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SOURCE Zacks Investment Research, Inc.
CHICAGO, Aug. 19, 2014 /PRNewswire/ -- Zacks Equity Research highlights MKS Instruments (Nasdaq:MKSI-Free Report) as the Bull of the Day and Roundy's (NYSE:RNDY-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onFord Motor Co. (NYSE:F-Free Report), Tesla Motors, Inc. (Nasdaq:TSLA-Free Report) and Gentherm Inc. (Nasdaq:THRM-Free Report).
Here is a synopsis of all five stocks:
Profit margins soared in the quarter thanks to favorable product mix and operating leverage. This prompted analysts to revise their estimates significantly higher for both this year and next, sending the stock to a Zacks Rank #1 (Strong Buy).
MKS Instruments develops products that measure, control, power and monitor critical parameters of advanced manufacturing processes. The company's primary end markets are manufacturers of capital equipment for semiconductor devices, and for other thin film applications including flat panel displays, solar cells and light emitting diodes (LEDs), data storage media and other advanced coatings.
MKS Instruments reports its results in four segments:
Advanced Manufacturing Capital Equipment: (64% of gross revenue year-to-date)
Asia Region Sales & Service Operations: (25%)
Analytical Solutions Group: (6%)
Europe Region Sales & Service Operations: (5%)
MKS Instruments reported better-than-expected second quarter results on July 23. Adjusted earnings per share came in at 42 cents, crushing the Zacks Consensus Estimate by 50%. It was 200% higher than the same quarter last year.
Roundy's (NYSE:RNDY-Free Report) delivered disappointing second quarter results on August 6 as same-store sales and profit margins fell. Management also provided weak full year guidance, prompting a flurry of negative estimates revisions from analysts. This sent the stock to a Zacks Rank #5 (Strong Sell).
Roundy's operates 148 grocery stores and 97 pharmacies under the Pick 'n Save, Copps, Metro Market and Mariano's retail banners in Wisconsin and Illinois. The company was founded in Milwaukee in 1872.
Roundy's reported its second quarter results after the bell on August 6. Adjusted earnings per share came in at -$0.06, which was well below the Zacks Consensus Estimate of +$0.09. It was also significantly below the +$0.30 it earned in the same quarter last year.
Net sales from continuing operations rose 12% to $971.9 million, but this was driven by new store additions. Same-store sales actually fell -2.2%.
Ford Developing Right-Hand Drive Mustang for 25 Markets
Ford Motor Co. (NYSE:F-Free Report) has developed a right-hand drive version of the iconic Mustang. While the car is currently a prototype that is undergoing various development tests, its final version will be a valuable addition to Ford's global product portfolio as it will open doors to many right-hand drive markets.
While the Mustang is highly popular, with over 100 fan clubs globally, its sale outside North America was limited due to the elimination of right-hand drive markets. While Ford sold over 9.2 million Mustangs in the U.S. since 1964, only 0.16 million cars were sold outside North America in the same period. Thus, the right-hand drive Mustang, which will be exported to over 25 markets including the United Kingdom, Australia and South Africa, should significantly increase the car's sales outside North America.
Ford Mustang is one of the very few cars to stay in production for 50 years. This alone exhibits the immense popularity of the car.
Ford unveiled the sixth generation of the Mustang in Dec 2013 and started taking orders for the eagerly awaited car in May 2014. Deliveries of the car will start later this year and it will be available at Ford dealerships in the U.S. from fall. Thereafter, Ford has plans to sell the car in over 110 countries globally.
The importance of right-hand drive markets cannot be ignored in the highly competitive automotive market. Electric carmaker Tesla Motors, Inc. (Nasdaq:TSLA-Free Report) also launched the right hand version of Model S in the U.K. and Hong Kong recently.
Ford currently carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks that are worth considering include Tesla and Gentherm Inc. (Nasdaq:THRM-Free Report). While Tesla sports a Zacks Rank #1 (Strong Buy), Gentherm carries a Zacks Rank #2 (Buy).
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