(Source: Business Wire)
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: McCormick & Schmick's Seafood Restaurants (NASDAQ: MSSR), Microchip Technology (NASDAQ: MCHP), Exxon Mobil Corp (NYSE: XOM), AutoZone Inc (NYSE: AZO) and Marsh & McLennan (NYSE: MMC).
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Here are highlights from Monday's Analyst Blog:
MSSR Poised to Endure Recession
As the market declined and the restaurant sector dived Friday, shares of McCormick & Schmick's Seafood Restaurants (NASDAQ: MSSR) gained 17% despite reporting dismal earnings and a dark outlook Thursday night. Investors are apparently reassured that McCormick can weather the deepening recession with its tight cost control, strong balance sheet and positive free cash flow.
Excluding roughly $5.15 in one-time impairment charges, EPS from continuing operations fell 33% to $0.16 in 4Q08. We were expecting $0.14. Guidance calls for EPS to fall 56% to $0.20 in 2009 from $0.45 in 2008.
Microchip Tech Outlook Cautious
Microchip Technology's (NASDAQ: MCHP) Q3 results and Q4 guidance clearly demonstrates a steep decline in revenues, and year-over-year comparison going forward indicate a bleak outlook.
Despite all the actions taken by the management, the company saw a significant increase in inventory during Q3. This is because the actions undertaken by the management were somewhat negated by the distributors and customers continuing to reduce inventories in response to the business falling off dramatically.
As of December 31, 2008, the company reported inventories of $136.5 million, up from $126.8 million at the end of the prior quarter. Deferred income on shipments to distributors were $98.4 million, down by $5.1 million from the balance as on September 30, 2008 while days of inventory in the distribution channel increased from 35 days to 41 days.
Exxon Bucks the Trend
At its annual analyst day in New York yesterday, Exxon Mobil Corp (NYSE: XOM) offered a business-as-usual outlook for 2009 and beyond, in line with its status as the conservative benchmark in the oil patch. Management stated that the company's operating and strategic plans remain unaffected by the credit market squeeze and sharp commodity-price drop.
But that's no surprise -- after all, this is Exxon we are talking about.
