New Research Reports On NFLX, AXP, GM & Others

Friday, July 22, 2016

Today's Research Daily featured updated research reports on 16 companies issued by our analyst team, including on Netflix (NASDAQ:NFLX) (NFLX), American Express (NYSE:AXP) (AXP) and General Motors (NYSE:GM) (GM). .

Netflix shares took beating following the Q2 earnings report, with questions about the company's growth outlook taking center stage. The company not only missed subscriber growth expectations for the second quarter, but also offered a muted user growth outlook for the rest of the year, citing the impact of price hikes on grandfathered subscribers. The analyst discusses the pros & cons of the Netflix story in the research report published today. While international expansion and original content will drive subscriber growth, competition is growing and costs are rising. (You can here .)

American Express lost ground following the company's strong Q2 earnings report where the compnay handily beat EPS and revenue estimates. The issue appears to be investors' concerns about rising customer acquistion expenses. This issue notwithstanding, the analyst likes the company’s strong capital position, improved credit profile, diversified revenues, and leading position in the card payment industry. (You can here .)

General Motor shares appear to have finally hit their stride following the automaker's blowout June quarter results where it beat on both the top- and bottom-lines. The analyst is encouraged by GM’s comprehensive capital allocation strategy which will return value to shareholders. The company will also benefit from its U.S. investments, focus on the emerging markets and new product launches. (You can here .)

Other noteworthy reports we are featuring today include Abbott (ABT), Yahoo (NASDAQ:YHOO) (YHOO) and Quest Diagnostics (NYSE:DGX) (DGX).

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  Sheraz Mian

  Director of Research

  Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include portfolios.

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  Today's Must Read/h6

  Featured Reports/h6

  The Zacks analyst is impressed with Abbott's Q2 results driven by recently launched products.

  The covering analyst believes that rising antitrust issues relating to licensing fees and chipsets in many countries is a concern for the company.

  The Zacks analyst believes that focus on cost reduction and keeping dividend flat helped Kinder Morgan tide over ongoing weakness in the sector and post in-line earnings in Q2.

  Moto Z phones launched exclusively for Verizon have stoked huge interest and can boost revenues going forward, according to the covering analyst.

  The Zacks analyst thinks the VocaLink acquisition will help the MasterCard provide enhanced electronic payments service to its customers and deepen its reach in the U.K.

  Humana upped 2016 guidance reflecting a better-than-expected performance year to date for its individual Medicare Advantage and Healthcare Services businesses.

  The covering analyst believes that higher margins aided Yum! Brands to beat on Q2 earnings. The company also upped its profit outlook on the back of strong first-half results.

  New Upgrades/h6

  The Zacks analyst thinks exits from public exchanges in unprofitable markets will save UnitedHealth from losses. Also, its Health Services segment Optum is driving growth, led by recent deals.

  The covering analyst thinks that better-than-expected performance in Q2 reflects its sustained focus on core diagnostic information services business. However, the sales outlook cut is a concern.

  With a balanced organic and inorganic growth model, a lean and flexible cost structure, and an agile and entrepreneurial management team, Amphenol recorded healthy second-quarter 2016 results.

  New Downgrades/h6

  Yahoo's revenue growth was driven by the Maven and Display businesses and sale plans remain on track. However, margins declined sharply.

  The Zacks analyst stresses that Starbucks' fiscal third-quarter sales growth was hurt by slowdown of comps and traffic trends in the flagship U.S. market due to changes in the rewards program.

  The covering analyst believes that DISH Networks worst ever quarterly drop in subscribers in the pay TV segment was due to frequent conflicts with broadcasters.

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  Written By: Zacks Investment Research