Zacks Analyst Blog Highlights: Wipro Ltd., Robert Half International Inc., Monarch Casino & Resort Inc., Forest Labs, Inc. and Critical Therapeutics Inc

Business Wire, Oct 27, 2008

CHICAGO -- 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: Wipro Ltd. (NYSE: WIT), Robert Half International Inc. (NYSE: RHI), Monarch Casino & Resort Inc. (Nasdaq: MCRI), Forest Laboratories Inc. (NYSE: FRX) and Critical Therapeutics Inc. (Nasdaq: CRTX).

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 Friday's Analyst Blog:

Wipro Warrants Cautious Outlook

Wipro (NYSE: WIT) reported in-line revenues and in-line earnings in 2Q09, which was well supported by large deal wins, geographic expansion, alliances and partnerships.

We remain concerned that margins may continue to be pressured for currency fluctuations and acquisition-related integration issues in the near-term. However, there has been minimal reduction in operating margins despite salary hikes to onsite employees. It has also provided improved revenue guidance for 3Q09 and integration of its acquisitions seems to be well on track.

Robert Half Looks to Get Whole

Robert Half International Inc. (NYSE: RHI) headquartered in California, is one of the world's largest providers of temporary staffing, project professionals, and permanent placement services to the finance and accounting industries. Although the company benefited from double-digit revenue growth in 2007, the global financial crisis and resultant economic slowdown is negatively impacting staffing companies.

Robert Half's operating margin is contracting, primarily due to weak operations at Protiviti, which embarked on an aggressive global staff expansion program at the same time revenues came under pressure from reduced client demand for compliance-related employees. The Hold rating is maintained.

Monarch Casino Not Without Risks

We continue to believe that Monarch Casino & Resort Inc. (Nasdaq: MCRI) holds significant long-term value, and that the company is taking the appropriate steps to position itself to benefit, given a future increase in demand. That said, in light of the challenging operating environment faced by the company, we do not expect significant near-term share price appreciation.

It is our view, however, that the company continues to have significant growth potential, either via new development on a vacant land parcel at its Atlantis property or via external development/acquisition outside the Reno, Nevada market. Despite these positives, we expect the company to continue to face a very challenging operating environment in 2008 and into 2009. The economic environment in the Reno area remains weak, with unemployment up and average home prices down.

Forest Labs Sees Generic Pressure

On October 21, Forest Laboratories Inc. (NYSE: FRX) announced financial results for the second quarter of fiscal 2009. Revenue and EPS came in at $992.5 million and $0.80. This was well ahead of our estimates of $980 million and $0.71 and the Street estimate of $975 million and $0.71.

Management again revised full-year adjusted-EPS guidance upwards and now looks for EPS of $3.30 to $3.40. This is up from previous guidance of $3.20 to $3.30 which was revised from initial guidance (on April 14th) of $3.10 to $3.20. We forecast full-year EPS of $3.35 on revenue of $3.997 billion.

Critical Therapeutics Stays Sub-$1

Critical Therapeutics Inc. (Nasdaq: CRTX) is a biopharmaceutical company focused on products for respiratory, inflammatory, and critical care diseases. The company has two products, Zyflo and Zyflo CR for asthma, on the market. With the completion of the restructuring and the signing of co-promotion agreement with Dey LP, we believe both topline and bottomline will improve in the coming quarters.

In the third quarter, sales of Zyflo CR/Zyflo improved to $6 million, exceeding our expectations by $1 million. We are pleased to see the increase in prescription volume over the last five quarters which is due to the combined efforts of Dey and Critical Therapeutics. However, we think the strategic shift and management change could have a negative impact on the performance of Zyflo/Zyflo CR going forward.

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