The mighty American department store was left for dead in the Great Recession but the crisis brought out much needed changes that have resurrected the sector.

Macy’s (M – Analyst Report) is expected to grow earnings by 41% in fiscal 2010.

The Holidays Were Good
Macy’s operates 850 Macy’s and Bloomingdale’s stores in 45 states. On January 6, the company reported December same-store sales rose 3.9%. Total sales for the holiday month rose 4.5% to $4.6 billion. For the entire November/December holiday period, same-store sales rose 4.6%.

Macy’s kept the momentum it had seen earlier in the year. Through year to date, total sales were up 6.6% to $22.2 billion and same-store sales climbed 4.7%. Online sales also continued to be a hot component of total sales as they jumped 28.4% in December and were up 28.8% year-to-date in 2010.

Guidance Reaffirmed for Fourth Quarter continue »

Earnings estimates for BCE (BCE – Analyst Report) have been surging over the last several months as BCE has delivered three consecutive positive earnings surprise.

The Canadian communications company produces strong cash flow and has been rewarding its shareholders through stock buy backs and dividend increases. It currently yields 5.1% and is a Zacks #2 Rank (Buy) stock.

Third Quarter Results
Third quarter earnings per share came in at 82 cents, well ahead of the Zacks Consensus Estimate of 72 cents. Operating revenues increased 1.3% year-over-year. Not surprisingly, much of this growth was driven by its wireless division (up 8.1%), while its wireline segment continued to fall (down 0.9%). Meanwhile, operating income increased 11.1% while free cash flow was up a solid 25.1% to $812 million.

Returning Value to Shareholders
BCE has been using that strong cash flow to buy back shares and pay a generous dividend. The company spent $125 million in the quarter repurchasing approximately 4.1 million shares, for instance.

BCE also pays a dividend that yields a juicy 5.1%. Its payout ratio of 68% is a little higher than its peers, but within the company’s target payout of 65% to 75%. continue »

MKC has a habit of beating forecasts

McCormick & Co Inc. (MKC – Analyst Report) recently delivered its 7th consecutive positive earnings surprise driven by strong sales growth in the Asia/Pacific region.

The company expects to grow sales 5% to 7% in 2011, and analysts are calling for 7% EPS growth. McCormick has also been steadily raising its dividend. It currently yields 2.4%.

Fourth Quarter Results

McCormick reported fourth quarter earnings per share of 99 cents, beating the Zacks Consensus Estimate by 4 cents. It was a 9% increase over the same quarter in 2009.

Overall net sales growth was a decent 5.9%. The Consumer Business segment, which accounted for about 65% of total sales, increased a solid 5.6%. Growth was strongest in the Asia/Pacific market, which increased 12%. Consumer sales in China grew a remarkable 22%.

Consumer sales were up in the Americas too, increasing 9% year-over-year. The Europe, Middle East and Africa region was weak, however, with sales falling 5%. Industrial business sales, which made up the other 35% of sales, rose 6.7% driven by a 15% increase in Asia/Pacific. The Americas were up 5%, while the EMEA region increased 4%.

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Nice chart, great fundamentals

Krispy Kreme Doughnuts (KKD – Snapshot Report) is expected to more than quadruple its earnings by the end of fiscal 2012. Fortunately, the growth rates are priced at a discount and this looks like a great entry point for this Zacks #2 Rank (Buy).

Company Description

Krispy Kreme is a popular chain, selling signature doughnuts and coffee. The company has been around since the 30’s and now as more than 630 locations in 20 countries.

Another Surprise

Since I features Krispy Kreme in October Krispy Kreme, the company beat estimates once again. On Dec 1 KKD reported third-quarter revenue of just over $90 million, an 8% increase. Net income was $2.4 million, up from a loss of the same size a year ago. This is the fourth consecutive quarter of earnings growth.

Earnings per share came out to a 3 cent profit, while analysts were looking for a 1 cent loss. Identical to the previous period.

Consensus Rising

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There is no doubt that the world’s manufacturing sector is operating at full throttle once again. H.B. Fuller Company (FUL – Snapshot Report) is expected to see double digit earnings growth in both 2011 and 2012 as its growth momentum continues. The company trades with attractive valuations, with a forward P/E of just 12.8.

This Zacks #1 Rank (strong buy) manufactures adhesives, sealants, paints and other specialty chemical products for customers in packaging, hygiene, paper converting, woodworking and construction in more than 100 countries.

The company is worldwide, operating in four geographic regions: North America, Latin America, Europe and Asia Pacific.

H.B. Fuller Beat By 10% in the Fourth Quarter

On Jan 11, H.B. Fuller reported its fourth quarter results and surprised by 4 cents per share. Earnings per share were 44 cents compared to the 40 cent consensus.

Revenue rose 5.5% to $360.2 million boosted by higher average selling prices, higher volume and acquisitions. Organic sales climbed 5.6% compared with last year.

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