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The Zacks Analyst Blog Highlights: Perrigo Company, Xerox, Apple, DuPont and Boeing

For Immediate Release

Chicago, IL – May 02, 2016 – 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 the Perrigo Company plc (PRGO), Xerox Corporation (XRX), Apple Inc. (AAPL), E. I. du Pont de Nemours and Company (DD) and Boeing Company ( BA).

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Here are highlights from Friday’s Analyst Blog:

Dow 30 Stock Roundup

The Dow suffered losses over the week primarily due to a continual decline in Apple’s shares while oil prices remained volatile. The index declined on Monday following a decline in oil prices and weak earnings results and guidance. The index increased on Tuesday following a rally in oil prices. The index moved higher on Wednesday following an oil price rally, Fed’s policy statement and a slump in tech stocks. The index declined on Thursday due to the continuing slump in Apple’s stocks. The Dow has lost 0.9% over the first four trading days of the week.

Last Week’s Performance

The index declined 0.2% on Monday following a decline in oil prices and weak earnings results and guidance. Oil price declined following worries over the rise in global crude production. After the end of the three-day oil worker strike in Kuwait recently, its crude production increased to 3 million barrels per day (bpd).

Meanwhile, Saudi Arabia will reportedly increase the capacity of the Shaybah oilfield from 750,000 bpd to 1 million bpd by next month. Chevron and Exxon Mobil fell 0.5% and 0.2%, respectively.

Shares of Perrigo Company plc (PRGO) slumped 18.1% following a weak outlook and the resignation of its CEO Joseph Papa. Additionally, Xerox Corporation’s (XRX) shares fell 13.3%, witnessing the biggest one-day decline since Sep 2009 following dismal earnings. New home sales fell by 1.5% from February to 511,000 in March.

The index increased 0.1% on Tuesday following a rally in oil prices. Oil prices rallied during the day after the dollar fell following a lower-than-expected rise in durable orders. Also, gasoline prices increased following a slump in gasoline inventories and disruptions in refinery units in the U.S. Gulf Coast market. Chevron and Exxon Mobil rose 0.8% and 0.3%, respectively.

Shares of Apple Inc. (AAPL) fell 0.7% following speculation that iPhone sales are likely to witness their first ever year-on-year decline. Meanwhile, durable orders increased 0.8% in March to $230.7 billion, in contrast to a decline of 3.1% in February. Consumer Confidence Index declined to 94.2 in April from 96.2 in March.

E. I. du Pont de Nemours and Company’s (DD) shares increased 2.4% following encouraging earnings numbers. The index gained 0.3% on Wednesday following an oil price rally, Fed’s policy statement and a slump in tech stocks. The Federal Open Market Committee (FOMC) decided to keep interest flat within the 0.25 and 0.5 percent range, and expected “only gradual increases in the federal funds rate.”

Meanwhile, the U.S. Energy Information Administration (EIA) reported that the U.S. commercial crude oil inventories rose 2 million barrels to a peak level of 540.6 million for the week ended April 22. Despite a rise in crude inventories, oil prices increased during the day after the dollar weakened following the Fed’s decision to keep rates unchanged.

Chevron advanced 1.5%. Separately, another Dow component, Exxon Mobil shares increased 1% to $88.46, reaching its highest level since May 2015. Shares of the company increased after raising its dividend from 73 cents to 75 cents for the first quarter which will be paid to its shareholders on Jun 10.

Shares of Apple slumped 6.3% after iPhone sales witnessed their first year-on-year decline ever and its China sales dropped, which negatively impacted fiscal second quarter earnings results. However, shares of The Boeing Company (BA) rose 2.9% on better-than-expected first quarter revenue results.

The index lost 1.2% on Thursday following a continuing slump in Apple’s shares. Moreover, Bank of Japan’s decision not to reduce interest rates further or introduce any new stimulus measure had a negative impact on investor sentiment. The Dow fell by more than 1% for the first time since Feb 23 and by more than 200 points since Feb 11.

Shares of Apple slumped 3.1% after activist investor Carl Icahn sold his entire stake in Apple following the company’s inability to boost sales. The tech giant registered its sixth straight session of declines for the first time in three years.

Moreover, Bank of Japan (BOJ) kept its interest rates unchanged and announced no new stimulus measures to control the yen’s movement. Consequently, the yen increased almost 4% against the dollar to 108.12 yen. A stronger yen dragged the Nikkei 225 3.6% lower, which in turn had an adverse impact on global markets.

The “advance” estimate by the Bureau of Economic Analysis showed that first quarter output of goods and services increased at an annual rate of 0.5%, lower than the consensus estimate of a 0.6% increase. This is the slowest pace at which GDP has increased in the first quarter in two years.

Components Moving the Index

Apple earnings of $1.90 per share not only declined 18.5% year over year, but also fell short of the Zacks Consensus Estimate of $1.97. Revenues of $50.6 billion were also below the Zacks Consensus Estimate of $51.5 billion and down approximately 12.8% from the year-ago quarter.

Apple iPhone unit sales came in at about 51.2 million, down 16% year over year. For the third quarter of fiscal 2016, Apple forecasts revenues in the range of $41 billion to $43 billion. The Zacks Consensus Estimate for the same is pegged higher at $45.6 billion.

Boeing delivered first-quarter 2016 adjusted earnings of $1.74 per share, missing the Zacks Consensus Estimate of $1.81 by 3.9%. The company's revenues increased 2% year over year to $22.63 billion in the reported quarter. The reported figure was also ahead of the Zacks Consensus Estimate of $21.24 billion. Boeing reaffirmed its adjusted or core earnings per share expectation in the range of $8.15−$8.35 for 2016.

DuPont logged adjusted earnings of $1.26 per share in the reported quarter, outpacing the Zacks Consensus Estimate of $1.02. DuPont raked in net sales of $7,405 million for the quarter, beating the Zacks Consensus Estimate of $7,202 million. DuPont expects operating earnings of $3.05 to $3.20 per share for 2016, up from an earlier view of $2.95 to $3.10 per share.

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PERRIGO CO PLC (PRGO): Free Stock Analysis Report
 
XEROX CORP (XRX): Free Stock Analysis Report
 
APPLE INC (AAPL): Free Stock Analysis Report
 
DU PONT (EI) DE (DD): Free Stock Analysis Report
 
BOEING CO (BA): Free Stock Analysis Report
 
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