Dr. Pepper Snapple Group, Inc. (DPS) reported third quarter results on Nov 5 which surprised on the Zacks Consensus Estimate by 10.20%. It was the fourth earnings surprise in a row.

Earnings per share for the beverage company were 54 cents compared to the Zacks Consensus Estimate of 49 cents.

Net sales, however, fell 4%. The company said it was too early to see the economic recovery translate into higher beverage sales. Liquid refreshment beverage trends remained negative in the quarter.

2009 Guidance

Dr. Pepper Snapple forecasts sales to be in the range of negative 3% to 4%. Earnings per share are expected to be between $1.92 and $1.96 per share.

The current 2009 Zacks Consensus Estimate calls for $1.95 per share.

Value Fundamentals

Dr. Pepper Snapple is a Zacks #2 Rank (buy) stock. It still has attractive value characteristics. It is trading with a forward P/E of 13.5. The company's price-to-book ratio is 2.31. Dr. Pepper Snapple also has a stellar 1-year return on equity (ROE) of 16.1%.

Read the June 11 article.

Update to Previous Value Zacks Rank Buy Stocks

The Andersons, Inc. (ANDE) is scheduled to report third quarter earnings after the bell on Nov 4. Despite a slowdown in the agriculture sector analysts are bullish on the quarter and expect 2009 year over year earnings growth of 23.80%. Read the full article.

Travelers Companies Inc. (TRV) recently raised full year guidance as it surprised on estimates for the third time in the last 4 quarters. The company is trading with a forward P/E of just 8.9. Read the full article.

Harbin Electric, Inc. (HRBN) is growing quickly as it takes full advantage of the Chinese stimulus plan. Harbin has a PEG ratio of just 0.78. Read the full article.

Steve Madden Limited (SHOO) is hot. The company posted record sales in the third quarter and has raised 2009 earnings guidance each of the last 3 quarters. SHOO is attractively valued, trading at 14.2x forward earnings. Read the full article.

Zacks Investment Research

Steve Madden Limited (SHOO) is hot. The company posted record sales in the third quarter and has raised 2009 earnings guidance each of the last 3 quarters. SHOO is attractively valued, trading at 14.2x forward earnings. Company Description Steve Madden manufactures footwear and accessories for men, women and children that are sold through 88 company-owned retail stores, [...]

(SHOO) Steve Madden Limited – Posted Record Sales in the Third Quarter

For Immediate Release

Chicago, IL – November 6, 2009 – Four free stock picks are being made available today on Zacks.com. The industry’s leading independent research firm highlights one Zacks #1 Rank Strong Buy or a Zacks #2 Rank Buy stock for each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum, and Value.

The four highlighted picks are: Odyssey HealthCare, Inc. (ODSY), Nu Skin Enterprises (NUS), HealthSouth Corp. (HLS) and Steve Madden Limited (SHOO).
    
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Here is a summary of today's selected stocks that are now highly rated by Zacks:          
       
Aggressive Growth – Odyssey HealthCare, Inc. (ODSY)
Odyssey HealthCare, Inc. is surging following its third consecutive earnings surprise, this time topping forecasts by 40%.

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Growth & Income – Nu Skin Enterprises (NUS)
Nu Skin Enterprises recently posted record results for the third quarter. Earnings per share of 41 cents topped the previous year’s 26 cents and matched the Zacks Consensus Estimate. Revenue was a record $334.2 million, an increase of 8% year-over-year.

Zacks Guide to Growth & Income Investing (free!): http://at.zacks.com/?id=4310
  
Momentum – HealthSouth Corp. (HLS)
HealthSouth Corp. is producing strong results by growing its revenue and more effectively managing its costs.

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Value – Steve Madden Limited (SHOO)
Steve Madden Limited is hot. The company posted record sales in the third quarter and has raised 2009 earnings guidance each of the last 3 quarters. SHOO is attractively valued, trading at 14.2x forward earnings.

Zacks Guide to Value Investing (free!): http://at.zacks.com/?id=4312

How to Regularly Access Picks from the Zacks Rank Discovery for Free:  http://at.zacks.com/?id=5607
 
Underlying the four free stock picks is a simple truth that first appeared in a Financial Analysts Journal article published in 1979. Leonard Zacks, a Ph.D. in Mathematics from M.I.T. found that "earnings estimate revisions are the most powerful force impacting stock prices."  Zacks #1 Rank is awarded to a stock when analysts sharply upgrade their estimates of what the company will earn.

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Aggressive Growth Stocks:
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Growth & Income Stocks:
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Phone: 312-265-9149

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Contact: Michael Vodicka
Phone: 312-265-9226

or

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Contact: Tracey Ryniec
Phone: 312-265-9232

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Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
 

 

Zacks Investment Research

Steve Madden Limited (SHOO) is hot. The company posted record sales in the third quarter and has raised 2009 earnings guidance each of the last 3 quarters. SHOO is attractively valued, trading at 14.2x forward earnings.

Company Description

Steve Madden manufactures footwear and accessories for men, women and children that are sold through 88 company-owned retail stores, department stores, specialty retailers and at the company's web site, www.stevemadden.com.

It is also the licensee for footwear for Elizabeth and James and l.e.i. which is sold at Wal-Mart, footwear, handbags and belts for Fabulosity and Olsenboye, and for handbags and belts for Betsey Johnson and Daisy Fuentes.

Steve Madden Posted Record Sales in the Third Quarter

Investors knew the news was going to be good from Steve Madden when it reported on Nov 3 because the company pre-announced its earnings and sales results on Oct 20.

As a result of the pre-announcement, analysts raised estimates on the quarter to the 97 cents the company said it was going to earn. Hence, it appears the company only "met" estimates when, in fact, it did much better.

Sales rose 9.4% to $140.1 million from $128.1 million in the year ago period. The wholesale business is what drove the quarter, with sales climbing 15% to $112 million from $97.3 million in the third quarter of 2008.

The strong divisions were Madden Girl, Steven by Steve Madden, Steve Madden Women's and Steve Madden Men's wholesale footwear segments. Boots were the driver of footwear sales in the quarter.

The newly acquired Madden Zone, formerly SML Brands, as well as the new Elizabeth and James brand, also boosted the quarter.

Retail was slightly weaker, falling to $28.2 million from $30.7 million in the year ago period. Same store sales also declined 7.6% compared to a 7.8% increase last year.

Gross margin, however, improved to 44.0% from 41.4% in the third quarter of 2008.

2009 Outlook

Steve Madden is bullish about the remainder of the year. It expects net sales to rise to the range of 7% to 8% over 2008. When it pre-announced on Oct 20, the company raised full year guidance to the range of $2.55 to $2.65 per share from the previous range in July of $2.05 to $2.15 per share.

Zacks Consensus Estimates Rise

Analysts are equally as optimistic about the company's future. The fourth quarter Zacks Consensus Estimate has jumped 11% in just the last 7 days to 61 cents from 55 cents.

For 2009, analysts have raised estimates to the high end of the company's guidance range to $2.64 from $2.61 per share.

The estimate revisions continue into 2010 with 1 out of 5 covering analysts raising estimates in the last week to $2.83 from $2.68 per share.

Value Fundamentals

Steve Madden is a Zacks #1 Rank (strong buy) stock. It is trading with a price-to-book ratio of 2.67. The company has an outstanding 5-year average return on equity (ROE) of 15%.

Zacks Investment Research