Zacks Analyst Blog Highlights: Trident Microsystems, Inc., Sony, American Axle & Manufacturing Holdings Inc., D.R. Horton, Inc. and Cache, Inc.
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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: Trident Microsystems, Inc.
(NASDAQ: TRID), Sony (NYSE: SNE), American Axle & Manufacturing
Holdings Inc (NYSE: AXL), D.R. Horton, Inc. (NYSE: DHI) and Cache,
Inc. (NASDAQ: CACH).
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Here are highlights from Wednesday's Analyst Blog:
Trident Micro Pressured in Asia
Trident Microsystems, Inc. (NASDAQ: TRID) is a leader in
integrated circuits for Digital Television. While its products are
used in all kinds of displays, LCD television is its most important
growth market as LCD televisions take share from plasma in the market
for larger screens as well as traditional CRT television sets of all
sizes.
Trident has secured important design wins with a number of leading
manufacturers of LCD televisions, including Sony (NYSE: SNE), and
Sharp. The company reported fourth quarter results. Revenue was in
line with our expectations. However, GAAP operating expenses were much
higher than expected.
American Axle Driven to Cut Costs
On July 25, American Axle & Manufacturing Holdings Inc. (NYSE:
AXL) reported a net loss of $12.49 per share compared to a net profit
of $0.66 per share in the second quarter of 2007. The company's focus
on diversification and geographical expansion is helping it to grow.
AXL's recent backlog of new and incremental business, to be
launched through 2009 to 2013, is $1.4 billion in future annual sales.
About 85% of which has been sourced to AXL's non-US facilities.
Following the new labor agreement with United Auto Workers (UAW), the
company expects to achieve annual savings in excess of $350 million.
D.R. Horton Concerns Continue
We expect D.R. Horton, Inc. (NYSE: DHI) to report a loss of $0.92
per share in the third quarter, compared to earnings of $0.35 per
share in the prior year period. This is due to weaker margins as well
as charges for inventory impairments and write-offs of deposits
related to land option contracts.
Year-to-date, the company has been successful in generating cash
flow, lowering land lots owned and optioned and cutting the number of
homes in inventory. Also, the company announced that it would cut the
quarterly dividend by half to $0.075 per share in an effort to
preserve $94.5 million in annual capital. For the remainder of FY08,
we expect gross margin pressure to continue from weaker average
selling prices and increased incentive use. Our target price is
$11.50.
Cache Share Price Reflects Ups
Cache, Inc. (NASDAQ: CACH) continues to perform well in the
difficult macro environment that has created headwinds that are
negatively affecting the consumer. These headwinds include falling
house prices, record levels of debt, and rising food and energy
prices, which will continue to offset the strength in the company's
core Cache store concept, its direct sourcing efforts, and its solid
balance sheet. We reiterate our Hold rating.
The company's choice to close its poorly performing Lillie Rubin
stores was a smart strategic decision that should lead to better
results in future quarters. The acquisition of its largest supplier
Adrienne Victoria Designs will help the company improve its direct
sourcing efforts and expand its merchandising efforts.
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