For Immediate Release
Chicago, IL - May 8, 2012 - 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
Time Warner Cable Inc.
(
TWC
),
Comcast
Corporation
(
CMCSA
),
Verizon Communication Inc
(
VZ
),
AT&T
(
T
) and
Qiagen
(
QGEN
).
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Here are highlights from Monday's Analyst Blog:
Earnings Scorecard: Time Warner Cable
Following the first quarter earnings announcement on April 26,
most of the analysts covering
Time Warner Cable Inc.
(
TWC
) have slashed their estimates. The brokers' bearish stance is
based on the company's continuous loss of residential video
customers.
First Quarter Highlights
On a GAAP basis, quarterly net income was $382 million or $1.20
per share, compared with $325 million or 93 cents in the year-ago
quarter. Adjusted EPS came in at $1.30, substantially beating the
Zacks Consensus Estimate of $1.22.
Quarterly total revenue of $5,134 million was up 6.4% year over
year, and surpassed the Zacks Consensus Estimate of $5,121 million.
Operating income before depreciation and amortization (OIBDA)
increased 8.2% year over year to $1,873 million.
Agreement of Analysts
Of the 18 analysts covering the stock in the last 7 days, none
has revised the estimate upward while one analyst has revised the
estimate downward for the second quarter of 2012. For the third
quarter of 2012, of the 17 analysts covering the stock, none has
revised the estimates upward while only one has revised the
estimate downward.
For fiscal 2012, out of the 21 analysts covering the stock in
the last 7 days, none has raised the estimate while one analyst
lowered it. However, for fiscal 2013, out of the 20 analysts
covering the stock, none has raised or lowered the estimates.
Currently, the Zacks Consensus Estimate for the second quarter
of fiscal 2012 is $1.39, with a projected annual growth of 17.61%.
For the third quarter of fiscal 2012, the Zacks Consensus Estimate
of $1.42 indicates an annual gain of 27.87%.
Magnitude of Estimate Revisions
During the last 7 days, the current Zacks Consensus Estimates
for the second quarter and third quarter of 2012 has been in line
with previous estimates of $1.39 and $1.42 respectively. However,
for fiscal 2012, the current Zacks Consensus Estimates was a penny
below the prior estimate of $5.64. For fiscal 2013, the current
Zacks Consensus Estimates was three cents below the earlier
estimate of
$6.93.
Earnings Surprises
The company has outdone the Zacks Consensus estimates in three
out of four quarters. In the first quarter of 2012, Time
Warner Cable outpaced the consensus estimate by 8 cents or
6.56%.
The ongoing quarter of fiscal 2012 contains a 0.72% downside
risk (essentially a proxy for future earnings surprises), while
estimates for the third quarter of 2012 are in line with the Zacks
Consensus. Similarly, fiscal 2012 estimates are in line with the
Zacks Consensus, while 2013 reflects a downside risk of 0.44%.
Our Recommendation
We believe that Time Warner cable's significant subscriber
growth for broadband and digital phone services, decision to expand
its Wi-Fi network and its new strategic move to consolidate its
Cable TV business will act as positive catalysts in the long
run.
However, a bleak macro economic situation, stiff competition
from rival
Comcast
Corporation
(
CMCSA
) along with telecom carriers like
Verizon Communication Inc
(
VZ
) and
AT&T
(
T
) and saturation of the multi-channel video market in the U.S. may
create significant headwinds for the company.
We maintain our long-term Neutral recommendation on Time Warner
Cable. Currently, Time Warner Cable has a Zacks #2 Rank, implying a
short-term buy rating on the stock.
Qiagen Expands Points of Need
In an attempt to expand its Point of Need diagnostics
portfolio,
Qiagen
(
QGEN
) recently acquired Boston-based privately owned company AmniSure
International. Through the acquisition, Qiagen will have access to
AmniSure's proprietary diagnostic test AmniSure assay, which
determines rupture of fetal membranes (ROM), most commonly found in
pregnant women.
With roughly 30% of pregnant women undergoing this diagnostic
test in the US, the acquisition of AmniSure will help Qiagen to
widen its scope in in the growing market of woman health. AmniSure
assay will expand Qiagen's portfolio of test, which include the
Qiagen's digene HPV Test which has been widely accepted as the
"gold standard" in testing for high-risk types of human
papillomavirus (HPV), primarily responsible for cervical
cancer.
This AmniSure assay earlier received clearance from the US Food
and Drug Administration (FDA) for marketing and is reimbursable
under most of the US state Medicaid plans.
Although the financial terms of the deal were not disclosed,
Qiagen anticipates this acquisition to remain neutral to the
company's 2012 adjusted EPS, but accretive roughly by 2 cents in
fiscal 2013. Further, Qiagen expects AmniSure to contribute around
$12 million and $24 million to the company's sales for the
remainder of 2012 and full-year 2013, respectively. However, the
company expects to incur transaction-related one-time charges and
integration costs of $5 million in 2012.
Viewing the substantial potential of the molecular diagnostic
market globally, Qiagen is currently focusing on expanding its
diagnostics products offering. The company currently derives around
50% of its total revenue from this segment, which is likely to
increase with this acquisition. Qiagen has acquired several
companies to expand its product portfolio, the significant ones are
Cellestis and Ipsogen in 2011.
We are encouraged by Qiagen's focus on strategic initiatives to
drive growth and profitability in the molecular diagnostics market.
Its innovative tests in the genomic/esoteric arena, with a focus on
the high-margin esoteric testing business, are expected to
accelerate the company's sales growth on the back of growing market
demand, not only domestic but worldwide.
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COMCAST CORP A (CMCSA): Free Stock Analysis
Report
QIAGEN NV (QGEN): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
Report
VERIZON COMM (VZ): Free Stock Analysis Report
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