SYS-CON MEDIA Authors: Xenia von Wedel, Peter Silva, Glenn Rossman, Ava Smith, Elizabeth White

News Feed Item

The Zacks Analyst Blog Highlights:Netflix, Amazon.com, Comcast, Time Warner Cable and JTH Holding

CHICAGO, March 21, 2014 /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 the Netflix Inc. (Nasdaq:NFLX-Free Report), Amazon.com Inc. (Nasdaq:AMZN-Free Report), Comcast Corp. (Nasdaq:CMCSA-Free Report), Time Warner Cable Inc. (NYSE:TWC-Free Report) and JTH Holding, Inc. (Nasdaq:TAX-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

Distressing Times for U.S. Pay-TV Industry

Research firm SNL Kagan recently reported that for the first time in history, the U.S. pay-TV market witnessed net subscriber loss in 2013. The U.S. pay-TV market comprises three types of service providers: cable MSOs (multi-service operators), satellite TV operators and fiber-based telecom operators.

Though the cable TV operators were facing severe competitive brunt for a long time, net subscriber gain by the satellite TV and telecom operators were more than offsetting those losses. However, the situation took a complete downturn in 2013.

In 2013, the U.S. pay-TV industry lost 251,000 subscribers despite gaining net 40,000 subscribers in the fourth quarter. The primary reason for this dismal situation is the availability of low-priced online video-streaming services offered by Netflix Inc. (Nasdaq:NFLX-Free Report), Amazon.com Inc. (Nasdaq:AMZN-Free Report) and Hulu.

In order to survive the competition, attaining scale, productivity and effective cost management become essential for the pay-TV operators. This might have led to the proposed merger nation's two largest cable TV operators, namely, Comcast Corp. (Nasdaq:CMCSA-Free Report) and Time Warner Cable Inc. (NYSE:TWC-Free Report). The proposed deal is currently awaiting regulatory approval.

According to SNL Kagan, in 2013, the cable TV operators lost nearly 2 million video subscribers including 388,000 in the fourth quarter alone. Currently, cable MSOs together provide video services to approximately 54.4 million customers in the U.S., commanding a market size of 54%.

Satellite TV operators also facing tough times, but are still adding subscribers. In 2013, satellite TV operators gained 170,000 subscribers compared with 288,000 in 2012. Currently, satellite TV operators provide video services to around 34.3 million customers in the U.S., commanding a market size of 34%.  

On the other hand, telecom operators, which provide fiber-based high-speed video services, are gradually gaining popularity. In 2013, telecom operators registered a net 1.5 million video customers compared with 1.3 million in 2012. Currently, telecom operators provide video services to over 11 million customers, holding nearly 11% of the total market.

Internal dynamics of the pay-TV market are slowly shifting toward fiber-based video offerings of large telecom and satellite TV operators. Moreover, the strong presence of online video streaming providers is posing significant threat to the existing pay-TV business model. Video offering is the core business area of the cable TV operators, which is slipping out of their hands.

JTH Holding Upped to Strong Buy

On Mar 19, Zacks Investment Research upgraded Liberty Tax Service's parent company, JTH Holding, Inc. (Nasdaq:TAX-Free Report) to a Zacks Rank #1 (Strong Buy). Estimates have been rising ever since the company reported strong third-quarter fiscal 2014 results.

Why the Upgrade?

JTH Holding posted strong third-quarter fiscal 2014 (ending Jan 31) on Mar 13. The results included a substantial positive earnings surprise of 4.8%. Following the earnings release, shares of this property and casualty insurer gained nearly 0.9% to close at $27.05 on Mar 19.

JTH Holding's third-quarter fiscal 2014 net income of 28 cents per share was significantly better than 12 cents earned in the year-ago period. The result also exceeded the Zacks Consensus Estimate of 8 cents per share.

Bottom-line growth was largely attributable to increased market share and focus on JTH Holding's high performers.

Moreover, JTH Holding's total revenue amounted to $40.7 million during the reported quarter, escalating 8.3% year over year. The increase in revenues was attributable to higher royalties and advertising fees, financial products and tax preparation fees. These were driven by increased returns and average net fees.

Additionally, total long-term debt amounted to $22 million at the end of third-quarter fiscal 2014, reflecting an improvement from $24.3 million at fiscal 2013-end.

Also, the company is witnessing rising earnings estimates following its strong financial results. The Zacks Consensus Estimate for 2015 has increased 5.6% year over year to $1.90 per share. For 2014, the Zacks Consensus Estimate is currently pegged at $1.60 per share.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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 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. 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 NFLX - FREE

Get the full Report on AMZN - FREE

Get the full Report on CMCSA - FREE

Get the full Report on TWC - FREE

Get the full Report on TAX - 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

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.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

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
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 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
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 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...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
Software-driven innovation is becoming a primary approach to how businesses create and deliver new value to customers. A survey of 400 business and IT executives by the IBM Institute for Business Value showed businesses that are more effective at software delivery are also more profitable than their peers nearly 70 percent of the time (1). DevOps provides a way for businesses to remain competitive, applying lean and agile principles to software development to speed the delivery of software that ...
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
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...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...