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Zacks Analyst Blog Highlights: Coca-Cola FEMSA S.A. De C.V., Regions Financial Corp., Logitech International, PetMed Express and Aventine Renewable Energy Holdings - Jan 22 2009 11:54PM
Thursday, January 22, 2009 11:54 PM


(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: Coca-Cola FEMSA S.A. de C.V. (NYSE: KOF), Regions Financial Corp. (NYSE: RF), Logitech International (NASDAQ: LOGI), PetMed Express (NASDAQ: PETS) and Aventine Renewable Energy Holdings (NYSE: AVR).

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Here are highlights from Wednesday's Analyst Blog:

Coca-Cola FEMSA Stays a Buy

We are keeping our Buy recommendation on Coca-Cola FEMSA S.A. de C.V. (NYSE: KOF). The company posted slightly lower-than-expected results for the third quarter of 2008 due to losses in derivatives and currency exchange losses, but the results in the Mercosur division were particularly impressive.

We believe that going forward, new lines of business combined with the recent acquisitions will enhance its topline growth despite the difficult economic environment throughout the world, including Mexico.

Regions Financial Misses Ests

Prior to market open, Regions Financial Corp. (NYSE: RF) reported its earnings for 4Q08. Core results were a negative $0.35 per share, versus $0.24 per share in 4Q-07.

The difference from our expectations reflected a higher-than- expected provision for losses (from the accelerated disposition of problem assets), impairment of MSRs [mortgage servicing rights], the effects of preferred stock issuance (via the Treasury's Capital Purchase Program), and lower-than expected service charge on deposits and Trust income, which were somewhat offset by the tax settlement benefit covered for tax years 1999-2006.

Logitech Intl's Grim Numbers

Logitech International (NASDAQ: LOGI) announced financial results for the third quarter of fiscal year 2009. Sales for Q3-09 were $627 million (as compared to our estimate of $637 million and the average Street estimate of $699 million), a decrease of 16 percent versus $744 million in the same quarter last year.

Operating income was $43 million, a decrease of 63 percent compared to $116 million in the same quarter a year ago. Net income was $40 million - = $0.22 per share - (as compared to our estimate of $0.39 per share and the average Street estimate of $0.43) versus Q3-08 net income of $134 million - = $0.71 per share - which included a net realized gain on sales of short-term investments of $27.8 million and an impairment loss of $5.5 million on the value of short-term investments.



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