CHICAGO, Oct. 28, 2011 /PRNewswire/ -- 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: Procter & Gamble Co. (NYSE: PG), Kimberly-Clark Corporation (NYSE: KMB), Johnson & Johnson (NYSE: JNJ), The Dow Chemical Company (NYSE: DOW) and EI DuPont de Nemours & Co. (NYSE: DD).
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Here are highlights from Thursday's Analyst Blog:
Procter & Gamble Co. (NYSE: PG) reported modest results for the first quarter 2012,with net earnings from continuing operations inching up 1.0% year over year to $1.03 a share, which were in line with the Zacks Consensus Estimate. Profits were driven by efforts to enhance productivity and cost-saving initiatives.
Procter & Gamble forecasts second-quarter 2012 net earnings from continuing operations and core earnings to be in the range of $1.05 to $1.11 per share, a decrease of 7%-2% compared to core earnings of $1.13 in the corresponding prior-year quarter. The guidance implies that P&G will continue to engage in several innovations and invest in various marketing programs. The Zacks Consensus Estimate for the second quarter is expected to be $1.16 per share.
For 2012, diluted net earnings per share from continuing operations and Core EPS are expected to increase 3%-6% from the comparable period and will be in the range of $4.17 to $4.33.The Zacks Consensus Estimate for fiscal 2012 is $4.21.
Recommendation
We are encouraged by the company's expansion of its portfolio of brands, both through internal development and acquisition. However, Procter and Gamble is currently facing high commodity cost inflation and severe competition from companies like Kimberly-Clark Corporation (NYSE: KMB) and Johnson & Johnson (NYSE: JNJ) in the Western European markets in both the blade and battery businesses.
Dow Posts Excellent 3Q Results
The Dow Chemical Company (NYSE: DOW) earned 69 cents per share in the third quarter of 2011, ahead of the Zacks Consensus Estimate of 64 cents per share as well as last year's 45 cents per share. However, including one-time charges, the company earned 62 cents per share compared with 54 cents per share in the year-ago quarter.
Quarterly revenues jumped 17% year over year to $15.1 billion and were above the Zacks Consensus Estimate of $14.7 billion, driven by double-digit gains in all operating segments and geographic areas, with the largest growth in Latin America (21%) and Europe, Middle East and Africa (EMEA) (19%). In emerging geographies, sales reached $5 billion, a new quarterly record for the company.
At the company level, volume was flat versus the same quarter last year, as demand gains in Latin America (7%) and Asia Pacific (5%) offset decreases in North America (3%) and EMEA (2%). Volume growth in emerging geographies was 7%, led by China (12%), India (11%) and Brazil (10%). Besides, across operating segments volume gains were reported in Agricultural Sciences (18%), Electronic and Functional Materials (3%) and Performance Plastics (1%).
At the company level, price rose 17%. Broad-based price gains were achieved in all geographic areas, led by EMEA (21%) and North America (17%). Double-digit price gains were reported in all operating segments, except Electronic and Functional Materials (up 8%) and Agricultural Sciences (up 9%). Price gains offset a $1.7 billion increase in purchased feedstock and energy costs.
EBITDA was $2.1 billion but excluding certain items was $2.0 billion, which is the highest third quarter result in Dow's history. This contributed to record year-to-date EBITDA on the same basis of $6.8 billion, up 21% year over year.
Dow's global operating rate was 83%, down 3% year over year and 1% sequentially.
Outlook
There was no financial guidance from Dow. However, Dow anticipates demand to improve further, especially in Asia with the global economic recovery. The US and European markets have also started showing signs of improvement. Dow is also optimistic on major consumer-markets, including electronics, coatings, automotive and packaging. However, construction markets are expected to remain weak.
DOW faces stiff competition from EI DuPont de Nemours & Co. (NYSE: DD).
Currently, DOW has a short-term (1 to 3 months) Zacks #4 Rank (Sell) but a long- term Neutral recommendation.
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