Zacks Analyst Blog Highlights: NTT DoCoMo, Citigroup, SanDisk, Array and United Parcel Service, Inc

Business Wire, Feb 4, 2009

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: NTT DoCoMo (NYSE: DCM), Citigroup (NYSE: C), SanDisk (NASDAQ: SNDK), Array (NASDAQ: ARRY) and United Parcel Service, Inc. (NYSE: UPS).

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 Tuesday's Analyst Blog:

NTT DoCoMo a Buy, Post-Report

NTT DoCoMo (NYSE: DCM), the largest mobile service provider in Japan, announced third quarter (ended December 31) fiscal 2009 financial results below our estimates. Performance was impacted by higher depreciation charges and other operating expenses.

The company currently maintains over 50% share of the Japanese wireless market. DCM's discount-priced service plans, together with installment-based systems for selling handsets, progressed as customer churn rates improved significantly. Stronger foreign currency rates, with respect to the Yen against Dollar, have also raised valuation levels of DCM ADR shares. Operationally, the company upgraded 98% of its total coverage area with 3G HSDPA technologies, and its emerging 4G LTE network is likely to be installed by 2010.

End of Citi's Field of Dreams?

On the shirt tails of its new plane fiasco, management of Citigroup (NYSE: C) has now announced it is exploring the potential for not continuing with a marketing deal with the New York Mets.

It appears Citigroup has made no final decision, for the potential to attempt to void the 20-year agreement, which includes naming the Mets' new baseball stadium "Citi Field." For its side of the agreement, Citigroup would have to pony up $400 million.

SanDisk Deals with Slow Demand

SanDisk (NASDAQ: SNDK) is a producer of flash memory (memory that holds the data and does not need constant rewriting) that is used in small memory devices, MP3 players (like the iPod), digital cameras, cell phones, and a new and growing application -- solid sate memory devices. There are relatively few makers of the devices, but Toshiba (a partner with Sandisk) and Samsung are probably the largest producers.

SanDisk and Toshiba jointly own a large manufacturing plant to produce the memory. Since demand for the chips has declined, this plant is producing at about 70% of its capacity, a level that is not profitable. SanDisk has agreed to sell part of this plant to Toshiba, mark the inventory to market, write-off goodwill from acquisitions and generally clean house.

Array Bio Must Conserve Cash

Array (NASDAQ: ARRY) reported fiscal 2Q09 (ended December 31, 2008) financial results on February 2, 2009.

Net revenue came in at $7.7 million for the second quarter of fiscal 2009, compared to revenue of $8.4 million for the same period in fiscal 2008. Research and development spending was $23.7 million for the quarter, compared to $20.5 million during the same quarter of fiscal 2008. Net loss was $37.8 million, or ($0.79) per share, for the second quarter, compared to a net loss of $20.4 million, or ($0.43) per share, for the same quarter in fiscal 2008.

UPS Reports a Shortfall

Today, United Parcel Service, Inc. (NYSE: UPS) announced 4th quarter diluted EPS before nonrecurring items of $0.83, a decline of 22% from the $1.07 posted in last year's 4th quarter, also before nonrecurring charges. This compares to consensus of $0.85 and our estimate of $0.88, with the shortfall largely caused by lower-than-expected revenues.

Total revenues fell 5% year over year to $12.7 billion from $13.4 billion in the comparable 2007 period, as all business segments suffered declines due to the global economic slowdown, with the company posting revenue decreases of 4% in US domestic package, 8% in international package, and 6u% in supply chain & freight. Consolidated average daily package volume fell 3.1% with the steepest decline in next day air at 8.6%, while average revenue per piece dropped 1.0%.

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.