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Zacks Analyst Blog Highlights: The Governor and Company of the Bank of Ireland, Eli Lilly &Amp; Co., Red Robin Gourmet Burgers, China Life Insurance Company Ltd., And Acorda Therapeutics.
Wednesday, April 01, 2009 6:54 AM


(Source: Business Wire)trackingZacks.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: The Governor and Company of the Bank of Ireland (NYSE: IRE), Eli Lilly & Co. (NYSE: LLY), Red Robin Gourmet Burgers (NASDAQ: RRGB), China Life Insurance Company Ltd. (NYSE: LFC), and Acorda Therapeutics (NASDAQ: ACOR).

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Here are highlights from Tuesday's Analyst Blog:

Bank of Ireland Estimates Cut

In its 3rd quarter trading update, The Governor and Company of the Bank of Ireland (NYSE: IRE), or BOI, reduced its earnings outlook due to higher loan impairment charges.

IRE raised its estimate of bad debts to EUR4.5 billion from EUR3.8 billion for the 3 years through 2011, with roughly EUR1.4 billion expected for the 2009 fiscal year ending March 31. Moreover, BOI said there is downside risk to this estimate, with EUR1.5 billion of additional impairment charges possible.

Eli Lilly Remains Range-Bound

Eli Lilly & Co. (NYSE: LLY) turned in a solid year in 2007 and again in 2008. 2008 sales increased by 9% on strong sales of Cymbalta, Alimta, Byetta, Cialis and the Animal Health business. EPS grew even faster, at 13%, as operating margins widened on stronger gross margins and modest SG&A leverage.

For 2009, Lilly expects EPS between $4.00 and $4.25 on revenue growth in the mid-single digits. While we've been mildly surprised by the annual performance in 2007 and 2008, we don't expect a repeat performance in 2009 and expect the shares to remain range-bound for the foreseeable future.

Red Robin Staying South

We believe shares of Red Robin Gourmet Burgers (NASDAQ: RRGB) will continue to underperform both the larger market and the restaurant industry. Red Robin's traffic began declining long before the onset of rising gas prices in October 2007, which began choking business in the casual dining sector -- a victim of poor site selection in new markets.

In spite of their poor performance, the company has retained and even added to these sites as it repurchased 45 franchises since 2005. Moreover, 2009 consensus EPS estimates are 10% higher than ours, and we think our estimate may prove aggressive if the economic slowdown is deeper or more protracted than we currently anticipate.

China Life Still Affordable

Headquartered in Beijing, China, China Life Insurance Company Ltd.



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