For Immediate Release
Chicago, IL - February 17, 2012 - Zacks Equity Research highlights Eastman Chemical Co. ( EMN ) as the Bull of the Day and Arcelor Mittal ( MT ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Electronic Arts Inc. ( EA ), Microsoft Corp. ( MSFT ) and Sony Corp. ( SNE ).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678 .
Here is a synopsis of all five stocks:
Eastman Chemical Co.'s ( EMN ) fourth-quarter revenues rose 18% year over year to $1.7 billion, driven by increased selling prices and higher sales volumes. The company expects to face certain headwinds in the first half of 2012, but anticipates that there will be more economic activity in the second half of 2012, particularly in the Asia-Pacific and North American regions.
The company expects earnings per share from continuing operations in 2012 to be higher than that of 2011. Eastman Chemical expects to deliver strong results and looks forward to benefit from the recent capacity additions as well as the Sterling and Scandiflex acquisitions.
We, therefore, upgraded our recommendation to Outperform from Neutral with a target price of $65.00. Our $65.00 target price, 13.2x the 2012 EPS, reflects our Outperform view.
Arcelor Mittal ( MT ) reported a diluted net loss of $0.65 per share in the fourth quarter of 2011, missing the Zacks Consensus Estimate for a profit of $0.10. Revenues of $22.4 billion were down 7.3% sequentially, primarily due to lower average selling prices for steel (-6.2%) and a lower volume of shipments (-2.5%).
Arcelor Mittal expects its EBITDA in the first half of 2012 to be lower than the first half of 2011, but above the second half of 2011, supported by continued progress on management gains and asset optimization plans. Furthermore, the company will continue to calibrate its steel growth projects for evolving demand situations, driven by the recent market uncertainty resulting from the European debt crisis and its potential global impact.
We, therefore, downgrade our recommendation on the stock to Underperform from Neutral with a new target price of $21.00. This target is based on 8.3x 2012 EPS.
Latest Posts on the Zacks Analyst Blog :
EA Releases Warp for Xbox, PlayStation
Electronic Arts Inc. ( EA ) and Trapdoor, an independent game developer, have come together to release Warp , a puzzle based sci-fi action game. Warp can be downloaded to Microsoft Corp. 's ( MSFT ) Xbox Live video gaming system for 800 Microsoft points. The game, priced at $9.99, will also be available on Sony Corp. 's ( SNE ) PlayStation 3 network and EA's digital platform Origin starting March 13, 2012 in North America.
In the game, gamers play as Zero, an orange-colored alien who is held captive by humans and plans its escape from an underwater experimental facility. Gamers have the option of playing the game in two modes. In one of the modes, players can seek revenge on every human they encounter during the escape. In the other, players can select the stealth mode and escape without hurting anybody. Though it's a puzzle-based game, the dynamic nature offers a unique and intriguing gameplay.
The game's trailer had already been released and has received decent response in terms of new game tryouts from various quarters. EA's strong fan base and the popularity of Origin should work in favor of making the game a success.
In the last-reported quarter, the company's results were positively impacted by strong digital revenues that resulted from the 442.0% increase in full game downloads and other downloadable content from Origin.
EA has been shifting its focus to the digital format and with its diversified portfolio and strong product pipeline is expected to drive top-line growth going forward. We believe that high-quality titles, along with increasing online exposure, particularly in the social gaming genre guarantee market share gains over the long term.
Moreover, EA's shift of business mix towards the digital format is a good strategy, given the current trends in the video gaming. Digital online games -- including used games, rentals, mobile games and social games -- have gained tremendous popularity in recent times.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649 .
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
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 analyst 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 by visiting http://at.zacks.com/?id=7158 .
Zacks.com is a property of Zacks Investment Research , Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT 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=4582 .
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.
Zacks Investment Research