CHICAGO - (Business Wire) 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: Sanofi-Aventis (NYSE: SNY), Biogen-Idec (Nasdaq: BIIB), Marathon Oil Corporation (NYSE: MRO), Shell (NYSE: RDS.A) and StatoilHydro (NYSE: STO). Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Thursday’s Analyst Blog:
Sanofi Doing Deals
Sanofi-Aventis (NYSE: SNY) posted EPS of €5.36 in 2008, an increase of just 2% from 2007. Revenue fell 1% in 2008 as a number of products experienced significantly declining sales including Ambien, Tritace and Copaxone.
For 2009 we expect revenue growth to return, as generic erosion is more than offset by strong growth of Taxotere, Lantus, Avapro and the vaccines business. We expect revenue growth of 6% in 2009 and EPS of €5.93 ($4.10), up 11% from 2008. EPS should continue to benefit from strong contributions to royalty income from U.S. Plavix sales and operating margin improvement as a result of cost-cutting. We also expect foreign exchange to benefit both revenue and EPS in 2009 as the U.S. dollar strengthens against the Euro.
Generic competition will continue to be a concern, however. While we expect new product launches to make significant revenue contributions in the early part of the next decade, they will not be enough to compensate for increased generic erosion. Gross margins will likely contract now that Lovenox and Plavix (E.U.) sales are at or near peak levels, combined with softer pricing on current and soon-to-be off-patent drugs.
We expect Sanofi to continue look to contain operating costs in order to grow EPS in the face of weakening sales of some of its biggest products. This should help keep EPS at positive, albeit modest, growth over the next few years.
We also expect the company to look to grow revenue through additional partnering deals and acquisitions. We expect Sanofi to look for a small-to-mid sized deal in the high-growth biotech space in order to help plug revenue holes left by patent expirations. We believe Biogen-Idec (Nasdaq: BIIB) makes the most sense as an acquisition candidate.
Marathon Leaving Irish Project
On Wednesday, June 24, 2009, Texas-based Marathon Oil Corporation (NYSE: MRO) announced the sale of its interest in the Corrib offshore natural gas development project on Ireland's northwest coast, a joint-venture between Shell (NYSE: RDS.A), StatoilHydro (NYSE: STO) and Marathon. The company has reached an agreement in this regard with Alberta-based oil and gas company Vermilion Energy Trust.
Per the agreement, Marathon will sell its wholly owned Irish subsidiary, Marathon International Petroleum Hibernia Ltd. (having an 18.5% interest in the Corrib development) to Vermilion in a deal worth between $235 million and $400 million, subject to the timing of first commercial gas at Corrib.
Under the terms of the deal, Vermilion will pay Marathon an initial payment of $100 million at the closure of the transaction, expected during the second half of 2009, subject to government and regulatory approvals. The remaining portion will be due at the time of first production from the site, which is expected between late 2010 and late 2011. Additionally, Vermilion is slated to invest up to $300 million to complete the facilities needed to reach the gas.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.
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: http://at.zacks.com/?id=2677
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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 at http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
