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Guess? Inc.’s (GES) fourth quarter and fiscal 2012 earnings missed year-ago earnings by 5.4% and 1.9%, respectively. Severe austerity measures taken by the European government to combat the debt crisis in the region resulted in reduced spending by consumers there. Though this was offset by the slight increase in per capita income of the North American region, operating margin shrank, owing to higher SG&A as well as promotional activities. Same-store sales also declined in the quarter. In the wholesale segment, reorders for the fall collections as well as spring/summer orders also missed the mark. Though the valuation on a price-to-book basis looks attractive (trailing 12-month ROE of 25.9%, well above the industry average), our six-month target price of .00 per share equates to about 10.0x our earnings estimate for 2012.
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Teradyne, Inc. (TER) is a leading provider of automated test equipment. The company’s second quarter earnings beat the Zacks Consensus, although revenue growth was sluggish. Forward guidance indicates slack demand, particularly for back-end testing equipment. While there could be pockets of strength, we think that the negative mix of business, relatively lower exposure to the [...]

(TER) Teradyne Incorporated – Bear of the Day

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In June 2011, SurModics, Inc. (SRDX) received a blow when Johnson & Johnson announced that it will stop manufacturing Cypher stents by year end, as SurModics receives royalties on sales of the product. However, we believe the impact of the blow will not be very severe, and that the current price represents an attractive entry [...]

(SRDX) SurModics Incorporated – Bull of the Day

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Is it finally time to buy the dry bulk shippers? DryShips Inc. (DRYS) has surprised on estimates 3 out of the last 4 quarters but investors don’t seem to care as shares have been mired in a narrow trading range. Yet DryShips is cheap. It is trading at just 4.9x forward estimates. DryShips is somewhat [...]

(DRYS) DryShips Incorporated – No Rebound in Shipping Stocks

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HCP Inc. (HCP), a health care real estate investment trust (REIT), reported third quarter 2010 FFO (funds from operations) of .1 million or 31 cents per share, compared with .2 million or 11 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding [...]

(HCP) HCP Incorporated Reports Quarterly Earnings in Line

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