, up 0.1% from $6.28 million reported in the year-ago quarter.

Guidance

Stratasys did not provide any revenue or earnings guidance for the fourth quarter of 2010. The company witnessed an improvement in market conditions during the third quarter and remains optimistic about the upcoming quarters.

Conclusion

In addition to the improving macroeconomic conditions, the companya™s new collaboration with technology major Hewlett-Packard (NYSE: [ HPQ ])and the improving information technology spending will help the company grow. However, we are a bit apprehensive about the companya™s high cost business model and stiff competition from big and small players.

The company has a Zacks #4 Rank (short-term Hold rating).

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].

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 long-term.

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 today: [ http://at.zacks.com/?id=5516 ]

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics 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=4580 ].

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: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]

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 any security.