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July 24, 2009
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Chicago, IL – July 24, 2009 – 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: WESCO International (WCC), Anixter International (AXE), W.W. Grainger (GWW), United Parcel Service, Inc. (UPS) and Hershey (HSY).
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Here are highlights from Thursday’s Analyst Blog:
WESCO Misses, Guidance Down
WESCO International (WCC) announced second-quarter results that missed the consensus revenue estimate by 15.5% and the EPS estimate by 12 cents. Results appear weaker than the peer group, which includes Anixter International (AXE), W.W. Grainger (GWW) and privately-held Graybar Electric.
Revenue of $1.16 billion was down 1.7% sequentially and 27% year over year. Excluding the impact of currency, revenue was down 25.4%. The sequential decline was due to seasonality and the impact of the recession. Lower commodity prices (especially copper and steel) were responsible for 30% of the year-over-year decline. Recession-related weakness accounted for the rest. Revenue per employee declined around 18% from the year-ago period, but was up 2.8% sequentially.
UPS: Revenues Fall
Today, United Parcel Service, Inc. (UPS) posted diluted EPS of 49 cents per share before non-operating items, down 44% year over year, from 85 cents per share earned a year ago. The results matched the consensus estimate, but were below our 51-cent estimate due to lower-than-expected revenues.
Revenues dropped 17% to $10.8 billion from $13.0 billion in the prior-year-quarter and compare to a consensus estimate of $11.02 billion and our estimate of $11.18 billion. Reflecting the global economic slump, consolidated volume declined 4.7% to 914 million, while average revenue per piece fell 10.5% to $9.78, due to lower fuel surcharge revenues, a reduction in package weights, and the negative impact of currency.
Hershey Stuns; Raises Guidance
Hershey (HSY) reported robust results for the second quarter of 2009 and beat consensus by $0.08. Quarterly earnings (excluding the impact of unusual charges) were $0.43 per diluted share, up a strong 48.3% from $0.29 reported in the year-ago quarter.
Net sales increased 5.9% year-over-year to $1.17 billion driven by favorable pricing and international sales growth, which were partially offset by volume declines associated with pricing elasticity and unfavorable foreign exchange. Further, management stated that core brands such as Kisses are responding to the investments in advertising, in-store programming and merchandising. The Easter season and the kick-off of the annual S’mores promotion contributed positively to the top-line. In the channels measured by syndicated data, U.S. market share during the second quarter as well as year-to-date periods increased 0.5 points.
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