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715100.0
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2023-12-01 00:00:00 UTC
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Friday's ETF Movers: ARKK, MCHI
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DCOMP
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https://www.nasdaq.com/articles/fridays-etf-movers%3A-arkk-mchi
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nan
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In trading on Friday, the ARK Innovation ETF is outperforming other ETFs, up about 3.5% on the day. Components of that ETF showing particular strength include shares of Uipath, up about 24.9% and shares of Unity Software, up about 7.7% on the day.
And underperforming other ETFs today is the iShares MSCI China ETF, off about 1.6% in Friday afternoon trading. Among components of that ETF with the weakest showing on Friday were shares of Miniso Group Holding, lower by about 4.7%, and shares of Iqiyi, lower by about 3.9% on the day.
VIDEO: Friday's ETF Movers: ARKK, MCHI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of Uipath, up about 24.9% and shares of Unity Software, up about 7.7% on the day. Among components of that ETF with the weakest showing on Friday were shares of Miniso Group Holding, lower by about 4.7%, and shares of Iqiyi, lower by about 3.9% on the day. VIDEO: Friday's ETF Movers: ARKK, MCHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of Uipath, up about 24.9% and shares of Unity Software, up about 7.7% on the day. Among components of that ETF with the weakest showing on Friday were shares of Miniso Group Holding, lower by about 4.7%, and shares of Iqiyi, lower by about 3.9% on the day. VIDEO: Friday's ETF Movers: ARKK, MCHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, the ARK Innovation ETF is outperforming other ETFs, up about 3.5% on the day. And underperforming other ETFs today is the iShares MSCI China ETF, off about 1.6% in Friday afternoon trading. Among components of that ETF with the weakest showing on Friday were shares of Miniso Group Holding, lower by about 4.7%, and shares of Iqiyi, lower by about 3.9% on the day.
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In trading on Friday, the ARK Innovation ETF is outperforming other ETFs, up about 3.5% on the day. Components of that ETF showing particular strength include shares of Uipath, up about 24.9% and shares of Unity Software, up about 7.7% on the day. And underperforming other ETFs today is the iShares MSCI China ETF, off about 1.6% in Friday afternoon trading.
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fc995f2b-4347-45f8-97d0-3ec375ac71a0
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715101.0
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2023-12-01 00:00:00 UTC
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Daily Dividend Report: WCC,BMO,GGG,RJF,RRC
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DCOMP
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https://www.nasdaq.com/articles/daily-dividend-report%3A-wccbmogggrjfrrc
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nan
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nan
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The Board of Directors of Wesco International today declared a quarterly cash dividend on all of the issued and outstanding shares of common stock, in an amount equal to $0.375 per share. The dividend is payable on December 29, 2023 to the holders of record of the common stock at the close of business on December 15, 2023.
Bank of Montreal today announced that its Board of Directors declared a quarterly dividend of $1.51 per share on paid-up common shares of Bank of Montreal for the first quarter of fiscal year 2024, a 4 cent, or 3 per cent, increase from the prior quarter, up 6 per cent from the prior year. The dividend on the common shares is payable on February 27, 2024, to shareholders of record on January 30, 2024.
The Board of Directors of Graco has declared a regular quarterly dividend of 25.5 cents per common share, an increase of 8.5 percent, payable on February 7, 2024, to shareholders of record at the close of business on January 22, 2024. The Company has approximately 167.8 million shares outstanding.
On November 30, 2023, the Raymond James Financial Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.45 per share, payable January 16, 2024 to shareholders of record on January 2, 2024. This is a 7.1% increase over the previous dividend of $0.42 per share paid on October 16, 2023.
RANGE RESOURCES today announced that its Board of Directors declared a quarterly cash dividend on its common stock for the fourth quarter. A dividend of $0.08 per common share is payable on December 29, 2023 to stockholders of record at the close of business on December 15, 2023.
VIDEO: Daily Dividend Report: WCC,BMO,GGG,RJF,RRC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The dividend on the common shares is payable on February 27, 2024, to shareholders of record on January 30, 2024. The Board of Directors of Graco has declared a regular quarterly dividend of 25.5 cents per common share, an increase of 8.5 percent, payable on February 7, 2024, to shareholders of record at the close of business on January 22, 2024. On November 30, 2023, the Raymond James Financial Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.45 per share, payable January 16, 2024 to shareholders of record on January 2, 2024.
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Bank of Montreal today announced that its Board of Directors declared a quarterly dividend of $1.51 per share on paid-up common shares of Bank of Montreal for the first quarter of fiscal year 2024, a 4 cent, or 3 per cent, increase from the prior quarter, up 6 per cent from the prior year. The Board of Directors of Graco has declared a regular quarterly dividend of 25.5 cents per common share, an increase of 8.5 percent, payable on February 7, 2024, to shareholders of record at the close of business on January 22, 2024. On November 30, 2023, the Raymond James Financial Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.45 per share, payable January 16, 2024 to shareholders of record on January 2, 2024.
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Bank of Montreal today announced that its Board of Directors declared a quarterly dividend of $1.51 per share on paid-up common shares of Bank of Montreal for the first quarter of fiscal year 2024, a 4 cent, or 3 per cent, increase from the prior quarter, up 6 per cent from the prior year. The Board of Directors of Graco has declared a regular quarterly dividend of 25.5 cents per common share, an increase of 8.5 percent, payable on February 7, 2024, to shareholders of record at the close of business on January 22, 2024. On November 30, 2023, the Raymond James Financial Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.45 per share, payable January 16, 2024 to shareholders of record on January 2, 2024.
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The Board of Directors of Wesco International today declared a quarterly cash dividend on all of the issued and outstanding shares of common stock, in an amount equal to $0.375 per share. The Board of Directors of Graco has declared a regular quarterly dividend of 25.5 cents per common share, an increase of 8.5 percent, payable on February 7, 2024, to shareholders of record at the close of business on January 22, 2024. RANGE RESOURCES today announced that its Board of Directors declared a quarterly cash dividend on its common stock for the fourth quarter.
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3074294f-4f7c-40af-9c2c-58788d15ccc5
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715102.0
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2023-12-01 00:00:00 UTC
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Friday Sector Laggards: Computers, Insurance Brokers
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DCOMP
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https://www.nasdaq.com/articles/friday-sector-laggards%3A-computers-insurance-brokers
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nan
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nan
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In trading on Friday, computers shares were relative laggards, down on the day by about 0.2%. Helping drag down the group were shares of Dell Technologies, off about 4.1% and shares of Diebold Nixdorf down about 2.5% on the day.
Also lagging the market Friday are insurance brokers shares, up on the day by about 0.3% as a group, led down by Corebridge Financial, trading lower by about 3.5% and Goosehead Insurance, trading lower by about 2%.
VIDEO: Friday Sector Laggards: Computers, Insurance Brokers
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, computers shares were relative laggards, down on the day by about 0.2%. Also lagging the market Friday are insurance brokers shares, up on the day by about 0.3% as a group, led down by Corebridge Financial, trading lower by about 3.5% and Goosehead Insurance, trading lower by about 2%. VIDEO: Friday Sector Laggards: Computers, Insurance Brokers The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, computers shares were relative laggards, down on the day by about 0.2%. Also lagging the market Friday are insurance brokers shares, up on the day by about 0.3% as a group, led down by Corebridge Financial, trading lower by about 3.5% and Goosehead Insurance, trading lower by about 2%. VIDEO: Friday Sector Laggards: Computers, Insurance Brokers The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Helping drag down the group were shares of Dell Technologies, off about 4.1% and shares of Diebold Nixdorf down about 2.5% on the day. Also lagging the market Friday are insurance brokers shares, up on the day by about 0.3% as a group, led down by Corebridge Financial, trading lower by about 3.5% and Goosehead Insurance, trading lower by about 2%. VIDEO: Friday Sector Laggards: Computers, Insurance Brokers The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, computers shares were relative laggards, down on the day by about 0.2%. Helping drag down the group were shares of Dell Technologies, off about 4.1% and shares of Diebold Nixdorf down about 2.5% on the day. Also lagging the market Friday are insurance brokers shares, up on the day by about 0.3% as a group, led down by Corebridge Financial, trading lower by about 3.5% and Goosehead Insurance, trading lower by about 2%.
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914c6736-7c52-473d-9829-e21bf749b6d7
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715103.0
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2023-12-01 00:00:00 UTC
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Chico's FAS (CHS) Q3 Earnings Top Estimates, Guidance Withdrawn
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DCOMP
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https://www.nasdaq.com/articles/chicos-fas-chs-q3-earnings-top-estimates-guidance-withdrawn-0
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nan
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nan
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Chico's FAS, Inc. CHS posted third-quarter fiscal 2023 results, wherein the top line missed the Zacks Consensus Estimate while the bottom line beat the same. Both metrics declined year over year.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have increased 49.6% compared with the industry’s 7.7% growth.
Q3 in Detail
The company reported adjusted earnings of 11 cents per share in the fiscal third quarter, outpacing the Zacks Consensus Estimate of 10 cents. However, the figure declined 45% from 20 cents in the year-ago quarter.
Revenues declined 2.5% year over year to $505.1 million in the quarter. The metric fell short of the Zacks Consensus Estimate of $513 million. The company’s comparable store sales fell 2.7%, owing to decreased transaction count, partially offset by higher average dollar sales.
Brand-wise, Chico's net sales came in at $252.2 million, down 1.2% year over year. White House Black Market’s net sales declined by 6.3% to $147.5 million. Soma’s net sales came in at $105.4 million, stable year over year.
Chico's FAS, Inc. Price, Consensus and EPS Surprise
Chico's FAS, Inc. price-consensus-eps-surprise-chart | Chico's FAS, Inc. Quote
Margin & Costs
The gross profit decreased 5.3% year over year to $196.4 million. Meanwhile, the gross margin decreased 110 basis points (bps) to 38.9% in the quarter under review. The decline in gross margin was attributable to an increase in occupancy costs and a deleverage on lower net sales.
In the quarter, the company’s cost of sales came in at $308.7 million, down 0.7% year over year. Selling, general, and administrative (“SG&A”) expenses increased by 1.6% to $178.6 million. SG&A, as a percentage of net sales, increased 150 bps to 35.4% due to higher marketing and store operating expenses undertaken to support long-term growth strategies.
Chico's FAS reported a net income of $5 million in third-quarter fiscal 2023 compared with a net income of $24.6 million in the year-ago quarter. In the reported quarter, it incurred a net interest expense of $0.4 million.
Other Financials
The company ended the quarter with cash equivalents of $101.9 million, long-term debt of $24 million and shareholders’ equity of $422.6 million. In the first nine months of fiscal 2023, Chico's FAS provided $35.5 million in cash for operating activities.
Outlook
In September 2023, Chico's FAS entered into a definitive deal with Sycamore Partners to be acquired by the latter. The deal, valued at $1 billion, is anticipated to be closed by the end of first-quarter 2024, conditioned on certain customary closing conditions and approvals.
With respect to this pending transaction, the company refrained from providing a financial outlook and withdrew its previously announced outlook for fiscal 2023.
3 Red-Hot Stocks
Some better-ranked stocks are MINISO Group Holding Limited MNSO, Deckers Outdoor Corporation DECK and MarineMax HZO. While MINISO Group sports a Zacks Rank #1 (Strong Buy), Deckers Outdoor and MarineMax each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MINISO Group operates as a retailer and wholesaler of lifestyle products. The Zacks Consensus Estimate for MNSO’s current financial-year earnings per share and sales suggests growth of 43.6% and 29.9%, respectively, from the corresponding year-ago reported figures.
Deckers Outdoor is a leading producer and brand manager of innovative, niche footwear and accessories. The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 20.9% and 11.4%, respectively, from the previous year’s reported figures. DECK has a trailing four-quarter earnings surprise of 26.3% on average.
MarineMax is a recreational boat and yacht retailer and a superyacht services company. It has a trailing four-quarter negative earnings surprise of 10.1%, on average. The Zacks Consensus Estimate for HZO’s current financial year sales suggests growth of 3.1% from the year-ago period’s figures.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Chico's FAS, Inc. (CHS) : Free Stock Analysis Report
MarineMax, Inc. (HZO) : Free Stock Analysis Report
MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SG&A, as a percentage of net sales, increased 150 bps to 35.4% due to higher marketing and store operating expenses undertaken to support long-term growth strategies. The Zacks Consensus Estimate for MNSO’s current financial-year earnings per share and sales suggests growth of 43.6% and 29.9%, respectively, from the corresponding year-ago reported figures. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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Chico's FAS, Inc. Price, Consensus and EPS Surprise Chico's FAS, Inc. price-consensus-eps-surprise-chart | Chico's FAS, Inc. Quote Margin & Costs The gross profit decreased 5.3% year over year to $196.4 million. 3 Red-Hot Stocks Some better-ranked stocks are MINISO Group Holding Limited MNSO, Deckers Outdoor Corporation DECK and MarineMax HZO. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Chico's FAS, Inc. (CHS) : Free Stock Analysis Report MarineMax, Inc. (HZO) : Free Stock Analysis Report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Chico's FAS, Inc. Price, Consensus and EPS Surprise Chico's FAS, Inc. price-consensus-eps-surprise-chart | Chico's FAS, Inc. Quote Margin & Costs The gross profit decreased 5.3% year over year to $196.4 million. Chico's FAS reported a net income of $5 million in third-quarter fiscal 2023 compared with a net income of $24.6 million in the year-ago quarter. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Chico's FAS, Inc. (CHS) : Free Stock Analysis Report MarineMax, Inc. (HZO) : Free Stock Analysis Report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Chico's FAS, Inc. Price, Consensus and EPS Surprise Chico's FAS, Inc. price-consensus-eps-surprise-chart | Chico's FAS, Inc. Quote Margin & Costs The gross profit decreased 5.3% year over year to $196.4 million. In the first nine months of fiscal 2023, Chico's FAS provided $35.5 million in cash for operating activities. 3 Red-Hot Stocks Some better-ranked stocks are MINISO Group Holding Limited MNSO, Deckers Outdoor Corporation DECK and MarineMax HZO.
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b8793bd8-1314-4115-bdb4-ee1727bd1cab
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715104.0
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2023-12-01 00:00:00 UTC
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Friday Sector Leaders: Real Estate, Paper & Forest Products
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DCOMP
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https://www.nasdaq.com/articles/friday-sector-leaders%3A-real-estate-paper-forest-products
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nan
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nan
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In trading on Friday, real estate shares were relative leaders, up on the day by about 7.2%. Leading the group were shares of Guggenheim Enhanced Equity Strategy Fund, up about 139% and shares of Douglas Elliman up about 9.2% on the day.
Also showing relative strength are paper & forest products shares, up on the day by about 3.6% as a group, led by Mativ Holdings, trading higher by about 12.8% and Glatfelter, trading up by about 11.2% on Friday.
VIDEO: Friday Sector Leaders: Real Estate, Paper & Forest Products
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, real estate shares were relative leaders, up on the day by about 7.2%. Also showing relative strength are paper & forest products shares, up on the day by about 3.6% as a group, led by Mativ Holdings, trading higher by about 12.8% and Glatfelter, trading up by about 11.2% on Friday. VIDEO: Friday Sector Leaders: Real Estate, Paper & Forest Products The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, real estate shares were relative leaders, up on the day by about 7.2%. Also showing relative strength are paper & forest products shares, up on the day by about 3.6% as a group, led by Mativ Holdings, trading higher by about 12.8% and Glatfelter, trading up by about 11.2% on Friday. VIDEO: Friday Sector Leaders: Real Estate, Paper & Forest Products The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, real estate shares were relative leaders, up on the day by about 7.2%. Also showing relative strength are paper & forest products shares, up on the day by about 3.6% as a group, led by Mativ Holdings, trading higher by about 12.8% and Glatfelter, trading up by about 11.2% on Friday. VIDEO: Friday Sector Leaders: Real Estate, Paper & Forest Products The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, real estate shares were relative leaders, up on the day by about 7.2%. Leading the group were shares of Guggenheim Enhanced Equity Strategy Fund, up about 139% and shares of Douglas Elliman up about 9.2% on the day. Also showing relative strength are paper & forest products shares, up on the day by about 3.6% as a group, led by Mativ Holdings, trading higher by about 12.8% and Glatfelter, trading up by about 11.2% on Friday.
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fb9fba42-e268-4597-b243-08b355f576d7
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715105.0
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2023-12-01 00:00:00 UTC
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Are You Looking for a Top Momentum Pick? Why CBOE Global (CBOE) is a Great Choice
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DCOMP
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https://www.nasdaq.com/articles/are-you-looking-for-a-top-momentum-pick-why-cboe-global-cboe-is-a-great-choice
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nan
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nan
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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at CBOE Global (CBOE), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. CBOE Global currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if CBOE is a promising momentum pick, let's examine some Momentum Style elements to see if this holding company for the Chicago Board Options Exchange holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For CBOE, shares are up 1.92% over the past week while the Zacks Securities and Exchanges industry is up 2.3% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 11.91% compares favorably with the industry's 11.72% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of CBOE Global have increased 18.64% over the past quarter, and have gained 43.66% in the last year. On the other hand, the S&P 500 has only moved 1.7% and 13.63%, respectively.
Investors should also take note of CBOE's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, CBOE is averaging 856,623 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with CBOE.
Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CBOE's consensus estimate, increasing from $7.28 to $7.58 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that CBOE is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep CBOE Global on your short list.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Earnings Outlook The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Bottom Line Taking into account all of these elements, it should come as no surprise that CBOE is a #1 (Strong Buy) stock with a Momentum Score of B.
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Below, we take a look at CBOE Global (CBOE), a company that currently holds a Momentum Style Score of B. Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. Click to get this free report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Below, we take a look at CBOE Global (CBOE), a company that currently holds a Momentum Style Score of B. Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. Earnings Outlook The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement.
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Below, we take a look at CBOE Global (CBOE), a company that currently holds a Momentum Style Score of B. Investors should also take note of CBOE's average 20-day trading volume. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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f3c15bdf-07ca-4eed-bd41-bdd46621e4de
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715106.0
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2023-12-01 00:00:00 UTC
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HAE vs. SYK: Which Stock Should Value Investors Buy Now?
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DCOMP
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https://www.nasdaq.com/articles/hae-vs.-syk%3A-which-stock-should-value-investors-buy-now-0
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nan
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Investors interested in Medical - Products stocks are likely familiar with Haemonetics (HAE) and Stryker (SYK). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Haemonetics and Stryker are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that HAE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HAE currently has a forward P/E ratio of 20.79, while SYK has a forward P/E of 28.47. We also note that HAE has a PEG ratio of 2.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SYK currently has a PEG ratio of 2.83.
Another notable valuation metric for HAE is its P/B ratio of 4.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SYK has a P/B of 6.29.
These are just a few of the metrics contributing to HAE's Value grade of B and SYK's Value grade of D.
HAE has seen stronger estimate revision activity and sports more attractive valuation metrics than SYK, so it seems like value investors will conclude that HAE is the superior option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This means that HAE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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This means that HAE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. These are just a few of the metrics contributing to HAE's Value grade of B and SYK's Value grade of D. HAE has seen stronger estimate revision activity and sports more attractive valuation metrics than SYK, so it seems like value investors will conclude that HAE is the superior option right now. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits. These are just a few of the metrics contributing to HAE's Value grade of B and SYK's Value grade of D. HAE has seen stronger estimate revision activity and sports more attractive valuation metrics than SYK, so it seems like value investors will conclude that HAE is the superior option right now. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors interested in Medical - Products stocks are likely familiar with Haemonetics (HAE) and Stryker (SYK). Another notable valuation metric for HAE is its P/B ratio of 4.59. These are just a few of the metrics contributing to HAE's Value grade of B and SYK's Value grade of D. HAE has seen stronger estimate revision activity and sports more attractive valuation metrics than SYK, so it seems like value investors will conclude that HAE is the superior option right now.
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b3d76605-9df8-4930-90cd-46fa85d89445
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715107.0
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2023-12-01 00:00:00 UTC
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What Makes QuickLogic (QUIK) a Strong Momentum Stock: Buy Now?
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DCOMP
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https://www.nasdaq.com/articles/what-makes-quicklogic-quik-a-strong-momentum-stock%3A-buy-now
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nan
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nan
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at QuickLogic (QUIK), which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. QuickLogic currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if QUIK is a promising momentum pick, let's examine some Momentum Style elements to see if this maker of chips for mobile and portable electronics manufacturers holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For QUIK, shares are up 18.12% over the past week while the Zacks Electronics - Semiconductors industry is up 0.25% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 18.81% compares favorably with the industry's 9.47% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of QuickLogic have risen 34.02%, and are up 78.44% in the last year. In comparison, the S&P 500 has only moved 1.7% and 13.63%, respectively.
Investors should also take note of QUIK's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, QUIK is averaging 107,686 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with QUIK.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost QUIK's consensus estimate, increasing from $0.05 to $0.11 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that QUIK is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep QuickLogic on your short list.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QuickLogic Corporation (QUIK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Earnings Outlook The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year.
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Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. Earnings Outlook The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes.
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Below, we take a look at QuickLogic (QUIK), which currently has a Momentum Style Score of A. Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. Right now, QUIK is averaging 107,686 shares for the last 20 days.
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62dd49a4-2fd1-4dcd-9b45-28563d112537
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715108.0
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2023-12-01 00:00:00 UTC
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Why UiPath Stock Soared Today
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DCOMP
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https://www.nasdaq.com/articles/why-uipath-stock-soared-today
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nan
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nan
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Shares of UiPath (NYSE: PATH) were surging today after the digital automation specialist posted better-than-expected results in its third-quarter earnings report.
The cloud software company beat estimates on both the top and bottom lines and posted guidance in line with expectations, assuaging earlier fears about a slowdown in growth.
As a result, the stock closed up 26.7% on the news.
Image source: Getty Images.
UiPath tops expectations
UiPath, which specializes in robotic process automation (RPA), essentially bots that help automate workflows, reported revenue was up 24% to $325.9 million, which was better than the consensus at $315.6 million. Annual recurring revenue was also up 24% to $1.378 billion, showing stable growth.
On the bottom line, the company continued to be unprofitable on a generally accepted accounting principles (GAAP) basis, but on an adjusted basis, earnings per share improved from $0.05 to $0.12 as general and administrative expenses fell in the quarter. That result topped estimates at $0.07.
UiPath has been seen by some investors as an AI stock, as its technology is based on machine learning and other kinds of artificial intelligence, and its new Clipboard AI, which removes the need to manually copy and paste, was just named one of the best inventions of 2023 by Time magazine.
Co-CEO Rob Enslin said, "My conversations with customers and partners validate the strategic role enterprise automation plays in digital transformation, and I am excited about the investments we continue to make in AI to further extend our market leadership."
What's next for UiPath?
Looking ahead, the company sees fourth-quarter revenue at $381 million-$386 million, up 24.2% at the midpoint from the quarter a year ago. It also forecast annual recurring revenue of $1.45 billion-$1.455 billion, and it expects adjusted operating income of $78 million, which compares to an adjusted operating profit of $43.7 million.
Overall, the numbers show UiPath continued to deliver solid growth and improve profitability. The stock is still down more than 70% from its peak during the pandemic shortly after its IPO, but the quarter shows UiPath is executing in a challenging environment for tech companies, and the stock is benefiting from diminished expectations.
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*Stock Advisor returns as of November 29, 2023
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of UiPath (NYSE: PATH) were surging today after the digital automation specialist posted better-than-expected results in its third-quarter earnings report. Co-CEO Rob Enslin said, "My conversations with customers and partners validate the strategic role enterprise automation plays in digital transformation, and I am excited about the investments we continue to make in AI to further extend our market leadership." Looking ahead, the company sees fourth-quarter revenue at $381 million-$386 million, up 24.2% at the midpoint from the quarter a year ago.
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The cloud software company beat estimates on both the top and bottom lines and posted guidance in line with expectations, assuaging earlier fears about a slowdown in growth. UiPath tops expectations UiPath, which specializes in robotic process automation (RPA), essentially bots that help automate workflows, reported revenue was up 24% to $325.9 million, which was better than the consensus at $315.6 million. It also forecast annual recurring revenue of $1.45 billion-$1.455 billion, and it expects adjusted operating income of $78 million, which compares to an adjusted operating profit of $43.7 million.
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UiPath tops expectations UiPath, which specializes in robotic process automation (RPA), essentially bots that help automate workflows, reported revenue was up 24% to $325.9 million, which was better than the consensus at $315.6 million. The stock is still down more than 70% from its peak during the pandemic shortly after its IPO, but the quarter shows UiPath is executing in a challenging environment for tech companies, and the stock is benefiting from diminished expectations. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Jeremy Bowman has no position in any of the stocks mentioned.
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UiPath tops expectations UiPath, which specializes in robotic process automation (RPA), essentially bots that help automate workflows, reported revenue was up 24% to $325.9 million, which was better than the consensus at $315.6 million. That result topped estimates at $0.07. What's next for UiPath?
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7c87d7b6-9f09-4d86-84df-5a76ccc749d6
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715109.0
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2023-12-01 00:00:00 UTC
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What Makes Global-e Online Ltd. (GLBE) a New Buy Stock
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DCOMP
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https://www.nasdaq.com/articles/what-makes-global-e-online-ltd.-glbe-a-new-buy-stock
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nan
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nan
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Global-e Online Ltd. (GLBE) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Global-e Online Ltd. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Global-e Online Ltd. imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Global-e Online Ltd.
This company is expected to earn -$0.81 per share for the fiscal year ending December 2023, which represents a year-over-year change of 34.7%.
Analysts have been steadily raising their estimates for Global-e Online Ltd. Over the past three months, the Zacks Consensus Estimate for the company has increased 8.7%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Global-e Online Ltd. to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Global-e Online Ltd. (GLBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As such, the Zacks rating upgrade for Global-e Online Ltd. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Global-e Online Ltd. imply an improvement in the company's underlying business.
|
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. Harnessing the Power of Earnings Estimate Revisions Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision.
|
Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can learn more about the Zacks Rank here >>> The upgrade of Global-e Online Ltd. to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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Global-e Online Ltd. (GLBE) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). Harnessing the Power of Earnings Estimate Revisions Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Earnings Estimate Revisions for Global-e Online Ltd.
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0949f2b4-fd7c-48da-b47b-b19fcfbcd398
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715110.0
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2023-12-01 00:00:00 UTC
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United Bancorporation of Alabama, Inc. (UBAB) Upgraded to Strong Buy: What Does It Mean for the Stock?
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DCOMP
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https://www.nasdaq.com/articles/united-bancorporation-of-alabama-inc.-ubab-upgraded-to-strong-buy%3A-what-does-it-mean-for
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nan
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nan
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United Bancorporation of Alabama, Inc. (UBAB) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for United Bancorporation of Alabama, Inc. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for United Bancorporation of Alabama, Inc. imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for United Bancorporation of Alabama, Inc.
This company is expected to earn $7.74 per share for the fiscal year ending December 2023, which represents a year-over-year change of 51.5%.
Analysts have been steadily raising their estimates for United Bancorporation of Alabama, Inc. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.4%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of United Bancorporation of Alabama, Inc. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Bancorporation of Alabama, Inc. (UBAB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As such, the Zacks rating upgrade for United Bancorporation of Alabama, Inc. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for United Bancorporation of Alabama, Inc. imply an improvement in the company's underlying business.
|
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. Harnessing the Power of Earnings Estimate Revisions Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision.
|
Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can learn more about the Zacks Rank here >>> The upgrade of United Bancorporation of Alabama, Inc. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
|
Harnessing the Power of Earnings Estimate Revisions Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Analysts have been steadily raising their estimates for United Bancorporation of Alabama, Inc. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.4%. You can learn more about the Zacks Rank here >>> The upgrade of United Bancorporation of Alabama, Inc. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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5dbdb786-422b-4f1f-9379-aa71dcab6d78
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715111.0
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2023-12-01 00:00:00 UTC
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Tencent Holding Ltd. (TCEHY) Upgraded to Strong Buy: What Does It Mean for the Stock?
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DCOMP
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https://www.nasdaq.com/articles/tencent-holding-ltd.-tcehy-upgraded-to-strong-buy%3A-what-does-it-mean-for-the-stock
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nan
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nan
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Tencent Holding Ltd. (TCEHY) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Tencent Holding Ltd. basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Tencent Holding Ltd. imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Tencent Holding Ltd.
This company is expected to earn $2.31 per share for the fiscal year ending December 2023, which represents a year-over-year change of 31.3%.
Analysts have been steadily raising their estimates for Tencent Holding Ltd. Over the past three months, the Zacks Consensus Estimate for the company has increased 4.7%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Tencent Holding Ltd. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tencent Holding Ltd. (TCEHY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time. Therefore, the Zacks rating upgrade for Tencent Holding Ltd. basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it.
|
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. Harnessing the Power of Earnings Estimate Revisions As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. You can learn more about the Zacks Rank here >>> The upgrade of Tencent Holding Ltd. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
|
Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can learn more about the Zacks Rank here >>> The upgrade of Tencent Holding Ltd. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
|
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. Harnessing the Power of Earnings Estimate Revisions As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Earnings Estimate Revisions for Tencent Holding Ltd.
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f088f620-2c85-46da-8e3d-d2d901452acd
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715112.0
|
2023-12-01 00:00:00 UTC
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Modine (MOD) Upgraded to Strong Buy: Here's What You Should Know
|
DCOMP
|
https://www.nasdaq.com/articles/modine-mod-upgraded-to-strong-buy%3A-heres-what-you-should-know
|
nan
|
nan
|
Investors might want to bet on Modine (MOD), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Modine is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Modine, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Modine
This heating and cooling products maker is expected to earn $3.04 per share for the fiscal year ending March 2024, which represents a year-over-year change of 55.9%.
Analysts have been steadily raising their estimates for Modine. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.4%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Modine to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Modine Manufacturing Company (MOD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it.
|
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. Harnessing the Power of Earnings Estimate Revisions As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding.
|
Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can learn more about the Zacks Rank here >>> The upgrade of Modine to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
|
Investors might want to bet on Modine (MOD), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. Harnessing the Power of Earnings Estimate Revisions As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding.
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0c230709-bd8b-4172-8009-6e4995ad2fdd
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715113.0
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2023-12-01 00:00:00 UTC
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CrowdStrike Holdings (CRWD) is a Great Momentum Stock: Should You Buy?
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DCOMP
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https://www.nasdaq.com/articles/crowdstrike-holdings-crwd-is-a-great-momentum-stock%3A-should-you-buy
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nan
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nan
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at CrowdStrike Holdings (CRWD), a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. CrowdStrike Holdings currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if CRWD is a promising momentum pick, let's examine some Momentum Style elements to see if this cloud-based security company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For CRWD, shares are up 1.72% over the past week while the Zacks Internet - Software industry is up 0.57% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 29.64% compares favorably with the industry's 7.02% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of CrowdStrike Holdings have risen 42.22%, and are up 91.01% in the last year. In comparison, the S&P 500 has only moved 1.7% and 13.63%, respectively.
Investors should also pay attention to CRWD's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. CRWD is currently averaging 3,491,149 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with CRWD.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CRWD's consensus estimate, increasing from $2.82 to $2.84 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been 1 downward revision in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that CRWD is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep CrowdStrike Holdings on your short list.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CrowdStrike (CRWD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Earnings Outlook The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
Below, we take a look at CrowdStrike Holdings (CRWD), a company that currently holds a Momentum Style Score of A. Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. Earnings Outlook The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes.
|
The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. Earnings Outlook The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes.
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Below, we take a look at CrowdStrike Holdings (CRWD), a company that currently holds a Momentum Style Score of A. CRWD is currently averaging 3,491,149 shares for the last 20 days. Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year.
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d1c62adf-db8f-4336-bbdb-b9ac9cd103a7
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715114.0
|
2023-12-01 00:00:00 UTC
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Otter Tail (OTTR) Upgraded to Strong Buy: Here's Why
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DCOMP
|
https://www.nasdaq.com/articles/otter-tail-ottr-upgraded-to-strong-buy%3A-heres-why
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nan
|
nan
|
Investors might want to bet on Otter Tail (OTTR), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Otter Tail basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Otter Tail imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Otter Tail
This power company and manufacturer is expected to earn $6.85 per share for the fiscal year ending December 2023, which represents a year-over-year change of 1%.
Analysts have been steadily raising their estimates for Otter Tail. Over the past three months, the Zacks Consensus Estimate for the company has increased 18.3%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Otter Tail to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Otter Tail Corporation (OTTR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time. Therefore, the Zacks rating upgrade for Otter Tail basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it.
|
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. Harnessing the Power of Earnings Estimate Revisions As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. You can learn more about the Zacks Rank here >>> The upgrade of Otter Tail to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
|
Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can learn more about the Zacks Rank here >>> The upgrade of Otter Tail to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
|
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. Therefore, the Zacks rating upgrade for Otter Tail basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. Harnessing the Power of Earnings Estimate Revisions As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding.
|
fd9bc202-978b-4718-afb0-44d56ebed5d3
|
715115.0
|
2023-12-01 00:00:00 UTC
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Telefonica Brasil (VIV) is a Great Momentum Stock: Should You Buy?
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DCOMP
|
https://www.nasdaq.com/articles/telefonica-brasil-viv-is-a-great-momentum-stock%3A-should-you-buy
|
nan
|
nan
|
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Telefonica Brasil (VIV), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Telefonica Brasil currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if VIV is a promising momentum pick, let's examine some Momentum Style elements to see if this telecommunications company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For VIV, shares are up 3.33% over the past week while the Zacks Diversified Communication Services industry is up 0.45% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 11.81% compares favorably with the industry's 1.87% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Telefonica Brasil have risen 29.38%, and are up 44.79% in the last year. On the other hand, the S&P 500 has only moved 1.7% and 13.63%, respectively.
Investors should also pay attention to VIV's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. VIV is currently averaging 1,438,229 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with VIV.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost VIV's consensus estimate, increasing from $0.55 to $0.59 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that VIV is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Telefonica Brasil on your short list.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Telefonica Brasil S.A. (VIV) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Earnings Outlook The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. Click to get this free report Telefonica Brasil S.A. (VIV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. Earnings Outlook The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement.
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Below, we take a look at Telefonica Brasil (VIV), which currently has a Momentum Style Score of B. VIV is currently averaging 1,438,229 shares for the last 20 days. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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2023-12-01 00:00:00 UTC
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United Airlines (UAL) Invests $2.6B for Houston Expansion
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https://www.nasdaq.com/articles/united-airlines-ual-invests-%242.6b-for-houston-expansion
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United Airlines Holdings, Inc. UAL has announced that it is investing $2.6 billion to renovate and expand Terminal B at George Bush Intercontinental Airport. Additionally, they will open a UAL Club location and Early Bag Storage facility. The airline will also begin a new direct flight from Houston to Georgetown, Guyana.
These investments are part of the airline’s United Next growth plan. The project includes an expansion of 40 gates for larger aircraft allowing for an increase in 40% more passengers who can fly from the airport. This new United Airlines Club will be the largest in the United States. The Early Bag Storage facility is the only one of its kind in North America.
The decision to expand in Houston is a prudent one given the buoyant air-travel demand scenario. United Airlines CEO Scott Kirby stated, “United Next is about new investments that improve the customer experience and building careers for the next generation of aviation professionals – and all those things and more are coming to life here in Houston”.
In addition, the expansion will create 1,500 United Airlines positions in Houston along with another 4,000 construction-related jobs throughout the project. Such innovative expansion projects are expected to attract more traffic and thereby aid top-line growth. Also, employment growth will get a boost.
Price Performance
Shares of United Airlines have gained 4.5% in the year-to-date period compared with 3.2% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank
United Airlines carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks for investors interested in the Zacks Transportation sector are Air Canada ACDVF and SkyWest SKYW.
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a new year-round route between Montreal and Madrid. You can see the complete list of today’s Zacks #1 Rank stocks here.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand.
SkyWest presently carries a Zacks Rank #2 (Buy). SKYW's fleet-modernization efforts are commendable. Initiatives to reward its shareholders also bode well. The Zacks Consensus Estimate for current-quarter earnings has surged 83.3% in the past 60 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Air Canada (ACDVF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Airlines Holdings, Inc. UAL has announced that it is investing $2.6 billion to renovate and expand Terminal B at George Bush Intercontinental Airport. Price Performance Shares of United Airlines have gained 4.5% in the year-to-date period compared with 3.2% growth of the industry it belongs to. Key Picks Some better-ranked stocks for investors interested in the Zacks Transportation sector are Air Canada ACDVF and SkyWest SKYW.
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Additionally, they will open a UAL Club location and Early Bag Storage facility. Image Source: Zacks Investment Research Zacks Rank United Airlines carries a Zacks Rank #3 (Hold). Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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United Airlines CEO Scott Kirby stated, “United Next is about new investments that improve the customer experience and building careers for the next generation of aviation professionals – and all those things and more are coming to life here in Houston”. Image Source: Zacks Investment Research Zacks Rank United Airlines carries a Zacks Rank #3 (Hold). Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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These investments are part of the airline’s United Next growth plan. In addition, the expansion will create 1,500 United Airlines positions in Houston along with another 4,000 construction-related jobs throughout the project. Image Source: Zacks Investment Research Zacks Rank United Airlines carries a Zacks Rank #3 (Hold).
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2023-12-01 00:00:00 UTC
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Alphabet (GOOGL) Bolsters Nest Hub Series With Fuchsia 14
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https://www.nasdaq.com/articles/alphabet-googl-bolsters-nest-hub-series-with-fuchsia-14
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Alphabet GOOGL is enhancing its Google smart home devices portfolio on the back of new feature updates and releases.
Notably, Google unveiled Fuchsia version 14, a preview update of its in-house operating system, for the Nest Hub series.
Further, the new version, available to those enrolled in the Preview Program, enhances Matter support by improving transition time handling, color-related commands, matter update group support and updated subscriptions to all device fabrics.
Additionally, Fuchsia version 14 brings improvements to Nest Hub’s Wi-Fi and Bluetooth connectivity, enabling FastUDP on all platforms, addressing media playback time inaccuracy, resuming Bluetooth audio after video calls and improving latency.
Alphabet is expected to gain solid traction across users of smart home devices customers on the back of its latest move.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Prospects
Apart from the latest launch, Alphabet announced that Google’s smart home controller app, Google Home, will be available to everyone, with upgraded features including a new Favorites tab, improved camera interface, support for new device types and iPhone integration for Matter devices.
Additionally, Google enabled users to transfer their oldest Nest cameras to Google Home, with the Nest Cam Indoor being the first to do so, followed by the Nest Cam Outdoor.
All the above-mentioned endeavors are likely to strengthen the company’s presence in the booming smart home devices market.
Per a Fortune Business Insights report, the global smart home device market is expected to reach $338.28 billion by 2030, witnessing a CAGR of 20.1% during the period of 2023-2030.
We believe Alphabet’s growing prospects in the promising smart home devices market will likely instill investor optimism in the stock.
Alphabet has gained 55.2% on a year-to-date basis compared with the industry’s rise of 54.7%.
Moreover, all these launches will aid the Google Services segment’s performance, which constitutes the majority of total revenues.
In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
Strength in the underlined segment will likely aid its overall financial performance in the upcoming period.
Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%.
Stiff Competition
We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space.
Notably, Amazon expanded its family of Echo devices by introducing Echo Show 8, Echo Hub and Echo Frames, which are expected to deliver customized, proactive and intuitive Alexa experiences.
Further, Amazon infused generative AI into the Fire TV ecosystem to enable voice search, personalized recommendations and personalized content search based on specific preferences.
Meanwhile, Apple’s release of a second-generation powerful smart speaker, HomePod, which boasts advanced computational audio and Siri intelligence, immersive Spatial Audio tracks, allowing users to manage tasks, create automation and check room temperature and humidity, remains noteworthy.
Additionally, Apple released HomePod software update 17 and is set to release version 17.1, allowing users to mute phone calls and use HomePod minis or full-size speakers as speakers with Apple TV.
Zacks Rank & A Key Pick
Currently, Alphabet carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Badger Meter BMI, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Badger Meter have gained 35.2% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Badger Meter, Inc. (BMI) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Notably, Google unveiled Fuchsia version 14, a preview update of its in-house operating system, for the Nest Hub series. Alphabet is expected to gain solid traction across users of smart home devices customers on the back of its latest move. Per a Fortune Business Insights report, the global smart home device market is expected to reach $338.28 billion by 2030, witnessing a CAGR of 20.1% during the period of 2023-2030.
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Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022. Additionally, Apple released HomePod software update 17 and is set to release version 17.1, allowing users to mute phone calls and use HomePod minis or full-size speakers as speakers with Apple TV. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growth Prospects Apart from the latest launch, Alphabet announced that Google’s smart home controller app, Google Home, will be available to everyone, with upgraded features including a new Favorites tab, improved camera interface, support for new device types and iPhone integration for Matter devices. Stiff Competition We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Alphabet GOOGL is enhancing its Google smart home devices portfolio on the back of new feature updates and releases. Alphabet is expected to gain solid traction across users of smart home devices customers on the back of its latest move. You can see the complete list of today’s Zacks #1 Rank stocks here.
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715118.0
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2023-12-01 00:00:00 UTC
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Why Pfizer Stock Is Sinking Today
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https://www.nasdaq.com/articles/why-pfizer-stock-is-sinking-today-0
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Shares of Pfizer (NYSE: PFE) were sinking 4.4% lower as of 11:10 a.m. ET on Friday after falling as much as 7.1% earlier in the morning. The sell-off came after the company announced that it's throwing in the towel on a twice-daily version of experimental weight-loss pill danuglipron.
Pfizer made the decision based on results from a phase 2b clinical study of danuglipron. This study achieved its primary endpoint, with patients experiencing placebo-adjusted weight loss between 5% and 9% at 26 weeks and between 8% and 13% at 32 weeks. However, there were high rates of side effects (up to 73% of patients experienced nausea and up to 47% experienced vomiting). Discontinuation rates were also very high -- above 50%.
How bad was this news for Pfizer?
There was simply no way that Pfizer could advance the twice-daily version of danuglipron into phase 3 testing with the dismal adverse event and discontinuation numbers. But how bad was this news for Pfizer? Pretty bad.
Danuglipron was widely viewed as the company's top pipeline candidate. Pfizer CEO Albert Bourla stated earlier this year that it could become a "$10 billion product for us in a market that could be $90 billion."
The silver lining in the dark cloud is that Pfizer still has hopes for a once-daily formulation of the weight-loss drug. The big drugmaker expects to report results from a phase 2 study in the first half of 2024.
Is Pfizer stock a buy on the dip?
I think that Pfizer could be a great stock to buy on the dip for income investors especially. Its dividend yield now tops 5.6%.
The bad news related to danuglipron isn't disastrous for Pfizer. The pharma giant still has plenty of new products and new indications for existing products to help drive revenue growth. And there's still a possibility that Pfizer could still grab a nice share of the huge obesity drug market if the once-daily version of danuglipron pans out.
10 stocks we like better than Pfizer
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Pfizer wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 29, 2023
Keith Speights has positions in Pfizer. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The sell-off came after the company announced that it's throwing in the towel on a twice-daily version of experimental weight-loss pill danuglipron. There was simply no way that Pfizer could advance the twice-daily version of danuglipron into phase 3 testing with the dismal adverse event and discontinuation numbers. And there's still a possibility that Pfizer could still grab a nice share of the huge obesity drug market if the once-daily version of danuglipron pans out.
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And there's still a possibility that Pfizer could still grab a nice share of the huge obesity drug market if the once-daily version of danuglipron pans out. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Keith Speights has positions in Pfizer.
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Is Pfizer stock a buy on the dip? 10 stocks we like better than Pfizer When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Keith Speights has positions in Pfizer.
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Danuglipron was widely viewed as the company's top pipeline candidate. Pfizer CEO Albert Bourla stated earlier this year that it could become a "$10 billion product for us in a market that could be $90 billion." And there's still a possibility that Pfizer could still grab a nice share of the huge obesity drug market if the once-daily version of danuglipron pans out.
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715119.0
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2023-12-01 00:00:00 UTC
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Samsara's (IOT) Q3 Earnings Beat Estimates, Revenues Up Y/Y
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https://www.nasdaq.com/articles/samsaras-iot-q3-earnings-beat-estimates-revenues-up-y-y-0
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Samsara IOT reported non-GAAP earnings of 4 cents per share in third-quarter fiscal 2024 that comfortably beat the Zacks Consensus Estimate of 1 cent. The company reported a loss of 2 cents per share in the previous year.
Revenues came in at $237.5 million, up 40% year over year. The figure beat the Zacks Consensus Estimate by 5.4%.
Shares were up 17.65% in pre-market trading. Samsara’s shares have gained 121.6% compared with the Zacks Computer and Technology sector’s rise of 32.8% in the year-to-date period,
Top-Line Details
In the fiscal third quarter, Samsara concluded with Annual Recurring Revenues (ARR) of $1.003 billion, rallying 39% year over year.
Samsara Inc. Price, Consensus and EPS Surprise
Samsara Inc. price-consensus-eps-surprise-chart | Samsara Inc. Quote
The number of customers with an ARR surpassing $100,000 reached 1,663, a quarterly record increase of 148, increasing 49% year over year.
In the fiscal third quarter, four of the top five new ACV transactions were new logos, with three securing above $1M ARR each across key products: Video-Based Safety, Vehicle Telematics and Smart Equipment & Other.
Video-Based Safety achieved more than $400 million in ARR with a remarkable year-over-year growth of over 30%.
Vehicle Telematics recorded substantial ARR and surpassed $400 million, up more than 30% year over year.
Smart Equipment & Other generated significant ARR that exceeded $100 million, up 30% year over year.
Operating Details
In third-quarter fiscal 2024, non-GAAP gross profit rose 43% year over year to $179 million. Gross margin expanded 100 basis points to 75%.
Total operating expenses increased 24% year over year to $230.7 million, mainly due to higher research and development (up 21.7% year over year), sales and marketing (up 24.2% year over year) and general and administrative costs (rising 15.1% year over year).
Operating income was $12.7 million against an operating loss of $5.9 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Oct 28, 2023, cash and cash equivalents were $208 million compared with $196 million as of Jul 29, 2023.
In the fiscal third quarter, cash provided by operating activities came in at $11.9 million, up from $7.7 million reported in the prior quarter.
Free cash flow was $8.5 million compared with $4.7 million reported in the previous quarter.
Guidance
For the fourth quarter of fiscal 2024, Samsara expects revenues between $257 million and $259 million.
The non-GAAP operating margin is anticipated to be 2%.
Non-GAAP earnings for the fiscal fourth quarter are expected to be in the range of 2-3 cents per share.
For fiscal 2024, the company expects revenues in the range of $918-$920 million.
Non-GAAP earnings are expected in the range of 5-6 cents.
Zacks Rank & Key Picks
Samsara currently carries a Zacks Rank #3 (Hold).
ASANA ASAN, Science Applications International SAIC and Broadcam AVGO, are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASANA shares have gained 48.9% year to date. ASAN is set to report its third-quarter fiscal 2024 results on Dec 5.
Science Applications International shares have declined 5.8% year to date. SAIC is set to report its third-quarter fiscal 2024 results on Dec 4.
Broadcam’s shares have returned 65.6% year to date. AVGO is set to report its fourth-quarter fiscal 2023 results on Dec 7.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Science Applications International Corporation (SAIC) : Free Stock Analysis Report
Asana, Inc. (ASAN) : Free Stock Analysis Report
Samsara Inc. (IOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the fiscal third quarter, four of the top five new ACV transactions were new logos, with three securing above $1M ARR each across key products: Video-Based Safety, Vehicle Telematics and Smart Equipment & Other. ASANA ASAN, Science Applications International SAIC and Broadcam AVGO, are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy). With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Samsara IOT reported non-GAAP earnings of 4 cents per share in third-quarter fiscal 2024 that comfortably beat the Zacks Consensus Estimate of 1 cent. ASANA ASAN, Science Applications International SAIC and Broadcam AVGO, are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy). Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report Samsara Inc. (IOT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Samsara’s shares have gained 121.6% compared with the Zacks Computer and Technology sector’s rise of 32.8% in the year-to-date period, Top-Line Details In the fiscal third quarter, Samsara concluded with Annual Recurring Revenues (ARR) of $1.003 billion, rallying 39% year over year. Total operating expenses increased 24% year over year to $230.7 million, mainly due to higher research and development (up 21.7% year over year), sales and marketing (up 24.2% year over year) and general and administrative costs (rising 15.1% year over year). Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report Samsara Inc. (IOT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Samsara IOT reported non-GAAP earnings of 4 cents per share in third-quarter fiscal 2024 that comfortably beat the Zacks Consensus Estimate of 1 cent. Revenues came in at $237.5 million, up 40% year over year. Operating Details In third-quarter fiscal 2024, non-GAAP gross profit rose 43% year over year to $179 million.
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2023-12-01 00:00:00 UTC
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Once-gloomy US retailers now signaling more holiday cheer after solid start to season
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https://www.nasdaq.com/articles/once-gloomy-us-retailers-now-signaling-more-holiday-cheer-after-solid-start-to-season-0
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By Deborah Mary Sophia and Aishwarya Venugopal
Dec 1 (Reuters) - Retailers like Amazon.com and Foot Locker are signaling optimism for holiday season sales after stronger-than-expected figures during Black Friday and Cyber Monday, as heavy discounts lured budget-strained customers on the peak U.S. shopping days.
Early estimates on holiday shopping have been encouraging to some investors after retailers sounded cautious notes in the lead-up to the season. Online sales in the U.S. during the five-day period from Thanksgiving through Cyber Monday hit a record $38 billion, according to Adobe Analytics, while the National Retail Federation said more than 200 million people shopped both in-store and online during the holiday weekend, surpassing estimates.
"While there are parts of the consumer that definitely are much slower and weaker, from a spending perspective, there's still a lot of money sitting on the sidelines... (The holiday season) actually could be a little bit better than what most people think," said Jimmy Lee, CEO of Wealth Consulting Group, which holds Amazon shares.
Earlier this week, Ulta BeautyULTA.O and Foot LockerFL.N bumped up their annual sales expectations, with the footwear retailer flagging a strong start to holiday selling on the back of steep discounts.
Black Friday store visits to recreational and sporting goods retailers were up 322.9% compared to the 2023 year-to-date daily average, while the category saw an increase of 305.2% the previous year, according to foot traffic data from Placer.ai.
"We know we're buying for wallet share with a value-conscious consumer this holiday season. Quarter-to-date, we've been pleased with the trends as consumers respond to our full-price holiday assortments in addition to our compelling deals," Foot Locker CEO Mary Dillon said in a conference call on Wednesday.
Amazon's AMZN.O extended Black Friday and Cyber Monday holiday shopping event - which kicked off on Nov. 17 and continued through Nov. 27 - was its biggest ever compared to the same ending on Cyber Monday in previous years.
This year, during the week ending Nov. 25, card spending was 1.7% higher than in the week ending the day after Black Friday last year, according to a report from BofA Global research. The corresponding increases in spending on holiday items were also larger this year, the report said.
Kohl's KSS.N CEO Tom Kingsbury said last week the company was "coming out on holiday very aggressively in terms of promotions."
Most retailers including Walmart WMT.N, and clothing chains Abercrombie & Fitch ANF.N and American Eagle Outfitters AEO.N, have raised annual forecasts, putting them on track for a strong holiday quarter.
Since Aug. 1, the consumer discretionary sector has recorded the highest percentage increase in earnings, according to LSEG IBES data.
Yet some retailers, including Kohl'sKSS.N, Best BuyBBY.N and Lowe's CosLOW.N, have tempered their sales forecasts for the year.
"The U.S. consumer is bifurcated. Lower income households are pulling back on discretionary purchases... But outside of the lowest tier we believe household consumption remains resilient," Jason Benowitz, senior portfolio manager at CI Roosevelt, said.
(Reporting by Deborah Sophia and Juby Babu in Bengaluru; Editing by Pooja Desai)
((DeborahMary.Sophia@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Deborah Mary Sophia and Aishwarya Venugopal Dec 1 (Reuters) - Retailers like Amazon.com and Foot Locker are signaling optimism for holiday season sales after stronger-than-expected figures during Black Friday and Cyber Monday, as heavy discounts lured budget-strained customers on the peak U.S. shopping days. "While there are parts of the consumer that definitely are much slower and weaker, from a spending perspective, there's still a lot of money sitting on the sidelines... (The holiday season) actually could be a little bit better than what most people think," said Jimmy Lee, CEO of Wealth Consulting Group, which holds Amazon shares. Black Friday store visits to recreational and sporting goods retailers were up 322.9% compared to the 2023 year-to-date daily average, while the category saw an increase of 305.2% the previous year, according to foot traffic data from Placer.ai.
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Quarter-to-date, we've been pleased with the trends as consumers respond to our full-price holiday assortments in addition to our compelling deals," Foot Locker CEO Mary Dillon said in a conference call on Wednesday. Amazon's AMZN.O extended Black Friday and Cyber Monday holiday shopping event - which kicked off on Nov. 17 and continued through Nov. 27 - was its biggest ever compared to the same ending on Cyber Monday in previous years. This year, during the week ending Nov. 25, card spending was 1.7% higher than in the week ending the day after Black Friday last year, according to a report from BofA Global research.
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By Deborah Mary Sophia and Aishwarya Venugopal Dec 1 (Reuters) - Retailers like Amazon.com and Foot Locker are signaling optimism for holiday season sales after stronger-than-expected figures during Black Friday and Cyber Monday, as heavy discounts lured budget-strained customers on the peak U.S. shopping days. Online sales in the U.S. during the five-day period from Thanksgiving through Cyber Monday hit a record $38 billion, according to Adobe Analytics, while the National Retail Federation said more than 200 million people shopped both in-store and online during the holiday weekend, surpassing estimates. Amazon's AMZN.O extended Black Friday and Cyber Monday holiday shopping event - which kicked off on Nov. 17 and continued through Nov. 27 - was its biggest ever compared to the same ending on Cyber Monday in previous years.
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"We know we're buying for wallet share with a value-conscious consumer this holiday season. Amazon's AMZN.O extended Black Friday and Cyber Monday holiday shopping event - which kicked off on Nov. 17 and continued through Nov. 27 - was its biggest ever compared to the same ending on Cyber Monday in previous years. Most retailers including Walmart WMT.N, and clothing chains Abercrombie & Fitch ANF.N and American Eagle Outfitters AEO.N, have raised annual forecasts, putting them on track for a strong holiday quarter.
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2023-12-01 00:00:00 UTC
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PagerDuty (PD) Q3 Earnings Beat Estimates, Revenues Up Y/Y
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https://www.nasdaq.com/articles/pagerduty-pd-q3-earnings-beat-estimates-revenues-up-y-y
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PagerDuty PD reported non-GAAP earnings of 20 cents per share in third-quarter fiscal 2024, beating the Zacks Consensus Estimate of 13 cents. It reported earnings of 4 cents per share in the year-ago quarter.
Revenues of $108.7 million increased 15.4% on a year-over-year basis, primarily driven by strong expansion in the enterprise and mid-market. The figure beat the consensus estimate for revenues by 1.65%.
International revenues contributed 27% to total revenues.
Annual recurring revenues (ARR) increased 13% year over year to $438.9 million.
PagerDuty Price, Consensus and EPS Surprise
PagerDuty price-consensus-eps-surprise-chart | PagerDuty Quote
Customer Growth Aids the Top Line
PagerDuty continued to see strength in the enterprise and mid-market, with a total dollar-based net retention rate of 110% as of Oct 31, 2023.
As of Oct 31, the total number of customers, combining free and paid subscriptions, exceeded 27,000, up approximately 18% year over year.
PD closed the fiscal third quarter with 15,049 total paid customers as of Oct 31, 2023, compared with 15,265 at the end of the year-ago period.
Customers with ARR of more than $100,000 were 778 as of Oct 31, 2023, compared with 710 in the year-ago period.
Quarter Details
In third-quarter fiscal 2024, non-GAAP gross profit rose 16% year over year to $92.9 million. Gross margin expanded 50 basis points to 85.5%.
Non-GAAP research & development expenses declined 2.3% year over year to $22.7 million.
Non-GAAP sales & marketing expenses rose 6.7% year over year to $40.9 million.
Non-GAAP general & administrative expenses declined 7.9% from the year-ago quarter’s figure to $14.3 million.
Non-GAAP operating income was $15 million compared with the year-ago quarter’s operating income of $3 million.
Balance Sheet & Cash Flow
As of Oct 31, 2023, PagerDuty had cash and cash equivalents and current investments of $575.3 million.
In the fiscal third quarter, PD successfully closed a $350 million convertible senior notes offering.
The operating cash flow amounted to $16.9 million, while the free cash flow was $15.2 million.
Guidance
For the fourth quarter of fiscal 2024, PagerDuty expects revenues between $109.5 million and $111.5 million, indicating growth in the 8% to 10% range.
Non-GAAP earnings for the fiscal fourth quarter are expected to be in the range of 14-15 cents per share.
For the fiscal 2024, the company expects revenues in the range of $429-$431 million, indicating 16% growth over fiscal 2023.
Non-GAAP earnings are expected in the range of 72-73 cents per share.
Zacks Rank & Key Picks
PagerDuty currently carries a Zacks Rank #3 (Hold).
ASANA ASAN, Science Applications International SAIC and Broadcam AVGO are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASANA’s shares have gained 48.9% year to date. ASAN is set to report its third-quarter fiscal 2024 results on Dec 5.
Science Applications International’s shares have declined 5.8% year to date. SAIC is set to report third-quarter fiscal 2024 results on Dec 4.
Broadcam’s shares have returned 65.6% year to date. AVGO is set to report its fourth-quarter fiscal 2023 results on Dec 7.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Science Applications International Corporation (SAIC) : Free Stock Analysis Report
PagerDuty (PD) : Free Stock Analysis Report
Asana, Inc. (ASAN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PD closed the fiscal third quarter with 15,049 total paid customers as of Oct 31, 2023, compared with 15,265 at the end of the year-ago period. ASANA ASAN, Science Applications International SAIC and Broadcam AVGO are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy). With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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PagerDuty PD reported non-GAAP earnings of 20 cents per share in third-quarter fiscal 2024, beating the Zacks Consensus Estimate of 13 cents. Guidance For the fourth quarter of fiscal 2024, PagerDuty expects revenues between $109.5 million and $111.5 million, indicating growth in the 8% to 10% range. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report PagerDuty (PD) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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PagerDuty PD reported non-GAAP earnings of 20 cents per share in third-quarter fiscal 2024, beating the Zacks Consensus Estimate of 13 cents. Quarter Details In third-quarter fiscal 2024, non-GAAP gross profit rose 16% year over year to $92.9 million. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report PagerDuty (PD) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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PagerDuty PD reported non-GAAP earnings of 20 cents per share in third-quarter fiscal 2024, beating the Zacks Consensus Estimate of 13 cents. It reported earnings of 4 cents per share in the year-ago quarter. Quarter Details In third-quarter fiscal 2024, non-GAAP gross profit rose 16% year over year to $92.9 million.
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2023-12-01 00:00:00 UTC
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You're Missing the Point About Disney Bringing Back Its Dividend
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https://www.nasdaq.com/articles/youre-missing-the-point-about-disney-bringing-back-its-dividend
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Cash distributions are back at Walt Disney (NYSE: DIS). The media giant announced the return of its payouts on Thursday afternoon, declaring a semi-annual dividend of $0.30 a share for the second half of its fiscal year that ended in September. The distribution will be paid on Jan. 10 of next year to shareholders of record as of Dec. 11.
The return of the dividend isn't really news. Disney announced back in February that it wanted to resume its cash distributions before the end of this calendar year. It reiterated that desire in two of its subsequent earnings calls.
Disney now paying $0.30 a share every six months doesn't amount to much for a stock that's approaching $100. It translates to a yield just above 0.6%, a pittance in this era of high interest rates available on short-term fixed-income vehicles. This is still an important event that is bigger than just the small payout.
It's been four years since Disney shareholders received some cheese from the House of Mouse. Disney's last semi-annual dividend was declared in late 2019. The COVID-19 crisis changed things, interrupting many of its businesses. At the most basic level, the return of the payouts is a sign of things getting back to normal for the bellwether media stock.
Disney has changed a lot in the last four fiscal years. Revenue is a lot higher, and not just because of the $71.3 billion acquisition of key 21st Century Fox assets that it acquired midway through fiscal 2019. Disney+ was launched just weeks before the final dividend was declared, and its direct-to-consumer streaming business now accounts for roughly a quarter of its total revenue.
Disney's theme parks business is also generating more revenue and operating profit than it was before the early 2020 shutdowns. Disney's linear networks and movies have gone the other way, but top-line results overall are 28% higher now than they were in fiscal 2019.
Image source: Disney.
The other side of the coin is that Disney's stock price and earnings are considerably lower now than they were four years ago. Losses at Disney+, Hulu, and ESPN+ have been massive, and investor sentiment has soured for Disney now that it's not running on all cylinders. The dividend could help restore the sentiment narrative. If Disney is comfortable returning money to its shareholders at a time when it's trying to score $7.5 billion in annual cost savings, it must be on track to turn its expanding streaming business profitable by the end of the new fiscal year.
The small dividend isn't just a wink that things are getting back to normal for the entertainment behemoth. The return of regular distributions opens the stock up to money managers at mutual funds and other institutional investment vehicles that have income-generating requirements. There's probably some risk-averse individual investors out there who build out their portfolios the same way. Seemingly overnight, Disney now gets to join the ranks of the top blue chip dividend stocks.
The small yield itself is immaterial. Disney was never a high-yielding investment, even with its previous semi-annual dividend of $0.88 a share that is almost three times higher than the reinitiated rate. It's a return to times when Disney stock was higher and more of a core holding in household portfolios. There's also plenty of room for the distributions to grow substantially from here if Disney's recovery remains on track. This isn't just a dividend. It's a billboard. It's a springboard.
10 stocks we like better than Walt Disney
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walt Disney wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 29, 2023
Rick Munarriz has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The media giant announced the return of its payouts on Thursday afternoon, declaring a semi-annual dividend of $0.30 a share for the second half of its fiscal year that ended in September. If Disney is comfortable returning money to its shareholders at a time when it's trying to score $7.5 billion in annual cost savings, it must be on track to turn its expanding streaming business profitable by the end of the new fiscal year. The return of regular distributions opens the stock up to money managers at mutual funds and other institutional investment vehicles that have income-generating requirements.
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Cash distributions are back at Walt Disney (NYSE: DIS). After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Rick Munarriz has positions in Walt Disney.
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If Disney is comfortable returning money to its shareholders at a time when it's trying to score $7.5 billion in annual cost savings, it must be on track to turn its expanding streaming business profitable by the end of the new fiscal year. 10 stocks we like better than Walt Disney When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Rick Munarriz has positions in Walt Disney.
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Disney has changed a lot in the last four fiscal years. This isn't just a dividend. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Walt Disney wasn't one of them!
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715123.0
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2023-12-01 00:00:00 UTC
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Curious about Thor Industries (THO) Q1 Performance? Explore Wall Street Estimates for Key Metrics
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https://www.nasdaq.com/articles/curious-about-thor-industries-tho-q1-performance-explore-wall-street-estimates-for-key
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Analysts on Wall Street project that Thor Industries (THO) will announce quarterly earnings of $0.87 per share in its forthcoming report, representing a decline of 65.6% year over year. Revenues are projected to reach $2.51 billion, declining 19.2% from the same quarter last year.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific Thor Industries metrics that are commonly monitored and projected by Wall Street analysts.
The average prediction of analysts places 'Net Sales- Recreational vehicles- North American Towable' at $1.00 billion. The estimate points to a change of -24% from the year-ago quarter.
The consensus estimate for 'Net Sales- Recreational vehicles- North American Motorized' stands at $791.81 million. The estimate suggests a change of -29.5% year over year.
It is projected by analysts that the 'Net Sales- Other' will reach $191.51 million. The estimate indicates a year-over-year change of -17.7%.
Analysts forecast 'Net Sales- Recreational vehicles- European' to reach $569.28 million. The estimate suggests a change of +12.9% year over year.
View all Key Company Metrics for Thor Industries here>>>
Shares of Thor Industries have demonstrated returns of +6.7% over the past month compared to the Zacks S&P 500 composite's +9.2% change. With a Zacks Rank #3 (Hold), THO is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Thor Industries, Inc. (THO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. Bearing this in mind, let's now explore the average estimates of specific Thor Industries metrics that are commonly monitored and projected by Wall Street analysts.
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Analysts on Wall Street project that Thor Industries (THO) will announce quarterly earnings of $0.87 per share in its forthcoming report, representing a decline of 65.6% year over year. The average prediction of analysts places 'Net Sales- Recreational vehicles- North American Towable' at $1.00 billion. Click to get this free report Thor Industries, Inc. (THO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Analysts on Wall Street project that Thor Industries (THO) will announce quarterly earnings of $0.87 per share in its forthcoming report, representing a decline of 65.6% year over year. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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Analysts on Wall Street project that Thor Industries (THO) will announce quarterly earnings of $0.87 per share in its forthcoming report, representing a decline of 65.6% year over year. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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2023-12-01 00:00:00 UTC
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GLOBAL MARKETS-Shares gain, dollar slips as Fed's Powell sounds caution
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https://www.nasdaq.com/articles/global-markets-shares-gain-dollar-slips-as-feds-powell-sounds-caution
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By Sinéad Carew and Amanda Cooper
NEW YORK/LONDON, Dec 1 (Reuters) - MSCI's global stock index gained ground on Friday, while the U.S. dollar slipped after Federal Reserve Chair Jerome Powell vowed to move "carefully" on interest rates.
Treasury yields were down in choppy trading after data showed a continued slump in manufacturing and Powell said the risks of hiking interest rates too much and slowing the economy more than necessary, have become "more balanced" with the risks of not hiking enough to control inflation.
"Powell did his utmost to subtly convince markets of the Federal Reserve's commitment to holding rates in restrictive territory for a prolonged period of time," said Karl Schamotta, chief market strategist at Corpay in Toronto.
"But we doubt this will deter investors betting on a dramatic pivot in early 2024," he added citing comments from Fed Governor Christopher Waller earlier this week. Widely seen as a more hawkish policymaker, Waller flagged the possibility of lower interest rates if inflation continued to ease.
"By providing the terms - and the timeline - for a rules-based reduction in policy rates next year, Governor Waller earlier this week cleared the way for a sustained, data-driven decline in yields and the dollar."
The Dow Jones Industrial Average .DJI rose 85.32 points, or 0.24%, to 36,036.21, the S&P 500 .SPX gained 5.88 points, or 0.13%, to 4,573.68 and the Nasdaq Composite .IXIC dropped 7.74 points, or 0.05%, to 14,218.48.
The pan-European STOXX 600 index .STOXX rose 0.97%, while MSCI's gauge of stocks across the globe .MIWD00000PUS was up 0.21% after registering its biggest monthly gain in three years for November.
Earlier, the Institute for Supply Management (ISM) said its manufacturing PMI was unchanged at 46.7 last month. It was the 13th consecutive month that the PMI stayed below 50, indicating a contraction in manufacturing and the longest such stretch since the period from August 2000 to January 2002.
Mona Mahajan, senior investment strategist at Edward Jones said the data supported the idea of lower inflation and a gradually cooling economy.
"We're encouraged that markets aren't pulling back in any meaningful way after the strong November and may have scope to build on those gains if we continue to see these fundamental drivers play out," said Mahajan.
In Treasuries, benchmark 10-year notes US10YT=RR were down 8.4 basis points to 4.266%, from 4.35% late on Thursday. The 30-year bond US30YT=RR was last down 6.3 basis points to yield 4.448%. The 2-year note US2YT=RR was last was down 11.7 basis points to yield 4.5984%.
In currencies, the dollar index =USD fell 0.058%, with the euro EUR= down 0.2% to $1.0864. The Japanese yen strengthened 0.64% versus the greenback at 147.25 per dollar.
Sterling GBP= was last trading at $1.2665, up 0.34% on the day supported by expectations that the Bank of England will take longer than either the Fed or the ECB to cut rates.
Oil prices extended losses slightly after Thursday's 2% drop, with the market unconvinced that the latest round of OPEC+ production cuts will be able to lift prices from a recent slump.
U.S. crude CLc1 recently fell 0.13% to $75.86 per barrel and Brent LCOc1 was at $80.75, down 0.14% on the day.
In precious metals, spot gold XAU= added 1.1% to $2,058.19 an ounce. U.S. gold futures GCc1 gained 0.64% to $2,051.10 an ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Sinéad Carew, Saqib Iqbal Ahmed in New York, Amanda Cooper in London and Stella Qiu; Editing by Jamie Freed, Miral Fahmy, William Maclean and Alexander Smith)
((sinead.carew@thomsonreuters.com; +13322191897;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Sinéad Carew and Amanda Cooper NEW YORK/LONDON, Dec 1 (Reuters) - MSCI's global stock index gained ground on Friday, while the U.S. dollar slipped after Federal Reserve Chair Jerome Powell vowed to move "carefully" on interest rates. "By providing the terms - and the timeline - for a rules-based reduction in policy rates next year, Governor Waller earlier this week cleared the way for a sustained, data-driven decline in yields and the dollar." "We're encouraged that markets aren't pulling back in any meaningful way after the strong November and may have scope to build on those gains if we continue to see these fundamental drivers play out," said Mahajan.
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By Sinéad Carew and Amanda Cooper NEW YORK/LONDON, Dec 1 (Reuters) - MSCI's global stock index gained ground on Friday, while the U.S. dollar slipped after Federal Reserve Chair Jerome Powell vowed to move "carefully" on interest rates. Treasury yields were down in choppy trading after data showed a continued slump in manufacturing and Powell said the risks of hiking interest rates too much and slowing the economy more than necessary, have become "more balanced" with the risks of not hiking enough to control inflation. "By providing the terms - and the timeline - for a rules-based reduction in policy rates next year, Governor Waller earlier this week cleared the way for a sustained, data-driven decline in yields and the dollar."
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By Sinéad Carew and Amanda Cooper NEW YORK/LONDON, Dec 1 (Reuters) - MSCI's global stock index gained ground on Friday, while the U.S. dollar slipped after Federal Reserve Chair Jerome Powell vowed to move "carefully" on interest rates. Treasury yields were down in choppy trading after data showed a continued slump in manufacturing and Powell said the risks of hiking interest rates too much and slowing the economy more than necessary, have become "more balanced" with the risks of not hiking enough to control inflation. The Dow Jones Industrial Average .DJI rose 85.32 points, or 0.24%, to 36,036.21, the S&P 500 .SPX gained 5.88 points, or 0.13%, to 4,573.68 and the Nasdaq Composite .IXIC dropped 7.74 points, or 0.05%, to 14,218.48.
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By Sinéad Carew and Amanda Cooper NEW YORK/LONDON, Dec 1 (Reuters) - MSCI's global stock index gained ground on Friday, while the U.S. dollar slipped after Federal Reserve Chair Jerome Powell vowed to move "carefully" on interest rates. Treasury yields were down in choppy trading after data showed a continued slump in manufacturing and Powell said the risks of hiking interest rates too much and slowing the economy more than necessary, have become "more balanced" with the risks of not hiking enough to control inflation. In currencies, the dollar index =USD fell 0.058%, with the euro EUR= down 0.2% to $1.0864.
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2023-12-01 00:00:00 UTC
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Ericsson (ERIC), Telenor Team Up for AI-Driven Network Solution
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https://www.nasdaq.com/articles/ericsson-eric-telenor-team-up-for-ai-driven-network-solution
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Ericsson ERIC announced that it has inked a Memorandum of Understanding for three years with Telenor, a prominent telecommunication enterprise in Asia and the Nordics region. The tech partnership aims to develop and test cutting-edge AI/ML-based solutions for mobile network connectivity.
One of the primary focus areas is to drive energy efficiency and improve network performance, specifically in the RAN (Radio Access Network) domain, by utilizing advanced AI. Focus on the development of explainable AI is a vital aspect of this partnership. This feature bridges the gap between complex AI algorithms and human understanding by making the AI models more transparent and trustworthy.
The enterprises will also focus on validating AI capabilities in 5G applications and building teaching modules and resources for AI-powered telecommunications. Research insights on complex topics such as advanced ML methods will create a solid foundation of innovation to further accelerate the future growth potential across the industry.
Ericsson is striving to move toward zero-touch provisioning in operations for consumer-facing network domains, leveraging AI/ML software solutions. Telenor also intends to speed up AI model implementation in its operations to address the complexity of advanced 5G use cases and boost customer experience. The two enterprises will conduct testing of AI systems on a live network to assess their effectiveness in reducing power consumption, detecting anomalies and optimizing the capacity of wireless communications channels.
The combined expertise of the two organizations is expected to boost monetization opportunities for communications service providers through efficient energy utilization and enhanced security with robust AI systems. The advancements in network operations are anticipated to bring substantial business advantages for the network operators by expediting digitalization across their respective markets.
With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. To maintain performance with increased traffic, there is a consistent need for network tuning and optimization. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.
ERIC focuses on 5G system development and has undertaken many notable endeavors to position itself as a market leader. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson expects mainstream 4G offerings to give way to 5G technology in the future. It currently has 157 live 5G networks across the globe, spanning 66 countries.
The stock has lost 25.3% in the past year compared with the industry’s decline of 7.2%.
Image Source: Zacks Investment Research
Ericsson currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Model N Inc MODN, sporting a Zacks Rank #1 (Strong Buy), delivered an earnings surprise of 20.78%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 3.33%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MODN provides revenue management solutions for life sciences and technology companies, including applications for configuration, price, quote, rebate management and regulatory compliance.
NVIDIA Corporation NVDA, currently sporting a Zacks Rank #1, delivered an earnings surprise of 18.99%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 19.64%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to artificial intelligence-based solutions that support high-performance computing, gaming and virtual reality platforms.
Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista delivered an earnings surprise of 12%, on average, in the trailing four quarters.
ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ericsson (ERIC) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Model N, Inc. (MODN) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The two enterprises will conduct testing of AI systems on a live network to assess their effectiveness in reducing power consumption, detecting anomalies and optimizing the capacity of wireless communications channels. The combined expertise of the two organizations is expected to boost monetization opportunities for communications service providers through efficient energy utilization and enhanced security with robust AI systems. Arista is increasingly gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
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Stocks to Consider Model N Inc MODN, sporting a Zacks Rank #1 (Strong Buy), delivered an earnings surprise of 20.78%, on average, in the trailing four quarters. NVIDIA Corporation NVDA, currently sporting a Zacks Rank #1, delivered an earnings surprise of 18.99%, on average, in the trailing four quarters. Click to get this free report Ericsson (ERIC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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One of the primary focus areas is to drive energy efficiency and improve network performance, specifically in the RAN (Radio Access Network) domain, by utilizing advanced AI. Stocks to Consider Model N Inc MODN, sporting a Zacks Rank #1 (Strong Buy), delivered an earnings surprise of 20.78%, on average, in the trailing four quarters. Click to get this free report Ericsson (ERIC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Focus on the development of explainable AI is a vital aspect of this partnership. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. You can see the complete list of today’s Zacks #1 Rank stocks here.
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8e0409a8-3fbe-4729-ab5b-9cb727b21cc1
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715126.0
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2023-12-01 00:00:00 UTC
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VIV or NTTYY: Which Is the Better Value Stock Right Now?
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DCOMP
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https://www.nasdaq.com/articles/viv-or-nttyy%3A-which-is-the-better-value-stock-right-now-1
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nan
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Investors with an interest in Diversified Communication Services stocks have likely encountered both Telefonica Brasil (VIV) and NTT (NTTYY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Telefonica Brasil has a Zacks Rank of #2 (Buy), while NTT has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VIV is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
VIV currently has a forward P/E ratio of 18.21, while NTTYY has a forward P/E of 292.30. We also note that VIV has a PEG ratio of 1.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NTTYY currently has a PEG ratio of 45.96.
Another notable valuation metric for VIV is its P/B ratio of 1.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NTTYY has a P/B of 1.41.
Based on these metrics and many more, VIV holds a Value grade of A, while NTTYY has a Value grade of C.
VIV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VIV is likely the superior value option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Telefonica Brasil S.A. (VIV) : Free Stock Analysis Report
Nippon Telegraph and Telephone Corporation (NTTYY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
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Investors with an interest in Diversified Communication Services stocks have likely encountered both Telefonica Brasil (VIV) and NTT (NTTYY). The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits. Click to get this free report Telefonica Brasil S.A. (VIV) : Free Stock Analysis Report Nippon Telegraph and Telephone Corporation (NTTYY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use. Based on these metrics and many more, VIV holds a Value grade of A, while NTTYY has a Value grade of C. VIV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Click to get this free report Telefonica Brasil S.A. (VIV) : Free Stock Analysis Report Nippon Telegraph and Telephone Corporation (NTTYY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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NTTYY currently has a PEG ratio of 45.96. Another notable valuation metric for VIV is its P/B ratio of 1.25. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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250e1c66-81f7-462d-b97e-044ec6cd8331
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715127.0
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2023-12-01 00:00:00 UTC
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MDV vs. ESS: Which Stock Is the Better Value Option?
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DCOMP
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https://www.nasdaq.com/articles/mdv-vs.-ess%3A-which-stock-is-the-better-value-option
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nan
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nan
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Investors with an interest in REIT and Equity Trust - Residential stocks have likely encountered both Modiv Industrial, Inc. (MDV) and Essex Property Trust (ESS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Modiv Industrial, Inc. and Essex Property Trust are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MDV is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
MDV currently has a forward P/E ratio of 11.56, while ESS has a forward P/E of 14.20. We also note that MDV has a PEG ratio of 2.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ESS currently has a PEG ratio of 2.49.
Another notable valuation metric for MDV is its P/B ratio of 0.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ESS has a P/B of 2.40.
These are just a few of the metrics contributing to MDV's Value grade of B and ESS's Value grade of D.
MDV stands above ESS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MDV is the superior value option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Modiv Industrial, Inc. (MDV) : Free Stock Analysis Report
Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Modiv Industrial, Inc. and Essex Property Trust are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Investors with an interest in REIT and Equity Trust - Residential stocks have likely encountered both Modiv Industrial, Inc. (MDV) and Essex Property Trust (ESS). Modiv Industrial, Inc. and Essex Property Trust are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Click to get this free report Modiv Industrial, Inc. (MDV) : Free Stock Analysis Report Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use. These are just a few of the metrics contributing to MDV's Value grade of B and ESS's Value grade of D. MDV stands above ESS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MDV is the superior value option right now. Click to get this free report Modiv Industrial, Inc. (MDV) : Free Stock Analysis Report Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ESS currently has a PEG ratio of 2.49. These are just a few of the metrics contributing to MDV's Value grade of B and ESS's Value grade of D. MDV stands above ESS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MDV is the superior value option right now. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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91681532-0697-4d3c-8554-eeab374fcf42
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715128.0
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2023-12-01 00:00:00 UTC
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ITGR vs. EW: Which Stock Is the Better Value Option?
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DCOMP
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https://www.nasdaq.com/articles/itgr-vs.-ew%3A-which-stock-is-the-better-value-option-3
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nan
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Investors looking for stocks in the Medical - Instruments sector might want to consider either Integer (ITGR) or Edwards Lifesciences (EW). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Integer and Edwards Lifesciences are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ITGR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ITGR currently has a forward P/E ratio of 18.98, while EW has a forward P/E of 26.99. We also note that ITGR has a PEG ratio of 1.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EW currently has a PEG ratio of 3.78.
Another notable valuation metric for ITGR is its P/B ratio of 1.99. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EW has a P/B of 6.10.
These metrics, and several others, help ITGR earn a Value grade of B, while EW has been given a Value grade of D.
ITGR stands above EW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ITGR is the superior value option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits. Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use. Click to get this free report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use. These metrics, and several others, help ITGR earn a Value grade of B, while EW has been given a Value grade of D. ITGR stands above EW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ITGR is the superior value option right now. Click to get this free report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors looking for stocks in the Medical - Instruments sector might want to consider either Integer (ITGR) or Edwards Lifesciences (EW). These metrics, and several others, help ITGR earn a Value grade of B, while EW has been given a Value grade of D. ITGR stands above EW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ITGR is the superior value option right now. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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182bba51-24e7-4bf0-b31b-bc864c31848f
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715129.0
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2023-12-01 00:00:00 UTC
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MGPI or NSRGY: Which Is the Better Value Stock Right Now?
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DCOMP
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https://www.nasdaq.com/articles/mgpi-or-nsrgy%3A-which-is-the-better-value-stock-right-now
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nan
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Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of MGP (MGPI) and Nestle SA (NSRGY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
MGP has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #3 (Hold) right now. This means that MGPI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
MGPI currently has a forward P/E ratio of 15.22, while NSRGY has a forward P/E of 20.74. We also note that MGPI has a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NSRGY currently has a PEG ratio of 2.52.
Another notable valuation metric for MGPI is its P/B ratio of 2.30. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NSRGY has a P/B of 7.43.
These are just a few of the metrics contributing to MGPI's Value grade of B and NSRGY's Value grade of C.
MGPI sticks out from NSRGY in both our Zacks Rank and Style Scores models, so value investors will likely feel that MGPI is the better option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MGP Ingredients, Inc. (MGPI) : Free Stock Analysis Report
Nestle SA (NSRGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
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The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. These are just a few of the metrics contributing to MGPI's Value grade of B and NSRGY's Value grade of C. MGPI sticks out from NSRGY in both our Zacks Rank and Style Scores models, so value investors will likely feel that MGPI is the better option right now. Click to get this free report MGP Ingredients, Inc. (MGPI) : Free Stock Analysis Report Nestle SA (NSRGY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. These are just a few of the metrics contributing to MGPI's Value grade of B and NSRGY's Value grade of C. MGPI sticks out from NSRGY in both our Zacks Rank and Style Scores models, so value investors will likely feel that MGPI is the better option right now. Click to get this free report MGP Ingredients, Inc. (MGPI) : Free Stock Analysis Report Nestle SA (NSRGY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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NSRGY currently has a PEG ratio of 2.52. These are just a few of the metrics contributing to MGPI's Value grade of B and NSRGY's Value grade of C. MGPI sticks out from NSRGY in both our Zacks Rank and Style Scores models, so value investors will likely feel that MGPI is the better option right now. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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72481de8-930f-4114-980a-052c52cac88d
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715130.0
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2023-12-01 00:00:00 UTC
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1 Cathie Wood Stock With Over 100% Upside, According to Analysts
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DCOMP
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https://www.nasdaq.com/articles/1-cathie-wood-stock-with-over-100-upside-according-to-analysts
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nan
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nan
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Any new buy or sell by charismatic stock picker Cathie Wood draws plenty of headline attention from financial media - and from market participants, as well. The maverick fund manager, known for making outsized bets on “disruptive” tech companies, has garnered her fair share of both followers and critics over the years. However, investors attempting to reproduce Wood's momentum-driven investing strategy needs to get ready for a wild ride; for every breakout stock like Nvidia (NVDA) or Tesla (TSLA), there is a dud like Unity Software (U) or Invita (NVTA).
Notably, Wood's specific investing strategy tends to yield the best returns over the shorter term. Her flagship Ark Innovation ETF (ARKK) is outperforming the Nasdaq Composite ($NASX) on a year-to-date basis - up 50% versus a gain of just over 35% for the broad-based index - but over longer time frames, like the three-year period shown below, ARKK lags the Nasdaq by a considerable margin.
www.barchart.com
All of that said, let's take a look at the consensus forecast for Wood's newest addition to her flagship fund - an unprofitable biotech stock under $10.
About Recursion Pharmaceuticals
Headquartered in Salt Lake City, Recursion Pharmaceuticals (RXRX) is a clinical-stage biotechnology company that is pioneering the use of machine learning and artificial intelligence (AI) to industrialize drug discovery. The company's platform, Recursion Operating System (ROS), is designed to identify and develop new therapies for a wide range of diseases by analyzing massive datasets of biological and chemical data.
A member of the Russell 2000 Index (RUT), the company's market cap currently stands at about $1.5 billion. Recursion Pharma stock is down more than 10% on a YTD basis, despite a quick 30% rally over the past month.
www.barchart.com
On Nov. 28, Wood's flagship ARKK fund purchased nearly 1.9 million shares of Recursion Pharmaceuticals for about $12.3 million, just two weeks after a 3.7 million share purchase worth roughly $24 million. Wood's flagship fund now holds just under 6 million shares of the company worth about $41 million, and those RXRX holdings currently account for 0.5% of the ARKK ETF's total weight.
So, is the biotech stock a smart buy right now? Let's take a look.
Is RXRX an AI Stock Pick?
Recursion Pharma may be a biotech stock, but it scored a $50 million investment from Nvidia to fund its AI technology in mid-July - making NVDA a significant stakeholder in RXRX. The partnership is centered on leveraging Nvidia's cloud platform to train Recursion's AI models, primarily for drug discovery support. Notably, a report by market intelligence firm Statista states that AI-enabled drug discovery is expected to expand at a CAGR of 25% through 2030, dominated by the North American market.
Moreover, in its latest quarterly results, the company announced the expansion of its in-house supercomputer BioHive-1. This super-computer, powered by NVIDIA H100 GPUs, will likely make it the most powerful computer wholly owned or operated by any biopharma company in the world. Recursion remains confident that the improved BioHive-1 will be operational in the first half of 2024.
Notably, Recursion also has access to a massive dataset of 100 billion images of human cells extracted by computer vision and machine learning algorithms, thanks to its proprietary Recursion OS platform. Recursion OS integrates diverse technologies that continuously expand one of the world's largest proprietary biological and chemical datasets.
Further, leveraging its AI-enabled dataset, Recursion has developed one of the deepest pipelines of any technology-enabled drug discovery company, with over 40 programs in various stages of development for the treatment of deadly diseases, like brain hemorrhages, rare tumors in the nervous system, and diabetes complications, among others.
Along with Nvidia, Recursion has forged partnerships with well-established names in the biotech and healthcare sector - including its ventures with pharmaceutical giant Bayer AG, Takeda (TAK), and healthcare IT company Tempus.
RXRX Is Still Unprofitable
As a clinical stage biotech company, Recursion's financials are somewhat predictably steeped in red ink. The company has yet to report a profit - and even at that, its latest results for Q3 2023 fell short of estimates on both the top and bottom lines.
Recursion's revenues for the third quarter came in at $10.5 million, down 20.5% from the prior year, and well below the consensus forecast for $12.87 million. Losses expanded by 23% from the year-ago period to $0.43 per share, which again came in wider than the consensus estimate. Looking ahead to fiscal 2024, losses per share are expected to widen 14% on an annual basis to $1.91 per share, based on the average Wall Street forecast.
The company's negative operating cash flows increased to $72.9 million from $54.5 million in the previous year. And through the first nine months of 2023, the cash balance declined significantly to $387.3 million, compared to about $550 million at the beginning of the year. Although that may not be cause for immediate concern due to manageable debt levels, the negative operating cash flow is certainly worth noting.
Another point of concern for potential RXRX investors are the stock's relatively rich valuations, despite the low absolute share price. Recursion stock is trading at a forward EV/sales ratio of 20.6 and forward price/sales of 26.7 - both of which are several orders of magnitude higher than comparable metrics for unprofitable small-cap biotech stocks like Catalyst Pharmaceuticals (CPRX) and BioCryst Pharmaceuticals (BCRX), as well as the healthcare sector median.
Analysts Still Have High Hopes
Just like Cathie Wood, analysts remain optimistic about Recursion stock, which has a consensus “Moderate Buy” rating and a mean target price of $15.29. This denotes an expected upside potential of about 123.2% from current levels. In fact, even the low price target of $9.00 implies expected upside of 30%.
Out of seven analysts covering the stock, two have a “Strong Buy” rating, one has a “Moderate Buy” rating, and four have a “Hold” rating.
www.barchart.com
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, investors attempting to reproduce Wood's momentum-driven investing strategy needs to get ready for a wild ride; for every breakout stock like Nvidia (NVDA) or Tesla (TSLA), there is a dud like Unity Software (U) or Invita (NVTA). The company's platform, Recursion Operating System (ROS), is designed to identify and develop new therapies for a wide range of diseases by analyzing massive datasets of biological and chemical data. Recursion Pharma may be a biotech stock, but it scored a $50 million investment from Nvidia to fund its AI technology in mid-July - making NVDA a significant stakeholder in RXRX.
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www.barchart.com On Nov. 28, Wood's flagship ARKK fund purchased nearly 1.9 million shares of Recursion Pharmaceuticals for about $12.3 million, just two weeks after a 3.7 million share purchase worth roughly $24 million. Wood's flagship fund now holds just under 6 million shares of the company worth about $41 million, and those RXRX holdings currently account for 0.5% of the ARKK ETF's total weight. Analysts Still Have High Hopes Just like Cathie Wood, analysts remain optimistic about Recursion stock, which has a consensus “Moderate Buy” rating and a mean target price of $15.29.
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www.barchart.com On Nov. 28, Wood's flagship ARKK fund purchased nearly 1.9 million shares of Recursion Pharmaceuticals for about $12.3 million, just two weeks after a 3.7 million share purchase worth roughly $24 million. Wood's flagship fund now holds just under 6 million shares of the company worth about $41 million, and those RXRX holdings currently account for 0.5% of the ARKK ETF's total weight. Recursion Pharma may be a biotech stock, but it scored a $50 million investment from Nvidia to fund its AI technology in mid-July - making NVDA a significant stakeholder in RXRX.
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Wood's flagship fund now holds just under 6 million shares of the company worth about $41 million, and those RXRX holdings currently account for 0.5% of the ARKK ETF's total weight. Recursion Pharma may be a biotech stock, but it scored a $50 million investment from Nvidia to fund its AI technology in mid-July - making NVDA a significant stakeholder in RXRX. Analysts Still Have High Hopes Just like Cathie Wood, analysts remain optimistic about Recursion stock, which has a consensus “Moderate Buy” rating and a mean target price of $15.29.
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bb3a9b9d-0535-4c67-a7a3-a39cf0bbb93a
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715131.0
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2023-12-01 00:00:00 UTC
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Gear Up for Sprinkler (CXM) Q3 Earnings: Wall Street Estimates for Key Metrics
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DCOMP
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https://www.nasdaq.com/articles/gear-up-for-sprinkler-cxm-q3-earnings%3A-wall-street-estimates-for-key-metrics
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Analysts on Wall Street project that Sprinkler (CXM) will announce quarterly earnings of $0.07 per share in its forthcoming report, representing an increase of 250% year over year. Revenues are projected to reach $180.09 million, increasing 14.5% from the same quarter last year.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific Sprinkler metrics that are commonly monitored and projected by Wall Street analysts.
The consensus estimate for 'Revenue- Subscription' stands at $165.07 million. The estimate points to a change of +18% from the year-ago quarter.
Analysts expect 'Revenue- Professional Services' to come in at $15.02 million. The estimate suggests a change of -13.4% year over year.
The combined assessment of analysts suggests that 'Gross Margin - Professional Services' will likely reach -16.4%. The estimate compares to the year-ago value of 18%.
Analysts predict that the 'Gross Margin - Subscription' will reach 82.7%. Compared to the current estimate, the company reported 81% in the same quarter of the previous year.
View all Key Company Metrics for Sprinkler here>>>
Shares of Sprinkler have demonstrated returns of +12.9% over the past month compared to the Zacks S&P 500 composite's +9.2% change. With a Zacks Rank #3 (Hold), CXM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Sprinklr, Inc. (CXM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. Bearing this in mind, let's now explore the average estimates of specific Sprinkler metrics that are commonly monitored and projected by Wall Street analysts.
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Analysts on Wall Street project that Sprinkler (CXM) will announce quarterly earnings of $0.07 per share in its forthcoming report, representing an increase of 250% year over year. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. Click to get this free report Sprinklr, Inc. (CXM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Analysts on Wall Street project that Sprinkler (CXM) will announce quarterly earnings of $0.07 per share in its forthcoming report, representing an increase of 250% year over year. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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Revenues are projected to reach $180.09 million, increasing 14.5% from the same quarter last year. Compared to the current estimate, the company reported 81% in the same quarter of the previous year. Shares of Sprinkler have demonstrated returns of +12.9% over the past month compared to the Zacks S&P 500 composite's +9.2% change.
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8049785e-c82c-42f8-8b1c-2f2a137f4a64
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715132.0
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2023-12-01 00:00:00 UTC
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National Fuel Gas (NFG) Down 4.3% Since Last Earnings Report: Can It Rebound?
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DCOMP
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https://www.nasdaq.com/articles/national-fuel-gas-nfg-down-4.3-since-last-earnings-report%3A-can-it-rebound
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A month has gone by since the last earnings report for National Fuel Gas (NFG). Shares have lost about 4.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is National Fuel Gas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
National Fuel Gas Q4 Earnings & Sales Lag Estimates
National Fuel Gas Company reported fiscal fourth-quarter 2023 adjusted operating earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 83 cents by 6%. The bottom line declined 34.5% from the year-ago figure of $1.19.
GAAP earnings in the quarter were 80 cents per share, down 53.2% from the year-ago level of $1.71.
Total Revenues
Sales of $368.9 million lagged the Zacks Consensus Estimate of $446 million by 17.3%.
The top line decreased 15.2% from the prior-year figure of $435.1 million. The year-over-year fall was primarily due to lower realized natural gas prices, higher operating expenses and higher income tax expenses in the upstream business.
Highlights of the Release
Total operating expenses decreased 5.3% to $243.6 million year over year.
Operating income was down 29.5% year over year to $125.3 million.
Interest expenses totaled $28.4 million, down 6% from the year-ago figure of $30.2 million.
Financial Highlights
As of Sep 30, 2023, National Fuel Gas had cash and temporary cash investments of $55.4 million compared with $46.1 million as of Sep 30, 2022.
Long-term debt (excluding current maturities) was $2,384.5 million as of Sep 30, 2023, compared with $2,083.4 million as of Sep 30, 2022.
Net cash provided by operating activities for fiscal 2023 was $1,237.1 million compared with $812.5 million a year ago.
Total capital expenditures in fiscal 2023 totaled $1,009.9 million compared with $811.8 million in fiscal 2022.
Guidance
National Fuel Gas revised its fiscal 2024 earnings guidance to the range of $5.40-$5.90 per share from $5.50-$6.00. The Zacks Consensus Estimate for the same is pegged at $5.61 per share.
NFG expects capital expenditures in the range of $865-$975 million for fiscal 2024. It expects production volume in the band of 390-410 billion cubic feet equivalent for the same year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, National Fuel Gas has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, National Fuel Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
National Fuel Gas Company (NFG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent negative trend continue leading up to its next earnings release, or is National Fuel Gas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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National Fuel Gas Q4 Earnings & Sales Lag Estimates National Fuel Gas Company reported fiscal fourth-quarter 2023 adjusted operating earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 83 cents by 6%. Click to get this free report National Fuel Gas Company (NFG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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National Fuel Gas Company reported fiscal fourth-quarter 2023 adjusted operating earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 83 cents by 6%. Total Revenues Sales of $368.9 million lagged the Zacks Consensus Estimate of $446 million by 17.3%. Financial Highlights As of Sep 30, 2023, National Fuel Gas had cash and temporary cash investments of $55.4 million compared with $46.1 million as of Sep 30, 2022.
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A month has gone by since the last earnings report for National Fuel Gas (NFG). National Fuel Gas Q4 Earnings & Sales Lag Estimates Interest expenses totaled $28.4 million, down 6% from the year-ago figure of $30.2 million.
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715133.0
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2023-12-01 00:00:00 UTC
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Envista (NVST) Up 6.8% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/envista-nvst-up-6.8-since-last-earnings-report%3A-can-it-continue
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nan
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A month has gone by since the last earnings report for Envista (NVST). Shares have added about 6.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Envista due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Envista Q3 Earnings Miss Estimates, Gross Margin Down
Envista Holdings reported third-quarter 2023 adjusted earnings per share of 43 cents, down 8.5% year over year. The bottom line missed the Zacks Consensus Estimate by 6.5%.
The adjustments include charges and benefits related to the amortization of acquired intangible assets, certain asset impairment charges and asset impairments, among others.
The company’s earnings from continuing operations were 12 cents in the quarter compared with the year-ago quarter’s 28 cents, down 57.1%.
Revenues in Detail
Revenues totaled $631.3 million in the reported quarter, up 0.03% year over year. The metric lagged the Zacks Consensus Estimate by 3%.
The company witnessed the negative impact of both Russia and the weakness of higher-end specialty procedures in developed markets.
Segments in Detail
In the third quarter, Speciality Products & Technologies totaled $399.5 million, up 1%. The Speciality Products & Technologies delivered low-single-digit core growth as Spark outperformed.
Revenues in the Equipment & Consumables segment fell 1.7% year over year to $231.8 million in the quarter under review. The downside was due to the planned rationalization of traditional imaging portfolio.
Operational Update
Gross profit for the reported quarter fell 0.4% year over year to $363.3 million. Gross margin contracted 24 basis points (bps) to 57.5%.
Selling, general and administrative expenses were down 2.5% year over year to $257.7 million. Research and development expenses fell 14.2% year over year to $22.3 million.
Operating profit of $83.3 million surged 11.8% year over year. The operating margin expanded 139 bps to 13.2%.
Financial Update
Envista ended third-quarter 2023 with cash and cash equivalents of $824.2 million compared with $651.7 million at the end of second-quarter 2023. Total long-term debt was $1.38 billion at the end of the third quarter compared with $875.6 million at the end of the second quarter of 2023.
Net cash provided by operating activities at the end of the third quarter was $173.7 million compared with $72.4 million a year ago.
2023 Guidance
Due to the continued uncertainties in the macro environment, volatility in the North American distribution channel and the continued investment in its long-term growth initiatives, Envista expects full-year core sales to be down slightly.
The Zacks Consensus Estimate for 2023 revenues is pegged at $2.64 billion.
Adjusted EBITDA margin is expected to be between 18% to 19%
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -33.58% due to these changes.
VGM Scores
Currently, Envista has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Envista has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Envista belongs to the Zacks Medical - Products industry. Another stock from the same industry, ResMed (RMD), has gained 5.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
ResMed reported revenues of $1.1 billion in the last reported quarter, representing a year-over-year change of +16%. EPS of $1.64 for the same period compares with $1.51 a year ago.
For the current quarter, ResMed is expected to post earnings of $1.81 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate has changed +1% over the last 30 days.
ResMed has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Envista Holdings Corporation (NVST) : Free Stock Analysis Report
ResMed Inc. (RMD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. The company witnessed the negative impact of both Russia and the weakness of higher-end specialty procedures in developed markets. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Envista Q3 Earnings Miss Estimates, Gross Margin Down Envista Holdings reported third-quarter 2023 adjusted earnings per share of 43 cents, down 8.5% year over year. Operational Update Gross profit for the reported quarter fell 0.4% year over year to $363.3 million. Click to get this free report Envista Holdings Corporation (NVST) : Free Stock Analysis Report ResMed Inc. (RMD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Envista Q3 Earnings Miss Estimates, Gross Margin Down Envista Holdings reported third-quarter 2023 adjusted earnings per share of 43 cents, down 8.5% year over year. Revenues in Detail Revenues totaled $631.3 million in the reported quarter, up 0.03% year over year. Click to get this free report Envista Holdings Corporation (NVST) : Free Stock Analysis Report ResMed Inc. (RMD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Envista (NVST). Envista Q3 Earnings Miss Estimates, Gross Margin Down Envista Holdings reported third-quarter 2023 adjusted earnings per share of 43 cents, down 8.5% year over year. Research and development expenses fell 14.2% year over year to $22.3 million.
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18651bd4-aa88-4988-bd73-de63cb9e0f66
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715134.0
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2023-12-01 00:00:00 UTC
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Nu Skin (NUS) Up 1% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/nu-skin-nus-up-1-since-last-earnings-report%3A-can-it-continue
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nan
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It has been about a month since the last earnings report for Nu Skin Enterprises (NUS). Shares have added about 1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nu Skin due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Nu Skin Misses Q3 Earnings Estimates, Lowers Guidance
Nu Skin posted third-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Although the bottom line increased year over year, the top line declined.
The company encountered challenging year-over-year comparisons and persistent macroeconomic obstacles. It is worth noting that management revised its revenue and EPS projections for 2023 downward.
Nu Skin's third-quarter results were hurt by macro-economic challenges, which impacted consumer spending and customer acquisition, mainly in the Mainland China and the Americas segments. This was compounded by the continued strength of the U.S. dollar. However, Europe/Africa experienced double-digit gains. Accelerated growth of the Rhyz businesses remains a source of satisfaction, as Nu Skin continues to leverage its synergistic enterprise ecosystem. NUS has been actively pursuing long-term success through initiatives like introducing the ageLOC WellSpa iO, launching a channel growth incentive program and increasing monthly active users for its apps. The company has also rolled out a channel growth incentive program and has made progress in increasing the number of monthly active users for its Vera and Stela apps. Nu Skin also plans to continue developing its social commerce business model to enhance connections with consumers and affiliates. Apart from this, the company is making steady progress toward the Nu Vision 2025 strategy.
Q3 in Detail
Nu Skin’s adjusted earnings of 56 cents a share increased from the 47 cents reported in the year-ago quarter. However, the metric lagged the Zacks Consensus Estimate of 64 cents.
Revenues of $498.8 million tumbled 7.3% year over year. Revenues included a negative impact of 1% from foreign currency fluctuations. The top line missed the Zacks Consensus Estimate of $525 million. Sales leaders were down 6% year over year to 47,031. Nu Skin’s customer base dropped 21% to 978,907. The company’s paid affiliates were down 23% to 186,162.
The gross profit of $292.3 million declined from the $364.3 million reported in the year-ago quarter. The gross margin came in at 58.6%, down from the 67.7% reported in the year-ago quarter. The Nu Skin business’ gross margin came in at 61.8%, down from the 73% reported in the year-ago quarter.
Selling expenses declined to $187.8 million from the $216.5 million reported in the prior-year quarter. As a percentage of revenues, the metric was 37.7%, down from the 40.3% reported in the year-ago quarter. Nu Skin business’ selling expenses were 41.7% compared with 43.5% in the prior-year quarter. General and administrative expenses of $130.9 million declined from $138 million in the year-ago quarter. As a percentage of revenues, general and administrative expenses were 26.2%, up from 25.7% in the year-ago period.
Regional Results
Region-wise, revenues (at cc) declined 27%, 1%, 16% and 7% in the Americas, Mainland China, Southeast Asia/Pacific and South Korea, respectively in the third quarter. In Japan, EMEA and Hong Kong/Taiwan, revenues rose 5%, 3% and 6%, respectively, at cc. The Zacks Consensus Estimate for revenues was pegged at declines of 7.6%, 3.8% and 7.5% in the Americas, Japan and South Korea, respectively in the third quarter.
Other Financial Details
Nu Skin ended the quarter with cash and cash equivalents of $233.3 million, long-term debt of $362.9 million, and total stockholders' equity of $822.2 million. In the reported quarter, the company paid out dividends of $19.5 million, and repurchased 13 million shares. NUS has $162.4 million remaining under the current share repurchase authorization.
Guidance
Nu Skin anticipates revenues of $1.92-$1.96 billion for 2023, suggesting a 14-12% decline from the year-ago period’s reported figure. Earlier, revenues were expected to be $2.00-$2.08 billion. The company envisions unfavorable foreign currency impacts of 3-2% on 2023 revenues. Management envisions an adjusted EPS of $1.62-$1.77 compared with the $2.30-$2.60 expected earlier. The projection suggests a decline from adjusted earnings of $2.90 reported last year. On a reported basis, it is anticipated between a loss of 10 cents and earnings of 5 cents per share, down from the earlier stated earnings of $2.15-$2.45 per share.
For the fourth quarter, Nu Skin expects revenues between $440 million and $480 million, including an unfavorable foreign currency impact of 3-2%. The current revenue projection suggests a decline of 16% to 8% from the year-ago quarter’s reported level. The company expects adjusted earnings of 15-30 cents a share for the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -68.54% due to these changes.
VGM Scores
At this time, Nu Skin has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Nu Skin has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nu Skin's third-quarter results were hurt by macro-economic challenges, which impacted consumer spending and customer acquisition, mainly in the Mainland China and the Americas segments. Accelerated growth of the Rhyz businesses remains a source of satisfaction, as Nu Skin continues to leverage its synergistic enterprise ecosystem. The company has also rolled out a channel growth incentive program and has made progress in increasing the number of monthly active users for its Vera and Stela apps.
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Nu Skin Misses Q3 Earnings Estimates, Lowers Guidance Nu Skin posted third-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Q3 in Detail Nu Skin’s adjusted earnings of 56 cents a share increased from the 47 cents reported in the year-ago quarter. For the fourth quarter, Nu Skin expects revenues between $440 million and $480 million, including an unfavorable foreign currency impact of 3-2%.
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Nu Skin Misses Q3 Earnings Estimates, Lowers Guidance Nu Skin posted third-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Q3 in Detail Nu Skin’s adjusted earnings of 56 cents a share increased from the 47 cents reported in the year-ago quarter. For the fourth quarter, Nu Skin expects revenues between $440 million and $480 million, including an unfavorable foreign currency impact of 3-2%.
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It has been about a month since the last earnings report for Nu Skin Enterprises (NUS). Nu Skin Misses Q3 Earnings Estimates, Lowers Guidance Nu Skin posted third-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate. For the fourth quarter, Nu Skin expects revenues between $440 million and $480 million, including an unfavorable foreign currency impact of 3-2%.
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2b8b9e67-128b-4e7b-91a2-c298b6d03900
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715135.0
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2023-12-01 00:00:00 UTC
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Why Is MercadoLibre (MELI) Up 22.8% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-mercadolibre-meli-up-22.8-since-last-earnings-report
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nan
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nan
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It has been about a month since the last earnings report for MercadoLibre (MELI). Shares have added about 22.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is MercadoLibre due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
MercadoLibre's Q3 Earnings Beat, Revenues Rise Y/Y
MercadoLibre reported third-quarter 2023 earnings of $7.16 per share, which surpassed the Zacks Consensus Estimate by 22.39%. The company reported earnings of $2.56 per share in the year-ago quarter.
Revenues surged 39.8% on a year-over-year basis (69.1% on a FX-neutral basis) to $3.76 billion. The top line surpassed the Zacks Consensus Estimate by 5.22%.
Total revenues were driven by accelerating commerce and fintech revenues, which grew 45% and 33% year over year, respectively.
Revenues from MELI’s advertising services grew more than 70% on an FX-neutral basis and were equivalent to almost 1.7% of gross merchandise volume (GMV) at the end of the third quarter.
Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company. MercadoLibre’s rising GMV remained another positive. Strong shipment growth also contributed well to the reported results.
Quarter in Detail
Brazil: Net revenues in the third quarter came in at $2 billion (53.4% of the total revenues), rising 40.2% year over year.
Argentina: The market generated revenues of $825 million (21.9% of the top line), which surged 22.2% year over year.
Mexico: Net revenues in the reported quarter were $772 million (20.5% of the total revenues), which soared 66% year over year.
Other countries: The markets generated revenues of $157 million (4.2% of the total revenues), reflecting an increase of 31.9% on a year-over-year basis.
Key Metrics
GMV of $11.36 billion jumped 59.3% on an FX-neutral basis year over year. The figure surpassed the consensus mark by 3.51%.
The number of successful items sold was 357 million, up 25.7% year over year. The number of successful items shipped rose 26.8% year over year to $350 million.
TPV surged 121% year over year on a FX-neutral basis to $47.3 billion. This was driven by the strong performance of Mercado Pago. The figure beat the Zacks Consensus Estimate by 8.06%.
Off-Marketplace TPV was more than $35.3 billion, up 145% year over year on an FX-neutral basis.
TPV on the marketplace was 11.97 billion, up 31.7% year over year. Total payment transactions increased 74.3% year over year to $2.51 billion.
Unique active users totaled 120 million, up 36.4% year over year and beat the Zacks Consensus Estimate of 104 million.
Operating Details
For the third quarter, the gross margin was 53.1%, expanding 295 basis points (bps) year over year.
Operating expenses were $1.31 billion, which increased 24.5% year over year. As a percentage of revenues, the figure declined 430 bps year over year to 34.8% in the reported quarter.
The operating margin was 18.2%, expanding 724 bps year over year.
Balance Sheet
As of Sep 30, 2023, cash and cash equivalents were $2.17 billion, up from $1.86 billion as of Jun 30, 2023.
Short-term investments were $3.32 billion as of Sep 30, 2023, up from $2.8 billion as of Jun 30.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 14.52% due to these changes.
VGM Scores
At this time, MercadoLibre has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise MercadoLibre has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
MercadoLibre is part of the Zacks Internet - Commerce industry. Over the past month, Match Group (MTCH), a stock from the same industry, has gained 11%. The company reported its results for the quarter ended September 2023 more than a month ago.
Match Group reported revenues of $881.6 million in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $0.57 for the same period compares with $0.58 a year ago.
Match Group is expected to post earnings of $0.50 per share for the current quarter, representing a year-over-year change of +66.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -11.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Match Group. Also, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
Match Group Inc. (MTCH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Revenues from MELI’s advertising services grew more than 70% on an FX-neutral basis and were equivalent to almost 1.7% of gross merchandise volume (GMV) at the end of the third quarter. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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MercadoLibre's Q3 Earnings Beat, Revenues Rise Y/Y MercadoLibre reported third-quarter 2023 earnings of $7.16 per share, which surpassed the Zacks Consensus Estimate by 22.39%. Match Group reported revenues of $881.6 million in the last reported quarter, representing a year-over-year change of +8.9%. Click to get this free report MercadoLibre, Inc. (MELI) : Free Stock Analysis Report Match Group Inc. (MTCH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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MercadoLibre's Q3 Earnings Beat, Revenues Rise Y/Y MercadoLibre reported third-quarter 2023 earnings of $7.16 per share, which surpassed the Zacks Consensus Estimate by 22.39%. Quarter in Detail Brazil: Net revenues in the third quarter came in at $2 billion (53.4% of the total revenues), rising 40.2% year over year. Unique active users totaled 120 million, up 36.4% year over year and beat the Zacks Consensus Estimate of 104 million.
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It has been about a month since the last earnings report for MercadoLibre (MELI). MercadoLibre's Q3 Earnings Beat, Revenues Rise Y/Y MercadoLibre reported third-quarter 2023 earnings of $7.16 per share, which surpassed the Zacks Consensus Estimate by 22.39%. The company reported earnings of $2.56 per share in the year-ago quarter.
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ee55c393-2da9-4304-881c-32d0c1a97468
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715136.0
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2023-12-01 00:00:00 UTC
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Marriott Vacations Worldwide (VAC) Down 11.6% Since Last Earnings Report: Can It Rebound?
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DCOMP
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https://www.nasdaq.com/articles/marriott-vacations-worldwide-vac-down-11.6-since-last-earnings-report%3A-can-it-rebound
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nan
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nan
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It has been about a month since the last earnings report for Marriott Vacations Worldwide (VAC). Shares have lost about 11.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Marriott Vacations Worldwide due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Marriott Vacations Q3 Earnings & Revenues Lag Estimates
Marriott Vacations reported dismal third-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line declined year over year.
Earnings & Revenue Discussion
During third-quarter 2023, Marriott Vacations reported adjusted earnings per share (EPS) of $1.20, missing the Zacks Consensus Estimate of $2.19 by 45.2%. In the year-ago quarter, it reported an adjusted EPS of $3.02.
Quarterly revenues of $1,186 million missed the consensus mark of $1,201 million by 1.3%. The top line declined 5.3% on a year-over-year basis.
Segmental Performances
Vacation Ownership: During the third quarter, the segment’s revenues totaled $1,126 million, down 4.7% from $1,182 million reported in the prior-year quarter.
During the quarter, the company’s Vacation Ownership contract sales fell 9.3% year over year to $438 million. The downside was primarily caused by a 7% decline in VPG, a 3% decline in tours and a $59 million increase in its loan loss provision. This and the impact of the Maui wildfires added to the downside.
The segment’s adjusted EBITDA during the quarter came in at $195 million, down 23.5% from $255 million reported in the prior-year quarter.
Exchange & Third-Party Management: The segment’s revenues of $64 million declined 9.9% from $71 million reported in the year-ago quarter. Revenues, excluding cost reimbursements, declined 7% year over year.
During third-quarter 2023, interval international active members dropped 1% year over year to 1.6 million. Average revenues per member inched up 1% on a year-over-year basis. Adjusted EBITDA was $31 million, down 20.5% year over year.
Corporate and Other Results
During the third quarter, general and administrative costs totaled $57 million, down 8% year over year.
Expenses & EBITDA
During the quarter, total expenses increased 6.8% year over year to $1,081 million from $1,012 million reported in the year-ago quarter. Our estimate for the metric was $1,082.9 million.
Adjusted EBITDA amounted to $150 million compared with $240 million reported in the prior-year quarter. The company anticipates a $24 million negative impact on Adjusted EBITDA from the Maui wildfires and a $49 million impact from the increased loan loss provision in the quarter.
Balance Sheet
As of Sep 30, 2023, Marriott Vacations’ cash and cash equivalents were $265 million compared with $242 million as of Jun 30, 2023.
At the end of the third quarter, the company had $3 billion of corporate debt and $2 billion of non-recourse debt related to its securitized notes receivable.
2023 Outlook
The company has lowered its 2023 expectations considering the estimated impact of the Maui wildfires.
For 2023, management now anticipates contract sales in the range of $1,750-$1,770 million compared with the previous expectation of $1,840-$1,900 million. Adjusted free cash flow is projected in the range of $430-$460 million compared with the prior projection of $540-$600 million. Adjusted EBITDA is estimated to be between $745 million and $765 million compared with the previous anticipation of $880 million and $910 million.
Adjusted EPS is expected to be between $7.44 and $7.78, down from the prior estimate of $9.76 and $10.22.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -30.43% due to these changes.
VGM Scores
Currently, Marriott Vacations Worldwide has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Marriott Vacations Worldwide has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Marriott Vacations Worldwide is part of the Zacks Hotels and Motels industry. Over the past month, Hilton Worldwide Holdings Inc. (HLT), a stock from the same industry, has gained 9.8%. The company reported its results for the quarter ended September 2023 more than a month ago.
Hilton Worldwide Holdings Inc. reported revenues of $2.67 billion in the last reported quarter, representing a year-over-year change of +12.9%. EPS of $1.67 for the same period compares with $1.31 a year ago.
Hilton Worldwide Holdings Inc. is expected to post earnings of $1.55 per share for the current quarter, representing a year-over-year change of -2.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Hilton Worldwide Holdings Inc. Also, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marriot Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent negative trend continue leading up to its next earnings release, or is Marriott Vacations Worldwide due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Hilton Worldwide Holdings Inc. is expected to post earnings of $1.55 per share for the current quarter, representing a year-over-year change of -2.5%.
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Marriott Vacations Q3 Earnings & Revenues Lag Estimates Marriott Vacations reported dismal third-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Earnings & Revenue Discussion During third-quarter 2023, Marriott Vacations reported adjusted earnings per share (EPS) of $1.20, missing the Zacks Consensus Estimate of $2.19 by 45.2%. Click to get this free report Marriot Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Marriott Vacations Q3 Earnings & Revenues Lag Estimates Marriott Vacations reported dismal third-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Expenses & EBITDA During the quarter, total expenses increased 6.8% year over year to $1,081 million from $1,012 million reported in the year-ago quarter. Adjusted EBITDA is estimated to be between $745 million and $765 million compared with the previous anticipation of $880 million and $910 million.
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It has been about a month since the last earnings report for Marriott Vacations Worldwide (VAC). Hilton Worldwide Holdings Inc. reported revenues of $2.67 billion in the last reported quarter, representing a year-over-year change of +12.9%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Hilton Worldwide Holdings Inc. Also, the stock has a VGM Score of B. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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7de12179-19cc-4ec8-8798-625bd62034fb
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715137.0
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2023-12-01 00:00:00 UTC
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Why Is NMI Holdings (NMIH) Down 1.7% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-nmi-holdings-nmih-down-1.7-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for NMI Holdings (NMIH). Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NMI Holdings due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
NMI Holdings Q3 Earnings Top, Insurance in Force Rises
NMI Holdingsreported a third-quarter 2023 operating net income per share of $1.00, which beat the Zacks Consensus Estimate by 6.4%. The bottom line increased 11.1% year over year.
The quarterly results reflected higher premiums and net investment income and increased persistency, which drove growth in the company’s high-quality insured portfolio.
Operational Update
NMI Holdings’ total operating revenues of $148 million increased 13% year over year on higher net premiums earned (up 10%) and net investment income (up 49.5%). Revenues beat the Zacks Consensus Estimate by 1.2%.
Primary insurance in force increased 8.7% to $164.8 billion. Annual persistency was 86.2%, up 610 basis points (bps) year over year.
New insurance written was $11.3 billion, down 34% year over year.
Underwriting and operating expenses totaled $27.74 million, up 2% year over year. Insurance claims and claim expenses were $4.8 million compared with a benefit of $3.4 million in the year-ago quarter.
The loss ratio was 3.7 against (2.9) in the year-ago quarter.
The adjusted expense ratio of 21.3 improved 160 bps year over year, while the adjusted combined ratio of 25 deteriorated 480 bps year over year.
Financial Update
Book value per share, a measure of net worth, was up 20.5% year over year to $21.94 as of Sep 30, 2023.
NMI Holdings had $176.5 million in cash and cash equivalents, up nearly fourfold from the 2022 end. The debt balance of $397.2 million increased 0.3% from the 2022 end.
Annualized adjusted return on equity was 19%, which contracted 110 bps year over year.
Total PMIERs available assets were $2.6 billion and net risk-based required assets totaled $1.4 billion at third-quarter 2023 end.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, NMI Holdings has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, NMI Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
NMI Holdings is part of the Zacks Insurance - Property and Casualty industry. Over the past month, W.R. Berkley (WRB), a stock from the same industry, has gained 7%. The company reported its results for the quarter ended September 2023 more than a month ago.
W.R. Berkley reported revenues of $3.07 billion in the last reported quarter, representing a year-over-year change of +10.1%. EPS of $1.35 for the same period compares with $1.01 a year ago.
For the current quarter, W.R. Berkley is expected to post earnings of $1.32 per share, indicating a change of +13.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for W.R. Berkley. Also, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NMI Holdings Inc (NMIH) : Free Stock Analysis Report
W.R. Berkley Corporation (WRB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. The quarterly results reflected higher premiums and net investment income and increased persistency, which drove growth in the company’s high-quality insured portfolio. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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NMI Holdings Q3 Earnings Top, Insurance in Force Rises NMI Holdingsreported a third-quarter 2023 operating net income per share of $1.00, which beat the Zacks Consensus Estimate by 6.4%. Operational Update NMI Holdings’ total operating revenues of $148 million increased 13% year over year on higher net premiums earned (up 10%) and net investment income (up 49.5%). Click to get this free report NMI Holdings Inc (NMIH) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Operational Update NMI Holdings’ total operating revenues of $148 million increased 13% year over year on higher net premiums earned (up 10%) and net investment income (up 49.5%). The adjusted expense ratio of 21.3 improved 160 bps year over year, while the adjusted combined ratio of 25 deteriorated 480 bps year over year. Click to get this free report NMI Holdings Inc (NMIH) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for NMI Holdings (NMIH). NMI Holdings Q3 Earnings Top, Insurance in Force Rises NMI Holdingsreported a third-quarter 2023 operating net income per share of $1.00, which beat the Zacks Consensus Estimate by 6.4%. The company reported its results for the quarter ended September 2023 more than a month ago.
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7dbf8cff-5dbc-4233-897c-34da3c4c29fb
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715138.0
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2023-12-01 00:00:00 UTC
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Ansys (ANSS) Up 7.5% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/ansys-anss-up-7.5-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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It has been about a month since the last earnings report for Ansys (ANSS). Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ansys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Ansys Q3 Earnings Beat Estimates
Ansys reported third-quarter 2023 earnings of $1.41 per share, beating the Zacks Consensus Estimate by 11.9%. The bottom line declined 20.3% year over year.
Non-GAAP revenues of $458.8 million missed the Zacks Consensus Estimate by 1.7%. The top line decreased 3% (up 4% at constant currency or cc) from a year ago.
Ansys stated that it was notified by the U.S. Department of Commerce of incremental approval processes and export restrictions including sales to some Chinese entities. This resulted in a $20 million headwind to both ACV and revenues for the third quarter.
Further, management highlighted that these new restrictions and processes are likely to elongate transaction cycles, causing delays in closing of certain deals in the fourth quarter. Therefore, it tempered its outlook for 2023. It expects these additional restrictions and processes to be a $25 million headwind to 2023 ACV and revenues compared with the previous forecast.
The company now projects non-GAAP revenues in the range of $2,234-$2,284 million compared with the earlier prediction of $2,257-$2,327 million. Management suggests non-GAAP operating margin to be between 41% and 42%.
Non-GAAP earnings are anticipated in the range of $8.34-$8.75 per share compared with the previous guidance of $8.39-$8.88.
ACV is estimated to be between $2,243 million and $2,288 million. Operating cash flow is expected in the $705-$735 million band. Earlier, the company had envisioned ACV to be between $2,275 million and $2,340 million. Operating cash flow is forecast in the $699-$749 million range.
Quarter in Detail
Subscription lease revenues (22.6% of non-GAAP revenues) were down 25.1% at cc to $103.6 million. Perpetual licenses revenues (12.8%) fell 19.8% year over year at cc to $58.9 million.
Maintenance revenues (60.6%) climbed 10.2% at cc to $278.1 million. Service revenues (4%) were up 12.8% year over year to $18.3 million.
Direct and indirect channels contributed 73.5% and 26.5%, respectively, to non-GAAP revenues.
ACV grew 11.8% year over year (up 10.4% at cc) to $457.5 million. Our estimate was $466.3 million.
On a geographic basis, the Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 47.6%, 26.5% and 25.9% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were up 3.9% at cc to $218.3 million. EMEA revenues dipped 5.4% at cc to $121.6 million. Revenues from the Asia-Pacific plunged 15.9% at cc to $118.9 million.
Deferred revenues and backlogs were $1.206 billion, up 8.7% year over year.
Operating Details
Non-GAAP gross margin was unchanged on a year-over-year basis at 91.1%.
Total operating expenses rose 12.7% year over year to $323.7 million due to higher research and development, and selling, general and administrative expenses.
Non-GAAP operating margin contracted 690 bps on a year-over-year basis to 34.1%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and short-term investments amounted to $639.5 million compared with $478 million as of Jun 30, 2023.
As of Sep 30, 2023, the company’s long-term debt was $753.8 million compared with $753.7 million as of Jun 30, 2023.
In the quarter under review, cash from operations came in at $160.8 million compared with $127.2 million in the prior-year quarter. In the quarter under discussion, the company did not repurchase shares. As of Sep 30, 2023, it had 1.1 million shares remaining under its share buyback program.
Guidance
For fourth-quarter 2023, Ansys expects non-GAAP earnings in the range of $3.48-$3.89 per share. Non-GAAP revenues are anticipated to be between $769.2 million and $819.2 million. Management projects non-GAAP operating margin in the 48.9-51.2% band.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.05% due to these changes.
VGM Scores
At this time, Ansys has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ansys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Ansys belongs to the Zacks Computer - Software industry. Another stock from the same industry, SAP (SAP), has gained 14.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
SAP reported revenues of $8.43 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $1.58 for the same period compares with $1.13 a year ago.
For the current quarter, SAP is expected to post earnings of $1.67 per share, indicating a change of +63.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.2% over the last 30 days.
SAP has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ANSYS, Inc. (ANSS) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Ansys stated that it was notified by the U.S. Department of Commerce of incremental approval processes and export restrictions including sales to some Chinese entities. Further, management highlighted that these new restrictions and processes are likely to elongate transaction cycles, causing delays in closing of certain deals in the fourth quarter.
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Ansys Q3 Earnings Beat Estimates Ansys reported third-quarter 2023 earnings of $1.41 per share, beating the Zacks Consensus Estimate by 11.9%. It expects these additional restrictions and processes to be a $25 million headwind to 2023 ACV and revenues compared with the previous forecast. Click to get this free report ANSYS, Inc. (ANSS) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Ansys Q3 Earnings Beat Estimates Ansys reported third-quarter 2023 earnings of $1.41 per share, beating the Zacks Consensus Estimate by 11.9%. The company now projects non-GAAP revenues in the range of $2,234-$2,284 million compared with the earlier prediction of $2,257-$2,327 million. Non-GAAP revenues are anticipated to be between $769.2 million and $819.2 million.
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Ansys Q3 Earnings Beat Estimates Ansys reported third-quarter 2023 earnings of $1.41 per share, beating the Zacks Consensus Estimate by 11.9%. ACV is estimated to be between $2,243 million and $2,288 million. Service revenues (4%) were up 12.8% year over year to $18.3 million.
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006e9815-513e-4eaf-b767-e11d96a1e0d9
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715139.0
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2023-12-01 00:00:00 UTC
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Prudential (PRU) Up 6.7% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/prudential-pru-up-6.7-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for Prudential (PRU). Shares have added about 6.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Prudential due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Prudential Q3 Earnings Surpass, Revenues Fall Y/Y
Prudential Financial, Inc.reported third-quarter 2023 adjusted operating income of $3.44 per share, which beat the Zacks Consensus Estimate by 8.9%. Moreover, the bottom line rose 45% year over year.
Total revenues of $10.1 billion decreased 52% year over year and missed the Zacks Consensus Estimate by 21.5%. The decline in revenues was due to lower premiums, policy charges and fee income, asset management fees, commissions and other income.
Prudential Financial's third-quarter results reflect lower expenses and higher net investment spread results, partially offset by lower agency and seed and co-investment income and a decline in income from pension as well as other employee benefit plans.
Operational Update
Total benefits and expenses amounted to $8.5 billion, which declined 57.2% year over year in the third quarter. This decrease was due to lower insurance and annuity benefits and amortization of acquisition costs. The figure was lower than our estimate of $11.2 billion.
Quarterly Segment Update
Prudential Global Investment Management’s (PGIM) adjusted operating income of $211 million in the reported quarter decreased 3.6% year over year. This decrease primarily reflects lower other related revenues, primarily due to lower agency and seed and co-investment income and higher expenses. The figure was higher than our estimate of $198.8 million.
PGIM assets under management of $1.219 trillion increased 1% year over year. The increase was due to equity market appreciation and spread compression, partially offset by net outflows and the impact of higher interest rates.
The U.S. Businesses delivered an adjusted operating income of $1.088 billion, which increased 77% year over year. The figure was higher than our estimate of $985.9 million. This increase primarily reflects higher net investment spread results and lower expenses, partially offset by lower net fee income.
International Businesses adjusted operating income increased 8.4% year over year to $811 million in the third quarter. The figure was lower than our estimate of $816 million. This increase primarily reflects higher net investment spread results.
Corporate and Other incurred an adjusted operating loss of $504 million, wider than a loss of $415 million reported a year ago. The figure was higher than our estimate of a loss of $459.3 million. This higher loss primarily reflects higher expenses, less favorable foreign exchange rate impacts and lower income from pension and other employee benefit plans. It was partially offset by higher net investment income and lower debt interest costs.
Capital Deployment
Prudential Financial managed to return capital to its shareholders in the form of share repurchases worth $250 million and dividends worth $461 million in the third quarter.
Financial Update
Prudential Financial exited the third quarter with cash and cash equivalents of $16.9 billion, which decreased 16% from 2022-end.
Total debt balance of $19.5 billion decreased 5.7% from 2022-end.
As of Sep 30, 2023, Prudential Financial’s assets under management and administration increased 2.5% year over year to $1.5 trillion.
Adjusted book value per common share, a measure of the company’s net worth, was $94.19, which decreased 2.3% year over year.
Operating return on average equity was 14.5% in the second quarter, which improved 470 basis points year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -7.63% due to these changes.
VGM Scores
At this time, Prudential has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Prudential has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Prudential is part of the Zacks Insurance - Multi line industry. Over the past month, The Hartford (HIG), a stock from the same industry, has gained 6.2%. The company reported its results for the quarter ended September 2023 more than a month ago.
The Hartford reported revenues of $4.21 billion in the last reported quarter, representing a year-over-year change of +10%. EPS of $2.29 for the same period compares with $1.44 a year ago.
The Hartford is expected to post earnings of $2.29 per share for the current quarter, representing a year-over-year change of -0.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
The Hartford has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
The Hartford Financial Services Group, Inc. (HIG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. The increase was due to equity market appreciation and spread compression, partially offset by net outflows and the impact of higher interest rates. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Prudential Financial's third-quarter results reflect lower expenses and higher net investment spread results, partially offset by lower agency and seed and co-investment income and a decline in income from pension as well as other employee benefit plans. This increase primarily reflects higher net investment spread results and lower expenses, partially offset by lower net fee income. Click to get this free report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report The Hartford Financial Services Group, Inc. (HIG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Total revenues of $10.1 billion decreased 52% year over year and missed the Zacks Consensus Estimate by 21.5%. Prudential Financial's third-quarter results reflect lower expenses and higher net investment spread results, partially offset by lower agency and seed and co-investment income and a decline in income from pension as well as other employee benefit plans. Quarterly Segment Update Prudential Global Investment Management’s (PGIM) adjusted operating income of $211 million in the reported quarter decreased 3.6% year over year.
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A month has gone by since the last earnings report for Prudential (PRU). Prudential Q3 Earnings Surpass, Revenues Fall Y/Y Prudential Financial, Inc.reported third-quarter 2023 adjusted operating income of $3.44 per share, which beat the Zacks Consensus Estimate by 8.9%. The figure was lower than our estimate of $11.2 billion.
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715140.0
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2023-12-01 00:00:00 UTC
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KBR (KBR) Up 2.6% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/kbr-kbr-up-2.6-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for KBR Inc. (KBR). Shares have added about 2.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is KBR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
KBR Q3 Earnings Beat Estimates, Revenues Miss
KBR reported mixed third-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
Earnings beat the consensus estimate for the eighth straight quarter. Revenues, on the other hand, surpassed the mark in three of the trailing eight quarters and missed on other five occasions.
Inside the Headline, Numbers
Adjusted earnings per share (EPS) of 75 cents surpassed the consensus estimate of 73 cents by 2.7% and increased 15.4% from a year ago. The upside was due to increases in gross profit and equity in earnings from unconsolidated affiliates. These were partially offset by increases in selling, general and administrative expenses and interest expenses.
Total revenues inched up 8.9% year over year (all organic) to $1.77 billion but missed the consensus mark of $1.78 billion by 0.5%. The growth was attributable to the increase in new contracts and on-contract growth within all Government Solutions business units, as well as a rising demand for the Sustainable Technology Solutions portfolio.
Adjusted EBITDA increased 9% year over year to $186 million in the quarter. Adjusted EBITDA margin was 11%, the same as the year-ago level. Our model expected adjusted EBITDA to grow 7.3% year over year to $183.5 million in the quarter.
Segmental & Backlog Details
Revenues in the Government Solutions or GS segment increased 4% year over year to $1,345 million. The upside was backed by new and on-contract growth across its four business units.
Adjusted EBITDA was $133 million (same as the prior-year quarter), and adjusted EBITDA margin of 10% (at par with the year-ago level). The segment benefited from the favorable international mix, excellent award fees and strong project execution.
Sustainable Technology Solutions’ (STS) revenues rose 27.6% year over year to $425 million, driven by increased sustainable services and technology. Meanwhile, the segment generated more revenues than we expected.
Adjusted EBITDA increased to $89 million from $66 million a year ago. Adjusted EBITDA margin for the segment was up 100 basis points to 21%. This was attributable to a favorable revenue mix, the achievement of certain licensing milestones, joint venture performance and increased demand.
As of Sep 29, 2023, the total backlog (including award options) was $21.8 billion compared with $19.76 billion at 2022-end. Of the total backlog, Government Solutions booked $12.28 billion. The Sustainable Technology Solutions segment accounted for $4.98 billion of the total backlog.
At the third-quarter end, the company delivered a trailing 12-month book-to-bill of 1.2x and recorded $3.5 billion in bookings and options.
Liquidity & Cash Flow
As of Sep 29, 2023, KBR’s cash and cash equivalents were $348 million, down from $389 million at 2022-end. Long-term debt was $1.52 million at September 2023-end, up from $1.38 million at 2022-end.
In the first nine months of 2023, cash provided by operating activities totaled $248 million, down from $336 million in the year-ago period. It had an adjusted free cash flow of $320 million during the same period, up from $297 million a year ago.
2023 Guidance
KBR still expects total revenues in the range of $6.9-$7.1 billion and an adjusted EBITDA between $730 and $750 million. Also, it expects an effective tax rate between 24% and 25% and adjusted EPS in the band of $2.76-$2.96. Adjusted operating cash flow is projected to be in the range of $425-$460 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -6.85% due to these changes.
VGM Scores
Currently, KBR has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, KBR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KBR, Inc. (KBR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. This was attributable to a favorable revenue mix, the achievement of certain licensing milestones, joint venture performance and increased demand. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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KBR Q3 Earnings Beat Estimates, Revenues Miss KBR reported mixed third-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. Inside the Headline, Numbers Adjusted earnings per share (EPS) of 75 cents surpassed the consensus estimate of 73 cents by 2.7% and increased 15.4% from a year ago. Of the total backlog, Government Solutions booked $12.28 billion.
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KBR Q3 Earnings Beat Estimates, Revenues Miss KBR reported mixed third-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. Adjusted EBITDA increased 9% year over year to $186 million in the quarter. Segmental & Backlog Details Revenues in the Government Solutions or GS segment increased 4% year over year to $1,345 million.
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KBR Q3 Earnings Beat Estimates, Revenues Miss KBR reported mixed third-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. Adjusted EBITDA increased 9% year over year to $186 million in the quarter. 2023 Guidance KBR still expects total revenues in the range of $6.9-$7.1 billion and an adjusted EBITDA between $730 and $750 million.
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2023-12-01 00:00:00 UTC
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Why Is Glaxo (GSK) Up 5.3% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-glaxo-gsk-up-5.3-since-last-earnings-report
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nan
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It has been about a month since the last earnings report for GSK (GSK). Shares have added about 5.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Glaxo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Beats on Q3 Earnings & Sales, Raises 2023 Guidance
GSK reported adjusted earnings of $1.26 per American depositary share (“ADS”) for third-quarter 2023, beating the Zacks Consensus Estimate of $1.09. Adjusted earnings rose 7% year over year on a reported basis and 17% at a constant exchange rate (CER) driven by higher profits, lower finance costs and a benefit from lower non-controlling interests.
Quarterly revenues rose 4% on a reported basis and 10% on a CER basis to $10.3 billion (£8.1 billion), beating the Zacks Consensus Estimate of $9.7 billion. The sales increase was driven by rising HIV and Vaccine sales, which made up for no COVID-19 solutions sales.
Excluding sales from COVID products, total sales were up 16% at CER.
Sales in the United States rose 19%. Sales in Europe rose 5% while that in International markets declined 2% at CER.
All growth rates mentioned below are on a year-on-year basis and at CER.
Quarterly Highlights
GSK reports under three segments: Specialty Medicines, Vaccines and General Medicines. Specialty Medicines, Vaccines and General Medicines are clubbed as commercial operations.
Specialty Medicines
Sales in the Specialty Medicines segment fell 1% at CER due to no sales of Xevudy in the quarter. Excluding Xevudy sales, revenues from the Specialty Medicines segment were up 17% at CER. Sales grew in HIV, Immunology/Respiratory as well as Oncology segments.
HIV sales increased 15% at CER, driven by higher market share, favorable pricing and tender phasing in international business. The higher market share was driven by strong demand for oral two-drug regimens, Dovato and Juluca, and long-acting regimens like Cabenuva and Apretude
Overall, sales of the oral two-drug regimens and long-acting regimens comprised 53% of the total HIV portfolio in the third quarter compared with 42% in the third quarter of 2022, driven by market share growth.
GSK generates the majority of its HIV sales from its dolutegravir franchise, comprising three-drug regimens — Triumeq and Tivicay — and two-drug regimens — Dovato and Juluca. The launch of the two-drug regimens has been eroding sales and market share of the three-drug regimens following their launch.
Sales from its dolutegravir franchise rose 8% in the quarter. While sales of the dolutegravir franchise were up 5% at CER in the U.S. market, they were flat in Europe. In International markets, sales were up 47% at CER.
Sales of Triumeq declined 16% at CER, while Tivicay sales rose 7%.
Juluca was up 12% while Dovato was up 32% in the third quarter.
Long-acting medicines, Cabenuva and Apretude, contributed £182 million and £37 million, respectively to revenues compared with £176 million and £36 million, respectively in the previous quarter. The growth comes mainly from patient switches from competitor products. Rukobia sales were £30 million in the quarter.
In 2023, HIV sales are expected to grow around 10%.
Oncology sales were up 26% year over year, driven by strong growth in Jemperli and Zejula sales. Blenrep sales declined 69% during the quarter following the drug’s withdrawal from the U.S. market last November.
Sales of Zejula rose 22% at CER in the quarter, driven by strong growth in the U.S. market due to the stocking of the new tablet formulation as well as positive momentum in ex-U.S. markets. Jemperli added £45 million to the top line in the third quarter compared with £25 million in second-quarter 2023. The uptick was driven by new patient starts in the United States. Jemperli was approved for frontline treatment in combination with chemotherapy for patients with dMMR/MSI-H primary advanced or recurrent endometrial cancer in the United States in the third quarter.
New blood cancer drug Ojjaara generated £4 million in product sales in the first quarter of its commercial launch. The FDA approved the drug in September for treating myelofibrosis patients with anemia.
Respiratory/Immunology and Other sales were up 18% in the third quarter. Sales of the respiratory drug, Nucala, were up 19% at CER during the quarter, driven by strong demand trends and approvals/launch of additional indications globally. Sales of the immuno-inflammation drug, Benlysta, were up 20% in the quarter, reflecting strong underlying demand in the United States and Europe and higher volumes in Japan and China.
GSK did not record any Xevudy sales during the third quarter.
Management expects sales of Specialty Medicines to increase at a low double-digit percentage compared to a high single-digit percentage at CER in 2023.
General Medicines
Sales of General Medicines were down 2% at CER during the quarter. This downside was due to the impact of Returns and Rebates (“RAR”) adjustments in the U.S. market and generic competition to older products, partially offset by solid sales growth of Trelegy Ellipta
In General Medicines, Respiratory sales declined 3% at CER, while Other General Medicines sales were flat.
Trelegy Ellipta sales surged 23% year over year, owing to strong growth in all regions. Sales of Anoro Ellipta were up 15% at CER during the third quarter. Key established drug Advair/Seretide sales were down 14% year over year. Sales on Revlar/Breo Ellipta were down 18% at CER year over year.
In General Medicines, GSK expects sales to increase at a low to mid-single-digit percentage compared to its previous expectation of a low single-digit percentage in 2023.
Vaccines
GSK’s third-quarter vaccine sales increased 33% at CER, driven by the successful launch of the RSV vaccine Arexvy in the United States and the strong uptake of the Shingrix vaccine in ex-U.S. markets. GSK also recorded sales of £1 million from its share of contracted European volumes of COVID-19 booster vaccine, co-developed in partnership with Sanofi. Sales rose 34%, excluding COVID-19 solutions.
Arexvy was commercially launched in the third quarter and generated £709 million in sales, driven by strong demand and initial channel inventory build. Almost all sales were from the United States. Per management, Arexvy achieved two-thirds of the share of retail vaccinations in the quarter.
Shingrix sales rose 15% at CER during the quarter, driven by strong private uptake and public funding expansion in ex-U.S. markets.
In the United States, Shingrix sales declined 6% due to an unfavorable wholesaler inventory destocking and lower non-retail demand than the year-ago quarter segment. Retail sales of Shingrix in the U.S. market rose 4% in the quarter. Presently, Shingrix is available across 38 countries. Sales in Europe included deliveries for the UK National Immunisation Programme, which began offering Shingrix vaccination in September.
In Meningitis vaccines, Bexsero sales were flat, while sales of Menveo rose 10%. Sales of the influenza vaccine, Fluarix, were down 4% at CER. Sales of Established vaccines were up 3% year over year.
Management expects vaccine sales to increase around 20% at CER in 2023, up from priori expectation of mid-teens percentage growth.
In 2023, GSK expects Arexvy sales between £0.9 and £1 billion, based on the analog of flu vaccination seasonality. However, it will wait and watch the annual vaccination patterns, duration of protection, competitor dynamics and demand trends following the end of the flu season to understand the outlook for Arexvy sales in 2024.
Profit Discussion
Adjusted operating profit rose 15% at CER to £2.77 billion, driven by strong sales across all segments and higher royalty income, which was partially offset by higher R&D costs and investments behind new product launches and operating profit reduction from lower COVID-19 solutions sales. Adjusted operating profit rose 22%, excluding COVID-19 solutions.
Adjusted selling, general and administration (SG&A) costs increased 17% year over year at CER to £2.19 billion. The upside in SG&A costs was due to the launch of products in the Specialty Medicines and Vaccines segments.
Research and development (R&D) expenses rose 14% year over year at CER to £1.43 billion due to continued investment by management for late-stage pipeline in Vaccines, Respiratory/Immunology and Infectious
Diseases.
Ups 2023 Guidance
GSK raised its guidance for 2023. The company now expects sales to increase 12-13% in 2023 compared with the previously issued guidance of 8-10%. The uptick can be attributed to the strong growth momentum observed across all business segments, fueled by the launch of Arexvy in the third quarter.
GSK expects adjusted operating profit growth to increase between 13% and 15% at CER (previously: 11% to 13%). The company also raised the guidance for its adjusted EPS, which is anticipated to grow in the range of 17-20%, a three-percentage point rise from the previously issued guidance of 14-17%.
COVID-related products are expected to hurt sales growth by approximately 8% and adjusted operating profit growth by 4% to 5% in 2023.
SG&A is expected to grow at a rate similar to sales, reflecting investment to support recent and anticipated launches. R&D is expected to increase at a rate lower than sales. The adjusted tax rate is expected to be around 15%-15.5%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted -14.48% due to these changes.
VGM Scores
At this time, Glaxo has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Glaxo has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Glaxo is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Blueprint Medicines (BPMC), a stock from the same industry, has gained 17.2%. The company reported its results for the quarter ended September 2023 more than a month ago.
Blueprint Medicines reported revenues of $56.57 million in the last reported quarter, representing a year-over-year change of -14.3%. EPS of -$2.20 for the same period compares with -$2.23 a year ago.
For the current quarter, Blueprint Medicines is expected to post a loss of $2.02 per share, indicating a change of +23.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Blueprint Medicines. Also, the stock has a VGM Score of F.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
Blueprint Medicines Corporation (BPMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sales of the immuno-inflammation drug, Benlysta, were up 20% in the quarter, reflecting strong underlying demand in the United States and Europe and higher volumes in Japan and China. This downside was due to the impact of Returns and Rebates (“RAR”) adjustments in the U.S. market and generic competition to older products, partially offset by solid sales growth of Trelegy Ellipta However, it will wait and watch the annual vaccination patterns, duration of protection, competitor dynamics and demand trends following the end of the flu season to understand the outlook for Arexvy sales in 2024.
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The higher market share was driven by strong demand for oral two-drug regimens, Dovato and Juluca, and long-acting regimens like Cabenuva and Apretude Vaccines GSK’s third-quarter vaccine sales increased 33% at CER, driven by the successful launch of the RSV vaccine Arexvy in the United States and the strong uptake of the Shingrix vaccine in ex-U.S. markets. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Blueprint Medicines Corporation (BPMC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The sales increase was driven by rising HIV and Vaccine sales, which made up for no COVID-19 solutions sales. Specialty Medicines Sales in the Specialty Medicines segment fell 1% at CER due to no sales of Xevudy in the quarter. Profit Discussion Adjusted operating profit rose 15% at CER to £2.77 billion, driven by strong sales across all segments and higher royalty income, which was partially offset by higher R&D costs and investments behind new product launches and operating profit reduction from lower COVID-19 solutions sales.
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It has been about a month since the last earnings report for GSK (GSK). Respiratory/Immunology and Other sales were up 18% in the third quarter. Vaccines GSK’s third-quarter vaccine sales increased 33% at CER, driven by the successful launch of the RSV vaccine Arexvy in the United States and the strong uptake of the Shingrix vaccine in ex-U.S. markets.
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2023-12-01 00:00:00 UTC
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Aflac (AFL) Up 1.2% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/aflac-afl-up-1.2-since-last-earnings-report%3A-can-it-continue
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A month has gone by since the last earnings report for Aflac (AFL). Shares have added about 1.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Aflac due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Aflac's Q3 Earnings Beat on Lower Benefits and Claims
Aflac reported third-quarter 2023 adjusted earnings per share of $1.84, which beat the Zacks Consensus Estimate by 27.8%. The bottom line increased from $1.44 per share a year ago.
Aflac’s revenues increased 5.2% year over year to $4.95 billion in the quarter under review. The top line beat the consensus mark by 10.9%.
The strong third-quarter results were supported by higher sales, reduced benefits and claims and improved profit levels from Japan and U.S. businesses. Also, higher net investment income added to the upside.
Q3 Performance
Adjusted net investment income rose 3.4% year over year to $915 million.
Total net benefits and claims of $1.9 billion declined 10.4% year over year in the third quarter and remained 4.6% below our model estimate. Total acquisition and operating expenses dropped 1.1% year over year to $1.3 billion but came above our estimate of $1.1 billion.
Pre-tax earnings jumped 35.8% year over year to $1.8 billion in the third quarter.
Inside AFL’s Segments
Aflac Japan
The segment’s adjusted revenues decreased 4.9% year over year to $2.7 billion in the quarter under review but beat our estimate of $2.4 billion. Total net earned premiums of $2 billion dropped 7.2% year over year due to limited pay products attaining paid-up status and the implementation of a reinsurance transaction earlier. The figure beat our estimate of $1.8 billion.
Adjusted net investment income increased 2.4% year over year to $679 million due to higher variable investment income and floating rate income and comfortably beat our estimate. Pretax adjusted earnings of the segment amounted to $869 million, which increased 6.4% year over year in the third quarter and beat our estimate.
New annualized premium sales of $108 million improved 12.4% year over year. The benefit ratio of the segment was 65.1% in the third quarter.
Aflac U.S.
The segment’s adjusted revenues increased 3.9% year over year to $1.7 billion in the quarter under review and beat our estimate of $1.6 billion. Total net earned premiums climbed 3.2% year over year to $1.4 billion and beat our estimate by 1.7% due to its growth initiatives.
Adjusted net investment income of $209 million climbed 13% year over year and beat our estimate of $201 million on the back of increased floating rate income, variable investment income and a move toward higher-yielding fixed-income investments. Pretax adjusted earnings of the segment were $478 million, up 38.6% year over year in the third quarter and beat our estimate by 34.9%, thanks to reduced benefits recognized.
Aflac U.S. sales of $359 million grew 7.5% year over year. The third-quarter benefit ratio came in at 35.9%.
Financial Position (as of Sep 30, 2023)
Aflac exited the third quarter with total cash and cash equivalents of $5.5 billion, which increased from $3.9 billion at 2022-end. Total investments and cash of $111.3 billion decreased from $117.4 billion at 2022-end. Total assets fell to $125.1 billion from $131.7 billion at 2022-end.
Adjusted debt decreased to $6.7 billion at the third quarter-end from $7.1 billion at 2022-end.
Total shareholders' equity of $22.7 million increased from $20.1 million at 2022-end.
Adjusted debt to adjusted capitalization, excluding accumulated other comprehensive income, came in at 18.8%, which improved 210 basis points (bps) from 2022-end.
While it has no debt maturities in less than a year, total debt maturities worth $1.3 billion are expected within the next five years.
Adjusted book value per share increased 10.1% year over year to $48.44.
Adjusted return on equity, excluding foreign currency impact of 16.1%, improved 260 bps year over year.
Capital Deployment
Aflac bought back 9.4 million shares worth $700 million in the third quarter. It had 86.4 million shares left for buyback as of the third-quarter end.
Management announced dividends of 42 cents per share for the fourth quarter of 2023, sequentially flat. The dividend will be paid out on Dec 1, 2023, to shareholders of record as of Nov 15. It plans to increase the dividend by 19% in the first quarter of 2023.
Outlook
Aflac estimates improved sales in its Japan business for 2023, buoyed by product launches, product updates, distribution strategies and Japan Post performance. Its new medical product, which was introduced in mid-September, is showing a good start.
Management also remains optimistic about strong sales results within its U.S. business. Improving productivity, contributions from platforms like network, dental and vision and group life, and disability are expected to continue supporting the results.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Aflac has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Aflac has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Aflac is part of the Zacks Insurance - Accident and Health industry. Over the past month, Unum (UNM), a stock from the same industry, has gained 0.7%. The company reported its results for the quarter ended September 2023 more than a month ago.
Unum reported revenues of $3.12 billion in the last reported quarter, representing a year-over-year change of +5.3%. EPS of $1.94 for the same period compares with $1.51 a year ago.
For the current quarter, Unum is expected to post earnings of $1.88 per share, indicating a change of +31.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Unum. Also, the stock has a VGM Score of C.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Aflac Incorporated (AFL) : Free Stock Analysis Report
Unum Group (UNM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. The strong third-quarter results were supported by higher sales, reduced benefits and claims and improved profit levels from Japan and U.S. businesses. Improving productivity, contributions from platforms like network, dental and vision and group life, and disability are expected to continue supporting the results.
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Adjusted net investment income increased 2.4% year over year to $679 million due to higher variable investment income and floating rate income and comfortably beat our estimate. Adjusted net investment income of $209 million climbed 13% year over year and beat our estimate of $201 million on the back of increased floating rate income, variable investment income and a move toward higher-yielding fixed-income investments. Click to get this free report Aflac Incorporated (AFL) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Inside AFL’s Segments Aflac Japan The segment’s adjusted revenues decreased 4.9% year over year to $2.7 billion in the quarter under review but beat our estimate of $2.4 billion. The segment’s adjusted revenues increased 3.9% year over year to $1.7 billion in the quarter under review and beat our estimate of $1.6 billion. Adjusted net investment income of $209 million climbed 13% year over year and beat our estimate of $201 million on the back of increased floating rate income, variable investment income and a move toward higher-yielding fixed-income investments.
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Aflac's Q3 Earnings Beat on Lower Benefits and Claims Aflac reported third-quarter 2023 adjusted earnings per share of $1.84, which beat the Zacks Consensus Estimate by 27.8%. The segment’s adjusted revenues increased 3.9% year over year to $1.7 billion in the quarter under review and beat our estimate of $1.6 billion. The company reported its results for the quarter ended September 2023 more than a month ago.
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2023-12-01 00:00:00 UTC
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Tyler Technologies (TYL) Up 0.8% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/tyler-technologies-tyl-up-0.8-since-last-earnings-report%3A-can-it-continue
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It has been about a month since the last earnings report for Tyler Technologies (TYL). Shares have added about 0.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tyler Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Tyler Technologies Q3 Earnings Beat, Revenues Miss
Tyler Technologies reported third-quarter 2023 non-GAAP earnings of $2.14 per share, which beat the Zacks Consensus Estimate of $1.97. The bottom line was higher than the year-ago quarter’s earnings of $2.06 per share.
Non-GAAP revenues increased 4.54% year over year to $494.7 million. However, the top line missed the Zacks Consensus Estimate of $495.5 million.
The robust year-over-year top-line growth was primarily driven by a rise in subscription revenues. During the third quarter, software subscription arrangements comprised approximately 80% of the total new software contract value as the company continued to transform into a software-as-a-service model from its on-premise license-based model.
Quarterly Details
Tyler’s recurring revenues from maintenance and subscriptions increased 11% year over year to $412.7 million and accounted for 83.4% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.65 billion, up 11% year over year.
Segment-wise, Maintenance revenues (accounting for 23.7% of total revenues) were $117.5 million, slightly up from $117.3 million in the year-ago quarter. Our model estimates for Maintenance revenues were pegged at $115.4 million.
Subscription revenues (59.6% of total revenues) grew 16.1% year over year to $295.2 million, while our model estimates for the same was $291.9 million. On an organic basis, Subscription revenues soared 14.7% year over year.
Software licenses and royalties (2.1% of total revenues) of $10.5 million decreased 47.9% on a year-over-year basis. Our model predicted Software licenses and royalties sales to decline 40.1% to $12.1 million.
Professional Services revenues (12.3% of total revenues) amounted to $61.1 million, down 17.5% from the year-ago quarter. Our model estimates for the same were pegged at $65.2 million.
Hardware and other revenues (2.1% of total revenues) climbed 9.7% from the year-ago quarter to $10.3 million. Our model estimates for Hardware and other revenues were pegged at $9.7 million.
The backlog at the quarter-end was $1.95 billion, up 2.5% year over year.
Bookings increased 8.6% year over year at $542 million. Moreover, in the trailing 12 months, bookings increased 2.8% year over year to $1.99 billion.
Operating Details
Tyler’s non-GAAP gross profit increased 6.9% year over year to $241 million. Non-GAAP gross margin expanded 110 basis points (bps) to 48.7%.
Adjusted EBITDA increased 4.4% year over year to $132.5 million.
Non-GAAP operating income for the quarter totaled $122.5 million and went up 3.9% year over year. However, the non-GAAP operating margin contracted 10 bps to 24.8%.
Balance Sheet & Other Details
As of Sep 30, 2023, Tyler’s cash and cash equivalents were $131.4 million compared with $118.7 million as of Jun 30, 2023.
The company generated an operating cash flow of $177.5 million in the third quarter and $233 million in the first nine months of 2023. During the third quarter, it generated a free cash flow of $162.7 million. With its robust free cash flow, TYL is focusing on reducing debt. In the third quarter of 2023, Tyler reduced its term debt by $135 million.
Guidance
For 2023, Tyler expects GAAP and non-GAAP revenues in the range of $1.942-$1.962 billion. TYL forecasts adjusted earnings guidance in the range of $7.66-$7.80 per share.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -8.4% due to these changes.
VGM Scores
At this time, Tyler Technologies has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tyler Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Tyler Technologies belongs to the Zacks Business - Software Services industry. Another stock from the same industry, MSCI (MSCI), has gained 7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
MSCI reported revenues of $625.44 million in the last reported quarter, representing a year-over-year change of +11.6%. EPS of $3.45 for the same period compares with $2.85 a year ago.
MSCI is expected to post earnings of $3.29 per share for the current quarter, representing a year-over-year change of +15.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.8%.
MSCI has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report
MSCI Inc (MSCI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent positive trend continue leading up to its next earnings release, or is Tyler Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Tyler Technologies Q3 Earnings Beat, Revenues Miss Tyler Technologies reported third-quarter 2023 non-GAAP earnings of $2.14 per share, which beat the Zacks Consensus Estimate of $1.97. Quarterly Details Tyler’s recurring revenues from maintenance and subscriptions increased 11% year over year to $412.7 million and accounted for 83.4% of the total quarterly revenues. Click to get this free report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report MSCI Inc (MSCI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Tyler Technologies Q3 Earnings Beat, Revenues Miss Tyler Technologies reported third-quarter 2023 non-GAAP earnings of $2.14 per share, which beat the Zacks Consensus Estimate of $1.97. Quarterly Details Tyler’s recurring revenues from maintenance and subscriptions increased 11% year over year to $412.7 million and accounted for 83.4% of the total quarterly revenues. Subscription revenues (59.6% of total revenues) grew 16.1% year over year to $295.2 million, while our model estimates for the same was $291.9 million.
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It has been about a month since the last earnings report for Tyler Technologies (TYL). Non-GAAP revenues increased 4.54% year over year to $494.7 million. Quarterly Details Tyler’s recurring revenues from maintenance and subscriptions increased 11% year over year to $412.7 million and accounted for 83.4% of the total quarterly revenues.
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2023-12-01 00:00:00 UTC
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Why Is Allstate (ALL) Up 5% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-allstate-all-up-5-since-last-earnings-report
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nan
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A month has gone by since the last earnings report for Allstate (ALL). Shares have added about 5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Allstate due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Allstate Q3 Earnings Beat on Expanding Auto Premiums
The Allstate Corporation reported a third-quarter 2023 adjusted net income of 81 cents per share, which outpaced the Zacks Consensus Estimate by a whopping 107.7%. A loss of $1.53 per share was reported in the prior-year quarter.
Operating revenues improved 9% year over year to $14,583 million in the quarter under review, attributable to a 10% rise in property and casualty (P&C) insurance premiums. The top line missed the consensus mark by a whisker.
The quarterly results benefited on the back of continued rate hikes, strong underwriting results and sound contribution from the Protection Services unit. However, the upside was partly offset by continued incidence of auto insurance loss costs, significant increase in catastrophe losses and an elevated expense level.
Q3 Operations
Net investment income of $689 million dipped 1% year over year in third quarter and beat the Zacks Consensus Estimate of $640 million as well as our estimate of $678.3 million. The metric suffered a blow due to a 44.5% year-over-year decline in performance-based investment income. Market-based investment income climbed 41% year over year.
Total costs and expenses increased 2.8% year over year to $14,518 million but came lower than our estimate of $14,731.6 million. The year-over-year increase was due to an elevated P&C insurance claims and claim expense level.
Allstate incurred a pretax loss of $21 million in the quarter under review, way narrower than the prior-year quarter’s loss of $910 million.
Total policies in force were 190.1 million as of Sep 30, 2023, which increased 2.7% year over year.
Catastrophe losses of $1,181 million soared 54.8% year over year in the third quarter but came lower than our estimate of $1,421.4 million.
Segmental Performances
The Property-Liability segment’s premiums earned improved 10% year over year to $12,270 million in the third quarter, which lagged the Zacks Consensus Estimate of $12,282 million but surpassed our estimate of $12,266.7 million. The metric was aided by rate increases resulting in improved average premiums. While the Allstate brand gained from growth in auto and homeowners average premium, an increase in the number of policies contributed to the results of National General.
The unit incurred an underwriting loss of $414 million in the quarter under review, narrower than the prior-year quarter’s loss of $1,292 million and our estimate of $843.2 million. The loss narrowed on the back of higher premiums earned and a decline in unfavorable prior-year reserve reestimates. The combined ratio improved 820 basis points (bps) year over year to 103.4% in the quarter under review but came lower than the consensus mark of 104%.
The Protection Services segment recorded revenues of $697 million, which rose 8.9% year over year in the third quarter, attributable to strength in Allstate Protection Plans. However, the metric lagged our estimate of $780.4 million. Adjusted net income dropped 22.9% year over year to $27 million due to increased severity of claims at Allstate Protection Plans. The figure also missed the consensus mark of $58 million.
The Allstate Health and Benefits segment’s premium and contract charges remained flat year over year at $463 million in the third quarter, higher than the Zacks Consensus Estimate of $449 million. Favorable group health results were partly offset by weakness in individual health. Adjusted net income of $69 million rose 9.5% year over year, which outpaced the consensus mark of $57 million and our estimate of $47.4 million. The metric benefited on the back of strength in group and individual health coupled with reduced operating expenses.
Financial Update (as of Sep 30, 2023)
Allstate exited the third quarter with a cash balance of $860 million, which grew 16.8% from the 2022-end level. Total assets of $101.2 billion increased 3.3% from the figure at 2022 end.
Debt amounted to $7,946 million, down 0.2% from the figure as of Dec 31, 2022.
Total shareholders’ equity of $14,593 million fell 16.6% from the 2022-end figure.
Book value per common share was $47.79 as of Sep 30, 2023, which tumbled 18.2% from the prior-year comparable period.
The adjusted net income return on ALL’s common shareholders’ equity in the trailing 12-month period was a negative figure of 9.7%. The metric was recorded at 4.4% in the prior-year comparable period.
Business Update
Allstate is eyeing the divestiture of the Health and Benefits businesses and the sale is likely to be completed next year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Allstate has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Allstate has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Allstate is part of the Zacks Insurance - Property and Casualty industry. Over the past month, Kinsale Capital Group, Inc. (KNSL), a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended September 2023 more than a month ago.
Kinsale Capital Group, Inc. reported revenues of $314.37 million in the last reported quarter, representing a year-over-year change of +44.9%. EPS of $3.31 for the same period compares with $1.64 a year ago.
For the current quarter, Kinsale Capital Group, Inc. is expected to post earnings of $3.44 per share, indicating a change of +32.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
Kinsale Capital Group, Inc. has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Allstate Corporation (ALL) : Free Stock Analysis Report
Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. While the Allstate brand gained from growth in auto and homeowners average premium, an increase in the number of policies contributed to the results of National General. Kinsale Capital Group, Inc. has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions.
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Allstate Q3 Earnings Beat on Expanding Auto Premiums The Allstate Corporation reported a third-quarter 2023 adjusted net income of 81 cents per share, which outpaced the Zacks Consensus Estimate by a whopping 107.7%. Segmental Performances The Property-Liability segment’s premiums earned improved 10% year over year to $12,270 million in the third quarter, which lagged the Zacks Consensus Estimate of $12,282 million but surpassed our estimate of $12,266.7 million. Click to get this free report The Allstate Corporation (ALL) : Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Q3 Operations Net investment income of $689 million dipped 1% year over year in third quarter and beat the Zacks Consensus Estimate of $640 million as well as our estimate of $678.3 million. Segmental Performances The Property-Liability segment’s premiums earned improved 10% year over year to $12,270 million in the third quarter, which lagged the Zacks Consensus Estimate of $12,282 million but surpassed our estimate of $12,266.7 million. The Allstate Health and Benefits segment’s premium and contract charges remained flat year over year at $463 million in the third quarter, higher than the Zacks Consensus Estimate of $449 million.
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A loss of $1.53 per share was reported in the prior-year quarter. Segmental Performances The Property-Liability segment’s premiums earned improved 10% year over year to $12,270 million in the third quarter, which lagged the Zacks Consensus Estimate of $12,282 million but surpassed our estimate of $12,266.7 million. The Allstate Health and Benefits segment’s premium and contract charges remained flat year over year at $463 million in the third quarter, higher than the Zacks Consensus Estimate of $449 million.
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a86cb10d-be3a-4e26-b5e7-b480139d14d1
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715145.0
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2023-12-01 00:00:00 UTC
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SunPower (SPWR) Down 7.2% Since Last Earnings Report: Can It Rebound?
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DCOMP
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https://www.nasdaq.com/articles/sunpower-spwr-down-7.2-since-last-earnings-report%3A-can-it-rebound
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It has been about a month since the last earnings report for SunPower (SPWR). Shares have lost about 7.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is SunPower due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
SunPower Q3 Earnings Miss Estimates, Sales Down Y/Y
SunPower Corporation reported a third-quarter 2023 adjusted loss of 12 cents per share against earnings of 8 cents in the prior-year period. The loss also came in wider than the Zacks Consensus Estimate of a loss of a penny per share.
Including one-time adjustments, the company reported a GAAP loss of 17 cents per share against the prior-year quarter’s earnings of 73 cents.
Revenues
During the quarter under review, SunPower’s adjusted revenues totaled $432.2 million, while GAAP revenues amounted to $432 million. The top-line estimate was pegged at $430 million. The adjusted top line deteriorated 9.3% from the year-ago quarter’s figure of $476.3 million.
Operating Results
Total operating expenses in the quarter dropped 1.1% year over year to $94.5 million. Lower SG&A and research and development expenses led to the downside.
The company’s gross profit declined 37.2% to $66.4 million rom $105.7 million in the third quarter of 2022.
Its interest expense surged a solid 77% to $6.60 million.
Financial Position
SunPower had cash and cash equivalents of $103.7 million as of Oct 1, 2023, compared with $377 million as of Jan 1, 2023.
The long-term debt totaled $302.6 million as of Oct 1, 2023, compared with $308 million as of Jan 1, 2023.
The company’s cash outflow from operating activities totaled $107.2 million during the first nine months of 2023 compared with $170 million in the year-ago period.
2023 Outlook
SunPower updated its 2023 guidance. For 2023, SPWR now expects negative adjusted EBITDA in the band of $25-$35 million against the previously guided range of $55-$75 million for adjusted EBITDA.
Meanwhile, residential customers are projected in the band of 70,000-80,000, down from the previously estimated range of 70,000-90,000.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -12100% due to these changes.
VGM Scores
At this time, SunPower has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise SunPower has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
SunPower is part of the Zacks Solar industry. Over the past month, Enphase Energy (ENPH), a stock from the same industry, has gained 28%. The company reported its results for the quarter ended September 2023 more than a month ago.
Enphase Energy reported revenues of $551.08 million in the last reported quarter, representing a year-over-year change of -13.2%. EPS of $1.02 for the same period compares with $1.25 a year ago.
Enphase Energy is expected to post earnings of $0.55 per share for the current quarter, representing a year-over-year change of -63.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -16.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Enphase Energy. Also, the stock has a VGM Score of C.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SunPower Corporation (SPWR) : Free Stock Analysis Report
Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Enphase Energy is expected to post earnings of $0.55 per share for the current quarter, representing a year-over-year change of -63.6%. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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SunPower Q3 Earnings Miss Estimates, Sales Down Y/Y SunPower Corporation reported a third-quarter 2023 adjusted loss of 12 cents per share against earnings of 8 cents in the prior-year period. For 2023, SPWR now expects negative adjusted EBITDA in the band of $25-$35 million against the previously guided range of $55-$75 million for adjusted EBITDA. Click to get this free report SunPower Corporation (SPWR) : Free Stock Analysis Report Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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SunPower Q3 Earnings Miss Estimates, Sales Down Y/Y SunPower Corporation reported a third-quarter 2023 adjusted loss of 12 cents per share against earnings of 8 cents in the prior-year period. Revenues During the quarter under review, SunPower’s adjusted revenues totaled $432.2 million, while GAAP revenues amounted to $432 million. Click to get this free report SunPower Corporation (SPWR) : Free Stock Analysis Report Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company’s cash outflow from operating activities totaled $107.2 million during the first nine months of 2023 compared with $170 million in the year-ago period. Over the past month, Enphase Energy (ENPH), a stock from the same industry, has gained 28%. Over the last 30 days, the Zacks Consensus Estimate has changed -16.2%.
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ae6180bd-060c-48c6-abac-675b8c662248
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715146.0
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2023-12-01 00:00:00 UTC
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American Financial (AFG) Up 5.1% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/american-financial-afg-up-5.1-since-last-earnings-report%3A-can-it-continue
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A month has gone by since the last earnings report for American Financial Group (AFG). Shares have added about 5.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
American Financial Q3 Earnings Miss, Revenues Beat
American Financial Group, Inc. reported third-quarter 2023 net operating earnings per share of $2.45, which missed the Zacks Consensus Estimate by 0.8%. The bottom line increased 9.4% year over year. American Financial’s results reflected higher premiums, increased average renewal pricing across the Property and Casualty (P&C) group and improved net investment income, offset by higher expenses and catastrophe losses.
Behind the Headlines
Total revenues of $2 billion increased 6% year over year in the quarter. The growth came on the back of higher P&C insurance net earned premiums, other income and net investment income. The top line beat the Zacks Consensus Estimate by 5.9%. Net investment income climbed 11.2% year over year to $168 million in the quarter under review. The figure was lower than our estimate of $204.6 million and missed the Zacks Consensus Estimate of $189 million.
Total cost and expenses increased 9.6% year over year to $1.9 billion due to higher P&C insurance losses and expenses, cost of managed investment entities and other expenses. The figure was higher than our estimate of $1.7 billion.
Segmental Update
The Specialty P&C Insurance segment generated $2 billion in net written premiums, which rose 4% year over year. The growth reflects a larger percentage of crop insurance premium written in the second quarter of 2023 due to the earlier planting of corn and soybeans, as well as the impact of lower 2023 spring commodity futures pricing and related volatility. Average renewal pricing across P&C Group, excluding workers’ compensation, increased approximately 7% in the quarter.
Net written premiums in Property & Transportation Group decreased 6% year over year to $905 million in the quarter. The figure was lower than our estimate of $922.1 million. Net written premiums at Specialty Casualty Group increased 7% year over year to $829 million. The figure was higher than our estimate of $781.7 million. Further, net written premiums at Specialty Financial increased 48% year over year to $261 million. The figure was higher than our estimate of $224.3 million.
Net written premiums at other divisions decreased 8% year over year to $66 million. The figure was lower than our estimate of $80.6 million. The Specialty P&C Insurance segment’s underwriting profit decreased 9.5% year over year to $143 million in the quarter. A higher frequency of lower severity convective storms throughout the 2023 period resulted in catastrophe losses of $56 million, which included the impact of Hurricane Ian. Higher year-over-year underwriting profit in the Property and Transportation and Specialty Financial Groups was more than offset by lower underwriting profit in the Specialty Casualty Group. The figure was higher than our estimate of $123.9 million. The combined ratio deteriorated 110 basis points (bps) year over year to 92.2% at the segment.
Financial Update
American Financial exited the third quarter with total cash and investments of $14.8 billion, which increased 1.9% from the 2022-end level. The figure is lower than our estimate of $15.4 billion. As of Sep 30, 2023, long-term debt totaled $1.5 billion, which decreased 1.5% from the level at 2022 end.
As of Sep 30, 2023, the company’s adjusted book value per share, which excludes unrealized gains (losses) related to fixed maturities, was $53.90, up 0.3% from the 2022-end level. Annualized return on equity came in at 15.7% for the third quarter, expanding 100 bps year over year.
Prudent Capital Deployment
American Financial declared a special cash dividend of $1.50 per share in the third quarter. The dividend will be paid out on Nov 22 to shareholders of record at the close of business as of Nov 13, 2023. The aggregate amount of this special dividend will be approximately $126 million. During the third quarter of 2023, AFG repurchased shares for $86 million.
2023 Guidance Revised
American Financial continues to expect core net operating earnings in the range of $10.15 to $11.15 per share. The guidance reflects updated expectations of a below average crop year, offset by higher-than-previously expected net investment income. At the midpoint of the range, revised guidance would produce a core return on equity of approximately 20%. The insurer expects an overall 2023 calendar year combined ratio in the range of 90% to 92%.
AFG has increased guidance for net written premiums and expects net written premiums to be 6% to 8% higher than the $6.2 billion reported in 2022. This compares to previous guidance of growth in the range of 5% to 8% and will establish a record for net written premiums for 2023. American Financial continues to expect a return of approximately 9% on alternative investments.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, American Financial has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, American Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
American Financial is part of the Zacks Insurance - Property and Casualty industry. Over the past month, First American Financial (FAF), a stock from the same industry, has gained 10.6%. The company reported its results for the quarter ended September 2023 more than a month ago.
First American Financial reported revenues of $1.48 billion in the last reported quarter, representing a year-over-year change of -18.8%. EPS of $1.22 for the same period compares with $1.62 a year ago.
First American Financial is expected to post earnings of $1.19 per share for the current quarter, representing a year-over-year change of -11.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -7.4%.
First American Financial has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Financial Group, Inc. (AFG) : Free Stock Analysis Report
First American Financial Corporation (FAF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Financial Group, Inc. reported third-quarter 2023 net operating earnings per share of $2.45, which missed the Zacks Consensus Estimate by 0.8%. The growth reflects a larger percentage of crop insurance premium written in the second quarter of 2023 due to the earlier planting of corn and soybeans, as well as the impact of lower 2023 spring commodity futures pricing and related volatility. A higher frequency of lower severity convective storms throughout the 2023 period resulted in catastrophe losses of $56 million, which included the impact of Hurricane Ian.
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American Financial’s results reflected higher premiums, increased average renewal pricing across the Property and Casualty (P&C) group and improved net investment income, offset by higher expenses and catastrophe losses. Higher year-over-year underwriting profit in the Property and Transportation and Specialty Financial Groups was more than offset by lower underwriting profit in the Specialty Casualty Group. Click to get this free report American Financial Group, Inc. (AFG) : Free Stock Analysis Report First American Financial Corporation (FAF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Net written premiums in Property & Transportation Group decreased 6% year over year to $905 million in the quarter. Further, net written premiums at Specialty Financial increased 48% year over year to $261 million. Click to get this free report American Financial Group, Inc. (AFG) : Free Stock Analysis Report First American Financial Corporation (FAF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for American Financial Group (AFG). Further, net written premiums at Specialty Financial increased 48% year over year to $261 million. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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09b69af6-abc9-4c6d-a98d-d06c7052c41e
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715147.0
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2023-12-01 00:00:00 UTC
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Why Is Seattle Genetics (SGEN) Down 0.7% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-seattle-genetics-sgen-down-0.7-since-last-earnings-report
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nan
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It has been about a month since the last earnings report for Seattle Genetics (SGEN). Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Seattle Genetics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Seagen’s Q3 Earnings Miss, Revenues Beat Expectations
Seagen Inc. reported a loss of $1.15 per share in the third quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 71 cents. The company had incurred a loss of $1.03 per share in the year-ago quarter.
Total revenues in the reported quarter were $649 million, increasing 27.3% year over year. The top line beat the Zacks Consensus Estimate of $640 million. Net product revenues in the third quarter were $571 million, up 33.4% year over year, driven by the strong uptake of Seagen’s portfolio of marketed cancer drugs.
Quarter in Detail
Seagen’s top line mainly comprises product, collaboration and license agreement revenues and royalties. The company currently markets four drugs, Adcetris, Padcev, Tukysa and the newly approved Tivdak.
Adcetris generated net sales of $246 million in the United States and Canada, up 13% year over year. The drug, which is the major contributor to SGEN’s revenues, is being evaluated in several label expansion studies. The reported figure missed the Zacks Consensus Estimate of $268 million.
Padcev sales in the reported quarter totaled $200 million. Sales of the drug rose 89% on a year-over-year basis. Padcev sales also beat the Zacks Consensus Estimate of $181 million.
Tukysa’s third-quarter net sales were $102 million, up 16% on a year-over-year basis.
The newly launched Tivdak generated sales worth $23 million in the third quarter of 2023, reflecting a year-over-year increase of 40%. Seagen commercializes Tivdak in collaboration with Zai Lab Limited.
In September 2022, Seagen entered into an exclusive collaboration and license agreement with Zai Lab for the development and commercialization of Tivdak in mainland China, Hong Kong, Macau and Taiwan. ZLAB obtained exclusive rights to develop and commercialize Tivdak in the given territory.
Collaboration and license agreement revenues were $14 million in the reported quarter, marking a significant decrease (63%) over the year-ago quarter. This was primarily due to an upfront payment received in the year-ago quarter.
Royalty revenues of $64 million rose by 45% from the year-ago quarter’s $44 million. Seagen records royalty revenues on the sales of Adcetris from Takeda Pharmaceutical in the ex-U.S. markets as well as from Polivy’s sales under its collaboration with Roche. The uptick in royalty revenues was primarily fueled by royalties from sales of Polivyby Roche as well as by sales of Adcetris by Takeda.
Polivy is an antibody-drug conjugate that uses Seagen’s technology and commercialized by Roche.
Research and development expenses of $449 million increased 16.6% year over year, primarily driven by continued investment in the development of approved drugs and pipeline programs.
Selling, general and administrative expenses increased 26.7% year over year to $266 million, mainly on account of higher costs related to the recent commercialization activities as well as costs incurred on other corporate activities associated with the pending acquisition by pharma goliath, Pfizer.
Seagen entered into a definitive agreement in March 2023 to be acquired by Pfizer for $229 per share, bringing the valuation of the company to a whopping $43 billion. The acquisition, if followed through, will add Seagen’s portfolio of antibody-drug conjugates (ADCs) and technology to Pfizer’s already robust portfolio of oncology drugs. The company will gain access to Pfizer’s resources to continue the development of its ADC technology. Pfizer should be able to bring new innovative cancer treatment options to patients by combining Seagen’s prowess in ADCs with Pfizer’s existing portfolio across both solid tumors and hematologic malignancies, bolstering its position in the market and driving growth.
Cash, cash equivalents and investments amounted to $1.2 billion for Seagen at the end of the third quarter of 2023 compared with $1.3 billion as of Jun 30, 2023.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -48.32% due to these changes.
VGM Scores
Currently, Seattle Genetics has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Seattle Genetics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Seattle Genetics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Qiagen (QGEN), has gained 7.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Qiagen reported revenues of $475.89 million in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $0.50 for the same period compares with $0.53 a year ago.
For the current quarter, Qiagen is expected to post earnings of $0.54 per share, indicating a change of +1.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.4% over the last 30 days.
Qiagen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Seagen Inc. (SGEN) : Free Stock Analysis Report
QIAGEN N.V. (QGEN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. In September 2022, Seagen entered into an exclusive collaboration and license agreement with Zai Lab for the development and commercialization of Tivdak in mainland China, Hong Kong, Macau and Taiwan. Seagen entered into a definitive agreement in March 2023 to be acquired by Pfizer for $229 per share, bringing the valuation of the company to a whopping $43 billion.
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In September 2022, Seagen entered into an exclusive collaboration and license agreement with Zai Lab for the development and commercialization of Tivdak in mainland China, Hong Kong, Macau and Taiwan. Research and development expenses of $449 million increased 16.6% year over year, primarily driven by continued investment in the development of approved drugs and pipeline programs. Click to get this free report Seagen Inc. (SGEN) : Free Stock Analysis Report QIAGEN N.V. (QGEN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Seagen’s Q3 Earnings Miss, Revenues Beat Expectations Seagen Inc. reported a loss of $1.15 per share in the third quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 71 cents. Net product revenues in the third quarter were $571 million, up 33.4% year over year, driven by the strong uptake of Seagen’s portfolio of marketed cancer drugs. Click to get this free report Seagen Inc. (SGEN) : Free Stock Analysis Report QIAGEN N.V. (QGEN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has been about a month since the last earnings report for Seattle Genetics (SGEN). Total revenues in the reported quarter were $649 million, increasing 27.3% year over year. Padcev sales also beat the Zacks Consensus Estimate of $181 million.
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edd0bea9-00c4-4a16-8fc3-11e6c6ae7412
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715148.0
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2023-12-01 00:00:00 UTC
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Why Is Tandem Diabetes Care, Inc. (TNDM) Up 33.2% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-tandem-diabetes-care-inc.-tndm-up-33.2-since-last-earnings-report
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nan
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A month has gone by since the last earnings report for Tandem Diabetes Care, Inc. (TNDM). Shares have added about 33.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tandem Diabetes Care, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Tandem Diabetes Reports Wider Q3 Loss, Lowers '23 Sales View
Tandem Diabetes Care, Inc. reported an adjusted loss of 38 cents per share for the third quarter of 2023, wider than the adjusted loss of 27 cents per share in the year-ago period. The figure also missed the Zacks Consensus Estimate of a loss of 35 cents.
On a GAAP basis, the loss was 51 cents per share in the third quarter compared with the year-ago period’s loss of 76 cents.
Revenues
GAAP revenues in the quarter came in at $185.6 million, down 9.3% year over year and missed the Zacks Consensus Estimate by 4%.
In September 2022, the company began offering the Tandem Choice Program to eligible t:slim X2 customers to provide a pathway to the ownership of its newest hardware platform, Tandem Mobi, when available. Based on that, Tandem Diabetes is now reporting adjusted revenues as well.
Non-GAAP revenues were $193.9 million in the reported quarter on 24,831 pump shipments worldwide.
Quarter in Detail
Tandem Diabetes reports under two primary markets based on the geographic location to which its products are shipped.
The United States
Total sales in this region came in at $130.2 million in the third quarter on a GAAP basis, down 10.8% year over year. Non-GAAP sales in the United States were $138.5 million. The company shipped 16.842 pumps in the third quarter, down 17.4% from the year-ago period.
Outside the United States
In the third quarter, the company registered GAAP sales of $55.4 million (same on a non-GAAP basis), a 5.3% decline from the year-ago period.
Margin Details
The gross profit in the third quarter was $89.8 million, a 14.1% decline year over year. The gross margin was 48.4%, reflecting a contraction of 270 basis points (bps).
SG&A expenses fell 5.7% to $79.3 million in the quarter under review. R&D expenses increased 14.1% to $42 million.
The company registered an adjusted operating loss of $31.6 million in the third quarter compared with the year-ago operating loss of $16.5 million.
Financial Position
Tandem Diabetes exited the third quarter of 2023 with cash and cash equivalents and short-term investments of $498.2 million compared with $507.2 million at the end of the second quarter.
2023 Guidance
Tandem Diabetes provided updated sales guidance for 2023.
For the full year, non-GAAP sales are estimated to be at least $765 million (earlier $785 million). The Zacks Consensus Estimate for full-year 2023 revenues is pegged at $787.5 million.
Full-year non-GAAP sales inside the United States are expected to be at least $575 million (unchanged) and non-GAAP sales outside the United States to be at least $190 million (down from the previous outlook of at least $210 million).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -27.89% due to these changes.
VGM Scores
Currently, Tandem Diabetes Care, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tandem Diabetes Care, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Tandem Diabetes Care, Inc. belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Integer (ITGR), has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Integer reported revenues of $404.69 million in the last reported quarter, representing a year-over-year change of +18.1%. EPS of $1.27 for the same period compares with $0.95 a year ago.
Integer is expected to post earnings of $1.33 per share for the current quarter, representing a year-over-year change of +19.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
Integer has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent positive trend continue leading up to its next earnings release, or is Tandem Diabetes Care, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Outside the United States In the third quarter, the company registered GAAP sales of $55.4 million (same on a non-GAAP basis), a 5.3% decline from the year-ago period.
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Tandem Diabetes Reports Wider Q3 Loss, Lowers '23 Sales View Tandem Diabetes Care, Inc. reported an adjusted loss of 38 cents per share for the third quarter of 2023, wider than the adjusted loss of 27 cents per share in the year-ago period. The company registered an adjusted operating loss of $31.6 million in the third quarter compared with the year-ago operating loss of $16.5 million. Click to get this free report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Tandem Diabetes Reports Wider Q3 Loss, Lowers '23 Sales View Tandem Diabetes Care, Inc. reported an adjusted loss of 38 cents per share for the third quarter of 2023, wider than the adjusted loss of 27 cents per share in the year-ago period. Revenues GAAP revenues in the quarter came in at $185.6 million, down 9.3% year over year and missed the Zacks Consensus Estimate by 4%. Click to get this free report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Tandem Diabetes Care, Inc. (TNDM). Revenues GAAP revenues in the quarter came in at $185.6 million, down 9.3% year over year and missed the Zacks Consensus Estimate by 4%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
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1429a29c-0127-4f8c-a6dd-3c565d7bf6d1
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715149.0
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2023-12-01 00:00:00 UTC
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Marathon Oil (MRO) Down 9.2% Since Last Earnings Report: Can It Rebound?
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DCOMP
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https://www.nasdaq.com/articles/marathon-oil-mro-down-9.2-since-last-earnings-report%3A-can-it-rebound
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A month has gone by since the last earnings report for Marathon Oil (MRO). Shares have lost about 9.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Marathon Oil due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Marathon Oil Reports Better-Than-Expected Q3 Earnings
Marathon Oil Corporation reported third-quarter 2023 adjusted net income per share of 77 cents, beating the Zacks Consensus Estimate of 69 cents. The outperformance reflects strong domestic oil and gas production, to go with lower unit costs.
However, the company’s bottom line fell from the year-ago adjusted profit of $1.24 due to weaker oil realizations.
The company reported revenues of $1.8 billion, which came 3.4% above the consensus mark but fell 19.3% from the year-ago sales of $2.2 billion.
In important news for investors, MRO’s board of directors recently declared a quarterly cash dividend of 11 cents per share to its common shareholders of record on Nov 15. The payout, which represents a 10% sequential increase, will be made on Dec 11.
Segmental Performance
This Texas-based energy explorer’s total net production (from U.S. and International units) in the quarter under review came in at 421,000 barrels of oil equivalent per day (BOE/d) compared to 353,000 BOE/d in the year-ago period.
U.S. E&P: This U.S. upstream unit reported an income of $505 million, down from $723 million in the year-ago period due to lower commodity price realizations, partly offset by stronger production and lower costs. We modeled the segment income at $479.8 million.
Marathon Oil’s average realized liquids prices (crude oil and condensate) of $80.90 per barrel were 13.6% lower than the year-earlier level of $93.67 but beat our projection of $79.56. Additionally, natural gas liquids’ average price realizations decreased 37.1% to $21.37 a barrel. Finally, average realized natural gas prices plunged 70.9% year over year to $2.28 per thousand cubic feet and missed our estimate of $2.44.
Meanwhile, production costs were $5.07 per BOE, representing a 20.8% year-over-year fall.
Net production of 369,000 BOE/d was up 25.1% from third-quarter 2022. Total U.S. output, which came ahead of our projection of 352 BOE/d, comprised approximately 51% oil, or 189,000 barrels per day (bpd).
Significantly higher year-over-year production from Eagle Ford favored the company’s quarterly performance, which was partly offset by lower volumes from the Oklahoma area. The Eagle Ford region recorded an average production of 158,000 BOE/d, surging 75.6% from the third-quarter 2022 level, while output from Bakken was 121,000 BOE/d compared with 118,000 BOE/d in the year-ago quarter. Meanwhile, the Oklahoma output came in at 46,000 BOE/d, down from the year-ago level of 54,000 BOE/d.
International E&P: The segment, which explores and produces oil and gas in Equatorial Guinea, reported earnings of $62 million compared with $181 million in the year-ago period and our projection of $74.6 million. These results could be primarily blamed on lower output and liquids prices.
Marathon reported production available for sale of 52,000 BOE/d, down from 58,000 Boe/d in third-quarter 2022 but in line with our expectations.
Marathon’s average realized liquids prices (crude oil and condensate) of $64.30 per barrel reflected a 13.1% deterioration from the year-earlier quarter. Natural gas and natural gas liquids’ average price realizations came in at 24 cents per thousand cubic feet and $1 a barrel, respectively, the same as the corresponding period of 2022.
Financial Position
Total costs in the quarter were $1.1 billion, essentially unchanged from the prior-year period and marginally below our expectations. Marathon Oil reported an adjusted operating cash flow of $1.1 billion for the third quarter, down 20.6% from a year ago.
As of Sep 30, 2023, it had cash and cash equivalents worth $174 million and long-term debt of $4.9 billion. The debt-to-capitalization ratio of the company was 33.8.
Marathon Oil spent $449 million in capital and exploratory expenditures during the quarter and raked in $718 million in adjusted free cash flow. The company also executed $415 million in share repurchases during the period.
2023 Guidance
Marathon has maintained its budgeted capital spending between $1.9 billion and $2 billion this year. Meanwhile, MRO continues to prioritize shareholder returns over production growth. The company is targeting production toward the high end of its range of 385,000 BOE/d to 405,000 BOE/d. Further, Marathon expects oil volumes in the band of 185,000-195,000 barrels per day.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Marathon Oil has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Marathon Oil has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Marathon Oil belongs to the Zacks Oil and Gas - Integrated - United States industry. Another stock from the same industry, Antero Midstream Corporation (AM), has gained 2.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Antero Midstream Corporation reported revenues of $263.84 million in the last reported quarter, representing a year-over-year change of +14.2%. EPS of $0.23 for the same period compares with $0.20 a year ago.
Antero Midstream Corporation is expected to post earnings of $0.21 per share for the current quarter, representing a year-over-year change of +5%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Antero Midstream Corporation. Also, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marathon Oil Corporation (MRO) : Free Stock Analysis Report
Antero Midstream Corporation (AM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In important news for investors, MRO’s board of directors recently declared a quarterly cash dividend of 11 cents per share to its common shareholders of record on Nov 15. Segmental Performance This Texas-based energy explorer’s total net production (from U.S. and International units) in the quarter under review came in at 421,000 barrels of oil equivalent per day (BOE/d) compared to 353,000 BOE/d in the year-ago period. Significantly higher year-over-year production from Eagle Ford favored the company’s quarterly performance, which was partly offset by lower volumes from the Oklahoma area.
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Marathon Oil Reports Better-Than-Expected Q3 Earnings Marathon Oil Corporation reported third-quarter 2023 adjusted net income per share of 77 cents, beating the Zacks Consensus Estimate of 69 cents. U.S. E&P: This U.S. upstream unit reported an income of $505 million, down from $723 million in the year-ago period due to lower commodity price realizations, partly offset by stronger production and lower costs. Click to get this free report Marathon Oil Corporation (MRO) : Free Stock Analysis Report Antero Midstream Corporation (AM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Marathon Oil Reports Better-Than-Expected Q3 Earnings Marathon Oil Corporation reported third-quarter 2023 adjusted net income per share of 77 cents, beating the Zacks Consensus Estimate of 69 cents. International E&P: The segment, which explores and produces oil and gas in Equatorial Guinea, reported earnings of $62 million compared with $181 million in the year-ago period and our projection of $74.6 million. Click to get this free report Marathon Oil Corporation (MRO) : Free Stock Analysis Report Antero Midstream Corporation (AM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Marathon Oil (MRO). Marathon Oil Reports Better-Than-Expected Q3 Earnings Marathon Oil Corporation reported third-quarter 2023 adjusted net income per share of 77 cents, beating the Zacks Consensus Estimate of 69 cents. Segmental Performance This Texas-based energy explorer’s total net production (from U.S. and International units) in the quarter under review came in at 421,000 barrels of oil equivalent per day (BOE/d) compared to 353,000 BOE/d in the year-ago period.
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64f6c597-388c-448b-b384-a82f0ba055f7
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715150.0
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2023-12-01 00:00:00 UTC
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Why Is Sunoco LP (SUN) Up 3.5% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-sunoco-lp-sun-up-3.5-since-last-earnings-report
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A month has gone by since the last earnings report for Sunoco LP (SUN). Shares have added about 3.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sunoco LP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Sunoco Q3 Earnings Beat Estimates, Revenues Fall Y/Y
Sunoco LP reported third-quarter 2023 earnings of $2.95 per unit, which beat the Zacks Consensus Estimate of $1.11. The bottom line improved from the year-ago quarter’s 75 cents per unit.
Total quarterly revenues of $6,320 million beat the Zacks Consensus Estimate of $5,755 million. The top line, however, declined from $6,594 million reported a year ago.
Strong quarterly earnings were driven by a rise in the volume of fuel gallons sold, coupled with a decrease in the total cost of sales and operating expenses.
Segmental Performance
Sunoco reports financial results through two reportable segments — Fuel Distribution and Marketing and All Other.
Fuel Distribution and Marketing: Total revenues from the segment decreased to $6,080 million from $6,334 million in the comparable period of 2022, primarily due to lower motor fuel sales.
All Other: The unit reported total revenues of $240 million compared with $260 million in the prior-year quarter. The year-over-year downside can be attributed to lower motor fuel sales. The reported figure came in lower than our estimate of $264 million.
In terms of volumes, the partnership sold 2,124 million gallons of fuel in the reported quarter, up from 1,9856 in the year-ago period. Motor fuel gross profit per gallon was 13 cents compared with the year-ago level of 13.9 cents.
The total operating income increased to $338 million from $150 million in the prior-year quarter. The figure also beat our estimate of $146.4 million.
For the quarter ended Sep 30, 2023, net income was $272 million versus $83 million in the third quarter of 2022. The figure also surpassed our estimate of $113.1 million.
Distributable Cash Flow
Adjusted distributable cash flow totaled $181 million in the third quarter, down from the year-ago level of $196 million.
Expenses & Capital Expenditure
The total cost of sales and operating expenses in the reported quarter declined to $5,982 million from $6,444 million a year ago.
The partnership incurred a capital expenditure of $45 million in the third quarter, comprising $31 million in growth capital and $14 million in maintenance capital.
Balance Sheet
As of Sep 30, 2023, Sunoco had cash and cash equivalents of $256 million, and a net long-term debt of $3,169 million.
Guidance
The company raised its guidance for 2023 adjusted EBITDA to more than $935 million from the previously predicted band of $865-$915 million.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months.
VGM Scores
Currently, Sunoco LP has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Sunoco LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sunoco LP (SUN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Strong quarterly earnings were driven by a rise in the volume of fuel gallons sold, coupled with a decrease in the total cost of sales and operating expenses. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Sunoco Q3 Earnings Beat Estimates, Revenues Fall Y/Y Sunoco LP reported third-quarter 2023 earnings of $2.95 per unit, which beat the Zacks Consensus Estimate of $1.11. Fuel Distribution and Marketing: Total revenues from the segment decreased to $6,080 million from $6,334 million in the comparable period of 2022, primarily due to lower motor fuel sales. Expenses & Capital Expenditure The total cost of sales and operating expenses in the reported quarter declined to $5,982 million from $6,444 million a year ago.
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Sunoco Q3 Earnings Beat Estimates, Revenues Fall Y/Y Sunoco LP reported third-quarter 2023 earnings of $2.95 per unit, which beat the Zacks Consensus Estimate of $1.11. Total quarterly revenues of $6,320 million beat the Zacks Consensus Estimate of $5,755 million. Expenses & Capital Expenditure The total cost of sales and operating expenses in the reported quarter declined to $5,982 million from $6,444 million a year ago.
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A month has gone by since the last earnings report for Sunoco LP (SUN). Sunoco Q3 Earnings Beat Estimates, Revenues Fall Y/Y Sunoco LP reported third-quarter 2023 earnings of $2.95 per unit, which beat the Zacks Consensus Estimate of $1.11. Total quarterly revenues of $6,320 million beat the Zacks Consensus Estimate of $5,755 million.
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939cecd2-9b65-4fb8-8854-5a95b41a0235
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715151.0
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2023-12-01 00:00:00 UTC
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Exelixis (EXEL) Up 8.4% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/exelixis-exel-up-8.4-since-last-earnings-report%3A-can-it-continue
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It has been about a month since the last earnings report for Exelixis (EXEL). Shares have added about 8.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Exelixis due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Exelixis Q3 Earnings and Sales Miss, Annual View Updated
Exelixis reported earnings of 10 cents per share in the third quarter of 2023, missing the Zacks Consensus Estimate of 17 cents and down from 31 cents in the year-ago quarter.
Including stock-based compensation expense, earnings per share were breakeven compared with 23 cents per share in the year-ago quarter due to a significant increase in R&D expenses.
Net revenues came in at $471.9 million, marginally missing the Zacks Consensus Estimate of $476 million. Revenues were, however, up 14.6% year over year.
Quarter in Detail
Net product revenues came in at $426.5 million, up 16.4% year over year. The increases in net product revenues were primarily due to a rise in sales volume and the average net selling price.
Cabometyx (cabozantinib) generated revenues of $422.2 million and beat the Zacks Consensus Estimate and our model estimate of $416 million and $417.6 million, respectively. The drug is approved for advanced renal cell carcinoma (“RCC”) and previously treated hepatocellular carcinoma (“HCC”). Cometriq generated $4.3 million in net product revenues (cabozantinib capsules) for treating medullary thyroid cancer.
Collaboration revenues, comprising license revenues and collaboration services revenues, were $45.4 million in the quarter compared with $45.3 million in the year-ago quarter.
In the reported quarter, research and development expenses were $332.6 million, up 67.2% year over year. The significant surge was primarily related to the $80 million up-front payment associated with the in-licensing of XL309, increases in license and other collaboration costs, personnel expenses and manufacturing costs to support development candidates. Selling, general and administrative expenses were $138.1 million, up 20% due to an increase in personnel expenses.
In March, Exelixis announced that its board authorized the repurchase of up to $550 million of the company’s common stock before the end of 2023. Under this program, Exelixis repurchased 16.943 million shares of the company’s common stock for a total of $344.8 million as of Sep 30.
Litigation Update
In July, Exelixis announced that it entered into a settlement and license agreement with Teva Pharmaceuticals. This settlement resolves patent litigation brought by Exelixis in response to Teva’s abbreviated new drug application seeking approval to market a generic version of Cabometyx prior to the expiration of the applicable patents. Per the settlement terms, Exelixis will grant Teva a license to market its generic version of the drug in the United States beginning on Jan 1, 2031, upon the FDA’s approval.
Consequently, both companies will terminate the ongoing litigation.
Pipeline Updates
In August, Exelixis and partner Ipsen announced that the phase III CONTACT-02 pivotal trial met one of two primary endpoints, demonstrating a statistically significant improvement in progression-free survival (“PFS”) at the primary analysis. The study is evaluating cabozantinib in combination with atezolizumab compared with a second novel hormonal therapy (“NHT”) in patients with metastatic castration-resistant prostate cancer and measurable soft-tissue disease who have been previously treated with one NHT. At a prespecified interim analysis for the primary endpoint of overall survival (“OS”), a trend toward improvement of OS was observed, but the data was immature and did not meet the threshold for statistical significance.
Therefore, the trial will continue to the next analysis of OS, as planned.
Exelixis plans to discuss a potential regulatory submission when the results of the next OS analysis are available based on feedback from the FDA.
Detailed results from the late-stage CABINET study evaluating cabozantinib in advanced pancreatic and extra-pancreatic neuroendocrine tumors demonstrated a statistically significant and clinically meaningful improvement in PFS in those patients treated with cabozantinib. Earlier, The Alliance for Clinical Trials in Oncology’s independent Data and Safety Monitoring Board unanimously recommended unblinding and stopping the trial early due to a dramatic improvement in efficacy observed at an interim analysis.
In September, Exelixis received global rights to develop and commercialize XL309 from Insilico. The candidate is a potentially best-in-class small-molecule inhibitor of USP1, which has emerged as a synthetic lethal target in the context of BRCA-mutated tumors. Under the terms of the agreement, Insilico granted Exelixis an exclusive, worldwide license to develop and commercialize XL309 and other USP1-targeting compounds in exchange for an upfront payment of $80 million and potential future development and commercial milestone payments, as well as tiered royalties on net sales.
2023 Guidance Updated
Revenues are now projected between $1.825 billion and $1.850 billion compared with the previous estimate of $1.775-$1.875 billion.
Product revenues are estimated in the range of $1.625-$1.650 billion compared with the earlier guidance of $1.575-1.675 billion.
R&D expenses are now projected between $1.050 billion and $1.075 billion, up from the previous guidance of $1.0-$1.050 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 51.64% due to these changes.
VGM Scores
At this time, Exelixis has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Exelixis has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Exelixis belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Deciphera Pharmaceuticals, Inc. (DCPH), has gained 7.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Deciphera Pharmaceuticals, Inc. reported revenues of $43.31 million in the last reported quarter, representing a year-over-year change of +20.4%. EPS of -$0.58 for the same period compares with -$0.55 a year ago.
Deciphera Pharmaceuticals, Inc. is expected to post a loss of $0.59 per share for the current quarter, representing a year-over-year change of +1.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
Deciphera Pharmaceuticals, Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exelixis, Inc. (EXEL) : Free Stock Analysis Report
Deciphera Pharmaceuticals, Inc. (DCPH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Per the settlement terms, Exelixis will grant Teva a license to market its generic version of the drug in the United States beginning on Jan 1, 2031, upon the FDA’s approval. Exelixis plans to discuss a potential regulatory submission when the results of the next OS analysis are available based on feedback from the FDA.
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Exelixis Q3 Earnings and Sales Miss, Annual View Updated Exelixis reported earnings of 10 cents per share in the third quarter of 2023, missing the Zacks Consensus Estimate of 17 cents and down from 31 cents in the year-ago quarter. Collaboration revenues, comprising license revenues and collaboration services revenues, were $45.4 million in the quarter compared with $45.3 million in the year-ago quarter. Click to get this free report Exelixis, Inc. (EXEL) : Free Stock Analysis Report Deciphera Pharmaceuticals, Inc. (DCPH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Exelixis Q3 Earnings and Sales Miss, Annual View Updated Exelixis reported earnings of 10 cents per share in the third quarter of 2023, missing the Zacks Consensus Estimate of 17 cents and down from 31 cents in the year-ago quarter. Cabometyx (cabozantinib) generated revenues of $422.2 million and beat the Zacks Consensus Estimate and our model estimate of $416 million and $417.6 million, respectively. Click to get this free report Exelixis, Inc. (EXEL) : Free Stock Analysis Report Deciphera Pharmaceuticals, Inc. (DCPH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the reported quarter, research and development expenses were $332.6 million, up 67.2% year over year. Deciphera Pharmaceuticals, Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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e812d636-1d6a-402e-83b3-dbba1b301b48
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715152.0
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2023-12-01 00:00:00 UTC
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Why Is Yum (YUM) Up 1% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-yum-yum-up-1-since-last-earnings-report
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A month has gone by since the last earnings report for Yum Brands (YUM). Shares have added about 1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Yum due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
YUM! Brands' Q3 Earnings Beat, Revenues Miss Estimates
YUM! Brands reported mixed third-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. The top and e bottom lines increased on a year-over-year basis. The company benefited from robust same-store sales and unit growth.
Earnings and Revenue Discussion
In third-quarter 2023, the company’s adjusted earnings per share (EPS) reached $1.44, surpassing the Zacks Consensus Estimate of $1.26. The metric jumped 32% from the prior year.
Quarterly revenues of $1,708 million missed the consensus mark of $1,773 million. Yet, the top line improved 4% year over year. The upside can be attributed to a rise in revenues across its operating divisions.
Worldwide system sales — excluding foreign currency translation — gained 10% year over year, with Taco Bell, KFC and Pizza Hut rising 11%, 12% and 4%, respectively, year over year.
Divisional Performance
YUM! Brands primarily announces results under four divisions — KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
For third-quarter 2023, revenues from KFC totaled $700 million, down 1% from a year ago. Our model predicted the metric to rise 8.7% year over year. Comps in the division increased 6% year over year compared with 13% in the previous quarter.
Segmental operating margin extended 580 basis points (bps) year over year to 49.2%. In the quarter under review, KFC Division opened 664 gross new restaurants in 57 countries.
At Pizza Hut, revenues amounted to $242 million, up 2% year over year. Our model suggested the metric to gain 2.8% year over year. Comps in the quarter increased 4% year over year.
Segmental operating margin expanded 130 bps year over year to 40.3%. Pizza Hut Division opened 383 gross new restaurants in 33 countries in the reported quarter.
Taco Bell's revenues were $629 million, up 11% from the year-ago levels. We expected the metric to improve 8.1% year over year. Comps in the segment grew 11% year over year compared with 4% in the previous quarter. Operating margin expanded 10 bps year over year to 36%.
Taco Bell opened 74 gross new restaurants in 13 countries in the quarter under discussion.
Habit Burger Grill’s revenues reached $137 million, up 4.6% year over year. Our model projected the metric to improve 12.8% year over year. Comps in the division declined 5% year over year. In the reported quarter, the division opened nine gross new restaurants in the United States.
Other Financial Details
As of Sep 30, 2023, cash and cash equivalents totaled $656 million compared with $367 million at the end of 2022. Long-term debt, as of Sep 30, 2023, was $11,152 million compared with $11,453 million as of 2022 end.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Yum has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Yum has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Yum belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, McDonald's (MCD), has gained 5.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
McDonald's reported revenues of $6.69 billion in the last reported quarter, representing a year-over-year change of +14%. EPS of $3.19 for the same period compares with $2.68 a year ago.
For the current quarter, McDonald's is expected to post earnings of $2.81 per share, indicating a change of +8.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for McDonald's. Also, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Yum! Brands, Inc. (YUM) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Brands reported mixed third-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Brands primarily announces results under four divisions — KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
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Brands reported mixed third-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Earnings and Revenue Discussion In third-quarter 2023, the company’s adjusted earnings per share (EPS) reached $1.44, surpassing the Zacks Consensus Estimate of $1.26. Brands, Inc. (YUM) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Worldwide system sales — excluding foreign currency translation — gained 10% year over year, with Taco Bell, KFC and Pizza Hut rising 11%, 12% and 4%, respectively, year over year. Comps in the division increased 6% year over year compared with 13% in the previous quarter. Brands, Inc. (YUM) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Yum Brands (YUM). Comps in the division increased 6% year over year compared with 13% in the previous quarter. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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da881bd4-e529-4738-9402-440ee3f6edaf
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715153.0
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2023-12-01 00:00:00 UTC
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Why Is DoorDash, Inc. (DASH) Up 7.1% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-doordash-inc.-dash-up-7.1-since-last-earnings-report
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nan
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nan
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It has been about a month since the last earnings report for DoorDash, Inc. (DASH). Shares have added about 7.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is DoorDash, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
DoorDash Reports Q3 Loss, Beats Revenue Estimates
DoorDash reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago quarter’s loss of 77 cents per share. However, the figure beat the Zacks Consensus Estimate by 57.78%.
Revenues increased 27.2% year over year to $2.16 billion and surpassed the consensus mark by 3.52%. The impressive growth was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
Quarter in Details
In the third quarter of 2023, total orders increased 24% year over year to 543 million.
Marketplace GOV increased 24% year over year to $16.8 billion.
Adjusted gross margin was 48.7% compared with the 47.4% reported in the year-ago quarter.
The contribution margin was 29.6% compared with 24.7% in the year-ago quarter.
In the quarter under review, adjusted sales & marketing expenses increased 7% year over year to $413 million.
In the third quarter, adjusted research & development expenses surged 3.3% year over year to $126 million.
Adjusted general & administrative expenses decreased 19.4% from the year-ago quarter to $170 million.
Adjusted EBITDA was $344 million compared with the year-ago quarter’s adjusted EBITDA of $87 million.
Balance Sheet and Cash Flow
As of Sep 30, 2023, DoorDash had $3.82 billion in cash and cash equivalents compared with $3.46 billion as of Jun 30.
Cash flow from operations was $398 million in the third quarter compared with the second-quarter 2023 cash flow of $393 million.
Free cash outflow in the third quarter was $324 million, higher than the second quarter’s figure of $311 million.
Guidance
For the fourth quarter of 2023, DoorDash anticipates Marketplace GOV in the range of $17-$17.4 billion. Adjusted EBITDA is expected to be $320-$380 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 62.92% due to these changes.
VGM Scores
Currently, DoorDash, Inc. has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise DoorDash, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
DoorDash, Inc. is part of the Zacks Internet - Services industry. Over the past month, Alphabet (GOOGL), a stock from the same industry, has gained 4%. The company reported its results for the quarter ended September 2023 more than a month ago.
Alphabet reported revenues of $64.05 billion in the last reported quarter, representing a year-over-year change of +11.9%. EPS of $1.55 for the same period compares with $1.06 a year ago.
For the current quarter, Alphabet is expected to post earnings of $1.60 per share, indicating a change of +52.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
Alphabet has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DoorDash, Inc. (DASH) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. The impressive growth was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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DoorDash Reports Q3 Loss, Beats Revenue Estimates DoorDash reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago quarter’s loss of 77 cents per share. Adjusted EBITDA was $344 million compared with the year-ago quarter’s adjusted EBITDA of $87 million. Click to get this free report DoorDash, Inc. (DASH) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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DoorDash Reports Q3 Loss, Beats Revenue Estimates DoorDash reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago quarter’s loss of 77 cents per share. Quarter in Details In the third quarter of 2023, total orders increased 24% year over year to 543 million. Click to get this free report DoorDash, Inc. (DASH) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has been about a month since the last earnings report for DoorDash, Inc. (DASH). Adjusted gross margin was 48.7% compared with the 47.4% reported in the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
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a9296dec-92af-439f-9050-468814fcb6e5
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715154.0
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2023-12-01 00:00:00 UTC
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Curious about Verint (VRNT) Q3 Performance? Explore Wall Street Estimates for Key Metrics
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DCOMP
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https://www.nasdaq.com/articles/curious-about-verint-vrnt-q3-performance-explore-wall-street-estimates-for-key-metrics
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nan
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Wall Street analysts forecast that Verint Systems (VRNT) will report quarterly earnings of $0.54 per share in its upcoming release, pointing to a year-over-year decline of 21.7%. It is anticipated that revenues will amount to $216.33 million, exhibiting a decline of 4.1% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Verint metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus among analysts is that 'Revenue- Perpetual revenue - non-GAAP' will reach $22.30 million. The estimate points to a change of -8.7% from the year-ago quarter.
Analysts expect 'Revenue- Professional services revenue - non-GAAP' to come in at $23.42 million. The estimate suggests a change of -11.8% year over year.
Based on the collective assessment of analysts, 'Revenue- Support revenue - non-GAAP' should arrive at $31.06 million. The estimate indicates a change of -27.8% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue- Cloud revenue - non-GAAP' should come in at $138.33 million. The estimate points to a change of +5.1% from the year-ago quarter.
View all Key Company Metrics for Verint here>>>
Shares of Verint have experienced a change of +24.3% in the past month compared to the +9.2% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), VRNT is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Verint Systems Inc. (VRNT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street analysts forecast that Verint Systems (VRNT) will report quarterly earnings of $0.54 per share in its upcoming release, pointing to a year-over-year decline of 21.7%. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. Given this perspective, it's time to examine the average forecasts of specific Verint metrics that are routinely monitored and predicted by Wall Street analysts.
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Wall Street analysts forecast that Verint Systems (VRNT) will report quarterly earnings of $0.54 per share in its upcoming release, pointing to a year-over-year decline of 21.7%. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. Click to get this free report Verint Systems Inc. (VRNT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Wall Street analysts forecast that Verint Systems (VRNT) will report quarterly earnings of $0.54 per share in its upcoming release, pointing to a year-over-year decline of 21.7%. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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64ae1bed-a14f-4519-9f35-901b0dbbefab
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715155.0
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2023-12-01 00:00:00 UTC
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Why Is Magnolia Oil & Gas Corp (MGY) Down 6.8% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-magnolia-oil-gas-corp-mgy-down-6.8-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for Magnolia Oil & Gas Corp (MGY). Shares have lost about 6.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Magnolia Oil & Gas Corp due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Magnolia Q3 Earnings Beat Estimates, Revenue In Line
Magnolia Oil & Gas reported a third-quarter 2023 adjusted net income of 54 cents per share, which beat the Zacks Consensus Estimate of 53 cents. The outperformance can be primarily attributed to a 1.4% increase in production volumes year over year. The bottom line, however, deteriorated from the year-ago quarter’s level of $1.29 due to a decline in commodity prices.
Total revenues came in at $316 million, in line with the Zacks Consensus Estimate. The top line declined 34.6% from $483 million recorded in the year-ago period.
South Texas-focused Magnolia declared a cash dividend of 11.5 cents per share of Class A common stock and a cash distribution of 11.5 cents per Class B unit, payable on Dec 1, 2023, to shareholders of record as of Nov 10, 2023. The company repurchased 2.5 million of its Class A common shares for $56.8 million in the reported quarter.
Production & Prices
The average daily total output of 82,651 barrels of oil equivalent per day (boe/d) increased from the year-ago quarter’s figure of 81,529 boe/d. The figure also beat our estimate of 81,971 boe/d.
Oil and gas production increased a little more than 1.4% year over year. Oil volumes totaled 32,867 barrels per day (bpd), down 10.6% from that reported in the third quarter of 2022. The figure missed our estimate of 36,012 bpd.
The average realized crude oil price was $80.6 per barrel, indicating a 14.1% decline from the year-ago period’s level of $93.8. The average realized natural gas liquids price was $20.7 per barrel, implying a 40.4% deterioration from the year-ago period’s figure. Natural gas price decreased 74.9% year over year to $1.9 per thousand cubic feet. MGY recorded $41.5 per boe compared with $64.5 a year ago.
Balance Sheet & Capital Expenditure
As of Sep 30, Magnolia had cash and cash equivalents of $618.5 million and long-term debt of $392.2 million. The total debt-to-total capital was 17.5%.
The company spent $104.3 million on its capital program in the reported quarter. Operating expenses decreased to $167.5 million from $171.2 million in the year-ago period.
Guidance
The company expects the diluted share count for the fourth quarter to be approximately 207 million.
MGY plans to offer a discount of $3.00 per barrel to Magellan East Houston, leaving it unhedged for all oil and natural gas production.
It expects total drilling & completions capital expenditures to be $430 million and $100 million for 2023 and the fourth quarter, respectively.
The company plans to raise its guidance for full-year production growth to 8%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 5.41% due to these changes.
VGM Scores
Currently, Magnolia Oil & Gas Corp has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Magnolia Oil & Gas Corp has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Magnolia Oil & Gas Corp belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Gulfport Energy (GPOR), has gained 2.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Gulfport reported revenues of $266.67 million in the last reported quarter, representing a year-over-year change of +39.5%. EPS of -$1.30 for the same period compares with $3.69 a year ago.
For the current quarter, Gulfport is expected to post earnings of $4.97 per share, indicating a change of +56.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
Gulfport has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report
Gulfport Energy Corporation (GPOR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent negative trend continue leading up to its next earnings release, or is Magnolia Oil & Gas Corp due for a breakout? Production & Prices The average daily total output of 82,651 barrels of oil equivalent per day (boe/d) increased from the year-ago quarter’s figure of 81,529 boe/d. MGY plans to offer a discount of $3.00 per barrel to Magellan East Houston, leaving it unhedged for all oil and natural gas production.
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Magnolia Q3 Earnings Beat Estimates, Revenue In Line Magnolia Oil & Gas reported a third-quarter 2023 adjusted net income of 54 cents per share, which beat the Zacks Consensus Estimate of 53 cents. Production & Prices The average daily total output of 82,651 barrels of oil equivalent per day (boe/d) increased from the year-ago quarter’s figure of 81,529 boe/d. Click to get this free report Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report Gulfport Energy Corporation (GPOR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Magnolia Q3 Earnings Beat Estimates, Revenue In Line Magnolia Oil & Gas reported a third-quarter 2023 adjusted net income of 54 cents per share, which beat the Zacks Consensus Estimate of 53 cents. Performance of an Industry Player Magnolia Oil & Gas Corp belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Click to get this free report Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report Gulfport Energy Corporation (GPOR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Magnolia Oil & Gas Corp (MGY). Production & Prices The average daily total output of 82,651 barrels of oil equivalent per day (boe/d) increased from the year-ago quarter’s figure of 81,529 boe/d. Oil volumes totaled 32,867 barrels per day (bpd), down 10.6% from that reported in the third quarter of 2022.
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602c9d2c-d84e-4ff6-a9dd-dc6ebf328092
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715156.0
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2023-12-01 00:00:00 UTC
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Why Is Exact Sciences (EXAS) Up 2.5% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-exact-sciences-exas-up-2.5-since-last-earnings-report
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nan
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A month has gone by since the last earnings report for Exact Sciences (EXAS). Shares have added about 2.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Exact Sciences due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Exact Sciences Q3 Earnings Beat, Gross Margin Rises
Exact Sciences reported breakeven earnings per share for third-quarter 2023, a significant improvement from the year-ago loss of 84 cents per share as well as the Zacks Consensus Estimate of a loss of 49 cents.
Revenues in Detail
Third-quarter consolidated revenues were $628.3 million, up 20.1% year over year. The metric exceeded the Zacks Consensus Estimate by 2.2%.
Segments in Detail
Screening revenues, including laboratory service revenues from Cologuard, PreventionGenetics and immaterial revenues from Biomatrica products, were $472 million. The figure increased 31% year over year.
The upside can be primarily attributed to broad-based momentum in Cologuard adoption, which was fueled by commercial productivity and strong relationships with payers and providers.
Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $156.3 million, up 3% year over year and up 5% on a core basis. Growth was led by Oncotype DX, which expanded 14% globally.
The company did not recognize any revenues from COVID-19 testing in the third quarter against $10.9 million in the year-ago period.
Margins
In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 22.6% to $459.8 million. The gross margin expanded 146 basis points (bps) to 73.2%.
Research and development expenses rose 22.7% year over year to $111.4 million. Sales and marketing expenses fell 7.7% to $173.2 million. General and administrative expenses rose 13.2% year over year to $217.4 million.
Adjusted operating expenses were $501.9 million in the third quarter, up 6.7% year over year. Adjusted operating loss totaled $42.2 million, narrower than the year-ago operating loss of $95.3 million.
Financial Update
Exact Sciences exited the third quarter of 2023 with cash and cash equivalents and marketable securities of $733.4 million compared with $604.4 million at the end of the second quarter of 2023.
The company had no long-term debt on its balance sheet at the end of the third quarter.
2023 View
The company raised its 2023 revenue guidance to $2.476-$2.486 billion (from the earlier-provided range of $2.441-$2.466 billion). The Zacks Consensus Estimate for the same is pegged at $2.26 billion.
For 2023, the company now expects its Screening revenues in the range of $1.820-$1.835 billion. The company expects Precision Oncology revenues in the range of $615-$625 million.
COVID-19 testing revenues are expected to be $6 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Exact Sciences has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Exact Sciences has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Exact Sciences is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Repligen (RGEN), a stock from the same industry, has gained 15.2%. The company reported its results for the quarter ended September 2023 more than a month ago.
Repligen reported revenues of $141.19 million in the last reported quarter, representing a year-over-year change of -29.7%. EPS of $0.23 for the same period compares with $0.77 a year ago.
Repligen is expected to post earnings of $0.34 per share for the current quarter, representing a year-over-year change of -50%. Over the last 30 days, the Zacks Consensus Estimate has changed -9.9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Repligen. Also, the stock has a VGM Score of F.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exact Sciences Corporation (EXAS) : Free Stock Analysis Report
Repligen Corporation (RGEN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. The upside can be primarily attributed to broad-based momentum in Cologuard adoption, which was fueled by commercial productivity and strong relationships with payers and providers. Margins In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 22.6% to $459.8 million.
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Exact Sciences Q3 Earnings Beat, Gross Margin Rises Exact Sciences reported breakeven earnings per share for third-quarter 2023, a significant improvement from the year-ago loss of 84 cents per share as well as the Zacks Consensus Estimate of a loss of 49 cents. Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $156.3 million, up 3% year over year and up 5% on a core basis. Click to get this free report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Repligen Corporation (RGEN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Exact Sciences Q3 Earnings Beat, Gross Margin Rises Exact Sciences reported breakeven earnings per share for third-quarter 2023, a significant improvement from the year-ago loss of 84 cents per share as well as the Zacks Consensus Estimate of a loss of 49 cents. Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $156.3 million, up 3% year over year and up 5% on a core basis. Click to get this free report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Repligen Corporation (RGEN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Exact Sciences (EXAS). Exact Sciences Q3 Earnings Beat, Gross Margin Rises Exact Sciences reported breakeven earnings per share for third-quarter 2023, a significant improvement from the year-ago loss of 84 cents per share as well as the Zacks Consensus Estimate of a loss of 49 cents. Research and development expenses rose 22.7% year over year to $111.4 million.
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9e0a522c-aa60-4818-b62a-20131687babe
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715157.0
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2023-12-01 00:00:00 UTC
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Idexx (IDXX) Up 11.1% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/idexx-idxx-up-11.1-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for Idexx Laboratories (IDXX). Shares have added about 11.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Idexx due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
IDEXX Tops Q3 Earnings, Cuts '23 Sales Guidance
IDEXX Laboratories, Inc. posted third-quarter 2023 earnings per share of $2.53, up 17.7% year over year. The figure surpassed the Zacks Consensus Estimate by 6.8%.
In the third quarter of 2023, comparable constant-currency earnings per share of $2.50 improved 16.3% year over year.
Revenues in Detail
Third-quarter revenues increased 8.8% year over year to $915.5 million. Organically, growth was 8%. However, the metric missed the Zacks Consensus Estimate by 0.8%.
The year-over-year upside was primarily driven by 9% reported and 8% organic growth in Companion Animal Group (“CAG”) revenues and Water revenue growth of 9% reported and 7% organic.
CAG Diagnostics’ recurring revenues increased 10% on a reported basis and 9% on an organic basis, supported by the sustained benefits of IDEXX execution drivers and also reflects double-digit organic revenue growth in the United States and international regions.
Veterinary software, services and diagnostic imaging systems’ revenues increased 14% on a reported basis and 13% organically, reflecting continued high growth in recurring revenues and ongoing momentum in cloud-based software placements.
Segmental Analysis
IDEXX derives revenues from four operating segments — CAG, Water, Livestock, Poultry and Dairy (“LPD”) and Other.
In the third quarter, CAG revenues rose 9% on a reported and 8% on an organic basis year over year to $837.2 million. Our model projected the segment’s revenues to be $840.6 million.
The Water segment’s revenues increased 9% (up 7% organically) year over year to $44.5 million. This figure compares with our model’s segmental projection of $38.3 million for the third quarter.
For the third quarter, LPD revenues increased 5% on a reported basis (up 2% organically) to $29.7 million. Per our model, projected revenues from this segment were $25.5 million.
Revenues in the Other segment fell 43.5% on a reported basis to $4.2 million. The figure missed our segmental projection of $7.7 million for the third quarter.
Margins
The gross profit in the third quarter rose 8.2% to $548 million. The gross margin contracted 34 basis points (bps) to 59.9% on a 9.7% rise in the cost of revenues to 367.5 million.
Sales and marketing expenses rose 4.4% to $136 million, while G&A expenses increased 6.3% to $89 million. R&D expenses dropped 0.1% to $48 million.
Overall, the operating profit in the reported quarter was $275.3 million, up 12.4% year over year. The operating margin in the quarter expanded 98 bps to 30.1%.
Financial Position
IDEXX exited the third quarter of 2023 with cash and cash equivalents of $331.7 million compared with $132.8 million at the end of the second quarter. The total debt (including the current portion) at the end of the third quarter of 2023 was $768.8 million, sequentially down from $771.8 million at the end of the second quarter.
The cumulative net cash provided by operating activities at the end of the third quarter of 2023 was $656.7 million compared with $506.9 million in the prior-year comparable period.
2023 Guidance
IDEXX provided an updated outlook for the full year 2023.
The company expects total revenues to grow in the range of $3.635 billion-$3.650 billion (the earlier projection was in the band of $3.660 billion-$3.715 billion). This suggests growth of 7.9%-8.4% on a reported basis and 8.3%-8.8% on an organic basis, down from the earlier projected growth of 8.5, both reported and organically. The Zacks Consensus Estimate is currently pegged at $3.67 billion.
IDEXX’s full-year earnings per share guidance is now pegged in the range of $9.74-$9.90 (up from the previous band of $9.64-$9.90). This updated guidance indicates reported growth of 21, compared to the previous projected growth of 20. The Zacks Consensus Estimate for the full-year earnings per share is currently pegged at $9.8.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Idexx has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Idexx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Idexx belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Thermo Fisher Scientific (TMO), has gained 10.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Thermo Fisher reported revenues of $10.57 billion in the last reported quarter, representing a year-over-year change of -1%. EPS of $5.69 for the same period compares with $5.08 a year ago.
Thermo Fisher is expected to post earnings of $5.64 per share for the current quarter, representing a year-over-year change of +4.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Thermo Fisher. Also, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Thermo Fisher is expected to post earnings of $5.64 per share for the current quarter, representing a year-over-year change of +4.4%. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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IDEXX Tops Q3 Earnings, Cuts '23 Sales Guidance IDEXX Laboratories, Inc. posted third-quarter 2023 earnings per share of $2.53, up 17.7% year over year. Veterinary software, services and diagnostic imaging systems’ revenues increased 14% on a reported basis and 13% organically, reflecting continued high growth in recurring revenues and ongoing momentum in cloud-based software placements. Click to get this free report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The year-over-year upside was primarily driven by 9% reported and 8% organic growth in Companion Animal Group (“CAG”) revenues and Water revenue growth of 9% reported and 7% organic. In the third quarter, CAG revenues rose 9% on a reported and 8% on an organic basis year over year to $837.2 million. Click to get this free report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the third quarter, CAG revenues rose 9% on a reported and 8% on an organic basis year over year to $837.2 million. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Thermo Fisher. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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6a104805-abb2-454e-a71b-18bd48ed45e5
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715158.0
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2023-12-01 00:00:00 UTC
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Why Is Avnet (AVT) Up 3.1% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-avnet-avt-up-3.1-since-last-earnings-report
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nan
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It has been about a month since the last earnings report for Avnet (AVT). Shares have added about 3.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avnet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Avnet's Q1 Earnings and Revenues Surpass Estimates
Avnet reported better-than-expected first-quarter fiscal 2024 results. The company’s non-GAAP earnings were $1.61 per share, which surpassed the Zacks Consensus Estimate of $1.50. However, the reported figure came 39 cents lower than the year-ago quarter’s non-GAAP earnings of $2 per share, mainly due to lower revenues and the negative impact of 21 cents from higher interest expenses.
Revenues declined 6.1% year over year to $6.33 billion but slightly came ahead of the Zacks Consensus Estimate of $6.31 billion. On a constant-currency basis, first-quarter fiscal 2024 sales decreased 7.8% year over year.
In the first quarter of 2024, Avnet faced challenges across its industrial, aerospace and defense verticals that delivered moderate performance. The company is also encountering challenges, including inflationary pressure and high cost of labor & raw materials, due to which it does not foresee a decline in pricing in the near term.
Quarterly Details
The Electronic Components segment’s revenues were down 6.5% year over year to $5.91 billion as inventory levels for certain components still remain elevated, which are delaying inventory replenishment requirements. Our estimates for the Electronic Components segment’s revenues were pegged at $5.88 billion.
The Farnell segment’s revenues decreased 1.1% to $421.2 million. Our estimates for the Farnell segment’s revenues were pegged at $423.6 million. The decrease in the Farnell segment was mainly due to the negative impact of product mix and competitive pricing pressure.
Revenues from America and Asia fell 6.3% and 16.6% year over year, respectively, while the EMEA registered sales growth of 8.4%.
Avnet reported a gross profit of $748.1 million, down from the year-ago quarter’s gross profit of $768.2 million. The gross margin improved 43 basis points (bps) year over year to 11.8%, primarily driven by increased Electronic Components’ gross margin, offset by lower gross margin at Farnell.
Electronic Components’ gross margin improved year over year due to a greater mix of sales from the Western regions. On the other hand, Farnell’s gross margin declined due to the negative impacts of unfavorable sales mix and competitive pricing pressures.
The adjusted operating income came in at $261.7 million, which decreased 10.8% year over year. The adjusted operating margin came in at 4.1%, down 22 bps.
Balance Sheet and Cash Flow
As of Sep 30, 2023, AVT had cash and cash equivalents of $278.7 million compared with $288.2 million reported at the end of the previous quarter.
The long-term debt was $3.10 billion as of Sep 30, up from $2.99 billion reported in the prior quarter. Avnet used cash worth $41.3 million for operational activities during the first quarter of 2024.
The company repurchased shares worth $24.3 million and paid $28.3 million in dividend payments to shareholders during the first quarter.
Second-Quarter Fiscal 2024 Guidance
Avnet estimates second-quarter fiscal 2024 revenues in the range of $6-$6.30 billion (midpoint $6.15 billion). Non-GAAP earnings for the current quarter are anticipated in the range of $1.35-$1.45 per share (midpoint $1.40).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 6.29% due to these changes.
VGM Scores
Currently, Avnet has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Avnet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Avnet, Inc. (AVT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. The company is also encountering challenges, including inflationary pressure and high cost of labor & raw materials, due to which it does not foresee a decline in pricing in the near term. On the other hand, Farnell’s gross margin declined due to the negative impacts of unfavorable sales mix and competitive pricing pressures.
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However, the reported figure came 39 cents lower than the year-ago quarter’s non-GAAP earnings of $2 per share, mainly due to lower revenues and the negative impact of 21 cents from higher interest expenses. On the other hand, Farnell’s gross margin declined due to the negative impacts of unfavorable sales mix and competitive pricing pressures. Second-Quarter Fiscal 2024 Guidance Avnet estimates second-quarter fiscal 2024 revenues in the range of $6-$6.30 billion (midpoint $6.15 billion).
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Revenues declined 6.1% year over year to $6.33 billion but slightly came ahead of the Zacks Consensus Estimate of $6.31 billion. Quarterly Details The Electronic Components segment’s revenues were down 6.5% year over year to $5.91 billion as inventory levels for certain components still remain elevated, which are delaying inventory replenishment requirements. The gross margin improved 43 basis points (bps) year over year to 11.8%, primarily driven by increased Electronic Components’ gross margin, offset by lower gross margin at Farnell.
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It has been about a month since the last earnings report for Avnet (AVT). The company’s non-GAAP earnings were $1.61 per share, which surpassed the Zacks Consensus Estimate of $1.50. The adjusted operating income came in at $261.7 million, which decreased 10.8% year over year.
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00ce6aec-9c52-4cb3-8bec-da95cf680623
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715159.0
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2023-12-01 00:00:00 UTC
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Why Is BioMarin (BMRN) Up 14.3% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-biomarin-bmrn-up-14.3-since-last-earnings-report
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nan
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nan
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BioMarin Pharmaceutical Inc. (BMRN) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Click to get this free report BioMarin Pharmaceutical Inc. (BMRN) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Click to get this free report BioMarin Pharmaceutical Inc. (BMRN) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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8b9cf707-be0d-4dd1-a297-2643f7d59a9a
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715160.0
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2023-12-01 00:00:00 UTC
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Avanos Medical (AVNS) Up 0.1% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/avanos-medical-avns-up-0.1-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for Avanos Medical (AVNS). Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avanos Medical due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Avanos Q3 Earnings Top Estimates, Margins Contract
Avanos reported third-quarter 2023 adjusted earnings per share from continuing operations of 30 cents, up 25% year over year. The bottom line topped the Zacks Consensus Estimate by a penny.
GAAP loss per share from continuing operations in the quarter under review was 19 cents against the year-ago period’s earnings per share of 23 cents.
Revenues
Revenues grossed $171.3 million in the reported quarter, down 0.6% year over year. The metric beat the Zacks Consensus Estimate by 3.8%.
Per management, the top line was hampered by lower hyaluronic acid portfolio (HA) sales. Lower revenues from the Pain Management and Recovery portfolio also weighed on the top line. However, this was offset by a higher volume in the Digestive Health portfolio and slightly favorable pricing and foreign currency translation effects.
Excluding currency and the impact of products no longer sold, organic growth was flat.
Segmental Analysis
Avanos provides a portfolio of innovative product offerings that focus on Pain Management and Recovery and Digestive Health.
Pain Management and Recovery’s net revenues of $76.3 million decreased 11.7% year over year on a reported basis. At constant exchange rate (CER), revenues were down 10%. Although the segment benefited from Diros revenues, the negative impact of foreign exchange and Avanos’ previously-announced decision to discontinue certain low-growth, low-margin products dragged the revenues. Management also confirmed witnessing continued softness across the Game Ready and HA product categories during the reported quarter.
Digestive Health’s net revenues of $95 million improved 10.6% year over year. At CER, revenues were up nearly 10.5%. The business saw continued strong execution for NeoMed. Avanos also recorded continued expansion of its U.S. CORTRAK standard of care offering.
Margin Analysis
In the quarter under review, Avanos’ gross profit fell 4.7% to $95.5 million. The gross margin contracted 240 basis points (bps) to 55.8%.
Selling and general expenses rose 0.5% to $78.7 million. Research and development expenses decreased 14.1% year over year to $6.1 million. Adjusted operating expenses of $84.8 million decreased 0.7% year over year.
Adjusted operating profit totaled $10.7 million, reflecting a 27.7% decline from the prior-year quarter’s level. Adjusted operating margin in the third quarter contracted 234 bps to 6.2%.
Financial Update
The company exited third-quarter 2023 with cash and cash equivalents worth $107.1 million compared with $81.8 million at the end of second quarter. Total debt at the third-quarter end was $264.5 million compared with $209.5 million at the second-quarter end.
Cumulative net cash provided by operating activities at the end of third-quarter 2023 totaled $19.7 million compared with $57.2 million in the prior-year period.
Guidance
Avanos has reiterated its 2023 continuing operations guidance.
The company continues to estimate its revenues for the full year in the range of $675 million-$685 million.
Avanos continues to anticipate 2023 adjusted earnings per share between $1.05 and $1.15. The Zacks Consensus Estimate currently stands at $1.14.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Avanos Medical has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Avanos Medical has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Avanos Medical belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Edwards Lifesciences (EW), has gained 3.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Edwards Lifesciences reported revenues of $1.48 billion in the last reported quarter, representing a year-over-year change of +12.3%. EPS of $0.59 for the same period compares with $0.61 a year ago.
Edwards Lifesciences is expected to post earnings of $0.64 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.
Edwards Lifesciences has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. However, this was offset by a higher volume in the Digestive Health portfolio and slightly favorable pricing and foreign currency translation effects. Segmental Analysis Avanos provides a portfolio of innovative product offerings that focus on Pain Management and Recovery and Digestive Health.
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Avanos Q3 Earnings Top Estimates, Margins Contract Avanos reported third-quarter 2023 adjusted earnings per share from continuing operations of 30 cents, up 25% year over year. Segmental Analysis Avanos provides a portfolio of innovative product offerings that focus on Pain Management and Recovery and Digestive Health. Click to get this free report AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Avanos Q3 Earnings Top Estimates, Margins Contract Avanos reported third-quarter 2023 adjusted earnings per share from continuing operations of 30 cents, up 25% year over year. Revenues Revenues grossed $171.3 million in the reported quarter, down 0.6% year over year. Click to get this free report AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Avanos Q3 Earnings Top Estimates, Margins Contract Avanos reported third-quarter 2023 adjusted earnings per share from continuing operations of 30 cents, up 25% year over year. Revenues Revenues grossed $171.3 million in the reported quarter, down 0.6% year over year. Avanos continues to anticipate 2023 adjusted earnings per share between $1.05 and $1.15.
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97cc3421-d79b-476a-a655-72daa7766799
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715161.0
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2023-12-01 00:00:00 UTC
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American Water Works (AWK) Up 5.9% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/american-water-works-awk-up-5.9-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for American Water Works (AWK). Shares have added about 5.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American Water Works due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
American Water Q3 Earnings & Revenues Surpass Estimates
American Water Works Company posted third-quarter 2023 operating earnings per share (“EPS”) of $1.66, which surpassed the Zacks Consensus Estimate of $1.55 by 7.1%.
The bottom line improved 1.8% from the year-ago quarter's earnings of $1.63 per share. The year-over-year improvement in earnings was due to the favorable impacts of warm and dry weather, which created demand for water.
Total Revenues
Total revenues of $1,167 million surpassed the Zacks Consensus Estimate of $1,097 million by 6.4%. The top line increased 7.8% from the year-ago figure of $1,082 million.
Segmental Details
Regulated businesses’ revenues in third-quarter 2023 were $1,095 million, up 9.2% from the year-ago quarter’s level. The year-over-year improvement was due to completed general rate cases and infrastructure proceedings for the recovery of incremental capital and acquisition investments.
Other revenues in third-quarter 2023 were $72 million compared with $79 million in the year-ago period.
Highlights of the Release
Total operating expenses for the third quarter were $689 million, up 7.2% from the year-ago quarter’s $643 million due to an increase in operating and maintenance expenses.
The operating income was $478 million, up 8.9% from the year-ago figure of $439 million. The actual operating income was better than our model’s projected operating income of $446.7 million.
American Water Works continues to expand operations through acquisitions and organic means. Through 14 closed acquisitions in six states, it added 7,900 customers to its base as of Sep 30, 2023. AWK’s 32 pending acquisitions (as of Sep 30), when completed, will add another 88,100 customers.
To date, the company has been authorized additional annualized revenues of $273 million from general rate cases in 2023. Further, $86 million of additional annualized revenues from infrastructure surcharges have been authorized and are effective in 2023. Currently, the rate request pending amounts to $194 million, which includes an infrastructure surcharge request of $23 million.
Financial Highlights
Cash and cash equivalents amounted to $628 million as of Sep 30, 2023 compared with $85 million as of Dec 31, 2022.
The total long-term debt was $11,698 million as of Sep 30, 2023, up 6.23% from $10,926 million as of Dec 31, 2022.
During the first nine months of 2023, cash flow from operating activities was $1,347 million compared with $764 million in the year-ago period.
Guidance
American Water Works reiterated 2023 earnings guidance at $4.72-$4.82 per share. The Zacks Consensus Estimate for 2023 earnings of $4.8 per share, a tad higher than $4.77, the midpoint of the company’s guided range.
American Water Works expects its 2024 earnings guidance in the range of $5.10-$5.20 per share. The Zacks Consensus Estimate for 2024 earnings of $5.12 per share, a tad lower than $5.15, the midpoint of the company’s guided range. AWK reiterated long-term earnings and dividend growth in the range of 7-9%.
The company plans to invest nearly $2.9 billion across its footprint in 2023 and expects to invest $3.1 billion in 2024. AWK intends to invest in the range of $16-$17 billion in the 2024-2028 period and $34-$38 billion in the 2024-2033 period.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, American Water Works has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, American Water Works has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. American Water Works Company posted third-quarter 2023 operating earnings per share (“EPS”) of $1.66, which surpassed the Zacks Consensus Estimate of $1.55 by 7.1%. The year-over-year improvement was due to completed general rate cases and infrastructure proceedings for the recovery of incremental capital and acquisition investments.
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American Water Works Company posted third-quarter 2023 operating earnings per share (“EPS”) of $1.66, which surpassed the Zacks Consensus Estimate of $1.55 by 7.1%. Total Revenues Total revenues of $1,167 million surpassed the Zacks Consensus Estimate of $1,097 million by 6.4%. Click to get this free report American Water Works Company, Inc. (AWK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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American Water Works Company posted third-quarter 2023 operating earnings per share (“EPS”) of $1.66, which surpassed the Zacks Consensus Estimate of $1.55 by 7.1%. Total Revenues Total revenues of $1,167 million surpassed the Zacks Consensus Estimate of $1,097 million by 6.4%. Highlights of the Release Total operating expenses for the third quarter were $689 million, up 7.2% from the year-ago quarter’s $643 million due to an increase in operating and maintenance expenses.
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A month has gone by since the last earnings report for American Water Works (AWK). American Water Q3 Earnings & Revenues Surpass Estimates American Water Works expects its 2024 earnings guidance in the range of $5.10-$5.20 per share.
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a32b09ff-1820-4fe3-a21a-5415c8de1439
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715162.0
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2023-12-01 00:00:00 UTC
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Palomar (PLMR) Up 3.8% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/palomar-plmr-up-3.8-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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It has been about a month since the last earnings report for Palomar (PLMR). Shares have added about 3.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Palomar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Palomar's Q3 Earnings and Revenues Top Estimates
Palomar Holdings, Inc. reported third-quarter 2023 operating income of 80 cents per share, which beat the Zacks Consensus Estimate by 19.4%. The bottom line increased nearly threefold year over year. Palomar witnessed improved premiums and net investment income as well as losses and loss adjustment expenses.
Behind the Headlines
Total revenues improved 10.8% year over year to $92 million, mainly attributable to higher premiums and net investment income. The top line beat the Zacks Consensus Estimate by 1.3%.
Gross written premiums increased 24% year over year to $314 million. Our estimate was $255.8 million. Net earned premiums increased 10.1% year over year to $85.8 million. Our estimate was $84.3 million. The Zacks Consensus Estimate was pegged at $85 million.
Net investment income increased 61% year over year to $6 million, driven by higher yields on invested assets and a higher average balance of investments. The Zacks Consensus Estimate was pegged at $5.6 million. Our estimate was $5.1 million. Palomar witnessed an underwriting income of $20.7 million, up more than fivefold year over year. Adjusted underwriting income was nearly $25 million, rising more than threefold year over year.
Total expenses of $66.4 million increased 12% year over year due to loss and loss adjustment expenses. Our estimate was $70.9 million.
The loss ratio was 18.8, which improved 2080 basis points (bps) year over year. Our estimate was 18.2. The Zacks Consensus Estimate was pegged at 26.6. Adjusted combined ratio, excluding catastrophe losses, improved 1940 bps year over year to 70.9. The Zacks Consensus Estimate was pegged at 75.
Financial Update
Cash and cash equivalents declined 21.8% from 2022-end to $53.3 million at third-quarter 2023-end. Shareholder equity increased 9.5% from 2022-end to $421.3 million.
Annualized adjusted return on equity in the third quarter of 2023 was 22.3%, up 1240 bps year over year. PLMR bought back shares worth $6.6 million in the third quarter of 2023. As of Sep 30, 2023, $43.5 million remained under authorization.
2023 View
Palomar aims to achieve adjusted net income in the range of $90 million to $93 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Palomar has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Palomar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Palomar is part of the Zacks Insurance - Property and Casualty industry. Over the past month, Chubb (CB), a stock from the same industry, has gained 5%. The company reported its results for the quarter ended September 2023 more than a month ago.
Chubb reported revenues of $14.09 billion in the last reported quarter, representing a year-over-year change of +11.9%. EPS of $4.95 for the same period compares with $3.17 a year ago.
For the current quarter, Chubb is expected to post earnings of $4.92 per share, indicating a change of +21.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Chubb. Also, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report
Chubb Limited (CB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Palomar Holdings, Inc. reported third-quarter 2023 operating income of 80 cents per share, which beat the Zacks Consensus Estimate by 19.4%. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Palomar witnessed improved premiums and net investment income as well as losses and loss adjustment expenses. Total expenses of $66.4 million increased 12% year over year due to loss and loss adjustment expenses. Click to get this free report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report Chubb Limited (CB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Net earned premiums increased 10.1% year over year to $85.8 million. Net investment income increased 61% year over year to $6 million, driven by higher yields on invested assets and a higher average balance of investments. Palomar witnessed an underwriting income of $20.7 million, up more than fivefold year over year.
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It has been about a month since the last earnings report for Palomar (PLMR). Palomar Holdings, Inc. reported third-quarter 2023 operating income of 80 cents per share, which beat the Zacks Consensus Estimate by 19.4%. Net earned premiums increased 10.1% year over year to $85.8 million.
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35930e62-c1f6-4fd1-937a-7007e33bb158
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715163.0
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2023-12-01 00:00:00 UTC
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Why Is Corcept (CORT) Up 0.7% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-corcept-cort-up-0.7-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for Corcept Therapeutics (CORT). Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Corcept due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Corcept Beats on Q3 Earnings, Raises '23 Sales View
Corcept reported third-quarter 2023 earnings of 28 cents per share, which beat the Zacks Consensus Estimate of 22 cents. The company had reported earnings of 30 cents in the year-ago quarter.
Revenues increased 22% year over year to $123.6 million. The figure beat the Zacks Consensus Estimate of $118 million. The top line solely comprises product sales of Cushing’s syndrome drug, Korlym.
Quarter in Detail
Korlym revenues beat our model estimate of $117.2 million.
Research and development expenses totaled $45.5 million, up almost 36.6% from the year-ago quarter’s level.
Selling, general and administrative expenses increased around 28.7% year over year to $45.3 million.
Operating expenses were $92.4 million, up almost 32.4% from the prior year quarter. This rise can be attributed to increased spending on clinical studies and sales and marketing activities to support the expansion of clinical developments.
Cash and investments as of Sep 30, 2023 totaled $414.8 million compared with $363.3 million as of Jun 30, 2023.
2023 Guidance
The company raised its revenue guidance for 2023, anticipating growth for Korlym.
Corcept now expects total revenues in the range of $470-$480 million compared with the earlier guidance of $455-$470 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 14.95% due to these changes.
VGM Scores
Currently, Corcept has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Corcept has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent positive trend continue leading up to its next earnings release, or is Corcept due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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A month has gone by since the last earnings report for Corcept Therapeutics (CORT). Corcept Beats on Q3 Earnings, Raises '23 Sales View Corcept reported third-quarter 2023 earnings of 28 cents per share, which beat the Zacks Consensus Estimate of 22 cents. Click to get this free report Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Corcept Beats on Q3 Earnings, Raises '23 Sales View Corcept reported third-quarter 2023 earnings of 28 cents per share, which beat the Zacks Consensus Estimate of 22 cents. Corcept now expects total revenues in the range of $470-$480 million compared with the earlier guidance of $455-$470 million. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Corcept Beats on Q3 Earnings, Raises '23 Sales View Corcept reported third-quarter 2023 earnings of 28 cents per share, which beat the Zacks Consensus Estimate of 22 cents. The company had reported earnings of 30 cents in the year-ago quarter. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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852bf293-8baa-48cd-adf6-a705bce3b07b
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715164.0
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2023-12-01 00:00:00 UTC
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Why Is Qorvo (QRVO) Up 12.9% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-qorvo-qrvo-up-12.9-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for Qorvo (QRVO). Shares have added about 12.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Qorvo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Qorvo Q2 Earnings Beat Estimates Despite Lower Revenues
Qorvo reported relatively healthy second-quarter fiscal 2024 results, with the top and bottom lines surpassing the respective Zacks Consensus Estimate.
The company reported a revenue contraction year over year due to a net sales drop in the High-Performance Analog (HPA) and Connectivity and Sensors Group (CSG) verticals. Despite major improvements in channel inventory, the persistence of low demand in some key end markets impacted the top-line growth.
However, the top line surpassed the midpoint of the revenue guidance by $103 million. Qorvo secured new design wins across all the verticals. The company is witnessing a growing shipment of highly integrated modules for Android smartphones. Strength in automotive, defense and aerospace business are positive factors.
Net Income
On a GAAP basis, the company registered a net income of $97.5 million or 99 cents per share compared with a net income of $188.6 million or $1.82 per share in the prior-year quarter. Higher operating expenses and lower revenues year over year led to a decline in net income.
Non-GAAP net income was $235.5 million or $2.39 per share, down from $276.2 million or $2.66 per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimates by 62 cents.
Revenues
Net sales during the quarter declined to $1,103.5 million from $1,158.1 million in the prior-year quarter. Despite significant improvement in inventory levels, demand in various end markets was yet to fully recover, which impeded revenues. Macroeconomic headwinds also impacted the top line. Nevertheless, the company secured major deal wins for its ultra-wide band portfolio in a flagship Android smartphone and a leading German automotive manufacturer. The top line beat the Zacks Consensus Estimate of $1,002 million.
HPA contributed $149.8 million in revenues, down from $228.1 million in the year-ago quarter. Net sales fell short of the Zacks Consensus Estimate of $164.5 million. The top line in this segment was impacted by inventory correction among base station customers. Backed by its comprehensive portfolio in power management, the company secured various design wins in SSDs, power tools and appliances. The growing adoption of DOCSIS 4.0 is also driving the top line. Strength in radar systems, low earth orbit satellites and unmanned vehicles like drones are tailwinds. The company’s initiatives to venture into new markets like electric vehicles, solar inverters and data centers are positive.
Revenues from CSG were $103.6 million compared with $143.4 million in the year-earlier quarter. The top line missed the Zacks Consensus Estimate of $114.8 million. However, the company registered sequential growth, driven by healthy demand trends in various end markets, including automotive, connected home, enterprise and industrial. Rising adoption of ultra-wideband and the transition to Wi-Fi 6E and Wi-Fi 7 partially supported the top line.
Net sales in Advance Cellular Group (ACG) were $850.1 million, up 8.1% year over year, backed by healthy demand for Qorvo components across the Android smartphone ecosystem. The top line beat the Zacks Consensus Estimate of $721.4 million.
Other Details
On a GAAP basis, gross profit declined to $489.7 million from $538.9 million, with respective margins of 44.4% and 46.5%. However, the company reported solid sequential growth backed by revenue improvement and a favorable product mix. Non-GAAP gross margin was 47.6% compared with 49.2% reported in the prior-year quarter. Non-GAAP operating income stood at $279.4 million, down from $337.7 million in the year-ago quarter.
Cash Flow & Liquidity
As of Sep 30, 2023, QRVO had $706.8 million in cash and cash equivalents with $2,048.6 million of long-term debt. The company generated $93 million in net cash from operating activities, with a free cash flow of $64.4 million. During the quarter, Qorvo repurchased $100 million worth of shares at an average price of $103.
Outlook
For third-quarter fiscal 2024, the company approximated revenues at about $1 billion (+/- $25 million). Non-GAAP gross margin is estimated in the range of 43-44%. Non-GAAP earnings per share are likely to be $1.65 at the midpoint of the revenue guidance. The company expects non-GAAP operating expenses to be in the range of $235-$240 million in the December quarter.
Qorvo is actively investing in diverse businesses to broaden its portfolio and enhance market exposure. Management expects the decline in channel inventory to continue in the upcoming quarters. Transition to advanced 5G smartphones that include additional transmit, receive and satellite bands favors Qorvo’s ACG portfolio and boasts a significant growth opportunity.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Qorvo has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Qorvo has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Qorvo, Inc. (QRVO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nevertheless, the company secured major deal wins for its ultra-wide band portfolio in a flagship Android smartphone and a leading German automotive manufacturer. However, the company registered sequential growth, driven by healthy demand trends in various end markets, including automotive, connected home, enterprise and industrial. Transition to advanced 5G smartphones that include additional transmit, receive and satellite bands favors Qorvo’s ACG portfolio and boasts a significant growth opportunity.
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Qorvo Q2 Earnings Beat Estimates Despite Lower Revenues Qorvo reported relatively healthy second-quarter fiscal 2024 results, with the top and bottom lines surpassing the respective Zacks Consensus Estimate. Net Income On a GAAP basis, the company registered a net income of $97.5 million or 99 cents per share compared with a net income of $188.6 million or $1.82 per share in the prior-year quarter. However, the company registered sequential growth, driven by healthy demand trends in various end markets, including automotive, connected home, enterprise and industrial.
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Qorvo Q2 Earnings Beat Estimates Despite Lower Revenues Qorvo reported relatively healthy second-quarter fiscal 2024 results, with the top and bottom lines surpassing the respective Zacks Consensus Estimate. Net Income On a GAAP basis, the company registered a net income of $97.5 million or 99 cents per share compared with a net income of $188.6 million or $1.82 per share in the prior-year quarter. Revenues Net sales during the quarter declined to $1,103.5 million from $1,158.1 million in the prior-year quarter.
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Qorvo Q2 Earnings Beat Estimates Despite Lower Revenues Qorvo reported relatively healthy second-quarter fiscal 2024 results, with the top and bottom lines surpassing the respective Zacks Consensus Estimate. Revenues Net sales during the quarter declined to $1,103.5 million from $1,158.1 million in the prior-year quarter. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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21c9f169-d510-4a68-82a0-060517ab2dc6
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715165.0
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2023-12-01 00:00:00 UTC
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Louisiana-Pacific (LPX) Up 6.5% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/louisiana-pacific-lpx-up-6.5-since-last-earnings-report%3A-can-it-continue
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nan
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It has been about a month since the last earnings report for Louisiana-Pacific (LPX). Shares have added about 6.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Louisiana-Pacific due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Louisiana-Pacific Q3 Earnings Beat, Adjusted EBITDA Falls
Louisiana-Pacific Corporation or LP, reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate, but net sales missed the same. Both metrics declined on a year-over-year basis.
The company noted that Siding sales volume, price and net sales increased sequentially. Also, LP is witnessing normalized Siding inventories. LP's strategy positions it well for long-term growth as the housing outlook continues to improve.
Detailed Discussion
Louisiana-Pacific reported adjusted earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.39 by 16.6%. The bottom line declined 5.8% from the year-ago quarter’s reported figure of $1.72 per share.
Net sales of $728 million missed the consensus estimate of $736 million by 1.1% and declined 15% from the prior year, owing to lower segmental sales.
Single-family housing starts rose to 258 from the 242 units reported in the year-ago period. Multi-family starts were down to 104 units from 144 units reported a year ago.
Adjusted EBITDA of $190 million was down 5% from the prior-year quarter’s level.
Segmental Analysis
Siding: The segment’s sales of $345 million were down 13% from the prior-year period. A 3% rise in the average net selling price (“ASP”) was offset by a 16% decrease in volume from prior-year levels. The ASP benefited from list price increases. Volume reduced on challenging new and existing home selling markets as well as record results in the comparable year-ago period.
Adjusted EBITDA came in at $71 million, a 21% decline from $90 million reported a year ago. Lower volumes and press rebuild costs, partially offset by higher ASP and lower freight, raw materials and labor costs, hurt adjusted EBITDA.
OSB: Sales in the segment decreased 14% year over year to $335 million, owing to a decrease in sales volume from market curtailments and reduced production volume from the conversion of its Sagola, MI, mill to siding production. This was partially offset by an increase in OSB prices.
The company’s adjusted EBITDA grew 6% year over year to $120 million due to improved prices and lower mill-related costs, partially offset by lower sales volumes.
South America: Sales of $45 million declined 16% due to lower OSB volumes and ASP. Adjusted EBITDA plunged 54% from the year-ago quarter to $6 million due to lower sales volumes, reduced ASP and higher equipment relocation costs.
Financials
At September-end, LP had more than $710 million in liquidity. As of Jun 30, 2023, Louisiana-Pacific had cash and cash equivalents of $160 million compared with $369 million at 2022-end. Long-term debt was $347 million compared with the 2022-end level of $346 million.
For the third quarter, net cash provided by operations was $187 million, down from $195 million reported in the respective year-ago period.
At September-end, $200 million shares remained under the share repurchase program authorized in May 2022.
Guidance
For the fourth quarter, OSB revenues are expected to be sequentially lower by approximately 30% (based on Random Lengths’ report published on Oct 7, 2023). It anticipates a consolidated adjusted EBITDA of $60-$80 million.
For 2023, the company expects Siding Solutions’ revenues to decline by 10% from the year-ago period.
For the year, the company anticipates capital expenditures to range between $280 million and $295 million. The capital expenditure for mill conversions is likely to be $100-$105 million, $130-$135 million for sustaining maintenance and $50-$55 million for other strategic growth projects.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -49.33% due to these changes.
VGM Scores
Currently, Louisiana-Pacific has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Louisiana-Pacific has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Louisiana-Pacific belongs to the Zacks Building Products - Wood industry. Another stock from the same industry, Weyerhaeuser (WY), has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Weyerhaeuser reported revenues of $2.02 billion in the last reported quarter, representing a year-over-year change of -11.2%. EPS of $0.33 for the same period compares with $0.42 a year ago.
Weyerhaeuser is expected to post earnings of $0.17 per share for the current quarter, representing a year-over-year change of -29.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -28.1%.
Weyerhaeuser has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
Weyerhaeuser Company (WY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Adjusted EBITDA plunged 54% from the year-ago quarter to $6 million due to lower sales volumes, reduced ASP and higher equipment relocation costs. Guidance For the fourth quarter, OSB revenues are expected to be sequentially lower by approximately 30% (based on Random Lengths’ report published on Oct 7, 2023).
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Louisiana-Pacific Q3 Earnings Beat, Adjusted EBITDA Falls Louisiana-Pacific Corporation or LP, reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate, but net sales missed the same. The company’s adjusted EBITDA grew 6% year over year to $120 million due to improved prices and lower mill-related costs, partially offset by lower sales volumes. Click to get this free report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Weyerhaeuser Company (WY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Louisiana-Pacific Q3 Earnings Beat, Adjusted EBITDA Falls Louisiana-Pacific Corporation or LP, reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate, but net sales missed the same. Net sales of $728 million missed the consensus estimate of $736 million by 1.1% and declined 15% from the prior year, owing to lower segmental sales. Click to get this free report Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report Weyerhaeuser Company (WY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has been about a month since the last earnings report for Louisiana-Pacific (LPX). Adjusted EBITDA came in at $71 million, a 21% decline from $90 million reported a year ago. The company’s adjusted EBITDA grew 6% year over year to $120 million due to improved prices and lower mill-related costs, partially offset by lower sales volumes.
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286e3ba0-38a6-48a0-afd5-cc78a7cb903c
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715166.0
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2023-12-01 00:00:00 UTC
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Trimble (TRMB) Up 10.9% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/trimble-trmb-up-10.9-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for Trimble Navigation (TRMB). Shares have added about 10.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Trimble due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Trimble Q3 Earnings Beat Estimates, Revenues Up Y/Y
Trimble delivered third-quarter 2023 non-GAAP earnings of 68 cents per share, which surpassed the Zacks Consensus Estimate by 15.25% and increased 3% on a year-over-year basis.
Revenues of $957.3 million lagged the Zacks Consensus Estimate by 0.74% but increased 8.2% year over year.
Product revenues (accounting for 46.4% of total revenues) totaled $444 million, down 6% on a year-over-year basis. Subscription and services revenues (53.6% of total revenues) increased 24.5% year over year to $513.3 million.
The top-line growth was driven by solid momentum across the Buildings and Infrastructure, and Transportation segments. However, softness in the Resources and Utilities and Geospatial segments continued to be an overhang.
TRMB generated annualized recurring revenues of $1.94 billion in the reported quarter, which increased 25% on a year-over-year basis (up 13% on an organic basis).
Top Line in Detail
Buildings and Infrastructure revenues (41.3% of total revenues) were $395.1 million, which fell 6% year over year.
Our model estimates for third-quarter Buildings and Infrastructure revenues were pegged at $401.2 million.
Geospatial revenues (18.9% of total revenues) of $180.7 million fell 1.9% year over year.
Our model estimates for third-quarter Geospatial revenues were pegged at $172.8 million.
Resources and Utilities revenues (19.3% of total revenues) of $184.9 million were down 3.5% year over year.
Our model estimates for third-quarter Resources and Utilities revenues were pegged at $184.6 million.
Transportation generated revenues (20.5% of total revenues) were $196.6 million, up 35.2% on a year-over-year basis.
Our model estimates for third-quarter Transportation revenues were pegged at $203.1 million.
Operating Details
In third-quarter 2023, the non-GAAP gross margin came in at 65%, expanding 410 basis points (bps) year over year.
On a non-GAAP basis, operating expenses accounted for 38.7% of revenues, up 160 bps year over year.
Non-GAAP operating margin came in at 26.2%, which expanded 250 bps year over year.
Balance Sheet
At the end of third-quarter 2023, cash and cash equivalents were $216.8 million, down from $273.3 million at the end of second-quarter 2023.
Total debt was $3.05 billion at the end of third-quarter end compared with $3.19 billion at second-quarter end.
Guidance
For fourth-quarter 2023, Trimble expects revenues between $890 million and $930 million. The company expects non-GAAP earnings between 55 cents and 63 cents per share.
For 2023, Trimble expects revenues between $3.757 billion and $3.797 billion. Trimble now expects 2023 non-GAAP earnings between $2.58 and $2.66 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -17.72% due to these changes.
VGM Scores
Currently, Trimble has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Trimble has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Trimble belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, KLA (KLAC), has gained 11.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
KLA reported revenues of $2.4 billion in the last reported quarter, representing a year-over-year change of -12%. EPS of $5.74 for the same period compares with $7.06 a year ago.
For the current quarter, KLA is expected to post earnings of $5.88 per share, indicating a change of -20.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for KLA. Also, the stock has a VGM Score of A.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Trimble Inc. (TRMB) : Free Stock Analysis Report
KLA Corporation (KLAC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent positive trend continue leading up to its next earnings release, or is Trimble due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Trimble Q3 Earnings Beat Estimates, Revenues Up Y/Y Trimble delivered third-quarter 2023 non-GAAP earnings of 68 cents per share, which surpassed the Zacks Consensus Estimate by 15.25% and increased 3% on a year-over-year basis. Top Line in Detail Buildings and Infrastructure revenues (41.3% of total revenues) were $395.1 million, which fell 6% year over year. Click to get this free report Trimble Inc. (TRMB) : Free Stock Analysis Report KLA Corporation (KLAC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Trimble Q3 Earnings Beat Estimates, Revenues Up Y/Y Trimble delivered third-quarter 2023 non-GAAP earnings of 68 cents per share, which surpassed the Zacks Consensus Estimate by 15.25% and increased 3% on a year-over-year basis. Revenues of $957.3 million lagged the Zacks Consensus Estimate by 0.74% but increased 8.2% year over year. Resources and Utilities revenues (19.3% of total revenues) of $184.9 million were down 3.5% year over year.
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Trimble Q3 Earnings Beat Estimates, Revenues Up Y/Y Trimble delivered third-quarter 2023 non-GAAP earnings of 68 cents per share, which surpassed the Zacks Consensus Estimate by 15.25% and increased 3% on a year-over-year basis. Revenues of $957.3 million lagged the Zacks Consensus Estimate by 0.74% but increased 8.2% year over year. Trimble now expects 2023 non-GAAP earnings between $2.58 and $2.66 per share.
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43327867-39f5-4723-a2e7-d2892db27213
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715167.0
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2023-12-01 00:00:00 UTC
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Entergy (ETR) Up 2.8% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/entergy-etr-up-2.8-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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It has been about a month since the last earnings report for Entergy (ETR). Shares have added about 2.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Entergy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Entergy's Q3 Earnings Beat Estimates, Revenues Fall Y/Y
Entergy reported third-quarter 2023 adjusted earnings of $3.27 per share, which surpassed the Zacks Consensus Estimate of $2.97 by 10.1%. The bottom line also improved 15.1% from $2.84 reported in the year-ago quarter.
The company reported GAAP earnings per share of $3.14, up from the year-ago quarter’s level of $2.74.
The year-over-year upside in earnings was driven by the effects of weather on retail volume, the net effect of regulatory actions across the operating companies, lower other operating and maintenance expenses, and higher other income from affiliate preferred investments.
Q3 Revenues
Entergy reported revenues of $3,595.5 million, which missed the Zacks Consensus Estimate of $4,222.8 million by 14.9%. The figure also declined 14.8% from $4,218.6 million reported in the year-ago quarter due to lower revenues from all of its segments.
Segmental Results
Utility: The segment’s quarterly earnings were $3.54 per share compared with $3.29 in the prior-year quarter.
Parent & Other: The segment incurred an adjusted loss of 55 cents per share, wider than the year-ago quarter’s reported adjusted loss of 45 cents.
Highlights of the Release
Operating expenses totaled $2,452.1 million, down 24.9% from $3,263.9 billion recorded in the prior-year quarter.
Operating income amounted to $1,143.3 million, up 19.8% from $954.7 million registered in the year-ago period.
Total interest expenses were $255.4 million, up 12.3% from $227.5 million reported in the comparable period of 2022.
As of Sep 30, 2023, total retail customers served by the company increased 0.8% to 3.02 million.
Financial Highlights
As of Sep 30, 2023, Entergy had cash and cash equivalents of $1,519.8 million compared with $224.2 million as of Dec 31, 2022.
Long-term debt totaled $24.66 billion as of Sep 30, 2023, compared with $23.62 billion as of Dec 31, 2022.
As of Sep 30, 2023, ETR generated cash from operating activities of $3,231 million compared with $1,809.4 million in the comparable period of 2022.
Guidance for 2023
Entergy updated its financial guidance for 2023. The company now expects adjusted earnings in the range of $6.65-$6.85 per share, narrower than the prior guidance of $6.55-$6.85. The Zacks Consensus Estimate for earnings is currently pegged at $6.72 per share, lower than the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -9.46% due to these changes.
VGM Scores
At this time, Entergy has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Entergy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Entergy is part of the Zacks Utility - Electric Power industry. Over the past month, PG&E (PCG), a stock from the same industry, has gained 2.5%. The company reported its results for the quarter ended September 2023 more than a month ago.
PG&E reported revenues of $5.89 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $0.24 for the same period compares with $0.29 a year ago.
For the current quarter, PG&E is expected to post earnings of $0.46 per share, indicating a change of +76.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PG&E. Also, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Entergy Corporation (ETR) : Free Stock Analysis Report
Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. The Zacks Consensus Estimate for earnings is currently pegged at $6.72 per share, lower than the midpoint of the company’s guided range. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Entergy's Q3 Earnings Beat Estimates, Revenues Fall Y/Y Entergy reported third-quarter 2023 adjusted earnings of $3.27 per share, which surpassed the Zacks Consensus Estimate of $2.97 by 10.1%. Parent & Other: The segment incurred an adjusted loss of 55 cents per share, wider than the year-ago quarter’s reported adjusted loss of 45 cents. Click to get this free report Entergy Corporation (ETR) : Free Stock Analysis Report Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Entergy's Q3 Earnings Beat Estimates, Revenues Fall Y/Y Entergy reported third-quarter 2023 adjusted earnings of $3.27 per share, which surpassed the Zacks Consensus Estimate of $2.97 by 10.1%. Q3 Revenues Entergy reported revenues of $3,595.5 million, which missed the Zacks Consensus Estimate of $4,222.8 million by 14.9%. Click to get this free report Entergy Corporation (ETR) : Free Stock Analysis Report Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Entergy's Q3 Earnings Beat Estimates, Revenues Fall Y/Y Entergy reported third-quarter 2023 adjusted earnings of $3.27 per share, which surpassed the Zacks Consensus Estimate of $2.97 by 10.1%. Over the past month, PG&E (PCG), a stock from the same industry, has gained 2.5%. The Zacks Consensus Estimate has changed +10.5% over the last 30 days.
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8288cff3-ce69-41d1-a561-7baf53df79f4
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715168.0
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2023-12-01 00:00:00 UTC
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Why Is Northern Oil and Gas (NOG) Down 3.3% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-northern-oil-and-gas-nog-down-3.3-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for Northern Oil and Gas (NOG). Shares have lost about 3.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Northern Oil and Gas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Northern Oil Q3 Earnings Miss Estimate
Northern Oil and Gas reported third-quarter 2023 adjusted earnings per share (EPS) of $1.73, which lagged the Zacks Consensus Estimate of $1.76. The bottom line also decreased from the year-ago quarter’s level of $1.80. This was primarily due to weaker oil realizations and a 57.4% increase in operating expenses.
Oil and natural gas sales of $511.7 million beat the Zacks Consensus Estimate of $504 million. The top line, however, declined from the prior-year quarter’s figure of $534.1 million.
In good news for investors, Northern Oil instituted a 5% dividend hike compared with the previous quarter’s level. The company declared a regular quarterly cash dividend of 40 cents per share for NOG’s common stock, payable on Dec 1, 2023, to stockholders of record as of Nov 10, 2023. Its adjusted EBITDA rose about 2% sequentially to $385.5 million.
Production & Price Realizations
Third-quarter production (comprising 62% oil) increased 29% from the year-ago level to 102,327 barrels of oil equivalent per day (Boe/d). The figure also surpassed our estimate of 101,012 Boe/d. While oil volume totaled 63,564 barrels per day (up 41% year over year), natural gas (and NGLs) amounted to 232,576 thousand cubic feet per day (up 14%). Our model estimate for oil volume and natural gas production is pegged at 63,683 Boe/d and 223,976 thousand cubic feet per day, respectively.
The average sales price for crude during the third quarter was $79.48 per barrel, indicating a 12% decrease from the prior-year quarter’s level of $90.54. The figure was higher than our expectation of $78.77 per barrel.
The average realized natural gas price was $2.19 per thousand cubic feet compared with $8.43 in the year-earlier period. Our model estimate for the same was pinned at $1.28 per thousand cubic feet.
Costs & Expenses
Total operating expenses in the quarter rose to $271.5 million from $187 million in the year-ago quarter. The figure missed our projection of $273.3 million. This was mainly on account of a surge in depreciation and production expenses.
In particular, the company’s lease operating (or production) expenses decreased to $8.76 per Boe from the year-ago figure of $9.41. Meanwhile, depreciation outlay increased 57% year over year on a per-barrel basis.
Financial Position
Excluding working capital, cash flow from operations went up 29% year over year to $347.0 million, while organic drilling and development capital expenditures totaled $216.6 million. The company’s free cash flow for the quarter amounted to $127.8 million.
As of Sep 30, Northern Oil had $78 million in cash and cash equivalents. It had a long-term debt of $2.1 billion with a debt-to-capitalization of 59.4%.
Guidance
Northern Oil's output is now anticipated in the 96,000-100,000 Boe/d range for 2023 compared with the previous guidance of 97,000-99,000 Boe/d. NOG anticipates growth in its 2023 well spud count in the band of 76-79.
NOG updated its total capital spending projection for 2023 to the $764-$800 million range from the previously estimated band of $790-$820. The company expects this year's oil mix to be in the range of 62-63%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -6.81% due to these changes.
VGM Scores
Currently, Northern Oil and Gas has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Northern Oil and Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent negative trend continue leading up to its next earnings release, or is Northern Oil and Gas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. The company declared a regular quarterly cash dividend of 40 cents per share for NOG’s common stock, payable on Dec 1, 2023, to stockholders of record as of Nov 10, 2023.
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Northern Oil Q3 Earnings Miss Estimate Northern Oil and Gas reported third-quarter 2023 adjusted earnings per share (EPS) of $1.73, which lagged the Zacks Consensus Estimate of $1.76. Production & Price Realizations Third-quarter production (comprising 62% oil) increased 29% from the year-ago level to 102,327 barrels of oil equivalent per day (Boe/d). While oil volume totaled 63,564 barrels per day (up 41% year over year), natural gas (and NGLs) amounted to 232,576 thousand cubic feet per day (up 14%).
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Northern Oil Q3 Earnings Miss Estimate Northern Oil and Gas reported third-quarter 2023 adjusted earnings per share (EPS) of $1.73, which lagged the Zacks Consensus Estimate of $1.76. Oil and natural gas sales of $511.7 million beat the Zacks Consensus Estimate of $504 million. While oil volume totaled 63,564 barrels per day (up 41% year over year), natural gas (and NGLs) amounted to 232,576 thousand cubic feet per day (up 14%).
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A month has gone by since the last earnings report for Northern Oil and Gas (NOG). Northern Oil Q3 Earnings Miss Estimate Northern Oil and Gas reported third-quarter 2023 adjusted earnings per share (EPS) of $1.73, which lagged the Zacks Consensus Estimate of $1.76. Oil and natural gas sales of $511.7 million beat the Zacks Consensus Estimate of $504 million.
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a0370884-fa22-452b-83fd-7132ec1a6e61
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715169.0
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2023-12-01 00:00:00 UTC
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Roku (ROKU) Up 33.5% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/roku-roku-up-33.5-since-last-earnings-report%3A-can-it-continue
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It has been about a month since the last earnings report for Roku (ROKU). Shares have added about 33.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Roku due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ROKU's Q3 Loss Wider Than Expected, Revenues Increase Y/Y
Roku reported third-quarter 2023 loss of $2.33 per share, wider than the Zacks Consensus Estimate of a loss of $2.16. The company had incurred a loss of 88 cents per share in the year-ago quarter.
Revenues increased 19.8% from the year-ago quarter’s level to $912.02 million and beat the consensus mark by 6.37%. Growth of The Roku Channel’s active accounts and streaming hours drove third-quarter performance.
Active account net adds were 2.3 million in the third quarter, taking the total active accounts to 75.8 million globally, reflecting greater engagement and more monetization opportunities.
Roku has become the No. 1 TV streaming platform by hours streamed in the United States, Canada and Mexico. Globally, users streamed a record of 26.7 billion hours in the third quarter, up 1.6 billion hours from the prior quarter.
The average revenue per user declined 7% from the prior-year quarter’s levels to $41.03 (on a trailing 12-month basis).
For the seventh consecutive quarter, The Roku Channel was among the top five channels by both active account reach and streaming hour engagement on the Roku platform in the United States. The Roku Channel’s active accounts are approaching half of all broadband households in the United States.
Quarter Details
Platform revenues (86.3% of revenues) increased 17.9% year over year to $786.8 million through strong contributions from content distribution and video advertising.
Devices revenues (13.7% of revenues) rose 32.9% from the year-ago quarter’s level to $125.2 million.
Roku operating system (OS) was the #1 selling smart TV OS in Mexico for the fourth consecutive quarter. Roku TV program expanded in Germany with its third OEM partner, Coocaa. The program keeps expanding with 20 licensed Roku TV partners globally.
The company was recognized as the Most Innovative Company for 2023 by Fast Company for its work in both hardware and software. This includes content partnership for The Roku Channel and Roku Voice Remote Pro.
The company recently announced a partnership with NBCUniversal. It will boost the quality of content offered by Roku.
Operating Details
Gross margin, as a percentage of total revenues, expanded 80 basis points from the year-ago quarter’s level to 47.7%.
Operating expenses increased 42.6% year over year to $718.6 million. As a percentage of total revenues, the metric expanded to 78.8% from 66.2% in the year-ago quarter.
Research & development increased by 35.9% to $282.2 million, sales & marketing and general & administrative expenses grew 46.9% and 48.3% on a year-over-year basis to $307.7 million and $209.4 million, respectively.
In the third quarter, adjusted EBITDA was $43.4 million compared with negative adjusted EBITDA of $34.4 million in the year-ago quarter.
Operating loss was $349.8 million in the reported quarter compared with an operating loss of $147 million in the year-ago quarter.
Balance Sheet
As of Sep 30, 2023, cash and cash equivalents were $2 billion compared with $1.75 billion as of Jun 30, 2023. As of Sep 30, 2023, Roku had no long-term debt.
Guidance
For fourth-quarter 2023, Roku expects total net revenues of $955 million, total gross profit of roughly $405 million and adjusted EBITDA of $10 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 49.58% due to these changes.
VGM Scores
At this time, Roku has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Roku has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Roku belongs to the Zacks Broadcast Radio and Television industry. Another stock from the same industry, Sirius XM (SIRI), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Sirius XM reported revenues of $2.27 billion in the last reported quarter, representing a year-over-year change of -0.4%. EPS of $0.09 for the same period compares with $0.07 a year ago.
For the current quarter, Sirius XM is expected to post earnings of $0.08 per share, indicating a change of -11.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -4% over the last 30 days.
Sirius XM has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Roku, Inc. (ROKU) : Free Stock Analysis Report
Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Operating Details Gross margin, as a percentage of total revenues, expanded 80 basis points from the year-ago quarter’s level to 47.7%. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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ROKU's Q3 Loss Wider Than Expected, Revenues Increase Y/Y Roku reported third-quarter 2023 loss of $2.33 per share, wider than the Zacks Consensus Estimate of a loss of $2.16. For the seventh consecutive quarter, The Roku Channel was among the top five channels by both active account reach and streaming hour engagement on the Roku platform in the United States. Click to get this free report Roku, Inc. (ROKU) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ROKU's Q3 Loss Wider Than Expected, Revenues Increase Y/Y Roku reported third-quarter 2023 loss of $2.33 per share, wider than the Zacks Consensus Estimate of a loss of $2.16. Operating loss was $349.8 million in the reported quarter compared with an operating loss of $147 million in the year-ago quarter. Click to get this free report Roku, Inc. (ROKU) : Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has been about a month since the last earnings report for Roku (ROKU). Revenues increased 19.8% from the year-ago quarter’s level to $912.02 million and beat the consensus mark by 6.37%. Roku has become the No.
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13f530f4-a35a-49d7-b900-1ebc32c740c2
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715170.0
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2023-12-01 00:00:00 UTC
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RenaissanceRe (RNR) Up 2.8% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/renaissancere-rnr-up-2.8-since-last-earnings-report%3A-can-it-continue
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A month has gone by since the last earnings report for RenaissanceRe (RNR). Shares have added about 2.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is RenaissanceRe due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
RenaissanceRe's Q3 Earnings Beat on Lower Costs
RenaissanceRe reported third-quarter 2023 operating income of $8.33 per share, which outpaced the Zacks Consensus Estimate by 27.4%. A loss of $9.27 per share was reported in the prior-year quarter.
Total operating revenues of $2,064 million advanced 7.1% year over year in the quarter under review. The top line beat the consensus mark by 1.7%.
The quarterly results benefited on the back of strong underwriting results, a substantial decline in expense level and increased returns from the fixed maturity portfolio. However. the upside was partly offset by a declining premium level.
Quarterly Operational Update
Gross premiums written dropped 27.1% year over year to $1,618.4 million. RenaissanceRe’s net premiums earned of $1,755.9 million dipped 0.6% year over year in the third quarter but fell short of the Zacks Consensus Estimate of $1,780 million and our estimate of $1,790.7 million.
Net investment income more than doubled year over year to $329.1 million, which surpassed the consensus mark of $287 million and our estimate of $205.5 million. The metric gained from improved average invested assets and increased returns from its fixed maturity and short-term portfolios. Fee income increased nearly three-fold year over year to $64.6 million on the back of growth in management and performance fee incomes.
Total expenses of $1,410.2 million plunged 43% year over year in the quarter under review due to a significant decline in net claims and claim expenses incurred.
RNR reported an underwriting income of $385.8 million against the prior-year quarter’s underwriting loss of $683.1 million. The combined ratio of 78% improved 6,070 basis points (bps) year over year.
Book value per share surged 41.3% year over year to $133.63 in the third quarter. Annualized operating return on average common equity was 25% while the metric was recorded at a negative figure of 34.8% in the prior-year quarter.
Segmental Update
Property Segment
The segment reported gross premiums written of $511 million, which fell 36.1% year over year. Net premiums earned declined 9.5% year over year to $760.4 million, which missed the Zacks Consensus Estimate of $779 million and our estimate of $795 million. Lower net reinstatement premiums exerted a strain on the unit’s performance.
Underwriting income of $356 million came against the prior-year quarter’s underwriting loss of $722.6 million. Our estimate indicated the segment to incur an underwriting loss of $586 million in the third quarter. The combined ratio was 53.2%, which improved 13,280 bps year over year, attributable to a decline in current accident year net losses and increased prior accident year net favorable development.
Casualty and Specialty Segment
Gross premiums written of the unit fell 22% year over year to $1,107.4 million in the quarter under review, lower than our estimate of $1,511.8 million. Net premiums earned of $995.5 million rose 7.4% year over year but lagged the consensus mark of $1,015 million and our estimate of $995.7 million.
The segment recorded an underwriting income of $29.8 million, which decreased 24.6% year over year. The combined ratio deteriorated 130 bps year over year to 97% in the third quarter due to specialty losses.
Financial Position (as of Sep 30, 2023)
RenaissanceRe exited the third quarter with cash and cash equivalents of $1,195.9 million, which inched up 0.1% from figure at the 2022 end. Total assets of $40.8 billion grew 11.7% from the 2022-end level.
Debt amounted to $1,882.9 million, which soared 60.9% from the figure as of Dec 31, 2022.
Total shareholders’ equity of $7,588.6 climbed 42.5% from the 2022-end figure.
RNR generated net cash from operations of $1,399.1 million in the first nine months of 2023, which jumped 60.7% from the prior-year comparable period.
Capital Deployment Update
RenaissanceRe did not buy back shares in the third quarter. It paid out common dividends of $19.2 million in the quarter under review.
Forward View
In the fourth quarter of 2023, Renaissance Re anticipates management and performance fees to stay in line, excluding any significant losses, with the third-quarter 2023 levels. Management forecasts retained net investment income of around $260 million in the fourth quarter.
Combined ratio in the Casualty and Specialty unit is forecasted to stay in the mid-90s range. Next year, corporate expenses are likely to stay lower than the fourth-quarter 2023 level.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 42.08% due to these changes.
VGM Scores
Currently, RenaissanceRe has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise RenaissanceRe has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
RenaissanceRe is part of the Zacks Insurance - Property and Casualty industry. Over the past month, Cincinnati Financial (CINF), a stock from the same industry, has gained 2.9%. The company reported its results for the quarter ended September 2023 more than a month ago.
Cincinnati Financial reported revenues of $2.27 billion in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $1.66 for the same period compares with $0.73 a year ago.
For the current quarter, Cincinnati Financial is expected to post earnings of $1.83 per share, indicating a change of +44.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.
Cincinnati Financial has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report
Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Forward View In the fourth quarter of 2023, Renaissance Re anticipates management and performance fees to stay in line, excluding any significant losses, with the third-quarter 2023 levels. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Segmental Update Property Segment The segment reported gross premiums written of $511 million, which fell 36.1% year over year. The combined ratio was 53.2%, which improved 13,280 bps year over year, attributable to a decline in current accident year net losses and increased prior accident year net favorable development. Click to get this free report RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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RenaissanceRe’s net premiums earned of $1,755.9 million dipped 0.6% year over year in the third quarter but fell short of the Zacks Consensus Estimate of $1,780 million and our estimate of $1,790.7 million. Net investment income more than doubled year over year to $329.1 million, which surpassed the consensus mark of $287 million and our estimate of $205.5 million. Net premiums earned declined 9.5% year over year to $760.4 million, which missed the Zacks Consensus Estimate of $779 million and our estimate of $795 million.
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A loss of $9.27 per share was reported in the prior-year quarter. RenaissanceRe’s net premiums earned of $1,755.9 million dipped 0.6% year over year in the third quarter but fell short of the Zacks Consensus Estimate of $1,780 million and our estimate of $1,790.7 million. Net premiums earned declined 9.5% year over year to $760.4 million, which missed the Zacks Consensus Estimate of $779 million and our estimate of $795 million.
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0c91f816-7dca-4834-a556-6dbfa4bca394
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715171.0
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2023-12-01 00:00:00 UTC
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Lincoln National (LNC) Up 2.9% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/lincoln-national-lnc-up-2.9-since-last-earnings-report%3A-can-it-continue
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A month has gone by since the last earnings report for Lincoln National (LNC). Shares have added about 2.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lincoln National due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Lincoln Q3 Earnings Miss on Lower Annuities Profits
Lincoln National reported third-quarter 2023 adjusted earnings of 23 cents per share, which missed the Zacks Consensus Estimate by 86.9%. However, the bottom line significantly improved from a loss of $11.49 a year ago.
Adjusted operating revenues grew 5.7% year over year to $4.7 billion. The top line missed the consensus mark by 1.6%.
The weaker-than-expected quarterly results were due to higher commissions, benefits and other expenses. Lower profits from Annuities and Retirement Plan Services affected the bottom line, partially offset by improved Life Insurance and Group Protection businesses.
Costs and Expenses
Total expenses plunged 53.4% year over year to $3.2 billion in the quarter under review and remained below our estimate of $3.6 billion due to the incidence of a significant MRB gain. Benefits of $2.2 billion accounted for 67.9% of the quarter’s overall costs, increased marginally and were above our estimate of $2.1 billion.Commissions and other expenses rose 4.3% year over year to $1.3 billion and were above our model estimate.
Inside LNC’s Segments
The Annuities segment recorded an operating income of $248 million, which decreased 9.8% year over year and missed the estimate by 9%. The metric suffered from increased expenses. Operating revenues of $1.2 billion increased 7.5% year over year and comfortably beat our estimate of $1.1 billion. Total annuity deposits fell 15.3% year over year to $2.7 billion in the quarter under review.
Operating income in the Retirement Plan Services segment came in at $43 million, which fell 9% year over year and missed our estimate of $47.1 million due to an elevated expense level, partly offset by increased fee and spread income. Operating revenues of $327 million grew 3.5% year over year in the third quarter and outpaced our estimate of $318 million. Total deposits tumbled 12.6% year over year to $2.7 billion.
The Life Insurance segment reported an operating income of $173 million in the quarter under review, improving 92% year over year, as year-ago income included massive unfavorable notable items. Operating revenues of $1.7 billion inched up 6.2% year over year and comfortably beat our estimate. Total Life Insurance sales dropped 16% year over year to $144 million. Total deposits of $1.3 billion fell 9.5% year over year in the third quarter.
The Group Protection segment recorded an operating income of $68 million in the quarter under review, which rose from $12 million a year ago but remained lower than our estimate. This significant jump can be attributed to better disability underwriting results. Operating revenues increased 4.1% year over year to $1.4 billion, higher than our estimate of $1.3 billion. Insurance premiums of $1.3 billion rose 4.3% year over year. Sales amounted to $71 million in the segment, which decreased 19% year over year.
Other Operations incurred an operating loss of $113 million in the third quarter, marginally wider than the prior quarter and higher than our estimate of $98.4 million.
Financial Update (as of Sep 30, 2023)
Lincoln National exited the third quarter with cash and invested cash of $2.5 million, which fell from $3.3 billion at 2022-end. Total assets of $338.4 billion increased from $334.2 billion at 2022-end.
Long-term debt amounted to $5.9 billion, which declined from almost $6 billion at 2022-end.
Shareholders’ equity of $3.2 billion decreased from $5.1 billion at 2022-end.
Book value per share, excluding accumulated other comprehensive income, came in at $63.03, which rose 9.7% year over year. Adjusted income from operations ROE came in at 1.4%, which improved from negative 60.7% a year ago.
Capital Deployment Update
Lincoln National returned $76 million in the form of common dividends to its shareholders in the third quarter. It did not make any share repurchases in the quarter under review.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -7.32% due to these changes.
VGM Scores
At this time, Lincoln National has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Lincoln National has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Lincoln National is part of the Zacks Insurance - Life Insurance industry. Over the past month, Voya Financial (VOYA), a stock from the same industry, has gained 4.6%. The company reported its results for the quarter ended September 2023 more than a month ago.
Voya reported revenues of $281 million in the last reported quarter, representing a year-over-year change of -21.1%. EPS of $2.07 for the same period compares with $2.30 a year ago.
Voya is expected to post earnings of $2.10 per share for the current quarter, representing a year-over-year change of -3.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.9%.
Voya has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Lincoln National Corporation (LNC) : Free Stock Analysis Report
Voya Financial, Inc. (VOYA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Lower profits from Annuities and Retirement Plan Services affected the bottom line, partially offset by improved Life Insurance and Group Protection businesses. Capital Deployment Update Lincoln National returned $76 million in the form of common dividends to its shareholders in the third quarter.
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Lincoln Q3 Earnings Miss on Lower Annuities Profits Lincoln National reported third-quarter 2023 adjusted earnings of 23 cents per share, which missed the Zacks Consensus Estimate by 86.9%. Operating income in the Retirement Plan Services segment came in at $43 million, which fell 9% year over year and missed our estimate of $47.1 million due to an elevated expense level, partly offset by increased fee and spread income. Click to get this free report Lincoln National Corporation (LNC) : Free Stock Analysis Report Voya Financial, Inc. (VOYA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Costs and Expenses Total expenses plunged 53.4% year over year to $3.2 billion in the quarter under review and remained below our estimate of $3.6 billion due to the incidence of a significant MRB gain. Benefits of $2.2 billion accounted for 67.9% of the quarter’s overall costs, increased marginally and were above our estimate of $2.1 billion.Commissions and other expenses rose 4.3% year over year to $1.3 billion and were above our model estimate. Operating revenues increased 4.1% year over year to $1.4 billion, higher than our estimate of $1.3 billion.
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A month has gone by since the last earnings report for Lincoln National (LNC). Lincoln Q3 Earnings Miss on Lower Annuities Profits Lincoln National reported third-quarter 2023 adjusted earnings of 23 cents per share, which missed the Zacks Consensus Estimate by 86.9%. Operating revenues increased 4.1% year over year to $1.4 billion, higher than our estimate of $1.3 billion.
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157c9c20-71e4-4aef-a030-5aed3123984d
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715172.0
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2023-12-01 00:00:00 UTC
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Why Is Cognizant (CTSH) Up 10.6% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-cognizant-ctsh-up-10.6-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for Cognizant (CTSH). Shares have added about 10.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cognizant due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Cognizant Q3 Earnings Beat Estimates, Revenues Up Y/Y
Cognizant Technology Solutions reported third-quarter 2023 non-GAAP earnings of $1.16 per share, which beat the Zacks Consensus Estimate by 7.41% but decreased 0.9% year over year.
Revenues of $4.897 billion lagged the consensus mark by 0.14%. The top line increased 0.8% year over year but declined 0.2% at constant currency (cc). On a sequential basis, revenues increased 0.2%.
Acquisitions contributed 110 basis points (bps) to top-line growth.
Bookings increased 9% year over year, which benefited from the mix-shift toward larger deals. Roughly 30% of Cognizant’s third-quarter bookings were large deals and three of these deals exceeded $100 million each. The company continued to witness weakness in smaller, shorter-duration contracts, primarily due to sluggish discretionary spending.
On a trailing twelve-month basis, bookings increased 16% year over year to $26.9 billion, which represented a book-to-bill of approximately 1.4 times.
Top-Line Details
Financial services revenues (30.1% of revenues) decreased 3% year over year (down 4% at cc) to $1.475 billion. The decline was attributed to a challenging demand environment.
Our model estimate for Financial Services revenues was pegged at $1.546 billion.
Health Sciences revenues (28.7% of revenues) were unchanged year over year (down 0.8% at cc) to $1.405 billion. Soft discretionary spending negatively impacted top-line growth.
Our model estimate for Health Services revenues was pegged at $1.45 billion.
Products and Resources revenues (23.9% of revenues) increased 1.9% year over year (up 0.6% at cc) to $1.17 billion. The segment benefited from acquisitions, solid performance from utility clients driven by their grid modernization investments and growth among automotive clients in Europe.
Our model estimate for Products and Resources revenues was pegged at $1.17 billion.
Communications, Media and Technology revenues (17.3% of revenues) were $847 million, which increased 17.3% from the year-ago quarter (up 7.3% at cc). The segment benefited from new acquisitions and contract awards.
Our model estimate for Communications, Media and Technology revenues was pegged at $722.6 million.
Region-wise, revenues from North America decreased 0.6% year over year (down 0.6% at cc) and accounted for 73.5% of total revenues. The decline was primarily attributed to weakness in Financial Services, as well as the Health Sciences segment.
Revenues from Europe increased 9.7% from the year-ago quarter (up 3% at cc) and made up 19.8% of total revenues. Revenues from the U.K. and Continental Europe increased 9% (up 2% at cc) and 10.5% year over year (up 3.7% at cc), respectively.
The Rest of the World revenues decreased 6.8% year over year (down 3.4% at cc) and represented 6.7% of total revenues.
Operating Details
Selling, general & administrative expenses, as a percentage of revenues, decreased 90 bps year over year to 16.4%.
Total headcount at the end of the third quarter was 346,600, down 2,800 year over year but up 1,000 sequentially.
Voluntary attrition - Tech Services, on a trailing 12-month basis, declined to 16.2% from 19.9% in the second quarter of 2023 and 29.2% in the third quarter of 2022.
Cognizant reported a GAAP operating margin of 14%, down 240 bps on a year-over-year basis.
The company incurred $72 million in costs related to the NextGen program, negatively impacting the GAAP operating margin by 150 bps.
Non-GAAP operating margin (adjusted for NextGen charges) of 15.5% contracted 100 bps year over year.
Balance Sheet
Cognizant had cash and short-term investments of $2.37 billion as of Sep 30, 2023 compared with $2.1 billion as of Jun 30, 2023.
As of Sep 30, 2023, the company had a total debt of $647 million, down from $793 million reported as of Jun 30, 2023.
It generated $828 million in cash from operations compared with $36 million in the previous quarter.
Free cash outflow was $755 million compared with free cash flow of $32 million reported in the prior quarter.
In the third quarter of 2023, the company returned $300 million through share repurchases. As of Sep 30, 2023, it had $2.075 billion remaining under the current share repurchase program.
Cognizant raised its dividend payout by 7% to 29 cents per share, payable on Nov 30 to shareholders of record as of Nov 21.
Guidance
The company expects fourth-quarter 2023 revenues between $4.69 billion and $4.82 billion, indicating a decline of 3.1% to an increase of 0.3% (a decline of 4-1.2% on a cc basis). Acquisitions are expected to contribute 100 bps.
In the Financial Services segment, Cognizant continues to expect the challenging macro environment to hurt spending rates, thereby negatively impacting top-line growth.
For 2023, revenues are expected to be $19.3-$19.4 billion, indicating a decline of 0.7% to flat growth both on a reported and cc basis.
Adjusted operating margin for 2023 is expected to be 14.7%. Adjusted earnings for 2023 are expected between $4.39 and $4.42 per share.
The company anticipates interest income of $115 million in 2023. Moreover, it now expects to incur $300 million in NextGen charges, out of which $200 million will be recognized in 2023.
Cognizant expects to return $1.6 billion to shareholders through share repurchases ($1 billion) and regular quarterly dividends.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Cognizant has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cognizant has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. The company incurred $72 million in costs related to the NextGen program, negatively impacting the GAAP operating margin by 150 bps. In the Financial Services segment, Cognizant continues to expect the challenging macro environment to hurt spending rates, thereby negatively impacting top-line growth.
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Cognizant Q3 Earnings Beat Estimates, Revenues Up Y/Y Cognizant Technology Solutions reported third-quarter 2023 non-GAAP earnings of $1.16 per share, which beat the Zacks Consensus Estimate by 7.41% but decreased 0.9% year over year. Non-GAAP operating margin (adjusted for NextGen charges) of 15.5% contracted 100 bps year over year. In the Financial Services segment, Cognizant continues to expect the challenging macro environment to hurt spending rates, thereby negatively impacting top-line growth.
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Cognizant Q3 Earnings Beat Estimates, Revenues Up Y/Y Cognizant Technology Solutions reported third-quarter 2023 non-GAAP earnings of $1.16 per share, which beat the Zacks Consensus Estimate by 7.41% but decreased 0.9% year over year. Top-Line Details Financial services revenues (30.1% of revenues) decreased 3% year over year (down 4% at cc) to $1.475 billion. Products and Resources revenues (23.9% of revenues) increased 1.9% year over year (up 0.6% at cc) to $1.17 billion.
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Cognizant Q3 Earnings Beat Estimates, Revenues Up Y/Y Cognizant Technology Solutions reported third-quarter 2023 non-GAAP earnings of $1.16 per share, which beat the Zacks Consensus Estimate by 7.41% but decreased 0.9% year over year. Top-Line Details Financial services revenues (30.1% of revenues) decreased 3% year over year (down 4% at cc) to $1.475 billion. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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46a8c9ed-fed6-4f4c-a8fd-ca089b78b3bb
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715173.0
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2023-12-01 00:00:00 UTC
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Why Is Paypal (PYPL) Up 4.6% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-paypal-pypl-up-4.6-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for Paypal (PYPL). Shares have added about 4.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Paypal due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
PayPal Q3 Earnings Beat Estimates, Revenues Up Y/Y
PayPal Holdings reported third-quarter non-GAAP earnings of $1.30 per share, which beat the Zacks Consensus Estimate by 6.56% and increased 20.4% year over year.
Net revenues of $7.42 billion exhibited year-over-year growth of 9% on a FX-neutral (FXN) basis and 8.4% on a spot basis. The figure surpassed the Zacks Consensus Estimate by 0.37%.
Total payment volume amounted to $387.701 billion, reflecting year-over-year growth of 15% on a spot basis and 13% on an FXN basis. The figure topped the Zacks Consensus Estimate by 1.53%.
Quarter Details
Growing transaction and other value-added services’ revenues drove top-line growth on a year-over-year basis in the reported quarter.
Transaction revenues were $6.654 billion (90% of net revenues), up 7% year over year. Other value-added services generated revenues of $764 million (10% of net revenues), up 25% year over year.
U.S. net revenues accounted for 57% of total revenues. The top-line figure increased 7% year over year to $4.257 billion.
International revenues increased 10% on a spot basis and 11% on an FXN basis to $3.161 billion.
PayPal witnessed a year-over-year decline of 1% in total active accounts, which came in at 428 million in the quarter under review.
The total number of payment transactions was 6.275 billion, up 11% on a year-over-year basis. Payment transactions per active account on a trailing 12-month basis were 56.6 million, which improved 13% year over year.
The non-GAAP operating margin was 22.2%, contracting 18 bps year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash equivalents and investments were $15.4 billion, up from $9.96 billion as of Jun 30, 2023.
PayPal had a long-term debt balance of $10.6 billion as of Sep 30, 2023 compared with $10.55 billion as of Jun 30, 2023.
PYPL generated $1.3 billion in cash from operations during the reported quarter. Free cash flow was $1.1 billion, much better than the $350 million reported in the previous quarter.
The company returned $1.4 billion to its shareholders by repurchasing 23 million shares.
Guidance
For fourth-quarter 2023, PayPal expects revenues to grow roughly between 6% and 7% on a spot basis and 7% to 8% on an FXN basis.
Non-GAAP earnings are expected to grow roughly 10% year over year to $1.36 per share.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.41 per share, up by a penny over the past 30 days.
For 2023, PayPal raised its guidance for non-GAAP earnings to $4.98 from $4.95, suggesting growth of roughly 21% over 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Paypal has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Paypal has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Paypal belongs to the Zacks Internet - Software industry. Another stock from the same industry, Pinterest (PINS), has gained 10.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Pinterest reported revenues of $763.2 million in the last reported quarter, representing a year-over-year change of +11.5%. EPS of $0.28 for the same period compares with $0.11 a year ago.
For the current quarter, Pinterest is expected to post earnings of $0.50 per share, indicating a change of +72.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.
Pinterest has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent positive trend continue leading up to its next earnings release, or is Paypal due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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PayPal Q3 Earnings Beat Estimates, Revenues Up Y/Y PayPal Holdings reported third-quarter non-GAAP earnings of $1.30 per share, which beat the Zacks Consensus Estimate by 6.56% and increased 20.4% year over year. Quarter Details Growing transaction and other value-added services’ revenues drove top-line growth on a year-over-year basis in the reported quarter. Click to get this free report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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PayPal Q3 Earnings Beat Estimates, Revenues Up Y/Y PayPal Holdings reported third-quarter non-GAAP earnings of $1.30 per share, which beat the Zacks Consensus Estimate by 6.56% and increased 20.4% year over year. Transaction revenues were $6.654 billion (90% of net revenues), up 7% year over year. Click to get this free report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Paypal (PYPL). PayPal Q3 Earnings Beat Estimates, Revenues Up Y/Y PayPal Holdings reported third-quarter non-GAAP earnings of $1.30 per share, which beat the Zacks Consensus Estimate by 6.56% and increased 20.4% year over year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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b5f1b8aa-7411-48cd-9e7b-467211b0b5af
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715174.0
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2023-12-01 00:00:00 UTC
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Zillow (ZG) Up 13.4% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/zillow-zg-up-13.4-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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It has been about a month since the last earnings report for Zillow Group (ZG). Shares have added about 13.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Zillow due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Zillow Group Q3 Earnings Beat on Higher Revenues
Zillow Group reported solid third-quarter 2023 results, wherein the bottom-line and top-line beat the respective Zacks Consensus Estimates. Higher rental revenues, greater loan origination during the quarter led to higher revenues year over year. However, volatile mortgage interest rates, home price fluctuations and low housing inventory hindered the top line growth. The buyout of Follow Up boss will boost collaboration among real estate professionals and customers. It will serve as a platform to build well organized teams, enhance client interactions and expedite deal closings.
Net Income
In the reported quarter, net loss on a GAAP basis was $28 million or a loss of 12 cents per share compared to a net loss of $53 million or 22 cents per share in the prior-year quarter. Higher net sales led to narrower loss year over year.
On a non-GAAP basis, the company’s net income stood at $83 million or 33 cents per share compared with $99 million or 38 cents per share in the year-ago quarter. Non-GAAP net income for the reported quarter beat the Zacks Consensus Estimate by 12 cents.
Revenues
Quarterly net sales aggregated $496 million compared with $483 million reported in the year-ago quarter. Declining residential revenues impeded the top line. The top line surpassed the Zacks consensus estimate of $484 million.
Residential revenues were $362 million, down 3% year over year from $372 million reported in the year-ago quarter. Net sales from this vertical surpassed the Zacks consensus estimate of $357.97 million. Despite the year over year decline net sales came at the higher end of the management’s expectations. Faster than industry growth of premier agent partners connections is a positive. The company’s continuous efforts to improve customer funnel, better align with evolving customer demand supported the top line.
Rental revenues in the quarter improved by 34% year over year to $99 million. Segment top line beat the Zacks consensus estimate of $87.57 million. The uptick was driven by growth in both multi and single-family listings.
Net sales from Mortgage segment registered a net sale of $24 million down 8% year over year. Increasing interest rates negatively affected the revenues from this vertical. However, a staggering 88% growth in loan origination volume partially reversed the declining trends.
Other Details
Gross profit during the quarter stood at $386 million compared with $394 million in the prior-year quarter. The decline was primarily due to higher cost of revenues induced by website building costs and development of new products. Operating expenses during the quarter were $439 million, down from $445 million in the year-ago quarter. Adjusted EBITDA was $107 million, down from $130 million in the prior-year quarter with respective margins of 22% and 27%. Despite the year-over-year decline, adjusted EBITDA figure was above the midpoint of the company guidance backed by higher revenues and better cost management.
Cash Flow & Liquidity
Zillow Group generated $268 million in cash from operating activities in the first nine months of 2023 compared with $4,420 million in the prior-year period. As of Sep 30, 2023, the company had $1,846 million in cash and cash equivalents with $119 million of lease liabilities, net of current portion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -21.08% due to these changes.
VGM Scores
At this time, Zillow has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Zillow has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zillow Group, Inc. (ZG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. However, volatile mortgage interest rates, home price fluctuations and low housing inventory hindered the top line growth. Despite the year-over-year decline, adjusted EBITDA figure was above the midpoint of the company guidance backed by higher revenues and better cost management.
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Net Income In the reported quarter, net loss on a GAAP basis was $28 million or a loss of 12 cents per share compared to a net loss of $53 million or 22 cents per share in the prior-year quarter. On a non-GAAP basis, the company’s net income stood at $83 million or 33 cents per share compared with $99 million or 38 cents per share in the year-ago quarter. Revenues Quarterly net sales aggregated $496 million compared with $483 million reported in the year-ago quarter.
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Net Income In the reported quarter, net loss on a GAAP basis was $28 million or a loss of 12 cents per share compared to a net loss of $53 million or 22 cents per share in the prior-year quarter. Revenues Quarterly net sales aggregated $496 million compared with $483 million reported in the year-ago quarter. Residential revenues were $362 million, down 3% year over year from $372 million reported in the year-ago quarter.
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Zillow Group Q3 Earnings Beat on Higher Revenues Zillow Group reported solid third-quarter 2023 results, wherein the bottom-line and top-line beat the respective Zacks Consensus Estimates. Revenues Quarterly net sales aggregated $496 million compared with $483 million reported in the year-ago quarter. Net sales from this vertical surpassed the Zacks consensus estimate of $357.97 million.
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c647dc9a-1508-4018-a831-91130b63f46b
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715175.0
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2023-12-01 00:00:00 UTC
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Why Is American International Group (AIG) Up 2.3% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-american-international-group-aig-up-2.3-since-last-earnings-report
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nan
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nan
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It has been about a month since the last earnings report for American International Group (AIG). Shares have added about 2.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American International Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
AIG Beats Q3 Earnings on Commercial Lines Strength & Lower Costs
American International Group reported third-quarter 2023 adjusted earnings per share (EPS) of $1.61, which outpaced the Zacks Consensus Estimate by 3.9%. The bottom line jumped 92% year over year.
Operating revenues inched up 0.3% year over year to $11.4 billion in the quarter under review. The top line fell short of the consensus mark by 10%.
The quarterly results were aided by strong underwriting results in the Commercial Lines business of the General Insurance unit, a declining expense level and higher net investment income. However, the upside was partly offset by continued incidence of catastrophe losses as well as reduced sales of Variable Annuities and pension risk transfer deals in the Life and Retirement unit.
Quarterly Operational Update
Premiums fell 7.5% year over year to $7,244 million in the third quarter. Total net investment income of $3,556 million climbed 33% year over year and beat the consensus mark of $3,236 million as well as our estimate of $3,056.9 million. The metric benefited on the back of improved reinvestment rates and higher alternative investment income.
Total benefits, losses and expenses of American International declined 8.8% year over year to $9,206 million. The decrease was due to a decline in policyholder benefits and losses incurred.
Adjusted return on common equity of 8.5% improved 390 basis points (bps) year over year in the quarter under review.
Segmental Performances
General Insurance
Net premiums written of the segment amounted to $6,462 million in the third quarter, which grew 1% year over year. The metric was aided by rate increases, strong retention rates and new business growth in Lexington and Retail Property. However, the metric lagged the Zacks Consensus Estimate of $7,376 million and our estimate of $6,919.9 million.
Underwriting income increased nearly four-fold year over year to $611 million in the quarter under review, attributable to strength in North America Commercial Lines business. Catastrophe losses totaled $462 million, which stemmed from Lahaina Wildfire and Hurricane Idalia. The unit’s combined ratio of 90.5% improved 680 bps year over year due to an improvement in the loss ratio.
Adjusted pre-tax income was $1,367 million, which soared 82% year over year and surpassed the consensus mark of $1,127 million and our estimate of $916.4 million. The metric was driven by improved underwriting income, increased favorable prior-year development and higher net investment income.
Life and Retirement
The segment’s premiums and fees were recorded at $1,512 million in the third quarter, which decreased 29% year over year. Premiums declined due to reduced pension risk transfer volumes. Premiums and deposits advanced 4% year over year to $9,248 million.
Adjusted revenues of the unit were $4,180 million, which slid 3.5% year over year in the quarter under review and fell short of the Zacks Consensus Estimate of $5,327 million.
The unit reported an adjusted pre-tax income of $971 million, which rose 24% year over year on the back of higher base portfolio yields, improved alternative investment income and solid Fixed Index Annuities sales. Yet, the metric missed the consensus mark of $1,003 million and our estimate of $1,087.6 million.
Financial Position (as of Sep 30, 2023)
American International exited the third quarter with a cash balance of $1,994 million, which slipped 2.4% from the 2022-end level. Total assets of $521.5 billion dipped 0.1% from the figure at 2022 end.
Short and long-term debt amounted to $21.3 billion, up 0.2% from the figure as of Dec 31, 2022.
Total equity of $43.2 billion dipped 0.6% from the 2022-end level. Total debt and preferred stock to total capital was 33.7% at the third-quarter end.
Adjusted book value per share was $78.17, which grew 4.4% year over year in the quarter under review.
Capital Deployment Update
American International rewarded its shareholders with share buybacks of $785 million and paid common dividends worth $254 million.
Business Update
On Nov 1, 2023, American International completed the divestiture of Validus Re to RenaissanceRe and received a cash consideration of $3.3 billion as well as around $275 million in RNR stock. The divestiture deal was announced in May 2023 and as expected, the transaction was closed in the fourth quarter of 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -6.31% due to these changes.
VGM Scores
At this time, American International Group has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, American International Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
American International Group is part of the Zacks Insurance - Multi line industry. Over the past month, Everest Group (EG), a stock from the same industry, has gained 7.5%. The company reported its results for the quarter ended September 2023 more than a month ago.
Everest Group reported revenues of $4.02 billion in the last reported quarter, representing a year-over-year change of +25.6%. EPS of $14.14 for the same period compares with -$5.28 a year ago.
Everest Group is expected to post earnings of $14.86 per share for the current quarter, representing a year-over-year change of +21.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.8%.
Everest Group has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American International Group, Inc. (AIG) : Free Stock Analysis Report
Everest Group, Ltd. (EG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. However, the upside was partly offset by continued incidence of catastrophe losses as well as reduced sales of Variable Annuities and pension risk transfer deals in the Life and Retirement unit. Business Update On Nov 1, 2023, American International completed the divestiture of Validus Re to RenaissanceRe and received a cash consideration of $3.3 billion as well as around $275 million in RNR stock.
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AIG Beats Q3 Earnings on Commercial Lines Strength & Lower Costs American International Group reported third-quarter 2023 adjusted earnings per share (EPS) of $1.61, which outpaced the Zacks Consensus Estimate by 3.9%. The quarterly results were aided by strong underwriting results in the Commercial Lines business of the General Insurance unit, a declining expense level and higher net investment income. Click to get this free report American International Group, Inc. (AIG) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Total net investment income of $3,556 million climbed 33% year over year and beat the consensus mark of $3,236 million as well as our estimate of $3,056.9 million. Adjusted pre-tax income was $1,367 million, which soared 82% year over year and surpassed the consensus mark of $1,127 million and our estimate of $916.4 million. Adjusted revenues of the unit were $4,180 million, which slid 3.5% year over year in the quarter under review and fell short of the Zacks Consensus Estimate of $5,327 million.
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AIG Beats Q3 Earnings on Commercial Lines Strength & Lower Costs American International Group reported third-quarter 2023 adjusted earnings per share (EPS) of $1.61, which outpaced the Zacks Consensus Estimate by 3.9%. Total net investment income of $3,556 million climbed 33% year over year and beat the consensus mark of $3,236 million as well as our estimate of $3,056.9 million. Total benefits, losses and expenses of American International declined 8.8% year over year to $9,206 million.
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ca9dc3e7-f04e-4ff2-9e4f-b353d87c0123
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715176.0
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2023-12-01 00:00:00 UTC
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Why Is Murphy USA (MUSA) Down 0.4% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-murphy-usa-musa-down-0.4-since-last-earnings-report
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nan
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It has been about a month since the last earnings report for Murphy USA (MUSA). Shares have lost about 0.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Murphy USA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Murphy USA’s Q3 Earnings Beat Estimate
Murphy USA announced third-quarter 2023 earnings per share of $7.69, which beat the Zacks Consensus Estimate of $6.08. The outperformance reflects higher-than-expected petroleum product sales.
However, the company’s bottom line fell from the year-ago adjusted profit of $9.28 due to a fall in the retail gasoline price and fuel contribution.
Meanwhile, Murphy USA’s operating revenues of $5.8 billion fell 6.4% year over year and came below the consensus mark by $31 million.
Merchandise sales, at $1.1 billion, rose 2.8% year over year and outperformed our estimate of $1 billion. Revenues from petroleum product sales came in at $4.7 billion, ahead of our estimate of $4.5 billion but down 8.3% from the third quarter of 2022.
In important news for investors, MUSA’s board of directors recently declared a quarterly cash dividend of 41 cents per share to its common shareholders of record on Nov 6. The payout, which represents a 5.1% sequential increase, will be made on Dec 1.
Key Takeaways
MUSA’s total fuel contribution fell 10.5% year over year to $419 million due to margin contraction. Moreover, total fuel contribution (including retail fuel margin plus product supply and wholesale results) came in at 34.5 cents per gallon, 8.2% lower than the third quarter of 2022.
Retail fuel contribution decreased 28.8% year over year to $348.6 million as margins, at 28.7 cents per gallon, fell 27% from the corresponding period of 2022. Retail gallons fell 2.5% from the year-ago period to 1,214.9 million in the quarter under review and missed our projection of 1,271.9 million. Volumes on an SSS basis (or fuel gallons per store) dropped 4% from the third quarter of 2022 to 241.7 thousand. Meanwhile, the average retail gasoline price during the quarter came in at $3.41 per gallon, down from $3.67 per gallon a year ago.
Contribution from Merchandise increased 3% to $211.8 million on higher sales and a marginal rise in unit margins, from 20% a year ago to 20.1% in the third quarter of 2023. On an SSS basis, total merchandise contribution was up 1.2% year over year, primarily on the back of 3.1% higher tobacco margins. Meanwhile, merchandise sales increased 1% on an SSS basis, again due to an increase in tobacco sales.
The company’s monthly fuel gallons were down 4.2% from the prior-year period, though merchandise sales increased 1.4% on an average per store month basis.
Balance Sheet
As of Sep 30, Murphy USA — which opened three new retail locations in the quarter to take its store count to 1,724 — had cash and cash equivalents of $124.8 million and long-term debt (including lease obligations) of $1.8 billion, with a debt-to-capitalization of 68.1%.
During the quarter, MUSA bought back shares worth $65.3 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 11.01% due to these changes.
VGM Scores
Currently, Murphy USA has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Murphy USA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Murphy USA belongs to the Zacks Oil and Gas - Refining and Marketing industry. Another stock from the same industry, Phillips 66 (PSX), has gained 9.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Phillips 66 reported revenues of
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. However, the company’s bottom line fell from the year-ago adjusted profit of $9.28 due to a fall in the retail gasoline price and fuel contribution. In important news for investors, MUSA’s board of directors recently declared a quarterly cash dividend of 41 cents per share to its common shareholders of record on Nov 6.
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Murphy USA’s Q3 Earnings Beat Estimate Murphy USA announced third-quarter 2023 earnings per share of $7.69, which beat the Zacks Consensus Estimate of $6.08. Key Takeaways MUSA’s total fuel contribution fell 10.5% year over year to $419 million due to margin contraction. Click to get this free report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Phillips 66 (PSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Murphy USA’s Q3 Earnings Beat Estimate Murphy USA announced third-quarter 2023 earnings per share of $7.69, which beat the Zacks Consensus Estimate of $6.08. Meanwhile, Murphy USA’s operating revenues of $5.8 billion fell 6.4% year over year and came below the consensus mark by $31 million. Click to get this free report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Phillips 66 (PSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has been about a month since the last earnings report for Murphy USA (MUSA). Meanwhile, merchandise sales increased 1% on an SSS basis, again due to an increase in tobacco sales. The company’s monthly fuel gallons were down 4.2% from the prior-year period, though merchandise sales increased 1.4% on an average per store month basis.
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58fba2f6-99f0-41da-8903-271f567307aa
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715177.0
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2023-12-01 00:00:00 UTC
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Why Is Markel Group (MKL) Up 10.6% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-markel-group-mkl-up-10.6-since-last-earnings-report
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nan
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It has been about a month since the last earnings report for Markel Group (MKL). Shares have added about 10.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Markel Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Markel Q2 Earnings Top Estimates on Higher Premiums
Markel Group Inc. reported second-quarter 2023 net operating earnings per share of $22.43, which beat the Zacks Consensus Estimate by 17%. The bottom line increased 62.7% year over year. Markel witnessed higher earned premiums and improved net investment income, partially offset by higher current accident year loss ratio and expense ratio.
Quarterly Operational Update
Total operating revenues of $3.6 billion missed the Zacks Consensus Estimate by 2.2%. The top line rose 9.2% year over year on higher earned premiums, products revenues, services and other revenues and higher net investment income.
Earned premiums increased 16.9% year over year to $2.03 billion in the quarter. The increase was due to higher gross premium volume in recent periods, driven by growth within Insurance segment. The figure matched our estimate as well as Zacks Consensus Estimate.
Net investment income increased 75.3% year over year to $169.6 million in the second quarter. The increase was due to higher interest income on short-term investments and cash equivalents due to higher short-term interest rates. The figure was lower than our estimate of $170.8 million but beat the Zacks Consensus Estimate of $167 million.
Total operating expenses of Markel increased 6.8% year over year to about $3.1 billion, primarily due to higher losses and loss adjustment expenses, underwriting, acquisition and insurance expenses and services and other expenses. The figure was lower than our estimate of $3.2 billion.
MKL’s combined ratio deteriorated 180 basis points (bps) year over year to 92.8 in the reported quarter, attributable to a higher current accident year loss ratio and expense ratio in 2023, partially offset by the impact of more favorable development on prior accident years loss reserves. The Zacks Consensus Estimate was pegged at 94.
Segment Update
Insurance: Gross premium increased 10% year over year to $2.4 billion. The uptick was driven by more favorable rates and new business growth within personal lines, marine and energy, property and general liability product lines. It was partially offset by lower premium volume within professional liability product lines. The figure was lower than our estimate of $3.1 billion. Underwriting profit came in at $134.6 million, down 19% year over year. The combined ratio deteriorated 300 bps year over year to 92.4 due to increase in favorable development.
Reinsurance: Gross premiums decreased 3% year over year to $281.1 million. The decrease was primarily attributable to lower gross premiums with professional liability product lines, partially offset by higher gross premiums within MKL’s marine and energy product lines. The figure was lower than our estimate of $428.3 million. Underwriting profit of $15.1 million surged nearly four-fold year over year. The combined ratio improved 420 bps year over year to 94.3 in the second quarter due to modest favorable development across several product lines and accident years.
Markel Ventures: Operating revenues of $1.38 billion improved 1.8% year over year. The growth was driven by higher revenues at construction services businesses and one of equipment manufacturing businesses, primarily due to increased demand and higher prices. It was partially offset by the impact of decreased demand at other consumer and building products businesses and consulting services businesses. Operating income of $150.2 million increased 40% year over year, driven by products businesses, particularly consumer and building products businesses, which had higher margins in 2023.
Financial Update
Markel exited the second quarter with investments, cash and cash equivalents and restricted cash and cash equivalents of $28.7 billion as of Jun 30, 2023, up 4.7% from 2022 end.
The debt balance increased 3.2% year over year to $4.4 billion as of Jun 30, 2022. The debt-to-capital ratio was 21% as of Jun 30, 2023, reflecting an improvement of 300 basis points from 2022 end. The decrease reflects a decline in senior long-term debt, primarily attributable to the retirement of 3.625% unsecured senior notes as of Mar 30, 2023, as well as an increase in shareholders' equity.
Book value per share increased 9.3% from year-end 2022 to $1,023.23 as of Jun 30, 2023. Net cash provided by operating activities was $1 billion in the second quarter of 2023, up 9.5% year over year. The increase was primarily due to an increase in operating cash flows from Markel Ventures, partially offset by a $125.1 million payment made to complete a retroactive reinsurance transaction to cede the portfolio of policies comprised of liabilities related to run-off book of U.K. motor casualty business.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Markel Group has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Markel Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Markel Group belongs to the Zacks Diversified Operations industry. Another stock from the same industry, Carlisle (CSL), has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Carlisle reported revenues of $1.26 billion in the last reported quarter, representing a year-over-year change of -29.8%. EPS of $4.68 for the same period compares with $5.66 a year ago.
Carlisle is expected to post earnings of $3.38 per share for the current quarter, representing a year-over-year change of -13.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Carlisle. Also, the stock has a VGM Score of C.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Markel Group Inc. (MKL) : Free Stock Analysis Report
Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Markel Group Inc. reported second-quarter 2023 net operating earnings per share of $22.43, which beat the Zacks Consensus Estimate by 17%. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Markel witnessed higher earned premiums and improved net investment income, partially offset by higher current accident year loss ratio and expense ratio. MKL’s combined ratio deteriorated 180 basis points (bps) year over year to 92.8 in the reported quarter, attributable to a higher current accident year loss ratio and expense ratio in 2023, partially offset by the impact of more favorable development on prior accident years loss reserves. The decrease was primarily attributable to lower gross premiums with professional liability product lines, partially offset by higher gross premiums within MKL’s marine and energy product lines.
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The top line rose 9.2% year over year on higher earned premiums, products revenues, services and other revenues and higher net investment income. Total operating expenses of Markel increased 6.8% year over year to about $3.1 billion, primarily due to higher losses and loss adjustment expenses, underwriting, acquisition and insurance expenses and services and other expenses. MKL’s combined ratio deteriorated 180 basis points (bps) year over year to 92.8 in the reported quarter, attributable to a higher current accident year loss ratio and expense ratio in 2023, partially offset by the impact of more favorable development on prior accident years loss reserves.
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It has been about a month since the last earnings report for Markel Group (MKL). Markel Group Inc. reported second-quarter 2023 net operating earnings per share of $22.43, which beat the Zacks Consensus Estimate by 17%. Earned premiums increased 16.9% year over year to $2.03 billion in the quarter.
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715178.0
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2023-12-01 00:00:00 UTC
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Core Laboratories (CLB) Down 16.7% Since Last Earnings Report: Can It Rebound?
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DCOMP
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https://www.nasdaq.com/articles/core-laboratories-clb-down-16.7-since-last-earnings-report%3A-can-it-rebound
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nan
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It has been about a month since the last earnings report for Core Laboratories (CLB). Shares have lost about 16.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Core Laboratories due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Core Laboratories Q3 Earnings Top, Revenues Miss
Core Laboratories reported third-quarter 2023 adjusted earnings of 22 cents per share, which beat the Zacks Consensus Estimate of 18 cents. The bottom line also improved from the year-ago quarter’s reported figure of 18 cents. This could be attributed to improved performance at the Reservoir Description segment.
However, this oilfield service provider’s revenues of $125.3 million missed the Zacks Consensus Estimate of $129 million due to underperformance at the Production Enhancement segment. The top line, however, declined 0.6% from the year-ago quarter’s level of $126 million.
Core Laboratories reported first-quarter 2023 adjusted earnings of 19 cents per share, which beat the Zacks Consensus Estimate of 17 cents. The bottom line also improved from the year-ago quarter’s reported figure of 8 cents. This can be attributed to higher-than-expected revenues from Reservoir Description. Core Labs’ adjusted revenues of $128.4 million beat the Zacks Consensus Estimate of $126 million by 1.9%. The top line also rose from the year-ago quarter’s recorded figure of $115.3 million. This can be attributed to the Reservoir Description segment’s impressive performance.
Segmental Performance
Reservoir Description: Revenues at this segment increased about 7.7% to $85.1 million from $79 million in the third quarter of 2022. The top line missed our projection of $85.2 million. Operating income increased from $9.8 million in the year-ago period to $13 million and also beat our estimate of $8.1 million. This was due to increased client activity across CLB's global network, as well as increased demand for analytical datasets from CLB's proprietary geological and petrophysical studies library.
Production Enhancement: This segment’s revenues decreased 14.5% to $40.2 million from $47 million in the prior year quarter. The same lagged our estimate of $44 million. Operating income of $1.5 million missed our projection of $4.2 million due to a decrease in U.S. onshore well completion activity. The figure also deteriorated from the year-ago quarter’s level of $4.4 million.
Financials and Dividends
As of Sep 30, 2023, Core Laboratories had cash and cash equivalents of $16.6 million and long-term debt of $177.9 million. The company’s debt-to-capitalization was 43.7%.
Operating cash totaled $5.4 million while capital expenditure amounted to $3.5 million.
CLB’s board of directors approved a regular quarterly dividend of a cent per share on the company's common stock, payable on Dec 4, 2023, to all shareholders of record as of Nov 13, 2023.
2023 Outlook
For the fourth quarter of 2023, revenues are anticipated in the range of $125-$132 million. Operating income is estimated in the $13.8-$17.3 million band. EPS is expected between 17 cents and 23 cents. The company anticipates a 20% tax rate for the same time frame.
Reservoir Description revenue is expected to be in the range of $84-$86 million for the fourth quarter of 2023, with an operating income of $11.6-$13.3 million. Production Enhancement revenue is estimated to be in the band of $41-$46 million during the same time frame, with an operating income of $2.2-$4 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Core Laboratories has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Core Laboratories has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Core Laboratories Inc. (CLB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. CLB’s board of directors approved a regular quarterly dividend of a cent per share on the company's common stock, payable on Dec 4, 2023, to all shareholders of record as of Nov 13, 2023. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Core Laboratories Q3 Earnings Top, Revenues Miss Core Laboratories reported third-quarter 2023 adjusted earnings of 22 cents per share, which beat the Zacks Consensus Estimate of 18 cents. However, this oilfield service provider’s revenues of $125.3 million missed the Zacks Consensus Estimate of $129 million due to underperformance at the Production Enhancement segment. Core Laboratories reported first-quarter 2023 adjusted earnings of 19 cents per share, which beat the Zacks Consensus Estimate of 17 cents.
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Core Laboratories Q3 Earnings Top, Revenues Miss Core Laboratories reported third-quarter 2023 adjusted earnings of 22 cents per share, which beat the Zacks Consensus Estimate of 18 cents. Core Labs’ adjusted revenues of $128.4 million beat the Zacks Consensus Estimate of $126 million by 1.9%. Operating income increased from $9.8 million in the year-ago period to $13 million and also beat our estimate of $8.1 million.
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It has been about a month since the last earnings report for Core Laboratories (CLB). Core Laboratories Q3 Earnings Top, Revenues Miss Core Laboratories reported third-quarter 2023 adjusted earnings of 22 cents per share, which beat the Zacks Consensus Estimate of 18 cents. Reservoir Description revenue is expected to be in the range of $84-$86 million for the fourth quarter of 2023, with an operating income of $11.6-$13.3 million.
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0a545b0b-8a2d-4349-9b29-df55e28e78c3
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715179.0
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2023-12-01 00:00:00 UTC
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Why Is Spirit Aerosystems (SPR) Up 8.7% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-spirit-aerosystems-spr-up-8.7-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for Spirit Aerosystems (SPR). Shares have added about 8.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Spirit Aerosystems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Spirit AeroSystems Q3 Loss Narrows, Revenues Rise Y/Y
Spirit AeroSystems Holdingsreported a third-quarter 2023 adjusted loss of $1.42 per share, narrower than the Zacks Consensus Estimate of a loss of $1.56 per share. However, the loss widened from the year-ago quarter’s reported loss of $1.21 cents per share.
Barring one-time adjustments, Spirit AeroSystems recorded a GAAP loss of $1.94 per share compared with a loss of $1.22 in the prior-year period.
Highlights of the Release
Total revenues of $1,439 million missed the Zacks Consensus Estimate of $1,481 million by 0.2%. However, the top line rose 13% on a year-over-year basis, driven by higher production deliveries on most Commercial programs and higher Defense and Space and Aftermarket revenues.
The company’s backlog at the end of the third quarter totaled $42.2 billion, up from the prior quarter’s level of $40.5 billion.
Segmental Performance
Commercial Segment: Revenues in the segment increased 9.8% year over year to $1,136.4 million. The upside was due to higher production across most programs. The operating loss widened to $82.1 million from the operating profit of $45 million in the year-ago period.
Defense & Space:The segment recorded revenues of $205.7 million, up 27.2% year over year, driven by increased activity on development programs and higher production on the KC-46 Tanker program.
The operating income decreased 46.7% to $9.8 million from $18.4 million in the prior-year quarter.
Aftermarket:The top line improved 21% year over year to $96.8 million, driven by higher spare part sales.
The operating profit decreased 8.2% year over year to $17.9 million.
Operational Highlights
Total operating costs and expenses rose 23.6% year over year to $1,572.6 million due to the higher cost of sales and restructuring costs.
SPR’s operating loss totaled $133.7 million compared to the operating profit of $4.5 million in the prior-year period. This increase was mainly due to higher changes in estimates and excess capacity costs recognized in the third quarter of 2023.
Financial Position
As of Sep 28, 2023, Spirit AeroSystems had $374.1 million in cash and cash equivalents compared with $658.6 million as of Dec 31, 2022.
The long-term debt as of Sep 28, 2023 totaled $3,811 million compared with $3,814.9 million as of Dec 31, 2022.
Cash outflow from operating activities amounted to $339.5 million during the first nine months of 2023 compared with $367.4 million a year ago.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 72.4% due to these changes.
VGM Scores
Currently, Spirit Aerosystems has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Spirit Aerosystems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Spirit Aerosystems belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, Teledyne Technologies (TDY), has gained 8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Teledyne reported revenues of $1.4 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $5.05 for the same period compares with $4.54 a year ago.
For the current quarter, Teledyne is expected to post earnings of $5.06 per share, indicating a change of +2.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
Teledyne has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Spirit Aerosystems Holdings, Inc. (SPR) : Free Stock Analysis Report
Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent positive trend continue leading up to its next earnings release, or is Spirit Aerosystems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Spirit AeroSystems Q3 Loss Narrows, Revenues Rise Y/Y Spirit AeroSystems Holdingsreported a third-quarter 2023 adjusted loss of $1.42 per share, narrower than the Zacks Consensus Estimate of a loss of $1.56 per share. Defense & Space:The segment recorded revenues of $205.7 million, up 27.2% year over year, driven by increased activity on development programs and higher production on the KC-46 Tanker program. Click to get this free report Spirit Aerosystems Holdings, Inc. (SPR) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Spirit AeroSystems Q3 Loss Narrows, Revenues Rise Y/Y Spirit AeroSystems Holdingsreported a third-quarter 2023 adjusted loss of $1.42 per share, narrower than the Zacks Consensus Estimate of a loss of $1.56 per share. Operational Highlights Total operating costs and expenses rose 23.6% year over year to $1,572.6 million due to the higher cost of sales and restructuring costs. Click to get this free report Spirit Aerosystems Holdings, Inc. (SPR) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Spirit Aerosystems (SPR). SPR’s operating loss totaled $133.7 million compared to the operating profit of $4.5 million in the prior-year period. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
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11013cad-bddc-474c-8cad-7f9b3b58f8a4
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715180.0
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2023-12-01 00:00:00 UTC
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Williams Companies, Inc. (The) (WMB) Up 2.8% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/williams-companies-inc.-the-wmb-up-2.8-since-last-earnings-report%3A-can-it-continue
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nan
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It has been about a month since the last earnings report for Williams Companies, Inc. (The) (WMB). Shares have added about 2.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Williams Companies, Inc. (The) due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Williams Q3 Earnings Outpace Estimate, Sales miss
The Williams Companies reported third-quarter 2023 adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 40 cents. The bottom line declined from the year-ago period’s reported figure of 48 cents due to lower-than-expected contributions from two major segments — West and Gas, and NGL Marketing Services.
Williams’ revenues of $2.56 billion missed the Zacks Consensus Estimate of $2.57 billion due to lower product sales. The top line also decreased from the year-ago quarter’s reported figure of $3.02 billion.
Key Takeaways
Adjusted EBITDA totaled $1.65 billion in the quarter under review, up 0.9% year over year. The figure also beat our estimate of $1.51 billion. Cash flow from operations amounted to $1.23 billion, down 17.4% from that recorded in the corresponding quarter of 2022.
Segmental Analysis
Transmission & Gulf of Mexico: The segment reported an adjusted EBITDA of $754 billion, up 12.4% from the year-ago quarter’s level. This was largely driven by higher service revenues. The reported figure also outpaced our prediction of $513.5 million.
West: This segment registered an adjusted EBITDA of $315 million, down 16.4% from $377 million recorded in the year-earlier quarter. The figure, however, beat our estimate of $229 million. This underperformance can be attributed to lower NYMEX-based rates in the Barnett.
Northeast G&P: Adjusted EBITDA for this segment totaled $485 million, up 4.5% from the prior-year quarter’s level of $464 million. The figure also beat our estimate of $430.5 million. This uptick in performance can be attributed to increased gathering rates and higher volumes.
Gas & NGL Marketing Services: This unit generated an adjusted EBITDA profit of $16 million, down from the prior-year quarter’s level of $38 million. The reported figure missed our projection of $274.1 million.
Costs, Capex & Balance Sheet
Total costs and expenses were $1.57 billion in the reported quarter.
Total capital expenditure was $690 million compared with $841 million a year ago. As of Sep 30, 2023, the company had cash and cash equivalents of $2.1 billion, and a long-term debt of $22.8 billion, with a debt-to-capitalization of 61.4%.
Guidance
WMB expects full-year adjusted EBITDA to be in the range of $6.6-$6.8 billion. Growth capital spending is anticipated to be in the band of $1.6-$1.9 billion. Williams expects to achieve a leverage ratio mid-point of 3.65. The guidance for 2023 dividend increased 5.3% on an annualized basis to $1.79 per share from $1.70 in 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Williams Companies, Inc. (The) has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Williams Companies, Inc. (The) has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Williams Companies, Inc. (The) is part of the Zacks Oil and Gas - Production and Pipelines industry. Over the past month, MPLX LP (MPLX), a stock from the same industry, has gained 2.1%. The company reported its results for the quarter ended September 2023 more than a month ago.
MPLX LP reported revenues of $2.91 billion in the last reported quarter, representing a year-over-year change of -14.4%. EPS of $0.89 for the same period compares with $0.96 a year ago.
MPLX LP is expected to post earnings of $0.94 per share for the current quarter, representing a year-over-year change of +20.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.
MPLX LP has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
MPLX LP (MPLX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. The bottom line declined from the year-ago period’s reported figure of 48 cents due to lower-than-expected contributions from two major segments — West and Gas, and NGL Marketing Services. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Williams Q3 Earnings Outpace Estimate, Sales miss The Williams Companies reported third-quarter 2023 adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 40 cents. Williams’ revenues of $2.56 billion missed the Zacks Consensus Estimate of $2.57 billion due to lower product sales. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report MPLX LP (MPLX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Williams Q3 Earnings Outpace Estimate, Sales miss The Williams Companies reported third-quarter 2023 adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 40 cents. Williams’ revenues of $2.56 billion missed the Zacks Consensus Estimate of $2.57 billion due to lower product sales. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report MPLX LP (MPLX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has been about a month since the last earnings report for Williams Companies, Inc. (The) (WMB). Williams Q3 Earnings Outpace Estimate, Sales miss The Williams Companies reported third-quarter 2023 adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 40 cents. MPLX LP reported revenues of $2.91 billion in the last reported quarter, representing a year-over-year change of -14.4%.
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9ac2ec06-3f82-4890-b396-ca6a2dbad9ba
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715181.0
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2023-12-01 00:00:00 UTC
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Why Is C.H. Robinson (CHRW) Up 0.8% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-c.h.-robinson-chrw-up-0.8-since-last-earnings-report
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nan
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A month has gone by since the last earnings report for C.H. Robinson Worldwide (CHRW). Shares have added about 0.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is C.H. Robinson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
C.H. Robinson Q3 Earnings Beat Estimates
C.H. Robinson third-quarter 2023 earnings of 84 cents per share beat the Zacks Consensus Estimate of 82 cents but declined 52.8% year over year. Total revenues of $4,341 million lagged the Zacks Consensus Estimate of $4,370 million and declined 27.8% year over year owing to lower pricing in the company’s ocean and truckload services.
Operating expenses declined 13.1% year over year to $521.3 million.
Adjusted gross profits fell 28.4% year over year to $634.8 million, owing to lower adjusted gross profit per transaction in truckload and ocean. Adjusted operating margin fell 1,450 basis points to 17.9%
Segmental Results
North American Surface Transportation’s total revenues were $3,086.97million (down 22.9% year over year) in the third quarter owing to lower truckload pricing. Adjusted gross profit of the segment declined 31.4% to $386.51 million.
Total revenues from Global Forwarding fell 52.4% to $719.04million, owing to lower pricing in CHRW’s ocean service. Adjusted gross profit of the segment fell 31.6% year over year to $169.89million
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) increased 6.6% to $535.01 million.
Below we present the division of adjusted profit among the service lines (on an enterprise basis).
Transportation: The unit (comprising Truckload, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $607.44million in the quarter under consideration, down 29.5% from the prior-year figure.
Adjusted gross profits of Truckload, LTL and Customs declined 38.4%, 14.9% and 10.7% year over year to $245.43 million, $137.94 million and $24.90 million, respectively. However, other logistics services’ adjusted gross profit fell 0.9% to $64.84 million.
Adjusted gross profit of the Ocean transportation segment fell 35% year over year. The metric fell 36.9% to $30.20 million in the Air transportation sub-group.
Balance-Sheet Data
CHRW exited the third quarter with cash and cash equivalents of $174.73 million compared with $210.15 million at the end of June 2023. Long-term debt was $920.72 million compared with $920.49 million at the end of June 2023.
CHRW generated $205.2 million of cash from operations in the third quarter. Capital expenditures were $16.7 million in the reported quarter.
In the third quarter of 2023, CHRW repurchased shares worth $3 million and paid $72.7 million in cash dividends.
2023 Outlook
Capital expenditures for 2023 are anticipated toward the lower end of the previously announced guidance of $90 million to $100 million.
Sourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.LiquiditySourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.LiquidityBelow we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.Below we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.Below we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -14.7% due to these changes.
VGM Scores
Currently, C.H. Robinson has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, C.H. Robinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Transportation: The unit (comprising Truckload, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $607.44million in the quarter under consideration, down 29.5% from the prior-year figure. Sourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.LiquiditySourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.LiquidityBelow we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.Below we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.Below we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.
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Total revenues of $4,341 million lagged the Zacks Consensus Estimate of $4,370 million and declined 27.8% year over year owing to lower pricing in the company’s ocean and truckload services. Adjusted operating margin fell 1,450 basis points to 17.9% Segmental Results North American Surface Transportation’s total revenues were $3,086.97million (down 22.9% year over year) in the third quarter owing to lower truckload pricing. Sourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.LiquiditySourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.LiquidityBelow we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.Below we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.Below we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.
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Total revenues of $4,341 million lagged the Zacks Consensus Estimate of $4,370 million and declined 27.8% year over year owing to lower pricing in the company’s ocean and truckload services. Adjusted gross profits of Truckload, LTL and Customs declined 38.4%, 14.9% and 10.7% year over year to $245.43 million, $137.94 million and $24.90 million, respectively. Sourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.LiquiditySourcing: Net revenue at the segment increased 3.9% year over year to $30.41 million.LiquidityBelow we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.Below we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.Below we give a historical presentation of results on an enterprise basis.Transportation: The unit (comprising Truckload, Intermodal, Less-than-Truckload, Ocean, Air, Customs and Other logistics services) reported net revenue of $538.1 million in the first quarter of 2017, up 0.8% from the year-ago quarter.
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A month has gone by since the last earnings report for C.H. Total revenues of $4,341 million lagged the Zacks Consensus Estimate of $4,370 million and declined 27.8% year over year owing to lower pricing in the company’s ocean and truckload services. Adjusted gross profits of Truckload, LTL and Customs declined 38.4%, 14.9% and 10.7% year over year to $245.43 million, $137.94 million and $24.90 million, respectively.
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f853029c-a274-45fc-b1a3-f5475494bc4d
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715182.0
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2023-12-01 00:00:00 UTC
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Why Is Estee Lauder (EL) Up 11.6% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-estee-lauder-el-up-11.6-since-last-earnings-report
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nan
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nan
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It has been about a month since the last earnings report for Estee Lauder (EL). Shares have added about 11.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Estee Lauder due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Estee Lauder Lowers FY24 View Despite Q1 Earnings Beat
The Estee Lauder Companies reported first-quarter fiscal 2024 results, with the top and the bottom line declining year over year. Quarterly net sales came in line with the Zacks Consensus Estimate while earnings beat the same. Quarterly results were hurt by softness in the Asia travel retail and slower-than-anticipated recovery in the prestige beauty across mainland China. Taking into account slower-than-anticipated net sales and margin recovery stemming from incremental external headwinds, management is lowering its fiscal 2024 guidance.
Quarter in Detail
The company posted adjusted earnings of 11 cents per share against the Zacks Consensus Estimate of a loss of 22 cents. However, the bottom line slumped 92% from $1.37 per share reported in the year-ago period. Adjusted EPS came in at 12 cents at constant currency.
Net sales of $3,518 million were in line with the Zacks Consensus Estimate. The metric fell 10% from $3,930 million reported in the year-ago quarter. Organic net sales fell 11%, mainly due to softness in the Asia travel retail business and slower-than-anticipated recovery in the overall prestige beauty in mainland China. These were somewhat offset by organic net sales growth across the United States, several markets in Asia/Pacific and almost every market in Europe, the Middle East & Africa (EMEA). Organic net sales in the Fragrance and Makeup grew while the same declined in the Skin Care category.
Skin Care’s sales were down 22% year over year to $1,638 million. Makeup revenues inched up 1% year over year to $1,063 million. In the Fragrance category, revenues were up 5% at $637 million. Hair Care sales totaled $148 million, down 6%. Sales in the Americas grew 8% year over year at $1,208 million. Revenues in the EMEA region declined 26% to $1,252 million. In the Asia-Pacific region, sales fell 6% to $1,058 million.
The gross profit came in at $2,448 million, down 16% year over year. Gross margin came in at 69.6%, down from 74% reported in the year-ago quarter. The operating income came in at $98 million, down 85% from $661 million reported in the year-ago period. Operating income margin contracted to 2.8% from 16.8% reported in the year-ago quarter.
Other Updates
The company exited the quarter with cash and cash equivalents of $3,090 million, long-term debt of $7,088 million and total equity of $5,342 million. Net cash flow used by operating activities for three months ended Sep 30, 2023, was $408 million. Capital expenditures during this time amounted to $295 million. The company returned $239 million to shareholders through dividend payouts.
The company is on track with the profit recovery plan to rebuild its profit margins for fiscal years 2025 and 2026. This plan will target key areas of the company’s business to enhance gross margin and reduce some operating expenses.
Outlook
In mainland China, The Estee Lauder Companies is witnessing a slower growth rate in the overall prestige beauty. Thanks to this, management is lowering its fiscal 2024 expectations for mainland China and Asia travel retail. Yet, management anticipates resetting retailer inventory in Asia travel retail by the end of the third quarter of fiscal 2024. Another factor dampening the company’s outlook is the potential risks of more business disruptions across Israel and other regions of the Middle East. In addition, EL remains exposed to the dangers of unfavorable currency headwinds.
That said, management envisions seeing a return to net sales growth in the back half of fiscal 2024. It also expects to see annual gross margin expansion mainly on strategic price increases, reduced discounts and obsolescence charges. The company also anticipates seeing progressive operating margin improvement in the second half of fiscal 2024.
For fiscal 2024, management now projects net sales in the range of a 2% decline and a 1% increase, including an unfavorable currency impact of 1%. The view also takes into account a 1% headwind of the potential risks of further business disruptions across Israel and other areas of the Middle East. The company had earlier expected net sales to increase 3-5%.
Organic net sales growth is now anticipated in the range of 1% decline and 2% growth in fiscal 2024. Organic net sales growth was earlier anticipated in the range of 6-8%.
Adjusted EPS is now expected in the band of $2.17-$2.42, suggesting growth from $3.46 reported in fiscal 2023. Currency headwinds are likely to affect net EPS by nearly 16 cents. Adjusted EPS was earlier anticipated in the band of $3.50-$3.75, with currency headwinds of nearly 11 cents. Adjusted EPS is now expected to decline 25-33% at cc, against growth of 4-12% projected earlier. The company’s guidance assumes an annual effective tax rate of nearly 28%.
For the second quarter of fiscal 2024, The Estee Lauder Companies anticipates reported net sales to decline 9 year over year. Organic net sales are likely to drop 8-10% in the quarter. Reported EPS are projected to be between 47 and 57 cents. Adjusted EPS on a cc basis is expected to decrease 60-66% in the fiscal second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -57.25% due to these changes.
VGM Scores
At this time, Estee Lauder has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Estee Lauder has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Taking into account slower-than-anticipated net sales and margin recovery stemming from incremental external headwinds, management is lowering its fiscal 2024 guidance. Organic net sales fell 11%, mainly due to softness in the Asia travel retail business and slower-than-anticipated recovery in the overall prestige beauty in mainland China.
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Estee Lauder Lowers FY24 View Despite Q1 Earnings Beat The Estee Lauder Companies reported first-quarter fiscal 2024 results, with the top and the bottom line declining year over year. Organic net sales fell 11%, mainly due to softness in the Asia travel retail business and slower-than-anticipated recovery in the overall prestige beauty in mainland China. For the second quarter of fiscal 2024, The Estee Lauder Companies anticipates reported net sales to decline 9 year over year.
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Estee Lauder Lowers FY24 View Despite Q1 Earnings Beat The Estee Lauder Companies reported first-quarter fiscal 2024 results, with the top and the bottom line declining year over year. Other Updates The company exited the quarter with cash and cash equivalents of $3,090 million, long-term debt of $7,088 million and total equity of $5,342 million. For the second quarter of fiscal 2024, The Estee Lauder Companies anticipates reported net sales to decline 9 year over year.
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Estee Lauder Lowers FY24 View Despite Q1 Earnings Beat The Estee Lauder Companies reported first-quarter fiscal 2024 results, with the top and the bottom line declining year over year. For the second quarter of fiscal 2024, The Estee Lauder Companies anticipates reported net sales to decline 9 year over year. We expect a below average return from the stock in the next few months.
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6a300900-3fd9-420b-979f-aa3697708e48
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715183.0
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2023-12-01 00:00:00 UTC
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Vornado (VNO) Surges 61% in 6 Months: Will the Trend Last?
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DCOMP
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https://www.nasdaq.com/articles/vornado-vno-surges-61-in-6-months%3A-will-the-trend-last
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nan
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Shares of Vornado Realty Trust VNO have soared 60.7% in the past six months against the industry’s decline of 0.2%.
Although the overall demand for office real estate seems to be under pressure due to macroeconomic uncertainty and a high interest rate environment, select markets are bucking the negative trend.
Net absorption in the United States office market showed signs of improvement in the third quarter of 2023 compared with the first and second quarters. The growing preference for premier office spaces with class-apart amenities by tenants has played a key role in aiding absorption rates.
Vornado’s ability to offer such properties in a few select high-rent, high-barrier-to-entry regional markets in the United States is likely to have helped it benefit from this positive trend, driving the increased optimism in its stock price.
Image Source: Zacks Investment Research
Apart from its significant presence in New York City office and Manhattan street retail, the company has a controlling interest in 555 California Street, in the heart of San Francisco's Financial District and owns theMART in Chicago's River North District, which are iconic office assets in signature cities.
With the resumption of economic activity in full swing, employees are returning to offices or announcing plans to come back. This is supporting the office real estate market fundamentals.
In the third quarter, Vornado noted that leasing velocity remained steady, concentrated mainly in small to medium-sized leases. In the New York office portfolio, the company leased 236,000 square feet of office space (190,000 square feet at share) for an initial rent of $93.33 per square foot and a weighted average lease term of 7.9 years in the quarter.
More so, the next cycle of office-space demand will likely be driven by the combination of office-using job growth, higher space utilization and expansion of technology, financial and media companies. Office occupiers are keen on growing their office footprint in New York City. Rents in the newly constructed or best-in-class redeveloped assets, which offer abundant amenities at transit-centric locations, have risen.
Given Vornado’s ability to offer top-quality office spaces in this market and a healthy leasing pipeline of 1.8 million square feet as of the end of the third quarter, it is well-placed to benefit from the emerging trend.
Vornado, carrying a Zacks Rank #3 (Hold), enjoys a diversified tenant base, which includes several industry bellwethers. This enables the company to generate stable cash flows and fuels long-term growth.
Vornado’s portfolio-repositioning efforts aimed at improving its core business are likely to pay off well. Strategic sell-outs provide the company with the dry powder to reinvest in opportunistic developments and redevelopments and enhance overall portfolio quality.
As part of such efforts, in August 2023, it closed the sale of four Manhattan retail properties — 510 Fifth Avenue, 148–150 Spring Street, 443 Broadway and 692 Broadway — for $100 million and realized net proceeds of $95.5 million. In July 2023, it disposed of The Armory Show in New York for $24.4 million.
Vornado enjoys solid balance sheet strength. As of Sep 30, 2023, the company had $3.2 billion of liquidity, consisting of $1.3 billion of cash and cash equivalents and restricted cash and $1.9 billion available under its $2.5 billion revolving credit facilities.
The REIT has secured loan refinancing in recent times, enabling it to reduce interest rates on borrowings and extend debt maturities. A flexible financial position will allow it to take advantage of future investment opportunities and fund its development projects.
Additionally, VNO’s current cash flow growth is projected at 21.03% compared with 8.02% growth estimated for the industry.
Nonetheless, Vornado faces competition from developers, owners and operators of office properties and other commercial real estate, including sublease space available from its tenants. This may limit VNO’s ability to increase rents and/or backfill tenant move-outs and vacancies, slowing down its growth tempo.
The continuation of work-from-home, flexible or hybrid work setups is likely to affect the demand for office spaces and hurt Vornado’s business prospects.
Further, given the prevailing macroeconomic uncertainty and high interest rate environment, the company may find it difficult to purchase or develop real estate with borrowed funds as the costs are likely to be on the higher side.
Stocks to Consider
Some better-ranked stocks from the REIT sector are EastGroup Properties EGP, Stag Industrial STAG and Park Hotels & Resorts PK, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for EastGroup Properties’ 2023 FFO per share has moved marginally upward in the past month to $7.71.
The Zacks Consensus Estimate for Stag Industrial’s ongoing year’s FFO per share has been raised marginally over the past month to $2.28.
The Zacks Consensus Estimate for Park Hotels & Resorts’ current-year FFO per share has moved 3.1% northward over the past month to $1.98.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vornado Realty Trust (VNO) : Free Stock Analysis Report
Stag Industrial, Inc. (STAG) : Free Stock Analysis Report
EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report
Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vornado’s ability to offer such properties in a few select high-rent, high-barrier-to-entry regional markets in the United States is likely to have helped it benefit from this positive trend, driving the increased optimism in its stock price. Given Vornado’s ability to offer top-quality office spaces in this market and a healthy leasing pipeline of 1.8 million square feet as of the end of the third quarter, it is well-placed to benefit from the emerging trend. Further, given the prevailing macroeconomic uncertainty and high interest rate environment, the company may find it difficult to purchase or develop real estate with borrowed funds as the costs are likely to be on the higher side.
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In the New York office portfolio, the company leased 236,000 square feet of office space (190,000 square feet at share) for an initial rent of $93.33 per square foot and a weighted average lease term of 7.9 years in the quarter. Stocks to Consider Some better-ranked stocks from the REIT sector are EastGroup Properties EGP, Stag Industrial STAG and Park Hotels & Resorts PK, each carrying a Zacks Rank #2 (Buy). Click to get this free report Vornado Realty Trust (VNO) : Free Stock Analysis Report Stag Industrial, Inc. (STAG) : Free Stock Analysis Report EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Apart from its significant presence in New York City office and Manhattan street retail, the company has a controlling interest in 555 California Street, in the heart of San Francisco's Financial District and owns theMART in Chicago's River North District, which are iconic office assets in signature cities. In the New York office portfolio, the company leased 236,000 square feet of office space (190,000 square feet at share) for an initial rent of $93.33 per square foot and a weighted average lease term of 7.9 years in the quarter. Click to get this free report Vornado Realty Trust (VNO) : Free Stock Analysis Report Stag Industrial, Inc. (STAG) : Free Stock Analysis Report EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Additionally, VNO’s current cash flow growth is projected at 21.03% compared with 8.02% growth estimated for the industry. Further, given the prevailing macroeconomic uncertainty and high interest rate environment, the company may find it difficult to purchase or develop real estate with borrowed funds as the costs are likely to be on the higher side. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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252523b6-f446-4f50-b22c-e3ea8689f9c0
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715184.0
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2023-12-01 00:00:00 UTC
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Why Is Scotts (SMG) Up 6% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-scotts-smg-up-6-since-last-earnings-report
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nan
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nan
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It has been about a month since the last earnings report for Scotts Miracle-Gro (SMG). Shares have added about 6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Scotts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Scotts Miracle-Gro’s Q4 Earnings & Sales Beat Estimates
Scotts Miracle-Gro reported a fourth-quarter fiscal 2023 (ended Sep 30, 2023) loss of $468.4 million or $8.33 per share compared with a loss of $220.1 million or $3.97 per share in the year-ago quarter.
Barring one-time items, the adjusted loss was $2.77 per share, wider than a loss of $2.04 a year ago. The figure was narrower than the Zacks Consensus Estimate of a loss of $2.83.
Net sales fell around 24.1% year over year to $374.5 million but surpassed the consensus mark of $331.2 million. The decline in sales was due to lower sales in the U.S. Consumer and Hawthorne segments.
Segment Details
In the fiscal fourth quarter, net sales in the U.S. Consumer division were down 33% year over year to $201 million. It was higher than our estimate of $173 million.
Net sales in the Hawthorne segment tumbled 11% year over year to $149.7 million in the reported quarter. The figure was higher than our estimate of $149 million.
Net sales in the other segment increased 3% year over year to $23.8 million.
Balance Sheet
At the end of fiscal 2023, the company had cash and cash equivalents of $31.9 million, down from $86.8 million in fiscal 2022. Long-term debt was $2,557.4 million, down from $2,826.2 million in fiscal 2022.
FY2024 Outlook
The company noted that its outlook for fiscal 2024 incorporates significant progress on margin recovery while adjusting for a higher share count, effective tax rate and average cost of borrowing compared with fiscal 2023.
It has developed an aggressive operating plan for fiscal 2024 that is built upon strong engagement with retailer partners and sustained diligence with cost management, free cash flow generation and debt repayment.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -61.5% due to these changes.
VGM Scores
At this time, Scotts has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Scotts has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Scotts Miracle-Gro Company (SMG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. It has developed an aggressive operating plan for fiscal 2024 that is built upon strong engagement with retailer partners and sustained diligence with cost management, free cash flow generation and debt repayment. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Scotts Miracle-Gro’s Q4 Earnings & Sales Beat Estimates Scotts Miracle-Gro reported a fourth-quarter fiscal 2023 (ended Sep 30, 2023) loss of $468.4 million or $8.33 per share compared with a loss of $220.1 million or $3.97 per share in the year-ago quarter. Net sales in the Hawthorne segment tumbled 11% year over year to $149.7 million in the reported quarter. Click to get this free report The Scotts Miracle-Gro Company (SMG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Scotts Miracle-Gro’s Q4 Earnings & Sales Beat Estimates Scotts Miracle-Gro reported a fourth-quarter fiscal 2023 (ended Sep 30, 2023) loss of $468.4 million or $8.33 per share compared with a loss of $220.1 million or $3.97 per share in the year-ago quarter. Net sales fell around 24.1% year over year to $374.5 million but surpassed the consensus mark of $331.2 million. Segment Details In the fiscal fourth quarter, net sales in the U.S. Consumer division were down 33% year over year to $201 million.
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It has been about a month since the last earnings report for Scotts Miracle-Gro (SMG). Scotts Miracle-Gro’s Q4 Earnings & Sales Beat Estimates Scotts Miracle-Gro reported a fourth-quarter fiscal 2023 (ended Sep 30, 2023) loss of $468.4 million or $8.33 per share compared with a loss of $220.1 million or $3.97 per share in the year-ago quarter. Net sales fell around 24.1% year over year to $374.5 million but surpassed the consensus mark of $331.2 million.
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8eddc62e-2fa3-4913-8a68-8893e33c18da
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715185.0
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2023-12-01 00:00:00 UTC
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Does Janux Therapeutics, Inc. (JANX) Have the Potential to Rally 205.5% as Wall Street Analysts Expect?
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DCOMP
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https://www.nasdaq.com/articles/does-janux-therapeutics-inc.-janx-have-the-potential-to-rally-205.5-as-wall-street
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nan
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Janux Therapeutics, Inc. (JANX) closed the last trading session at $8.73, gaining 33.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $26.67 indicates a 205.5% upside potential.
The average comprises three short-term price targets ranging from a low of $21 to a high of $35, with a standard deviation of $7.37. While the lowest estimate indicates an increase of 140.6% from the current price level, the most optimistic estimate points to a 300.9% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for JANX, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why JANX Could Witness a Solid Upside
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 16%, as four estimates have moved higher compared to no negative revision.
Moreover, JANX currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much JANX could gain, the direction of price movement it implies does appear to be a good guide.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Janux Therapeutics, Inc. (JANX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Janux Therapeutics, Inc. (JANX) closed the last trading session at $8.73, gaining 33.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
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That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Click to get this free report Janux Therapeutics, Inc. (JANX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here's What You Should Know About Analysts' Price Targets According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much JANX could gain, the direction of price movement it implies does appear to be a good guide.
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The mean price target of $26.67 indicates a 205.5% upside potential. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much JANX could gain, the direction of price movement it implies does appear to be a good guide.
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89f4d5a6-786b-4edd-ae41-09fa44d820b7
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715186.0
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2023-12-01 00:00:00 UTC
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McKesson (MCK) Up 5.1% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/mckesson-mck-up-5.1-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for McKesson (MCK). Shares have added about 5.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is McKesson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
McKesson Beats on Q2 Earnings, Raises '23 EPS View
McKesson Corporation reported second-quarter fiscal 2024 adjusted earnings per share (EPS) of $6.23, which beat the Zacks Consensus Estimate of $6.11 by 2%. The bottom line also improved 3% on a year-over-year basis.
GAAP EPS was $4.92, down 23.8% from the year-ago quarter’s level. The significant decline was due to the provision of bad debts worth $210 million for uncollected trade accounts receivable related to the bankruptcy of Rite Aid Corporation.
Revenue Details
Revenues of $77.22 billion beat the Zacks Consensus Estimate by 1.8%. The top line also increased 10% year over year, reflecting strong growth in the United States. This was partially offset by lower international sales due to divestitures of its European businesses.
Q2 Segmental Analysis
Revenues at the U.S. Pharmaceutical segment totaled $69.8 billion, up 16% year over year. Per management, the upside was primarily driven by higher volume of specialty products, including an increase in volume from retail national account customers. However, branded-to-generic conversions partially offset the upside.
The U.S. Pharmaceutical and Specialty Solutions segment reported an adjusted operating profit of $815 million, up 8% from the prior-year quarter’s level. This was due to growth in the distribution of specialty products to providers and health systems, and increased contributions from our generics program, partially mitigated by lower demand for COVID-19 vaccine distribution. The adjusted metric for the segment was up 15% year over year, excluding the impact of the abovementioned vaccine’s distribution.
At the International segment, revenues amounted to $3.5 billion, down 43% year over year. This was due to divestitures of McKesson’s European businesses.
Adjusted operating profit at the segment totaled $93 million, down 32% from the year-ago quarter’s figure.
Revenues at the Medical-Surgical Solutions segment totaled $2.8 billion, flat year over year. Sales were primarily hurt by lower COVID-19-related sales.
The Medical-Surgical segment reported an adjusted operating profit of $254 million, down 17% year over year. Excluding the impact of COVID-related items, the adjusted metric was up 5%.
Revenues at the Prescription Technology Solutions segment totaled $1.1 billion, up 12% from that recorded a year ago. The improvement can be attributed to higher technology services revenues and an increase in prescriptions from third-party logistics.
Adjusted operating profit amounted to $209 million at the segment, up 48% from the prior-year quarter’s level.
Margins
Gross profit in the reported quarter was $3.07 billion, down 1% on a year-over-year basis. The figure accounted for 4% of net revenues.
The company reported an operating income of $977 million, down 25% from the year-ago quarter’s figure. Operating margin accounted for 1.3% of net revenues.
Financial Update
Cash and cash equivalents totaled $2.52 billion compared with $2.64 billion in the previous quarter.
Cumulative net cash used in operating activities amounted to $87 million against net cash provided by operating activities of $166 million in the year-ago period.
Fiscal 2024 Guidance
McKesson raised its adjusted earnings guidance for fiscal 2024. It now projects adjusted EPS in the range of $26.80-$27.40, up from the previous guidance of $26.55-$27.35. The Zacks Consensus Estimate for the same is pegged at $27.21. The company now expects revenues to grow 8-12% versus 7-12% as estimated previously.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 5.33% due to these changes.
VGM Scores
Currently, McKesson has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, McKesson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
McKesson belongs to the Zacks Medical - Dental Supplies industry. Another stock from the same industry, Labcorp (LH), has gained 5.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Labcorp reported revenues of $3.06 billion in the last reported quarter, representing a year-over-year change of -15.2%. EPS of $3.38 for the same period compares with $4.68 a year ago.
Labcorp is expected to post earnings of $3.32 per share for the current quarter, representing a year-over-year change of -19.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Labcorp. Also, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
McKesson Corporation (MCK) : Free Stock Analysis Report
Labcorp (LH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. The significant decline was due to the provision of bad debts worth $210 million for uncollected trade accounts receivable related to the bankruptcy of Rite Aid Corporation. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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McKesson Beats on Q2 Earnings, Raises '23 EPS View McKesson Corporation reported second-quarter fiscal 2024 adjusted earnings per share (EPS) of $6.23, which beat the Zacks Consensus Estimate of $6.11 by 2%. Cumulative net cash used in operating activities amounted to $87 million against net cash provided by operating activities of $166 million in the year-ago period. Click to get this free report McKesson Corporation (MCK) : Free Stock Analysis Report Labcorp (LH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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McKesson Beats on Q2 Earnings, Raises '23 EPS View McKesson Corporation reported second-quarter fiscal 2024 adjusted earnings per share (EPS) of $6.23, which beat the Zacks Consensus Estimate of $6.11 by 2%. The Medical-Surgical segment reported an adjusted operating profit of $254 million, down 17% year over year. Click to get this free report McKesson Corporation (MCK) : Free Stock Analysis Report Labcorp (LH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for McKesson (MCK). McKesson Beats on Q2 Earnings, Raises '23 EPS View McKesson Corporation reported second-quarter fiscal 2024 adjusted earnings per share (EPS) of $6.23, which beat the Zacks Consensus Estimate of $6.11 by 2%. Labcorp reported revenues of $3.06 billion in the last reported quarter, representing a year-over-year change of -15.2%.
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279d4988-39d5-488c-8e0c-4b516a1551ee
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715187.0
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2023-12-01 00:00:00 UTC
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Jakks (JAKK) Up 28% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/jakks-jakk-up-28-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for Jakks Pacific (JAKK). Shares have added about 28% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jakks due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
JAKKS Pacific Q3 Earnings & Revenues Beat Estimates
JAKKS reported third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. While revenues outpaced the consensus estimate for the eighth straight quarter, earnings beat the same for the third consecutive quarter.
The company’s product margins have seen a notable boost this year, thanks to a more stable supply chain and reduced promotional activities compared with the previous year.
Q3 Earnings and Revenues
During the quarter, the company reported adjusted earnings per share (EPS) of $4.75, beating the Zacks Consensus Estimate of $3.46. In the prior-year quarter, JAKK reported adjusted EPS of $3.80.
Quarterly revenues of $309.7 million surpassed the consensus mark of $284 million. However, the top line declined 4% on a year-over-year basis. During the quarter, it reported solid contributions from Costumes. Yet, dismal Toys/Consumer Products sales hurt its top line.
Net sales in the Toys/Consumer Products segment decreased 9% year over year to $246 million.
Costume net sales rose 19% year over year to $63.7 million.
Operating Highlights
In the reported quarter, the gross margin reached 34.5%, up 600 basis points from the prior-year levels. We predicted the metric to be 26.9%.
Adjusted EBITDA amounted to $67.1 million compared with $59.4 million a year ago.
Balance Sheet
As of Sep 30, the company’s cash and cash equivalents (including restricted cash) were $96.4 million compared with $76.6 million as of Sep 30, 2022.
As of Sep 30, 2023, total debt was zero, in contrast to $67.7 million as of Sep 30, 2022, and $67.2 million as of Dec 31, 2022.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Jakks has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Jakks has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Operating Highlights In the reported quarter, the gross margin reached 34.5%, up 600 basis points from the prior-year levels. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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JAKKS Pacific Q3 Earnings & Revenues Beat Estimates JAKKS reported third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Q3 Earnings and Revenues During the quarter, the company reported adjusted earnings per share (EPS) of $4.75, beating the Zacks Consensus Estimate of $3.46. Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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JAKKS Pacific Q3 Earnings & Revenues Beat Estimates JAKKS reported third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Q3 Earnings and Revenues During the quarter, the company reported adjusted earnings per share (EPS) of $4.75, beating the Zacks Consensus Estimate of $3.46. Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Jakks Pacific (JAKK). JAKKS Pacific Q3 Earnings & Revenues Beat Estimates JAKKS reported third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Q3 Earnings and Revenues During the quarter, the company reported adjusted earnings per share (EPS) of $4.75, beating the Zacks Consensus Estimate of $3.46.
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36bcff6b-92ad-46d3-88a1-8f124cda6793
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715188.0
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2023-12-01 00:00:00 UTC
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FormFactor (FORM) Up 13.4% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/formfactor-form-up-13.4-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for FormFactor (FORM). Shares have added about 13.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FormFactor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
FormFactor Q3 Earnings Beat, Revenues Fall Y/Y
FormFactor delivered third-quarter 2023 adjusted earnings of 22 cents per share, which surpassed the Zacks Consensus Estimate by 29.41%. However, the bottom-line figure decreased 8.3% year over year.
Revenues of $171.6 million beat the Zacks Consensus Estimate by 2.53% but declined 5.1% on a year-over-year basis.
The top-line decline was primarily attributed to softness in probe cards. Weak demand for DRAM and Flash hurt top-line growth. Nevertheless, FormFactor witnessed continued growth in the systems business.
Segments in Detail
Probe card revenues were $128.4 million, down 7.9% year over year.
Foundry & Logic (accounting for 56.2% of revenues) revenues were $96.4 million, up 6.4% year over year.
DRAM revenues (16% of revenues) were $27.5 million, down 17.1% year over year. Flash revenues (2.6% of revenues) were $4.5 million, down 67.6% year over year.
Systems revenues (25.2% of revenues) were $43.2 million, up 4.1% year over year.
Regionally, revenues generated from the United States, Taiwan and South Korea increased 14.7%, 16.8% and 21.5% year over year, respectively.
Revenues generated from China, Europe, Japan, Malaysia, Singapore, and the Rest of World were down 40.6%, 21.2%, 9.1%, 7.7%, 64.4% and 50%, respectively, year over year.
Operating Results
In third-quarter 2023, gross margin contracted 280 basis points (bps) year over year to 41.8% in the reported quarter.
Non-GAAP operating expenses increased 10.1% year over year to $54.5 million. As a percentage of revenues, operating expenses were 440 bps year over year to 31.8%.
Non-GAAP operating margin contracted 150 bps year over year to 10.1%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents and marketable securities were $244.4 million compared with $236.9 million on Jul 1.
Cash generated from operating activities was $20.6 million for the reported quarter, down from $22.5 million in the previous quarter.
Free cash flow was $16.9 million for the reported quarter, up from $2.1 million reported in the previous quarter.
Guidance
FormFactor expects fourth-quarter 2023 revenues of $165 million (+/- $5 million).
Revenue guidance reflects a moderate decline on a sequential basis due to the sale of FRT and weaker Foundry & Logic probe card demand, primarily attributed to a short-term reduction in customer spending.
The company expects a non-GAAP gross margin of 41% (+/- 1.5%).
On a non-GAAP basis, FormFactor expects earnings of 20 cents (+/- 4 cents) per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted -12.31% due to these changes.
VGM Scores
At this time, FormFactor has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, FormFactor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FormFactor is part of the Zacks Electronics - Semiconductors industry. Over the past month, Advanced Micro Devices (AMD), a stock from the same industry, has gained 12.4%. The company reported its results for the quarter ended September 2023 more than a month ago.
Advanced Micro reported revenues of $5.8 billion in the last reported quarter, representing a year-over-year change of +4.2%. EPS of $0.70 for the same period compares with $0.67 a year ago.
For the current quarter, Advanced Micro is expected to post earnings of $0.77 per share, indicating a change of +11.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -8.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Advanced Micro. Also, the stock has a VGM Score of F.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FormFactor, Inc. (FORM) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Revenue guidance reflects a moderate decline on a sequential basis due to the sale of FRT and weaker Foundry & Logic probe card demand, primarily attributed to a short-term reduction in customer spending. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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FormFactor Q3 Earnings Beat, Revenues Fall Y/Y FormFactor delivered third-quarter 2023 adjusted earnings of 22 cents per share, which surpassed the Zacks Consensus Estimate by 29.41%. Operating Results In third-quarter 2023, gross margin contracted 280 basis points (bps) year over year to 41.8% in the reported quarter. Click to get this free report FormFactor, Inc. (FORM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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DRAM revenues (16% of revenues) were $27.5 million, down 17.1% year over year. Flash revenues (2.6% of revenues) were $4.5 million, down 67.6% year over year. Click to get this free report FormFactor, Inc. (FORM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for FormFactor (FORM). Revenues of $171.6 million beat the Zacks Consensus Estimate by 2.53% but declined 5.1% on a year-over-year basis. The company reported its results for the quarter ended September 2023 more than a month ago.
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4e8d1d0e-8df5-4067-b640-f4b19f84c4a8
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715189.0
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2023-12-01 00:00:00 UTC
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Why Is MKS Instruments (MKSI) Up 24.8% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-mks-instruments-mksi-up-24.8-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for MKS Instruments (MKSI). Shares have added about 24.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is MKS Instruments due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
MKS Instruments Q3 Earnings Top Estimates, Revenues Down
MKS Instruments reported third-quarter 2023 adjusted earnings of $1.46 per share, beating the Zacks Consensus Estimate by 46% but declining 46.7% year over year.
Revenues of $932 million miss the consensus mark by 0.01% and decreased 2.3% year over year.
Products revenues (87.8% of total revenues) were $818 million, down 2.7% year over year. Services revenues (12.2% of total revenues) increased 0.9% to $114 million.
Quarterly Update
Revenues from the semiconductor market (39.4% of total revenues) declined 31.4% year over year to $367 million.
Electronics & Packaging revenues (26.1% of total revenues) were $243 million, up 46.4% year over year.
Specialty Industrial revenues (34.5% of total revenues) increased 27.3% year over year to $322 million.
Operating Details
In the third quarter, the adjusted gross margin expanded 210 basis points (bps) on a year-over-year basis to 47.1%.
Adjusted EBITDA fell 12.3% year over year to $235 million. Adjusted EBITDA margin contracted 290 bps on a year-over-year basis to 25.2%.
Research & development and sales, general & administrative expenses, as a percentage of revenues, surged 100 bps and 470 bps on a year-over-year basis, respectively.
MKS Instruments reported a non-GAAP operating income of $203 million, down 15.4% year over year. The adjusted operating margin contracted 340 bps on a year-over-year basis to 21.8%.
Balance Sheet
As of Sep 30, 2023, MKS Instruments had cash and cash equivalents of $860 million. Total debt was $4.87 billion.
Cash flow from operations was $160 million in the third quarter compared with the second-quarter 2023 cash outflow of $59 million.
Free cash flow was $142 million compared with free cash outflow of $77 million reported in the previous quarter.
Guidance
For the fourth quarter of 2023, MKSI expects revenue of $840 million, plus or minus $40 million.
Adjusted EBITDA of $185 million, plus or minus $20 million.
Non-GAAP earnings are expected to be 85 cents, plus or minus 27 cents.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -7.65% due to these changes.
VGM Scores
Currently, MKS Instruments has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, MKS Instruments has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MKS Instruments, Inc. (MKSI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Will the recent positive trend continue leading up to its next earnings release, or is MKS Instruments due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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MKS Instruments Q3 Earnings Top Estimates, Revenues Down MKS Instruments reported third-quarter 2023 adjusted earnings of $1.46 per share, beating the Zacks Consensus Estimate by 46% but declining 46.7% year over year. Free cash flow was $142 million compared with free cash outflow of $77 million reported in the previous quarter. Click to get this free report MKS Instruments, Inc. (MKSI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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MKS Instruments Q3 Earnings Top Estimates, Revenues Down MKS Instruments reported third-quarter 2023 adjusted earnings of $1.46 per share, beating the Zacks Consensus Estimate by 46% but declining 46.7% year over year. Products revenues (87.8% of total revenues) were $818 million, down 2.7% year over year. Quarterly Update Revenues from the semiconductor market (39.4% of total revenues) declined 31.4% year over year to $367 million.
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A month has gone by since the last earnings report for MKS Instruments (MKSI). MKS Instruments Q3 Earnings Top Estimates, Revenues Down MKS Instruments reported third-quarter 2023 adjusted earnings of $1.46 per share, beating the Zacks Consensus Estimate by 46% but declining 46.7% year over year. MKS Instruments reported a non-GAAP operating income of $203 million, down 15.4% year over year.
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671712f3-ca50-411f-b675-6f746fce9b7f
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715190.0
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2023-12-01 00:00:00 UTC
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United Therapeutics (UTHR) Up 5.2% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/united-therapeutics-uthr-up-5.2-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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It has been about a month since the last earnings report for United Therapeutics (UTHR). Shares have added about 5.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is United Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Q3 Earnings & Revenues Beat Estimates
United Therapeutics’ third-quarter 2023 earnings of $5.38 per share beat the Zacks Consensus Estimate of $4.89. Earnings rose 10% year over year on the back of higher product sales.
Revenues in the reported quarter were $609.4 million, beating the Zacks Consensus Estimate of $576.5 million. Revenues rose 18% year over year, driven by Tyvaso sales.
Quarter in Detail
Tyvaso sales totaled $325.8 million, up 26% year over year. Tyvaso revenues included $205.1 million in sales from the Tyvaso DPI formulation, which was launched in 2022 and $120.7 million in sales from nebulized Tyvaso.
Sales of Tyvaso DPI rose 225% in the quarter, driven by higher volumes and continued growth in utilization by patients with PH-ILD. Sales of nebulized Tyvaso declined 38% due to lower volumes following patient switch to Tyvaso DPI. Tyvaso sales beat the Zacks Consensus Estimate of $305 million and our model estimate of $309.1 million.
Remodulin (including Remunity Pump) sales rose 15% year over year to $131.1 million, while Orenitram sales rose 5% year over year, amounting to $92.0 million.
Unituxin sales rose 11% year over year to $51.3 million. Adcirca sales were $7.3 million, down 32% year over year.
Research and development expenses were $84.7 million in the quarter, up 28% year over year. Selling, general and administrative expenses were up 30% to $127.6 million in the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, United Therapeutics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending downward for the stock, and the magnitude of these revisions looks promising. Notably, United Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Therapeutics Corporation (UTHR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Sales of Tyvaso DPI rose 225% in the quarter, driven by higher volumes and continued growth in utilization by patients with PH-ILD. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Q3 Earnings & Revenues Beat Estimates United Therapeutics’ third-quarter 2023 earnings of $5.38 per share beat the Zacks Consensus Estimate of $4.89. Sales of Tyvaso DPI rose 225% in the quarter, driven by higher volumes and continued growth in utilization by patients with PH-ILD. Remodulin (including Remunity Pump) sales rose 15% year over year to $131.1 million, while Orenitram sales rose 5% year over year, amounting to $92.0 million.
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Q3 Earnings & Revenues Beat Estimates United Therapeutics’ third-quarter 2023 earnings of $5.38 per share beat the Zacks Consensus Estimate of $4.89. Tyvaso sales beat the Zacks Consensus Estimate of $305 million and our model estimate of $309.1 million. Remodulin (including Remunity Pump) sales rose 15% year over year to $131.1 million, while Orenitram sales rose 5% year over year, amounting to $92.0 million.
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It has been about a month since the last earnings report for United Therapeutics (UTHR). Revenues in the reported quarter were $609.4 million, beating the Zacks Consensus Estimate of $576.5 million. Tyvaso sales beat the Zacks Consensus Estimate of $305 million and our model estimate of $309.1 million.
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e997950a-a511-45c7-bfd1-96fd2dcc09d7
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715191.0
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2023-12-01 00:00:00 UTC
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Why Is Etsy (ETSY) Up 23% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-etsy-etsy-up-23-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for Etsy (ETSY). Shares have added about 23% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Etsy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
ETSY's Q3 Earnings Beat Estimates, Revenues Increase Y/Y
Etsy reported third-quarter 2023 earnings of 64 cents per share, beating the Zacks Consensus Estimate by 30.61%. The bottom line reflects a year-over-year increase of 10.3%.
Revenues advanced 7% year over year to $636.3 million. The figure beat the Zacks Consensus Estimate by 1.04%. Top-line growth was driven by accelerating services revenues. Strong momentum across active sellers and reactivated buyers remained positive.
Top Line in Detail
Marketplace revenues were $460.92 million (72.4% of the total revenues), up 3.9% from the year-ago quarter’s level, driven by the solid momentum across buyers. ETSY acquired 6.1 million new buyers, which was a major positive. The total number of active buyers on Etsy’s marketplace stood at 91.6 million, which increased 4% year over year.
Services revenues were $175.38 million (27.6% of the total revenues), up 16.2% on a year-over-year basis. Etsy ads acted as a key driver of revenue growth.
Quarterly Specifics
Etsy’s active buyer base increased 3.4% from the prior-year quarter’s figure to 97.34 million, which came ahead of the consensus mark of 96.6 million.
The active seller base was pegged at 8.8 million, up 19% year over year. The figure topped the consensus mark of 8.37 million. Increased investments to provide tools and insights for sustainable pricing strategies for sellers had a positive effect on seller base growth.
ETSY witnessed solid momentum in buyer reactivation. Reactivated buyers were six million, up 19% year over year.
Gross merchandise sales (GMS) of $3.03 billion were up 1.2% on a reported basis and largely flat on a currency-neutral basis from the prior-year quarter. The reported figure surpassed the Zacks Consensus Estimate of $3.02 billion.
The Etsy marketplace’s GMS was $2.7 billion, up 1% and down 0.3% on a reported basis and a currency-neutral basis, respectively, from the year-ago quarter’s figure.
GMS Ex-U.S. domestic for the Etsy marketplace rose 7% from the prior-year quarter’s figure on a currency-neutral basis and accounted for 47% of the total GMS.
Operating Details
In third-quarter 2023, the gross margin was 70.3%, which contracted 40 basis points year over year.
Total operating expenses were $358.92 million, down 73.9% from the prior-year quarter. As a percentage of revenues, the figure contracted to 56.4% from 231.3% in the year-ago quarter.
Consequently, ETSY reported an operating loss of $0.89 million compared with an operating income of $954.78 million reported in the prior-year quarter.
Balance Sheet & Cash Flows
As of Sep 30, 2023, cash and cash equivalents totaled $741.96 million, which decreased from $841.51 million as of Jun 30, 2023.
Short-term investments were $234.93 million, down from $235.3 million in the previous quarter.
Long-term debt stood at $2.28 billion at the end of the third quarter, which remained flat compared with the figure at the end of the prior quarter.
In third-quarter 2023, the company generated $218.51 million in cash from operations, up from $136.27 million in the previous quarter.
Guidance
For fourth-quarter 2023, Etsy anticipates the take rate to be approximately 20.8%, down slightly on a sequential basis due to normal seasonality. This can be used to estimate revenue range for the quarter.
GMS is expected to decline in the low-single-digit range on a year-over-year basis. However, if trends worsen, that could become a mid-single-digit decline, and if trends improve, GMS could be flat or even up slightly year over year.
The adjusted EBITDA margin is expected between 26% and 27%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -9.92% due to these changes.
VGM Scores
At this time, Etsy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Etsy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Etsy is part of the Zacks Internet - Services industry. Over the past month, Alphabet Inc. (GOOG), a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended September 2023 more than a month ago.
Alphabet Inc. reported revenues of $64.05 billion in the last reported quarter, representing a year-over-year change of +11.9%. EPS of $1.55 for the same period compares with $1.06 a year ago.
For the current quarter, Alphabet Inc. is expected to post earnings of $1.60 per share, indicating a change of +52.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Alphabet Inc. Also, the stock has a VGM Score of A.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Etsy, Inc. (ETSY) : Free Stock Analysis Report
Alphabet Inc. (GOOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Guidance For fourth-quarter 2023, Etsy anticipates the take rate to be approximately 20.8%, down slightly on a sequential basis due to normal seasonality. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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ETSY's Q3 Earnings Beat Estimates, Revenues Increase Y/Y Etsy reported third-quarter 2023 earnings of 64 cents per share, beating the Zacks Consensus Estimate by 30.61%. Top Line in Detail Marketplace revenues were $460.92 million (72.4% of the total revenues), up 3.9% from the year-ago quarter’s level, driven by the solid momentum across buyers. Click to get this free report Etsy, Inc. (ETSY) : Free Stock Analysis Report Alphabet Inc. (GOOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ETSY's Q3 Earnings Beat Estimates, Revenues Increase Y/Y Etsy reported third-quarter 2023 earnings of 64 cents per share, beating the Zacks Consensus Estimate by 30.61%. Quarterly Specifics Etsy’s active buyer base increased 3.4% from the prior-year quarter’s figure to 97.34 million, which came ahead of the consensus mark of 96.6 million. Click to get this free report Etsy, Inc. (ETSY) : Free Stock Analysis Report Alphabet Inc. (GOOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A month has gone by since the last earnings report for Etsy (ETSY). Services revenues were $175.38 million (27.6% of the total revenues), up 16.2% on a year-over-year basis. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Alphabet Inc. Also, the stock has a VGM Score of A. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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7b4d18fb-72c1-47e6-b6ff-a3da2a7c7431
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715192.0
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2023-12-01 00:00:00 UTC
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Why Is Cheesecake Factory (CAKE) Up 3.7% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-cheesecake-factory-cake-up-3.7-since-last-earnings-report
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nan
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nan
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It has been about a month since the last earnings report for Cheesecake Factory (CAKE). Shares have added about 3.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cheesecake Factory due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cheesecake Factory Q3 Earnings & Revenue Miss Estimates
Cheesecake Factory reported lower-than-expected third-quarter fiscal 2023 results with earnings and revenues missing the Zacks Consensus Estimate. Nonetheless, the company’s top and bottom lines improved on a year-over-year basis courtesy of higher consumer demand, new restaurant openings and operational efficiency.
Earnings & Revenue Discussion
In the quarter under review, the company reported adjusted earnings per share (EPS) of 39 cents, missing the Zacks Consensus Estimate of 42 cents by 7.1%. In the year-ago period, the company reported a loss of 3 cents per share.
Total revenues of $830.2 million missed the consensus estimate of $842 million by 1.4%. However, the top line increased 5.9% on a year-over-year basis.
Solid Comps Growth
In the reported quarter, comps at Cheesecake Factory restaurants rose 2.4% year over year (lower than our expectation of 3.4% growth) compared with 1.1% in the prior-year quarter. Comps grew 12.6% from 2019 levels. Notably, the quarterly comps exceeded the Knapp-Track and Black Box casual dining indices for both periods.
For the 39-week ended Oct 3, 2023, comps at Cheesecake Factory restaurants increased 3.2% year over year compared with 8.2% a year ago.
In the fiscal third quarter, The Cheesecake Factory's off-premise sales accounted for 21% of their total sales, slightly below the levels observed in the second quarter. This aligns with historical trends, where the summer months tend to exhibit a lower proportion of off-premise sales, suggesting the possibility of a return to typical seasonal patterns.
North Italia comps gained 8% year over year compared with 10% in the year-ago quarter. The metric increased 28% compared with 2019 levels. Our model suggested the metric to rise 6.9% year over year.
Costs in Detail
The cost of food and beverage, as a percentage of revenues, increased 30 basis points (bps) year over year to 23.5% in the fiscal third quarter. Our model predicted the metric to be 24.2% of revenues in the quarter.
Labor expenses, as a percentage of total revenues, amounted to 36.3%, down 110 bps from the year-ago quarter’s levels. We expected the metric to be 36.1% of revenues in the quarter.
Other operating costs, as a percentage of total revenues, were 27.6%, down 10 bps from the prior-year quarter’s level. In the quarter, we anticipated the metric to be 26.3% of revenues.
General and administrative expenses accounted for 6.5% of revenues, up 10 bps year over year. Our model predicted the metric to be 6.7% of revenues in the fiscal third quarter.
In the fiscal third quarter, pre-opening expenses accounted for 0.8% of revenues, up 20 bps year over year.
Balance Sheet
As of Oct 3, Cheesecake Factory’s cash and cash equivalents totaled $64 million compared with $114.8 million at the fiscal 2022-end. Long-term debt (net of issuance costs) was $469.5 million compared with the fiscal 2022-end value of $468 million. As of Oct 3, the company had a total available liquidity of $300 million.
Management declared a quarterly cash dividend of 27 cents per share. The dividend will be payable on Nov 28, to shareholders of record as of Nov 15. In the fiscal third quarter, CAKE also repurchased 453,400 shares for $14.6 million.
Store Developments
In the quarter under review, Cheesecake Factory opened two new restaurants. Management now expects to open 16 restaurants in fiscal 2023, along with two new international restaurants under licensing agreements.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
At this time, Cheesecake Factory has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cheesecake Factory has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cheesecake Factory is part of the Zacks Retail - Restaurants industry. Over the past month, BJ's Restaurants (BJRI), a stock from the same industry, has gained 10.7%. The company reported its results for the quarter ended September 2023 more than a month ago.
BJ's Restaurants reported revenues of $318.64 million in the last reported quarter, representing a year-over-year change of +2.3%. EPS of -$0.16 for the same period compares with -$0.25 a year ago.
BJ's Restaurants is expected to post earnings of $0.28 per share for the current quarter, representing a year-over-year change of +64.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.1%.
BJ's Restaurants has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report
BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Nonetheless, the company’s top and bottom lines improved on a year-over-year basis courtesy of higher consumer demand, new restaurant openings and operational efficiency. This aligns with historical trends, where the summer months tend to exhibit a lower proportion of off-premise sales, suggesting the possibility of a return to typical seasonal patterns.
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Cheesecake Factory Q3 Earnings & Revenue Miss Estimates Cheesecake Factory reported lower-than-expected third-quarter fiscal 2023 results with earnings and revenues missing the Zacks Consensus Estimate. Solid Comps Growth In the reported quarter, comps at Cheesecake Factory restaurants rose 2.4% year over year (lower than our expectation of 3.4% growth) compared with 1.1% in the prior-year quarter. Click to get this free report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Cheesecake Factory Q3 Earnings & Revenue Miss Estimates Cheesecake Factory reported lower-than-expected third-quarter fiscal 2023 results with earnings and revenues missing the Zacks Consensus Estimate. Earnings & Revenue Discussion In the quarter under review, the company reported adjusted earnings per share (EPS) of 39 cents, missing the Zacks Consensus Estimate of 42 cents by 7.1%. Solid Comps Growth In the reported quarter, comps at Cheesecake Factory restaurants rose 2.4% year over year (lower than our expectation of 3.4% growth) compared with 1.1% in the prior-year quarter.
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It has been about a month since the last earnings report for Cheesecake Factory (CAKE). Cheesecake Factory Q3 Earnings & Revenue Miss Estimates Cheesecake Factory reported lower-than-expected third-quarter fiscal 2023 results with earnings and revenues missing the Zacks Consensus Estimate. BJ's Restaurants reported revenues of $318.64 million in the last reported quarter, representing a year-over-year change of +2.3%.
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f14fe32f-c539-4268-b2a2-720da61f79ef
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715193.0
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2023-12-01 00:00:00 UTC
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Mondelez (MDLZ) Up 4.6% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/mondelez-mdlz-up-4.6-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for Mondelez (MDLZ). Shares have added about 4.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Mondelez due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Mondelez Ups View on Q3 Earnings Beat: Organic Sales Aid
Mondelez International delivered robust third-quarter 2023 results. Adjusted earnings were 82 cents per share, increasing 16.7% on a constant-currency (cc) basis. The metric surpassed the Zacks Consensus Estimate of 78 cents per share. The year-over-year upside was mainly backed by solid operating gains, reduced shares outstanding and lower interest expenses. These were somewhat offset by increased taxes, decreased benefit plan non-service income and reduced equity method investment net earnings.
Net revenues advanced 16.3% year over year to $9,029 million. The metric beat the Zacks Consensus Estimate of $8,678 million. The uptick was driven by strong organic net revenue growth of 15.7% and increased sales from Clif Bar and Ricolino buyouts, somewhat negated by currency headwinds.
Favorable pricing (up 11.9 percentage points or pp) and volumes (up 3.8 pp) contributed to organic net revenues. Our model suggested pricing and volume increases of 8.9% and 6.6% for the third quarter.
Revenues from emerging markets increased 14% to $3,527 million while rising 19% on an organic basis. Revenues from developed markets moved up 17.8% to $5,502 million while increasing 13.4% on an organic basis. We had expected a year-over-year net revenue increase from emerging markets and developed markets of 9.7% and 13.5%, respectively.
Region-wise, revenues in Latin America, Asia, the Middle East & Africa, Europe and North America increased 42.9%, 5.1%, 16.5% and 14% year over year, respectively. On an organic basis, revenues increased 35.1%, 11.9%, 15.4% and 11.4% in the abovementioned regions, respectively.
The adjusted gross profit increased by $648 million at cc. The adjusted gross profit margin expanded 120 (basis points) bps to 38.6% due to pricing, an improved product mix and reduced manufacturing expenses, partly negated by escalated raw material and transportation costs.
Mondelez’s adjusted operating income rose by $307 million at cc. The adjusted operating income margin expanded 60 bps to 16.7% on increased net pricing, SG&A leverage, a favorable product mix and reduced manufacturing costs stemming from productivity. These were somewhat offset by input cost inflation. Our model suggested the adjusted operating income margin to remain in line with the year-ago period at 16.1%.
Other Financials & Guidance
The company ended the quarter with cash and cash equivalents of $1,610 million, long-term debt of $16,411 million and total equity of $28,560 million. MDLZ provided $3,150 million of net cash from operating activities for the nine months ended Sep 30, 2023. Adjusted free cash flow was $2,370 million for the same period. Management expects a free cash flow of more than $3.3 billion for 2023. The company returned $0.6 billion to shareholders in cash dividends and share repurchases during the reported quarter.
Mondelez now expects 2023 organic net revenue growth of 14-15% compared with the growth of more than 12% projected earlier. The raised outlook takes into account the impressive year-to-date performance.
Management anticipates adjusted earnings per share (EPS) growth on a cc basis of more than 16%, up from more than 12% growth forecast before. Currency movements are likely to affect net revenues by nearly 4% and adjusted EPS by 15 cents in 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Mondelez has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Mondelez has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. The uptick was driven by strong organic net revenue growth of 15.7% and increased sales from Clif Bar and Ricolino buyouts, somewhat negated by currency headwinds. The adjusted gross profit margin expanded 120 (basis points) bps to 38.6% due to pricing, an improved product mix and reduced manufacturing expenses, partly negated by escalated raw material and transportation costs.
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We had expected a year-over-year net revenue increase from emerging markets and developed markets of 9.7% and 13.5%, respectively. The adjusted gross profit margin expanded 120 (basis points) bps to 38.6% due to pricing, an improved product mix and reduced manufacturing expenses, partly negated by escalated raw material and transportation costs. The adjusted operating income margin expanded 60 bps to 16.7% on increased net pricing, SG&A leverage, a favorable product mix and reduced manufacturing costs stemming from productivity.
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Revenues from developed markets moved up 17.8% to $5,502 million while increasing 13.4% on an organic basis. The adjusted operating income margin expanded 60 bps to 16.7% on increased net pricing, SG&A leverage, a favorable product mix and reduced manufacturing costs stemming from productivity. Other Financials & Guidance The company ended the quarter with cash and cash equivalents of $1,610 million, long-term debt of $16,411 million and total equity of $28,560 million.
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A month has gone by since the last earnings report for Mondelez (MDLZ). Net revenues advanced 16.3% year over year to $9,029 million. Mondelez now expects 2023 organic net revenue growth of 14-15% compared with the growth of more than 12% projected earlier.
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d8bd7050-a869-4c94-b26c-e5947329eafb
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715194.0
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2023-12-01 00:00:00 UTC
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Why Is Airbnb, Inc. (ABNB) Up 9.4% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-airbnb-inc.-abnb-up-9.4-since-last-earnings-report
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nan
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nan
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A month has gone by since the last earnings report for Airbnb, Inc. (ABNB). Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Airbnb, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Airbnb Q3 Earnings Beat Estimates, Revenues Up Y/Y
Airbnb reported third-quarter 2023 earnings of $2.39 per share, which jumped 33.5% year over year.
Revenues of $3.4 billion increased 18% on a reported basis and 14% on a forex-neutral basis, respectively, year over year.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growing Gross Booking Value (GBV) remained a tailwind.
Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers, remained positive. Increasing guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Strong momentum in active listings acted as a tailwind.
Quarterly Details
Nights and Experiences Booked were 113.2 million, up 14% on a year-over-year basis. The metric was driven by strong performances in all regions.
GBV amounted to $18.3 billion, which rose 17% from the prior-year quarter’s reported figure. GBV per Night and Experience Booked (or Average Daily Rates) was $161, which increased 3% on a year-over-year basis.
In the reported quarter, active listings increased 19% year over year. Airbnb’s total active listings are now more than 7 million. The company witnessed double-digit supply growth across all regions, with the most growth in Asia Pacific and Latin America.
In terms of trip length, the category of long-term stays of 28 days or more, which accounted for 18% of overall gross nights booked, remained positive. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights.
Guests traveling more than 3,000 miles increased 18% year over year. Cross-border represented 45% of total gross nights booked, up from 43% in the year-ago quarter.
Operating Results
Adjusted EBITDA was $1.8 billion, up 26% year over year.
Operations and support costs increased 9.9% year over year to $299 million. Product development expenses increased 5.6% year over year to $244 million.
Sales and marketing expenses rose 3.4% from the year-ago quarter’s figure to $367 million. General and administrative expenses were $243 million, up 29.9% year over year.
For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents and short-term investments amounted to $10.96 billion compared with $10.4 billion as of Jun 30, 2023.
Long-term debt, as of Sep 30, 2023, was $1.990 billion compared with $1.989 billion as of Jun 30, 2023.
Net cash provided by operating activities was $1.3 billion for the third quarter of 2023, significantly down from $909 million in the previous quarter.
Airbnb generated a free cash flow of $1.3 billion compared with $900 million in the previous quarter.
Guidance
For fourth-quarter 2023, the company expects revenues between $2.13 billion and $2.17 billion, implying year-over-year growth in the band of 12-14% on a reported basis.
Airbnb expects greater volatility in travel demand, subject to macroeconomic trends and geopolitical conflicts in the fourth quarter.
Adjusted EBITDA margin is expected to increase year over year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.98% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Airbnb, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers, remained positive. Airbnb expects greater volatility in travel demand, subject to macroeconomic trends and geopolitical conflicts in the fourth quarter.
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Airbnb Q3 Earnings Beat Estimates, Revenues Up Y/Y Airbnb reported third-quarter 2023 earnings of $2.39 per share, which jumped 33.5% year over year. In the reported quarter, active listings increased 19% year over year. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights.
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Airbnb Q3 Earnings Beat Estimates, Revenues Up Y/Y Airbnb reported third-quarter 2023 earnings of $2.39 per share, which jumped 33.5% year over year. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights. For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year.
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Airbnb Q3 Earnings Beat Estimates, Revenues Up Y/Y Airbnb reported third-quarter 2023 earnings of $2.39 per share, which jumped 33.5% year over year. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights. For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year.
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19dda391-19d7-413e-b392-d1efafd0f175
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715195.0
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2023-12-01 00:00:00 UTC
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Why Is Airbnb, Inc. (ABNB) Up 9.4% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-airbnb-inc.-abnb-up-9.4-since-last-earnings-report-0
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nan
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nan
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A month has gone by since the last earnings report for Airbnb, Inc. (ABNB). Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Airbnb, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Airbnb Q3 Earnings Beat Estimates, Revenues Up Y/Y
Airbnb reported third-quarter 2023 earnings of $2.39 per share, which jumped 33.5% year over year.
Revenues of $3.4 billion increased 18% on a reported basis and 14% on a forex-neutral basis, respectively, year over year.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growing Gross Booking Value (GBV) remained a tailwind.
Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers, remained positive. Increasing guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Strong momentum in active listings acted as a tailwind.
Quarterly Details
Nights and Experiences Booked were 113.2 million, up 14% on a year-over-year basis. The metric was driven by strong performances in all regions.
GBV amounted to $18.3 billion, which rose 17% from the prior-year quarter’s reported figure. GBV per Night and Experience Booked (or Average Daily Rates) was $161, which increased 3% on a year-over-year basis.
In the reported quarter, active listings increased 19% year over year. Airbnb’s total active listings are now more than 7 million. The company witnessed double-digit supply growth across all regions, with the most growth in Asia Pacific and Latin America.
In terms of trip length, the category of long-term stays of 28 days or more, which accounted for 18% of overall gross nights booked, remained positive. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights.
Guests traveling more than 3,000 miles increased 18% year over year. Cross-border represented 45% of total gross nights booked, up from 43% in the year-ago quarter.
Operating Results
Adjusted EBITDA was $1.8 billion, up 26% year over year.
Operations and support costs increased 9.9% year over year to $299 million. Product development expenses increased 5.6% year over year to $244 million.
Sales and marketing expenses rose 3.4% from the year-ago quarter’s figure to $367 million. General and administrative expenses were $243 million, up 29.9% year over year.
For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents and short-term investments amounted to $10.96 billion compared with $10.4 billion as of Jun 30, 2023.
Long-term debt, as of Sep 30, 2023, was $1.990 billion compared with $1.989 billion as of Jun 30, 2023.
Net cash provided by operating activities was $1.3 billion for the third quarter of 2023, significantly down from $909 million in the previous quarter.
Airbnb generated a free cash flow of $1.3 billion compared with $900 million in the previous quarter.
Guidance
For fourth-quarter 2023, the company expects revenues between $2.13 billion and $2.17 billion, implying year-over-year growth in the band of 12-14% on a reported basis.
Airbnb expects greater volatility in travel demand, subject to macroeconomic trends and geopolitical conflicts in the fourth quarter.
Adjusted EBITDA margin is expected to increase year over year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.98% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Airbnb, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers, remained positive. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers, remained positive. In the reported quarter, active listings increased 19% year over year. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights.
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Airbnb Q3 Earnings Beat Estimates, Revenues Up Y/Y Airbnb reported third-quarter 2023 earnings of $2.39 per share, which jumped 33.5% year over year. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights. For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year.
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Airbnb Q3 Earnings Beat Estimates, Revenues Up Y/Y Airbnb reported third-quarter 2023 earnings of $2.39 per share, which jumped 33.5% year over year. For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research?
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e8af0248-3f2e-46c5-836b-bb7eb7439dc0
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715196.0
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2023-12-01 00:00:00 UTC
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ProPetro (PUMP) Down 10% Since Last Earnings Report: Can It Rebound?
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DCOMP
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https://www.nasdaq.com/articles/propetro-pump-down-10-since-last-earnings-report%3A-can-it-rebound
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nan
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nan
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It has been about a month since the last earnings report for ProPetro Holding (PUMP). Shares have lost about 10% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ProPetro due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ProPetro Q3 Earnings and Revenues Beat Estimates
ProPetro Holding reported third-quarter 2023 earnings per share of 31 cents, which beat the Zacks Consensus Estimate of 29 cents. The outperformance could be primarily attributed to improved pricing and increased activity in the reported quarter.
The bottom line, however, declined from the year-ago quarter’s reported level of 38 cents due to an 18.7% year-over-year increase in costs and expenses.
Revenues of $423.8 million beat the consensus mark of $411 million. The figure also improved 27.3% from the year-ago quarter’s level of $333 million. This was due to improved pricing and fleet repositioning, additional net pricing gains, a favorable job mix and strong Hydraulic Fracturing performance.
Adjusted EBITDA amounted to $107.7, down 4.5% from $112.8 million in the previous quarter. The reported figure also missed our estimate of $107.1 million. This underperformance was primarily due to lower activity and pricing during the quarter.
Pressure Pumping
ProPetro provides hydraulic fracturing, cementing and acidizing functions through its Pressure Pumping segment. The business contributed 100% to PUMP's total revenues in the quarter under review. Service revenues from this unit surged about 28.8% to $423.8 million from the prior-year quarter’s level. This was mainly due to higher fleet strength and enhanced pricing. The figure beat our estimate of $407.3 million.
Costs & Financial Position
Total costs and expenses were $379.1 million for the third quarter, up 18.7% from the prior-year quarter’s level. The service cost was $292.5 million compared with $224.1 million in the comparable period of 2022.
The company recorded $59 million capital expenditure. It also reported positive free cash flow of $27 million.
As of Sep 30, PUMP had approximately $54 million in cash and cash equivalents. Including cash and $126 million under its revolving credit facility, the company had total liquidity worth $180 million at September-end 2023. Long-term debt amounted to $45 million. The total debt-to-total capital was 4.6%.
Guidance
ProPetro expects effective fleet utilization to be in the range of 13-14 for the fourth half of 2023.
It anticipates total incurred capital expenditures to be slightly more than $300 million in 2023 compared with $365 million in 2022.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -51.39% due to these changes.
VGM Scores
Currently, ProPetro has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise ProPetro has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. The bottom line, however, declined from the year-ago quarter’s reported level of 38 cents due to an 18.7% year-over-year increase in costs and expenses. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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ProPetro Q3 Earnings and Revenues Beat Estimates ProPetro Holding reported third-quarter 2023 earnings per share of 31 cents, which beat the Zacks Consensus Estimate of 29 cents. The bottom line, however, declined from the year-ago quarter’s reported level of 38 cents due to an 18.7% year-over-year increase in costs and expenses. Click to get this free report ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ProPetro Q3 Earnings and Revenues Beat Estimates ProPetro Holding reported third-quarter 2023 earnings per share of 31 cents, which beat the Zacks Consensus Estimate of 29 cents. Costs & Financial Position Total costs and expenses were $379.1 million for the third quarter, up 18.7% from the prior-year quarter’s level. Click to get this free report ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has been about a month since the last earnings report for ProPetro Holding (PUMP). ProPetro Q3 Earnings and Revenues Beat Estimates ProPetro Holding reported third-quarter 2023 earnings per share of 31 cents, which beat the Zacks Consensus Estimate of 29 cents. Costs & Financial Position Total costs and expenses were $379.1 million for the third quarter, up 18.7% from the prior-year quarter’s level.
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ba23e569-ec56-4452-a8e7-414c3b41c366
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715197.0
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2023-12-01 00:00:00 UTC
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Why Is Qualcomm (QCOM) Up 10% Since Last Earnings Report?
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DCOMP
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https://www.nasdaq.com/articles/why-is-qualcomm-qcom-up-10-since-last-earnings-report
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nan
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nan
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It has been about a month since the last earnings report for Qualcomm (QCOM). Shares have added about 10% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Qualcomm due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Qualcomm Beats on Q4 Earnings Despite Lower Revenues
Qualcomm reported relatively soft fourth-quarter fiscal 2023 results owing to a challenging macroeconomic environment, inflationary pressures and soft recovery in China, resulting in lower-than-expected demand and elevated inventory levels. Although the bottom and top line beat the respective Zacks Consensus Estimate, both metrics declined year over year despite the strength of the business model, revenue diversification and the ability to respond proactively to the evolving market scenario. However, shares were up post-earnings release owing to a bullish outlook due to early signs of market stabilization and recovery in demand.
Net Income
On a GAAP basis, net income in the September quarter declined to $1,489 million or $1.32 per share from $2,873 million or $2.54 per share in the prior-year quarter. The decrease in GAAP earnings was primarily attributable to top-line contraction.
Quarterly non-GAAP net income came in at $2,277 million or $2.02 per share compared with $3,548 million or $3.13 per share in the year-ago quarter due to lower-than-expected revenues owing to soft demand trends. The bottom line beat the Zacks Consensus Estimate by 10 cents.
Revenues
On a GAAP basis, total revenues in the fiscal fourth quarter were $8,631 million compared with $11,396 million in the prior-year quarter. The quarterly revenues beat the consensus mark of $8,550 million. Despite solid automotive revenues, the top line decreased on soft industrial IoT demand patterns and elevated inventory levels within the handset business owing to market uncertainty and macroeconomic woes. High inflationary pressures and soft economic recovery in China further compounded the problems. However, Qualcomm witnessed strong momentum in the Snapdragon portfolio within the automotive sector. Non-GAAP revenues in the reported quarter were $8,665 million compared with $11,387 million in the year-earlier quarter.
Segment Results
Quarterly revenues from Qualcomm CDMA Technologies (QCT) declined 26% year over year to $7,374 million, as strength in the automotive platform was more than offset by lower demand in handsets and channel inventory drawdown within the IoT business. The segment’s revenues exceeded our revenue estimates of $7,231.7 million. Despite solid potential in the EDGE networking business that helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets, the company witnessed lower demand owing to an uncertain landscape.
Automotive revenues rose 15% to $535 million, while handset and IoT revenues were down 27% and 31%, respectively, to $5,456 million and $1,383 million. This was the 12th consecutive quarter in which Qualcomm recorded double-digit growth in automotive revenues. EBT margin for the QCT segment decreased to 26% from 34%.
Qualcomm Technology Licensing (QTL) revenues totaled $1,262 million, down 12% year over year due to lower licensing revenues. The segment’s revenues missed our estimates of $1,269.3 million. EBT margin declined to 66% from 69%.
Cash Flow & Liquidity
Qualcomm generated $4,090 million of net cash from operating activities in the fiscal fourth quarter compared with $1,446 million a year ago, bringing the respective tallies for fiscal 2023 and fiscal 2022 to $11,299 million and $9,096 million. At fiscal 2023-end, the company had $8,450 million in cash and cash equivalents and $14,484 million of long-term debt compared with respective tallies of $2,773 million and $13,537 million in fiscal 2022. The company repurchased 4 million shares for $400 million during the quarter.
Q1 Guidance
For the first quarter of fiscal 2024, Qualcomm expects GAAP revenues of $9.1-$9.9 billion due to early signs of market stabilization, recovery in market demand with the upcoming holiday season and portfolio strength. Non-GAAP earnings are projected to be $2.25-$2.45 per share, while GAAP earnings are likely to be $1.82-$2.02 per share. Revenues from QTL are expected to be between $1.3 billion and $1.5 billion. For QCT, the company anticipates revenues between $7.7 billion and $8.3 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Qualcomm has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Qualcomm has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Qualcomm belongs to the Zacks Wireless Equipment industry. Another stock from the same industry, Nokia (NOK), has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Nokia reported revenues of $5.42 billion in the last reported quarter, representing a year-over-year change of -13.8%. EPS of $0.05 for the same period compares with $0.10 a year ago.
For the current quarter, Nokia is expected to post earnings of $0.15 per share, indicating a change of -6.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.2% over the last 30 days.
Nokia has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Nokia Corporation (NOK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. However, shares were up post-earnings release owing to a bullish outlook due to early signs of market stabilization and recovery in demand. Despite solid automotive revenues, the top line decreased on soft industrial IoT demand patterns and elevated inventory levels within the handset business owing to market uncertainty and macroeconomic woes.
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Qualcomm reported relatively soft fourth-quarter fiscal 2023 results owing to a challenging macroeconomic environment, inflationary pressures and soft recovery in China, resulting in lower-than-expected demand and elevated inventory levels. Despite solid automotive revenues, the top line decreased on soft industrial IoT demand patterns and elevated inventory levels within the handset business owing to market uncertainty and macroeconomic woes. Q1 Guidance For the first quarter of fiscal 2024, Qualcomm expects GAAP revenues of $9.1-$9.9 billion due to early signs of market stabilization, recovery in market demand with the upcoming holiday season and portfolio strength.
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Quarterly non-GAAP net income came in at $2,277 million or $2.02 per share compared with $3,548 million or $3.13 per share in the year-ago quarter due to lower-than-expected revenues owing to soft demand trends. Revenues On a GAAP basis, total revenues in the fiscal fourth quarter were $8,631 million compared with $11,396 million in the prior-year quarter. Cash Flow & Liquidity Qualcomm generated $4,090 million of net cash from operating activities in the fiscal fourth quarter compared with $1,446 million a year ago, bringing the respective tallies for fiscal 2023 and fiscal 2022 to $11,299 million and $9,096 million.
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Quarterly non-GAAP net income came in at $2,277 million or $2.02 per share compared with $3,548 million or $3.13 per share in the year-ago quarter due to lower-than-expected revenues owing to soft demand trends. Non-GAAP revenues in the reported quarter were $8,665 million compared with $11,387 million in the year-earlier quarter. Segment Results Quarterly revenues from Qualcomm CDMA Technologies (QCT) declined 26% year over year to $7,374 million, as strength in the automotive platform was more than offset by lower demand in handsets and channel inventory drawdown within the IoT business.
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c582a7f2-4946-4130-8b44-f61837f48506
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715198.0
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2023-12-01 00:00:00 UTC
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Radian (RDN) Down 3% Since Last Earnings Report: Can It Rebound?
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DCOMP
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https://www.nasdaq.com/articles/radian-rdn-down-3-since-last-earnings-report%3A-can-it-rebound-0
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nan
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nan
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It has been about a month since the last earnings report for Radian (RDN). Shares have lost about 3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Radian due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Radian Group Q3 Earnings Top, Insurance in Force Rises
Radian Group Inc. reported third-quarter 2023 adjusted operating income of $1.04 per share, which beat the Zacks Consensus Estimate by 31.6%. However, the bottom line decreased 20.6% year over year.
Operating revenues increased 6.5% year over year to $311 million due to higher net premiums earned and services revenues. The metric beat the Zacks Consensus Estimate by 6.4%. The results reflect the strength of the business model and the insured portfolio.
Quarter in Details
Net premiums earned were $237 million, up 0.9% year over year. Net investment income increased 33.9% year over year to $68.8 million. MI New Insurance Written decreased 21% year over year to $13.9 billion. Primary mortgage insurance in force in force increased 4% year over year to $269.5 billion, reflecting a 7% increase in monthly premium policy insurance in force and a 12% decline in single premium policy insurance in force.
Persistency — the percentage of mortgage insurance in force that remains in the company’s books after a 12-month period — was 84% as of Sep 30, 2023, up 200 basis points (bps) year over year. Primary delinquent loans were 20,406 as of Jun 30, 2023, down 3.2% year over year.
Total expenses doubled year over year to $112.6 million. The expense ratio was 23.4, down 270 bps from the year-ago quarter.
Segmental Update
The Mortgage segment reported a year-over-year increase of 2.7% in total revenues to $288.6 million. Net premiums earned by the segment were $236.8 million, up 0.7% year over year. Claims paid were $5 million, flat year over year. The loss ratio was negative 3.5 compared with negative 41.5 in the year-ago quarter.
The homegenius segment’s revenues of $15 million decreased 40% year over year. Net premiums earned by the segment were $3.5 million, which decreased 31.1% year over year. Adjusted pre-tax operating loss was $21 million, narrower than the prior-year quarter loss of $26 million.
Financial Update
As of Sep 30, 2023, Radian Group solid cash balance of $55.5 million, reflecting an increase of 0.4% from the 2022 end level. The debt-to-capital ratio improved 110 bps to 25.4 from the 2022-end level. Book value per share, a measure of net worth, climbed 12.1% year over year to $26.69 as of Sep 30, 2023. In the third quarter, adjusted net operating return on equity was 16%, which deteriorated 650 bps year over year. As of Sep 30, 2023, Radian Guaranty’s Available Assets under PMIERs totaled approximately $5.8 billion, resulting in PMIERs excess Available Assets of $1.7 billion.
Share Repurchase and Dividend Update
Radian bought back 1.9 million shares worth $50 million, including commissions, in the third quarter. The remaining repurchase capacity was $230 million as of Sep 30, 2023. The board of directors paid a quarterly dividend of 22.5 cents per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Radian has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Radian has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Radian belongs to the Zacks Insurance - Multi line industry. Another stock from the same industry, Assurant (AIZ), has gained 2.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Assurant reported revenues of $2.79 billion in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $4.29 for the same period compares with $1.01 a year ago.
For the current quarter, Assurant is expected to post earnings of $3.63 per share, indicating a change of +12.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.2% over the last 30 days.
Assurant has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Radian Group Inc. (RDN) : Free Stock Analysis Report
Assurant, Inc. (AIZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Financial Update As of Sep 30, 2023, Radian Group solid cash balance of $55.5 million, reflecting an increase of 0.4% from the 2022 end level. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things.
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Radian Group Inc. reported third-quarter 2023 adjusted operating income of $1.04 per share, which beat the Zacks Consensus Estimate by 31.6%. Primary mortgage insurance in force in force increased 4% year over year to $269.5 billion, reflecting a 7% increase in monthly premium policy insurance in force and a 12% decline in single premium policy insurance in force. Click to get this free report Radian Group Inc. (RDN) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Quarter in Details Net premiums earned were $237 million, up 0.9% year over year. Primary mortgage insurance in force in force increased 4% year over year to $269.5 billion, reflecting a 7% increase in monthly premium policy insurance in force and a 12% decline in single premium policy insurance in force. Click to get this free report Radian Group Inc. (RDN) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has been about a month since the last earnings report for Radian (RDN). Radian Group Inc. reported third-quarter 2023 adjusted operating income of $1.04 per share, which beat the Zacks Consensus Estimate by 31.6%. Assurant has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions.
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987453c4-9a7d-4f2f-9ad7-98101cf631cc
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715199.0
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2023-12-01 00:00:00 UTC
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Clean Harbors (CLH) Up 4.3% Since Last Earnings Report: Can It Continue?
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DCOMP
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https://www.nasdaq.com/articles/clean-harbors-clh-up-4.3-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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It has been about a month since the last earnings report for Clean Harbors (CLH). Shares have added about 4.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Clean Harbors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Clean Harbors' Q3 Earnings Miss Estimates
Clean Harbors, Inc. reported disappointing third-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate.
The investors, however, seem to be unaffected by such earnings miss as the stock rose 4.9% since the earnings release on Nov 1.
Adjusted earnings per share of $1.68 missed the Zacks Consensus Estimate by 18.8% and declined from the year-ago quarter’s figure by 30.9%. Total revenues of $1.37 billion missed the consensus estimate by 2.1% but grew slightly on a year-over-year basis.
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services’ (ES) revenues of $1.15 billion grew 5.5% year over year, surpassing our estimated $1.11 billion. The uptick was backed by higher volumes of high-value waste streams, pricing initiatives and strength in its Industrial Services businesses.
Safety-Kleen Sustainability Solutions’ (SKSS) revenues of $219.2 million declined 20.7% year over year, missing our estimated $271.6 million.
Profitability Performance
Adjusted EBITDA of $255 million decreased 17.4% year over year and missed our estimated $277.8 million. The adjusted EBITDA margin declined to 18.7% from 22.6% in the year-ago quarter.
Segment-wise, ES’ adjusted EBITDA was $288.98 million, up 10.9% year over year. SKSS’ adjusted EBITDA was $31.16 million, down 69.8% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited third-quarter 2023 with cash and cash equivalents of $336 million compared with $238.8 million at the end of the prior quarter. Inventories and supplies were $311.5 million compared with $325.9 million in the prior quarter. Long-term debt was $2.29 billion, flat compared with the prior quarter’s figure.
CLH generated $220.12 million in net cash from operating activities in the reported quarter. Capital expenditure was $107.61 million. Adjusted free cash flow was $114.7 million.
Guidance
For 2023, adjusted EBITDA is anticipated to be between $1.01 billion and $1.03 billion.
Adjusted free cash flow for the current year is expected between $300 million and $330 million. Net cash from operating activities is projected in the range of $700-$750 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Clean Harbors has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Clean Harbors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Clean Harbors belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Waste Connections (WCN), has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Waste Connections reported revenues of $2.06 billion in the last reported quarter, representing a year-over-year change of +9.8%. EPS of $1.17 for the same period compares with $1.10 a year ago.
For the current quarter, Waste Connections is expected to post earnings of $1.08 per share, indicating a change of +21.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
Waste Connections has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Clean Harbors, Inc. (CLH) : Free Stock Analysis Report
Waste Connections, Inc. (WCN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. The uptick was backed by higher volumes of high-value waste streams, pricing initiatives and strength in its Industrial Services businesses. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Clean Harbors' Q3 Earnings Miss Estimates Clean Harbors, Inc. reported disappointing third-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Balance Sheet & Cash Flow Clean Harbors exited third-quarter 2023 with cash and cash equivalents of $336 million compared with $238.8 million at the end of the prior quarter. Click to get this free report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Clean Harbors' Q3 Earnings Miss Estimates Clean Harbors, Inc. reported disappointing third-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Profitability Performance Adjusted EBITDA of $255 million decreased 17.4% year over year and missed our estimated $277.8 million. Click to get this free report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It has been about a month since the last earnings report for Clean Harbors (CLH). Clean Harbors' Q3 Earnings Miss Estimates Clean Harbors, Inc. reported disappointing third-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Adjusted free cash flow for the current year is expected between $300 million and $330 million.
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b28e247e-c5db-40c4-9712-3d93231ca4c5
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