Let’s take a look at the big morning notes today…
- GOLDMAN LIKES IT: “We expect 2011E consensus expectations to move higher following 1Q results due to improving domestic pricing despite likely headwinds from fuel/weather/currency in 1Q. We expect 1Q domestic yields (ARPP) to increase 6% (including a 2% fuel surcharge), which we believe is above consensus expectations. We continue to believe there is upside to our 2011E EPS of $4.40 (vs. consensus $4.25), given strong domestic yields, European share gains, and cost efficiencies (new driver mix, workforce restructuring, hub expansions). UPS remains our favourite transportation stock. We also have a constructive view on FedEx (Neutral) and expect the stock to react positively to UPS EPS on domestic pricing read-through.”
- CLSA SOUNDING NEGATIVE: “We expect Intel to report Q1 slightly below the midpoint of the guidance range for 1Q and expect the Q2 outlook to call for a mid-to-high single digit QoQ decline in core revenues (flat to down overall revenues), which is about seasonal given the extra week in Q1. Overall, we believe the Consensus 2011 EPS will decline to about $1.85 – $1.90 from the current $2.05.”
- UBS LIKES WHAT IT SEES IN CHANNEL CHECKS: “Our proprietary analysis of 100K+ commercial keywords indicates that 11% of all search results had a Product Image Ad. We believe these ads have significantly 40- 50% higher click-through rates vs. text ads. Categories with the highest penetration of Product Listing Ads were: Clothing & Shoes (24%); Home & Garden (23%); Animals (12%); Sports & Recreation (10%); and Computers & Electronics (10%). In addition, we expect the rollout of paid Comparison Ads in the financial vertical are likely to drive higher monetization over time given their success in the UK.”
- THE SHOE STILL FITS SAYS CITI: ” We are raising our 1Q11 estimate to $0.75 from $0.70 versus consensus of $0.74 given our outlook for increased penetration of higher margin accessories, modest price increases, and better leverage on a 7% comp. Management reiterated the opportunity to improve merchandise margins in 1H, which would add upside to our estimate.
- STERNE AGEE SEES SIGNS OF A TURNAROUND AFTER CISCO KILLS THE FLIP: Step in Right Direction But Relatively Minor. While we believe this as a step in the right direction in refocusing priorities, we view this as relatively minor as we estimate that the business contributed only $300-$400 million in revenue annually (less than 1% of total).”
- BMO AGREES: “Cisco has struggled the last several quarters. We view this move positively, as it is the first sign that management is willing to act to refine its strategy. We expect other moves, including closing of non-core businesses and potential acquisitions. We are not making any changes to our estimates or price target at this time. We remain MARKET PERFORM.”
Proctor & Gamble:
- WELLS FARGO NEGATIVE ON GROWTH “FQ3 2011 (March) results will likely be of low quality as commodity headwinds continue to weigh on margins, but likely supported by ongoing below the operating line other income and tax benefits to achieve the $0.95-1.00 guidance. FQ4 2011 (June) operating results should show improvement as ongoing commodity pressures will begin to be mitigated by recent pricing actions (FY2012 will see a larger benefit from pricing actions). We are reducing our EPS ests for P&G based upon recent FX/commodity price changes and in light of ongoing sluggish developed market growth. “
Business Insider Emails & Alerts
Site highlights each day to your inbox.