Shares of
Reed Elsevier NV
(
ENL
) have been steadily moving higher since mid-2012, and are now
hovering close to their 52-week high. This professional information
solutions provider has amassed a year-to-date return of 32%,
demonstrating its strong fundamentals. Furthermore, earnings
estimates for 2012 and 2013 have shown an upward trend in the last
30 days.
There are several catalysts for this Zacks #1 Rank (Strong Buy)
moving forward, including its impressive balance sheet and cash
flow generation capability, its diversified business portfolio,
acquisitions, divestment activities and its high potential markets.
Nine-Month Results
Reed Elsevier came out with its nine-month results on November 8,
2012. The company witnessed an underlying revenue increase of 4%.
Excluding the impact of biennial exhibition cycling, underlying
revenue grew 3%. Positive contribution from all five segments set
the stage for growth, and the company's underlying revenue and
profit upside remain on track.
Looking at segments, the company registered underlying revenue
growth of 15% in Reed Exhibitions, 6% in LexisNexis Risk Solutions,
2% in Elsevier, and 1% in LexisNexis Legal & Professional and
Reed Business Information each.
To counter the sluggish economic condition and to improve its
profitability, Reed Elsevier is now concentrating on those revenue
generating avenues that are subscription based and are recurring in
nature. The company is also gradually shying away from cyclical
advertising-related revenues and print-based products.
Earnings Estimates Edge Upward
The Zacks Consensus Estimate for 2012 rose 1.7% to $2.36 per share
in the last 30 days. For 2013, the Zacks Consensus Estimate climbed
4.7% to $2.43 over the same time frame.
Shares Showing Strength
Barring a few occasional pull backs, shares of Reed Elsevier have
been trending upward since the beginning of June. It's now hovering
close to its 52-week high, reflecting bullish momentum for the rest
of 2012. The stock has been consistently trading above its 200-day
moving average since August 3. It has also remained above the
50-day moving average since November 23.
Volume averages roughly 35K daily. The year-to-date return for the
stock is 32% compared with the S&P 500's return of 10.4%.
Founded in 1903 and based in Amsterdam, the Netherlands, Reed
Elsevier is a provider of professional information solutions to
science and medical, legal, risk management, and corporate,
primarily in North America and Europe. Its 5 divisions are
Elsevier, LexisNexis Risk Solutions, LexisNexis Legal &
Professional, Reed Exhibitions, and Reed Business Information. Reed
Elsevier, which primarily competes with Wolters Kluwer NV (
WTKWY
), has a market cap of $10.86 billion.
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REED ELSEVR-NV (ENL): Free Stock Analysis
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REED ELSEVR-NV (ENL): Free Stock Analysis
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