Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong Sell) on February 16, 2013.
Why the Downgrade?
COSAN LTD-A (CZZ): Free Stock Analysis Report
HILLSHIRE BRAND (HSH): Free Stock Analysis
MONSANTO CO-NEW (MON): Free Stock Analysis
TYSON FOODS A (TSN): Free Stock Analysis
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Following the release of the company's fiscal third quarter 2013
(ended December 31, 2012) financial results on February 6, 2013,
earnings estimates for this $5.4 billion company witnessed a
downward revision. In the last 30 days, the Zacks Consensus
Estimate for fiscal 2013 went down by 8.6% to 74 cents while that
for 2014 decreased by 3.4% to $1.12 per share.
Though the improvement in adjusted net income in the quarter was
impressive, increases in cost of sales and operating expenses
impacted the company's margin profile. In the third quarter,
Cosan recorded a solid 29.4% year-over-year increase in cost of
sales while selling and general & administrative expenses
recorded annual increase of 46.2% and 60.0%, respectively.
Of all the operating segments of the company, Radar, which is
responsible for all investment activities in agricultural land,
failed to gain momentum and registered a 13.4% decline in
revenue. Revenue that was generated, was primarily derived from
leasing activities. No lands were sold during the quarter.
Apart from the downward revision in earnings estimates, negative
27.3% of average earnings surprise in the last trailing four
quarters triggers our concern.
Other Stocks to Consider
Cosan, primarily a sugar and ethanol producer, also engages in
energy, food, logistics, infrastructure, and farmland development
and management businesses. Other players to watch out for in the
Hillshire Brands Company
) each with a Zacks Rank #1 (Strong Buy) while
) has a Zacks Rank #2 (Buy).