For Immediate Release
Chicago, IL – July 05, 2016 – Zacks Equity Research highlightsBristol-Myers Squibb Company (NYSE:BMY) (BMY) as the Bull of the Day and Deutsche Bank (DE:DBKGn) (DB) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet (NASDAQ:GOOGL) Inc. (GOOGL), Blucora, Inc. ( BCOR) and Internap Corporation (INAP).
Here is a synopsis of all five stocks:
In the current uncertain market environment big pharma stocks are worth considering given their defensive nature, attractive dividend yields and solid growth opportunities. Bristol-Myers reported excellent results, sending estimates higher and the stock to a Zacks Rank #1 (Strong Buy).
About the Company
Headquartered in New York, Bristol-Myers Squibb Company ( BMY) is a global specialty biopharmaceutical company focused on discovering, developing and delivering innovative medicines for serious diseases. Their treatments help people fight against diseases such as cancer, cardiovascular disease, hepatitis B and hepatitis C, HIV/AIDS and, rheumatoid arthritis.
Strong Q1 Results & Upgraded Guidance
The company reported strong results for Q1, beating on top and bottom lines, and also raised their guidance for the year. Operating earnings (excluding special items) of $0.74 per share easily beat the Zacks Consensus Estimate of $0.66. Earnings were also up 4% from the same quarter last year.
Total revenues of $4.4 billion also beat the Zacks Consensus Estimate of $4.2 billion. Revenues increased 9% year over year thanks mainly to strong product sales.
The management raised its earnings guidance for 2016. They now expect earnings in the range of $2.50 to $2.60 per share, up from the previous guidance of $2.30 to $2.40 per share.
Analysts have been raising their estimates for the stock. Zacks Consensus Estimates for the current and next year have surged to $2.60 and $3.33 per share, from $2.40 and $3.10 before the results.
The company beat the Zacks Estimates in all of last four quarters with an average quarterly surprise of 28%. In fact looking at the longer-term performance, it has delivered a beat consistently in every quarter since 2013.
Germany’s flagship bank is going through tough times. The bank, which was already struggling with investment banking and Brexit woes saw its stock plunge to its lowest price in more than 30 years, when the IMF branded it the riskiest globally significant bank and the Fed objected to the capital plans of its US unit which failed the stress test.
About the Company
Headquartered in Frankfurt, Deutsche Bank (DB) is the largest bank in Germany and one of the largest financial institutions in Europe and the world, with assets totaling €1.74 trillion as of Mar 31, 2016. It offers a wide variety of investment, financial and related products and services to private individuals, corporate entities and institutional clients around the world.
Disappointing First Quarter Results
Deutsche Bank reported net income of €236 million ($260.3 million) in the first quarter of 2016, down 57.8% year over year. Income before income taxes came in at €579 million ($638.6 million), down 60.9% year over year.
The quarterly results were hurt by lower revenues and higher loan provisions, partly offset by the reduction in non-interest expenses.
Falling Estimates
The bank has seen a sharp plunge in earnings estimates as a result of weak performance and continued woes.
Zacks Consensus Estimates for the current and next year EPS are now $1.38 and $2.21 respectively down from $3.10 and $2.85, just 60 days ago.
Additional content:
Google Buys Clean Energy to Power European Data Centers
Data centers require a constant and unwavering supply of power. Recently, Alphabet Inc. ( GOOGL) owned search engine giant Google announced that it has bought 12 years worth of future power output for its datacenters in Europe from two wind power farms in Norway and Sweden, which have yet to be constructed.
Additionally, the company also mentioned in a separate statement that it has consented to purchase power from a smaller wind farm project in Sweden, which takes the total acquired output to 236 megawatts (MW).
The Deals in Detail
The 50-turbine, 160-megawatt Telleness wind farm was sold by Zephyr and Norsk Vind Energi and is expected to attain its optimum capacity by late 2017, which will also make it the second largest wind power farm in Norway.
On the other hand, the 22-turbine Sweden-based wind farm is expected to be complete by early 2018.
However, no information was available on the value of the deals.
Focus on Carbon Neutrality
Google is a carbon-neutral company. It is committed to power all of its operations through renewable energy sources, hence doing its part to create a cleaner and greener planet. In this regard, Marc Oman, EU Energy Lead, Google Global Infrastructure, noted that this wind power deal, which is Google’s first in Norway and the biggest to date in Europe, is a step toward fulfilling that commitment.
At present, Alphabet has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the broader technology space include Blucora, Inc. (BCOR) and Internap Corporation ( INAP), each carrying a Zacks Rank #2 (Buy).
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BRISTOL-MYERS (BMY): Free Stock Analysis Report
DEUTSCHE BK AG (DB): Free Stock Analysis Report
ALPHABET INC-A (GOOGL): Free Stock Analysis Report
BLUCORA INC (BCOR): Free Stock Analysis Report
INTERNAP NETWRK (INAP): Free Stock Analysis Report
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