Zacks Analyst Blog Highlights: Motorola, Merck & Co., Canadian Pacific Railway Limited, B/E Aerospace and Honeywell.

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: Motorola (NYSE: MOT), Merck & Co. (NYSE: MRK), Canadian Pacific Railway Limited (NYSE: CP), B/E Aerospace (NASDAQ: BEAV) and Honeywell (NYSE: HON).

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:

Motorola Troubles Continue

Motorola (NYSE: MOT) announced 4th quarter and full-year 2008 results this morning with disappointing results. Handset sales for the quarter registered 19.2 million units, down 53% year-over-year from 40.9 million units for the same reporting period last year. All business segments, except Enterprise Mobility Solutions, experienced precipitous declines in revenue.

In addition, the company announced that it will suspend its dividend to shareholders and confirmed its replacement for the CFO position as part of further operational changes. Positive events included improved overall gross margins and continued cash flow generation. Gross margins increased to 29.7% from 26.3% last quarter, primarily a result of product mix towards higher margin network solution platforms and reduced handset sales.

Merck Posts In-Line 4th Quarter

Merck & Co. (NYSE: MRK) reported 4th quarter 2008 financial results today and reaffirmed previously issued guidance for 2009. Fourth quarter revenue of $6,032 million was inline with our expectations of $6,039 and down 3% from the fourth quarter of 2007.

Foreign exchange negatively affected revenue in the quarter by 3%. Sales of Singulair and Gardasil continue to show significant softening, and Cozaar/Hyzaar sales in the most recent quarter were significantly weaker than expected. This was offset by stronger than expected sales of Isentress and other smaller products.

Canadian Pacific Ests Slashed

We are maintaining our Hold on Canadian Pacific Railway Limited (NYSE: CP), but cutting our target price to $30.

CP’s 2008 4th quarter net earnings before nonrecurring items of C$178 million dropped 4% compared to the prior-year quarter due to declining freight volumes and higher expenses from the DM&E acquisition on October 30, 2008.

B/E Aerospace in Holding Pattern

As anticipated, B/E Aerospace (NASDAQ: BEAV) reported Q4-08 revenues of almost $527 million and a per share loss of ($2.59); excluding a ~ $390 million pre-tax non-cash goodwill impairment charge, EPS were 0.47, which included $0.06/share of acquisition, integration and transition (AIT) costs, without which, EPS would have been $0.53.

Net sales rose 13.7%, driven by BEAV’s 28 July 2008 acquisition of Honeywell’s (NYSE: HON) Consumables Solutions (HCS) distribution business; on a pro-forma basis, sales declined 12.6%.

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.

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

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.