SYS-CON MEDIA Authors: Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel, Peter Silva

News Feed Item

Broadridge Financial Solutions, VeriFone Systems, Gilead Sciences, Johnson & Johnson and Forest Laboratories highlighted as Zacks Bull and Bear of the Day

CHICAGO, Jan. 3, 2014 /PRNewswire/ -- Zacks Equity Research highlights Broadridge Financial Solutions (NYSE:BR-Free Report) as the Bull of the Day and VeriFone Systems (NYSE:PAY-Free Report)as the Bear of the Day. In addition, Zacks Equity Research provides analysis ontheGilead Sciences, Inc. (Nasdaq:GILD-Free Report), Johnson & Johnson (NYSE:JNJ-Free Report) and Forest Laboratories Inc. (NYSE:FRX-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Here is a synopsis of all five stocks:

Bull of the Day:

Broadridge Financial Solutions (NYSE:BR-Free Report) is a provider of technology solutions including investor communications, securities processing and operations to banks, broker-dealers, mutual funds, and corporate issuers globally.

It is the former Brokerage Services division of ADP and was spun-off from ADP in 2007. The company has seen a compounded annual fee growth of 6% since it was spun-off.

BR processes 85% of all outstanding shares voted in the US and 72% of shares voted outside of the US.

Broadridge reported financial results for the first quarter of its fiscal year 2014 on November 7, 2013. Total Revenues increased 10% to $545 million from $496 million, primarily due to growth in net new business and by internal growth.

Non-GAAP Diluted earnings increased 117% to $0.39 per share, substantially ahead of the Zacks Consensus Estimate of $0.20 per share.

The management reaffirmed their full year guidance provided in August 2013--total revenue growth in the range of 2% to 4% and diluted earnings per share in the range of $2.00 to $2.10.

After excellent results and reaffirmation of guidance, analysts have increased their estimates for BR.

Zacks Consensus Estimate for the current and next fiscal year are now at $2.29 per share and $2.47 per share respectively, up from $2.06 per share and $2.26 per share, 60 days ago. Rising estimates sent BR to Zacks Rank # 1 (Strong Buy) on November 14, 2013.

Bear of the Day:

VeriFone Systems (NYSE:PAY-Free Report) is a provider of technology for electronic payment transactions and value-added services at the point of sale. Its customers are primarily global financial institutions, payment processors, petroleum companies, large retailers, government organizations and healthcare companies, as well as independent sales organizations. 

PAY reported the financial results for Q4 of the fiscal year ended October 31, 2013 on December 17, 2013. Net income for the quarter came in at $0.27 per share, compared to $0.76 per share a year ago. After including stock based compensation, the earnings were $0.13 per share, substantially short of the Zacks Consensus Estimate of $0.18 per share.

Gross margin contracted 310 basis points from the previous-year quarter and operating profit declined 70.4% mainly due to 11.5% year-over-year decline in revenues and 28.1% increase in operating expenses.

The management expects non-GAAP revenues to be in the range of $425.0 million–$430.0 million for the first quarter of fiscal 2014, almost unchanged from $429.0 million reported in the year-ago quarter.

Management expects first-quarter non-GAAP earnings to be $0.26 cents per share, down from $0.40 per share in the year-ago quarter.

Additional content:

Bullish on Gilead

Gilead Sciences, Inc. (Nasdaq:GILD-Free Report) had a very successful 2013 driven by its strong product portfolio. The biopharmaceutical company ended the year on a high with its blockbuster hopeful, Sovaldi, gaining U.S. approval for treating patients suffering from chronic hepatitis C virus (HCV).

Sovaldi, with its high cure rates, a short treatment period and reduction/elimination of the need for interferon injections, has the potential to change the treatment paradigm in the HCV space. The approval has been highly welcomed by HCV patients, many of whom have postponed their treatments waiting for a better therapy like Sovaldi to gain approval. We expect uptake in Sovaldi sales to be rapid, given its broad label and the pent-up demand for new HCV therapies.

The U.S. approval for Sovaldi comes a few weeks after the clearance of Johnson & Johnson's (NYSE:JNJ-Free Report) Olysio in combination with peg-IFN and ribavirin for treating chronic HCV patients.

The European approval of Sovaldi is also on track with the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) recommending its approval in the EU in Nov 2013. The positive opinion by the CHMP will be reviewed by the European Commission, which will issue final opinion on whether to approve the HCV candidate in the EU.

Other newly launched drugs like HIV therapies Complera/Eviplera (launched in 2011) and Stribild (launched in 2012) also performed very well during 2013. These drugs are expected to continue their strong performance in 2014 as well. In Dec 2013, Complera/Eviplera's label was expanded. Complera can now replace the existing antiretroviral treatment regimen in HIV infected adults. This should boost the sales potential of the drug further. The European approval of HIV drug Vitekta (elvitegravir) in Nov 2013 is another positive for Gilead.

Apart from the strong product portfolio, Gilead boasts of a robust pipeline. One of the most interesting candidates at Gilead is idelalisib (formerly GS-1101). The candidate, added to Gilead's pipeline through its acquisition of Calistoga Pharmaceuticals in 2011, is being developed for multiple indications.

At the annual meeting of the American Society of Hematology (ASH) in Dec 2013, Gilead presented encouraging data on the candidate from a phase II study (101-09: n=125) in the indolent non-Hodgkin's lymphoma (iNHL) indication, for which Gilead is seeking U.S. approval. Gilead also intends to seek approval for idelalisib in the chronic lymphocytic leukemia (CLL) indication and is in discussions with the FDA regarding the same. Idelalisib is under review in the EU in the CLL as well as iNHL indications. With the acceptance of Gilead's request for accelerated assessment by the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP), idelalisib is expected to be available in the EU in the latter half of 2014 (assuming approval).

Idelalisib on approval will augment Gilead's top line further. Another promising candidate in Gilead's pipeline is GS-9973. Encouraging interim data on the candidate from a phase II study was also presented at the ASH in patients with relapsed or refractory CLL or NHL. The successful development and subsequent commercialization of the pipeline candidates would boost Gilead's top line further.

In view of the above positives, we expect the company to perform well in 2014 as well. Forest Laboratories Inc. (NYSE:FRX-Free Report) carries a Zacks Rank #1 (Strong Buy).

Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Click here to subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on BR - FREE

Get the full Report on PAY - FREE

Get the full Report on GILD - FREE

Get the full Report on JNJ - FREE

Get the full Report on FRX - FREE

Follow us on Twitter:  http://twitter.com/zacksresearch

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...