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01/30/15 04:13:43 PM
MARKET MOVERS

Movers: Amazon.com Inc., ManpowerGroup Inc., Deckers Outdoor Corp.

Amazon.com Inc.(AMZN) : Piper Jaffray analyst Gene Munster, who proclaimed Amazon.com, Inc.(NASDAQ: AMZN) as the best stock of 2015, was on CNBCto discuss Amazon's outstanding fourth-quarter results. He also explained the logic behind his $420 price target on Amazon stock. "There was a sea change last night in terms of how the company is messaging its margin profile," Munster said. "That's been a critical issue for investors, getting their heads around how profitability is going to play out and specifically, the CFO mentioned that they have been in heavy investment cycle, been as in past tense, and they have more of a focus on productivity and productivity is basically code for margins and so since that's the first time they have talked about, what that does is give us some optimism that this isn't going to be some roller coaster of margins like we have had with Amazon for the past few years." He continued, "The bottom line is this, is Amazon is more focused on profits, they have robots working on their behalf and I think that that is going to benefit the stock going forward." "It gives us more confidence to use an EBITDA multiple in value," Munster said. "So, our price target is $420 and what we use is a 17 multiple on our 2016 EBITDA. I realize that's a lot of numbers, but the bottom line is given the greater focus on productivity it gives us more comfort in using some EBITDA multiple. Some investors will say we are too early that this is just a head fake, we don't think it is, but that's how we go to $420." View More Analyst Ratings for AMZNView the Latest Analyst Ratings 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



ManpowerGroup Inc.(MAN) : Jan. 30--ManpowerGroup Inc. on Friday reported an increase in earnings but became the latest multinational company to report that sales fell as a result of the sudden surge in the dollar's value. The Milwaukee-based temporary staffing and recruitment company said fourth-quarter net income rose 16% to $117.2 million, or $1.47 a share, from $101.2 million, or $1.25, a year earlier. "Fourth quarter results were unfavorably impacted by 13 cents per diluted share as foreign currencies were relatively weaker compared to the prior year," the company said. Last year's results include a restructuring charge of $19.4 million, or 24 cents a share. Manpower has been restructuring heavily for several years to cut costs and update its business model for an era when many search for jobs or job candidates online. Revenue totaled $5.1 billion, a decrease of 2.5% in U.S. dollars. But sales increased 4.8% if exchange rates had remained constant. ___ (c)2015 the Milwaukee Journal Sentinel Visit the Milwaukee Journal Sentinel at www.jsonline.com Distributed by Tribune Content Agency, LLC



Deckers Outdoor Corp.(DECK) : Deckers Outdoor Corp (NYSE: DECK) shares tumbled Friday a day after the maker of Ugg boots missed expectations for its fiscal third quarter and cut its outlook. The company traded recently down more than 18 percent to $67.26 a share. With about a quarter of the company's revenue coming from its chain of retail outlets, same-store sales fell more than 7 percent in the recent period in a continuing trend. The retail division is a key element of the the company's plans, according to Credit Suisse Christian Buss, who maintained a Neutral rating Friday, cutting his target nearly 10 percent to $90. The "primary growth strategy of a maturing brand is now called into question," according to Buss, with the company is slowing its retail expansion and potentially closing under-performing stores. Decker, which also owns Teva sandals and several other brands, remains heavily dependent on sales of Uggs, which increased 6.5 percent in the recent quarter to $736 million. Twelve of 22 analysts following Decker rate the shares at Buy, with 10 at hold. Decker's shares are down more than 13 percent from a year ago. "The long-term fundamentals are on track" Citi's Corinna Van der Ghinst said Friday, trimming her target 2 percent to $93. The company will post double-digit earnings growth in the next three years on "strong momentum behind its global expansion plans," according to Van Der Ghinst. Jefferies' Randal J. Konik said the fierce winter of 2014 spurred high sales of fur-lined boots and left Decker with "a tough act to follow" in the recent third quarter. Moreover, a portion of the company's recent sales miss stemmed from unavailable inventory, "demonstrating that demand is there," said Konik, who maintained a Buy rating, cutting his price target more than 15 percent to $110. Despite a continued decline in same-store sales at the company's retail segment, Wunderlich's Danielle McCoy noted that profitability per store rose by 40 basis points in the recent period, on tight-fisted promotions. The strategy "maintains the integrity" of the Ugg brand, according to McCoy, who maintained a Buy rating but slashed her target 26 percent to $89. Decker on Thursday said unfavorable foreign exchange rates will result in a break-even fourth quarter, compared with its previous forecast for profits of $0.15 a share. It reiterated a forecast that revenue will increase 10 percent. View More Analyst Ratings for DECKView the Latest Analyst Ratings 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



PACCAR Inc.(PCAR) : Jan. 30--Bellevue-based truck maker Paccar reported a 16 percent increase in net income for 2014, bringing in the second best annual profit in the company's century-long history. "Paccar's North American customers are benefiting from good economic growth, record freight tonnage, lower fuel prices and the excellent operating efficiency of Kenworth's and Peterbilt's industry-leading trucks," company CEO Ron Armstrong said in a statement. For the year, the company reported a profit of $1.4 billion, or $3.82 a share, up from $1.2 billion, or $3.30 a share, in 2013. Truck sales brought in $14.6 billion in revenue, up 12 percent from a year ago. Paccar parts generated $3.1 billion, up 9 percent over last year and a record for the business. Total revenue for the company, including financial services, increased almost 11 percent to nearly $19 billion. During 2014, the company opened a new distribution center in Montreal, Canada, and began construction of a new 160,000-square-foot distribution center in Renton. Paccar delivered 142,900 trucks worldwide -- including its one millionth Kenworth truck. The company delivered 3,600 trucks in South America for the year, a 37 percent increase from 2013. For the quarter, Paccar reported a profit of $394.3 million, or $1.11 cents a share, up 18 percent from $334.2 million, or 94 cents a share, for the same period in 2013. Truck sales brought in the majority of revenue, increasing 13 percent to just under $4 billion. Total revenue for the company during the forth quarter was $5.1 billion, up 11 percent from the same period in 2013. Paccar is one of several heavy- and medium-duty truck producers under investigation by the European Commission for possible anticompetitive practices in the European Union. The commission began investigating the companies in January 2011, and in November sent a "statement of objections" to each suspected company involved, informing them of its suspicions of anticompetitive practices. Paccar is preparing a response, which the commission will review before making any decisions. Friday the company again said it is unable to predict the outcome of the proceedings or estimate the potential fine that may be incurred. Coral Garnick: 206-464-2422 or cgarnick@seattletimes.com. On Twitter @coralgarnick ___ (c)2015 The Seattle Times Visit The Seattle Times at www.seattletimes.com Distributed by Tribune Content Agency, LLC



Virtus Investment Partners, Inc.(VRTS) : Virtus Investment Partners, Inc. (NASDAQ: VRTS) said net income attributable to common stockholders was USD18.9 million or USD2.05 per fully diluted common share for the fourth quarter of 2014, compared with USD24.8 million or USD2.65 per share in the fourth quarter of 2013. For the full year, net income attributable to common stockholders increased 30 percent to USD97.7 million or USD10.51 per share from USD75.2 million or USD8.92 per share in 2013. Operating income in the fourth quarter 2014 was USD36.7 million, an eight percent increase from USD33.9 million in the fourth quarter of 2013. Assets under management, excluding money market assets, were USD56.7 billion at December 31, 2014, an increase of one percent from USD56.2 billion at December 31, 2013. Revenues were USD112.1 million in the fourth quarter, an increase of five percent from USD106.5 million in the fourth quarter of 2013. For the year, total revenues increased 16 percent to USD450.6 million from USD389.2 million, as a result of the 15 percent increase in investment management fees, as well as higher distribution and service fees and administration and transfer agent fees. Virtus Investment Partners is a partnership of boutique investment managers. Additional information can be found at http://www.virtus.com.



Amazon.com Inc.(AMZN) : Amazon.com, Inc.(NASDAQ: AMZN) came out with spectacular results on Thursday after the closing bell, which has sent its stock soaring. James Cakmak, equity analyst at Monness, Crespi & Hardt, was on CNBC to discuss Amazon's fourth-quarter earnings and explain why his firm is still neutral on the stock. "The big thing that investors were looking for that we have been waiting for some time is the margin," Cakmak said. "We have seen the revenues, it has come slightly slower over the course of the year, but the question is - is this a company that's able to be profitable? I think they proved that in the fourth-quarter." He continued, "The quarter in itself exceeded expectations. The first-quarter outlook more in-line to slightly lower, but at the end of the day the question is - is this a sustainable model for them in terms of profitability as we go forward?" "Yeah, I really don't think it's a change of heart. I think he is still sticking to his '97 letter to investors, that mantra of investing for the future," Cakmak said. "So, I don't really see a change in that, but I think that what we are seeing is the company is capable of producing profit as they deliver on the top-line." "We saw the North American margin hit 5.4 percent breakeven internationally, but as they scale they should be able to get there, but when we take a look at it the question is - how quickly will these investments be able to [...] to the top-line? Which is one of the reason we are neutral on the stock at this time." View More Analyst Ratings for AMZNView the Latest Analyst Ratings 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



The Boeing Company(BA) : Boeing reports fourth-quarter net profit rose 19% to $1.47 billion from year-earlier $1.23 billion; expects to deliver record 750 to 755 fuel-efficient commercial jetliners this year despite lower oil prices, for revenue of $94.5 billion to $96.5 billion; photo (M)



QUALCOMM Incorporated(QCOM) : Chip maker Qualcomm reports fiscal-first-quarter net profit rose 5.2% to $1.97 billion from year earlier as revenue rose to $7.1 billion from $6.6 billion on strong sales of Apple iPhones; cuts its outlook for current quarter; photo (M)



 

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