Zacks Analyst Blog Highlights: Jabil Circuit, Inc., Inc., Dean Foods Co., 3Com Corp., Genta Inc. And Aracruz Celulose S.A.
Tuesday, September 30, 2008 5:16 PM
Symbols: ARA, COMS, GNTA, JBL, THS
(Source: BUSINESS WIRE)trackingZacks.com

Mark Vickery

Web Content Editor

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Visit: www.zacks.com

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: Jabil Circuit, Inc. (NYSE: JBL), Dean Foods Co. (NYSE: DF), 3Com Corp. (Nasdaq: COMS), Genta Inc. (Nasdaq: GNTA) and Aracruz Celulose S.A. (NYSE: ARA).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579

Here are highlights from Monday's Analyst Blog:

Jabil Circuit to Trade In-Line

Headquartered in St. Petersburg, Florida, Jabil Circuit, Inc. (NYSE: JBL) is one of the largest global suppliers of electronic manufacturing services (EMS) used in communication products, computer peripherals and automobile industries. Revenue for the most recent quarter was $3,264.9 million, an increase of 4.3% from $3,129.8 million reported in the year-ago quarter. This was in line with the company's guidance of $3.2 billion to $3.3 billion range. GAAP EPS in the quarter was $0.28 versus $0.06 in the comparable quarter last year.

For the first quarter of fiscal 2009, Jabil expects revenue in the range of $3.40 billion to $3.60 billion, with an estimated core operating margin range of 3.0% to 3.4%. Core EPS is anticipated to be in a range of $0.30 to $0.38 range. Selling, general and administrative expenses are estimated to be approximately $121 million, research and development costs are expected to be approximately $9 million, and amortization of intangibles to be approximately $9 million.

Dean Foods Buying Opportunity

Management at Dean Foods (NYSE: DF) has taken definitive actions to improve shareholder value from the spin-off of TreeHouse Foods in 2005 to a $15 per share special dividend in 2007. Management has focused on the branded products business, reduced SKUs [stock- keeping units], and integrated strategic acquisitions in the Dairy Group.

However, 2007 and 2008 have been challenging due to increased dairy costs. Though costs are expected to remain volatile in 2008, the decline in the stock's price has provided a buying opportunity, since any relief from high dairy costs will dramatically accelerate earnings growth. The Buy rating is maintained.

3Com Will Keep at Lower Levels

3Com Corporation (Nasdaq: COMS) has become a leader in the Chinese enterprise networking market.

We are concerned about the future of COMS business in China as it reduces its dependence on Huawei as a reseller, which contributes close to a quarter of revenue.


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