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9800.0
|
2017-08-25 00:00:00 UTC
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Avnet Eyes Small Manufacturers with Dragon Innovation Buyout
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AAOI
|
https://www.nasdaq.com/articles/avnet-eyes-small-manufacturers-with-dragon-innovation-buyout-2017-08-25
|
nan
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nan
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In a move to further expand its presence and product offerings for the hardware developer community, Avnet Inc.AVT recently acquired Dragon Innovation, a manufacturing consultancy and software vendor. However, financial terms of the deal remain undisclosed.
Founded in 2009, Cambridge, Massachusetts-based Dragon Innovation helps entrepreneurs easily move from design to prototype to full-scale manufacturing process with lower risk. Per Avnet, "Dragon Innovation's proven process and deep hardware experience help customers understand manufacturing costs and schedules, find factories and manage production as they scale their businesses." The company has 30 employees in the offices of Boston, and ShenZhen and Hong Kong, China.
By integrating Dragon Innovation's cloud-based Product Planner, Avnet will be able to enhance its offerings to smaller manufacturers and help them by navigating the complex process of bringing new technology to the marketplace.
Avnet's recent move is seen as part of its strategy to expand its presence in the Internet of Things (IoT) space. Although Dragon Innovation's tools can be used by IoT, as well as non-IoT manufacturers, Avnet is more inclined toward supporting the IoT space. This is because Dragon Innovation enjoys strong presence in the IoT space, offering its services to a wide range of industries, including home automation, wearables, robotics and automotive.
Therefore, in our opinion, this acquisition will enable Avnet in providing powerful, simple-to-use tools to engineers which will enable them to manufacture and roll out hardware products in a more fast and cost-effective manner.
Notably, Avnet has been trying to use its resources to make investments in embedded solutions, IoT and critical digital platforms, as well as expand its footprint in newer markets, for the last one year.
On the IoT front, the company has made several partnerships with the likes of AT&T T , as well as acquisitions, such as Premier Farnell and Hackster.io, to enhance its capabilities in this space. Per the company, the aforementioned acquisitions have expanded its "reach to more than two million customers and an active community of more than 750,000 entrepreneurs, makers and engineers."
This makes Dragon Innovation's acquisition more strategically fit for Avnet, in our opinion, as the company will now have more standardized tools to serve this large number of entrepreneurs, makers and engineer community base.
The scope of IoT has made this space more lucrative for organizations. The IoT platform is anticipated to include billions of connected devices and systems, with applications ranging from sensors and mobile devices to home appliances and cars. According to research firm IDC, per the Wall Street Journal, the IoT market could nearly triple in the coming years. In 2014, the global IoT market was worth $655.8 billion and is expected to reach $1.7 trillion by 2020.
Notably, Avnet's shares have not performed well so far this year. The stock has lost 22.4% of its value year to date, while its industry incurred a loss of 11%.
Some better-ranked stocks in the broader technology sector are Arrow Electronics Inc. ARW and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Arrow Electronics and Applied Optoelectronics have long-term estimated EPS growth rates of 10.1% and 17.5%, respectively.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
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
AT&T Inc. (T): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Arrow Electronics, Inc. (ARW): Free Stock Analysis 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some better-ranked stocks in the broader technology sector are Arrow Electronics Inc. ARW and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report AT&T Inc. (T): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report To read this article on Zacks.com click here. Per Avnet, "Dragon Innovation's proven process and deep hardware experience help customers understand manufacturing costs and schedules, find factories and manage production as they scale their businesses."
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Some better-ranked stocks in the broader technology sector are Arrow Electronics Inc. ARW and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report AT&T Inc. (T): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report To read this article on Zacks.com click here. In a move to further expand its presence and product offerings for the hardware developer community, Avnet Inc.AVT recently acquired Dragon Innovation, a manufacturing consultancy and software vendor.
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Click to get this free report AT&T Inc. (T): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology sector are Arrow Electronics Inc. ARW and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy). Although Dragon Innovation's tools can be used by IoT, as well as non-IoT manufacturers, Avnet is more inclined toward supporting the IoT space.
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Some better-ranked stocks in the broader technology sector are Arrow Electronics Inc. ARW and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report AT&T Inc. (T): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report To read this article on Zacks.com click here. In a move to further expand its presence and product offerings for the hardware developer community, Avnet Inc.AVT recently acquired Dragon Innovation, a manufacturing consultancy and software vendor.
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a7854682-e75e-4052-bb6c-928ed34b7da7
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9801.0
|
2017-08-25 00:00:00 UTC
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Babcock & Wilcox (BW) Looks Good: Stock Adds 10.7% in Session
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AAOI
|
https://www.nasdaq.com/articles/babcock-wilcox-bw-looks-good%3A-stock-adds-10.7-in-session-2017-08-25
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nan
|
nan
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Babcock & Wilcox Enterprises, Inc.BW was a big mover last session, as the company saw its shares rise over 10% on the day. This reverses the recent trend for the company-as the stock is now down 82.46% in the past one-month time frame.
The company has seen one negative estimate revisions in the past few weeks, while its Zacks Consensus Estimate for the current quarter has also moved lower over the past few weeks, suggesting there may be trouble down the road. So make sure to keep an eye on this stock going forward, to see if this recent move higher can last.
Babcock & Wilcox currently has a Zacks Rank #5 (Strong Sell) while its Earnings ESP is 0.00%.
Babcock Price
Babcock Price | Babcock Quote
Another stock worth considering in the Computer and Technology sector is Applied Optoelectronics, Inc. AAOI which carries a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here .
Is BW going up? Or down? Predict to see what others think: Up or Down
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really take off.
See Stocks Now>>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Babcock (BW): 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.
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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Babcock Price Babcock Price | Babcock Quote Another stock worth considering in the Computer and Technology sector is Applied Optoelectronics, Inc. AAOI which carries a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Babcock (BW): Free Stock Analysis Report To read this article on Zacks.com click here. Babcock & Wilcox Enterprises, Inc.BW was a big mover last session, as the company saw its shares rise over 10% on the day.
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Babcock Price Babcock Price | Babcock Quote Another stock worth considering in the Computer and Technology sector is Applied Optoelectronics, Inc. AAOI which carries a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Babcock (BW): 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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Babcock Price Babcock Price | Babcock Quote Another stock worth considering in the Computer and Technology sector is Applied Optoelectronics, Inc. AAOI which carries a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Babcock (BW): 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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Babcock Price Babcock Price | Babcock Quote Another stock worth considering in the Computer and Technology sector is Applied Optoelectronics, Inc. AAOI which carries a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Babcock (BW): Free Stock Analysis Report To read this article on Zacks.com click here. This reverses the recent trend for the company-as the stock is now down 82.46% in the past one-month time frame.
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994c5fb9-a2f8-42ea-9a89-04ae8bd98036
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9802.0
|
2017-08-24 00:00:00 UTC
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Seagate (STX) Hits New 52-week Low on Dismal Q4 Results
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AAOI
|
https://www.nasdaq.com/articles/seagate-stx-hits-new-52-week-low-on-dismal-q4-results-2017-08-24
|
nan
|
nan
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Share price of Seagate Technology PLCSTX dropped to a new 52-week low of $30.60 yesterday, eventually closing a tad bit higher at $31.01.
The underperformance can be attributed to the company's disappointing fourth-quarter fiscal 2017 results. Non-GAAP earnings plunged 41% on a sequential basis, primarily due to a 10% decline in revenues. Revenues amounted to $2.41 billion, which missed the Zacks Consensus Estimate of $2.55 billion.
We note that this pulled down current year earnings estimates over the last 30 days. The Zacks Consensus Estimate for fiscal 2018 declined 18.04% to $3.86 over the last 30 days. For fiscal 2019, the consensus estimate declined 11.9% to $4.07.
Seagate has lost 16.4% of its value year to date against 11.6% growth of its industry .
What's Dragging it Down?
The decline in the top line was primarily due to sluggish revenues from enterprise storage customers. This includes traditional OEM nearline and mission critical demand, China CSP nearline demand, and the company's own Cloud Storage Systems business.
Moreover, certain intra quarter channel inventory management issues affected the surveillance and NAS markets. Revenues fell 5% short from expectations and management attributed this to the above mentioned factors.
Seagate Technology PLC Revenue (TTM)
Seagate Technology PLC Revenue (TTM) | Seagate Technology PLC Quote
Additionally, due to operational issues in the Cloud Systems and Silicon Group (CSSG) division and unfavorable enterprise and surveillance HDD portfolio mix, margins were under pressure. Management also noted that the company is not heading toward achieving the previous guidance of non-GAAP earnings per share of $4.50 for 2017.
We believe, all these coupled with intensifying competition in the market post the merger of Western Digital WDC and SanDisk are headwinds for the company. Further, declining demand in the PC market as evident from Gartner and IDC's recently released worldwide PC shipments data is a major concern for Seagate.
Zacks Rank and Stocks to Consider
Seagate has a Zacks Rank #3 (Hold).
Applied Materials, Inc. AMAT and Applied Optoelectronics AAOI are two top-ranked stocks worth considering in the broader sector. Both of them sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here
The long-term earnings growth rate for Applied Materials and Applied Optoelectronics is projected to be 16.6% and 17.5% respectively.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
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
Western Digital Corporation (WDC): Free Stock Analysis Report
Seagate Technology PLC (STX): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Applied Materials, Inc. AMAT and Applied Optoelectronics AAOI are two top-ranked stocks worth considering in the broader sector. Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Share price of Seagate Technology PLCSTX dropped to a new 52-week low of $30.60 yesterday, eventually closing a tad bit higher at $31.01.
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Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Materials, Inc. AMAT and Applied Optoelectronics AAOI are two top-ranked stocks worth considering in the broader sector. Seagate Technology PLC Revenue (TTM) Seagate Technology PLC Revenue (TTM) | Seagate Technology PLC Quote Additionally, due to operational issues in the Cloud Systems and Silicon Group (CSSG) division and unfavorable enterprise and surveillance HDD portfolio mix, margins were under pressure.
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Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Materials, Inc. AMAT and Applied Optoelectronics AAOI are two top-ranked stocks worth considering in the broader sector. Seagate Technology PLC Revenue (TTM) Seagate Technology PLC Revenue (TTM) | Seagate Technology PLC Quote Additionally, due to operational issues in the Cloud Systems and Silicon Group (CSSG) division and unfavorable enterprise and surveillance HDD portfolio mix, margins were under pressure.
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Applied Materials, Inc. AMAT and Applied Optoelectronics AAOI are two top-ranked stocks worth considering in the broader sector. Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for fiscal 2018 declined 18.04% to $3.86 over the last 30 days.
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4cbc3c77-b96e-4f4b-ab9d-6576e095f937
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9803.0
|
2017-08-24 00:00:00 UTC
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Arrow Electronics Rides on Broad Product Portfolio & Buyouts
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AAOI
|
https://www.nasdaq.com/articles/arrow-electronics-rides-on-broad-product-portfolio-buyouts-2017-08-24
|
nan
|
nan
|
On Aug 24, we issued an updated research report on New York-based Arrow Electronics Inc . ARW .
The company is one of the world's largest distributors of electronic components and enterprise computing products to industrial and commercial customers. The company is on a growth trajectory, gathering momentum from its positive earnings surprise history and strong fundamentals.
Notably, the company has beaten the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 1.19%.
The company reported strong fiscal second-quarter 2017 results. The top- as well as the bottom line surpassed the respective Zacks Consensus Estimate and improved significantly year over year. Management also provided optimistic guidance for the third quarter.
The Zacks Consensus Estimate for Arrow moved upward following the solid quarterly results and impressive outlook, which reflects the optimistic view of analysts. In the past 30 days, earnings estimates for the third quarter increased 5.2% to $1.81. For 2017, the Zacks Consensus Estimate moved up 1.1% to $7.30 over the same time frame.
We believe that the impressive results and the guidance will help sustain the stock's momentum. Notably, shares of Arrow have gained 14.7% in the last year, significantly outperforming the industry's loss of 0.2%.
Fundamentals Driving Growth
Arrow's core strength in providing best-in-class services and easy-to-acquire technologies are anticipated to positively impact its top line over the long-run. The company has secured significant market share through its broad portfolio of products and services, which include ArrowSphere, UC in the Cloud solutions, engineering design capabilities and remote infrastructure-management (Live Virtual Help Desk) services.
The company's continuous efforts to maximize consumer satisfaction have resulted in original equipment manufacturers, contract manufacturers and commercial customers selecting Arrow's distribution channels for marketing their products.
Additionally, Arrow's persistent acquisitions enable it to enter markets, diversify and broaden its product portfolio and maintain its leading position, thereby significantly contributing to its revenue stream. Incremental sales from strategic acquisitions such as Computerlinks are anticipated to boost the top line.
Arrow Electronics, Inc. Price and Consensus
Arrow Electronics, Inc. Price and Consensus | Arrow Electronics, Inc. Quote
Zacks Rank & Other Stocks to Consider
Arrow currently carries a Zacks Rank #2 (Buy).
Some other stocks worth considering in the broader technology sector include Applied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Applied Optoelectronics, Lam Research and IPG Photonics is projected to be 17.5%, 17.2% and 19.7%, respectively.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Arrow Electronics, Inc. (ARW): Free Stock Analysis Report
IPG Photonics Corporation (IPGP): Free Stock Analysis Report
Lam Research Corporation (LRCX): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some other stocks worth considering in the broader technology sector include Applied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Fundamentals Driving Growth Arrow's core strength in providing best-in-class services and easy-to-acquire technologies are anticipated to positively impact its top line over the long-run.
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Some other stocks worth considering in the broader technology sector include Applied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Arrow Electronics, Inc. Price and Consensus Arrow Electronics, Inc. Price and Consensus | Arrow Electronics, Inc. Quote Zacks Rank & Other Stocks to Consider Arrow currently carries a Zacks Rank #2 (Buy).
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Some other stocks worth considering in the broader technology sector include Applied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for Arrow moved upward following the solid quarterly results and impressive outlook, which reflects the optimistic view of analysts.
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Some other stocks worth considering in the broader technology sector include Applied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the company has beaten the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 1.19%.
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4fd16ebe-11c8-4a6a-998c-650d9fc1f16e
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9804.0
|
2017-08-24 00:00:00 UTC
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Lumentum et al: Don't Celebrate China Orders Yet, Say Needham, B. Riley
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AAOI
|
https://www.nasdaq.com/articles/lumentum-et-al-dont-celebrate-china-orders-yet-say-needham-b-riley-2017-08-24
|
nan
|
nan
|
Shares of fiber-optic component vendors continue to be on the march this morning, in early trading, following word yesterday afternoonChina Mobile (CHL) has put out a "tender" for a large purchase of optical gear, perhaps signaling some relief to the vendors, who've struggled all year with a slowdown in the Chinese market.
Shares of Lumentum Holdings (LITE) are up $1.30, or 2%, at $57.30, Finisar (FNSR) is up 70 cents, or 2.8%, at $25.38, Oclaro (OCLR) is up 38 cents, over 4%, at $9.12; and Applied Optoelectronics (AAOI) is up $1.38, or 2%, at $64.89.
However, analysts today are writing that while this could be important, they don't have enough detail yet to confirm the impact.
Needham & Co.'s Alex Henderson, who follows many of the vendors, writes that he has "reached out to the various companies in the category to confirm, scale and detail the timing," and he's been able to the "order being let" but that "the details remain sketchy."
"Based on the port detail, we think this contract would translate to between $200-$400 million in coherent component demand and $50-$100 million in Access components," he writes.
His conclusion is that it's "too early to pen this demand in for calendar Q4," and that "we could use more proof of clarity of scale and timing."
He does offer that with inventories relatively low in optical overall, a big order could see its impact "amplified":
China has been soft as we have waited for demand to pick up over the last 2-3 quarters. After over building inventory in late CY16, Huawei in particular, but also ZTE and FiberHome have been drawing down inventory. Normal inventory levels are roughly 50% of a quarter. At the beginning of the year, we estimate inventory reach almost a full quarter's worth. However, these reductions have lowered inventory to roughly 1 month or less. As demand rebounds it is likely to cause some inventory rebuild.
B. Riley's Dave Kang writes that it's not clear if this is actually a big deal. It might end up being very little, it might be a "needle mover," but it depends on how much of the order would be for " 100G," the fastest optical communications speed, which is not clear from the text of the supposed tender, he writes:
We have checked with various industry executives and most of them have indicated that they haven't been able to validate the tender. One executive stated that while the number of 42k ports is accurate, without knowing the mix of 10G/100G and share allocations between customers, it would be difficult to assess the impact of the tender. As such, we believe it's inconclusive to determine the impact on the optical industry at this point. However, we can provide best/worst case scenarios. Assuming this tender is mostly for 10G, it would be a relative non-event. On the other hand, if the tender is mostly for 100G, then it would be meaningful for the industry. We note that Lumentum Holdings (LITE) is the primary supplier of datacom products to Huawei which means that in the event of a primary allocation to 100G ports, it would be incrementally positive for LITE. We estimate that there were approximately 300k coherent ports last year, with China accounting for nearly one-half (we believe Huawei accounted for approximately 100k ports). Thus, a 42k 100G coherent tender from CHL would be meaningful, especially since there is a 2-to-1 relationship between 100G datacom and 100G coherent products. For 42k coherent modules, there would be approximately 84k 100G datacom products (QSFP28 and/or CFP2) required. If this tender is mostly a 100G tender, it could be a needle-mover for the optical component industry. Regarding the timing of orders, the selection process by CHL may take a few weeks, at which point the winning bidder (i.e. Huawei) would need to go through their process with its suppliers. Under this scenario, we believe orders from this tender would most likely materialize in 4Q.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 Lumentum Holdings (LITE) are up $1.30, or 2%, at $57.30, Finisar (FNSR) is up 70 cents, or 2.8%, at $25.38, Oclaro (OCLR) is up 38 cents, over 4%, at $9.12; and Applied Optoelectronics (AAOI) is up $1.38, or 2%, at $64.89. Shares of fiber-optic component vendors continue to be on the march this morning, in early trading, following word yesterday afternoonChina Mobile (CHL) has put out a "tender" for a large purchase of optical gear, perhaps signaling some relief to the vendors, who've struggled all year with a slowdown in the Chinese market. He does offer that with inventories relatively low in optical overall, a big order could see its impact "amplified": China has been soft as we have waited for demand to pick up over the last 2-3 quarters.
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Shares of Lumentum Holdings (LITE) are up $1.30, or 2%, at $57.30, Finisar (FNSR) is up 70 cents, or 2.8%, at $25.38, Oclaro (OCLR) is up 38 cents, over 4%, at $9.12; and Applied Optoelectronics (AAOI) is up $1.38, or 2%, at $64.89. "Based on the port detail, we think this contract would translate to between $200-$400 million in coherent component demand and $50-$100 million in Access components," he writes. We note that Lumentum Holdings (LITE) is the primary supplier of datacom products to Huawei which means that in the event of a primary allocation to 100G ports, it would be incrementally positive for LITE.
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Shares of Lumentum Holdings (LITE) are up $1.30, or 2%, at $57.30, Finisar (FNSR) is up 70 cents, or 2.8%, at $25.38, Oclaro (OCLR) is up 38 cents, over 4%, at $9.12; and Applied Optoelectronics (AAOI) is up $1.38, or 2%, at $64.89. Shares of fiber-optic component vendors continue to be on the march this morning, in early trading, following word yesterday afternoonChina Mobile (CHL) has put out a "tender" for a large purchase of optical gear, perhaps signaling some relief to the vendors, who've struggled all year with a slowdown in the Chinese market. It might end up being very little, it might be a "needle mover," but it depends on how much of the order would be for " 100G," the fastest optical communications speed, which is not clear from the text of the supposed tender, he writes: We have checked with various industry executives and most of them have indicated that they haven't been able to validate the tender.
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Shares of Lumentum Holdings (LITE) are up $1.30, or 2%, at $57.30, Finisar (FNSR) is up 70 cents, or 2.8%, at $25.38, Oclaro (OCLR) is up 38 cents, over 4%, at $9.12; and Applied Optoelectronics (AAOI) is up $1.38, or 2%, at $64.89. Normal inventory levels are roughly 50% of a quarter. It might end up being very little, it might be a "needle mover," but it depends on how much of the order would be for " 100G," the fastest optical communications speed, which is not clear from the text of the supposed tender, he writes: We have checked with various industry executives and most of them have indicated that they haven't been able to validate the tender.
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2119fc21-6cb8-43c0-9289-fb5ee8e9ff95
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9805.0
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2017-08-24 00:00:00 UTC
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Why Allied Motion Technologies (AMOT) Could Be Positioned for a Slump
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AAOI
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https://www.nasdaq.com/articles/why-allied-motion-technologies-amot-could-be-positioned-for-a-slump-2017-08-24
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nan
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nan
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Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is Allied Motion Technologies Inc.AMOT , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in AMOT.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 estimates moving down in the past 30 days, compared with no revisions. This trend has caused the consensus estimate to trend lower, going from $1.30 a share a month ago to its current level of $1.00.
Also, for the current quarter, Allied Motion Technologies has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 27 cents a share from 38 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 19.9% in the past month.
Allied Motion Technologies, Inc. Price and Consensus
Allied Motion Technologies, Inc. Price and Consensus | Allied Motion Technologies, Inc. Quote
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the Computer and Technology sector, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 Rank stocks here .
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Allied Motion Technologies, Inc. (AMOT): 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.
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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If you are still interested in the Computer and Technology sector, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Allied Motion Technologies, Inc. (AMOT): Free Stock Analysis Report To read this article on Zacks.com click here. Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Allied Motion Technologies, Inc. (AMOT): Free Stock Analysis Report To read this article on Zacks.com click here. If you are still interested in the Computer and Technology sector, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . Allied Motion Technologies, Inc. Price and Consensus Allied Motion Technologies, Inc. Price and Consensus | Allied Motion Technologies, Inc. Quote So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Allied Motion Technologies, Inc. (AMOT): Free Stock Analysis Report To read this article on Zacks.com click here. If you are still interested in the Computer and Technology sector, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . One such stock that you may want to consider dropping is Allied Motion Technologies Inc.AMOT , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year.
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If you are still interested in the Computer and Technology sector, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Allied Motion Technologies, Inc. (AMOT): Free Stock Analysis Report To read this article on Zacks.com click here. One such stock that you may want to consider dropping is Allied Motion Technologies Inc.AMOT , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year.
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7b12209f-acc5-4404-8065-9f7ea4a693cc
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9806.0
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2017-08-24 00:00:00 UTC
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Zacks Market Edge Highlights: Ichor Holdings, Oclaro, Amazon, Tencent and Applied Optoelectronics
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AAOI
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https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-ichor-holdings-oclaro-amazon-tencent-and-applied
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nan
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nan
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For Immediate Release
Chicago, IL - August 24, 2017 - Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. (Please use the Soundcloud link from this URL for the PR. Thanks: https://www.zacks.com/stock/news/272912/how-to-use-the-zacks-rank-to-pick-stocks )
How to Use the Zacks Rank to Pick Stocks
Welcome to Episode #95 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Sheraz Mian, Zacks Director of Research, to discuss the Zacks Rank.
Finally, after podcasting for nearly 2 years, Tracey is tackling the most basic of Zacks investing principles.
You might have seen the Zacks Rank mentioned in an investing article on Yahoo Finance or someone brought it up in a discussion on Stocktwits.
But what IS it exactly?
Definition of the Zacks Rank
The Zacks Rank is a short-term stock recommendation of 1 to 3 months which ranks stocks from #1, which is a "Strong Buy", to #5, which is a "Strong Sell".
Zacks ranks about 4400 stocks daily using analyst earnings estimates.
Sheraz and Tracey discuss what goes into the Zacks Rank, how it works, and the pros and cons of using it.
If you've ever had questions about the Zacks Rank, then this is must-listen podcast.
Examples of Using the Zacks Rank
1. In the summer of 2017 , Ichor Holdings (NASDAQ: ICHR - Free Report ) went from a Zacks #1 (Strong Buy) and sank quickly to a Zacks #4 (Sell), moved to a #3 (Hold) and is now a #1 (Strong Buy) again. How can a stock go from a #1 to a #4 the next day?
2. Oclaro (NASDAQ: OCLR - Free Report ) was a #3 (Hold) for a couple of months until it dropped to a #4 (Sell) in August. Why the drop and what are the estimates telling us?
3. Amazon (NASDAQ: AMZN - Free Report ) has been a #5 (Strong Sell) several times this year. How can it be a Strong Sell when the stock has been moving higher?
4. Tencent (OTCMKTS: TCEHY - Free Report ) is both a foreign stock, as it's a Chinese Internet and social media company, and it only has one analyst estimate on Zacks.com. Sheraz discusses the quirks of the Zacks Rank and what happens when there are only a few estimates in the data.
5. Applied Optoelectronics (NASDAQ: AAOI - Free Report ) is a Zacks Rank #1 (Strong Buy) but the shares are off 36% in the last month on worries about the transition from 40G to 100G. For 2017, 2 estimates have been raised and 2 have been cut in the last 30 days. However, the consensus has risen. The Zacks Rank is based on the analyst estimates. What happens if they don't get it right?
Every trading system has its quirks. Zacks is open about what works, and what doesn't, with the Zacks Rank.
What else should you know about the Zacks Rank and using it to find stocks?
Tune into this week's podcast to find out.
Want to Learn How to Trade Options?
Have you always wanted to trade stock options but are unsure where to begin or what to look for?
Each week, Zacks' Dave Bartosiak will bring you a detailed explanation of the trades "live" on YouTube.
Watch him go through the trade as he answers your questions in real time.
Become one of Dave's minions. Join the Zacks Live Trader community today. Click here for a free 14-day trial >>>
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
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Zacks Investment Research
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https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report
Oclaro, Inc. (OCLR): 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.
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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Applied Optoelectronics (NASDAQ: AAOI - Free Report ) is a Zacks Rank #1 (Strong Buy) but the shares are off 36% in the last month on worries about the transition from 40G to 100G. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report Oclaro, Inc. (OCLR): Free Stock Analysis Report To read this article on Zacks.com click here. Tencent (OTCMKTS: TCEHY - Free Report ) is both a foreign stock, as it's a Chinese Internet and social media company, and it only has one analyst estimate on Zacks.com.
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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report Oclaro, Inc. (OCLR): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (NASDAQ: AAOI - Free Report ) is a Zacks Rank #1 (Strong Buy) but the shares are off 36% in the last month on worries about the transition from 40G to 100G. For Immediate Release Chicago, IL - August 24, 2017 - Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec.
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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report Oclaro, Inc. (OCLR): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (NASDAQ: AAOI - Free Report ) is a Zacks Rank #1 (Strong Buy) but the shares are off 36% in the last month on worries about the transition from 40G to 100G. Thanks: https://www.zacks.com/stock/news/272912/how-to-use-the-zacks-rank-to-pick-stocks ) How to Use the Zacks Rank to Pick Stocks Welcome to Episode #95 of the Zacks Market Edge Podcast.
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Applied Optoelectronics (NASDAQ: AAOI - Free Report ) is a Zacks Rank #1 (Strong Buy) but the shares are off 36% in the last month on worries about the transition from 40G to 100G. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report Oclaro, Inc. (OCLR): Free Stock Analysis Report To read this article on Zacks.com click here. Thanks: https://www.zacks.com/stock/news/272912/how-to-use-the-zacks-rank-to-pick-stocks ) How to Use the Zacks Rank to Pick Stocks Welcome to Episode #95 of the Zacks Market Edge Podcast.
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ab5d96f7-075f-4107-a92e-6bd6f92695bc
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9807.0
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2017-08-23 00:00:00 UTC
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CREE Misses on Q4 Earnings, Set to Expand Wolfspeed Capacity
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AAOI
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https://www.nasdaq.com/articles/cree-misses-on-q4-earnings-set-to-expand-wolfspeed-capacity-2017-08-23
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nan
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nan
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Cree Inc . CREE reported non-GAAP earnings of 4 cents per share in the fourth quarter of fiscal 2017. The figure missed the Zacks Consensus Estimate by a penny and was significantly down from 19 cents reported in the year-ago quarter.
The massive decline can be attributed to lower revenues, which totalled almost $359 million, down 7.6% year over year. The figure was slightly better than the Zacks Consensus Estimate of $350 million.
Cree reported earnings of 50 cents per share on revenues of $1.47 billion in fiscal 2017.
Cree is focused on expanding capacity at Wolfspeed. Management is also on the lookout for acquisitions that will expand its lighting portfolio. Share repurchase despite the $200 million program is not a priority.
The company has lost 12.8% of its value year to date versus the 6.3% decline of its industry.
Quarter Details
Cree has three reportable segments - Lighting Products, LED Products and Wolfspeed.
Lighting Products revenues were $154.7 million, which accounted for 43.1% of total revenue and was down 22.1% on a year-over-year basis.
Cree, Inc. Price, Consensus and EPS Surprise
Cree, Inc. Price, Consensus and EPS Surprise | Cree, Inc. Quote
LED Products revenues were $143.4 million, almost flat on a year-over-year basis and accounted for 40% of total revenue. Cree stated that supply and demand balance improved compared with the previous quarter. Management cited improving demand for lighting and video screen applications.
Cree recently started shipping its first automotive LED components to a Tier 1 forward lighting supplier. The company is engaged with several projects that are expected to contribute meaningfully over the next 18 months.
Wolfspeed revenues surged 30.2% year over year to $60.8 million and accounted for 16.9% of total revenue. Management stated capacity constraint at Wolfspeed. The company achieved additional throughput in the reported quarter due to productivity improvements, which drove top-line growth.
Non-GAAP gross margin was 28%, which contracted roughly 280 basis points (bps) on a year-over-year basis. Segment wise, Lighting Products, LED Products and Wolfspeed gross margins contracted 200 bps, 630 bps and 510 bps, respectively.
Research & Development (R&D) and Sales, general & Administrative (SG&A), as percentage of revenues, increased 30 bps and 20 bps, respectively.
Non-GAAP operating margin contracted 470 bps from the year-ago quarter.
Balance Sheet & Cash Flow
Cree exited fourth-quarter fiscal 2017 with cash, cash equivalents & short-term investments of $610.9 million. Inventory days on hand declined 5 days from March to 98 days at the end of June. Cree's near-term inventory target is 90-100 days.
During the fourth quarter, cash from operations was $53 million and capital expenditures were $34 million including patents, which resulted in free cash flow of $19 million.
During fiscal 2017, the company spent $104 million to repurchase 4.4 million shares.
Guidance
For the first quarter of fiscal 2018, Cree expects revenues in the range of $353-$367 million. Non-GAAP earnings are projected in the range of 2-6 cents per share.
Lighting revenues are projected to decline sequentially due to anticipated flat commercial revenues as well as seasonally lower consumer sales. LED revenues are projected to be in the same range as of the fourth quarter. Wolfspeed business is now anticipated to grow more or less 4% more or less, as productivity gains offset near-term factory capacity constraints.
Non-GAAP gross margin is targeted at approximately 29%, slightly up sequentially. The expansion is expected be driven by incremental improvement in lighting and Wolfspeed margins, partially offset by lower LED margin. Lighting margins are anticipated to improve due to operating improvements and a higher mix of commercial sales.
Non-GAAP operating expenses are projected to be more or less $101 million, which increases sequentially primarily due to cost associated with Wolfspeed factory expansion, incremental legal costs on defensive IP cases, and CEO search cost.
For fiscal 2018, Cree projects capital spending of almost $220 million primarily related to expansion of Wolfspeed's production capacity. The company targets 2018 free cash outflow of $20 million due to the Wolfspeed's capacity expansion related investments, which are expected to eliminate current capacity constraints.
Zacks Rank
Currently, Cree has Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Applied Optoelectronics AAOI , FormFactor FORM and Vishay Intertechnology VSH . While Applied Optoelectronics and FormFactor sport a Zacks Rank #1 (Strong Buy), Vishay carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. .
Long term earnings estimates for Applied Optoelectronics, FormFactor and Vishay are currently pegged at 17.50%, 16.00% and 18.10%, respectively.
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
S ee Stocks Now>>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report
Cree, Inc. (CREE): 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.
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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Some better-ranked stocks in the broader technology space are Applied Optoelectronics AAOI , FormFactor FORM and Vishay Intertechnology VSH . Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report Cree, Inc. (CREE): Free Stock Analysis Report To read this article on Zacks.com click here. The company achieved additional throughput in the reported quarter due to productivity improvements, which drove top-line growth.
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Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report Cree, Inc. (CREE): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology space are Applied Optoelectronics AAOI , FormFactor FORM and Vishay Intertechnology VSH . Cree, Inc. Price, Consensus and EPS Surprise Cree, Inc. Price, Consensus and EPS Surprise | Cree, Inc. Quote LED Products revenues were $143.4 million, almost flat on a year-over-year basis and accounted for 40% of total revenue.
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Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report Cree, Inc. (CREE): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology space are Applied Optoelectronics AAOI , FormFactor FORM and Vishay Intertechnology VSH . Quarter Details Cree has three reportable segments - Lighting Products, LED Products and Wolfspeed.
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Some better-ranked stocks in the broader technology space are Applied Optoelectronics AAOI , FormFactor FORM and Vishay Intertechnology VSH . Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report Cree, Inc. (CREE): Free Stock Analysis Report To read this article on Zacks.com click here. Cree Inc .
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36c24370-1a08-4186-8689-92e0eac68923
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9808.0
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2017-08-23 00:00:00 UTC
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Electronic Arts Teams Up with NFL for E-sports Tournament
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AAOI
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https://www.nasdaq.com/articles/electronic-arts-teams-up-with-nfl-for-e-sports-tournament-2017-08-23
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nan
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nan
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Electronic Arts Inc. EA and the National Football League (NFL) recently announced a partnership to organize the Madden NFL Club Championship that will involve the 32 NFL clubs. Reportedly, players above 16 years who excel in EA's Madden NFL in the United States, United Kingdom and Germany can play the tournament.
Per media reports, the winner of this "largest competitive gaming commitment ever by a U.S. professional sports league" will get a lions' share of the cash prize of $403,000 and two tickets to the Super Bowl 52 to be played in Minnesota.
Growing E-Sports Market - Key Catalyst
E-sports, which are live video game tournaments, are fast emerging as a lucrative business opportunity. Like traditional sports, even these are held at stadiums and televised or broadcast online. Importantly, these tournaments have alluring prize money. Per NFL Commissioner Roger Goodell, e-sports and competitive gaming are very attractive to the "younger and digitally savvy NFL audience".
EA's involvement with NFL to attract e-sports gamers is a significant move for the company. With continued increases in viewership, corporate sponsorships and growing media coverage, e-sports is here to stay. Thus, the company's initiatives to strengthen its presence in the e-sports market will help drive the top line.
Per the latest report from Newzoo, in 2017, revenues from e-sports are expected to be up 41.3% to $696 million. From 2015 to 2020, revenues are likely to record CAGR of 35.6% to $1.49 billion.
We believe this will help to sustain the momentum in EA shares, which have gained 51.1% year to date, outperforming the industry's 44.4% rally.
Stiffening Competition a Headwind
Given the sound business opportunity, competition in this space has intensified. Other video game companies like Activision Blizzard ATVI and Take-Two Interactive Software TTWO are also making big moves to grab a share of this pie.
With Overwatch recording stupendous success with 30 million players and counting, Activision has announced a league for this franchise as well. Activision has recorded first seven team (city-based) sales for the Overwatch league. A few days back, the company added that it has sold the London and Los Angeles teams for the league.
Activision has long been making efforts to build its presence in this arena. In fact, the company has set up an exclusive e-sports unit spearheaded by former ESPN CEO Steve Bornstein. Also, it acquired MLG, a leading e-sports player for an estimated $46 million. Activision has already established Call of Duty World League.
After treading cautiously initially in the lucrative e-sports market, Take Two has accelerated its efforts. In February this year, the company inked a deal with NBA to launch NBA 2K eLeague. This made NBA the only professional sports league to have its own e-sports league. The league will be functional in 2018. Take Two has been conducting an NBA e-sports tournament for the last two years.
Electronic Arts Inc. Price
Electronic Arts Inc. Price | Electronic Arts Inc. Quote
Zacks Rank and Stock to Consider
Currently, Electronics Arts has a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , which carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Applied Optoelectronics is projected to be 17.5%.
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report
Electronic Arts Inc. (EA): 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.
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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A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , which carries a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. Per media reports, the winner of this "largest competitive gaming commitment ever by a U.S. professional sports league" will get a lions' share of the cash prize of $403,000 and two tickets to the Super Bowl 52 to be played in Minnesota.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , which carries a Zacks Rank #1 (Strong Buy). Other video game companies like Activision Blizzard ATVI and Take-Two Interactive Software TTWO are also making big moves to grab a share of this pie.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , which carries a Zacks Rank #1 (Strong Buy). This made NBA the only professional sports league to have its own e-sports league.
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A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , which carries a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. This made NBA the only professional sports league to have its own e-sports league.
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8e35f528-254c-48b7-b1d9-e410bfab251b
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9809.0
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2017-08-23 00:00:00 UTC
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Fujifilm (FUJIY) Secures 7 Big U.S. Imaging Solutions Deals
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AAOI
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https://www.nasdaq.com/articles/fujifilm-fujiy-secures-7-big-u.s.-imaging-solutions-deals-2017-08-23
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nan
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nan
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FUJIFILM Holdings CorporationFUJIY continues to boost its organic growth trajectory on the back of a number of new imaging solutions contract wins.
Over the last month, Fujifilm's shares yielded a return of 3.6%, as against the loss of 25% incurred by the industry .
Receipt of such lucrative contracts proves that FUJIFILM Medical Systems is currently recognized as a major enterprise imaging partner across the nation. The company owns a wide range of Synapse Enterprise Imaging portfolio of non-imitable technologies which outspread the conventional cardiology and radiology imaging areas.
Per the above-mentioned deals, FUJIFILM Medical Systems will supply various products such as Synapse VNA, Synapse Cardiovascular, Synapse Mobility Enterprise Viewer, Synapse Cloud Services and Synapse 5 PACS to the healthcare providers.
Our Take
Fujifilm currency carries a Zacks Rank #4 (Sell). We believe that headwinds such as further appreciation of the Japanese Yen, depreciation of Asian currencies, stronger industry specific rivalry and the Brexit-induced uncertain macroeconomic environment in Europe will likely make matters worse for the company, moving ahead.
However, amid all headwinds, Fujifilm is poised to grow on the back of such above discussed business contracts. Furthermore, near-term profitability is anticipated to improve on the back of the three major pillars - efficient management, expansion of international operations and launch of businesses.
Stocks to Consider
A few better-ranked stocks in the same space are listed below:
Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 17.98% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
ACI Worldwide, Inc. ACIW presently carries a Zacks Rank #2 (Buy) and generated an average positive earnings surprise of 31.25% over the trailing four quarters.
Axcelis Technologies, Inc. ACLS , which also carries a Zacks Rank #2, pulled off an average positive earnings surprise of 35.04% over the past four quarters.
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
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
Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report
ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Fujifilm Holdings Corp. (FUJIY): 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.
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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Stocks to Consider A few better-ranked stocks in the same space are listed below: Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 17.98% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY): Free Stock Analysis Report To read this article on Zacks.com click here. FUJIFILM Holdings CorporationFUJIY continues to boost its organic growth trajectory on the back of a number of new imaging solutions contract wins.
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Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider A few better-ranked stocks in the same space are listed below: Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 17.98% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). ACI Worldwide, Inc. ACIW presently carries a Zacks Rank #2 (Buy) and generated an average positive earnings surprise of 31.25% over the trailing four quarters.
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Stocks to Consider A few better-ranked stocks in the same space are listed below: Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 17.98% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY): Free Stock Analysis Report To read this article on Zacks.com click here. Per the above-mentioned deals, FUJIFILM Medical Systems will supply various products such as Synapse VNA, Synapse Cardiovascular, Synapse Mobility Enterprise Viewer, Synapse Cloud Services and Synapse 5 PACS to the healthcare providers.
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Stocks to Consider A few better-ranked stocks in the same space are listed below: Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 17.98% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY): Free Stock Analysis Report To read this article on Zacks.com click here. You can see the complete list of today's Zacks #1 Rank stocks here .
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3e875894-b350-4e94-ace4-2f2789fef23a
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9810.0
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2017-08-23 00:00:00 UTC
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Couldn't Stay Away Any Longer
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AAOI
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https://www.nasdaq.com/articles/couldnt-stay-away-any-longer-2017-08-23
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nan
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nan
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The editors here at Zacks believe that the bull market is alive and well. So with that in mind, you just knew that this two-week, 2% drop in stocks wasn't going to be unanswered for long. Investors came rushing back to the market on Tuesday with good old tech leading the way.
"You gotta love the short-term memory of the market. One day we're hurling towards certain doom and the next we're in sight of the highs again," said Dave in Momentum Trader . "I'm not saying we're out of the woods by any stretch of the imagination, but I'm amazed by the calm that's returned so quickly."
The market has been concerned with some BIG things over the past two weeks, including war with North Korea and civil unrest here at home. Thankfully, things have cooled off a bit for now, so the strength of this market was able to shine through today. As a result, the S&P climbed 0.99% to 2452.5, the Dow jumped 0.90% to 21899.9 and the NASDAQ surged 1.36% to 6297.5.
In the portfolios, TAZR Trader added a stock and Short List swapped out two positions. Learn more in the highlights section below, along with some analysis.
Today's Portfolio Highlights:
TAZR Trader: Kevin thinks that the bears have Applied Optoelectronics (AAOI) mostly wrong. The editor recently read a research report that pokes holes in some of the concerns for this company. Briefly, the transition to 100G optical networking equipment will likely be a lot quicker than most expect. Also, demand for optical equipment will remain strong for the foreseeable future, which mitigates some of the concern for having a single customer as nearly 50% of sales. By the way, that single customer is Amazon! Kevin thinks there's an opportunity here so he bought AAOI on Tuesday with a 7% allocation. Learn about the big funds that are buying AAOI in the complete commentary.
Zacks Short List: This week's adjustment included only two swaps. Firstly, the portfolio shortcovered Charter Communications (CHTR) and National Oilwell (NOV). It replaced these names by buying Alere (ALR) and GoDaddy (GDDY). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.
Options Trader:"Great day in the markets today with rallies in all of the major indexes with the Dow up 0.90%, the S&P up 0.99%, the Russell 2000 Small-Cap Index up 1.06%, and the Nasdaq up 1.36%.
"The oversold conditions from last week, coupled with a successful test of support this week, and President Trump hitting all the right tones in yesterday's speech, sent the market soaring.
"And of course, that was all amidst a solid economic and corporate earnings backdrop, which continues to support this market and projects even more gains to come." -- Kevin Matras
All the Best,
Jim Giaquinto
Before You Go...
The latest 7 Best Stocks for the Next 30 Days was recently released and is waiting for ZU subscribers like you in our ZU Special Reports section. Make sure to give it a look, and while you're there scan through some of our other offerings, such as:
• Cybersecurity
• Conducting the Future of Technology, and
• 5 Stocks to Double
Recommendations from Zacks' Private Portfolios:
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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.
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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Today's Portfolio Highlights: TAZR Trader: Kevin thinks that the bears have Applied Optoelectronics (AAOI) mostly wrong. Kevin thinks there's an opportunity here so he bought AAOI on Tuesday with a 7% allocation. Learn about the big funds that are buying AAOI in the complete commentary.
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Today's Portfolio Highlights: TAZR Trader: Kevin thinks that the bears have Applied Optoelectronics (AAOI) mostly wrong. Kevin thinks there's an opportunity here so he bought AAOI on Tuesday with a 7% allocation. Learn about the big funds that are buying AAOI in the complete commentary.
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Today's Portfolio Highlights: TAZR Trader: Kevin thinks that the bears have Applied Optoelectronics (AAOI) mostly wrong. Kevin thinks there's an opportunity here so he bought AAOI on Tuesday with a 7% allocation. Learn about the big funds that are buying AAOI in the complete commentary.
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Kevin thinks there's an opportunity here so he bought AAOI on Tuesday with a 7% allocation. Today's Portfolio Highlights: TAZR Trader: Kevin thinks that the bears have Applied Optoelectronics (AAOI) mostly wrong. Learn about the big funds that are buying AAOI in the complete commentary.
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2c11fe99-b7a6-4ec0-bf46-3e0077b8b808
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9811.0
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2017-08-23 00:00:00 UTC
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SAP Gains New Client in DuluxGroup, Fortifies Ariba Hold
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AAOI
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https://www.nasdaq.com/articles/sap-gains-new-client-in-duluxgroup-fortifies-ariba-hold-2017-08-23
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nan
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nan
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Enterprise application software provider, SAP SESAP , recently announced that its business network, Ariba, has gained a new client in Australian paint maker DuluxGroup. Ariba has proved to be a source of robust profit churner for SAP, managing the business of 2.8-million clients who purchase or sell goods and services worth over $1 trillion.
Leveraging on SAP Ariba's solutions for direct spend and Integrated Business Planning system, DuluxGroup aims to digitize its extended supply chain. Further, it will create a simple process for managing expenditure. Also, DuluxGroup can integrate its product design, R&D and manufacturing processes through SAP Ariba's state-of-the-art solutions.
DuluxGroup is the latest to join the Ariba bandwagon, which includes some of the biggest companies of the world. In the last reported quarter, Ariba gained Green Cross, LATAM Airlines Group and Boticario Group as clients. Further, more than 3 million new subscribers in North America have implemented SAP Ariba's guided buying capabilities.
During the second quarter of 2017, new cloud bookings - a key indicator of sales success in cloud business - were significantly up 33% to €340 million ($373.9 million) and Ariba was a chief contributor in this growth. Going forward, SAP remains bullish that growing demand for simplified and automated business-to-business commerce solutions will fuel the growth of Ariba. SAP's shares have returned 12.9% over the past six months, in line with the industry 's average return.
Despite healthy growth drivers in place, the Zacks Rank #4 (Sell) company faces stiff competition from industry frontrunners including Computer Sciences Corporation and International Business Machines Corporation IBM . Also, there is an inherent seasonality in technology spending on part of clients, which exposes the company's sales to risks of quarterly fluctuations. SAP has been witnessing an increase in operating profit and rise in operational expenses over the past few quarters, which are expected to put pressure on margins.
Stocks to Consider
A few better-ranked stocks in the industry include Applied Optoelectronics, Inc. AAOI and Motorola Solutions, Inc. MSI . While Applied Optoelectronics sports a Zacks Rank #1 (Strong Buy), Motorola Solutions carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Applied Optoelectronics delivered an average positive earnings surprise of 21.0% in the trailing four quarters, beating estimates all through.
Motorola Solutions delivered an average positive earnings surprise of 14.5% for the last four quarters, having beaten estimates all through.
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really take off.
See Stocks Now>>
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
International Business Machines Corporation (IBM): Free Stock Analysis Report
Motorola Solutions, Inc. (MSI): Free Stock Analysis Report
SAP SE (SAP): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Stocks to Consider A few better-ranked stocks in the industry include Applied Optoelectronics, Inc. AAOI and Motorola Solutions, Inc. MSI . Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report SAP SE (SAP): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Enterprise application software provider, SAP SESAP , recently announced that its business network, Ariba, has gained a new client in Australian paint maker DuluxGroup.
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Stocks to Consider A few better-ranked stocks in the industry include Applied Optoelectronics, Inc. AAOI and Motorola Solutions, Inc. MSI . Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report SAP SE (SAP): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. While Applied Optoelectronics sports a Zacks Rank #1 (Strong Buy), Motorola Solutions carries a Zacks Rank #2 (Buy).
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Stocks to Consider A few better-ranked stocks in the industry include Applied Optoelectronics, Inc. AAOI and Motorola Solutions, Inc. MSI . Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report SAP SE (SAP): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. While Applied Optoelectronics sports a Zacks Rank #1 (Strong Buy), Motorola Solutions carries a Zacks Rank #2 (Buy).
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Stocks to Consider A few better-ranked stocks in the industry include Applied Optoelectronics, Inc. AAOI and Motorola Solutions, Inc. MSI . Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report SAP SE (SAP): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Further, it will create a simple process for managing expenditure.
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83768058-a4f0-4493-9f92-ae0f0e866c92
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9812.0
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2017-08-22 00:00:00 UTC
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Don’t Run Away From Applied Optoelectronics (AAOI) Stock Yet
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AAOI
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https://www.nasdaq.com/articles/dont-run-away-from-applied-optoelectronics-aaoi-stock-yet-2017-08-22
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Applied Optoelectronics Inc (NASDAQ: AAOI ) is up 175% since 2017 started. That's certainly very impressive and it's no surprise that a leading supplier of fiber optic networking product provider is doing well as mobile and fixed wire media compete for consumers.
Source: Shutterstock
What is surprising is the near 40% drop in AAOI stock's price in the past couple weeks. Some are now wondering whether AAOI isn't worth the hype it has been living on for the past year.
On the one hand, AT&T Inc (NYSE: T ), Verizon Communications Inc. (NYSE: VZ ), T-Mobile US Inc (NASDAQ: TMUS ) and others are spending billions to get the fastest networks with the best bandwidth to market ahead of the competition. TMUS just announced it's spending $8 billion this year to upgrade its mobile network to speeds and coverage that will rival both T and VZ.
The cable companies are also racing to grow their businesses, as are the satellite providers.
10 Stocks That Every 20-Year-Old Should Buy
And this doesn't even take into account the massive demand that is coming from all the players in the cloud computing space, including Microsoft Corporation (NASDAQ: MSFT ) and Amazon.com Inc (NASDAQ: AMZN ).
This is a boom time for a company like AAOI that is building the next generation equipment to allow companies to access higher speeds and greater bandwidth .
Regardless of whether the Federal Communications Commission scraps the current net neutrality rules, no internet service provider is going to stop looking for more speed, especially if they can charge more for it.
AAOI reported earnings Aug. 3 and smashed earnings expectations (Street estimate was $1.32 a share and AAOI posted $1.54). It also beat on revenue, which was up 112% year over year. Yet, the stock sold off almost 30% on that day alone because AAOI lowered guidance for the rest of the year.
What This Means for AAOI Stock
With a stock that had been soaring for the past 12 months - up 360% - there are bound to be a growing number of short positions. When the stock rises, the shorts get squeezed and the stock vaults higher. But when the stock falters it gets hammered on the way down.
That's where we are with AAOI right now.
The question is, are the shorts are right or are the long buyers right? I'm in the latter camp.
There are two "problems" that AAOI is dealing with right now. First, demand is outstripping its supply of transceivers. And second, there is currently a transition from older 40 gigabit transceivers to the new 100 gigabit transceivers. As companies switch over, there can be a lag in sales, like we're seeing now.
Let the short sellers have their day. The long-term belongs to AAOI.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth , Emerging Growth, Ultimate Growth , Family Trust and Platinum Growth . His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com . Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
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The post Don't Run Away From Applied Optoelectronics (AAOI) Stock Yet appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) is up 175% since 2017 started. Source: Shutterstock What is surprising is the near 40% drop in AAOI stock's price in the past couple weeks. Some are now wondering whether AAOI isn't worth the hype it has been living on for the past year.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) is up 175% since 2017 started. Source: Shutterstock What is surprising is the near 40% drop in AAOI stock's price in the past couple weeks. Some are now wondering whether AAOI isn't worth the hype it has been living on for the past year.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) is up 175% since 2017 started. What This Means for AAOI Stock With a stock that had been soaring for the past 12 months - up 360% - there are bound to be a growing number of short positions. More From InvestorPlace 5 Best Student Credit Cards for an Easy College Life Intel Corporation's Performance-Boosting CPUs Could Turbocharge INTC Stock 6 Crumbling Tech Stocks That Will Bury You Alive The post Don't Run Away From Applied Optoelectronics (AAOI) Stock Yet appeared first on InvestorPlace .
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That's where we are with AAOI right now. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) is up 175% since 2017 started. Source: Shutterstock What is surprising is the near 40% drop in AAOI stock's price in the past couple weeks.
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bf573221-b5b1-477a-b5f6-34dd2fda1019
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9813.0
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2017-08-22 00:00:00 UTC
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Why it is Worth Buying Micron Technology (MU) Shares Now
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AAOI
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https://www.nasdaq.com/articles/why-it-is-worth-buying-micron-technology-mu-shares-now-2017-08-22
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nan
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nan
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The technology space continues to be investors' favorite due to its dynamic nature. This field is expected to grow faster than ever before. Therefore, if you invest right, you can reap the benefits over time..
Below we have evaluated one technology company that has demonstrated remarkable share price performance so far. Micron Technology, Inc.MU has generated significant returns for investors in the last year and has the potential to exceed expectations in the days ahead.
The stock has returned approximately 82.6% in the last year, significantly outperforming the S&P 500's gain of just 10.9%.
What's Driving the Stock?
The main reason behind the optimism surrounding the stock is improving prices for DRAM and NAND chips. Per various sources, DRAM and NAND prices have improved primarily due to a better product mix optimization and higher-than-expected demand for PCs, servers and mobiles.
The benefit from improved pricing was well reflected in the company's last quarterly results. Its fiscal third-quarter 2017 revenues not only increased 92.1% on a year-over-year basis but also surpassed the Zacks Consensus Estimate. Most importantly, the company's DRAM product category witnessed a 5% increase in bit shipment and 14% rise in average selling prices (ASP) during the quarter.
The company's third-quarter non-GAAP earnings per share of $1.62 came ahead of the Zacks Consensus Estimate of $1.49. Also, it marked a significant improvement from the year-ago quarter's loss of 3 cents.
An encouraging top- and bottom-line guidance for the fourth quarter, way above the respective Zacks Consensus Estimate, also helped in boosting investors' confidence about the company's future prospects.
Upward Estimate Revisions
In the last 60 days, the Zacks Consensus Estimate for the fourth quarter and fiscal 2017 witnessed upward movement. For the fiscal fourth quarter, the Zacks Consensus Estimate is currently pegged at $1.81 per share, up 30 cents from earnings of $1.51 projected 60 days ago. The Zacks Consensus Estimate for fiscal 2017 is currently pegged at $4.61 per share compared with $4.11 projected 60 days ago.
Micron Technology, Inc. Price, Consensus and EPS Surprise
Micron Technology, Inc. Price, Consensus and EPS Surprise | Micron Technology, Inc. Quote
Other Driving Factors
It should be noted that Micron has been expanding in the SSD storage market due to the decline in the PC market. Notably, SSDs are faster and more energy efficient than traditional hard drives. These are also used in servers due to lower latency, thereby facilitating faster response to real-time applications.
Notably, the company has an interesting partnership with Seagate STX . Per the agreement, Micron supplies a significant portion of Seagate's NAND requirement. In return, Seagate shares its SAS SSD technology with Micron, a key technology that the latter lacks in the enterprise SSD market. We believe that this deal will expand Micron's high-value enterprise SSD portfolio.
Additionally, the acquisition of Inotera in 2016 is anticipated to be accretive to Micron's DRAM gross margin, earnings per share and free cash flow. According to the company, the acquisition will also have some operational benefits, leading to efficient management of investment levels and cadence followed by alignment with global manufacturing operations.
The company anticipates the aforementioned factors to also have a positive impact on its fiscal fourth-quarter results.
Bottom Line
Looking at the improving selling prices for DRAM and strategic initiatives of expanding in the SSD market, we consider that Micron is one technology stock which is worthy of remaining in investors' portfolio.
On the valuation front too, the stock looks attractive. The company currently trades at a forward P/E multiple of 6.4x, significantly lower than the S&P 500 average of 19.2x. The ratio, which is obtained by dividing a stock's current market price with its historical or estimated earnings, measures how much an investor needs to shell out per dollar of earnings. Therefore, lower the P/E of a stock, the better for a value investor.
Hence, we believe that there is still much momentum left in this Zacks Rank #1 (Strong Buy) stock, which is quite evident from its VGM Style Score of A and long-term earnings growth rate of 10%.
The stock has grabbed the spotlight with striking performances on the back of solid earnings and robust growth projections. Keeping this in mind, we believe that investing in this stock will yield strong returns in the near term.
A couple of other stocks worth considering in the broader technology sector are Applied Optoelectronics, Inc. AAOI and FormFactor Inc. FORM , both sporting a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics and FormFactor have an expected long-term EPS growth rate of 17.5% and 16%, respectively.
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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
Seagate Technology PLC (STX): Free Stock Analysis Report
FormFactor, Inc. (FORM): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Micron Technology, Inc. (MU): 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.
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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A couple of other stocks worth considering in the broader technology sector are Applied Optoelectronics, Inc. AAOI and FormFactor Inc. FORM , both sporting a Zacks Rank #1. Click to get this free report Seagate Technology PLC (STX): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Per various sources, DRAM and NAND prices have improved primarily due to a better product mix optimization and higher-than-expected demand for PCs, servers and mobiles.
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Click to get this free report Seagate Technology PLC (STX): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. A couple of other stocks worth considering in the broader technology sector are Applied Optoelectronics, Inc. AAOI and FormFactor Inc. FORM , both sporting a Zacks Rank #1. For the fiscal fourth quarter, the Zacks Consensus Estimate is currently pegged at $1.81 per share, up 30 cents from earnings of $1.51 projected 60 days ago.
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Click to get this free report Seagate Technology PLC (STX): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. A couple of other stocks worth considering in the broader technology sector are Applied Optoelectronics, Inc. AAOI and FormFactor Inc. FORM , both sporting a Zacks Rank #1. Micron Technology, Inc. Price, Consensus and EPS Surprise Micron Technology, Inc. Price, Consensus and EPS Surprise | Micron Technology, Inc. Quote Other Driving Factors It should be noted that Micron has been expanding in the SSD storage market due to the decline in the PC market.
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A couple of other stocks worth considering in the broader technology sector are Applied Optoelectronics, Inc. AAOI and FormFactor Inc. FORM , both sporting a Zacks Rank #1. Click to get this free report Seagate Technology PLC (STX): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. The benefit from improved pricing was well reflected in the company's last quarterly results.
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31860787-03b3-4444-8c36-cab9c05f6927
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9814.0
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2017-08-21 00:00:00 UTC
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Top Ranked Growth Stocks to Buy for August 21st
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AAOI
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https://www.nasdaq.com/articles/top-ranked-growth-stocks-to-buy-for-august-21st-2017-08-21
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nan
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nan
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, August 21st:
Applied Optoelectronics, Inc. (AAOI) : This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days.
Applied Optoelectronics, Inc. Price and Consensus
Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote
Applied Optoelectronics has a PEG ratio 0.74, compared with 9.46 for the industry. The company possesses a Growth Score of A.
FormFactor, Inc. Price and Consensus | FormFactor, Inc. Quote
FormFactor has a PEG ratio 0.84, compared with 9.46 for the industry. The company possesses a Growth Score of A.
Nu Skin Enterprises, Inc. Price and Consensus | Nu Skin Enterprises, Inc. Quote
Nu Skin Enterprises has a PEG ratio 1.91, compared with 2.91 for the industry. The company possesses a Growth Score of A.
See the full list of top ranked stocks here
Learn more about the Growth score and how it is calculated here .
More Stock News: This Is Bigger than the iPhone!
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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
FormFactor, Inc. (FORM): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, August 21st: Applied Optoelectronics, Inc. (AAOI) : This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days. Click to get this free report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. See the full list of top ranked stocks here Learn more about the Growth score and how it is calculated here .
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Click to get this free report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, August 21st: Applied Optoelectronics, Inc. (AAOI) : This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days. Applied Optoelectronics, Inc. Price and Consensus Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote Applied Optoelectronics has a PEG ratio 0.74, compared with 9.46 for the industry.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, August 21st: Applied Optoelectronics, Inc. (AAOI) : This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days. Click to get this free report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc. Price and Consensus Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote Applied Optoelectronics has a PEG ratio 0.74, compared with 9.46 for the industry.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, August 21st: Applied Optoelectronics, Inc. (AAOI) : This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days. Click to get this free report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Growth Score of A. Nu Skin Enterprises, Inc. Price and Consensus | Nu Skin Enterprises, Inc. Quote Nu Skin Enterprises has a PEG ratio 1.91, compared with 2.91 for the industry.
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20fc7df8-3752-4037-b543-adbd5b4b4d4f
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9815.0
|
2017-08-18 00:00:00 UTC
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Skyworks Banks on Product Strength, iPhone 8 Delay May Hurt
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AAOI
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https://www.nasdaq.com/articles/skyworks-banks-on-product-strength-iphone-8-delay-may-hurt-2017-08-18
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nan
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nan
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On Aug 17, we issued an updated research report on Woburn, MA-based, Skyworks Solutions Inc. SWKS , a leading provider of radio frequency (RF) and semiconductor system solutions.
The company recently reported strong fiscal third-quarter 2017 results. Both the top- as well as the bottom line surpassed the respective Zacks Consensus Estimate and improved significantly year over year. Notably, the company has beaten the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 3.05%.
Management also provided optimistic guidance for the fourth quarter. We believe that the impressive results and the guidance will help sustain the stock's momentum in the rest of 2017 and beyond.
Notably, shares of Skyworks gained 36.9% year-to-date, outperforming the industry's 31.7% rally.
Fundamentals Driving Growth
Skywork has gained traction following strong demand for Wi-Fi, Zigbee and LTE solutions. The company's products have been selected by the likes of Amazon AMZN in recent times.
Moreover, IoT remains a significant growth segment for the company. IoT volumes per industry projections are anticipated to reach 75 billion units by 2025, driven by robust demand for connected home, smart grid and virtual assistants.
Skywork's strength is further intensified by increased demand for highly integrated solutions as customers implement the next level of functionality for higher bandwidth.
With a customer base comprising the likes of Cisco CSCO in MIMO gateways, Nintendo in its Switch Gaming console, Fitbit, Garmin and LG, the company is on a strong growth trajectory. Notably, the upcoming 5G upgrade cycle is also a major positive for the company.
Skyworks Solutions, Inc. Revenue (TTM)
Skyworks Solutions, Inc. Revenue (TTM) | Skyworks Solutions, Inc. Quote
Late iPhone 8 Launch a Headwind
Reportedly, Apple AAPL , which contributes around 40% of Skyworks's revenues, is delaying the launch of iPhone 8. This is expected to keep the company's top line under pressure. Moreover, the weakness in China due to piled up inventory is another headwind for the company.
Additionally, heavy investments in R&D are escalating operating expenses, which is affecting margins. Significant pricing pressure, technological obsolescence and high concentration risks are other concerns.
Zacks Rank
Skyworks currently carries Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
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
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. IoT volumes per industry projections are anticipated to reach 75 billion units by 2025, driven by robust demand for connected home, smart grid and virtual assistants. Skywork's strength is further intensified by increased demand for highly integrated solutions as customers implement the next level of functionality for higher bandwidth.
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Skyworks Solutions, Inc. Revenue (TTM) Skyworks Solutions, Inc. Revenue (TTM) | Skyworks Solutions, Inc. Quote Late iPhone 8 Launch a Headwind Reportedly, Apple AAPL , which contributes around 40% of Skyworks's revenues, is delaying the launch of iPhone 8. Zacks Rank Skyworks currently carries Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Skyworks Solutions, Inc. Revenue (TTM) Skyworks Solutions, Inc. Revenue (TTM) | Skyworks Solutions, Inc. Quote Late iPhone 8 Launch a Headwind Reportedly, Apple AAPL , which contributes around 40% of Skyworks's revenues, is delaying the launch of iPhone 8. Zacks Rank Skyworks currently carries Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the company has beaten the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 3.05%. This is expected to keep the company's top line under pressure.
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adaf5ad8-af09-470a-a7ab-6b3968317c86
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9816.0
|
2017-08-18 00:00:00 UTC
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Ericsson (ERIC) Plans Massive Layoffs to Streamline Costs
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AAOI
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https://www.nasdaq.com/articles/ericsson-eric-plans-massive-layoffs-to-streamline-costs-2017-08-18
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nan
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nan
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According to an article in Svenska Dagblade, EricssonERIC is planning to cut 25,000 jobs outside Sweden in a desperate bid to contain costs and take its restructuring efforts to the next level. Although CEO Börje Ekholm announced impending job cuts earlier this month, the sheer magnitude has left industry insiders stunned.
Last month, the beleaguered infrastructure giant announced that it plans to double its 2016 underlying operating margin of 6% by ramping up its cost-reduction drive. To meet this end, Ericsson announced to implement cost savings with an annual run rate effect of at least SEK 10 billion ($1.2 billion) by mid-2018.
Job Cuts in Store
Over the past year, the company has sacked 7000 jobs in North America. The company is striving hard to slash common and service delivery costs, while keeping research and development costs unaltered. Details of the latest planned layoffs has been kept under wraps, as Ericsson did not comment which departments or countries will bear most of the brunt.
People familiar with the matter expect that the troubled media business, which is under review, and Managed Services division may be the worst affected. If sources are to be believed, Ericsson has plans to streamline operations by a whopping 80-90% in some markets and centralize operations in others.
Headwinds Galore
The premium networking, telecommunications equipment and services provider's financial troubles over the past few years have been well documented. Ericsson's repeated earnings misses, eroding profitability and precipitous revenue decline have left investors high and dry. Also, shrinking gross margins have been putting immense pressure on the bottom line. The stock has lost 9% in the past three months, wider than the industry 's average decline of 4.3%.
Concurrent with its second-quarter 2017 results, the company slashed its full-year guidance, signaling bleak times ahead. Mr. Ekholm warned that an uncertain market could wipe out as much as SEK 5 billion ($600 million) of operating income over the next year. There is also an increased risk of market and customer project adjustments, which can have a negative impact of SEK 3-5 billion on the operating income in the coming 12 months.
The consensus analyst community is showing no favor toward the stock, as the Zacks Consensus Estimate for full-year 2017 earnings has tumbled from 27 cents to 3 cents, dragged by three downward estimate revisions versus zero upward. Most of the company's troubles have stemmed from drying-up investments by major telecom equipment makers across the world.
These companies continue to slash investments in 4G and 3G services while waiting for the introduction of 5G networks. Ericsson expects a high single-digit percentage drop in the market for radio access networks this year, which is worse than previously expected. Also, sky-rocketing restructuring expenses, as part of itsconsistent efforts to turn around its ailing business, are making matters worse for Ericsson.
Despite these challenges, the Zacks Rank #3 (Hold) company believes that its cost-streamlining efforts, with focus on structural changes, will help generate lasting efficiency gains and boost cost competitiveness. Also, the company's focus on stabilizing its IT and cloud-product portfolio, and Managed Services business is expected to be conducive to long-term growth.
It remains to be seen whether Ekholm's restructuring plan can help Ericsson improve profitability and revitalize its leadership in technology and markets.
Stocks to Consider
A few better-ranked stocks in the industry are listed below:
Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 21.0% in the trailing four quarters, beating estimates all through. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Broadcom Limited AVGO has an average earnings surprise of 6.7%, beating estimates all through, over the trailing four quarters. It carries a Zacks Rank #2 (Buy).
Adobe Systems Incorporated ADBE holds a Zacks Rank #2 and generated an average earnings surprise of 8.1%, beating estimates in each of the trailing four quarters.
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
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
Adobe Systems Incorporated (ADBE): Free Stock Analysis Report
Broadcom Limited (AVGO): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Stocks to Consider A few better-ranked stocks in the industry are listed below: Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 21.0% in the trailing four quarters, beating estimates all through. Click to get this free report Ericsson (ERIC): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. According to an article in Svenska Dagblade, EricssonERIC is planning to cut 25,000 jobs outside Sweden in a desperate bid to contain costs and take its restructuring efforts to the next level.
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Stocks to Consider A few better-ranked stocks in the industry are listed below: Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 21.0% in the trailing four quarters, beating estimates all through. Click to get this free report Ericsson (ERIC): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Adobe Systems Incorporated ADBE holds a Zacks Rank #2 and generated an average earnings surprise of 8.1%, beating estimates in each of the trailing four quarters.
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Stocks to Consider A few better-ranked stocks in the industry are listed below: Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 21.0% in the trailing four quarters, beating estimates all through. Click to get this free report Ericsson (ERIC): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. 4 Surprising Tech Stocks to Keep an Eye on Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough.
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Stocks to Consider A few better-ranked stocks in the industry are listed below: Applied Optoelectronics, Inc. AAOI delivered an average positive earnings surprise of 21.0% in the trailing four quarters, beating estimates all through. Click to get this free report Ericsson (ERIC): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Adobe Systems Incorporated ADBE holds a Zacks Rank #2 and generated an average earnings surprise of 8.1%, beating estimates in each of the trailing four quarters.
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bcea6ab3-0447-4b5b-9b23-40fa13e21c32
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9817.0
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2017-08-17 00:00:00 UTC
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6 Reasons to Add Badger Meter (BMI) to Your Portfolio Now
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AAOI
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https://www.nasdaq.com/articles/6-reasons-to-add-badger-meter-bmi-to-your-portfolio-now-2017-08-17
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nan
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nan
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Shares of Badger Meter, Inc.BMI , the provider of flow measurement, control and communications solutions, have been performing well, of late. Shares of this Zacks Rank #1 (Strong Buy) stock have gained 21.8% year to date.
If you haven't taken advantage of the share price appreciation yet, the time is right for you to add the stock as it looks promising and is poised to carry the momentum ahead.
What's Working in Favor of Badger Meter?
Estimates on the Upswing
We note that earnings estimates for Badger Meter have displayed a healthy uptrend. For 2017, all the three estimates moved up over the last 30 days, with the Zacks Consensus Estimate rising roughly 4% to $1.26. The Zacks Consensus Estimate for 2018 also climbed 4.5% over the same time period to $1.40.
Positive 2H View
Badger Meter posted upbeat second-quarter 2017 results, with record earnings and revenues. The momentum is likely tocontinue in the second half of 2017, backed by the company's sturdy market position and cost containment efforts. The company is well poised to benefit from robust fundamentals and growth strategies over the long term.
D-Flow Acquisition
Badger Meter acquired D-Flow Technology in the second quarter. D-Flow Technology specializes in the design and development of ultrasonic technology, primarily for use in flow measurement. This acquisition is anticipated to help Badger Meter enhance its successful E-Series Ultrasonic product line, bring down production costs and provide a platform for further advancement of ultrasonic capabilities.
Increase in Dividend
On Aug 12, Badger Meter raised its quarterly dividend by 13% to 13 cents per share, reflecting its strong balance-sheet position and effort to drive shareholders return. Thus, the new annual dividend rate is 52 cents per share.
Ahead of the Industry
The company has outperformed the industry in the past one year. Its shares have rallied 29.9%, while the industry recorded gain of 11.9%.
Stock is Undervalued
Badger Meter has a trailing 12-month price earnings (P/E) ratio of 38.42, while the industry's average trailing 12-month P/E ratio is 18.81. As such, the stock seems undervalued.
Other Stocks to Consider
Other top-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and AppFolio, Inc. APPF . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has expected long-term growth rate of 18.75%.
Arista Networks has expected long-term growth rate of 21.60%.
AppFolio has expected long-term growth rate of 30.00%.
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AppFolio, Inc. (APPF): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Badger Meter, Inc. (BMI): 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.
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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Other Stocks to Consider Other top-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and AppFolio, Inc. APPF . Click to get this free report AppFolio, Inc. (APPF): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Badger Meter, Inc. (BMI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Badger Meter, Inc.BMI , the provider of flow measurement, control and communications solutions, have been performing well, of late.
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Other Stocks to Consider Other top-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and AppFolio, Inc. APPF . Click to get this free report AppFolio, Inc. (APPF): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Badger Meter, Inc. (BMI): Free Stock Analysis Report To read this article on Zacks.com click here. Stock is Undervalued Badger Meter has a trailing 12-month price earnings (P/E) ratio of 38.42, while the industry's average trailing 12-month P/E ratio is 18.81.
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Other Stocks to Consider Other top-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and AppFolio, Inc. APPF . Click to get this free report AppFolio, Inc. (APPF): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Badger Meter, Inc. (BMI): Free Stock Analysis Report To read this article on Zacks.com click here. Stock is Undervalued Badger Meter has a trailing 12-month price earnings (P/E) ratio of 38.42, while the industry's average trailing 12-month P/E ratio is 18.81.
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Other Stocks to Consider Other top-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and AppFolio, Inc. APPF . Click to get this free report AppFolio, Inc. (APPF): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Badger Meter, Inc. (BMI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of this Zacks Rank #1 (Strong Buy) stock have gained 21.8% year to date.
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a9a49cc0-3926-41e1-997f-3704f223238f
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9818.0
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2017-08-17 00:00:00 UTC
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AppFolio (APPF) Hits 52-Week High on Positive '17 Guidance
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AAOI
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https://www.nasdaq.com/articles/appfolio-appf-hits-52-week-high-on-positive-17-guidance-2017-08-17
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nan
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nan
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Share price of AppFolio Inc . APPF rallied to a new 52-week high of $39.33 on Aug 16, eventually closing a bit lower at $39.00. The stock has gained 63.5% year to date, substantially outperforming the 17.4% rally of the industry it belongs to.
The momentum can be attributed to AppFolio's consistent results as well as positive 2017 guidance. We note that the company has beaten the Zacks Consensus Estimate in all the four quarters with an average positive surprise of 291.24%.
Moreover, following the results, the Zacks Consensus Estimate for 2017 surged from a penny to 15 cents over the last 30 days. Estimate for 2018 also jumped from 11 cents to 23 cents per share over the same period.
Currently, AppFolio carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Notably, the company has a market cap of $1.32 billion.
2017 Guidance Up
In the recently concluded second-quarter 2017, AppFolio reported earnings of 8 cents per share, which was well ahead of the Zacks Consensus Estimate of a loss of a penny. The company had reported a loss of 7 cents in the year-ago quarter.
The significant improvement was attributed to strong revenues, which surged almost 37% to $35.9 million. The figure was also better than the Zacks Consensus Estimate.
AppFolio, Inc. Revenue (TTM)
AppFolio, Inc. Revenue (TTM) | AppFolio, Inc. Quote
Following the results, AppFolio raised its 2017 revenue guidance. The company now projects revenues in the range of $138-$139 million, up from previous guidance range of $136-$138 million.
What's Driving the Stock?
AppFolio offers cloud-based software solutions for property management and legal industry verticals. The company's expanding customer base - 10,800 property manager and 9,000 legal customers - at the end of the second quarter is the key driver.
AppFolio's Value+ services revenues jumped 43%, driven by increased usage of electronics payment platform and screening services.
Appfolio is highly focused on product and technology innovation. The company's software applications, Appfolio Property Manager and MyCase, are aiding it to further leverage cloud-based business software solutions. The company is continuously enhancing product features per customer specifications, which is expected to expand its customer base further.
However, intense competition in the cloud-based business software solutions space remains a concern.
Key Picks
Microchip MCHP , Applied Optoelectronics AAOI and FormFactor FORM are other stocks in the broad technology sector, which sport the same Zacks Rank as that of AppFolio (APPF).
Long-term earnings growth for Microchip, Applied Optoelectronics and FormFactor is currently pegged at 8%, 18.75% and 16%, respectively.
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AppFolio, Inc. (APPF): Free Stock Analysis Report
FormFactor, Inc. (FORM): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Microchip Technology Incorporated (MCHP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Key Picks Microchip MCHP , Applied Optoelectronics AAOI and FormFactor FORM are other stocks in the broad technology sector, which sport the same Zacks Rank as that of AppFolio (APPF). Click to get this free report AppFolio, Inc. (APPF): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report To read this article on Zacks.com click here. 2017 Guidance Up In the recently concluded second-quarter 2017, AppFolio reported earnings of 8 cents per share, which was well ahead of the Zacks Consensus Estimate of a loss of a penny.
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Click to get this free report AppFolio, Inc. (APPF): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks Microchip MCHP , Applied Optoelectronics AAOI and FormFactor FORM are other stocks in the broad technology sector, which sport the same Zacks Rank as that of AppFolio (APPF). AppFolio, Inc. Revenue (TTM) AppFolio, Inc. Revenue (TTM) | AppFolio, Inc. Quote Following the results, AppFolio raised its 2017 revenue guidance.
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Key Picks Microchip MCHP , Applied Optoelectronics AAOI and FormFactor FORM are other stocks in the broad technology sector, which sport the same Zacks Rank as that of AppFolio (APPF). Click to get this free report AppFolio, Inc. (APPF): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report To read this article on Zacks.com click here. AppFolio, Inc. Revenue (TTM) AppFolio, Inc. Revenue (TTM) | AppFolio, Inc. Quote Following the results, AppFolio raised its 2017 revenue guidance.
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Key Picks Microchip MCHP , Applied Optoelectronics AAOI and FormFactor FORM are other stocks in the broad technology sector, which sport the same Zacks Rank as that of AppFolio (APPF). Click to get this free report AppFolio, Inc. (APPF): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report To read this article on Zacks.com click here. We note that the company has beaten the Zacks Consensus Estimate in all the four quarters with an average positive surprise of 291.24%.
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909e2f00-8ef6-45f2-9639-170e510b3b8e
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9819.0
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2017-08-16 00:00:00 UTC
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Top Ranked Growth Stocks to Buy for August 16th
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AAOI
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https://www.nasdaq.com/articles/top-ranked-growth-stocks-to-buy-for-august-16th-2017-08-16
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nan
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nan
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Here are four stocks with buy ranks and strong growth characteristics for investors to consider today, August 16th:
Party City Holdco Inc. (PRTY): This distributor of party supplies, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings advancing 0.8% over the last 60 days.
Party City Holdco Inc. Price and Consensus
Party City Holdco Inc. Price and Consensus | Party City Holdco Inc. Quote
Party City Holdco has a PEG ratio 0.97, compared with 1.47 for the industry. The company possesses a Growth Score of A.
Party City Holdco Inc. PEG Ratio (TTM)
Party City Holdco Inc. PEG Ratio (TTM) | Party City Holdco Inc. Quote
Nu Skin Enterprises, Inc. (NUS): This distributor of anti-aging personal care products, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.
Nu Skin Enterprises, Inc. Price and Consensus
Nu Skin Enterprises, Inc. Price and Consensus | Nu Skin Enterprises, Inc. Quote
Nu Skin Enterprises has a PEG ratio 1.91, compared with 2.69 for the industry. The company possesses a Growth Score of A.
Nu Skin Enterprises, Inc. PEG Ratio (TTM)
Nu Skin Enterprises, Inc. PEG Ratio (TTM) | Nu Skin Enterprises, Inc. Quote
LogMeIn, Inc. (LOGM): This cloud-based services provider, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings advancing 9.8% over the last 60 days.
LogMein, Inc. Price and Consensus
LogMein, Inc. Price and Consensus | LogMein, Inc. Quote
LogMeIn has a PEG ratio 2.12, compared with 2.18 for the industry. The company possesses a Growth Score of A.
LogMein, Inc. PEG Ratio (TTM)
LogMein, Inc. PEG Ratio (TTM) | LogMein, Inc. Quote
Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days.
Applied Optoelectronics, Inc. Price and Consensus
Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote
Applied Optoelectronics has a PEG ratio 0.73, compared with 10.17 for the industry. The company possesses a Growth Score of A.
Applied Optoelectronics, Inc. PEG Ratio (TTM)
Applied Optoelectronics, Inc. PEG Ratio (TTM) | Applied Optoelectronics, Inc. Quote
See the full list of top ranked stocks here
Learn more about the Growth score and how it is calculated here .
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Party City Holdco Inc. (PRTY): Free Stock Analysis Report
Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report
LogMein, Inc. (LOGM): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 company possesses a Growth Score of A. LogMein, Inc. PEG Ratio (TTM) LogMein, Inc. PEG Ratio (TTM) | LogMein, Inc. Quote Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days. Click to get this free report Party City Holdco Inc. (PRTY): Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report LogMein, Inc. (LOGM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Here are four stocks with buy ranks and strong growth characteristics for investors to consider today, August 16th: Party City Holdco Inc. (PRTY): This distributor of party supplies, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings advancing 0.8% over the last 60 days.
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The company possesses a Growth Score of A. LogMein, Inc. PEG Ratio (TTM) LogMein, Inc. PEG Ratio (TTM) | LogMein, Inc. Quote Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days. Click to get this free report Party City Holdco Inc. (PRTY): Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report LogMein, Inc. (LOGM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Growth Score of A. Nu Skin Enterprises, Inc. PEG Ratio (TTM) Nu Skin Enterprises, Inc. PEG Ratio (TTM) | Nu Skin Enterprises, Inc. Quote LogMeIn, Inc. (LOGM): This cloud-based services provider, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings advancing 9.8% over the last 60 days.
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The company possesses a Growth Score of A. LogMein, Inc. PEG Ratio (TTM) LogMein, Inc. PEG Ratio (TTM) | LogMein, Inc. Quote Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days. Click to get this free report Party City Holdco Inc. (PRTY): Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report LogMein, Inc. (LOGM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Party City Holdco Inc. PEG Ratio (TTM) Party City Holdco Inc. PEG Ratio (TTM) | Party City Holdco Inc. Quote Nu Skin Enterprises, Inc. (NUS): This distributor of anti-aging personal care products, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.
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The company possesses a Growth Score of A. LogMein, Inc. PEG Ratio (TTM) LogMein, Inc. PEG Ratio (TTM) | LogMein, Inc. Quote Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products seller, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days. Click to get this free report Party City Holdco Inc. (PRTY): Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report LogMein, Inc. (LOGM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Party City Holdco Inc. PEG Ratio (TTM) Party City Holdco Inc. PEG Ratio (TTM) | Party City Holdco Inc. Quote Nu Skin Enterprises, Inc. (NUS): This distributor of anti-aging personal care products, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.
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660a030c-7ea5-4836-85e2-7cf3add03237
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9820.0
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2017-08-16 00:00:00 UTC
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Philips to Improve Lakeland's Patient Monitoring System
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AAOI
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https://www.nasdaq.com/articles/philips-to-improve-lakelands-patient-monitoring-system-2017-08-16
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nan
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nan
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Koninklijke Philips N.V.PHG recently announced that it has inked an agreement with non-profit community health care provider, Lakeland Health, to integrate its IntelliVue Guardian Solution with automated Early Warning Scoring. Lakeland is implementing IntelliVue Guardian into all three of its units.
Philips' IntelliVue Guardian Software, which has been rolled out in the United States early this year, has enjoyed a steady traction. It is well equipped with software and clinical decision algorithms, which will allow healthcare personnel to validate patient data directly, reduce human errors and save time. IntelliVue Guardian Software provides information to clinicians on a real-time basis to help them take better decisions.
It further allows healthcare personnel to review a patient's condition, improve workflow efficiency and simplify the medical documentation. Lakeland Health had first implemented Philips' patient monitoring technology in June 2016. The company's state-of-the-art technology has allowed it to bring down cases of cardiac and respiratory arrests significantly.
Over the past couple of years, Philips has successfully morphed from a lighting company into a healthcare technology provider. Also, the company's transformation from a hardware-oriented to a software-driven business, with a higher-margin and recurring-revenue model, sits well with investors. The stock has enjoyed an impressive run on the bourse for the past six months returning 25.9%, outperforming the industry 's average gain of 14.5%.
This Zacks Rank #3 (Hold) company is focusing on key opportunities in population health management, while improving its enterprise wide solutions for health systems, and collaborating with health care organizations to fortify its foothold in the healthcare industry. Also, Philips has been attracting positive analyst attention in the past 30 days, with estimates moving north. The Zacks Consensus Estimate for fiscal 2017 earnings has increased from $1.55 to $1.57.
Stocks to Consider
A few better-ranked stocks in the same space include Lam Research Corporation LRCX , Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT . While Lam Research and Applied Optoelectronics sport a Zacks Rank #1 (Strong Buy), Applied Materials carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Lam Research has an impressive earnings surprise history for the trailing four quarters, beating estimates all through, with an average positive surprise of 4.4%.
With four back-to-back earnings beats, Applied Optoelectronics has an average positive surprise of 21.0%.
Applied Materials has a striking earnings surprise history as well. The company surpassed estimates in each of the trailing four quarters, with an average positive surprise of 3.4%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Koninklijke Philips N.V. (PHG): Free Stock Analysis Report
Lam Research Corporation (LRCX): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): 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.
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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Stocks to Consider A few better-ranked stocks in the same space include Lam Research Corporation LRCX , Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Koninklijke Philips N.V. (PHG): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Philips' IntelliVue Guardian Software, which has been rolled out in the United States early this year, has enjoyed a steady traction.
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Stocks to Consider A few better-ranked stocks in the same space include Lam Research Corporation LRCX , Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Koninklijke Philips N.V. (PHG): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. While Lam Research and Applied Optoelectronics sport a Zacks Rank #1 (Strong Buy), Applied Materials carries a Zacks Rank #2 (Buy).
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Koninklijke Philips N.V. (PHG): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider A few better-ranked stocks in the same space include Lam Research Corporation LRCX , Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT . This Zacks Rank #3 (Hold) company is focusing on key opportunities in population health management, while improving its enterprise wide solutions for health systems, and collaborating with health care organizations to fortify its foothold in the healthcare industry.
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Stocks to Consider A few better-ranked stocks in the same space include Lam Research Corporation LRCX , Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Koninklijke Philips N.V. (PHG): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Over the past couple of years, Philips has successfully morphed from a lighting company into a healthcare technology provider.
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91676d8c-2fc1-4644-99e7-2a0f8349a56d
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9821.0
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2017-08-16 00:00:00 UTC
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Fujifilm (FUJIY) Q1 Earnings & Revenues Beat, Shares Up
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AAOI
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https://www.nasdaq.com/articles/fujifilm-fujiy-q1-earnings-revenues-beat-shares-up-2017-08-16
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nan
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nan
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Premium photographic image-product company, Fujifilm Holdings CorporationFUJIY reported solid earnings for first-quarter fiscal 2018 (ended Jun 30, 2017). Share price of the stock climbed 3.2% to $38.30, following the release of better-than-expected results on Aug 14.
Inside the Headlines
Net income for the quarter came in at ¥43.8 billion ($394.3 million), soaring a whopping 263% year over year. Quarterly earnings per American Depositary Receipt ("ADR") came in at 90 cents, surging 291.3% year over year. The bottom line also comfortably beat the Zacks Consensus Estimate of 21 cents per ADR.
Under the guidelines of the VISION 2016 plan (Apr 1, 2014-Mar 31, 2017), Fujifilm sucessfully boosted its profitability on the back of three major pillars - efficient management, expansion of international operations and launch of businesses.
Revenues
In the reported quarter, revenues improved 4.7% year over year to ¥571.5 billion ($5,143.9 million). In addition, the top line handily surpassed the Zacks Consensus Estimate of $5,118 million.
Revenues from the Imaging Solutions segment - 14.9% of the total revenue - came in at roughly ¥85.6 billion ($770.2 million). The Information Solutions segment's revenues were ¥230.2 billion ($2,072.3 million), representing 40.2% of the total revenue, while the Document Solutions segment generated ¥257.9 billion ($2,321.6 million), accounting for 44.9% of the total revenue.
Of the total revenue, domestic revenues accounted for 40.5%, while international revenues made up the remaining 59.5%.
Fujifilm Holdings Corp. Price, Consensus and EPS Surprise
Fujifilm Holdings Corp. Price, Consensus and EPS Surprise | Fujifilm Holdings Corp. Quote
Costs/Margins
Gross margin in the fiscal first quarter remained nearly flat year over year at 40.4%. Selling, general and administrative (SG&A), and R&D expenses were ¥195.2 billion ($1,757 million) or 34.1% of the total revenue.
Balance Sheet
Fujifilm exited the fiscal first quarter with cash and cash equivalents of roughly ¥795.4 billion ($7,082.4 million), down 9.2% from the figure recorded as of Mar 31, 2017. The company's long-term debt came in at ¥494.9 billion ($4,406.6 million), up 13.8% from the figure recorded at the end of fiscal 2017.
Cash Flow
In the first three months of fiscal 2018, Fujifilm's net cash from operating activities totaled ¥93.4 billion ($840.5 million), while its capital expenditure summed ¥13.4 billion ($120.3 million).
Outlook
The company estimates a 5.9% year-over-year rise in revenues to ¥2,460 billion in fiscal 2018. Operating income is projected at ¥185 billion, reflecting 7.4% growth from fiscal 2017. However, net income for fiscal 2018 is estimated to be down 4.9% year over year to ¥125 billion. This will result in earnings per share of ¥285.55.
Zacks Rank & Stocks to Consider
Fujifilm currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the same space are listed below:
Applied Optoelectronics, Inc. AAOI currently sports a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 21.04% for the last four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
ACI Worldwide, Inc. ACIW presently carries a Zacks Rank #2 (Buy) and generated an average positive earnings surprise of 31.25% over the trailing four quarters.
Axcelis Technologies, Inc. ACLS also carries a Zacks Rank #2 and has an average positive earnings surprise of 35.04% for the past four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report
ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Fujifilm Holdings Corp. (FUJIY): 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.
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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A few better-ranked stocks in the same space are listed below: Applied Optoelectronics, Inc. AAOI currently sports a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 21.04% for the last four quarters. Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY): Free Stock Analysis Report To read this article on Zacks.com click here. Under the guidelines of the VISION 2016 plan (Apr 1, 2014-Mar 31, 2017), Fujifilm sucessfully boosted its profitability on the back of three major pillars - efficient management, expansion of international operations and launch of businesses.
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Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the same space are listed below: Applied Optoelectronics, Inc. AAOI currently sports a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 21.04% for the last four quarters. The Information Solutions segment's revenues were ¥230.2 billion ($2,072.3 million), representing 40.2% of the total revenue, while the Document Solutions segment generated ¥257.9 billion ($2,321.6 million), accounting for 44.9% of the total revenue.
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Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the same space are listed below: Applied Optoelectronics, Inc. AAOI currently sports a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 21.04% for the last four quarters. The Information Solutions segment's revenues were ¥230.2 billion ($2,072.3 million), representing 40.2% of the total revenue, while the Document Solutions segment generated ¥257.9 billion ($2,321.6 million), accounting for 44.9% of the total revenue.
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A few better-ranked stocks in the same space are listed below: Applied Optoelectronics, Inc. AAOI currently sports a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 21.04% for the last four quarters. Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues In the reported quarter, revenues improved 4.7% year over year to ¥571.5 billion ($5,143.9 million).
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45947752-f186-4b07-9d4a-1d2acd12501a
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9822.0
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2017-08-14 00:00:00 UTC
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Barracuda Networks (CUDA) Catches Eye: Stock Jumps 8.34%
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AAOI
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https://www.nasdaq.com/articles/barracuda-networks-cuda-catches-eye%3A-stock-jumps-8.34-2017-08-14
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nan
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nan
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Barracuda Networks, Inc.CUDA was a big mover last session, as the company saw its shares rise over 8% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This reverses the recent trend for the company-as the stock is now down 1.94% in the past one-month time frame
The company has not seen any estimate revisions over the past few weeks, while the Zacks Consensus Estimate for the current quarter remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.
Barracuda Networks currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Barracuda Networks, Inc. Price and EPS Surprise
Barracuda Networks, Inc. Price and EPS Surprise | Barracuda Networks, Inc. Quote
A better-ranked stock in theComputer and Technology sector is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Is CUDA going up? Or down? Predict to see what others think:
Up or Down
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See these buy recommendations now >>
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
Barracuda Networks, Inc. (CUDA): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Barracuda Networks, Inc. Price and EPS Surprise Barracuda Networks, Inc. Price and EPS Surprise | Barracuda Networks, Inc. Quote A better-ranked stock in theComputer and Technology sector is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). Click to get this free report Barracuda Networks, Inc. (CUDA): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Barracuda Networks, Inc.CUDA was a big mover last session, as the company saw its shares rise over 8% on the day.
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Barracuda Networks, Inc. Price and EPS Surprise Barracuda Networks, Inc. Price and EPS Surprise | Barracuda Networks, Inc. Quote A better-ranked stock in theComputer and Technology sector is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). Click to get this free report Barracuda Networks, Inc. (CUDA): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Barracuda Networks, Inc. Price and EPS Surprise Barracuda Networks, Inc. Price and EPS Surprise | Barracuda Networks, Inc. Quote A better-ranked stock in theComputer and Technology sector is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). Click to get this free report Barracuda Networks, Inc. (CUDA): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): 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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Barracuda Networks, Inc. Price and EPS Surprise Barracuda Networks, Inc. Price and EPS Surprise | Barracuda Networks, Inc. Quote A better-ranked stock in theComputer and Technology sector is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). Click to get this free report Barracuda Networks, Inc. (CUDA): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Barracuda Networks, Inc.CUDA was a big mover last session, as the company saw its shares rise over 8% on the day.
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5ca0c9ff-67a0-4b01-92f0-a344678aff6d
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9823.0
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2017-08-14 00:00:00 UTC
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Stocks Snap 3-Day Losing Streak
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AAOI
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https://www.nasdaq.com/articles/stocks-snap-3-day-losing-streak-2017-08-14
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nan
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nan
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Stocks didn't even come close to making up all of yesterday's sharp losses, but it was nonetheless an encouraging end to a very rough week. Each of the major indices finished slightly on the positive side, which broke a three-day losing streak among rising geopolitical concerns.
The S&P was up 0.13% today to 2441.3, while the Dow inched forward 0.07% to 21858.3. The NASDAQ had the best performance with an advance of 0.64% to 6256.6.
"There is a strong belief that this market will finish at the highs of the year. As long as North Korea blows over, everything will be fine," said Jeremy in Counterstrike .
The war of words between the U.S. and North Korea took a heavy toll this week, as each of the indices were down more than 1%. It ended up being one of the worst weeks of the year so far. The S&P declined 1.4%, the Dow was off 1.1% and the NASDAQ slipped 1.5%.
However, as mentioned yesterday, these tensions knocked the complacency right out of the market and gave the editors plenty of chances to make moves. North Korea may be a problem for a while, but the market continues to be strong. In the highlights section below, you'll see a busy day for the portfolios as the editors took advantage of this new volatility by picking up a number of quality stocks at reduced prices.
Today's Portfolio Highlights:
Zacks Counterstrike: Jeremy has been waiting, hoping, even begging for some volatility in this boring market for a long time now…and he's finally gotten it. This North Korea stuff has the fear rising and this editor buying. On Friday, he added these three positions:
• Applied Optoelectronics (AAOI): This is a "dead cat bounce play", as shares of this stock have plunged from $100 to $60. However, Kevin isn't expecting AAOI to get back to triple digits, just bounce back to around $74 on short covering. It's a move for some quick profits.
• ProShares Short VIX Short-Term Futures ETF (SVXY): The editor does NOT think we are headed to war with North Korea, which means the VIX's recent surge to 17 needs to come down. SVXY is a great way to short the VIX as it retreats to the 12-13 area.
• Canadian Pacific Railway (CP): Shares have dipped despite beating on EPS and revenue in its last report. It has now moved into a coveted Fibonacci long setup, so Jeremy added it and plans to ride the stock toward its long-term target of $173.
The portfolio is adding AAOI with a 7% allocation, while SVXY and CP each get 8% allocations. Read the complete commentary for a lot more on these moves, including a look at their charts.
Insider Trader: The portfolio swapped out travel companies on Friday, as Tracey sold HGV due basically to a lack of interest for timeshares in the market. She replaced it by adding Summit Hotel Properties (INN), a REIT with 79 upscale hotels that includes brands like Marriott, Hilton and Hyatt. Shares are down more than 15% in the past month following a soft second quarter report. However, the CEO and the EVP & COO obviously feel that the selloff is overdone since they both bought shares of their own company recently. The complete commentary has a lot more info on this new addition.
Options Trader: The portfolio's bull call spreads in Dover (DOV) have declined to breakeven due to the market's recent pullback. Kevin still likes the name, but now he needs more time since the Sept options only have about 30 days left before expiration. Therefore, he sold the soon-to-expire options and added a couple new bull call spreads by buying to open 2 Dec. 85.00 Calls AND selling to open 2 Dec. 90.00 Calls. With these December options, the portfolio has now extended its chances for profit by an extra 3 months.
In addition, Kevin has been looking to add an energy company to the portfolio, and this pullback opened up a great opportunity. He decided to add a couple bull call spreads in Phillips 66 (PSX) by buying to open 2 Jan 85.00 Calls AND selling to open 2 Jan 90.00 Calls. Get more specifics on both of these moves in the full write-up.
Income Investor: Air Products and Chemicals (APD) is a leading industrial gases company that recently reported a strong quarterly report, including an earnings beat, a revenue beat and a raised guidance. In addition to all of this, Neena likes that the company is a "dividend aristocrat", which means it has grown dividends for a least 25 straight years. Its dividend yield is currently 2.6%. As announced yesterday, the editor added APD to the portfolio on Friday. The full write-up has more on this new pick.
Stocks Under $10: Like most biotech companies, ImmunoGen (IMGN) isn't profitable at the moment. But what caught Brian Bolan's attention was two straight better-than-expected quarters and rising earnings estimates. Plus, the stock was down approximately 5% in yesterday's pullback, so the editor got a bit of a bargain when he bought a position early this morning. Make sure to read the editor's full commentary on this new pick.
Momentum Trader: " Another day, another headlining tweet, but still, no World War 3. After a few tense sessions the market came to its senses a bit today with stocks rebounding a bit to close out the week.
"It wasn't a banner day by any stretch of the imagination but I'll take it as a victory. Volatility calmed down a bit and may have stopped its forward progression. I'm sure after a weekend off that cooler heads will prevail into next week and we can get back to counting money.
"For the record, I'm short WW3. That means I don't expect to see a war breakout here. Yes there is incendiary rhetoric but at the end of the day I believe that's all it really is. Barring a conflict, I expect the market to return to its winning ways as the NASDAQ bounced on the 50-day." -- Dave Bartosiak
Have a Great Weekend,
Jim Giaquinto Recommendations from Zacks' Private Portfolios:
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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.
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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On Friday, he added these three positions: • Applied Optoelectronics (AAOI): This is a "dead cat bounce play", as shares of this stock have plunged from $100 to $60. However, Kevin isn't expecting AAOI to get back to triple digits, just bounce back to around $74 on short covering. The portfolio is adding AAOI with a 7% allocation, while SVXY and CP each get 8% allocations.
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On Friday, he added these three positions: • Applied Optoelectronics (AAOI): This is a "dead cat bounce play", as shares of this stock have plunged from $100 to $60. However, Kevin isn't expecting AAOI to get back to triple digits, just bounce back to around $74 on short covering. The portfolio is adding AAOI with a 7% allocation, while SVXY and CP each get 8% allocations.
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On Friday, he added these three positions: • Applied Optoelectronics (AAOI): This is a "dead cat bounce play", as shares of this stock have plunged from $100 to $60. However, Kevin isn't expecting AAOI to get back to triple digits, just bounce back to around $74 on short covering. The portfolio is adding AAOI with a 7% allocation, while SVXY and CP each get 8% allocations.
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On Friday, he added these three positions: • Applied Optoelectronics (AAOI): This is a "dead cat bounce play", as shares of this stock have plunged from $100 to $60. However, Kevin isn't expecting AAOI to get back to triple digits, just bounce back to around $74 on short covering. The portfolio is adding AAOI with a 7% allocation, while SVXY and CP each get 8% allocations.
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a935f27f-60a7-4bfe-af53-017f651126b8
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9824.0
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2017-08-14 00:00:00 UTC
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Red Hat (RHT) Upgraded to Strong Buy on Diversified Portfolio
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AAOI
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https://www.nasdaq.com/articles/red-hat-rht-upgraded-to-strong-buy-on-diversified-portfolio-2017-08-14
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nan
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nan
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On Aug 12, Red Hat Inc.RHT was upgraded to a Zacks Rank #1 (Strong Buy). The recent upgrade can be attributed to the company's rapid growth in its cloud offerings leading to an expansion in its clientele.
Red Hat's sustained focus on enhancing its portfolio through strategic acquisitions and partnerships is generating incremental revenues, strengthening technology leadership and resulting in a more favorable mix of business.
Notably, Red Hat's stock has gained 41.1% year to date, substantially outperforming the 21.4% rally of the industry to which it belongs to.
Growth Catalysts
The company is benefiting from strong deal wins, improving recurring revenues and cross-selling of cloud-based technology. The Amazon Web Services - OpenShift partnership extension reflects strength in the company's solutions and platform.
The availability of its Red Hat Enterprise Linux (RHEL) 7.4, which enhances workload security and performance for traditional and cloud-native applications while limiting IT complexities; and Red Hat OpenShift Container Platform 3.6, which provides greater application security, compliance and service consistency, is expected to expand its customer base further.
Further, its emerging technologies have gained a lot of traction in recent times. The company anticipates that revenues from the on-demand Certified Cloud and Service Providers (CCSPs) will reach $200 million annual run-rate in the current quarter.
Red Hat inked total 44 deals over $1 million in the last reported quarter. Of these deals, seven were worth more than $5 million and four more than $10 million and more than $20 million.
We note that Red Hat has a strong customer as well as partner base that include the likes of IBM, Intel INTC , Dell Technologies, Google cloud platform and Microsoft MSFT Azure.
Moreover, the company's strategy of acquiring companies that can be easily integrated into current its business has helped it to expand its foothold in higher-growth segments, such as Hybrid cloud and other emerging technologies. The company's latest acquisition of the assets and technology of Permabit Technology will help it in providing more efficient storage options to its enterprise customers.
Red Hat, Inc. Price and Consensus
Red Hat, Inc. Price and Consensus | Red Hat, Inc. Quote
Positive Earnings Surprise History
Red Hat also delivered better-than-expected results in the last reported quarter. Earnings (including stock-based compensation) of 40 cents per share surpassed the Zacks Consensus Estimate of 6 cents. Notably, Red Hat has outperformed the Zacks Consensus Estimate in the trailing four quarters with an average positive surprise of 11.14%.
Moreover, revenues increased 19.2% year over year to $676.8 million, primarily driven by strong subscription revenues and cross-selling of cloud-enabled technology. The figure was better than the Zacks Consensus Estimate of $647 million and also better than the guided range of $643-$650 million.
The robust performance drove current quarter and full year estimates in the last 60 days. The Zacks Consensus Estimate for the second quarter and full year 2018 increased 4.4% and 3.3% to 47 cents and $1.88, respectively.
Another Key Pick
Applied Optoelectronics AAOI is another top-ranked stock in the sector. You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Optoelectronics is projected to be 18.75%.
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Red Hat, Inc. (RHT): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Intel Corporation (INTC): 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.
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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Another Key Pick Applied Optoelectronics AAOI is another top-ranked stock in the sector. Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Red Hat's sustained focus on enhancing its portfolio through strategic acquisitions and partnerships is generating incremental revenues, strengthening technology leadership and resulting in a more favorable mix of business.
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Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Another Key Pick Applied Optoelectronics AAOI is another top-ranked stock in the sector. Notably, Red Hat's stock has gained 41.1% year to date, substantially outperforming the 21.4% rally of the industry to which it belongs to.
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Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Another Key Pick Applied Optoelectronics AAOI is another top-ranked stock in the sector. The availability of its Red Hat Enterprise Linux (RHEL) 7.4, which enhances workload security and performance for traditional and cloud-native applications while limiting IT complexities; and Red Hat OpenShift Container Platform 3.6, which provides greater application security, compliance and service consistency, is expected to expand its customer base further.
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Another Key Pick Applied Optoelectronics AAOI is another top-ranked stock in the sector. Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. On Aug 12, Red Hat Inc.RHT was upgraded to a Zacks Rank #1 (Strong Buy).
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ec99b356-844d-4e06-9d52-5ffb7e542be7
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9825.0
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2017-08-11 00:00:00 UTC
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Broadridge (BR) Q4 Earnings in Line; Revenues Beat Estimates
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AAOI
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https://www.nasdaq.com/articles/broadridge-br-q4-earnings-in-line-revenues-beat-estimates-2017-08-11
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nan
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nan
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Broadridge Financial Solutions Inc.BR reported modest fourth-quarter fiscal 2017 results.
The company posted adjusted earnings per share of $1.71 per share (excluding acquisition and amortization related expenses), matching the Zacks Consensus Estimate. However, adjusted earnings increased 17.9% on a year-over-year basis.
In the last one year, Broadridge's share price increased 5.4%, outperforming the Zacks industry , which gained only 1.9%.
Quarter Details
Broadridge's fourth-quarter revenues of $1.346 billion increased a whopping 38% year over year. Moreover, it surpassed the Zacks Consensus Estimate of $1.310 billion. The year-over-year increase was driven primarily by North American Customer Communications (NACC) acquired from DST Systems Inc. DST . Better-than-expected revenues from closed sale were also a catalyst.
Recurring fee revenues increased 24% during the quarter that included contribution from Net New Business, internal growth and acquisitions related synergies. Recurring revenues from closed sales during the quarter were $64 million, reflecting an increase of 12% on a year-over-year basis. Distribution revenues during the quarter increased 65%, primarily backed by the acquisition of NACC.
Revenues from the Investor Communication Solutions segment (86% of total revenue) increased 45% from the year-ago quarter to $1.162 billion. The improvement was attributable to higher recurring revenues from net new business, internal growth and NACC acquisitions.
The Global Technology and Operations segment (17% of total revenue) revenues came in at $210 million, reflecting an increase of 11% from the year-ago quarter. The increase was driven by higher Net New Business from closed sales, internal growth and recent acquisition.
Broadridge's adjusted operating income margin contracted from 28.6% to 24.1%. Selling, general and administrative expenses as a percentage of revenues also contracted from 12.1% to 10.3% on a year-over-year basis. The company's adjusted net income of $204 million or $1.71 per share was up from $176 million or $1.45 per share in the year-ago period.
Broadridge exited the quarter with cash and cash equivalents of $271.1 million compared with $269.5 million in the previous quarter. Long-term debt (including current portion) on the balance sheet totalled $1.102 billion.
Cash flow used in operating activities during the twelve months ended Jun 30, 2017 was $515.9 million. Free cash flow came in at 402.2 million.
The company did not repurchase any shares during the quarter but declared a dividend of 33 cents during this period. On Aug 9, 2017, Broadridge declared a quarterly dividend of 36.5 cents payable on Oct 3, 2017. Moreover, the company declared an annual dividend of $1.46 per share an increase of 11% year over year.
Fiscal 2017 highlights
Broadridge's fiscal 2017 revenues of $4.1 billion increased a significant 43% year over year, on the back of 6% organic growth in recurring fee revenues and the acquisition of NACC business. Closed sales were up 25% year over year and came in at $188 million in fiscal 2017. Adjusted EPS for fiscal came in at $3.13 per share, up 15% year over year.
Fiscal 2018 Guidance
Broadridge provided 2018 outlook. The company projects revenue growth in the range of 2-3%, while recurring revenue growth is expected in the range of 4-6%. The company anticipates recurring revenues from closed sales to be a key growth driver and range within $170 million to $210 million. Adjusted operating income margin is expected to be approximately 16%. Adjusted earnings are expected to increase in the range of 15-19%. Management expects free cash flow in the range of $400-$450 million.
Our Take
Broadridge reported modest fourth-quarter results. Year-over-year comparisons on both the counts were favorable driven by higher recurring revenues, internal growth, contribution from Net New Business, higher distribution revenues and acquisition-related synergies.
We remain optimistic about Broadridge's strategic acquisitions, product launches, share repurchase program and dividend paying initiatives. We also believe that the company's close association with Accenture ACN will be beneficial in the long run.
However, competition from DST Systems Inc. and pricing pressure remain headwinds.
Currently, Broadridge carries a Zacks Rank #2 (Buy).
Another top-ranked stock worth considering in the broader technology sector is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has an expected long-term EPS growth rate of 18.75%.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker 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
DST Systems, Inc. (DST): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Accenture PLC (ACN): Free Stock Analysis Report
Broadridge Financial Solutions, Inc. (BR): 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.
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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Another top-ranked stock worth considering in the broader technology sector is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Click to get this free report DST Systems, Inc. (DST): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Recurring fee revenues increased 24% during the quarter that included contribution from Net New Business, internal growth and acquisitions related synergies.
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Click to get this free report DST Systems, Inc. (DST): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Another top-ranked stock worth considering in the broader technology sector is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Recurring fee revenues increased 24% during the quarter that included contribution from Net New Business, internal growth and acquisitions related synergies.
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Click to get this free report DST Systems, Inc. (DST): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Another top-ranked stock worth considering in the broader technology sector is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Quarter Details Broadridge's fourth-quarter revenues of $1.346 billion increased a whopping 38% year over year.
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Another top-ranked stock worth considering in the broader technology sector is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Click to get this free report DST Systems, Inc. (DST): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Recurring revenues from closed sales during the quarter were $64 million, reflecting an increase of 12% on a year-over-year basis.
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c7750c79-11d8-4032-ad6c-40c3b1a02f4a
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9826.0
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2017-08-11 00:00:00 UTC
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QuickLogic's (QUIK) Q2 Loss Narrows Y/Y, Q3 Outlook Dismal
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AAOI
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https://www.nasdaq.com/articles/quicklogics-quik-q2-loss-narrows-y-y-q3-outlook-dismal-2017-08-11
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nan
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nan
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QuickLogic Corp . QUIK reported adjusted loss of 5 cents per share in second-quarter 2017, which was in line with the Zacks Consensus Estimate by 3 cents but narrowed on a year-over-year basis.
Revenues of $3 million increased 11.4% from the year-ago quarter and meet the Zacks Consensus Estimate. Segment wise, new products (49.2% of revenues) surged 24.5% year over year to $1.5 million. Mature products (50.8% of revenues) inched up 1.1% to $1.5 million. Samsung accounted for 21% of total revenue as compared with 22% during the previous quarter.
Management lowered guidance for the third and fourth quarter of 2017, primarily due to delay in certain key design wins. However, the company believes that growth drivers in the wearable, hearable and IoT applications are intact. This will help QuickLogic deliver sustainable new product revenue growth starting fourth-quarter 2017.
QuickLogic has lost 5.8% of its value year to date versus the 24.6% growth of its industry .
Product Details
QuickLogic's EOS S3 Sensor Processing Platform was selected by Qiwo Smartlink Technology Company and Janyun during the quarter. Management anticipates production shipments to support initial OEM orders that will start in the fourth quarter of 2017. These companies have also stated their intent to use QuickLogic's EOS S3 in future designs.
QuickLogic Corporation Price, Consensus and EPS Surprise
QuickLogic Corporation Price, Consensus and EPS Surprise | QuickLogic Corporation Quote
Moreover, the company entered into collaboration with AISpeech, a leading enterprise of Artificial Intelligence (AI) speech technology that is focusing on the Chinese market.
QuickLogic released new voice "Barge-in" feature, which uses acoustic echo cancellation (AEC) technology to enable verbal commands even when there is background sound. Moreover, the company launched new sensor fusion software from developer CyweeMotion that supports EOS S3 in smartphones using the Android "Nougat" operating system.
QuickLogic established a support center in Taiwan to accelerate the adoption of the company's eFPGA IP. The center is helping the company in building engagements with prospective customers, which can be eventually turned into design wins.
Strengthening Advisory Board
Moreover, during the quarter, QuickLogic hired Bernie Rosenthal who was a co-founder of Tensilica - acquired by Cadence Design Systems CDNS in 2013. Per management, Bernie Rosenthal who has extensive experience in handling negotiations with top-tier semiconductor companies and OEMs will be instrumental in refining QuickLogic's IP business model.
Operating Details
Reported gross margin expanded from 28.6% in the year-ago quarter to 45.6% in the reported quarter, primarily due to higher IP license revenue and better product mix.
Reported operating expenses declined from $6.3 million in the year-ago quarter to $4.9 million, primarily due to the cost savings from QuickLogic's strategic realignment efforts.
Non-GAAP operating loss was $3.2 million narrower than loss of $4.7 million in the year-ago quarter.
Growth Drivers Intact
For third-quarter 2017, management projects revenues of approximately $3 million (+/- 10%). New product revenues are forecasted to be almost $1.7 million, while mature product revenue are projected to be $1.3 million.
Gross margin is anticipated to be approximately 45% (+/- 3%) benefiting from recognized IP license revenue and a favorable mix of customers and products.
Non-GAAP operating expenses are expected at approximately $4.6 million (+/- $300K).
At mid-point of guidance, non-GAAP loss is expected to be approximately $3.2 million or 4 cents per share.
For the third quarter, management expects to use cash between $3.0 million and $3.5 million primarily due to working capital needs and capital expenditure associated with the company's eFPGA development effort.
QuickLogic believes that solid growth prospects along with improving customer engagement will help it to deliver its target operating model of greater than 50% revenue growth at a non-GAAP gross margin range of 45% to 50% in 2018. Moreover, non-GAAP operating margin will be more than 10% as revenues increase.
Zacks Rank & Key Picks
QuickLogic carries a Zacks Rank #3 (Hold). Applied Optoelectronics AAOI and Infineon IFNNY with a Zacks Rank #1 (Strong Buy) are better-ranked stocks in the same industry. You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Applied Optoelectronics and Infineon is currently pegged at 18.75% and 14.75%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker 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
Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report
Infineon Technologies AG (IFNNY): Free Stock Analysis Report
QuickLogic Corporation (QUIK): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Applied Optoelectronics AAOI and Infineon IFNNY with a Zacks Rank #1 (Strong Buy) are better-ranked stocks in the same industry. Click to get this free report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report QuickLogic Corporation (QUIK): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. QuickLogic released new voice "Barge-in" feature, which uses acoustic echo cancellation (AEC) technology to enable verbal commands even when there is background sound.
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Click to get this free report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report QuickLogic Corporation (QUIK): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics AAOI and Infineon IFNNY with a Zacks Rank #1 (Strong Buy) are better-ranked stocks in the same industry. QuickLogic Corporation Price, Consensus and EPS Surprise QuickLogic Corporation Price, Consensus and EPS Surprise | QuickLogic Corporation Quote Moreover, the company entered into collaboration with AISpeech, a leading enterprise of Artificial Intelligence (AI) speech technology that is focusing on the Chinese market.
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Click to get this free report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report QuickLogic Corporation (QUIK): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics AAOI and Infineon IFNNY with a Zacks Rank #1 (Strong Buy) are better-ranked stocks in the same industry. QuickLogic Corporation Price, Consensus and EPS Surprise QuickLogic Corporation Price, Consensus and EPS Surprise | QuickLogic Corporation Quote Moreover, the company entered into collaboration with AISpeech, a leading enterprise of Artificial Intelligence (AI) speech technology that is focusing on the Chinese market.
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Applied Optoelectronics AAOI and Infineon IFNNY with a Zacks Rank #1 (Strong Buy) are better-ranked stocks in the same industry. Click to get this free report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report QuickLogic Corporation (QUIK): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. New product revenues are forecasted to be almost $1.7 million, while mature product revenue are projected to be $1.3 million.
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372c2754-e03a-4039-858e-b1054e41535e
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9827.0
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2017-08-10 00:00:00 UTC
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Zacks.com featured highlights: Nutrisystem, Kronos Worldwide, Applied Optoelectronics and The Brink's
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AAOI
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https://www.nasdaq.com/articles/zacks.com-featured-highlights%3A-nutrisystem-kronos-worldwide-applied-optoelectronics-and
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nan
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nan
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For Immediate Release
Chicago, IL - August 10, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ).
Ride These 4 Momentum Stocks for Exciting Returns
When value or growth investing fails to fetch sustained profits, one should explore another time-tested winning strategy that simply bets on the frontrunner stocks. Translated, one of the most successful strategies today is to get in on momentum stocks at the right time.
At the core, momentum investing is buying high, selling higher. It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction than move against the drift. Thus, this strategy calls for hitching a ride on an already fast-moving train, without fretting about valuations or growth prospects. But why does the momentum strategy work?
There is a simple reason behind this. It works because we are humans!
There's a whole laundry list of behavioral biases that most investors exhibit and these emotional responses and mistakes are the very reason that momentum strategy works. For instance, there are investors who are anxious about booking losses and hence hold on to losing stocks for too long, hopeful of a rebound in the prices. On the other hand, a few investors sell their winners way too early.
Furthermore, investors initially tend to under-react to news, events or data releases. However, once things become clear, they tend to go with the flow and overreact, causing dramatic price reactions.
These behavioral problems extend trends, and thus open up huge opportunities for momentum players. So basically, it's a way to profit from the general human tendency to extrapolate current trends into the future.
Momentum investing is thus based on that gap in time that exists before the mean reversion occurs, i.e. before prices become rational again.
Momentum strategies have been known to be alpha-generative over a long period of time and across markets. So obviously, this strategy is quite tricky to implement, as detecting these trends is no child's play.
Here, we have created a strategy that will help investors get in on these fast movers and make handsome gains. Our screen will help you benefit from both long-term price momentum and a short-term pullback in price, which would reflect some profit-taking in the stock.
Screening Parameters
Percentage Change Price (52 Weeks) = Top #50: This item selects the top 50 stocks with the best percentage price change over the last 52 weeks. This parameter ensures we get stocks that have appreciated the maximum over the past one year.
Percentage Change in Price (1 Week) = Bottom #10: From the above 50 stocks, we then choose those that are also among the 10 worst performers over a short one-week period.
Zacks Rank #1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today's Zacks #1 Rank stocks here.
Momentum Style Score of B or better: A top Momentum Style Score knocks out a lot of the screening process as it takes into account several factors including volume change and performance relative to its peers. It indicates when the timing is best to grab a stock and take advantage of its momentum with the highest probability of success. Stocks with a Momentum Style Score of 'A' or 'B,' when combined with a Zacks Rank #1 or 2 (Buy) handily outperform other stocks.
Current Price greater than 5: The stocks must all be trading at a minimum of $5.
Market Capitalization = Top #3000: We have chosen stocks that are among the top 3000 in terms of market value to ensure strong liquidity.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that these stocks are easily tradable.
Here are four of the eight stocks that made it through this screen:
Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), which provides weight management products and services for women and men in the United States, has gained an impressive 85.7% over the past one year. The company has a Momentum Style Score of 'A.'
Shares of Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), which produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally, went up over 217% in the past one year. The company has a Momentum Style Score of 'B.'
Applied Optoelectronics (NASDAQ: AAOI - Free Report ) designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. The stock appreciated a whopping 387.7% in the past one year and has a Momentum Style Score of 'A.'
The Brink's Company (NYSE: BCO - Free Report ) provides secure transportation, cash management services, and other security-related services worldwide. The stock soared almost 108% in the past one year and has a Momentum Style Score of 'B.'
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
Get the full Report on NTRI - FREE
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Contact: Jim Giaquinto
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Email: pr@zacks.com
Visit: https://www.zacks.com/performance
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
NutriSystem Inc (NTRI): Free Stock Analysis Report
Brink's Company (The) (BCO): 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.
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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For Immediate Release Chicago, IL - August 10, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ). Applied Optoelectronics (NASDAQ: AAOI - Free Report ) designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. Get the full Report on NTRI - FREE Get the full Report on KRO - FREE Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - August 10, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ). Get the full Report on NTRI - FREE Get the full Report on KRO - FREE Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Kronos Worldwide Inc (KRO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NutriSystem Inc (NTRI): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - August 10, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ). Get the full Report on NTRI - FREE Get the full Report on KRO - FREE Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Kronos Worldwide Inc (KRO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NutriSystem Inc (NTRI): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - August 10, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ). Applied Optoelectronics (NASDAQ: AAOI - Free Report ) designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. Get the full Report on NTRI - FREE Get the full Report on KRO - FREE Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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cd67f745-cbc6-42f4-b5d7-df4b4904ed44
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9828.0
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2017-08-10 00:00:00 UTC
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Stratasys (SSYS) Q2 Earnings and Revenues Beat Estimates
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AAOI
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https://www.nasdaq.com/articles/stratasys-ssys-q2-earnings-and-revenues-beat-estimates-2017-08-10
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nan
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nan
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Stratasys Ltd.SSYS reported decent results for second-quarter 2017, wherein the top and bottom lines, both, surpassed the Zacks Consensus Estimate. Furthermore, although the top line witnessed a marginal fall, the bottom line improved significantly on a year-over-year basis.
For the second quarter, the company reported adjusted earnings per share (excluding amortization, impairment and other one-time items but including stock-based compensation) of 8 cents, which came much above the estimate of a penny. Moreover, it marked tremendous eight-fold jump from a penny reported in the year-ago quarter.
On a GAAP basis, the company reported loss of 11 cents per share compared with a loss of 36 cents per share witnessed in the year-ago quarter. On non-GAAP basis too, the company marked significant year-over-year improvement with earnings per share increasing to 17 cents from 12 cents posted in second-quarter 2016. The year-over-year improvement in bottom-line results came mainly due to the company's consistent focus on reducing operating expenses, which were partially offset by lower revenues.
Shares of Stratasys were seen volatile following the earnings release, moving up to $22.29 and down to $21.67, before settling at $22.14. Notably, the stock has outperformed the industry to which it belongs to in the year-to-date period. The stock yielded a return of 34.8% over the period, outperforming the industry's return of 11.8%.
Quarter Details
Stratasys reported revenues of $170 million came ahead of the Zacks Consensus Estimate of $167 million. However, on a year-over-year basis, the figure edged down 1.2% mainly due to the fall in Product revenues.
Segment wise, Product revenues were down 2.2% from the year-ago quarter to $121 million mainly due to a 6% decline in System sales, which was affected by a shift in product mix toward the lower-end system. Revenues from Services, however, were up 1.4% year over year to $49 million.
Stratasys' non-GAAP gross margin contracted 290 basis points (bps) to 53%, primarily due to the shift in sales mix.
The company's non-GAAP operating expenses decreased 8.1% year over year to $79 million, primarily due to the company's continuous focus on improving efficiencies. Also, as a percentage of revenues, non-GAAP operating expenses went down year over year from 50% to 46.5%. The decrease was primarily due to lower research and development expenses, and selling, general and administrative expenses.
The company posted non-GAAP operating income of $11.1 million in the reported quarter compared with $10.2 million reported in the year-ago quarter.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. Price, Consensus and EPS Surprise | Stratasys, Ltd. Quote
The company exited the quarter with cash and cash equivalents, and short-term bank deposits of $305.3 million, up from $297.2 million at the end of the previous quarter. Inventories came in at approximately $116.5 million compared with $116 million in the previous quarter. Long-term debt as of Jun 30, 2017, came in at $20.4 million.
Guidance
Stratasys reiterated its full-year 2017 outlook. The company still expects revenues in the range of $645-$680 million (mid-point $662.5 million). The Zacks Consensus Estimate is pegged at $668.8 million. Non-GAAP earnings per share are projected between 19 cents and 37 cents.
Furthermore, the company still anticipates non-GAAP operating margin to be in the range of 3-5%. Capital expenditure is estimated in the range of $40-$50 million, in line with the previous guidance range.
Bottom Line
Stratasys reported modest second-quarter results, wherein the top and bottom lines both came ahead of the respective Zacks Consensus Estimate. The bottom-line results, which displayed year-over-year improvement, were also encouraging.
It seems that Stratasys' turnaround strategies, which include launching innovative products, strategic partnerships and acquisitions, and improving cost efficiencies, are paying off. These initiatives will help Stratasys to gain more market share as prospects of the 3D printing industry appears bright.
Currently, Stratasys carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Applied Optoelectronics AAOI , Lam Research Corporation LRCX and FormFactor Inc. FORM , all sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term expected EPS growth rates for Applied Optoelectronics, Lam Research and FormFactor are 18.8%, 17.2% and 16%, respectively.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Stratasys, Ltd. (SSYS): Free Stock Analysis Report
Lam Research Corporation (LRCX): 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.
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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Some better-ranked stocks in the broader technology sector are Applied Optoelectronics AAOI , Lam Research Corporation LRCX and FormFactor Inc. FORM , all sporting Zacks Rank #1 (Strong Buy). Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Stratasys, Ltd. (SSYS): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. For the second quarter, the company reported adjusted earnings per share (excluding amortization, impairment and other one-time items but including stock-based compensation) of 8 cents, which came much above the estimate of a penny.
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Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Stratasys, Ltd. (SSYS): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology sector are Applied Optoelectronics AAOI , Lam Research Corporation LRCX and FormFactor Inc. FORM , all sporting Zacks Rank #1 (Strong Buy). The company's non-GAAP operating expenses decreased 8.1% year over year to $79 million, primarily due to the company's continuous focus on improving efficiencies.
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Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Stratasys, Ltd. (SSYS): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology sector are Applied Optoelectronics AAOI , Lam Research Corporation LRCX and FormFactor Inc. FORM , all sporting Zacks Rank #1 (Strong Buy). The company posted non-GAAP operating income of $11.1 million in the reported quarter compared with $10.2 million reported in the year-ago quarter.
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Some better-ranked stocks in the broader technology sector are Applied Optoelectronics AAOI , Lam Research Corporation LRCX and FormFactor Inc. FORM , all sporting Zacks Rank #1 (Strong Buy). Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Stratasys, Ltd. (SSYS): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. On non-GAAP basis too, the company marked significant year-over-year improvement with earnings per share increasing to 17 cents from 12 cents posted in second-quarter 2016.
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047a5680-3c2e-465a-ac5a-3993817c058e
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9829.0
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2017-08-10 00:00:00 UTC
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Pitney Bowes (PBI) Hit by Rising Expense, Poor End Markets
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AAOI
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https://www.nasdaq.com/articles/pitney-bowes-pbi-hit-by-rising-expense-poor-end-markets-2017-08-10
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nan
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nan
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Earlier this month premium global eCommerce solutions provider, Pitney Bowes Inc.PBI , reported its second-quarter 2017 results, which came in below expectations. The company reverted to its dismal earnings miss trend after posting a solitary earnings beat last quarter. Further, investors were miffed as the company tweaked its full-year 2017 guidance.
Year to date, the stock has lost 13.9%, in stark contrast to the industry 's average positive gain of 21.6%.
Also, analysts are showing no favor toward the stock as the Zacks Consensus Estimate for full-year 2017 earnings has gone down from $1.75 to $1.72. Given its array of problems, we believe that Pitney Bowes investors are in for an even bumpier ride. Let's take a deeper look at factors plaguing the company.
Lingering Softness in Mailing Business
Prolonged weakness in the company's North American mailing business is proving to be a significant drag on the top line. During the second quarter of 2017, Small and Medium Business ("SMB") Solutions revenues dipped 3% year over year to $436.4 million. The tepid performance was due to softness in the North American Mailing business (down 1%) and International Mailing Business (down 11%).
This segment continues to suffer from lower recurring revenue streams and rental revenues. Additionally, a waning recurring revenues trajectory and poor equipment sales are making matters worse. Uncertain global economic environment is expected to impact production mail and software businesses in the near term, thereby limiting the company's growth momentum.
Precipitous Decline in Software Sales
Though Pitney Bowes adopted multiple measures to boost profits at the software segment, its taking much longer than expected for the results to show. In general, licensed software businesses are always susceptible to swings based on large transactions. Given the scale of Pitney Bowes' business, it remains vulnerable to those swings.
Currently, the company is focusing on driving growth by penetrating into new areas. However, this has put the margin performance under pressure in the short run.
Escalating Costs
Pitney Bowes has been experiencing a surge in its operating expenses on account of ERP implementation in the U.S. and higher marketing expenses in relation to aggressive advertising and marketing strategies for strengthening brand value. The company expects marketing expenses to be up on a year-over-year basis.
In addition, it expects incremental marketing expense in the ERP program, related to digital capabilities enhancement, for entire 2017. Also, capital expenses associated with the ERP project remain a drag. Til the benefits of ERP materialize, the Zacks Rank #4 (Sell) company is expected to incur higher capital expenses that might exert pressure on margins.
Stocks to Consider
Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . While Applied Materials sports a Zacks Rank #1 (Strong Buy), Red Hat and Applied Materials hold a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has a whopping average earnings surprise of 21.0% for the trailing four quarters, beating estimates all through.
Red Hat, Inc. has a robust earnings surprise history, with an average positive surprise of 11.1%, driven by consecutive earnings beats over the trailing four quarters.
With four back-to-back beats, Applied Materials has an average positive surprise of 3.5% for the trailing four quarters.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
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
Red Hat, Inc. (RHT): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Pitney Bowes Inc. (PBI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): 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.
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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Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier this month premium global eCommerce solutions provider, Pitney Bowes Inc.PBI , reported its second-quarter 2017 results, which came in below expectations.
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Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. While Applied Materials sports a Zacks Rank #1 (Strong Buy), Red Hat and Applied Materials hold a Zacks Rank #2 (Buy).
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Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Til the benefits of ERP materialize, the Zacks Rank #4 (Sell) company is expected to incur higher capital expenses that might exert pressure on margins.
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Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Uncertain global economic environment is expected to impact production mail and software businesses in the near term, thereby limiting the company's growth momentum.
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95f3b7aa-c2b7-4da3-a40c-2e8fde584d74
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9830.0
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2017-08-09 00:00:00 UTC
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Zacks.com featured highlights: Nutrisystem, Kronos Worldwide, Applied Optoelectronics and The Brink's Company
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AAOI
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https://www.nasdaq.com/articles/zacks.com-featured-highlights%3A-nutrisystem-kronos-worldwide-applied-optoelectronics-and-0
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nan
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nan
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For Immediate Release
Chicago, IL -August 09, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ).
Ride These 4 Momentum Stocks for Exciting Returns
When value or growth investing fails to fetch sustained profits, one should explore another time-tested winning strategy that simply bets on the frontrunner stocks. Translated, one of the most successful strategies today is to get in on momentum stocks at the right time.
At the core, momentum investing is buying high, selling higher. It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction than move against the drift. Thus, this strategy calls for hitching a ride on an already fast-moving train, without fretting about valuations or growth prospects. But why does the momentum strategy work?
There is a simple reason behind this. It works because we are humans!
There's a whole laundry list of behavioral biases that most investors exhibit and these emotional responses and mistakes are the very reason that momentum strategy works. For instance, there are investors who are anxious about booking losses and hence hold on to losing stocks for too long, hopeful of a rebound in the prices. On the other hand, a few investors sell their winners way too early.
Furthermore, investors initially tend to under-react to news, events or data releases. However, once things become clear, they tend to go with the flow and overreact, causing dramatic price reactions.
These behavioral problems extend trends, and thus open up huge opportunities for momentum players. So basically, it's a way to profit from the general human tendency to extrapolate current trends into the future.
Momentum investing is thus based on that gap in time that exists before the mean reversion occurs, i.e. before prices become rational again.
Momentum strategies have been known to be alpha-generative over a long period of time and across markets. So obviously, this strategy is quite tricky to implement, as detecting these trends is no child's play.
Here, we have created a strategy that will help investors get in on these fast movers and make handsome gains. Our screen will help you benefit from both long-term price momentum and a short-term pullback in price, which would reflect some profit-taking in the stock.
Screening Parameters
Percentage Change Price (52 Weeks) = Top #50: This item selects the top 50 stocks with the best percentage price change over the last 52 weeks. This parameter ensures we get stocks that have appreciated the maximum over the past one year.
Percentage Change in Price (1 Week) = Bottom #10: From the above 50 stocks, we then choose those that are also among the 10 worst performers over a short one-week period.
Zacks Rank #1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today's Zacks #1 Rank stocks here.
Momentum Style Score of B or better: A top Momentum Style Score knocks out a lot of the screening process as it takes into account several factors including volume change and performance relative to its peers. It indicates when the timing is best to grab a stock and take advantage of its momentum with the highest probability of success. Stocks with a Momentum Style Score of 'A' or 'B,' when combined with a Zacks Rank #1 or 2 (Buy) handily outperform other stocks.
Current Price greater than 5: The stocks must all be trading at a minimum of $5.
Market Capitalization = Top #3000: We have chosen stocks that are among the top 3000 in terms of market value to ensure strong liquidity.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that these stocks are easily tradable.
Here are four of the eight stocks that made it through this screen:
Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), which provides weight management products and services for women and men in the United States, has gained an impressive 85.7% over the past one year. The company has a Momentum Style Score of 'A.'
Shares of Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), which produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally, went up over 217% in the past one year. The company has a Momentum Style Score of 'B.'
Applied Optoelectronics (NASDAQ: AAOI - Free Report ) designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. The stock appreciated a whopping 387.7% in the past one year and has a Momentum Style Score of 'A.'
The Brink's Company (NYSE: BCO - Free Report ) provides secure transportation, cash management services, and other security-related services worldwide. The stock soared almost 108% in the past one year and has a Momentum Style Score of 'B.'
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
Get the full Report on NTRI - FREE
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Contact: Jim Giaquinto
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
NutriSystem Inc (NTRI): Free Stock Analysis Report
Brink's Company (The) (BCO): 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.
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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For Immediate Release Chicago, IL -August 09, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ). Applied Optoelectronics (NASDAQ: AAOI - Free Report ) designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. Get the full Report on NTRI - FREE Get the full Report on KRO - FREE Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL -August 09, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ). Get the full Report on NTRI - FREE Get the full Report on KRO - FREE Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Kronos Worldwide Inc (KRO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NutriSystem Inc (NTRI): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL -August 09, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ). Get the full Report on NTRI - FREE Get the full Report on KRO - FREE Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Kronos Worldwide Inc (KRO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NutriSystem Inc (NTRI): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL -August 09, 2017 - Stocks in this week's article include Nutrisystem, Inc. (NASDAQ: NTRI - Free Report ), Kronos Worldwide, Inc. (NYSE: KRO - Free Report ), Applied Optoelectronics (NASDAQ: AAOI - Free Report ) and The Brink's Company (NYSE: BCO - Free Report ). Applied Optoelectronics (NASDAQ: AAOI - Free Report ) designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. Get the full Report on NTRI - FREE Get the full Report on KRO - FREE Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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0d7c07a9-bbfa-4bc8-8fb6-3dd04fd62112
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9831.0
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2017-08-09 00:00:00 UTC
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Cognizant (CTSH) Drives on Domain Expertise, Acquisitions
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AAOI
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https://www.nasdaq.com/articles/cognizant-ctsh-drives-on-domain-expertise-acquisitions-2017-08-09
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nan
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nan
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On Aug 8, we issued an updated research report on Teaneck, NJ-based Cognizant Technology Solutions CorporationCTSH , a leading provider of information technology, consulting and business process outsourcing services.
Cognizant's shares have traded neck and neck with the industry on a year-to-date basis. This is primarily driven by solid earnings and top-line growth in the first half of 2017. Notably, the company has beaten the Zacks Consensus Estimates in three out of trailing four quarters, with an average positive surprise of 4.53%.
Cognizant reported impressive earnings growth in the second quarter of 2017 that can be attributed to strong top-line, which is benefiting from significant exposure to the fast-growing verticals like Financial Services and Healthcare.
Cognizant narrowed its top-line guidance for 2017, which reflects improved visibility. Moreover, the company raised its earnings guidance. We believe that the impressive results and the guidance indicate the company's ability in harnessing the ongoing digital transition.
Cognizant shares are up 25.4% as compared with industry's return of 24.6%.
Domain Expertise, Acquisitions Driving Growth
Cognizant's domain expertise is a key catalyst. The company is consistently developing its capabilities to benefit from the ongoing digital transition especially when it comes to integration of the new digital framework with legacy technology platforms.
Cognizant Technology Solutions Corporation Revenue (TTM)
Cognizant Technology Solutions Corporation Revenue (TTM) | Cognizant Technology Solutions Corporation Quote
Additionally, the company has gained deep industry expertise and knowledge of the fast-growing verticals, like Financial Services and Healthcare, through partnerships with top firms like Microsoft MSFT . This has helped it to outpace Tier-1 peers.
Moreover, accretive acquisitions such as the TriZetto, Mirabeau BV and the technology and business process services unit of Frontica Business Solutions AS are likely to benefit the company.
We believe that these positive factors somewhat offset concerns related to H1B visas under President Trump's administration as well as intensifying competition in the IT services industry.
Zacks Rank & Key Picks
Cognizant currently carries Zacks Rank #2 (Buy). Alibaba BABA and Applied Optoelectronics AAOI are couple of better-ranked technology stocks. Both stocks sport a Zacks Rank #1 (Strong Buy. You can see the complete list of today's Zacks #1 Rank stocks here.
Long term earnings for Alibaba and Applied Optoelectronics are pegged at 28.97% and 18.75%, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
See these stocks now>>
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
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Alibaba BABA and Applied Optoelectronics AAOI are couple of better-ranked technology stocks. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Cognizant reported impressive earnings growth in the second quarter of 2017 that can be attributed to strong top-line, which is benefiting from significant exposure to the fast-growing verticals like Financial Services and Healthcare.
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Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Alibaba BABA and Applied Optoelectronics AAOI are couple of better-ranked technology stocks. Domain Expertise, Acquisitions Driving Growth Cognizant's domain expertise is a key catalyst.
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Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Alibaba BABA and Applied Optoelectronics AAOI are couple of better-ranked technology stocks. On Aug 8, we issued an updated research report on Teaneck, NJ-based Cognizant Technology Solutions CorporationCTSH , a leading provider of information technology, consulting and business process outsourcing services.
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Alibaba BABA and Applied Optoelectronics AAOI are couple of better-ranked technology stocks. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the company raised its earnings guidance.
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bf680de7-6724-4a2b-b346-7394df01267e
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9832.0
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2017-08-08 00:00:00 UTC
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Ride These 4 Momentum Stocks for Exciting Returns
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AAOI
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https://www.nasdaq.com/articles/ride-these-4-momentum-stocks-for-exciting-returns-2017-08-08
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nan
|
nan
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When value or growth investing fails to fetch sustained profits, one should explore another time-tested winning strategy that simply bets on the frontrunner stocks. Translated, one of the most successful strategies today is to get in on momentum stocks at the right time.
At the core, momentum investing is buying high, selling higher. It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction than move against the drift. Thus, this strategy calls for hitching a ride on an already fast-moving train, without fretting about valuations or growth prospects. But why does the momentum strategy work?
There is a simple reason behind this. It works because we are humans!
There's a whole laundry list of behavioral biases that most investors exhibit and these emotional responses and mistakes are the very reason that momentum strategy works. For instance, there are investors who are anxious about booking losses and hence hold on to losing stocks for too long, hopeful of a rebound in the prices. On the other hand, a few investors sell their winners way too early.
Furthermore, investors initially tend to under-react to news, events or data releases. However, once things become clear, they tend to go with the flow and overreact, causing dramatic price reactions.
These behavioral problems extend trends, and thus open up huge opportunities for momentum players. So basically, it's a way to profit from the general human tendency to extrapolate current trends into the future.
Momentum investing is thus based on that gap in time that exists before the mean reversion occurs, i.e. before prices become rational again.
Momentum strategies have been known to be alpha-generative over a long period of time and across markets. So obviously, this strategy is quite tricky to implement, as detecting these trends is no child's play.
Here, we have created a strategy that will help investors get in on these fast movers and make handsome gains. Our screen will help you benefit from both long-term price momentum and a short-term pullback in price, which would reflect some profit-taking in the stock.
Screening Parameters
Percentage Change Price (52 Weeks) = Top #50: This item selects the top 50 stocks with the best percentage price change over the last 52 weeks. This parameter ensures we get stocks that have appreciated the maximum over the past one year.
Percentage Change in Price (1 Week) = Bottom #10: From the above 50 stocks, we then choose those that are also among the 10 worst performers over a short one-week period.
Zacks Rank #1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today's Zacks #1 Rank stocks here.
MomentumStyle Scoreof B or better: A top Momentum Style Score knocks out a lot of the screening process as it takes into account several factors including volume change and performance relative to its peers. It indicates when the timing is best to grab a stock and take advantage of its momentum with the highest probability of success. Stocks with a Momentum Style Score of 'A' or 'B,' when combined with a Zacks Rank #1 or 2 (Buy) handily outperform other stocks.
Current Price greater than 5: The stocks must all be trading at a minimum of $5.
Market Capitalization = Top #3000: We have chosen stocks that are among the top 3000 in terms of market value to ensure strong liquidity.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that these stocks are easily tradable.
Here are four of the eight stocks that made it through this screen:
Nutrisystem, Inc.NTRI , which provides weight management products and services for women and men in the United States, has gained an impressive 85.7% over the past one year. The company has a Momentum Style Score of 'A'.
Shares of Kronos Worldwide, Inc.KRO , which produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally, went up over 217% in the past one year. The company has a Momentum Style Score of 'B'.
Applied OptoelectronicsAAOI designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. The stock appreciated a whopping 387.7% in the past one year and has a Momentum Style Score of 'A'.
The Brink's CompanyBCO provides secure transportation, cash management services, and other security-related services worldwide. The stock soared almost 108% in the past one year and has a Momentum Style Score of 'B'.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it 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
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
NutriSystem Inc (NTRI): Free Stock Analysis Report
Brink's Company (The) (BCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Applied OptoelectronicsAAOI designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. Click to get this free report Kronos Worldwide Inc (KRO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NutriSystem Inc (NTRI): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. MomentumStyle Scoreof B or better: A top Momentum Style Score knocks out a lot of the screening process as it takes into account several factors including volume change and performance relative to its peers.
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Click to get this free report Kronos Worldwide Inc (KRO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NutriSystem Inc (NTRI): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. Applied OptoelectronicsAAOI designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. Screening Parameters Percentage Change Price (52 Weeks) = Top #50: This item selects the top 50 stocks with the best percentage price change over the last 52 weeks.
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Click to get this free report Kronos Worldwide Inc (KRO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NutriSystem Inc (NTRI): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. Applied OptoelectronicsAAOI designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. Translated, one of the most successful strategies today is to get in on momentum stocks at the right time.
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Applied OptoelectronicsAAOI designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television, and fiber-to-the-home networking end-markets. Click to get this free report Kronos Worldwide Inc (KRO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NutriSystem Inc (NTRI): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. But why does the momentum strategy work?
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855ef26c-b8ab-4be2-9935-7e353c6fbf9d
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9833.0
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2017-08-08 00:00:00 UTC
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Are Options Traders Betting on a Big Move in Applied Optoelectronics (AAOI) Stock?
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AAOI
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-applied-optoelectronics-aaoi-stock-2017-08-08
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nan
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nan
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Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. That is because the Aug 11th, 2017 $125 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Applied Optoelectronics shares, but what is the fundamental picture for the company? Currently, Applied Optoelectronics is a Zacks Rank #1 (Strong Buy) in the Electronics - Semiconductors industry that ranks in the Top 40% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased their earnings estimates for the current quarter, while no analyst has dropped its estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.12 per share to $1.30 in that period.
Given the way analysts feel about Applied Optoelectronics right now, this huge implied volatility could mean there's a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the NFLX earnings report completely free. See it here: Bartosiak: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details:
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
Applied Optoelectronics, Inc. (AAOI): 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.
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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Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
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b8dd2b4d-9558-4fec-9c3a-fb99a9fa551d
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9834.0
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2017-08-08 00:00:00 UTC
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3 Great Reasons to Buy Applied Optoelectronics Stock Right Now
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AAOI
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https://www.nasdaq.com/articles/3-great-reasons-buy-applied-optoelectronics-stock-right-now-2017-08-08
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nan
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nan
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Owning shares of Applied Optoelectronics (NASDAQ: AAOI) isn't for the faint of heart. The maker of fiber-optic lasers and networking components has rewarded shareholders with a 410% gain over the last 52 weeks, but that span also included three sudden drops of at least 20%.
If you can live with that kind of hypervolatility without selling your shares in a panic, this might be the perfect time to invest in Applied Optoelectronics. Here are three great reasons why.
1. Massive growth
Applied Optoelectronics' sales aren't just showing healthy growth right now -- the top line's gains are accelerating . The same holds true for EBITDA profits , adjusted earnings, and pretty much any financial metric you'd care to measure:
AAOI Revenue (TTM) data by YCharts .
The bulk of Applied Optoelectronics' business comes from Amazon.com (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) these days. The two tech titans are powering up their cloud computing services with huge investments in data center upgrades, including large amounts of high-speed fiber-optic networking tools. Both Microsoft and Amazon increased their Applied Optoelectronics orders tenfold between 2013 and 2016, and neither company is showing any signs of an order slowdown.
Meanwhile, former largest customer Cisco Systems is fading into the background of Applied Optoelectronics' operations and now accounts for just 5% of the fiber-optics specialist's 2016 sales. No harm done, because the cloud computing titans more than make up for those lost Cisco sales.
2. Low share prices
I know I just told you that Applied Optoelectronics' shares have soared 400% higher in a single year, but there's still plenty of room for further gains.
The stock is trading at just 12 times forward earnings and 21 times trailing EBITDA profits. These numbers are outrageously low in the context of Applied Optoelectronics' rampant sales and earnings growth.
This would make sense if gravy train were careening off the rails in short order. That's not the case at all. None of the company's large cloud customers are likely to take their feet of their respective accelerators for years to come, which means that Applied Optoelectronics' optical transceivers will remain in high demand.
In fact, the company's sales are limited by its manufacturing volumes more than by customer demand.
"We're going to be selling everything we can produce in this quarter," said CFO Stefan Murry in last week's earnings call.
"We are on track with our goal to expand capacity to approximately 1 million fully qualified lasers per month," explained CEO Thompson Lin. "In the month of June, we produced over 680,000 lasers which represents 67% growth year to date."
So greater production volumes are coming down the pipeline, and Applied Optoelectronics has more than enough transceiver orders in the books to move those laser-based products out the door in short order. In other words, there's no reason to apply a discount to Applied Optoelectronics' share price based on slowing sales.
3. Perfect timing
In last Thursday's earnings report, Applied Optoelectronics cited slow sales of 40-gigabit data center transceivers as the driving force behind modest revenue guidance for the next quarter. The stock plunged 26% lower the next day , creating the separation between high business performance and low share price discussed above.
The fact that customers are moving on from the aging 40G product line to newer and faster 100G transceivers should come as no surprise. It's a natural progression from one product generation to another, and Applied Optoelectronics must move its production lines over from 40G to 100G transceivers in lockstep with its clients. One customer is moving a bit faster than expected, causing a temporary revenue hit.
In the long run, that's no more than a speed bump along Applied Optoelectronics' long and steep runway for revenue growth. The stock is on sale for myopic short-term reasons, and this is exactly the type of temporary market weakness that drives opportunistic investors wild.
This is the right time to buy, not to put Applied Optoelectronics on the back burner for further research. Sure, you can always do that, but it will probably be a while before you see a discount as juicy as this one again.
10 stocks we like better than Applied Optoelectronics
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 1, 2017
Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool's board of directors. LinkedIn is owned by Microsoft. Anders Bylund owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends CSCO. 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.
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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Owning shares of Applied Optoelectronics (NASDAQ: AAOI) isn't for the faint of heart. The same holds true for EBITDA profits , adjusted earnings, and pretty much any financial metric you'd care to measure: AAOI Revenue (TTM) data by YCharts . The two tech titans are powering up their cloud computing services with huge investments in data center upgrades, including large amounts of high-speed fiber-optic networking tools.
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Owning shares of Applied Optoelectronics (NASDAQ: AAOI) isn't for the faint of heart. The same holds true for EBITDA profits , adjusted earnings, and pretty much any financial metric you'd care to measure: AAOI Revenue (TTM) data by YCharts . In other words, there's no reason to apply a discount to Applied Optoelectronics' share price based on slowing sales.
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Owning shares of Applied Optoelectronics (NASDAQ: AAOI) isn't for the faint of heart. The same holds true for EBITDA profits , adjusted earnings, and pretty much any financial metric you'd care to measure: AAOI Revenue (TTM) data by YCharts . So greater production volumes are coming down the pipeline, and Applied Optoelectronics has more than enough transceiver orders in the books to move those laser-based products out the door in short order.
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Owning shares of Applied Optoelectronics (NASDAQ: AAOI) isn't for the faint of heart. The same holds true for EBITDA profits , adjusted earnings, and pretty much any financial metric you'd care to measure: AAOI Revenue (TTM) data by YCharts . Massive growth Applied Optoelectronics' sales aren't just showing healthy growth right now -- the top line's gains are accelerating .
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3db58c0f-466e-4358-ba38-d42427d9bef5
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9835.0
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2017-08-07 00:00:00 UTC
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Falling Earnings Estimates Signal Weakness Ahead for Amkor Technology (AMKR)
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AAOI
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https://www.nasdaq.com/articles/falling-earnings-estimates-signal-weakness-ahead-for-amkor-technology-amkr-2017-08-07
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nan
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nan
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Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is Amkor Technology, Inc.AMKR , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in AMKR.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen one estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 70 cents a share a month ago to its current level of 53 cents.
Also, for the current quarter, Amkor Technology has seen one downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 19 cents a share from 36 cents over the past 30 days.
Amkor Technology, Inc. Price and EPS Surprise
Amkor Technology, Inc. Price and EPS Surprise | Amkor Technology, Inc. Quote
The stock also has seen some pretty dismal trading lately, as the share price has dropped 9.9% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the Electronics - Semiconductors industry, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 Rank stocks here .
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Amkor Technology, Inc. (AMKR): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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If you are still interested in the Electronics - Semiconductors industry, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . Click to get this free report Amkor Technology, Inc. (AMKR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
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Click to get this free report Amkor Technology, Inc. (AMKR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. If you are still interested in the Electronics - Semiconductors industry, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . Amkor Technology, Inc. Price and EPS Surprise Amkor Technology, Inc. Price and EPS Surprise | Amkor Technology, Inc. Quote The stock also has seen some pretty dismal trading lately, as the share price has dropped 9.9% in the past month.
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Click to get this free report Amkor Technology, Inc. (AMKR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. If you are still interested in the Electronics - Semiconductors industry, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . Also, for the current quarter, Amkor Technology has seen one downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 19 cents a share from 36 cents over the past 30 days.
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If you are still interested in the Electronics - Semiconductors industry, you may instead consider a better-ranked stock - Applied Optoelectronics, Inc. AAOI . Click to get this free report Amkor Technology, Inc. (AMKR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. One such stock that you may want to consider dropping is Amkor Technology, Inc.AMKR , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year.
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23b9f0ee-af61-4568-ad4b-4d2fb3e12e5d
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9836.0
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2017-08-04 00:00:00 UTC
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Why Applied Optoelectronics Inc. Stock Is Plunging Today
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AAOI
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https://www.nasdaq.com/articles/why-applied-optoelectronics-inc-stock-plunging-today-2017-08-04
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nan
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nan
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What happened
Shares of Applied Optoelectronics (NASDAQ: AAOI) are plunging today, trading 26% lower as of 12:32 p.m. EDT, after the company reported second-quarter earnings.
So what
The maker of lasers and transceivers used to build fiber-optic networking equipment released second-quarter results on Thursday night. Earnings rose nearly ninefold compared to the year-ago quarter, landing at $1.54 per share. Sales more than doubled from $55.3 million to $117 million. Both figures were well ahead of Wall Street's projections, which called for earnings of $1.32 per share on revenue near $116 million.
So the reported numbers were better than expected, and third-quarter earnings guidance of roughly $1.37 per share also topped the current analyst view of $1.31 per share. However, revenue guidance stopped at $111 million, falling short of analysts' $123 million consensus estimate. It looks like the soft revenue projection is outweighing the positive surprises today.
Now what
Applied Optoelectronics raced into this earnings report on a full head of steam. Even after today's drastic haircut, the stock still trades 210% higher year to date and offers a 460% shareholder return over the last 52 weeks.
The soft third-quarter revenue outlook is based on lower sales of the aging 40-gigabit transceiver portfolio . Growth in the newer 100G product line will eventually erase the 40G downtrend, but product generation changeovers can hurt in the short term. In the second quarter, 39% of AOI's data center sales came from the 100G lineup, which is growing at a 62% year-over-year pace. That's up from a 30% revenue share in the first quarter and 20% two quarters ago.
The future belongs to AOI's 100G products, and the company is already first to market with 200-gigabit transceivers for data center communications. Its largest customers are expanding their cloud computing sales at breakneck speeds, which requires heavy investments in fiber-based networking tools. I would pay more attention to AOI's stellar one-year market returns than to this sudden correction, because this company (and the fiber-optic market overall) is going places.
10 stocks we like better than Applied Optoelectronics
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 1, 2017
Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
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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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) are plunging today, trading 26% lower as of 12:32 p.m. EDT, after the company reported second-quarter earnings. Even after today's drastic haircut, the stock still trades 210% higher year to date and offers a 460% shareholder return over the last 52 weeks. Its largest customers are expanding their cloud computing sales at breakneck speeds, which requires heavy investments in fiber-based networking tools.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) are plunging today, trading 26% lower as of 12:32 p.m. EDT, after the company reported second-quarter earnings. In the second quarter, 39% of AOI's data center sales came from the 100G lineup, which is growing at a 62% year-over-year pace. 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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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) are plunging today, trading 26% lower as of 12:32 p.m. EDT, after the company reported second-quarter earnings. 10 stocks we like better than Applied Optoelectronics When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. *Stock Advisor returns as of August 1, 2017 Anders Bylund has no position in any stocks mentioned.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) are plunging today, trading 26% lower as of 12:32 p.m. EDT, after the company reported second-quarter earnings. So the reported numbers were better than expected, and third-quarter earnings guidance of roughly $1.37 per share also topped the current analyst view of $1.31 per share. The future belongs to AOI's 100G products, and the company is already first to market with 200-gigabit transceivers for data center communications.
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2a7de46b-6ddd-4161-9b7e-3ce67d65412b
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9837.0
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2017-08-04 00:00:00 UTC
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Zacks Value Trader Highlights: Applied Optoelectronics, First American, ManpowerGroup and LPL Financial
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AAOI
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https://www.nasdaq.com/articles/zacks-value-trader-highlights%3A-applied-optoelectronics-first-american-manpowergroup-and
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nan
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For Immediate Release
Chicago, IL -Aug 04, 2017 - Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (Please use the Soundcloud link from this URL for the PR. Thanks: https://www.zacks.com/stock/news/270479/what-is-the-most-powerful-combination-in-value-investing )
What's the Most Powerful Combination in Value Investing
Welcome to Episode #53 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
It's the middle of earnings season and many are complaining about the valuation of the stock markets (again).
Several of the major indexes continue to hit new all-time highs which has some investors fretting. But there are still value stocks out there despite stocks moving higher every month.
The Key for Value Investors
Most value investors look to one key metric to start their value stock search: The P/E ratio. Remember that the P/E is price divided by earnings.
During earnings season, we're getting new information about the "E", or earnings, in the P/E. For some companies, the "E" will dramatically rise.
If that company's stock is also rising, it may remain a value stock because the "E" is rising.
For value investors, a rising "E" is critical.
Why Rising Earnings Matter for Value Investors
An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Tracey has covered it on prior podcasts because it was a value stock that was up over 100% in 2017.
How could its valuation still be attractive with that kind of stock move?
Ninety days ago, analysts believed Applied Opto would make just $3.76 a share this year. But the estimate has been slowly rising the last 3 months and now sits at $4.95.
Because of rising earnings estimates, Applied Opto has a forward P/E of 19.7. That's not much higher than the average of the S&P 500.
It would have a P/E of about 25 if the "E" wasn't exploding to the upside and had remained around $3.76.
The Most Powerful Combination
Value investors obviously want solid value fundamentals when buying a stock. But if they can also get rising earnings estimates at the same time, then something truly special may be going on there.
Tracey did a screen for stocks with P/Es under 20, a P/S ratio of 1 or under and that had a Zacks #1 (Strong Buy) rank, which indicates rising earnings estimates.
18 stocks came up in her screen so she whittled it down to these 3 top stocks.
3 Value Stocks with the Powerful Combination
1. First American Corporation (NYSE: FAF - Free Report ) has a forward P/E of 14.1 and the full year estimate has jumped to $3.42 from $3.28 in the last 90 days. Don't overlook this title insurance company.
2. ManpowerGroup (NYSE: MAN - Free Report ) is a worldwide staffing company. Shares sold off after its last earnings report BUT earnings estimates were also adjusted higher. That brought the stock back to value territory. It has a P/E of 15.9. Earnings are expected to be $6.73, up from $6.55 just 90 days ago.
3. LPL Financial (NASDAQ: LPLA - Free Report ) is the largest independent brokerage firm in the United States with over 14,000 independent financial advisors. Over the last 3 months, the 2017 Zacks Consensus Estimate has jumped to $2.62 from $2.42. Earnings are expected to grow 23%. It has a P/S ratio of 1.o.
What else should you know about the powerful combination of rising earnings estimates and value investing?
Find out on this week's podcast.
Want more value investing insights from Tracey?
Value investors are a special breed of investor. They don't follow the herd.
If that is your style of investing, be sure to check out Tracey's weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.
The Value Investor portfolio holds between 20 and 25 value stocks for the long haul.
Click here to learn more>>>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
First American Corporation (The) (FAF): Free Stock Analysis Report
ManpowerGroup (MAN): 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.
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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Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Get the full Report on AAOI - FREE Get the full Report on FAF - FREE Get the full Report on MAN - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here.
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Get the full Report on AAOI - FREE Get the full Report on FAF - FREE Get the full Report on MAN - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here. Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ).
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Get the full Report on AAOI - FREE Get the full Report on FAF - FREE Get the full Report on MAN - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here. Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ).
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Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Get the full Report on AAOI - FREE Get the full Report on FAF - FREE Get the full Report on MAN - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here.
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380aaaea-cfc8-4a4f-b916-6b8fef6d2f3b
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9838.0
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2017-08-04 00:00:00 UTC
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Microchip (MCHP) Q1 Earnings Top Estimates, Revenues Up Y/Y
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AAOI
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https://www.nasdaq.com/articles/microchip-mchp-q1-earnings-top-estimates-revenues-up-y-y-2017-08-04
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nan
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nan
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Microchip Technology Inc.MCHP reported first-quarter fiscal 2018 adjusted earnings (including stock-based compensation) of $1.25 per share, which beat the Zacks Consensus Estimate by 11 cents.
Adjusted earnings (excluding stock-based compensation) advanced 56% year over year and 12.9% sequentially to $1.31 per share in the quarter. The figure was better than management's updated guidance range of $1.22-$1.26.
The strong growth was also driven by higher net sales, which surged 15.2% from the year-ago quarter to $972.1 million. On a sequential basis, net sales increased 7.7%.
Microchip provided positive guidance for the second quarter based on robust demand for its products. The stock has gained 25.8% year to date, substantially outperforming the 13.7% rally of the industry it belongs to.
Quarter Details
In terms of product line, microcontroller business (65.4% of net sales) increased 9.5% sequentially driven by robust demand for 8-bit, 16-bit and 32-bit microcontrollers. On a year-over-year basis revenues increased 18.1%, benefitting from the addition of Atmel's product portfolio.
Analog sales (24.6% of net sales) increased 3.7% from the previous quarter. Revenues were negatively impacted by capacity constraint at Atmel. On a year-over-year basis, revenues increased 11.2%.
Microchip Technology Incorporated Price, Consensus and EPS Surprise
Microchip Technology Incorporated Price, Consensus and EPS Surprise | Microchip Technology Incorporated Quote
Memory sales (5% of net sales) were up 8.8% on a quarter-over-quarter basis.
Licensing (2.6% of net sales) sales increased 8.5% sequentially. MMO (2.4% of net sales) declined 0.5% from the previous quarter.
Geographically, Asia remained Microchip's largest market, with 58% of net sales coming from the region. Europe and Americas contributed 23.2% and 18.8%, respectively.
Microchip posted non-GAAP gross margin of 60.4%, which expanded 460 basis points (bps) on a year-over-year basis and 150 bps sequentially. The figure was better than management's expectation of 60%.
Non-GAAP operating expenses, as percentage of revenues, declined from 28.4% in the year-ago quarter to 22.9% in the reported quarter. The decline was primarily due to lower research & development (R&D) and selling, general & administrative (SG&A), which declined 320 bps and 230 bps, respectively.
As a result, non-GAAP operating margin expanded to 37.5% in the reported quarter from 27.4% in the year-ago quarter and 33.1% in the previous quarter. The figure was well above the high-end of the management's guidance of 37%. Atmel achieved operating margins of more than 30% in the quarter.
Balance Sheet
Cash generated in the reported quarter was $345 million as compared with $322.6 million at the end of Mar 31. As of Jun 30, cash and total investment position was $1.65 billion as compared with $1.30 billion.
Management noted that inventory at Jun 30, was at 100 days, which was the lowest in 7 years. Distributor inventory at 31 days was also on the lower end of the company's normal range.
Leverage continues to improve with net debt-to-EBITDA at 1.58 down from 1.94 at the end of the March quarter.
Guidance
Microchip forecasts second-quarter fiscal 2018 net sales to be $1,001.3 billion, which reflects approximately 3% growth on a sequential basis and 14.6% on a year-over-year basis.
Gross margin was anticipated to in the range of 60.5-60.75%, operating expenses as percentage of 22.5-23% and operating margin 37.5-38.25%.
Earnings are anticipated to be in the range of $1.33-$1.37 per share for the quarter. Atmel is forecasted to contribute 18-22 cents per share.
Microchip's inventory days at Sep 30, are expected to be 99 to 101 days. Capital expenditure is estimated to be approximately $70 million. Net cash generated in the quarter is anticipated to be $230-$250 million.
Management expects net debt-to-EBITDA to be under 1.3 by the end of the second quarter of fiscal 2018.
For fiscal 2018, capital expenditures are expected to be approximately $180 million up $10 million from the previous guidance.
Microchip forecasts annual growth expectations of high single digit growth over the long term.
Zacks Rank & Key Picks
Microchip carries a Zacks Rank #2 (Buy). MaxLinear MXL , Applied Optoelectronics AAOI and Infineon IFNNY are other top ranked stocks in the broader technology sector. All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
MaxLinear, Applied Optoelectronics and Infineon have a long-term earnings growth rate of 17.50%, 18.75% and 15.45%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them 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
Infineon Technologies AG (IFNNY): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Microchip Technology Incorporated (MCHP): Free Stock Analysis Report
MaxLinear, Inc (MXL): 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.
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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MaxLinear MXL , Applied Optoelectronics AAOI and Infineon IFNNY are other top ranked stocks in the broader technology sector. Click to get this free report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report MaxLinear, Inc (MXL): Free Stock Analysis Report To read this article on Zacks.com click here. Microchip Technology Inc.MCHP reported first-quarter fiscal 2018 adjusted earnings (including stock-based compensation) of $1.25 per share, which beat the Zacks Consensus Estimate by 11 cents.
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Click to get this free report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report MaxLinear, Inc (MXL): Free Stock Analysis Report To read this article on Zacks.com click here. MaxLinear MXL , Applied Optoelectronics AAOI and Infineon IFNNY are other top ranked stocks in the broader technology sector. Microchip Technology Incorporated Price, Consensus and EPS Surprise Microchip Technology Incorporated Price, Consensus and EPS Surprise | Microchip Technology Incorporated Quote Memory sales (5% of net sales) were up 8.8% on a quarter-over-quarter basis.
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Click to get this free report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report MaxLinear, Inc (MXL): Free Stock Analysis Report To read this article on Zacks.com click here. MaxLinear MXL , Applied Optoelectronics AAOI and Infineon IFNNY are other top ranked stocks in the broader technology sector. Microchip Technology Incorporated Price, Consensus and EPS Surprise Microchip Technology Incorporated Price, Consensus and EPS Surprise | Microchip Technology Incorporated Quote Memory sales (5% of net sales) were up 8.8% on a quarter-over-quarter basis.
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MaxLinear MXL , Applied Optoelectronics AAOI and Infineon IFNNY are other top ranked stocks in the broader technology sector. Click to get this free report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report MaxLinear, Inc (MXL): Free Stock Analysis Report To read this article on Zacks.com click here. Guidance Microchip forecasts second-quarter fiscal 2018 net sales to be $1,001.3 billion, which reflects approximately 3% growth on a sequential basis and 14.6% on a year-over-year basis.
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5f42f25c-43ac-4942-8d5d-39a6a2242117
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9839.0
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2017-08-04 00:00:00 UTC
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Zacks Value Trader Highlights: Applied Optoelectronics, First American, ManpowerGroup and LPL Financial
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AAOI
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https://www.nasdaq.com/articles/zacks-value-trader-highlights%3A-applied-optoelectronics-first-american-manpowergroup-and-0
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For Immediate Release
Chicago, IL -Aug 04, 2017 - Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (Please use the Soundcloud link from this URL for the PR. Thanks: https://www.zacks.com/stock/news/270479/what-is-the-most-powerful-combination-in-value-investing )
What's the Most Powerful Combination in Value Investing
Welcome to Episode #53 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
It's the middle of earnings season and many are complaining about the valuation of the stock markets (again).
Several of the major indexes continue to hit new all-time highs which has some investors fretting. But there are still value stocks out there despite stocks moving higher every month.
The Key for Value Investors
Most value investors look to one key metric to start their value stock search: The P/E ratio. Remember that the P/E is price divided by earnings.
During earnings season, we're getting new information about the "E", or earnings, in the P/E. For some companies, the "E" will dramatically rise.
If that company's stock is also rising, it may remain a value stock because the "E" is rising.
For value investors, a rising "E" is critical.
Why Rising Earnings Matter for Value Investors
An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Tracey has covered it on prior podcasts because it was a value stock that was up over 100% in 2017.
How could its valuation still be attractive with that kind of stock move?
Ninety days ago, analysts believed Applied Opto would make just $3.76 a share this year. But the estimate has been slowly rising the last 3 months and now sits at $4.95.
Because of rising earnings estimates, Applied Opto has a forward P/E of 19.7. That's not much higher than the average of the S&P 500.
It would have a P/E of about 25 if the "E" wasn't exploding to the upside and had remained around $3.76.
The Most Powerful Combination
Value investors obviously want solid value fundamentals when buying a stock. But if they can also get rising earnings estimates at the same time, then something truly special may be going on there.
Tracey did a screen for stocks with P/Es under 20, a P/S ratio of 1 or under and that had a Zacks #1 (Strong Buy) rank, which indicates rising earnings estimates.
18 stocks came up in her screen so she whittled it down to these 3 top stocks.
3 Value Stocks with the Powerful Combination
1. First American Corporation (NYSE: FAF - Free Report ) has a forward P/E of 14.1 and the full year estimate has jumped to $3.42 from $3.28 in the last 90 days. Don't overlook this title insurance company.
2. ManpowerGroup (NYSE: MAN - Free Report ) is a worldwide staffing company. Shares sold off after its last earnings report BUT earnings estimates were also adjusted higher. That brought the stock back to value territory. It has a P/E of 15.9. Earnings are expected to be $6.73, up from $6.55 just 90 days ago.
3. LPL Financial (NASDAQ: LPLA - Free Report ) is the largest independent brokerage firm in the United States with over 14,000 independent financial advisors. Over the last 3 months, the 2017 Zacks Consensus Estimate has jumped to $2.62 from $2.42. Earnings are expected to grow 23%. It has a P/S ratio of 1.o.
What else should you know about the powerful combination of rising earnings estimates and value investing?
Find out on this week's podcast.
Want more value investing insights from Tracey?
Value investors are a special breed of investor. They don't follow the herd.
If that is your style of investing, be sure to check out Tracey's weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.
The Value Investor portfolio holds between 20 and 25 value stocks for the long haul.
Click here to learn more>>>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
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ManpowerGroup (MAN): 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.
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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Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Get the full Report on AAOI - FREE Get the full Report on FAF - FREE Get the full Report on MAN - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here.
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Get the full Report on AAOI - FREE Get the full Report on FAF - FREE Get the full Report on MAN - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here. Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ).
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Get the full Report on AAOI - FREE Get the full Report on FAF - FREE Get the full Report on MAN - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here. Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ).
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Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Get the full Report on AAOI - FREE Get the full Report on FAF - FREE Get the full Report on MAN - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here.
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d3c0c168-f3a3-4f3b-866b-5b892902aa4d
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9840.0
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2017-08-04 00:00:00 UTC
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Ubiquiti (UBNT) Soars on Q4 Earnings Beat, Revenues Up Y/Y
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AAOI
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https://www.nasdaq.com/articles/ubiquiti-ubnt-soars-on-q4-earnings-beat-revenues-up-y-y-2017-08-04
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nan
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Shares of Ubiquiti Networks, Inc.UBNT rose 16.6% in the trading session yesterday, after the company reported striking revenue growth in its fiscal fourth-quarter 2017 results, beat earnings and released an upbeat guidance which trumped market expectations.
The network hardware provider reported earnings per share of 74 cents, which surpassed the Zacks Consensus Estimate of 69 cents by 7.3%.
On a non-GAAP basis, the company's earnings per share were 75 cents, reflecting 8.7% growth year over year. Ubiquiti's overarching business model and impressive top-line growth drove the stellar performance during the quarter.
Inside the Headlines
Total revenue of $228.6 million steered past the company's projected range of $215-$225 million. Also, it grew 23.1% on a year-over-year basis and topped the Zacks Consensus Estimate of $216 million comfortably. Solid demand of all product lines across each end market proved conducive to top-line growth.
The company's Enterprise Technology segment continued to fare remarkably well, with revenues soaring a whopping 48.5% year over year to $113.9 million. The striking growth was fueled by the entire UniFi product family. Disruptive pricing and higher average selling prices of recently launched products also drove the top line. Moreover, high demand for access points, switches, gateways and IP cameras and other complementary products helped increase revenues.
Even the Service Provider Technology segment grew of 5.2% year over year, generating $114.7 million. Higher sales of new offerings to the Ubiquiti community of service providers, including airMAX AC Gen2 drove sales increase of this segment.
On a geographic basis, South America charted strongest growth, as revenues surged 43.5% compared to the prior-year quarter figure. North American sales rose an impressive 18.3% year over year. In addition, Europe, Middle East and Africa, and the Asia Pacific regions grew 26.1% and 6.2%, respectively, on a year-over-year basis.
Gross margin for the quarter shrunk 320 basis points (bps) year over year to 45.4%. Recent revenue growth has been primarily driven by new product offerings, which, in turn, resulted in the reduction of gross margins.
Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise
Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise | Ubiquiti Networks, Inc. Quote
Product Launches
During the reported quarter, Ubiquiti upgraded the UniFi ecosystem, which includes hotspot analytics and high density WLAN improvements, and added new features to the AmpliFi product family. It also, offered GPS synchronization functionality for the airMAX AC product family. This apart, Ubiquiti introduced the UFiber GPON platform, which will help service providers build high-speed fiber networks.
Also, Ubiquiti Networks launched the PrismStation AC base station radios and airPrism sector antennas. This will allow customers to enjoy high-density airMAX networks throughout the world. Moreover, the company expanded the reach of its AmpliFi product family by rolling them out into retail biggies including Best Buy, Sam's Club, GameStop and international retailers.
Liquidity & Share Repurchases
Ubiquiti ended the fiscal fourth quarter with cash and cash equivalents of $604.2 million compared with $533.9 million as of Dec 31, 2016. At the end of Jun 30, 2017, the company's long-term debt was $241.8 million, up from $191.6 million recorded at the end of Dec 31, 2016.
Also, during the fiscal fourth quarter, the company repurchased 50,000 shares at an average price for $2.5 million at an average price of $49.55 per share.
Guidance
The company released optimistic guidance for fiscal first-quarter 2018. This was suppoted by its solid performance in the reported quarter, favorable business trends and sturdy demand environment. Management projects revenues in the range of $230-$250 million and GAAP earnings in the band of 89-90 cents per share.
For fiscal 2018, the company expects to garner revenues of $1.0-$1.15 billion and diluted earnings per share of $3.70-$4.30. Broad-based demands for products in both its segments are likely to fuel growth. Currently, the Zacks Consensus Estimate for fiscal 2018 earnings is pegged at $3.08 a share on sales of $914.1 million.
Our Take
Ubiquiti ended fiscal 2017 on a high note and set an ambitious goal for its next fiscal year, driven by robust demand across segments. The company remains upbeat on the market traction of the newly launched products. This apart, Ubiquiti's excellent global business model, which is highly flexible and adaptable to any kind of change in markets, has helped it steer past challenges and maximize growth.
Over the past few quarters, Ubiquiti has made significant investments in inventory to reduce lead times, meet increasing demand and support the growing number of customers. These efforts have optimized Ubiquity's inventory with the market demand. Moreover, the company's effective management of its strong global network of over 100 distributors and master resellers has improved its visibility for future demand. Positive industry trends and a resilient business model are likely to stoke the Zacks Rank #3 (Hold) company's growth.
Stocks to Consider
Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . While Applied Optoelectronics and Red Hat sport a Zacks Rank #1 (Strong Buy), Applied Materials holds the Zacks Rank #2 (Buy).
Applied Optoelectronics has an average earnings surprise of 21.0% for the trailing four quarters, beating estimates all through.
Red Hat, Inc. has a robust earnings surprise history, with an average positive surprise of 11.1%, driven by consecutive earnings beats over the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
With four back-to-back beats, Applied Materials has an average positive surprise of 3.4% for the trailing four quarters.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them 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
Ubiquiti Networks, Inc. (UBNT): Free Stock Analysis Report
Red Hat, Inc. (RHT): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): 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.
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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Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Click to get this free report Ubiquiti Networks, Inc. (UBNT): Free Stock Analysis Report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Ubiquiti Networks, Inc.UBNT rose 16.6% in the trading session yesterday, after the company reported striking revenue growth in its fiscal fourth-quarter 2017 results, beat earnings and released an upbeat guidance which trumped market expectations.
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Click to get this free report Ubiquiti Networks, Inc. (UBNT): Free Stock Analysis Report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise | Ubiquiti Networks, Inc. Quote Product Launches During the reported quarter, Ubiquiti upgraded the UniFi ecosystem, which includes hotspot analytics and high density WLAN improvements, and added new features to the AmpliFi product family.
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Click to get this free report Ubiquiti Networks, Inc. (UBNT): Free Stock Analysis Report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Shares of Ubiquiti Networks, Inc.UBNT rose 16.6% in the trading session yesterday, after the company reported striking revenue growth in its fiscal fourth-quarter 2017 results, beat earnings and released an upbeat guidance which trumped market expectations.
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Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Click to get this free report Ubiquiti Networks, Inc. (UBNT): Free Stock Analysis Report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Ubiquiti Networks, Inc.UBNT rose 16.6% in the trading session yesterday, after the company reported striking revenue growth in its fiscal fourth-quarter 2017 results, beat earnings and released an upbeat guidance which trumped market expectations.
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9841.0
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2017-08-04 00:00:00 UTC
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Technology Sector Update for 08/04/2017: MSFT, AAPL, IBM, CSCO, GOOG, AAOI, YELP, CARB
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-08042017-msft-aapl-ibm-csco-goog-aaoi-yelp-carb-2017-08-04
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Top Technology Stocks:
MSFT: +0.3%
AAPL: +0.1%
IBM: +0.5%
CSCO: flat
GOOG: +0.2%
Technology shares were mostly in positive territory in Friday's pre-market trade.
In sector news, Applied Optoelectronics ( AAOI ) was down 26.7% after forecasting Q3 sales below estimates. Q2 sales increased 112% to $117.4 million and topped the CapIQ mean for $117.3 million, while non-GAAP earnings rose to $1.54 from $0.16 last year and beat expectations for $1.35. For Q3, sales are seen between $107 million to $115 million and non-GAAP EPS $1.30 to $1.43. Analysts had forecast EPS of $1.34 and sales of $124 million.
In other sector news,
(+) YELP (+19.5%) To Sell Eat24 to GrubHub; boosts ordering as revenue beats estimates
(-) CARB (-8.4%) Q2 sales miss views, issues Q3 outlook below Street
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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 sector news, Applied Optoelectronics ( AAOI ) was down 26.7% after forecasting Q3 sales below estimates. Technology shares were mostly in positive territory in Friday's pre-market trade. In other sector news, (+) YELP (+19.5%) To Sell Eat24 to GrubHub; boosts ordering as revenue beats estimates (-) CARB (-8.4%) Q2 sales miss views, issues Q3 outlook below Street 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 sector news, Applied Optoelectronics ( AAOI ) was down 26.7% after forecasting Q3 sales below estimates. For Q3, sales are seen between $107 million to $115 million and non-GAAP EPS $1.30 to $1.43. In other sector news, (+) YELP (+19.5%) To Sell Eat24 to GrubHub; boosts ordering as revenue beats estimates (-) CARB (-8.4%) Q2 sales miss views, issues Q3 outlook below Street 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 sector news, Applied Optoelectronics ( AAOI ) was down 26.7% after forecasting Q3 sales below estimates. Q2 sales increased 112% to $117.4 million and topped the CapIQ mean for $117.3 million, while non-GAAP earnings rose to $1.54 from $0.16 last year and beat expectations for $1.35. For Q3, sales are seen between $107 million to $115 million and non-GAAP EPS $1.30 to $1.43.
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In sector news, Applied Optoelectronics ( AAOI ) was down 26.7% after forecasting Q3 sales below estimates. Q2 sales increased 112% to $117.4 million and topped the CapIQ mean for $117.3 million, while non-GAAP earnings rose to $1.54 from $0.16 last year and beat expectations for $1.35. Analysts had forecast EPS of $1.34 and sales of $124 million.
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9842.0
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2017-08-04 00:00:00 UTC
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3 Stocks to Watch on Friday: GoPro Inc (GPRO), Applied Optoelectronics Inc (AAOI) and Shake Shack Inc (SHAK)
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AAOI
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https://www.nasdaq.com/articles/3-stocks-to-watch-on-friday%3A-gopro-inc-gpro-applied-optoelectronics-inc-aaoi-and-shake
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Thursday was a broad down day for U.S. equities, led lower by the energy sector, which faltered by 1.3%. The S&P 500 lost 0.2% and the Nasdaq Composite fell 0.4%, though the Dow Jones Industrial Average managed to finish the day with marginal gains.
As we enter the final trading day of the week, the spotlight again falls on a trio of stocks following their quarterly earnings reports. Applied Optoelectronics Inc (NASDAQ: AAOI ), GoPro Inc (NASDAQ: GPRO ) and Shake Shack Inc (NYSE: SHAK ) are all worth keeping an eye on Friday.
Here's what you need to know.
Applied Optoelectronics Inc (AAOI)
One of Wall Street's hottest stocks in 2017 is getting hammered following its second-quarter earnings report.
Applied Optoelectronics - a fiber-optic component supplier - actually put up Street-beating results for Q2 that were far wider than analysts' expectations. Earnings of $1.54 per share were 862.5% better year-over-year, and easily trounced Wall Street's projections for $1.32 per share in profits. AAOI's revenues of $117.4 million were a 112% year-over-year jump that beat estimates for $116.3 million.
7 Cheap Dividend Stocks to Buy for $20 or Less
However, the company expects "softer-than-expected demand for our 40G solutions with one of our large customers that will offset the sequential growth and increased demand we expect in 100G," and thus delivered disappointing Q3 guidance. Specifically, the midpoint of the company's projected earnings range of $1.30-$1.43 per share fell far below Wall Street's estimates for $1.31 per share, and AAOI revenues of $107 million-$115 million are far below the $123 million analysts expected.
AAOI stock, which had more than quadrupled in 2017 alone , is losing a massive chunk of those gains this morning, off 27% in Friday's morning trade.
GoPro Inc (GPRO)
GPRO stock, meanwhile, is poised to make one of its biggest single-day gains of the year following its Q2 results .
The action-camera maker unveiled a loss of 9 cents per share - narrower than the 25-cent loss expected by Wall Street's pros, and significantly better than the year-ago adjusted loss of 52 cents. Meanwhile, revenues of $296.5 million were better by 28.4% year-over-year and topped estimates of $269.9 million. Over half of the country's revenue was brought in from markets outside the U.S.
Higher demand for GPRO products, as well as cost-saving initiatives, helped drive better margins and profits for the period.
Things looked rosy going forward, too. GoPro is projecting earnings in a range of a 1-cent loss to an 11-cent profit for the current quarter; analysts were looking for a 12-cent loss. Meanwhile, GoPro's revenue range of $290 million-$310 million was more than enough to top the consensus estimate of $278.5 million.
GPRO shares are surging more than 15% ahead of Friday's bell. That should reverse a 5% year-to-date loss and send the stock back into the black for 2017.
Shake Shack Inc (SHAK)
Shake Shack's lousy year looks set to continue Friday following (and despite) the company's second-quarter earnings beat.
Will Alphabet Inc (GOOGL) Stock Sustain Moonshot Wounds?
The burger chain earned $4.9 million for the second quarter - a 48% year-over-year jump from the $3.3 million it earned a year ago. On an adjusted basis, profits of 20 cents per share were 4 cents better than Wall Street's estimates.
Revenues were just as good, climbing 37% year-over-year to $91.3 million, good enough to beat analyst expectations for $89 million. That came on a same-store sales decline of 1.8%.
What's hampering SHAK shares this morning are Q3 expectations. Shake Shack says full-year comps are on track to decline 2%-3% year-over-year. Moreover, a projected revenue range of $351 million-$355 million came in below Wall Street estimates for $356.7 million.
SHAK shares are down fractionally this morning, which should keep the stock mired in a losing year-to-date effort.
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The post 3 Stocks to Watch on Friday: GoPro Inc (GPRO), Applied Optoelectronics Inc (AAOI) and Shake Shack Inc (SHAK) appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Applied Optoelectronics Inc (NASDAQ: AAOI ), GoPro Inc (NASDAQ: GPRO ) and Shake Shack Inc (NYSE: SHAK ) are all worth keeping an eye on Friday. Applied Optoelectronics Inc (AAOI) One of Wall Street's hottest stocks in 2017 is getting hammered following its second-quarter earnings report. AAOI's revenues of $117.4 million were a 112% year-over-year jump that beat estimates for $116.3 million.
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Applied Optoelectronics Inc (NASDAQ: AAOI ), GoPro Inc (NASDAQ: GPRO ) and Shake Shack Inc (NYSE: SHAK ) are all worth keeping an eye on Friday. Specifically, the midpoint of the company's projected earnings range of $1.30-$1.43 per share fell far below Wall Street's estimates for $1.31 per share, and AAOI revenues of $107 million-$115 million are far below the $123 million analysts expected. More From InvestorPlace Square Inc (SQ) Stock Remains Insanely Priced on Solid Q2 Earnings 5 Stocks to Buy in August The Top 10 ETFs Money Can Buy The post 3 Stocks to Watch on Friday: GoPro Inc (GPRO), Applied Optoelectronics Inc (AAOI) and Shake Shack Inc (SHAK) appeared first on InvestorPlace .
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Specifically, the midpoint of the company's projected earnings range of $1.30-$1.43 per share fell far below Wall Street's estimates for $1.31 per share, and AAOI revenues of $107 million-$115 million are far below the $123 million analysts expected. More From InvestorPlace Square Inc (SQ) Stock Remains Insanely Priced on Solid Q2 Earnings 5 Stocks to Buy in August The Top 10 ETFs Money Can Buy The post 3 Stocks to Watch on Friday: GoPro Inc (GPRO), Applied Optoelectronics Inc (AAOI) and Shake Shack Inc (SHAK) appeared first on InvestorPlace . Applied Optoelectronics Inc (NASDAQ: AAOI ), GoPro Inc (NASDAQ: GPRO ) and Shake Shack Inc (NYSE: SHAK ) are all worth keeping an eye on Friday.
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Applied Optoelectronics Inc (NASDAQ: AAOI ), GoPro Inc (NASDAQ: GPRO ) and Shake Shack Inc (NYSE: SHAK ) are all worth keeping an eye on Friday. Applied Optoelectronics Inc (AAOI) One of Wall Street's hottest stocks in 2017 is getting hammered following its second-quarter earnings report. Specifically, the midpoint of the company's projected earnings range of $1.30-$1.43 per share fell far below Wall Street's estimates for $1.31 per share, and AAOI revenues of $107 million-$115 million are far below the $123 million analysts expected.
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9843.0
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2017-08-04 00:00:00 UTC
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Arrow (ARW) Q2 Earnings & Revenues Top Estimates, Guides Well
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AAOI
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https://www.nasdaq.com/articles/arrow-arw-q2-earnings-revenues-top-estimates-guides-well-2017-08-04
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nan
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Arrow Electronics Inc.ARW reported strong second-quarter 2017 results. The company's quarterly revenues and earnings not only marked a year-over-year improvement, but also surpassed the respective Zacks Consensus Estimate. The figures also came above the mid-point of the company's guidance ranges.
Arrow's non-GAAP earnings of $1.78 per share beat the Zacks Consensus Estimate by a penny and came above the mid-point of its guidance range of $1.70-$1.82 (mid-point $1.76 per share). Moreover, earnings increased from $1.65 per share reported in the year-ago quarter.
Quarter Detail
Arrow's revenues, on a reported basis, were $6.465 billion, up 8% from the year-ago quarter. Quarterly revenues also surpassed the Zacks Consensus Estimate of $6.192 billion as well as came above the mid-point of the company's guidance range of $5.975 billion and $6.375 billion (mid-point $6.175 billion).
On a reported basis, revenues from Global components increased 16.4% to $4.462 billion. On an adjusted basis (excluding the impact of changes in foreign currencies and acquisitions), the figure grew 17.2%. Geographically, revenues from America and the Asia Pacific climbed 15% and 21%, respectively. Sales from Europe rose approximately 13% on a year-over-year basis.
Revenues at Global Enterprise Computing Solutions (ECS) came in at $2.003 billion, down 6.4% on a year-over-year basis. On an adjusted basis, revenues decreased 5.1%, primarily due to foreign currency fluctuations. Revenues from the Americas were down 4% year over year, while revenues from Europe decreased 7.3%.
Gross margin contracted 70 basis points (bps) year over year and came in at 12.7%. Also, Arrow reported non-GAAP operating margin of 4.1%, down 20 bps. However, operating income in dollar terms, increased 4.9% year over year to $266.6 million.
The company's non-GAAP net income was $159.9 million or $1.78 per share compared with $152.7 million or $1.65 per share last year.
Arrow exited the quarter with cash and cash equivalents of $521.6 million compared with $419.9 million at the end of fourth-quarter 2016. Long-term debt (including current portion) was $3.07 billion compared with $2.46 billion at the end of the previous quarter. During the quarter, the company had negative operating cash flow of $112.2 million. Further, it spent $54.8 million for share repurchases during the quarter.
Guidance
Buoyed by the splendid second-quarter performance, Arrow provided a strong revenue and earnings guidance for the third quarter which is well ahead of our expectations.
For the third quarter, sales are expected between $6.325 billion and $6.725 billion (mid-point $6.525 billion). The Zacks Consensus Estimate is pegged at $6.22 billion. Global components sales are projected in a range of $4.4-$4.6 billion. Global enterprise computing solutions sales are estimated to be in the range of $1.925-$2.125 billion.
The company projects non-GAAP earnings per share in a range of $1.74-$1.86 (mid-point $1.8 per share). The Zacks Consensus Estimate is pegged at $1.72 per share.
Our Take
The company reported impressive second-quarter performance and provided an optimistic guidance for the third quarter.
Notably, Arrow's share price movement has been much impressive since the beginning of this year. Year to date, the company's shares have gained 12.7%, while the industry incurred a loss of 6.1%.
Meanwhile, incremental sales from strategic acquisitions, such as Computerlinks, are anticipated to boost the top line. However, uncertain economic conditions, a high debt burden and competition from the likes of Avnet AVT remain concerns.
Currently, Arrow carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Symantec Corporation SYMC , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
The long-term expected EPS growth rate for Applied Optoelectronics and Symantec are 18.75% and 10.25%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Symantec Corporation (SYMC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Arrow Electronics, Inc. (ARW): Free Stock Analysis 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.
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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Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Symantec Corporation SYMC , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report To read this article on Zacks.com click here. The company's quarterly revenues and earnings not only marked a year-over-year improvement, but also surpassed the respective Zacks Consensus Estimate.
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Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Symantec Corporation SYMC , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report To read this article on Zacks.com click here. Guidance Buoyed by the splendid second-quarter performance, Arrow provided a strong revenue and earnings guidance for the third quarter which is well ahead of our expectations.
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Click to get this free report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Symantec Corporation SYMC , both sporting a Zacks Rank #1 (Strong Buy). Arrow's non-GAAP earnings of $1.78 per share beat the Zacks Consensus Estimate by a penny and came above the mid-point of its guidance range of $1.70-$1.82 (mid-point $1.76 per share).
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Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Symantec Corporation SYMC , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report To read this article on Zacks.com click here. Quarter Detail Arrow's revenues, on a reported basis, were $6.465 billion, up 8% from the year-ago quarter.
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fbca893b-b369-49ec-be27-ffa37e774bf7
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9844.0
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2017-08-04 00:00:00 UTC
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Applied Optoelectronics (AAOI) Stock Falls 29% After Disappointing Q3 Guidance
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-stock-falls-29-after-disappointing-q3-guidance-2017-08-04
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Shares of Applied Optoelectronics, Inc. AAOI fell 29% in morning trading on Friday after posting its second-quarter fiscal 2017 financial results. While the fiber-optic component supplier beat Q2 estimates, it reported disappointing Q3 guidance.
Applied Optoelectronics expects "softer-than-expected demand for our 40G solutions with one of our large customers that will offset the sequential growth and increased demand we expected in 100G."
As a result, the company's revenue guidance of $107-$115 million fell below Wall Street's expectations of $123 million, as did the company's projected earnings range of $1.30-$1.43 per share.
However, Applied Optoelectronics did beat estimates for its second-quarter. The company posted earnings of $1.43 per share, beating our consensus estimate of $1.29 per share. The company also saw revenue figures of $117.37 million, beating our consensus estimate of $115.64 million and representing a 112% increase year-over-year.
"We are pleased with our team's continued solid execution this quarter. We believe AAOI has a leading position in the advanced optics market and we continue to expand with our existing customer base as well as engage with new customers for 100G technologies and beyond," said President and CEO Dr. Thompson Lin.
"We believe our ability to leverage our vertical integration and proprietary manufacturing processes to drive greater efficiencies and shorten our production cycle times sets AOI apart from others in the industry."
AAOI remains a Zacks Rank #1 (Strong Buy), with a Growth score of 'A.' The company's stock has gained roughly 200% this year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them 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
Applied Optoelectronics, Inc. (AAOI): 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.
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 Applied Optoelectronics, Inc. AAOI fell 29% in morning trading on Friday after posting its second-quarter fiscal 2017 financial results. We believe AAOI has a leading position in the advanced optics market and we continue to expand with our existing customer base as well as engage with new customers for 100G technologies and beyond," said President and CEO Dr. Thompson Lin. AAOI remains a Zacks Rank #1 (Strong Buy), with a Growth score of 'A.'
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Applied Optoelectronics, Inc. AAOI fell 29% in morning trading on Friday after posting its second-quarter fiscal 2017 financial results. We believe AAOI has a leading position in the advanced optics market and we continue to expand with our existing customer base as well as engage with new customers for 100G technologies and beyond," said President and CEO Dr. Thompson Lin.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Applied Optoelectronics, Inc. AAOI fell 29% in morning trading on Friday after posting its second-quarter fiscal 2017 financial results. We believe AAOI has a leading position in the advanced optics market and we continue to expand with our existing customer base as well as engage with new customers for 100G technologies and beyond," said President and CEO Dr. Thompson Lin.
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Shares of Applied Optoelectronics, Inc. AAOI fell 29% in morning trading on Friday after posting its second-quarter fiscal 2017 financial results. We believe AAOI has a leading position in the advanced optics market and we continue to expand with our existing customer base as well as engage with new customers for 100G technologies and beyond," said President and CEO Dr. Thompson Lin. AAOI remains a Zacks Rank #1 (Strong Buy), with a Growth score of 'A.'
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9845.0
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2017-08-04 00:00:00 UTC
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Technology Sector Update for 08/04/2017: AAOI,WIFI,EFII
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-08042017-aaoiwifiefii-2017-08-04
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nan
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Top Tech Stocks
MSFT +0.61%
AAPL +0.44%
IBM +0.24%
CSCO +0.82%
GOOG +0.29%
Technology stocks were adding to small gains this afternoon, with shares of tech companies in the S&P 500 rising slightly more than 0.2% in recent trade.
In company news, Applied Optoelectronics ( AAOI ) retreated Friday, losing more than third of its value and sinking to a session low of $66.75 a share after the company missed analyst estimates with its sales forecast for the current quarter ending Sept. 30.
The fiber optics-based networking company is now modeling Q3 sales between $107 million to $115 million, lagging the Capital IQ consensus by at least $9 million. It also sees non-GAAP EPS in a range of $1.30 to $1.43, straddling the $1.34 per share Street view.
The company late Thursday also said sales for its Q2 ended June 30 jumped 112% over year-ago levels to $117.4 million, roughly in-line with the $117.3 million analyst mean. Adjusted earnings rose to $1.54 per share from $0.16 last year, beating Wall Street expectations looking for a $1.35 per share non-GAAP profit.
In other sector news,
(+) WIFI, (+27.0%) Oppenheimer increases price target by $6 - or 33% - to $24 a share. Late Thursday, reports Q2 earnings, revenue exceeding analyst estimates.
(-) EFII, (-43.2%) Postpones reporting Q2 financial results while the company reviews the timing of when it recognizes certain revenues under a customer contract.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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 company news, Applied Optoelectronics ( AAOI ) retreated Friday, losing more than third of its value and sinking to a session low of $66.75 a share after the company missed analyst estimates with its sales forecast for the current quarter ending Sept. 30. Technology stocks were adding to small gains this afternoon, with shares of tech companies in the S&P 500 rising slightly more than 0.2% in recent trade. (-) EFII, (-43.2%) Postpones reporting Q2 financial results while the company reviews the timing of when it recognizes certain revenues under a customer contract.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In company news, Applied Optoelectronics ( AAOI ) retreated Friday, losing more than third of its value and sinking to a session low of $66.75 a share after the company missed analyst estimates with its sales forecast for the current quarter ending Sept. 30. Late Thursday, reports Q2 earnings, revenue exceeding analyst estimates.
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In company news, Applied Optoelectronics ( AAOI ) retreated Friday, losing more than third of its value and sinking to a session low of $66.75 a share after the company missed analyst estimates with its sales forecast for the current quarter ending Sept. 30. The fiber optics-based networking company is now modeling Q3 sales between $107 million to $115 million, lagging the Capital IQ consensus by at least $9 million. The company late Thursday also said sales for its Q2 ended June 30 jumped 112% over year-ago levels to $117.4 million, roughly in-line with the $117.3 million analyst mean.
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In company news, Applied Optoelectronics ( AAOI ) retreated Friday, losing more than third of its value and sinking to a session low of $66.75 a share after the company missed analyst estimates with its sales forecast for the current quarter ending Sept. 30. It also sees non-GAAP EPS in a range of $1.30 to $1.43, straddling the $1.34 per share Street view. The company late Thursday also said sales for its Q2 ended June 30 jumped 112% over year-ago levels to $117.4 million, roughly in-line with the $117.3 million analyst mean.
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9846.0
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2017-08-04 00:00:00 UTC
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Why Applied Optoelectronics, Trivago, and First Majestic Silver Slumped Today
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AAOI
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https://www.nasdaq.com/articles/why-applied-optoelectronics-trivago-and-first-majestic-silver-slumped-today-2017-08-04
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Friday was another quiet day on Wall Street, but the overall direction of the market remained positive. Modest gains for major benchmarks sent the Dow Jones Industrials to record heights yet again, even as some market participants begin to look ahead with fear about the traditionally difficult months of September and October. Favorable numbers on the employment front bolstered investor confidence, and a lack of bad news on the geopolitical stage played a positive role as well. Yet some individual stocks suffered big losses, and Applied Optoelectronics (NASDAQ: AAOI) , Trivago (NASDAQ: TRVG) , and First Majestic Silver (NYSE: AG) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
The lights go out on Applied Optoelectronics
Applied Optoelectronics stock lost a third of its value in the wake of the release of the company's fiscal second-quarter financial report. The maker of fiber-optic networking products said that revenue doubled from year-ago levels, and earnings soared by almost 800% on strong current conditions in the industry. Yet shareholders weren't satisfied with Applied Optoelectronics' guidance, which included calls for decelerating revenue growth for the current quarter. With the stock having soared over the past year , expectations among investors were extremely high, but Applied Optoelectronics' fundamentals still look strong even if the share price perhaps got ahead of itself.
Trivago loses ground, money
Shares of Trivago fell nearly 19% after the company's second-quarter financial results didn't live up to investor expectations. Sales soared by two-thirds from year-ago levels, but the company wasn't able to break even on the bottom line, suffering a modest loss of 3.4 million euros. Trivago is also facing the inevitable slowdown that all high-growth companies eventually face, with those following the stock now expecting growth rates to decelerate from past levels as Trivago grows larger. Summer is the high season for travel, so Trivago's results next quarter will be telling as to whether the company's overall core strategy toward its business is poised to succeed in the long run.
First Majestic loses its crown
Finally, First Majestic Silver stock finished down 19%. The silver miner took a hit on many key fundamental metrics in its second-quarter financial report, including a 16% drop in silver production to 2.3 million ounces and a nearly one-fifth rise in all-in sustaining costs. Revenue and average realized silver price both declined, and mine operating earnings plunged by more than 85% from the year-earlier quarter. CEO Keith Neumeyer said that a number of labor issues that hurt First Majestic's results have now been resolved, but he said that investments the company is making will take 12 to 24 months to produce the positive impacts that impatient shareholders want to see. Investors will have to wait to see whether resolutions to the problems result in a rebound next quarter.
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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Trivago. 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.
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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Yet some individual stocks suffered big losses, and Applied Optoelectronics (NASDAQ: AAOI) , Trivago (NASDAQ: TRVG) , and First Majestic Silver (NYSE: AG) were among the worst performers on the day. Modest gains for major benchmarks sent the Dow Jones Industrials to record heights yet again, even as some market participants begin to look ahead with fear about the traditionally difficult months of September and October. Summer is the high season for travel, so Trivago's results next quarter will be telling as to whether the company's overall core strategy toward its business is poised to succeed in the long run.
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Yet some individual stocks suffered big losses, and Applied Optoelectronics (NASDAQ: AAOI) , Trivago (NASDAQ: TRVG) , and First Majestic Silver (NYSE: AG) were among the worst performers on the day. Yet shareholders weren't satisfied with Applied Optoelectronics' guidance, which included calls for decelerating revenue growth for the current quarter. With the stock having soared over the past year , expectations among investors were extremely high, but Applied Optoelectronics' fundamentals still look strong even if the share price perhaps got ahead of itself.
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Yet some individual stocks suffered big losses, and Applied Optoelectronics (NASDAQ: AAOI) , Trivago (NASDAQ: TRVG) , and First Majestic Silver (NYSE: AG) were among the worst performers on the day. Trivago is also facing the inevitable slowdown that all high-growth companies eventually face, with those following the stock now expecting growth rates to decelerate from past levels as Trivago grows larger. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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Yet some individual stocks suffered big losses, and Applied Optoelectronics (NASDAQ: AAOI) , Trivago (NASDAQ: TRVG) , and First Majestic Silver (NYSE: AG) were among the worst performers on the day. The lights go out on Applied Optoelectronics Applied Optoelectronics stock lost a third of its value in the wake of the release of the company's fiscal second-quarter financial report. Trivago loses ground, money Shares of Trivago fell nearly 19% after the company's second-quarter financial results didn't live up to investor expectations.
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be10e820-c7c3-450a-945f-55b698c93535
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9847.0
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2017-08-03 00:00:00 UTC
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HubSpot's (HUBS) Revenues Up year-on-year in Q2 Earnings
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AAOI
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https://www.nasdaq.com/articles/hubspots-hubs-revenues-up-year-on-year-in-q2-earnings-2017-08-03
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nan
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nan
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Hubspot, Inc.HUBS reported revenues of $89.1 million, showcasing a year-over-year increase of 37.1% in second-quarter 2017. The figure surpassed the Zacks Consensus Estimate of $86 million as well as the guided range of $85-$86 million.
The company posted adjusted profit of 7 cents per share against a loss of 7 cents per share in the year-ago quarter. Notably, including stock-based compensation, loss per share came in at 26 cents.
The Zacks Consensus Estimate was pegged at a loss of 37 cents.
The year-over-year growth in revenues can be primarily attributed to the growing customer base.
HubSpot's stock has gained 49.2% year to date, substantially outperforming the 19.4% rally of the industry it belongs to.
Quarter Details
Total customers increased 40% year over year to 34,326. Marketing customers increased 30% to 26,560.
Average subscription revenue per customer was up 6.6% year over year to $12,773. The company continues to witness rapid adoption of its $50 per month marketing starter product, but we believe this will hurt the average subscription revenue per customer in the near term.
Management stated that it is hopeful about these customers upgrading to higher priced products over time.
Deferred revenues grew 44% year over year to $111.3 million, while calculated billings, defined as revenue plus the change in deferred revenues, came in at $94.8 million, up 39% year over year. Management noted that growth in billings was partially backed by a forex benefit.
International revenues grew 62% year over year, representing 32% of total revenue in the quarter.
HubSpot, Inc. Price, Consensus and EPS Surprise
HubSpot, Inc. Price, Consensus and EPS Surprise | HubSpot, Inc. Quote
Management stated that the growing adoption of Hubspot's flagship product, One Hubspot and launch of a few other freemium products as a complementary addition to the company's core paid sales and marketing products, have been positives for the top line.
Adjusted subscription revenue gross margin expanded 160 basis points (bps) from the year-ago quarter to 85.4%.
The company reported non-GAAP operating income of $2.4 million against a loss of $2.5 million in the year-ago quarter.
Guidance
HubSpot forecasts revenues in the range of $92.8-$93.8 million for the third quarter of 2017, which reflects sequential improvement of almost 4.7% at the mid-point. The Zacks Consensus Estimate is currently pegged at $84.5 million.
Management expects non-GAAP operating loss in the range of $4.5 million to $3.5 million for the quarter. Moreover, HubSpot expects non-GAAP net loss per share to be in the range 8 cents to 10 cents. The Zacks Consensus Estimate (includes stock-based compensation) is currently pegged at a loss of 43 cents per share.
For full-year 2017, HubSpot expects revenues in the range of $362.8 million to $364.8 million. Non-GAAP operating income is expected in the range of breakeven to $2 million, up from the previous guidance of a loss of $3 million to $5 million.
Non-GAAP net income per share is anticipated to be in the range of 3 cents to 7 cents compared with the previously guided range of 4 cents to 10 cents per share. The Zacks Consensus Estimate for revenues is currently pegged at $358.17 million.
The company expects free cash flow for the year in the range of $15 million to $16 million, up from $13 million to $14 million.
Zacks Rank & Stocks to Consider
Currently, HubSpot carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , Applied Optoelectronics, Inc. AAOI , and Symantec Corp. SYMC , all sporting a Zacks Rank #1.
Long-term earnings growth rate for Alibaba Group, Applied Optoelectronics and Symantec are projected to be 28.9%, 18.7% and 10.3%, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
See these stocks now>>
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
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
HubSpot, Inc. (HUBS): Free Stock Analysis Report
Symantec Corporation (SYMC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , Applied Optoelectronics, Inc. AAOI , and Symantec Corp. SYMC , all sporting a Zacks Rank #1. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company continues to witness rapid adoption of its $50 per month marketing starter product, but we believe this will hurt the average subscription revenue per customer in the near term.
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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , Applied Optoelectronics, Inc. AAOI , and Symantec Corp. SYMC , all sporting a Zacks Rank #1. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. HubSpot, Inc. Price, Consensus and EPS Surprise HubSpot, Inc. Price, Consensus and EPS Surprise | HubSpot, Inc. Quote Management stated that the growing adoption of Hubspot's flagship product, One Hubspot and launch of a few other freemium products as a complementary addition to the company's core paid sales and marketing products, have been positives for the top line.
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Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , Applied Optoelectronics, Inc. AAOI , and Symantec Corp. SYMC , all sporting a Zacks Rank #1. Deferred revenues grew 44% year over year to $111.3 million, while calculated billings, defined as revenue plus the change in deferred revenues, came in at $94.8 million, up 39% year over year.
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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , Applied Optoelectronics, Inc. AAOI , and Symantec Corp. SYMC , all sporting a Zacks Rank #1. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company posted adjusted profit of 7 cents per share against a loss of 7 cents per share in the year-ago quarter.
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0415c27f-3072-465e-bacf-2501317abac8
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9848.0
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2017-08-03 00:00:00 UTC
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Groupon (GRPN) Q2 Earnings and Revenues Fall Year Over Year
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AAOI
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https://www.nasdaq.com/articles/groupon-grpn-q2-earnings-and-revenues-fall-year-over-year-2017-08-03
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nan
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nan
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Groupon Inc. GRPN reported non-GAAP second-quarter 2017 earnings of 2 cents per share compared with 3 cents in the year-ago quarter. The reported figure was much better than non-GAAP loss per share of 4 cents in the previous quarter. The sequential improvement in the bottom-line can primarily be attributed to the company's streamlining activities.
Including stock-based compensation, the figure was a loss of 1 cent per share, narrower than the Zacks Consensus Estimate of a loss of 4 cents per share.
Revenues of $662.6 million missed the Zacks Consensus Estimate of $669 million and also declined 8.4% on a year-over-year basis.
Groupon's focus on domestic market is helping in acceleration of gross profit. The company's North American local units continue to grow with the addition of new customers, partially offset by the departure of LivingSocial customers.
The company entered into a long-term commercial deal with Grubhub GRUB in the quarter, which is anticipated to be a growth driver going forward.
Nevertheless, the rollout of the company's new card-linked platform, Groupon+ that replaces the voucher system and makes discounting processes easy will be a tailwind.
Notably Groupon stock has gained 27.4% year to date, underperforming the 47.3% rally of the industry it belongs to.
Revenue Details
Region-wise, North America revenues decreased 12.6% from the year-ago quarter while International revenues increased 1.9% year over year.
Billings from North America were up 0.8% year over year. However, international billings declined 7.9%.
North America local gross billings of $615.83 million grew 13.5%. Local revenues of $207.53 million grew 12.7% from the year-ago quarter. However, goods billings declined 22.8% to $245.92 million and revenues fell 28.7% to $222.06 million.
As of Jun 30, 2017, the company had approximately 48.3 million active customers globally. Groupon added nearly 300K new customers in North America during the quarter. Active customers in North America were 31.9 million at the end of the quarter.
Groupon, Inc. Price, Consensus and EPS Surprise
Groupon, Inc. Price, Consensus and EPS Surprise | Groupon, Inc. Quote
Operating Details
Gross margin increased 590 basis points (bps) on a year-over-year basis to 49.5% in the quarter. North America gross profit increased 8%, while internationally it declined 4% (1% Fx-neutral).
Adjusted EBITDA margin expanded 310 bps to 8%, reflecting the successful implementation of the company's streamlining strategies.
Groupon's operating expenses (excluding one-time items) decreased 4.9% year over year to $330.84 as SG&A declined 11%.
Operating loss (excepting one-time items) was $2.77 million compared with a loss of $32.54 million in the year-ago quarter.
Balance Sheet and Cash Flow
As of Jun 31, 2017, Groupon had cash & cash equivalents worth $618.6 million compared with $691 million as of Mar 31, 2017.
During the second quarter, Groupon repurchased 7,185,453 shares of its common stock for an aggregate purchase price of $24.8 million.
Outlook
For third-quarter 2017, Groupon expects EBITDA to decline sequentially as the company plans to continue its investments in marketing and offline campaigning activities. However, EBITDA is expected to increase from the year-ago quarter figure of $36 million.
For 2017, Groupon projects gross profit to remain in the range of $1.30 billion to $1.35 billion.
Also, adjusted EBITDA is projected in the range of $215 million-$240 million, the lower end of the range being raised from $210 million.
Zacks Rank & Stocks to Consider
Currently, Groupon carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1.
Long-term earnings growth rate for Alibaba Group, Applied Optoelectronics are projected to be 28.9% and 18.7%respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential .
See these stocks now>>
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
Groupon, Inc. (GRPN): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
GrubHub Inc. (GRUB): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1. Click to get this free report Groupon, Inc. (GRPN): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report GrubHub Inc. (GRUB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Outlook For third-quarter 2017, Groupon expects EBITDA to decline sequentially as the company plans to continue its investments in marketing and offline campaigning activities.
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Click to get this free report Groupon, Inc. (GRPN): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report GrubHub Inc. (GRUB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1. Revenue Details Region-wise, North America revenues decreased 12.6% from the year-ago quarter while International revenues increased 1.9% year over year.
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Click to get this free report Groupon, Inc. (GRPN): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report GrubHub Inc. (GRUB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1. Revenue Details Region-wise, North America revenues decreased 12.6% from the year-ago quarter while International revenues increased 1.9% year over year.
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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1. Click to get this free report Groupon, Inc. (GRPN): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report GrubHub Inc. (GRUB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Active customers in North America were 31.9 million at the end of the quarter.
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e71df2f1-0faf-4ce8-8038-880084fde990
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9849.0
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2017-08-03 00:00:00 UTC
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3 Best-Performing Stocks in July
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AAOI
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https://www.nasdaq.com/articles/3-best-performing-stocks-july-2017-08-03
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nan
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nan
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A rising tide lifts all boats, so when the stock market indexes hit new all-time highs, the shares of even the worst laggards are bound to get a boost. While that was true for some of the best-performing stocks in July, there were other factors at play.
Read on to find out why the market alone was not the cause for the surge of biggest gainers Hertz (NYSE: HTZ) , Applied Optoelectronics (NASDAQ: AAOI) , and Halcon Resources (NYSE: HK) , as well as to see if they can hold on to their gains.
1. Hertz (up 63.4%)
There are plenty of reasons why car-rental agency Hertz was left abandoned on the side of the road for most of the year, including a collapse in used-car pricing and the ascendance of ridesharing services Uber and Lyft. Yet some of Hertz's wounds are self-inflicted: its ill-fated acquisition of budget rival Dollar Thrifty, which saddled it with significant debt, and an aging car fleet filled with vehicles that didn't match up with consumer demand.
But there were signs Hertz was ready to make a U-turn, including a new CEO with the experience to make a turnaround; a major $1 billion debt offering of senior second-priority secured notes, to pay down debt due in 2018 and 2019; and dumping at a faster rate the compact cars in its rental fleet in favor of SUVs.
In July, a few external factors turned in Hertz's favor. For example, industry car-pricing trends turned positive, and the airline industry said travel was staying stronger longer than expected. The news boosted Hertz stock, which jumped over 60% in the month, after having lost more than half its value during the first half of the year. It's still lower than it was at the start of 2017, but with the stock trading at only a fraction of sales and a turnaround in progress that's buoyed by some favorable factors finally, the car-rental agency may have more room to run.
2. Applied Optoelectronics (up 67.4%)
Unlike Hertz, Applied Optoelectronics has been on a tear, more than tripling in value since the start of the year and up over 667% over the last 12 months. That the fiber-optic network products provider has continued its run-up in the month of July may be the least surprising thing, except maybe to the short-sellers who keep expecting its shares to fall.
Short interest on Applied Optoelectronics has continued its torrid climb higher, and now stands at 56% of shares outstanding and 59% of float, or 10.75 million shares. That's 4% higher than a month ago, and five times more than where it stood at the end of last year. As the stock climbed, so did the bets against it.
It's possible the short-sellers are right in the short term -- even a broken clock is right twice a day -- but the long-term prospects for Applied Optoelectronics are bright indeed. Internet companies are upgrading to 100-gigabit-per-second technology, and their cloud-connected data centers need to be able to handle the burgeoning server-to-server traffic. Not to mention the necessity of providing high-speed data links between the centers.
With big-name customers such as Amazon.com to Microsoft , Applied Optoelectronics will likely be able to keep exceeding guidance, as it did two weeks ago when its reported revenue of $117 million handily exceeded its guidance of $106 million to $112 million; profits and margins also beat expectations.
There will be ups and downs for the fiber-optic network products provider, but the long-term outlook seems appreciably higher still.
3. Halcon Resources (up 71.3%)
The best-performing stock in July was independent oil and gas producer Halcon Resources, which surged more than 70% for the month. While it was a banner time for its shares, it was hardly a salve for investors, who first had to endure a bankruptcy late last year that forced them to give up 96% of their equity stake to creditors, only to see their shares fall further this year.
And the gains for the month were predicated on Halcon's unloading all of its assets in the Williston Basin in North Dakota in return for $1.4 billion. At the peak of the oil boom, the region was like the California during the Gold Rush, with everyone streaming in to stake a claim. The collapse in oil prices led to a bust, and Halcon Resources couldn't escape fast enough.
It still has its assets in the Permian Basin of west Texas that it will now focus on, but that's going to be a tough row to hoe -- or field to drill. While the price of West Texas Intermediate crude oil bounced higher this week to $49 a barrel, it's still depressed and may not be able to hold.
Considering its weakened state, Halcon Resources' gains may be ephemeral.
10 stocks we like better than Applied Optoelectronics
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of July 6, 2017
Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool's board of directors. LinkedIn is owned by Microsoft. Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon. 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.
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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Read on to find out why the market alone was not the cause for the surge of biggest gainers Hertz (NYSE: HTZ) , Applied Optoelectronics (NASDAQ: AAOI) , and Halcon Resources (NYSE: HK) , as well as to see if they can hold on to their gains. A rising tide lifts all boats, so when the stock market indexes hit new all-time highs, the shares of even the worst laggards are bound to get a boost. Yet some of Hertz's wounds are self-inflicted: its ill-fated acquisition of budget rival Dollar Thrifty, which saddled it with significant debt, and an aging car fleet filled with vehicles that didn't match up with consumer demand.
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Read on to find out why the market alone was not the cause for the surge of biggest gainers Hertz (NYSE: HTZ) , Applied Optoelectronics (NASDAQ: AAOI) , and Halcon Resources (NYSE: HK) , as well as to see if they can hold on to their gains. Halcon Resources (up 71.3%) The best-performing stock in July was independent oil and gas producer Halcon Resources, which surged more than 70% for the month. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
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Read on to find out why the market alone was not the cause for the surge of biggest gainers Hertz (NYSE: HTZ) , Applied Optoelectronics (NASDAQ: AAOI) , and Halcon Resources (NYSE: HK) , as well as to see if they can hold on to their gains. Applied Optoelectronics (up 67.4%) Unlike Hertz, Applied Optoelectronics has been on a tear, more than tripling in value since the start of the year and up over 667% over the last 12 months. Halcon Resources (up 71.3%) The best-performing stock in July was independent oil and gas producer Halcon Resources, which surged more than 70% for the month.
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Read on to find out why the market alone was not the cause for the surge of biggest gainers Hertz (NYSE: HTZ) , Applied Optoelectronics (NASDAQ: AAOI) , and Halcon Resources (NYSE: HK) , as well as to see if they can hold on to their gains. Applied Optoelectronics (up 67.4%) Unlike Hertz, Applied Optoelectronics has been on a tear, more than tripling in value since the start of the year and up over 667% over the last 12 months. Short interest on Applied Optoelectronics has continued its torrid climb higher, and now stands at 56% of shares outstanding and 59% of float, or 10.75 million shares.
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cb8157f0-dca4-47f6-a45a-459e40154a99
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9850.0
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2017-08-03 00:00:00 UTC
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Watts Water (WTS) Tops Q2 Earnings, Records In-Line Revenues
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AAOI
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https://www.nasdaq.com/articles/watts-water-wts-tops-q2-earnings-records-in-line-revenues-2017-08-03
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nan
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nan
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Watts Water Technologies, Inc.WTS reported second-quarter 2017 adjusted earnings of 83 cents per share, up 11% year over year, primarily on the back of operational improvement, driven by productivity and restructuring initiatives. Earnings also surpassed the Zacks Consensus Estimate of 80 cents.
On a reported basis, including special items, Watts Water's earnings were 79 cents per share in the quarter, down 5% year over year from 83 cents recorded in the year-ago quarter.
Total revenue was up 2% year over year to $378.5 million in the quarter. It came in line with the Zacks Consensus Estimate of $379 million. Organic sales remained flat year over year.
Watts Water Technologies, Inc. Price, Consensus and EPS Surprise
Watts Water Technologies, Inc. Price, Consensus and EPS Surprise | Watts Water Technologies, Inc. Quote
Regionally, organic sales dipped 1% in the Americas. It was flat in Europe and improved 2% in APMEA. The Americas sales were affected by lower heating and hot water product sales, and headwinds in the retail sector and specialty sectors. In Europe, growth in drains and electronics products was offset by a decline in water and plumbing products. APMEA's improvement was driven by growth in China.
Cost and Margins
Cost of sales edged down 0.6% year over year to $221.8 million. Gross profit increased 4% to $156.7 million. Gross margin in the reported quarter expanded 80 basis points (bps) to 41.4%. Selling, general and administrative expenses went down to $110.2 million from $110.5 million in the prior-year quarter.
Adjusted operating profit went up 7.3% to $47.3 million in the reported quarter. Adjusted operating margin advanced 60 bps to 12.5%.
Segment Performance
Americas: Net sales climbed 4.6% to $250.5 million in the reported quarter. Adjusted operating profit increased 4.8% to $41.4 million.
Europe: Net sales declined 3% year over year to $110.7 million. The segment reported adjusted operating profit of $13 million compared to $12.8 million recorded in the year-ago quarter.
APMEA: Net sales remained flat year over year at $17.3 million. Adjusted operating profit surged 37.5% to $2.2 million from $1.6 million in the prior-year quarter.
Financial Performance
Watts Water had cash and cash equivalents of $217.5 million at the end of second-quarter 2017 compared with $338.4 million at the end of 2016. The company recorded cash from operations of $9 million for the six-month period ended Jul 2, 2017, compared with $7.8 million recorded in the comparable period last year.
Watts Water repurchased 73,000 shares of Class A common stock for $4.5 million during the quarter.
Share Price Performance
In the last one year, Watts Water has underperformed the industry with respect to price performance. The stock gained around 6.52%, while the industry recorded growth of 19.67% over the same time frame.
Zacks Rank and Key Picks
Watts Water currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Changyou.com Limited CYOU and Entegris, Inc. ENTG . All three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has expected long-term growth rate of 18.75%.
Changyou.com has expected long-term growth rate of 20.32%.
Entegris has expected long-term growth rate of 10.00%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Entegris, Inc. (ENTG): Free Stock Analysis Report
Changyou.com Limited (CYOU): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Changyou.com Limited CYOU and Entegris, Inc. ENTG . Click to get this free report Entegris, Inc. (ENTG): Free Stock Analysis Report Changyou.com Limited (CYOU): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report To read this article on Zacks.com click here. Segment Performance Americas: Net sales climbed 4.6% to $250.5 million in the reported quarter.
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Click to get this free report Entegris, Inc. (ENTG): Free Stock Analysis Report Changyou.com Limited (CYOU): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Changyou.com Limited CYOU and Entegris, Inc. ENTG . On a reported basis, including special items, Watts Water's earnings were 79 cents per share in the quarter, down 5% year over year from 83 cents recorded in the year-ago quarter.
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Click to get this free report Entegris, Inc. (ENTG): Free Stock Analysis Report Changyou.com Limited (CYOU): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Changyou.com Limited CYOU and Entegris, Inc. ENTG . Watts Water Technologies, Inc.WTS reported second-quarter 2017 adjusted earnings of 83 cents per share, up 11% year over year, primarily on the back of operational improvement, driven by productivity and restructuring initiatives.
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Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Changyou.com Limited CYOU and Entegris, Inc. ENTG . Click to get this free report Entegris, Inc. (ENTG): Free Stock Analysis Report Changyou.com Limited (CYOU): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report To read this article on Zacks.com click here. Watts Water Technologies, Inc.WTS reported second-quarter 2017 adjusted earnings of 83 cents per share, up 11% year over year, primarily on the back of operational improvement, driven by productivity and restructuring initiatives.
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2017-08-03 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Applied Optoelectronics, SSAB AB, xG Technology, Tosoh and KEMET
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AAOI
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-applied-optoelectronics-ssab-ab-xg-technology-tosoh-and
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For Immediate Release
Chicago, IL - August 03, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI- Free Report ), SSAB AB (OTCMKTS: SSAAY- Free Report ), xG Technology, Inc. (NASDAQ: XGTI- Free Report ), Tosoh Corporation (OTCMKTS: TOSCF- Free Report ) and KEMET Corporation (NYSE: KEM- Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
5 Best-Performing Stocks of July
Markets finished with strong gains garnered over a month which featured stellar earnings releases. Tech stocks overcame overvaluation fears over most of this period. However, profit taking and portfolio reshuffling toward the latter half of July meant that investors had to give up on some of these windfall gains. Most economic data released during this period was encouraging even as the Fed refrained from raising rates. On the flip side, attempts to push through a new healthcare law failed, casting aspersions on the Trump administration's ability to implement its pro-growth agenda.
July's Performance
For the month, the Dow, the S&P 500 and the Nasdaq increased by 2.5%, 1.9% and 3.4%, respectively. The Dow's great run was supported by excellent second-quarter earnings released during the month. Leading companies which posted better-than-expected earnings include the likes of AT&T, McDonalds, Boeing, Verizon, Facebook and Caterpillar.
However, the Nasdaq and the S&P 500 lost out on some of the gains made earlier in the month. Tech stocks initially gained on strong tech earnings expectations which were expected to justify high valuations for the sector. Gradually, investors took profits off the table by selling off tech stocks and this weighed on the broader markets, curbing gains for these two benchmarks.
Also, the Trump administration's inability to repeal Obamacare hurt investor sentiment. Following this development, market watchers lost their faith in Trump's ability to bring about tax reforms and increasing spending on infrastructural growth among other items on his pro-growth agenda. Moreover, the Fed's call to leave rates unchanged aided rate-sensitive industries and helped in broad-based gains.
Bullish Domestic Data
The majority of the economic data released in July indicated that the economy was on a firm footing. The ISM Manufacturing Index increased to 57.8 while the ISM Services Index increased to 57.4 in June. Industrial production moved up 0.4% in June. Notably, durable orders rose by 6.5% in June, which represents the largest increase since Jul 2014. Also, the Leading Indicators Index increased by 0.6%.
On the negative side, factory orders declined by 0.8% in May while retail sales slipped 0.2%. CPI remained unchanged in June while core CPI gained 0.1%. PPI and core PPI gained 0.1% each.
GDP Rises in Q2
As per the advance estimate released by the Bureau of Economic Analysis on Thursday, the real gross domestic product (GDP) increased at an annual rate of 2.6% in the first quarter of 2017. This was higher than analysts' estimates of an increase of 2.5%. Further, it is nearly double the downwardly revised 1.2% pace of growth recorded in the first quarter.
A rebound in consumer spending helped boost overall economic growth. Consumer outlays grew 2.8% in the second quarter as Americans spent more on healthcare, groceries and clothes. Spending rebounded during the quarter, buoyed by an uptick in household finances, in turn powered by a buoyant labor market. Disposable income adjusted for inflation saw the best back-to-back quarters this year since the first half of 2015. (Read: US GDP Crosses $19TN for the First Time: 5 Best Gainers )
Housing Sector Improves
Overall, data on the housing sector was bullish in nature. Housing starts increased by 8.3% from May. This represents a 2.1% annual increase, the highest recorded in four months. Building permits also increased, by 7.4%. Pending home sales increased by 1.5% in June, ending three successive months of losses. New home sales increased by 0.8% in June, representing the second successive month of gains.
On the negative side, existing home sales lost 1.8% in June, following a record spike in home prices. More significantly, the NAHB Housing Market index lost 2 points to touch 64 in July. This is the lowest level recorded since Nov 2016. A spike in building material prices, particularly lumber was believed to be responsible for the decline.
Job Additions Rise, Unemployment Inches Up
According to the U.S. Bureau of Labor Statistics the U.S. economy added 222,000 jobs in June, much higher than the consensus estimate of 174,000. The addition of 222,000 jobs marked the second-biggest job gains of the year.
Meanwhile, unemployment rate increased marginally from 4.3% to 4.4% in June, as more people came into the labor force searching for jobs. The "U-6", considered to be a broader measure of the unemployment as it includes those workers who are working part-time for purely economic reasons, increased to 8.6%.
Payrolls data also showed that average hourly wages increased 0.2% to $26.25 against the consensus estimate of a rise of 0.3%. Hourly pay has experienced an increase of 2.5% over the last twelve months. Additionally, the labor force participation rate for June increased marginally to come in at 62.8%.
Earnings Expectations Power Tech Rebound, Volatility Persists
Tech shares began to rebound early in the month, with the Technology Select Sector SPDR (XLK) advancing by 1.2% on Jul 7. Investors regained their faith in tech shares after the sector suffered several setbacks following concerns over exorbitant valuations. Powering these gains were expectations of a stellar earnings show from big tech names. Market watchers believe that such a strong performance would justify the valuation levels of tech stocks.
Ultimately, Intel, Microsoft and Facebook's earnings surpassed estimates and delighted investors. In contrast, Amazon.com posted a disappointing performance. As of Jul 28, we have Q2 results from 66.1% of the technology sector's total market cap in the S&P 500 index. Total earnings for these Technology companies are up +18.8% from the same period last year on +8.4% higher revenues, with 87.1% beating EPS estimates and 87.1% beating revenue estimates.
Consequently, the Technology Select Sector SPDR is up 4.5% and leads gains for the S&P 500's sectors. However, overvaluation concerns have returned to haunt tech stocks on occasion, raising volatility levels for the sector.
Q2 Earnings Likely to Set New Record
The Q2 earnings season, which has crossed the half-way mark already, reconfirms the positive earnings picture that emerged as a result of the preceding reporting cycle. With results from 286 S&P 500 members out as of Jul 28, total earnings are up +11.3% from the same period last year on +6.1% higher revenues, with 74.5% beating EPS estimates and 69.2% beating revenue estimates.
Total Q2 earnings for the index are currently expected to be up +9.2% from the same period last year on +5.0% higher revenues. At the start of the quarter, the expectation was for earnings growth of +7.9%, which came down as the quarter unfolded, reaching as low as +5.6% just ahead of the start of the reporting season.
Since plenty of results are still to come, the actual Q2 earnings growth could very well go above +10%, which will follow the +13.3% earnings growth in the preceding quarter. The deceleration in Q2 earnings growth notwithstanding, the quarter's earnings tally is on track to reach a new all-time quarterly record, surpassing the 2016 Q4 level, as you can see in the chart below. (Read: Q2 Earnings Season Past the Halfway Mark )
FOMC Minutes
Minutes of June 13-14 Federal Open Market Committee meeting were released during the first week of the month. Minutes showed that "several" officials supported paring back of Fed's $4 trillion-plus bond portfolio within a "couple of months".
Meanwhile, several Fed officials raised concerns over the impact of Fed's policy measures on financial markets. Officials indicated willingness to hike key interest rates further this year despite recent soft readings on inflation. Even though inflation is still short of central bank's target of 2%, Fed officials believe inflation will reach its targeted level by 2018.
Fed Leaves Rates Unchanged
The Fed opted to leave interest rates unchanged at the end of its two-day policy meeting on Jul 26. The Fed maintained the benchmark lending rate and hinted that it will start trimming its $4.5 trillion balance sheet in "relatively soon". Market watchers believe that such language indicates that the Fed will begin the process of unwinding in September. Additionally, the central bank's statement dropped the word "somewhat" from its June statement instead choosing to directly state that inflation continued to remain "below 2%".
This only represents a slight shift but is significant because it acknowledges a negative view on one of the Fed's key objectives. The Fed's recognition of low inflation levels bodes well for rate-sensitive sectors.
5 Star Performers for July
I ran a screen on Research Wizard for companies with the following parameters:
( Click here to sign up for a free trial to the Research Wizard today ):
Percentage price change over the last 4 weeks greater than or equal to 20%
Forward price-to-earnings ratio (P/E) for the current financial year (F1) less than or equal to 20. This picks out stocks that are good value choices
Expected earnings growth for the current financial year greater than or equal to 20%
Zacks Rank less than or equal to 2: This ascertains stocks that have shown above-average returns over the last 26 years.
(See the performance of Zacks' portfolios and strategies here: About Zacks Performance ).
Here are the top 5 stocks that made it through this screen: (As of July 31st, 2017)
Applied Optoelectronics, Inc. (NASDAQ: AAOI- Free Report ) designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers.
Price gain over the last 4 weeks = 58.8%
Applied Optoelectronics has a Zacks Rank #1 (Strong Buy) and its expected earnings growth for the current year is more than 100%. The stock's forward price-to-earnings ratio (P/E) for the current financial year (F1) is 19.69x.
SSAB AB (OTCMKTS: SSAAY- Free Report ) engages in the provision of steel and construction solutions and is based in Stockholm, Sweden.
Price gain over the last 4 weeks = 42.9%
SSAB has a Zacks Rank #2 (Buy) and its expected earnings growth for the current year is more than 100%. The stock has a P/E (F1) of 17.86x.
xG Technology, Inc. (NASDAQ: XGTI- Free Report ) is engaged in developing communications technologies for wireless networks
Price gain over the last 4 weeks = 40.5%
xG Technology has a P/E (F1) of 2.29x and its expected earnings growth for the current year is more than 100%. The stock holds a Zacks Rank #1.You can see the complete list of today's Zacks #1 Rank stocks here .
Tosoh Corporation (OTCMKTS: TOSCF- Free Report ) is a chemical company, based in Tokyo, Japan. Its primary products include ethylene, polyethylene, caustic soda, vinyl chloride and fine chemicals.
Price gain over the last 4 weeks = 36.1%
Expected earnings growth for current year = 14.4%
Tosoh Corp holds a Zacks Rank #1. The stock has a P/E (F1) of 9.66x.
KEMET Corporation (NYSE: KEM- Free Report ), along with its subsidiary companies, is the world's largest manufacturer of solid tantalum capacitors and one of the world's largest manufacturer of multilayer ceramic capacitors.
Price gain over the last 4 weeks = 32.9%
KEMET Corp holds a Zacks Rank #1 and its expected earnings growth for the current year is more than 100%. The stock has a P/E (F1) of 18.65x.
Will Gains Continue in August?
Investors can breathe easy now that tech stocks have mostly overcome overvaluation fears. Strong earnings performances from leading tech names have gone a long way toward dispelling such doubts. Meanwhile, the Fed's call to leave rates unchanged has also been welcomed by market watchers. Economic data has also mostly been bullish.
The only likely downside for stocks at this point is the Trump administration's failure to push through its pro-growth agenda. However, given the predictability of such reverses, investors are likely to price in this factor sooner rather than later. In any case, these developments have had little material impact on the month's proceedings. This is why gains for stocks are likely to continue in August, powered primarily by stellar second-quarter earnings numbers.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on AAOI - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
XG Technology, Inc (XGTI): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Kemet Corporation (KEM): Free Stock Analysis Report
SSAB SVENSKT (SSAAY): Free Stock Analysis Report
TOSOH CORP (TOSCF): 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.
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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Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI- Free Report ), SSAB AB (OTCMKTS: SSAAY- Free Report ), xG Technology, Inc. (NASDAQ: XGTI- Free Report ), Tosoh Corporation (OTCMKTS: TOSCF- Free Report ) and KEMET Corporation (NYSE: KEM- Free Report ). Here are the top 5 stocks that made it through this screen: (As of July 31st, 2017) Applied Optoelectronics, Inc. (NASDAQ: AAOI- Free Report ) designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Get the full Report on AAOI - FREE Get the full Report on SSAAY - FREE Get the full Report on XGTI - FREE Get the full Report on TOSCF - FREE Get the full Report on KEM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI- Free Report ), SSAB AB (OTCMKTS: SSAAY- Free Report ), xG Technology, Inc. (NASDAQ: XGTI- Free Report ), Tosoh Corporation (OTCMKTS: TOSCF- Free Report ) and KEMET Corporation (NYSE: KEM- Free Report ). Get the full Report on AAOI - FREE Get the full Report on SSAAY - FREE Get the full Report on XGTI - FREE Get the full Report on TOSCF - FREE Get the full Report on KEM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report XG Technology, Inc (XGTI): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report SSAB SVENSKT (SSAAY): Free Stock Analysis Report TOSOH CORP (TOSCF): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI- Free Report ), SSAB AB (OTCMKTS: SSAAY- Free Report ), xG Technology, Inc. (NASDAQ: XGTI- Free Report ), Tosoh Corporation (OTCMKTS: TOSCF- Free Report ) and KEMET Corporation (NYSE: KEM- Free Report ). Get the full Report on AAOI - FREE Get the full Report on SSAAY - FREE Get the full Report on XGTI - FREE Get the full Report on TOSCF - FREE Get the full Report on KEM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report XG Technology, Inc (XGTI): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report SSAB SVENSKT (SSAAY): Free Stock Analysis Report TOSOH CORP (TOSCF): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI- Free Report ), SSAB AB (OTCMKTS: SSAAY- Free Report ), xG Technology, Inc. (NASDAQ: XGTI- Free Report ), Tosoh Corporation (OTCMKTS: TOSCF- Free Report ) and KEMET Corporation (NYSE: KEM- Free Report ). Here are the top 5 stocks that made it through this screen: (As of July 31st, 2017) Applied Optoelectronics, Inc. (NASDAQ: AAOI- Free Report ) designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Get the full Report on AAOI - FREE Get the full Report on SSAAY - FREE Get the full Report on XGTI - FREE Get the full Report on TOSCF - FREE Get the full Report on KEM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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2017-08-03 00:00:00 UTC
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Applied Optoelectronics, Inc. (AAOI) Tumbles Even After Q2 Earnings Beat
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-inc-aaoi-tumbles-even-after-q2-earnings-beat-2017-08-03
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Applied Optoelectronics, Inc. (AAOI) just released its second-quarter fiscal 2017 financial results, posting earnings of $1.54 per share and revenues of $117.4 million. Currently, AAOI is down a whopping 29.38% to $69.20 per share in trading shortly after its earnings report was released.
Applied Optoelectronics:
Beat earnings estimates . The company posted earnings of $1.54 per share, defeating the Wall Street Consensus Estimate of $1.32 per share.
Beat revenue estimates . The company saw revenue figures of $117.4 million, which is up 112% year-over-year, beating our consensus estimate of $115.64 million.
Applied Optoelectronics is calling for revenues between $107 million and $115 million during the third-quarter of fiscal 2017. This range falls below our Zacks Consensus Estimate for the quarter of $122.93 million, which is a large part of the reason the stock lost over 25% after hours.
The company also projects Non-GAAP gross margin in the range of 43% to 44.5%, net income in the range of $26.6 million to $29.4 million, and EPS in the range of $1.30 to $1.43.
"Our record gross margin and earnings demonstrate the strength of our business model and deep manufacturing know-how. We believe our ability to leverage our vertical integration and proprietary manufacturing processes to drive greater efficiencies and shorten our production cycle times sets AOI apart from others in the industry," said President and CEO Dr. Thompson Lin.
Here's a graph that looks at AAOI's Price, Consensus and EPS Surprise:
Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise
Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote
Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The company's products are used in fiber optic communications equipment for FTTH, point-to-point telecom, datacom and access networks and systems supporting cable television, network infrastructure.
Check back later for our full analysis on AAOI's earnings report!
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without.
Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future. Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Applied Optoelectronics, Inc. (AAOI): 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.
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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Applied Optoelectronics, Inc. (AAOI) just released its second-quarter fiscal 2017 financial results, posting earnings of $1.54 per share and revenues of $117.4 million. Currently, AAOI is down a whopping 29.38% to $69.20 per share in trading shortly after its earnings report was released. Here's a graph that looks at AAOI's Price, Consensus and EPS Surprise: Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers.
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Here's a graph that looks at AAOI's Price, Consensus and EPS Surprise: Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc. (AAOI) just released its second-quarter fiscal 2017 financial results, posting earnings of $1.54 per share and revenues of $117.4 million.
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Applied Optoelectronics, Inc. (AAOI) just released its second-quarter fiscal 2017 financial results, posting earnings of $1.54 per share and revenues of $117.4 million. Here's a graph that looks at AAOI's Price, Consensus and EPS Surprise: Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Currently, AAOI is down a whopping 29.38% to $69.20 per share in trading shortly after its earnings report was released. Applied Optoelectronics, Inc. (AAOI) just released its second-quarter fiscal 2017 financial results, posting earnings of $1.54 per share and revenues of $117.4 million. Here's a graph that looks at AAOI's Price, Consensus and EPS Surprise: Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers.
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2017-08-03 00:00:00 UTC
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After Hours Most Active for Aug 3, 2017 : NBR, SBLK, FCX, BAC, HPQ, WFC, JBLU, G, AAOI, QQQ, MU, MSFT
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AAOI
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https://www.nasdaq.com/articles/after-hours-most-active-aug-3-2017-nbr-sblk-fcx-bac-hpq-wfc-jblu-g-aaoi-qqq-mu-msft-2017
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The NASDAQ 100 After Hours Indicator is down -1.04 to 5,890.16. The total After hours volume is currently 40,597,207 shares traded.
The following are the most active stocks for the after hours session :
Nabors Industries Ltd. ( NBR ) is unchanged at $7.46, with 3,761,075 shares traded. As reported by Zacks, the current mean recommendation for NBR is in the "buy range".
Star Bulk Carriers Corp. ( SBLK ) is -0.37 at $9.60, with 3,065,980 shares traded.SBLK is scheduled to provide an earnings report on 8/8/2017, for the fiscal quarter ending Jun2017. The consensus earnings per share forecast is -0.1 per share, which represents a -73 percent increase over the EPS one Year Ago
Freeport-McMoran, Inc. ( FCX ) is +0.02 at $14.39, with 2,436,936 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2018. The consensus EPS forecast is $0.38. FCX's current last sale is 110.69% of the target price of $13.
Bank of America Corporation ( BAC ) is -0.04 at $24.33, with 2,253,068 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2017. The consensus EPS forecast is $0.47. BAC's current last sale is 93.58% of the target price of $26.
HP Inc. ( HPQ ) is unchanged at $19.36, with 2,060,452 shares traded. HPQ's current last sale is 96.8% of the target price of $20.
Wells Fargo & Company ( WFC ) is -0.09 at $53.31, with 1,881,048 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2017. The consensus EPS forecast is $1.05. WFC's current last sale is 93.53% of the target price of $57.
JetBlue Airways Corporation ( JBLU ) is unchanged at $22.13, with 1,505,630 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2017. The consensus EPS forecast is $0.63. JBLU's current last sale is 79.04% of the target price of $28.
Genpact Limited ( G ) is unchanged at $29.99, with 1,418,058 shares traded., following a 52-week high recorded in today's regular session.
Applied Optoelectronics, Inc. ( AAOI ) is -28.39 at $69.60, with 1,411,040 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2017. The consensus EPS forecast is $1.28. Seeking Alpha Reports: Applied Optoelectronics: China Fears Loom Before Earnings
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.03 at $143.42, with 1,326,417 shares traded. This represents a 26.42% increase from its 52 Week Low.
Micron Technology, Inc. ( MU ) is -0.03 at $27.80, with 1,232,722 shares traded. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
Microsoft Corporation ( MSFT ) is +0.01 at $72.16, with 1,174,939 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2017. The consensus EPS forecast is $0.77. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Applied Optoelectronics, Inc. ( AAOI ) is -28.39 at $69.60, with 1,411,040 shares traded. The following are the most active stocks for the after hours session : Nabors Industries Ltd. ( NBR ) is unchanged at $7.46, with 3,761,075 shares traded. Star Bulk Carriers Corp. ( SBLK ) is -0.37 at $9.60, with 3,065,980 shares traded.SBLK is scheduled to provide an earnings report on 8/8/2017, for the fiscal quarter ending Jun2017.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2017. Applied Optoelectronics, Inc. ( AAOI ) is -28.39 at $69.60, with 1,411,040 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2017.
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Applied Optoelectronics, Inc. ( AAOI ) is -28.39 at $69.60, with 1,411,040 shares traded. The consensus earnings per share forecast is -0.1 per share, which represents a -73 percent increase over the EPS one Year Ago Freeport-McMoran, Inc. ( FCX ) is +0.02 at $14.39, with 2,436,936 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2017.
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Applied Optoelectronics, Inc. ( AAOI ) is -28.39 at $69.60, with 1,411,040 shares traded. The NASDAQ 100 After Hours Indicator is down -1.04 to 5,890.16. The following are the most active stocks for the after hours session : Nabors Industries Ltd. ( NBR ) is unchanged at $7.46, with 3,761,075 shares traded.
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a2a8f093-e73b-46ae-b152-40f3fe9466ee
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9854.0
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2017-08-02 00:00:00 UTC
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Paycom Software (PAYC) Q2 Earnings & Revenues Beat Estimates
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AAOI
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https://www.nasdaq.com/articles/paycom-software-payc-q2-earnings-revenues-beat-estimates-2017-08-02
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nan
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nan
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Paycom Software, Inc.PAYC reported better-than-expectedsecond-quarter 2017 results.
The company's adjusted earnings per share (including stock-based compensation) came in at 24 cents per share, which beat the Zacks Consensus Estimate of 13 cents. Also, reported earnings increased from 16 cents earned in the year-ago quarter.
On a non-GAAP basis earnings per share came in at 26 cents as compared with 21 cents reported in the year ago-quarter.
Further, Paycom Software's stock price history reveals that the company has not disappointed in a long time. In fact, shares of Paycom Software have risen a whopping 39.6% in the past one year, outperforming the industry 's increase of just 13.4%.
Quarter Details
Paycom Software reported revenues of $98.2 million, which increased 32.9% from the year-ago quarter. Revenues also beat the Zacks Consensus Estimate of $96 million. The year-over-over increase was driven by the addition of new clients, new business wins and product development initiatives.
Moreover, revenues were impacted positively by 33% increase in recurring revenues and approximately 35% increase in implementation and other revenues on a year-over-year basis.
The company's adjusted gross margin decreased 100 basis points (bps) on a year-over-year basis to 83%, primarily due to higher cost of sale.
Paycom Software's adjusted EBITDA increased 22.9% year over year to $27 .8 million. Adjusted operating margins during the quarter came in 23.3% as compared with 26.1% reported in the year-ago quarter. As a percentage of revenues, total administration expenses increased to 59.7% during the quarter from 58.3% reported in the year-ago period.
Non-GAAP net income came in at $15.2 million compared with $12.4 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
Paycom Software exited the second quarter with cash and cash equivalents of $68.1 million compared with $92.9 million in the previous quarter. Receivables were $1.8 million, flat quarter over quarter.
Paycom Software's balance sheet comprises long-term debt of $33.5 million compared with $30.4 million reported in the previous quarter. The company reported cash flow from operations of $55.3 million during six months ended Jun 30, 2017.
During the quarter, the company repurchased approximately 460k shares as part of previously extended $50 million share repurchase program.
Guidance
For third-quarter fiscal 2017, Paycom Software expects revenues in a range of $99-$101 million. The Zacks Consensus Estimate is pegged at $99.5 million. Adjusted EBITDA is expected to be approximately in a range of $21-$23 million.
Paycom Software updated fiscal 2017 guidance. The company now anticipates revenues in a range of $429.5-$431.5 million (previously $426-$428 million). The Zacks Consensus Estimate is pegged at $429.2 million. Adjusted EBITDA is now expected to be approximately in a range of $122.5-$124.5million (previously $117-$119 million).
Our Take
Paycom Softwarereported stellar second-quarter 2016 results and provided an encouraging third quarter and fiscal 2017 revenue guidance. Also, both the top line and the bottom line increased on a year-over-year basis.
Revenue growth seems to be steady and was positively impacted by higher recurring revenues and higher traction in cloud-based offerings. Better-than-expected demand for advanced human capital management and payroll software solutions during the reported quarter were the other positives.
We believe that the higher adoption of Paycom Software's Affordable Care Act ("ACA") dashboard application that tracks employee count, employee status and health care plan affordability will act as a tailwind in the long run. Further, Paycom Software might witness long-term growth by successfully cross-selling newer products to the existing client base, which will boost revenues, going forward.
Nevertheless, competition from companies like Paylocity Holding Corporation PCTY , Intuit Inc. INTU and Paychex, Inc. remains a headwind.
Currently, Paycom Software carries a Zacks Rank #3 (Hold). A better-ranked stock in the broader technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has a long-term EPS growth rate of 18.75%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Paycom Software, Inc. (PAYC): Free Stock Analysis Report
Paylocity Holding Corporation (PCTY): Free Stock Analysis Report
Intuit Inc. (INTU): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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A better-ranked stock in the broader technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Paycom Software, Inc. (PAYC): Free Stock Analysis Report Paylocity Holding Corporation (PCTY): Free Stock Analysis Report Intuit Inc. (INTU): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Further, Paycom Software might witness long-term growth by successfully cross-selling newer products to the existing client base, which will boost revenues, going forward.
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Click to get this free report Paycom Software, Inc. (PAYC): Free Stock Analysis Report Paylocity Holding Corporation (PCTY): Free Stock Analysis Report Intuit Inc. (INTU): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the broader technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Balance Sheet & Cash Flow Paycom Software exited the second quarter with cash and cash equivalents of $68.1 million compared with $92.9 million in the previous quarter.
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Click to get this free report Paycom Software, Inc. (PAYC): Free Stock Analysis Report Paylocity Holding Corporation (PCTY): Free Stock Analysis Report Intuit Inc. (INTU): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the broader technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Quarter Details Paycom Software reported revenues of $98.2 million, which increased 32.9% from the year-ago quarter.
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A better-ranked stock in the broader technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Paycom Software, Inc. (PAYC): Free Stock Analysis Report Paylocity Holding Corporation (PCTY): Free Stock Analysis Report Intuit Inc. (INTU): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Quarter Details Paycom Software reported revenues of $98.2 million, which increased 32.9% from the year-ago quarter.
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7b0182e9-9897-49bc-a1e5-2b93ae9f5c25
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9855.0
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2017-08-02 00:00:00 UTC
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Silicon Motion (SIMO) Misses Q2 Earnings, Sales Estimates
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AAOI
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https://www.nasdaq.com/articles/silicon-motion-simo-misses-q2-earnings-sales-estimates-2017-08-02
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nan
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nan
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Silicon Motion Technology CorporationSIMO reported second-quarter adjusted earnings of 71 cents per American Depositary Share (ADS), which declined 17.4% from the year-ago quarter but increased 1.4% sequentially.
Including stock-based compensation, earnings were 69 cents per share, which missed the Zacks Consensus Estimate of 73 cents.
Net sales decreased 5.7% year over year but increased 4.2% from the previous quarter to $132.7 million. The figure also missed the Zacks Consensus Estimate of $136 million. Revenues were also below the guided range of $134-$140 million.
Silicon Motion noted that NAND supply continues to remain tight, which affected module maker customers, hyperscale customers, and NAND flash partners in the quarter. This negatively impacted top-line growth. Management expects NAND supply constraints to impact second-half 2017 sales as well.
The company has gained 5.7% year-to-date, underperforming the 27.6% rally of the industry it belongs to.
Segment Sales
Sales from mobile storage products (which include Embedded Storage as well as Expandable Storage products) decreased 6% year over year but increased 4% quarter over quarter to $121.6 million. It constituted 92% of revenues.
Client SSD controller sales declined almost 10% sequentially. However, eMMC controller sales increased 5% sequentially.
SSD solutions sales increased over 50% driven by strong growth from Shannon hyperscale SSDs and Ferri industrial SSDs.
Mobile communications product (which include mobile TV SoCs and handset transceivers) sales were $10 million and represented 7% of the total revenue.
Silicon Motion Technology Corporation Price, Consensus and EPS Surprise
Silicon Motion Technology Corporation Price, Consensus and EPS Surprise | Silicon Motion Technology Corporation Quote
Operational Details
Non-GAAP gross margin expanded more than 30 basis points (bps) on a year-over-year basis but declined 220 bps sequentially to 48.7%. This was within management's guided range of 48.5-55.5%. The sequential decrease was primarily attributed to the difference between SSD pricing agreement with customers and subsequent NAND component price rise.
Operating margin decreased 260 bps on year-over-year basis and 250 bps sequentially to 23.9%, lower than the guided range of 25.5%-27.5%.
Liquidity & Cash Flow
Exiting the quarter, Silicon Motion's cash and cash equivalents were $303.6 million, up from $302.4 million as of Mar 31, 2017.
Guidance
For third-quarter 2017, Silicon Motion expects non-GAAP sales to be in the range of $122-$129 million, reflecting 3%-8% decline on a sequential basis.
Non-GAAP gross margin is anticipated within 45%-47%, reflecting higher NAND costs. Moreover, operating margin is projected in the range of 19%-21% for third-quarter 2017. Operating expenses are anticipated to be similar to the figure reported in the first quarter.
For full-year 2017, Silicon Motion anticipates revenues to decrease 5-8% from 2016 to $512-$528 million.
For the full-year, client SSD controller is anticipated to be flat. Moreover, eMMC and SSDs solutions are also expected to be down.
For full-year 2017, non-GAAP gross margin is anticipated within 47.5%-49%, while operating margin is projected in the range of 22%-24%.
The disappointing guidance is based on the company's anticipation that NAND supply constraint will continue, which will hurt the company's top line as well as margin growth.
Zacks Rank & Key Picks
Currently, Silicon Motion carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2 (Buy).
Long-term earnings growth rates for Alibaba Group, Applied Optoelectronics and Symantec are projected to be 28.9%, 18.7% and 10.3%, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
See these stocks now>>
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
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Symantec Corporation (SYMC): Free Stock Analysis Report
Silicon Motion Technology Corporation (SIMO): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2 (Buy). Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Silicon Motion Technology Corporation (SIMO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Silicon Motion Technology CorporationSIMO reported second-quarter adjusted earnings of 71 cents per American Depositary Share (ADS), which declined 17.4% from the year-ago quarter but increased 1.4% sequentially.
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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2 (Buy). Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Silicon Motion Technology Corporation (SIMO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Silicon Motion Technology Corporation Price, Consensus and EPS Surprise Silicon Motion Technology Corporation Price, Consensus and EPS Surprise | Silicon Motion Technology Corporation Quote Operational Details Non-GAAP gross margin expanded more than 30 basis points (bps) on a year-over-year basis but declined 220 bps sequentially to 48.7%.
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Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Silicon Motion Technology Corporation (SIMO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2 (Buy). Segment Sales Sales from mobile storage products (which include Embedded Storage as well as Expandable Storage products) decreased 6% year over year but increased 4% quarter over quarter to $121.6 million.
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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2 (Buy). Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Silicon Motion Technology Corporation (SIMO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Guidance For third-quarter 2017, Silicon Motion expects non-GAAP sales to be in the range of $122-$129 million, reflecting 3%-8% decline on a sequential basis.
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3c747924-b974-426e-a956-95a9927974b2
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9856.0
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2017-08-02 00:00:00 UTC
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Insperity (NSP) Beats Q2 Earnings & Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/insperity-nsp-beats-q2-earnings-revenue-estimates-2017-08-02
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nan
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nan
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Insperity, Inc.NSP reported impressive second-quarter 2017 results with both earnings and revenues exceeding expectations. Adjusted diluted earnings of 66 cents per share surpassed the Zacks Consensus Estimate of 53 cents and increased 83.3% over the year-ago quarter.
Revenues of $795.6 million increased 12.5% on a year-over-year basis and topped the Zacks Consensus Estimate of $779.2 million. The year-over-year growth was driven by 10% increase in the average number of paid worksite employees. Revenues per worksite employee per month were up 2% to $1,471.
We note that shares of Insperity have risen 26.2% on a year-to-date basis, significantly outperforming the industry 's gain of meager 3.9%.
Quarter Details
Insperity's gross margin in the quarter was up 40 basis points (bps) from the year-ago quarter to 16.4%.
Adjusted EBITDA increased 30.3% year over year to $33.3 million, which came ahead of management's guided range of $27-$29 million. EBITDA per worksite employee per month increased 23.8% in the quarter to $52.
The company's operating expenses increased 10.7% year over year to $107.6 million due to increase in the average number of trained business performance advisors, and continuing investments in the company's technology infrastructure, security and development.
Insperity exited the quarter with cash, cash equivalents and marketable securities of $243.8 million compared with $287.9 million as on Dec 31, 2016.
During the second quarter, Insperity repurchased 211,335 shares at a cost of $16.2 million and increased quarterly dividend payout rate by 20%. It bought back 325,903 shares for $25.5 million and paid dividends totaling $11.6 million in the first six months of 2017.
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. Price, Consensus and EPS Surprise | Insperity, Inc. Quote
Guidance
Insperity also provided outlook for the third-quarter and full year 2017.
For third-quarter 2017, Insperity projects adjusted earnings in a range of 94 cents to $1 per share. Adjusted EBITDA is projected in the range of $37.5-$39.5 million and average worksite employees (WSEs) are expected in the range of 187,500 to 188,300, representing growth of 11-11.5%.
For full-year 2017, the company projects adjusted earnings of $4.47-$4.6 per share and adjusted EBITDA in a range of $169-$173 million. Average WSEs are anticipated to be in the 184,000-186,000 bracket, representing growth of 11-12%.
Our Take
We believe Insperity is well placed to benefit from the booming professional employer organization (PEO) industry. Management claims that its flagship co-employment solution, Insperity Workforce Optimization, has been the most comprehensive business service in the marketplace for many years.
Moreover, improved client retention, diversified product portfolio, growth in worksite employees and strength in ancillary products are the other positives. Further, management stated that competitive positioning, gross profit contribution, and operational excellence would drive future growth.
However despite increasing average worksite employees, a sluggish global macro environment increases the risk of headcount reductions at client companies. Moreover, an increase in health care costs does not bode well for the company as it is one of the major components of operating expenses. Furthermore, intensifying competition remains a major concern.
Presently, Insperity carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . All these three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank Stocks here.
In the trailing four quarters, Applied Optoelectronics, Kemet and Vishay delivered average positive earnings surprises of 118.33%, 72.92% and 1.86%, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Kemet Corporation (KEM): Free Stock Analysis Report
Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report
Insperity, Inc. (NSP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Stocks to Consider Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report Insperity, Inc. (NSP): Free Stock Analysis Report To read this article on Zacks.com click here. Management claims that its flagship co-employment solution, Insperity Workforce Optimization, has been the most comprehensive business service in the marketplace for many years.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report Insperity, Inc. (NSP): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . Insperity, Inc. Price, Consensus and EPS Surprise Insperity, Inc. Price, Consensus and EPS Surprise | Insperity, Inc. Quote Guidance Insperity also provided outlook for the third-quarter and full year 2017.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report Insperity, Inc. (NSP): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . The company's operating expenses increased 10.7% year over year to $107.6 million due to increase in the average number of trained business performance advisors, and continuing investments in the company's technology infrastructure, security and development.
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Stocks to Consider Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report Insperity, Inc. (NSP): Free Stock Analysis Report To read this article on Zacks.com click here. Adjusted EBITDA increased 30.3% year over year to $33.3 million, which came ahead of management's guided range of $27-$29 million.
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fdc6bd1b-cf60-4c74-8f4f-d576ac482ac9
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9857.0
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2017-08-02 00:00:00 UTC
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Bartosiak: Trading Applied Optoelectronics' (AAOI) Earnings with Options
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AAOI
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https://www.nasdaq.com/articles/bartosiak-trading-applied-optoelectronics-aaoi-earnings-options-2017-08-02
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nan
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nan
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On Thursday, August 3rd, Applied Optoelectronics (AAOI) will release its second quarter earnings results after the bell. The company is a Zacks Rank 1 (Strong Buy), and have a Value, Growth, and Momentum score of C.
Dave will look at Applied Optoelectronics past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.
Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Delta ahead of earnings.
Applied Optoelectronics in Focus
Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The company's products are used in fiber optic communications equipment for FTTH, point-to-point telecom, datacom and access networks and systems supporting cable television, network infrastructure. Applied Optoelectronics, Inc. is headquartered in Sugar Land, Texas.
Applied Optoelectronics is expected to report earnings at $1.28 per share . They reported earnings last quarter at $1.02 per share, beating the Zacks Consensus Estimate by $0.07 last quarter. Applied Optoelectronics has an average surprise of 118.33% over the last 4 quarters.
Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise
Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote
Bottom Line
How should investors play Applied Optoelectronics ahead of their earnings report? For insights on the best options trades, then tune in at 1:00pm CST today to see David's thoughts.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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On Thursday, August 3rd, Applied Optoelectronics (AAOI) will release its second quarter earnings results after the bell. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Delta ahead of earnings.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. On Thursday, August 3rd, Applied Optoelectronics (AAOI) will release its second quarter earnings results after the bell. Applied Optoelectronics in Focus Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers.
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On Thursday, August 3rd, Applied Optoelectronics (AAOI) will release its second quarter earnings results after the bell. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company is a Zacks Rank 1 (Strong Buy), and have a Value, Growth, and Momentum score of C. Dave will look at Applied Optoelectronics past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.
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On Thursday, August 3rd, Applied Optoelectronics (AAOI) will release its second quarter earnings results after the bell. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics is expected to report earnings at $1.28 per share .
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da17e71c-e754-4cfa-b86d-04f4f2cdd4cf
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9858.0
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2017-08-02 00:00:00 UTC
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Should You Buy Applied Optoelectronics Inc (AAOI) Stock Before Earnings?
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AAOI
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https://www.nasdaq.com/articles/should-you-buy-applied-optoelectronics-inc-aaoi-stock-before-earnings-2017-08-02
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Applied Optoelectronics Inc (NASDAQ: AAOI ) isn't a household name, yet. But the Sugar Land, Texas-based semiconductor firm certainly has delivered sweet returns for its loyal shareholders. Over the past year, shares have run up more than 700%, moving from around $10 to $100 today.
Source: Shutterstock
That's an incredible result. However, with earnings coming up shortly, should shareholders be nervous? Or are further new highs on the way? Let's dive into the pros and cons for this high-flying stock.
AAOI Stock Cons
Key Customer Risk : It's important to understand that Applied Opto has a concentrated revenue base. Hugely concentrated, in fact. According to its latest annual filing, the company's top 10 customers account for an incredible 95.5% of its sales.
It gets even more amazing. Amazon.com, Inc. (NASDAQ: AMZN ) alone made up 55% of AAOI's revenues in 2016. Microsoft Corporation (NASDAQ: MSFT ) delivered another 18% of the company's sales. Thus, just these two firms makes up 73% of Applied Opto's business. Needless to say, if either defects to a competitor or demands price concessions, it could be devastating for the price of AAOI stock. It's worth considering that the company generally doesn't have long-term contracts with its key customers, thus exposing it to further risk.
Sizzling Stock : As mentioned, AAOI stock is up from the low teens to $100 in a short period of time. Some sort of profit-taking would be far from unusual, given the tremendous gains. Going into earnings, there is real risk to the downside if the earnings number or forward guidance isn't all that strong.
10 Small-Cap Stocks That Look Like Hidden Gems
In particular, investors should use caution, since key customer Amazon delivered mediocre earnings last week. And the Amazon Web Services results - what matters most to Applied Opto - didn't look that strong either. Microsoft, AAOI's other key customer, put in a mixed earnings result. However to its credit, its Azure division is still performing strongly. Regardless, given the run in AAOI stock, investors will likely lock in profits unless this quarter delivers sensational results. Just since the beginning of July, investors have bid AAOI up from $60 to $100. There is a lot of positive sentiment baked into the price.
China Risk : Applied Opto generates 22% of its revenues, a number that has been rising in recent years, from products that are manufactured in China. This comes with several risks.
For one thing, the market for optical equipment has weakened recently in China. So far, AAOI stock hasn't been hit, since it has its key U.S. clients that generate the vast majority of revenues. However, a prolonged slowdown in China would likely hit the whole sector. Additionally, numerous U.S. firms have had issues over the years protecting their intellectual property in China when manufacturing a substantial portion of their products there.
AAOI Stock Pros
Incredible Growth : Applied Opto has enjoyed jaw-dropping growth rates over the past year. Over the past 12 months, revenues have increased 33%, EBITDA is up 155%, operating income has more than tripled, and EPS is up more than 300%. EPS in particular went from just 65 cents in 2015 to 1.76 per share last year, and is already up to 2.81 per share over the trailing 12 months.
This hyper-growth comes as a result of the surge in demand for hyperscale data centers. This category of cutting-edge network facility barely existed last year, but is projected to grow into a tens of billions of dollars market over the next few years. Forget AAOI's past as a CATV player, the company's hyperscale data ambitions could have a long time left to play out.
Increasing Growth Rate : Not only is AAOI blowing away analyst's estimates, things appear to be accelerating to the upside. Both Amazon and Microsoft are investing heavily in the area, and the company has suggested that there will be a third 10%-plus portion of revenues customer this year. That rising customer could well be Facebook Inc (NASDAQ: FB ).
AAOI has marquee customers because its products are central to the current digital push. Everyone's data is going increasingly into the cloud, and AAOI has the networking equipment necessary to fuel this inexorable growth. Sure, competition will arrive, and margins will fall. But there are few signs this is happening yet; analysts keep raising their estimates for AAOI as it ramps up production further and further.
Not That Expensive : For a high-flying stock, you'd normally expect a nosebleed price-to-earnings ratio. However, this isn't the case with AAOI stock. Applied Opto trades at 35x trailing earnings and 18x forward earnings. For a company that set to literally double its EPS over the next 12 months, 17x forward earnings seems very cheap.
Why Royal Dutch Shell plc (ADR) (RDS.A) Stock Is the Best Energy Choice
Some of this discount reflects investors' skepticism toward the hyperscale data center story. We've seen past fiber optic cycles turn out badly. These are, admittedly, very cyclical stocks. Traditionally, the sector runs up when telco companies roll out next-generation networks, and then sell off once the bulk of the upgrade cycle has ended. With these data centers, however, demand is likely to be more consistent; the growth at companies such as Amazon and Microsoft is likely to be much more sequential. While the gold rush for Applied Opto will eventually end, analysts' forecasts for 2018 and 2019 might be quite a bit too low; this run appears to have sustained momentum.
Verdict
There is undeniably a great deal of risk in AAOI stock heading into earnings. Any stock that is up more than 50% in a month can plummet if earnings miss analyst estimates. It might be wise to lighten up heading into the report.
That said, all signs point to the business continuing to ramp up. Guidance, production levels and key customers all seem to be giving off positive signs. With short sellers betting against a gigantic 59% of AAOI stock's float, the potential is there for a huge squeeze should earnings continue their stellar run. Sure, AAOI stock is up huge over the past year, but the rally could carry on even farther over the next quarter.
At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek.
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The post Should You Buy Applied Optoelectronics Inc (AAOI) Stock Before Earnings? appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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With short sellers betting against a gigantic 59% of AAOI stock's float, the potential is there for a huge squeeze should earnings continue their stellar run. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) isn't a household name, yet. AAOI Stock Cons Key Customer Risk : It's important to understand that Applied Opto has a concentrated revenue base.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) isn't a household name, yet. AAOI Stock Pros Incredible Growth : Applied Opto has enjoyed jaw-dropping growth rates over the past year. AAOI Stock Cons Key Customer Risk : It's important to understand that Applied Opto has a concentrated revenue base.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) isn't a household name, yet. AAOI Stock Cons Key Customer Risk : It's important to understand that Applied Opto has a concentrated revenue base. More From InvestorPlace 7 Explosive Healthcare Stocks to Buy Now 7 Small-Cap Stocks With Big-League Potential Facebook Inc (FB) Stock Is Impervious to Your Ad Load Concerns The post Should You Buy Applied Optoelectronics Inc (AAOI) Stock Before Earnings?
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AAOI Stock Cons Key Customer Risk : It's important to understand that Applied Opto has a concentrated revenue base. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) isn't a household name, yet. Amazon.com, Inc. (NASDAQ: AMZN ) alone made up 55% of AAOI's revenues in 2016.
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ea6bb3d0-9f90-4fa5-aa7b-2e2d33d15a12
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9859.0
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2017-08-02 00:00:00 UTC
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Fiserv's (FISV) Q2 Earnings and Revenues Miss Estimates
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AAOI
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https://www.nasdaq.com/articles/fiservs-fisv-q2-earnings-and-revenues-miss-estimates-2017-08-02
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nan
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nan
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Fiserv Inc. 's FISV second-quarter 2017 adjusted earnings from continuing operations of $1.19 per share missed the Zacks Consensus Estimate of $1.23. However, it improved 10.2% from the year-ago quarter.
Total revenue increased approximately 1.7% year over year to $1.39 billion but missed the Zacks Consensus Estimate of $1.42 billion. Adjusted revenues grew 2.2% year over year to $1.32 billion.
Segment-wise, Payments and Industry Products adjusted revenues increased 3.3% year over year to $716 million. Financial Institution Services adjusted revenues were up 1.6% year over year to $623 million.
Internal revenues rose 3% owing to 3% growth each in Payments and Financial segments.
Source-wise, total Processing and services revenues increased 2.3% on a year-over-year basis to $1.19 billion while Product revenues decreased 2% year over year to $200 million.
Lower-than-expected results pulled the company's shares down about 2.5% in the after-hour trading session. Notably, shares of Fiserv have gained 21.7% year to date, slightly underperforming the industry's 23.5% rally.
Margins
Adjusted operating income increased 2.7% from the year-ago quarter to $424 million. The company's adjusted operating margin of 32% increased 10 basis points (bps) on a year-over-year basis.
Other Financial Details
As of Jun 30, 2017, Fiserv had cash and cash equivalents of $299 million compared with $308 million as on Mar 31, 2017. Long-term debt at quarter-end was $4.64 billion.
Fiserv's cash from operating activities for the six months ended Jun 30, 2017 was $691 million compared with $687 million in the year-ago period. The company's free cash flow increased to $555 million from $442 million in the year-ago period.
Fiserv bought back 2.5 million shares for $295 million in the quarter.
Guidance
The company reaffirmed its outlook for 2017. Fiserv still expects adjusted earnings per share to come in the range of $5.03-$5.17, representing growth of 14%-17% year over year.
Adjusted internal revenue growth expectation was maintained in the range of 4%-5%.
Fiserv, Inc. Price, Consensus and EPS Surprise
Fiserv, Inc. Price, Consensus and EPS Surprise | Fiserv, Inc. Quote
Our Take
Fiserv commands a leading position in the financial and payment solutions business backed by a broad customer base and key contract wins. Additionally, the strong user base of Mobiliti ASP remains a major growth driver. The company remains focused on expanding its product portfolio. Product-oriented acquisitions are leading to a steady flow of customers.
Investment in digital-oriented technologies is likely to improve its competitiveness. Fiserv's digital banking solutions are gaining momentum among the banks and credit unions. The company is also rapidly expanding in the overseas markets.
Fiserv expects revenues from base solutions like DNA and Agiliti to drive growth. Its new five-year cost cutting program is also likely to prove beneficial. In the second quarter, Fiserv added six DNA clients, four among which have over $1 billion in assets, and expects to add at least 10 more in 2017. Mobiliti ASP subscribers grew 30% to more than 6 million. The company's $40 million savings in the first half of the year was driven by workforce optimization, progress in procurement and data center consolidation.
However, lower termination fees, EMV deferral and adverse foreign currency translations are negatively impacting the company's sales. Moreover, increasing regulations in the banking and financial services industry and intensifying competition from the likes of Equifax Inc. EFX , and Fidelity National Information Services, Inc. FIS remain concerns.
Zacks Rank & Stock to Consider
Fiserv carries Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , sporting a Zacks Rank #1.
Long-term earnings growth for Applied Optoelectronics is projected to be 18.75%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Equifax, Inc. (EFX): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report
Fiserv, Inc. (FISV): 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.
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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A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , sporting a Zacks Rank #1. Click to get this free report Equifax, Inc. (EFX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. The company's $40 million savings in the first half of the year was driven by workforce optimization, progress in procurement and data center consolidation.
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Click to get this free report Equifax, Inc. (EFX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , sporting a Zacks Rank #1. Total revenue increased approximately 1.7% year over year to $1.39 billion but missed the Zacks Consensus Estimate of $1.42 billion.
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Click to get this free report Equifax, Inc. (EFX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , sporting a Zacks Rank #1. Source-wise, total Processing and services revenues increased 2.3% on a year-over-year basis to $1.19 billion while Product revenues decreased 2% year over year to $200 million.
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A better-ranked stock in the broader technology sector is Applied Optoelectronics AAOI , sporting a Zacks Rank #1. Click to get this free report Equifax, Inc. (EFX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. Financial Institution Services adjusted revenues were up 1.6% year over year to $623 million.
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a2216700-238a-4122-923b-3eeb29c45ff7
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9860.0
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2017-08-02 00:00:00 UTC
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What is the Most Powerful Combination in Value Investing?
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AAOI
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https://www.nasdaq.com/articles/what-most-powerful-combination-value-investing-2017-08-02
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nan
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nan
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(0: 30 ) - Earning Season's Effect on Value Stocks
(2: 15 ) - Applied Optoelectronics: Rising Estimates
(5: 45 ) - Stock Screener: Zacks Rank #1 and P/E Under 20
(7: 15 ) - Tracey's Top Stock Picks
(14: 00 ) - Episode Roundup: Podcast@Zacks.com
Welcome to Episode #53 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
It's the middle of earnings season and many are complaining about the valuation of the stock markets (again).
Several of the major indexes continue to hit new all-time highs which has some investors fretting. But there are still value stocks out there despite stocks moving higher every month.
The Key for Value Investors
Most value investors look to one key metric to start their value stock search: The P/E ratio. Remember that the P/E is price divided by earnings.
During earnings season, we're getting new information about the "E", or earnings, in the P/E. For some companies, the "E" will dramatically rise.
If that company's stock is also rising, it may remain a value stock because the "E" is rising.
For value investors, a rising "E" is critical.
Why Rising Earnings Matter for Value Investors
An example of the importance of the rising "E" can be found with Applied OptoelectronicsAAOI . Tracey has covered it on prior podcasts because it was a value stock that was up over 100% in 2017.
How could its valuation still be attractive with that kind of stock move?
Ninety days ago, analysts believed Applied Opto would make just $3.76 a share this year. But the estimate has been slowly rising the last 3 months and now sits at $4.95.
Because of rising earnings estimates, Applied Opto has a forward P/E of 19.7. That's not much higher than the average of the S&P 500.
It would have a P/E of about 25 if the "E" wasn't exploding to the upside and had remained around $3.76.
The Most Powerful Combination
Value investors obviously want solid value fundamentals when buying a stock. But if they can also get rising earnings estimates at the same time, then something truly special may be going on there.
Tracey did a screen for stocks with P/Es under 20, a P/S ratio of 1 or under and that had a Zacks #1 (Strong Buy) rank, which indicates rising earnings estimates.
18 stocks came up in her screen so she whittled it down to these 3 top stocks.
3 Value Stocks with the Powerful Combination
1. First American Corporation FAF has a forward P/E of 14.1 and the full year estimate has jumped to $3.42 from $3.28 in the last 90 days. Don't overlook this title insurance company.
2. ManpowerGroup MAN is a worldwide staffing company. Shares sold off after its last earnings report BUT earnings estimates were also adjusted higher. That brought the stock back to value territory. It has a P/E of 15.9. Earnings are expected to be $6.73, up from $6.55 just 90 days ago.
3. LPL Financial (LPLA) is the largest independent brokerage firm in the United States with over 14,000 independent financial advisors. Over the last 3 months, the 2017 Zacks Consensus Estimate has jumped to $2.62 from $2.42. Earnings are expected to grow 23%. It has a P/S ratio of 1.o.
What else should you know about the powerful combination of rising earnings estimates and value investing?
Find out on this week's podcast.
Want more value investing insights from Tracey?
Value investors are a special breed of investor. They don't follow the herd.
If that is your style of investing, be sure to check out Tracey's weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.
The Value Investor portfolio holds between 20 and 25 value stocks for the long haul.
Click here to learn more>>>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
First American Corporation (The) (FAF): Free Stock Analysis Report
ManpowerGroup (MAN): 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.
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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Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied OptoelectronicsAAOI . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here. Ninety days ago, analysts believed Applied Opto would make just $3.76 a share this year.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here. Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied OptoelectronicsAAOI . (0: 30 ) - Earning Season's Effect on Value Stocks (2: 15 ) - Applied Optoelectronics: Rising Estimates (5: 45 ) - Stock Screener: Zacks Rank #1 and P/E Under 20 (7: 15 ) - Tracey's Top Stock Picks (14: 00 ) - Episode Roundup: Podcast@Zacks.com Welcome to Episode #53 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here. Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied OptoelectronicsAAOI . (0: 30 ) - Earning Season's Effect on Value Stocks (2: 15 ) - Applied Optoelectronics: Rising Estimates (5: 45 ) - Stock Screener: Zacks Rank #1 and P/E Under 20 (7: 15 ) - Tracey's Top Stock Picks (14: 00 ) - Episode Roundup: Podcast@Zacks.com Welcome to Episode #53 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
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Why Rising Earnings Matter for Value Investors An example of the importance of the rising "E" can be found with Applied OptoelectronicsAAOI . Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report ManpowerGroup (MAN): Free Stock Analysis Report To read this article on Zacks.com click here. (0: 30 ) - Earning Season's Effect on Value Stocks (2: 15 ) - Applied Optoelectronics: Rising Estimates (5: 45 ) - Stock Screener: Zacks Rank #1 and P/E Under 20 (7: 15 ) - Tracey's Top Stock Picks (14: 00 ) - Episode Roundup: Podcast@Zacks.com Welcome to Episode #53 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
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35079a7c-55c7-4bf1-bf7e-0eb35e5056a5
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9861.0
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2017-08-01 00:00:00 UTC
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Pandora (P) Q2 Loss Narrower than Expected, Revenues Beat
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AAOI
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https://www.nasdaq.com/articles/pandora-p-q2-loss-narrower-than-expected-revenues-beat-2017-08-01
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nan
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nan
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Pandora Media, Inc.P posted narrower-than-expected adjusted loss per share (including stock-based compensation but excluding one-time items) of 31 cents for second-quarter 2017. The Zacks Consensus Estimate was pegged at a loss of 39 cents per share.
Revenues increased 9.9% year over year to $376.8 million, surpassing the Zacks Consensus Estimate of $364.7 million.
Quarter Details
Revenue growth in second-quarter 2017 was driven by higher advertising revenues (73.8% of total revenues), which increased 4.9% from the year-ago quarter to $278.2 million. Subscription and other revenues (18.3%) increased 25% year over year to $68.9 million. Revenues from ticketing services (7.9%) grew 31% to $29.7 million.
Total listener hours fell 7.8% on a year-over-year basis to 5.22 billion in the quarter while the number of active listeners was 76 million.
Average revenue per paid subscriber (ARPU) was $4.82 in the quarter and licensing costs per paid subscriber (LPU) was $3.11.
Pandora's adjusted EBITDA loss was $54.3 million, compared with a loss of $25.1 million in the year-ago quarter.
Pandora Media, Inc. Price, Consensus and EPS Surprise
Pandora Media, Inc. Price, Consensus and EPS Surprise | Pandora Media, Inc. Quote
Balance Sheet & Cash Flow
Pandora exited the quarter with $227.6 million in cash and investments, up from $203 million at the end of the prior quarter. Net cash used in operating activities was $103,494 in the quarter compared with $45,474 in the prior quarter.
Guidance
Pandora provided guidance for the third quarter as well as for full-year 2017.
For third-quarter 2017, revenues are expected in the range of $370-$385 million, reflecting a 14% year-over-year growth rate at midpoint. The company expects adjusted EBITDA loss in the range of $5-$20 million.
The Zacks Consensus Estimate for the top and the bottom line is pegged at $399.9 million and loss of 22 cents per share, respectively.
For 2017, revenues are forecast in the range of $1.45-$1.5 billion.
The Zacks Consensus Estimate for the top and the bottom line is pegged at $1.54 billion and loss of $1.07 per share, respectively.
Zacks Rank and Share Price Movement
We note that Pandora's shares have decreased 31.9% in the past year, against the industry 's gain of 16%.
Stocks to Consider
Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . All these three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank Stocks here.
In the trailing four quarters, Applied Optoelectronics, Kemet and Vishay delivered average positive earnings surprises of 118.33%, 72.92% and 1.86%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker 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
Pandora Media, Inc. (P): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Kemet Corporation (KEM): Free Stock Analysis Report
Vishay Intertechnology, Inc. (VSH): 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.
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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Stocks to Consider Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . Click to get this free report Pandora Media, Inc. (P): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report To read this article on Zacks.com click here. Pandora Media, Inc.P posted narrower-than-expected adjusted loss per share (including stock-based compensation but excluding one-time items) of 31 cents for second-quarter 2017.
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Stocks to Consider Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . Click to get this free report Pandora Media, Inc. (P): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report To read this article on Zacks.com click here. Pandora Media, Inc. Price, Consensus and EPS Surprise Pandora Media, Inc. Price, Consensus and EPS Surprise | Pandora Media, Inc. Quote Balance Sheet & Cash Flow Pandora exited the quarter with $227.6 million in cash and investments, up from $203 million at the end of the prior quarter.
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Click to get this free report Pandora Media, Inc. (P): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . Revenues increased 9.9% year over year to $376.8 million, surpassing the Zacks Consensus Estimate of $364.7 million.
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Stocks to Consider Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and Vishay Intertechnology, Inc. VSH . Click to get this free report Pandora Media, Inc. (P): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues increased 9.9% year over year to $376.8 million, surpassing the Zacks Consensus Estimate of $364.7 million.
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4b237581-02c9-4c76-9428-bc25e0e0ad0d
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9862.0
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2017-08-01 00:00:00 UTC
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Pitney Bowes (PBI) Q2 Earnings Lag Estimates, Sales Down Y/Y
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AAOI
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https://www.nasdaq.com/articles/pitney-bowes-pbi-q2-earnings-lag-estimates-sales-down-y-y-2017-08-01
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nan
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nan
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In second-quarter 2017, Pitney BowesPBI reverted to its dismal earnings miss trend after posting a solitary earnings beat last quarter. The company's adjusted earnings of 33 cents per share missed the Zacks Consensus Estimate of 36 cents. Also, on a year-over-year basis, adjusted earnings fell 15.4%.
On a GAAP basis, the company reported earnings per share of 26 cents, down 7.1% compared with the year-ago figure. A rise in total costs, along with a drab revenue performance proved to be a drag on the earnings performance.
Inside the Headlines
Total revenue in the quarter was $821.4 million, down 1.7% year over year on a reported basis. Revenues were flat, when adjusted for currency impact.
Two of the company's three segments, namely, Small and Medium Business ("SMB") and Enterprise Business Solutions ("EBS"), declined year over year, proving a drag on the top-line performance.
On a reported basis, Small and Medium Business ("SMB") Solutions revenues dipped 3% year over year to $436.4 million. The tepid performance was due to softness in the North American Mailing business (down 1%) and International Mailing Business (down 11%). Lower recurring revenue streams and rental revenues led to the lackluster performance of the North American Mailing business. Additionally, decline in recurring revenues and poor equipment sales proved to be a drag on the International Mailing Business.
Enterprise Business Solutions ("EBS") revenues were down 4% year over year to $204.0 million. While Presort Services (up 2%) drove top-line growth of this segment, it was more than offset by the drab performance of the production mail business (down 11%). Lower sorter equipment sales and support service revenues weighed down on sales of the production mail business. Higher "Standard Class" mail volumes drove sales of this segment.
Digital Commerce Solutions reported 4% year-over-year growth in sales to $180.9 million, supported by strong Global e-commerce business (up 14%), and slightly offset by decline of Software business (down 4%). Robust volumes in the UK outbound marketplace and growth in domestic shipping volumes acted as tailwinds for the Global e-commerce business. Lower license revenues played a spoilsport for Software solutions sales.
Pitney Bowes Inc. Price, Consensus and EPS Surprise
Pitney Bowes Inc. Price, Consensus and EPS Surprise | Pitney Bowes Inc. Quote
Liquidity and Cash Flow
As of Jun 30, 2017, free cash flow was $18.4 million compared with $85.9 million as of Jun 30, 2016.
As of Jun 30, 2017, the company's cash and cash equivalents totaled $840.6 million compared with $764.5 million at the end of Dec 31, 2016. Long-term debt as of Mar 31, 2017, was $2,543.5 million, down from $2,750.4 million as of Dec 31, 2016.
Guidance
The company tweaked its guidance for full-year 2017. Currently, it expects 2017 adjusted earnings per share to lie in the range $1.70-$1.78 compared with the earlier guided range of $1.70-$1.85. Revenues, on a reported basis, are expected to see flat to 1% growth year over year compared with the previous guidance of 2% decline to 1% growth. Further, the company revised its free cash flow for 2017 to be in the range of $400-$430 million compared with the earlier range of $400-$460 million.
On a positive note, Pitney Bowes believes that new products and digital capabilities of SMB, expansion of the Presort Services network and robust increase in e-commerce volume will act as major catalysts, raising the top line for full-year 2017. Moreover, the company's focus on operational excellence will help it trim to costs and expenses, thus supplementing growth.
Our Take
Pitney Bowes reported dismal second-quarter 2017 results, with both top- and bottom-line misses. The company's restructuring actions were not sufficient to cushion it against the broader macroeconomic concerns, which have plagued its financials for quite some time now. Though the global ecommerce business continues to be a major profit churner, the prolonged softness in the SMB business remains a major concern.
In addition, escalating marketing expenses in relation to the ERP implementation program is likely to act as an overhang. Also, the Zacks Rank #3 (Hold) company expects incremental marketing expense in the ERP program, related to digital capabilities enhancement for entire 2017. We believe capital expenses associated with the ERP project will continue to inflate costs, thus hindering growth.
Stocks to Consider
Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . While Applied Materials and Red Hat sport a Zacks Rank #1 (Strong Buy), Applied Materials holds the same Zacks Rank #2 (Buy).
Applied Optoelectronics has a whopping average earnings surprise of 118.3% for the trailing four quarters, beating estimates all through. You can see the complete list of today's Zacks #1 Rank stocks here .
Red Hat, Inc. has a robust earnings surprise history, with an average positive surprise of 11.1%, driven by consecutive earnings beats over the trailing four quarters.
With four back-to-back beats, Applied Materials has an average positive surprise of 3.5% for the trailing four quarters.
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Red Hat, Inc. (RHT): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Pitney Bowes Inc. (PBI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): 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.
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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Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. On a positive note, Pitney Bowes believes that new products and digital capabilities of SMB, expansion of the Presort Services network and robust increase in e-commerce volume will act as major catalysts, raising the top line for full-year 2017.
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Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Two of the company's three segments, namely, Small and Medium Business ("SMB") and Enterprise Business Solutions ("EBS"), declined year over year, proving a drag on the top-line performance.
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Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Two of the company's three segments, namely, Small and Medium Business ("SMB") and Enterprise Business Solutions ("EBS"), declined year over year, proving a drag on the top-line performance.
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Click to get this free report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Enterprise Business Solutions ("EBS") revenues were down 4% year over year to $204.0 million.
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f7e9fa8e-8686-4c19-90ee-0ea8e1b0021e
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9863.0
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2017-08-01 00:00:00 UTC
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How Applied Optoelectronics, Inc. Stock Rose 58% in July
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AAOI
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https://www.nasdaq.com/articles/how-applied-optoelectronics-inc-stock-rose-58-july-2017-08-01
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nan
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nan
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What happened
Shares of Applied Optoelectronics (NASDAQ: AAOI) gained 58% in July 2017, according to data from S&P Global Market Intelligence . Yes, the stock gained 58% in a single month. That's not a typo.
So what
The maker of high-speed transceivers and other components for fiber-optic networking equipment was already on a massive roll at the start of July, having soared nearly 200% higher in the first six months of 2017. And then the train kept rolling.
AOI released preliminary second-quarter results on July 13, exceeding management's own guidance targets by wide margins. An avalanche of analyst upgrades and target price boosts followed, and AOI's share prices jolted upward with every rosy research note.
Now what
Analyst firm BWS Financial broke from the jubilant crowd to issue a sell rating on AOI with a hugely negative target price of $25 per share on July 20. Its theory is that largest customer, Amazon.com (NASDAQ: AMZN) , has been ordering high-speed optical transceivers from AOI rival Fabrinet (NYSE: FN) recently, arguably pointing to lost sales for this highflier.
The markets simply shrugged off that complaint and AOI's rise continued. Amazon could simply be ordering more transceivers on top of the large supply AOI can provide . Consider this quote by Applied Optoelectronics CFO Stefan Murry from the first-quarter earnings call in May: "Right now, we're basically shipping everything we can manufacture. So the growth rate is not dependent on demand. It's dependent on our ability to continue to ramp our manufacturing."
Murry added, "There's a limit to how fast we can increase our production capacity. So that's really the limiting factor to the growth rate."
So Amazon might be wise to expand its component sourcing to another supplier -- and that's not necessarily bad news for AOI at all.
10 stocks we like better than Applied Optoelectronics
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Anders Bylund owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. 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.
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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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) gained 58% in July 2017, according to data from S&P Global Market Intelligence . So what The maker of high-speed transceivers and other components for fiber-optic networking equipment was already on a massive roll at the start of July, having soared nearly 200% higher in the first six months of 2017. Now what Analyst firm BWS Financial broke from the jubilant crowd to issue a sell rating on AOI with a hugely negative target price of $25 per share on July 20.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) gained 58% in July 2017, according to data from S&P Global Market Intelligence . 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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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) gained 58% in July 2017, according to data from S&P Global Market Intelligence . Now what Analyst firm BWS Financial broke from the jubilant crowd to issue a sell rating on AOI with a hugely negative target price of $25 per share on July 20. 10 stocks we like better than Applied Optoelectronics When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) gained 58% in July 2017, according to data from S&P Global Market Intelligence . Yes, the stock gained 58% in a single month. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them!
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6d55152b-7108-48b4-9992-e46a2187127d
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9864.0
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2017-08-01 00:00:00 UTC
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Expedia (EXPE) Surpasses Q2 Earnings, Revenue Estimates (revised)
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AAOI
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https://www.nasdaq.com/articles/expedia-expe-surpasses-q2-earnings-revenue-estimates-revised-2017-08-01
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nan
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nan
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Expedia Inc.EXPE reported second-quarter 2017 adjusted earnings of 66 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents. Earnings were up 65% from the year-ago quarter.
Revenues of $2.59 billion were up 18.2% sequentially and 17.8% year over year and came ahead of the Zacks Consensus Estimate of $2.54 billion. Gross bookings decreased 3.4% sequentially but increased 12% year over year to $22.8 billion.
Shares increased 2.4% in afterhours trading in response to the better-than-expected results. Notably, year to date, shares of Expedia have outperformed the S&P 500 index. The stock returned 40.4% compared with the index's gain of around 10.8%.
In the quarter, Expedia acquired the majority stake in SilverRail, a rail ticket retailing and distribution platform developer. The buyout, which is likely to be supported by Expedia's successful partnership with SilverRail, will boost core OTA revenues, going forward.
We stay positive about the company's solid travel booking platform, a stronger travel market, contribution from a series of acquisitions and management execution.
The numbers in detail:
Revenues by Segment
Core OTA segment revenues were up 14.7% sequentially and 13.8% year over year to $2 billion, driven by growth in room nights in every major region.
Trivago revenues increased 21.1% sequentially and a massive 63.2% from the year-ago quarter to $328 million driven mainly by strong volumes and solid monetization.
Egencia was up 4.8% on a sequential basis and up 8% on a year-over-year basis to $135 million. Management stated that "Egencia is now the fourth largest travel management company in the world based on revenue."
HomeAway was up 9.8% sequentially and a massive 79.2% year over year to $224 million, driven mainly by strong growth in stayed room night.
Core OTA, trivago, Egencia and HomeAway contributed 78%, 13%, 5% and 9% of gross revenues (before inter-company eliminations), respectively.
Expedia, Inc. Price, Consensus and EPS Surprise
Expedia, Inc. Price, Consensus and EPS Surprise | Expedia, Inc. Quote
Revenues by Channel
Around 53.2% of total revenue was generated through the merchant business (direct sales), and another 26.5% came through the agency model (where Expedia operates as an agent of the supplier). Roughly 11.7% came from Advertising & Media with Home Away accounting for the remaining 8.7%.
Merchant, Agency, Advertising & Media and Home Away were up 17%, 19.8%, 17.5% and 21.1%, respectively on a sequential basis. On a year-over-year basis, Merchant, Agency, Advertising & Media and Home Away grew 13.7%, 11.8%, 49.5% and 30.2%, respectively.
Revenues by Geography
Around 56% of Expedia's quarterly revenues were generated domestically, with the remaining 47% came from international sources. The domestic business climbed 16.7% sequentially and 14.6% from a year ago. The international business grew 20.1% sequentially and 22.1% from the year-ago quarter.
Revenues by Product Line
Lodging revenues (67% of total revenue), which include hotel and HomeAway revenues, increased 16% in the quarter based on a 21% increase in room nights stayed, driven by growth in Brand Expedia, Hotels.com, EAN and HomeAway.
Air revenues increased 6% driven by 4% increase in revenue per ticket and 2% increase in air tickets sold. The year-over-year growth in advertising & media revenues reflected continued growth in trivago and Expedia Media Solutions. All other revenues increased 13%, reflecting growth in travel insurance and car rental products.
Operating Details
Adjusted EBITDA increased 89% sequentially and 19% year over year to $393 million. We note that Core OTA, Egencia and HomeAway EBITDA increased 14%, 5% and 3%, respectively on a year-over-year basis. However, trivago declined 78% over the same time frame.
On a sequential basis, Core OTA, HomeAway and Egencia EBITDA were up 59.5%, 550% and 3.7%, respectively. trivago EBITDA declined significantly in the reported quarter.
Operating income as a percentage of revenues was 4% compared with 1.2% in the year-ago quarter. The year-over-year improvement was due to lower technology & content (down 123 bps) and general & administrative (down 185 bps) expenses.
Total cloud spending was $21 million, up from $9 million from the year-ago quarter.
Balance Sheet
As of Jun 30, cash and short-term investments totaled $3.8 billion, up from $3.4 billion as of Mar 31. Net debt balance was $346.1 million compared with net debt of $667.7 million in the previous quarter.
So far in 2017, Expedia repurchased nearly 1 million shares for a total of $134 million.
Full Year Outlook
Expedia continues to expect adjusted EBITDA growth of 10-15% for 2017, including an increase in cloud spending. Excluding cloud expenses, growth is estimated to be 14-19%.
Management continues to expect trivago revenues to increase nearly 50% in 2017 with slight improvement in adjusted EBITDA margins.
Expedia's plan to ramp-up sales organization in the Egencia business will impact margins in the near term. Management expects Home Away's revenue growth to peak in the third quarter, which will also boost EBITDA growth.
Expedia expects total selling and marketing cost to grow faster than revenues for the remainder of the year. The company anticipates technology and content expenses to grow faster in the back half of the year.
Zacks Rank and Other Stocks to Consider
Currently, Expedia carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2.
Long-term earnings growth rates for Alibaba, Applied Optoelectronics and Symantec are projected to be 30.4%, 18.7% and 10.3%, respectively.
(PLEASE NOTE: We are reissuing this article to correct a mistake. The original article, issued July 28, 2017, should no longer be relied upon.)
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Expedia, Inc. (EXPE): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Symantec Corporation (SYMC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2. Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. In the quarter, Expedia acquired the majority stake in SilverRail, a rail ticket retailing and distribution platform developer.
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Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2. The numbers in detail: Revenues by Segment Core OTA segment revenues were up 14.7% sequentially and 13.8% year over year to $2 billion, driven by growth in room nights in every major region.
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Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2. Expedia, Inc. Price, Consensus and EPS Surprise Expedia, Inc. Price, Consensus and EPS Surprise | Expedia, Inc. Quote Revenues by Channel Around 53.2% of total revenue was generated through the merchant business (direct sales), and another 26.5% came through the agency model (where Expedia operates as an agent of the supplier).
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Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2. Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues of $2.59 billion were up 18.2% sequentially and 17.8% year over year and came ahead of the Zacks Consensus Estimate of $2.54 billion.
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a51242db-9208-46c8-84bf-c5aeb766f5f8
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9865.0
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2017-07-31 00:00:00 UTC
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Flex (FLEX) Misses on Q1 Earnings, Beats Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/flex-flex-misses-on-q1-earnings-beats-revenue-estimates-2017-07-31
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nan
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nan
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Flex Ltd.FLEX reported fiscal first-quarter 2018 non-GAAP earnings (including stock-based compensation) of 21 cents per share, missing the Zacks Consensus Estimate by a penny. Excluding stock-based compensation, earnings declined almost 11.6% year over year to 24 cents per share.
Revenues increased 2.2% from the year-ago quarter to $6.01 billion, better than the Zacks Consensus Estimate of almost $5.89 billion and were toward the top-end of management's guided range of $5.7-$6.1 billion.
Notably, the company's partnership with Nike in 2015 to improve its supply chain and the latter's product solutions has increased Flex's operating expenses and adversely impacted its bottom line.
We note that the company has also underperformed the industry it belongs to on a year-to-date basis. While the industry gained 13.5%, the stock returned 13.3% over the same time frame.
Quarter Details
Communications & Enterprise Compute (CEC) revenues declined $13 million from the year-ago quarter. This segment generated $49 million in adjusted operating profit and recorded 2.5% adjusted operating margin. Lower profitability was due to 10% lower revenue levels.
Consumer Technologies Group (CTG) revenues advanced 15% from the year-ago quarter to $1.5 billion. This division produced $18 million in adjusted operating profit, resulting in an adjusted operating margin of 1.2%, which missed the management's targeted range of 2% to 4% for this business. The weak adjusted operating profit was directly the result of the elevated level of operating losses due to its strategic partnership with Nike.
Management noted that Flex's partnership with Nike witnessed a lot of incremental investments for vertical integration of technologies, which increased operating expenses, thus elevating operating losses. However, management is hopeful that once the integration is completed and challenges of the partnership are addressed, profits will increase.
Flextronics International Ltd. Price, Consensus and EPS Surprise
Flextronics International Ltd. Price, Consensus and EPS Surprise | Flextronics International Ltd. Quote
Industrial & Emerging Industries (IEI) segment reported $55 million in adjusted operating profit, a new quarterly high, and 4% adjusted operating margin. This was driven by various new customer programs in the industrial, home and lifestyle and energy businesses.
High Reliability Solutions (HRS) segment reported $90 million in adjusted operating profit, resulting in adjusted operating margin of 8%.
Selling, general & administrative (SG&A) expenses increased 4.7% to $250.8 million, reflecting higher design and engineering costs. Management stated expansion in innovation and design centers as the major reason for an increase in expenses.
In the quarter ended Jun 30, 2017, cash & cash equivalents were $1.58 billion, while total debt was $3.00 billion. Flex generated net cash from operations of $138.5 million and free cash flow of $19 million. The company bought back 4.5 million shares worth $74 million in the first quarter.
Guidance
For second-quarter fiscal 2018, total revenue is expected to be in the range of $5.9-$6.3 billion.
Adjusted operating income is anticipated in the range of $170-$200 million. Management expects adjusted earnings in the range of 24 cents - 28 cents per share.
Management expects a collective revenue increase in the second half of fiscal 2018.
Zacks Rank and Key Picks
Currently, Flex carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy), and Symantec Corporation SYMC with Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rates for Alibaba Group, Applied Optoelectronics and Symantec are projected to be 30.4%, 18.7% and 10.3%, respectively.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
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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
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Symantec Corporation (SYMC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Flextronics International Ltd. (FLEX): 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.
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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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy), and Symantec Corporation SYMC with Zacks Rank #2 (Buy). Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Flextronics International Ltd. (FLEX): Free Stock Analysis Report To read this article on Zacks.com click here. Flex Ltd.FLEX reported fiscal first-quarter 2018 non-GAAP earnings (including stock-based compensation) of 21 cents per share, missing the Zacks Consensus Estimate by a penny.
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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy), and Symantec Corporation SYMC with Zacks Rank #2 (Buy). Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Flextronics International Ltd. (FLEX): Free Stock Analysis Report To read this article on Zacks.com click here. Flextronics International Ltd. Price, Consensus and EPS Surprise Flextronics International Ltd. Price, Consensus and EPS Surprise | Flextronics International Ltd. Quote Industrial & Emerging Industries (IEI) segment reported $55 million in adjusted operating profit, a new quarterly high, and 4% adjusted operating margin.
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Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Flextronics International Ltd. (FLEX): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy), and Symantec Corporation SYMC with Zacks Rank #2 (Buy). This division produced $18 million in adjusted operating profit, resulting in an adjusted operating margin of 1.2%, which missed the management's targeted range of 2% to 4% for this business.
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Better-ranked stocks in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1 (Strong Buy), and Symantec Corporation SYMC with Zacks Rank #2 (Buy). Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Flextronics International Ltd. (FLEX): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues increased 2.2% from the year-ago quarter to $6.01 billion, better than the Zacks Consensus Estimate of almost $5.89 billion and were toward the top-end of management's guided range of $5.7-$6.1 billion.
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dd047534-b923-4b27-aeee-95cd9982b692
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9866.0
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2017-07-28 00:00:00 UTC
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Interesting AAOI Put And Call Options For March 2018
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AAOI
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https://www.nasdaq.com/articles/interesting-aaoi-put-and-call-options-march-2018-2017-07-28
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nan
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nan
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Investors in Applied Optoelectronics Inc (Symbol: AAOI) saw new options begin trading this week, for the March 2018 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 231 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAOI options chain for the new March 2018 contracts and identified one put and one call contract of particular interest.
The put contract at the $85.00 strike price has a current bid of $18.90. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $85.00, but will also collect the premium, putting the cost basis of the shares at $66.10 (before broker commissions). To an investor already interested in purchasing shares of AAOI, that could represent an attractive alternative to paying $97.82/share today.
Because the $85.00 strike represents an approximate 13% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 71%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract . Should the contract expire worthless, the premium would represent a 22.24% return on the cash commitment, or 35.13% annualized - at Stock Options Channel we call this the YieldBoost .
Below is a chart showing the trailing twelve month trading history for Applied Optoelectronics Inc, and highlighting in green where the $85.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $100.00 strike price has a current bid of $20.20. If an investor was to purchase shares of AAOI stock at the current price level of $97.82/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $100.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 22.88% if the stock gets called away at the March 2018 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAOI shares really soar, which is why looking at the trailing twelve month trading history for Applied Optoelectronics Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAOI's trailing twelve month trading history, with the $100.00 strike highlighted in red:
Considering the fact that the $100.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 40%. On our website under the contract detail page for this contract , Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 20.65% boost of extra return to the investor, or 32.63% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example is 93%, while the implied volatility in the call contract example is 73%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $97.82) to be 72%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Of course, a lot of upside could potentially be left on the table if AAOI shares really soar, which is why looking at the trailing twelve month trading history for Applied Optoelectronics Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAOI's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Applied Optoelectronics Inc (Symbol: AAOI) saw new options begin trading this week, for the March 2018 expiration.
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Below is a chart showing AAOI's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Applied Optoelectronics Inc (Symbol: AAOI) saw new options begin trading this week, for the March 2018 expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAOI options chain for the new March 2018 contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAOI's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Applied Optoelectronics Inc (Symbol: AAOI) saw new options begin trading this week, for the March 2018 expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAOI options chain for the new March 2018 contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel , our YieldBoost formula has looked up and down the AAOI options chain for the new March 2018 contracts and identified one put and one call contract of particular interest. Below is a chart showing AAOI's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Applied Optoelectronics Inc (Symbol: AAOI) saw new options begin trading this week, for the March 2018 expiration.
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3c2d8447-762f-41de-9463-6421774c4c7d
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9867.0
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2017-07-28 00:00:00 UTC
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Western Digital (WDC) Beats on Q4 Earnings and Revenues
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AAOI
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https://www.nasdaq.com/articles/western-digital-wdc-beats-on-q4-earnings-and-revenues-2017-07-28
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nan
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nan
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Western Digital Corp.WDC reported fourth-quarter fiscal 2017 non-GAAP earnings (including stock-based compensation) of $2.63 per share, which beat the Zacks Consensus Estimate by 12 cents.
Excluding stock based compensation, non GAAP earnings were $2.93 per share as compared with $1.03 reported in the year-ago quarter. The figure was much better than management's guided range of $2.55-$2.65 per share.
Revenues increased 38.5% year over year to $4.84 billion and surpassed the Zacks Consensus Estimate of $4.80 billion. The figure was slightly better than management's guidance.
Western Digital reported revenues of $19.09 billion in the fiscal 2017, which grew almost 47% over fiscal 2016. The results benefited from strong demand for both hard drive and NAND-based products from all categories of customers, largely driven by cloud and mobility based applications. The company is also significantly gaining from the synergies related to the SanDisk and HGST acquisitions.
Western Digital's stock has gained 35.3% year to date, substantially outperforming the industry it belongs to.
Segment Revenue Details
Client devices (49.8% of total revenue) soared 52.1% year over year to $2.41 billion. Despite weak PC market, the segment benefited from a diversifying customer base and continued expansion of product portfolio in mobility and client SSD.
Western Digital Corporation Price, Consensus and EPS Surprise
Western Digital Corporation Price, Consensus and EPS Surprise | Western Digital Corporation Quote
Management acknowledges long-term growth opportunity from applications like connected home, gaming and industrial markets. The company has already started multiple sampling activities for embedded products designed for the automotive market.
Client solutions (20.9% of total revenue) also surged 52.1% to $1.01 billion. The company noted that product strength along with global distribution capabilities drove results.
Data center devices and solutions (29.3% of total revenue) increased 14% to $1.42 billion on the back of strong demand for high capacity storage devices. Solid adoption of 10 Terabyte (TB) third generation Helium drive remained consistent in the quarter.
Management noted that on a cumulative basis, since the launch of the helium platform four years ago, Western Digital has shipped more than 18 million helium drives. The company is now focused on introducing the 12-TB helium drives, which is anticipated to help Western Digital maintain technological leadership in the long haul.
Management's expectations for the Nearline platform Exabyte growth rate remains at 40% over the long term. Western Digital now estimates the industry's Exabyte growth to be approximately 30% for calendar 2017.
During the quarter, Western Digital shipped 39.3 million HDDs at an average selling price (ASP) of $63. The reported shipments were down from 40.1 million shipped in the year-ago quarter.
Operating Details
Non GAAP gross margin increased to 41.3% from 31.2% in the year-ago quarter. The figure was better than management's guidance of 40%. The expansion was driven by a favorable supply-demand environment for flash-based products, product cost improvements, a higher mix of flash-based revenue, and strength in the capacity enterprise HDD product line-up.
Non GAAP operating expenses, as percentage of revenues, decreased 160 bps to 16.8%, owing to lower research and development (R&D) - down 170 bps - and selling, general and administrative (SG&A) expenses - down 430 bps.
Non GAAP operating margin were 24.5% as compared with 12.9% in the year-ago quarter.
Non GAAP interest expense declined 5.7% from the year-ago quarter to $197 million, slightly lower than management's guidance.
Acquisition Synergies
Western Digital stated that it is on track to achieve the $800 million of annualized savings from the HGST integration by the end of calendar year 2017. The company achieved $350 million of cost of revenue synergies and $350 million of operating expense synergies each on an annual run-rate basis at the end of the reported quarter.
In terms of SanDisk integration, at the end of the fiscal fourth quarter, the company realized synergies of approximately $200 million on an annual run-rate basis. This is in line with the company's 18-month target of achieving $500 million of total run-rate synergies on an annualized basis.
Balance Sheet/Cash Flow
As of Jun 30, cash and cash equivalents were $6.38 billion, up from $5.65 billion as of Mar 31, 2016. Long-term debt during the quarter was $12.92 billion, slightly up from $12.91 billion at the end of previous quarter.
During the quarter, Western Digital generated $939 million in cash from operations as compared with $998 million.
Guidance
For first-quarter fiscal 2018, revenues are expected to be approximately $5.10 billion, which is slightly lower than the Zacks Consensus Estimate of $5.12 billion.
Non GAAP gross margin is projected to be almost 41%, backed by continued favorable pricing and product mix across the company's businesses. Total operating expenses are anticipated to be flat with the fiscal fourth-quarter.
Interest expense is anticipated to be almost $208 million.
Management expects non-GAAP earnings to be in the range of $3.25-$3.35 per share. The mid-point ($3.30 per share) is significantly higher than the Zacks Consensus Estimate of $2.78.
For fiscal 2018, Western Digital forecasts non-GAAP earnings to be excess of $12.00. The company reported non-GAAP earnings of $9.19 in fiscal 2017. The Zacks Consensus Estimate is currently pegged at $10.45 per share.
Our Take
We believe that the shift toward non-PC applications, secular growth of digital data and increasing exposure to the small and medium business space are the long-term positives for Western Digital. The company's growing footprint in the automotive as well as the connected home and industrial categories is a significant positive, in our view.
Western Digital will benefit from favorable NAND industry conditions that management believes will persist at least through the first half of calendar 2018. This will also help in gross margin expansion.
We remain encouraged by the company's launch of a string of storage devices under the mobile and cloud segment. Continued investments in product innovation could result in flat margins in the near term.
Further, Western Digital's entry into the wireless devices market comes at a time when storage services related to smartphones and tablets are witnessing large-scale adoption. These factors are anticipated to be growth catalysts, going forward.
Moreover, the SanDisk acquisition not only expands Western Digital's offerings in the SSD segment, but also provides a competitive edge against peers such as Seagate Technology STX .
Zacks Rank & Key Picks
Western Digital currently has a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Both the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Infineon is expected to report earnings on Aug 1, while Applied Optoelectronics is set to report on Aug 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Western Digital Corporation (WDC): Free Stock Analysis Report
Seagate Technology PLC (STX): Free Stock Analysis Report
Infineon Technologies AG (IFNNY): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Western Digital Corp.WDC reported fourth-quarter fiscal 2017 non-GAAP earnings (including stock-based compensation) of $2.63 per share, which beat the Zacks Consensus Estimate by 12 cents.
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Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Western Digital Corporation Price, Consensus and EPS Surprise Western Digital Corporation Price, Consensus and EPS Surprise | Western Digital Corporation Quote Management acknowledges long-term growth opportunity from applications like connected home, gaming and industrial markets.
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Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Western Digital Corporation Price, Consensus and EPS Surprise Western Digital Corporation Price, Consensus and EPS Surprise | Western Digital Corporation Quote Management acknowledges long-term growth opportunity from applications like connected home, gaming and industrial markets.
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Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues increased 38.5% year over year to $4.84 billion and surpassed the Zacks Consensus Estimate of $4.80 billion.
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9c0822e1-8b7c-4e0f-b215-5c6f78612375
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9868.0
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2017-07-28 00:00:00 UTC
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VeriSign (VRSN) Beats on Q2 Earnings, Ups '17 Revenue View
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AAOI
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https://www.nasdaq.com/articles/verisign-vrsn-beats-on-q2-earnings-ups-17-revenue-view-2017-07-28
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nan
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nan
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Leading domain name and internet security provider, VeriSign Inc.VRSN reported better-than-expected second-quarter 2017 results, which also improved year over year.
The company reported adjusted earnings (excluding all one-time items but including stock-based compensation) of 99 cents a share, which beat the Zacks Consensus Estimate of 91 cents. Quarterly earnings also increased 13.8% from 87 cents reported in the year-ago quarter.
On a non-GAAP basis, the company posted earnings of $1.05 per share, up 15.4% from the year-ago quarter's earnings of 91 cents. The increase was primarily driven by a benefit of 6 cents per share owing to a pre-tax gain from the divestiture of its iDefense business and lower share count.
Revenues marginally increased year over year to $288.6 million from $286.5 million and came ahead of the Zacks Consensus Estimate of $286.9 million as well. The year-over-year improvement was primarily driven by increase in domain name registrations in the U.S. as well as in international markets.
Shares of VeriSign have gained 34% year to date, slightly underperforming the 39.3% rally of the industry it belongs to.
Quarter Details
In the quarter, domain name registrations for .com and .net together grew 0.8% year over year to 144.3 million. In absolute terms, domain name registrations grew 0.68 million year over year. VeriSign processed 9.2 million new domain name registrations for .com and .net, an increase from 8.6 million processed in the year-ago quarter.
For the reported quarter, the exact renewal rate figures will be available after 45 days from Jun 30, 2017. The company estimates it to be 73.9% compared with 73.8% in the year-ago quarter. It provided renewal rate for the first quarter of 2017, which came in at 72.5% compared with 74.4% in the year-ago quarter.
Margins
VeriSign reported non-GAAP operating income of $188.3 million compared with $187.4 million in the prior-year quarter. The company's non-GAAP operating margin was 65.3% in the quarter, down 10 basis points (bps) from the prior-year quarter.
Non-GAAP adjusted EBITDA was $203.5 million, up marginally from $202.8 million in the year-ago quarter.
VeriSign, Inc. Price, Consensus and EPS Surprise
VeriSign, Inc. Price, Consensus and EPS Surprise | VeriSign, Inc. Quote
Other Financial Details
Exiting the quarter, the company's cash and cash equivalents (including marketable securities) were approximately $1.81 billion compared with $1.79 billion as of Mar 31, 2016.
Operating cash flow in the quarter was approximately $181 million while free cash flow came in at $171 million. Moreover, during the first half of 2017, the company generated $328.9 million of cash flow from operational activities.
VeriSign repurchased 1.7 million shares for $150.5 million in the quarter and 3.5 million shares for $300.5 million during the first half of 2017. As of Jun 30, 2017, the company had $770 million available under its current share repurchase program.
Guidance
Buoyed by the encouraging second-quarter results, VeriSign raised its full-year revenue and capital expenditure guidance. The company now expects revenues in the range of $1.155-$1.165 billion (mid-point $1.16 billion), up from the prior guidance of $1.145-$1.160 billion (mid-point $1.153 billion). The Zacks Consensus Estimate for 2017 revenues is $1.16 billion.
Capital expenditure is now anticipated to increase in the range of $40-$50 million compared with the previous guidance of $35-$45 million.
The company reaffirmed its earlier non-GAAP operating margin guidance range of 64.5% to 65.25%.
VeriSign also raised its domain name base growth rate guidance for 2017. The company now anticipates the same to grow between 2% and 2.75%, up from its earlier forecast of 1% to 2.5%.
Going ahead, for the third quarter, VeriSign projects domain name base registration to increase in the range of 0.8 million to 1.3 million.
Furthermore, the company announced a new agreement with ICANN under which the annual fee for a .net domain name registration will be increased from $8.20 to $9.02, effective Feb. 1, 2018. However, the other terms of the agreement remained unchanged.
Our Take
VeriSign holds a prime position in the highly regulated .com and .net domain industry. The renewal of the .com contract and price hikes for the .com and .net domain names will continue to drive VeriSign's top line. Also, we believe that gTLD prospects, international expansion through IDNs and investments in intellectual properties will boost results. The company continues to benefit from strong demand in the U.S. as well as in the international markets.
Additionally, VeriSign has significant growth opportunities in the Distributed Denial of Service (DDoS) security market. VeriSign also has significant growth opportunities in the network security products space. Strong demand for VeriSign's cyber security products, following ransomware attacks such as WannaCry and Petya is also a key growth driver. Also an increase in annual fee for a .net domain name registration will drive the company's top-line results from next year onward.
However, the negative impact of search engine adjustments on domain monetization and increasing operating expenses related to sales and marketing remain primary headwinds.
Zacks Rank & Stocks to Consider
VeriSign carries Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Better-ranked stocks in the broader technology sector includeSBA Communications SBAC , Applied Optoelectronics AAOI and IPG Photonics IPGP . While SBA Communications and Applied Optoelectronics sport a Zacks Rank #1, IPG Photonics has a Zacks Rank #2 (Buy).
Long-term earnings growth rates for SBA Communications, Applied Optoelectronics and IPG Photonics are projected to be 10.60%, 18.75% and 19.67%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
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
VeriSign, Inc. (VRSN): Free Stock Analysis Report
SBA Communications Corporation (SBAC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
IPG Photonics Corporation (IPGP): 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.
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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Better-ranked stocks in the broader technology sector includeSBA Communications SBAC , Applied Optoelectronics AAOI and IPG Photonics IPGP . Click to get this free report VeriSign, Inc. (VRSN): Free Stock Analysis Report SBA Communications Corporation (SBAC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report To read this article on Zacks.com click here. Strong demand for VeriSign's cyber security products, following ransomware attacks such as WannaCry and Petya is also a key growth driver.
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Click to get this free report VeriSign, Inc. (VRSN): Free Stock Analysis Report SBA Communications Corporation (SBAC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector includeSBA Communications SBAC , Applied Optoelectronics AAOI and IPG Photonics IPGP . VeriSign, Inc. Price, Consensus and EPS Surprise VeriSign, Inc. Price, Consensus and EPS Surprise | VeriSign, Inc. Quote Other Financial Details Exiting the quarter, the company's cash and cash equivalents (including marketable securities) were approximately $1.81 billion compared with $1.79 billion as of Mar 31, 2016.
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Click to get this free report VeriSign, Inc. (VRSN): Free Stock Analysis Report SBA Communications Corporation (SBAC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector includeSBA Communications SBAC , Applied Optoelectronics AAOI and IPG Photonics IPGP . VeriSign, Inc. Price, Consensus and EPS Surprise VeriSign, Inc. Price, Consensus and EPS Surprise | VeriSign, Inc. Quote Other Financial Details Exiting the quarter, the company's cash and cash equivalents (including marketable securities) were approximately $1.81 billion compared with $1.79 billion as of Mar 31, 2016.
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Better-ranked stocks in the broader technology sector includeSBA Communications SBAC , Applied Optoelectronics AAOI and IPG Photonics IPGP . Click to get this free report VeriSign, Inc. (VRSN): Free Stock Analysis Report SBA Communications Corporation (SBAC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues marginally increased year over year to $288.6 million from $286.5 million and came ahead of the Zacks Consensus Estimate of $286.9 million as well.
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86f49259-8d2e-448f-9cdc-b38e5da0dc92
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9869.0
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2017-07-28 00:00:00 UTC
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Cypress Semiconductor (CY) Beats on Q2 Earnings and Revenues
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AAOI
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https://www.nasdaq.com/articles/cypress-semiconductor-cy-beats-on-q2-earnings-and-revenues-2017-07-28
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nan
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nan
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Cypress Semiconductor Corp.CY reported second-quarter 2017 earnings per share (including stock based compensation) of 13 cents, which beat the Zacks Consensus Estimate by 4 cents.
The company reported non-GAAP revenues of $593.8 million, which comfortably beat the Zacks Consensus Estimate of $548 million. The figure also came ahead of the higher end of the guided range of $530 million $560 million. The robust top-line growth can primarily be attributed to growth in automotive, IoT wireless connectivity and USB-C solutions.
Driven by the growth of these segments, the company has been performing well for quite some time. It outperformed the industry it belongs to to on a year-to-date basis. The company returned 30.1% while the industry gained 19% over the same time frame.
Quarter Details
Last year, the company reorganized its reporting structure into two divisions. These divisions are Microcontroller and Connectivity Division (MCD) and Memory Products Division (MPD).
Notably, MCD includes Microcontroller and PSoC product lines of the former Programmable Systems Division, Wireless Connectivity/IoT and USB product lines of the former Data Communications Division, the foundry business from the former Emerging Technologies Division (ETD) and the Intellectual Property Business Unit, which was formerly part of the Memory Products Division.
Revenues from MCD increased 13% sequentially to $360.5 million, driven by strong growth in the wireless connectivity business and automotive microcontrollers. This segment accounted for 61% of second-quarter revenues. Community users in the wireless connectivity business, which includes the IoT assets acquired from Broadcom last year, increased 40% since the acquisition.
The other division, MPD, includes Flash, SRAM and specialty memories, as well as the AgigA Tech subsidiary, which was formerly part of ETD. Revenues from this segment, which accounted for the remaining 39% of second-quarter revenues, decreased 9% sequentially to $233.2 million.
Cypress Semiconductor Corporation Price, Consensus and EPS Surprise
Cypress Semiconductor Corporation Price, Consensus and EPS Surprise | Cypress Semiconductor Corporation Quote
The company's wireless connectivity platform, WICED SDK, saw a 40% increase in download rate. Management also anticipates the recent launch of its Quicksilver platform in collaboration with Arrow Electronics to aid growth. It also noted that the adoption of 802.11ac and Bluetooth into emerging IoT platforms will bode well for the company's growth in the latter half of the year.
Cypress' USB-C product continues to witness rapid penetration. Its customer base has grown almost 50% year on year in the second quarter. Notably, automotive revenues grew 7% in the second quarter. The launch of Audi R8 is also a positive for the company as it will equip the model with 802.11ac connectivity for content sharing, hotspot and rear-seat entertainment. The company also announced that Bosch, a German multinational engineering and electronics company selected Cypress flash memory and NOR flash memory for its ADAS platform.
Operating Results
Gross margin was 40.9%, up 160 basis points (bps) sequentially. Operating income of $97.2 million increased 40.2% sequentially.
GAAP net loss was $22.9 million compared with net loss of $45.8 million in the previous quarter. Non-GAAP earnings per share came in at 21 cents compared with 13 cents in the previous quarter.
Balance Sheet
Cypress exited the quarter with cash, cash equivalents and short-term investments of approximately $108.8 million compared with $122.5 million last quarter. Trade receivables were $336.5 million, up from $317.3 million in the previous quarter. Net inventory was $311.8 million, down from $325 million in the previous quarter.
During the quarter, Cypress' cash flow from operations was approximately $32.4 million and capex was $15.6 million. The company also paid quarterly dividend of $36.2 million or 11 cents per share.
Q3 Guidance
Management expects third-quarter 2017 revenues in the range of $585-$615 million. The Zacks Consensus Estimate is pegged at $578.1 million.
Consolidated GAAP gross margin is expected to be roughly in the range of 40-41%, depending on utilization, product and customer mix. Pro forma gross margin is expected in the range of roughly 41% to 42%.
On a GAAP basis, the bottom line is expected to be in the range of a loss of 5 cents to break even. Pro forma earnings per share are expected in the range of 21 cents to 25 cents. The Zacks Consensus Estimate is pegged at 14 cents.
Management noted that the third quarter will be a peak quarter for wireless connectivity due to the holiday season. The company targets annual revenue growth from the segment to be in the range of 35% to 40%, up from the previous target of 23% to 27%.
Zacks Rank and Other Stocks to Consider
Currently, Cypress carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Other stocks worth considering in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corporation SYMC with Zacks Rank #2.
Long-term earnings growth rates for Alibaba Group, Applied Optoelectronics and Symantec Corporation are projected to be 30.4%, 18.7% and 10.3%, respectively.
The Hottest Tech Mega-Trend of AllLast year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Cypress Semiconductor Corporation (CY): Free Stock Analysis Report
Symantec Corporation (SYMC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Other stocks worth considering in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corporation SYMC with Zacks Rank #2. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues from MCD increased 13% sequentially to $360.5 million, driven by strong growth in the wireless connectivity business and automotive microcontrollers.
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Other stocks worth considering in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corporation SYMC with Zacks Rank #2. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Cypress Semiconductor Corporation Price, Consensus and EPS Surprise Cypress Semiconductor Corporation Price, Consensus and EPS Surprise | Cypress Semiconductor Corporation Quote The company's wireless connectivity platform, WICED SDK, saw a 40% increase in download rate.
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Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks worth considering in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corporation SYMC with Zacks Rank #2. The company reported non-GAAP revenues of $593.8 million, which comfortably beat the Zacks Consensus Estimate of $548 million.
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Other stocks worth considering in the industry are Alibaba Group Holding Limited BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corporation SYMC with Zacks Rank #2. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues from MCD increased 13% sequentially to $360.5 million, driven by strong growth in the wireless connectivity business and automotive microcontrollers.
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3b276ea1-0160-4038-b92d-64063a8ad440
|
9870.0
|
2017-07-28 00:00:00 UTC
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Proofpoint (PFPT) Posts Q2 Loss, Stock Up on Upbeat '17 View
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AAOI
|
https://www.nasdaq.com/articles/proofpoint-pfpt-posts-q2-loss-stock-up-on-upbeat-17-view-2017-07-28
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nan
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nan
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Shares of Proofpoint Inc.PFPT went up sharply in the after-hours trade and bounced back from a slight drop during the normal trading session, as the computer security software firm reported better-than-expected second-quarter top-line results and raised its outlook for 2017.
Moreover, although the company's bottom-line results fell short of estimates, it came in line with the year-ago quarter. The company's adjusted loss per share (excluding all one-time items but including stock-based compensation) came in at 39 cents, wider than the Zacks Consensus Estimate of 26 cents.
However, on a non-GAAP basis, the company reported earnings of 17 cents per share, marking approximately three-fold jump from the year-ago quarter's earnings of 6 cents. The year-over-year improvement was primarily stemmed by solid top-line growth and efficient cost management, which were partially offset by higher share counts.
Following the earnings announcement, shares of Proofpoint gained approximately 3.5% in the after-hours trading session. Notably, the stock has gained 25.2% year to date, substantially outperforming the 17.9% rally of the industry it belongs to.
Quarter in Detail
Proofpoint reported total revenue of $122.3 million, up 36.1% year over year, mainly driven by customer additions, improved add-on-sales and strong renewal rate. The company's revenues also surpassed the Zacks Consensus Estimate of $120.4 million and also came ahead of its guidance range of $118-$120 million.
Total billings during the quarter also jumped 45% year over year to $146.3 million. Renewal rates also remained well over 90% during the second quarter.
Non-GAAP gross profit surged 39.8% from the year-ago quarter to $94.4 million. Moreover, non-GAAP gross margin expanded 200 basis points (bps) to 77.1%, primarily driven by higher sales and efficiency improvements across the company's cloud operations.
Furthermore, the company efficiently managed its operating expenses this quarter. As a percentage of revenues, non-GAAP operating expenses declined to 69.7% from 71% in the year-ago quarter. In dollar terms, however, the figure increased 33.6% to $85.3 million.
Owing to higher revenues and efficient cost management, Proofpoint's non-GAAP operating income for the quarter jumped year over year to $9.1 million from $3.7 million recorded in second-quarter 2016. Operating margin expanded 280 bps to 7.4%, primarily due to higher gross margin and lower operating expenses as a percentage of revenues.
Non-GAAP net income, therefore, increased to $9.1 million from $2.5 million reported in the prior-year quarter. Net income margin advanced 460 bps to 7.4%.
Proofpoint, Inc. Price, Consensus and EPS Surprise
Proofpoint, Inc. Price, Consensus and EPS Surprise | Proofpoint, Inc. Quote
Balance Sheet & Cash Flow
Proofpoint exited the quarter with cash and cash equivalents, and short-term investments of approximately $429.5 million, slightly up from the previous quarter balance of $412.9 million. Accounts receivable were $75.6 million compared with $62.4 million at the end of first-quarter 2017.
During the first half of 2017, the company generated operating cash flow of $67 million. Free cash flow for the first two quarters came in at $44.1 million.
Outlook
Buoyed by better-than-expected top-line result, Proofpoint provided encouraging outlook for the third quarter and raised guidance for the full year. For 2017, the company now anticipates revenues in the range of $503-$506 million, up from the earlier guidance range of $496-$500 million. Currently, the Zacks Consensus Estimate for revenues is pegged at $500.55 million.
Billings' guidance for the year has also been revised upward and is now anticipated to come between $625 million and $628 million. Earlier, it was projected to remain in the range of $619-$623 million.
Similarly, non-GAAP earnings per share are now estimated to come between 62 cents and 64 cents, up from the previous guidance range of 56-59 cents. Free cash flow for the year is now projected to be in the range of $100-$107 million, up from the earlier projection of $98-$106 million. The company intends to incur capital expenditure in the range of $44-$46 million in 2017.
Coming to the third-quarter outlook, the company anticipates reporting revenues in the range of $130-132 million, and billings between $162 million and $164 million. Currently, the Zacks Consensus Estimate for revenues is pegged at $129.6 million.
GAAP and non-GAAP are expected to be 72% and 77%, respectively. Non-GAAP net income is anticipated to come in the range of $8.0-$9.0 million, or 16-18 cents per share. Proofpoint projects reporting loss in the range of $24.8-$28.2 million or 56-64 cents per share, on a GAAP basis.
Free cash flow is projected to be in the range of $26-$28 million, while capital expenditure to be approximately $12 million during the third quarter.
Our Take
Proofpoint reported mixed results for second-quarter 2017, wherein its top line fared better than the Zacks Consensus Estimate but the bottom line didn't. However, on a year-over-year basis, the company witnessed improvement on both the counts. Furthermore, an optimistic third-quarter outlook and upbeat full-year guidance are encouraging.
Proofpoint is a leading security-as-a-service provider that focuses on cloud-based solutions for threat protection, compliance, archiving & governance, and secure communications. The company's sustained focus on launching products, acquisitions and partnerships have helped it register over 35% revenue growth consistently for the last few quarters.
Nonetheless, since it continues to invest in sales and marketing, we anticipate this to remain a drag on the company's bottom line in the near term. Intensifying competition and an uncertain macroeconomic environment add to its woes.
Currently, Proofpoint carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI , Broadcom Limited AVGO and Mellanox Technologies, Ltd. MLNX , all sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term expected EPS growth rates for Applied Optoelectronics, Broadcom and Mellanox Technologies are 18.8%, 13.6% and 13.1%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaries,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Proofpoint, Inc. (PFPT): Free Stock Analysis Report
Broadcom Limited (AVGO): Free Stock Analysis Report
Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Some better-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI , Broadcom Limited AVGO and Mellanox Technologies, Ltd. MLNX , all sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Proofpoint, Inc. (PFPT): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The year-over-year improvement was primarily stemmed by solid top-line growth and efficient cost management, which were partially offset by higher share counts.
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Click to get this free report Proofpoint, Inc. (PFPT): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI , Broadcom Limited AVGO and Mellanox Technologies, Ltd. MLNX , all sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Owing to higher revenues and efficient cost management, Proofpoint's non-GAAP operating income for the quarter jumped year over year to $9.1 million from $3.7 million recorded in second-quarter 2016.
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Some better-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI , Broadcom Limited AVGO and Mellanox Technologies, Ltd. MLNX , all sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Proofpoint, Inc. (PFPT): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Owing to higher revenues and efficient cost management, Proofpoint's non-GAAP operating income for the quarter jumped year over year to $9.1 million from $3.7 million recorded in second-quarter 2016.
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Some better-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI , Broadcom Limited AVGO and Mellanox Technologies, Ltd. MLNX , all sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Proofpoint, Inc. (PFPT): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company's revenues also surpassed the Zacks Consensus Estimate of $120.4 million and also came ahead of its guidance range of $118-$120 million.
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544f709e-dde8-477e-b733-7860998e66b7
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9871.0
|
2017-07-28 00:00:00 UTC
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Can the Rally in Applied Optoelectronics (AAOI) Shares Continue?
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AAOI
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https://www.nasdaq.com/articles/can-the-rally-in-applied-optoelectronics-aaoi-shares-continue-2017-07-28
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nan
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nan
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Applied Optoelectronics Inc AAOI has been on the move lately as the stock has risen by 61.9% in the past four weeks, and it is currently trading well above its 20-Day SMA. This is a pretty solid move higher, but the question that has to be on investors' minds right now is; can this trend continue?
While there can be no telling for sure, it is certainly encouraging that earnings estimates have risen in the past few weeks on the company, suggesting that sentiment on AAOI is moving in the right direction. In fact, the stock currently has a Zacks Rank #1 (Strong Buy), suggesting that the recent run could certainly continue for this in-focus company. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaries," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
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
Applied Optoelectronics, Inc. (AAOI): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Applied Optoelectronics Inc AAOI has been on the move lately as the stock has risen by 61.9% in the past four weeks, and it is currently trading well above its 20-Day SMA. While there can be no telling for sure, it is certainly encouraging that earnings estimates have risen in the past few weeks on the company, suggesting that sentiment on AAOI is moving in the right direction. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics Inc AAOI has been on the move lately as the stock has risen by 61.9% in the past four weeks, and it is currently trading well above its 20-Day SMA. While there can be no telling for sure, it is certainly encouraging that earnings estimates have risen in the past few weeks on the company, suggesting that sentiment on AAOI is moving in the right direction.
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Applied Optoelectronics Inc AAOI has been on the move lately as the stock has risen by 61.9% in the past four weeks, and it is currently trading well above its 20-Day SMA. While there can be no telling for sure, it is certainly encouraging that earnings estimates have risen in the past few weeks on the company, suggesting that sentiment on AAOI is moving in the right direction. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Applied Optoelectronics Inc AAOI has been on the move lately as the stock has risen by 61.9% in the past four weeks, and it is currently trading well above its 20-Day SMA. While there can be no telling for sure, it is certainly encouraging that earnings estimates have risen in the past few weeks on the company, suggesting that sentiment on AAOI is moving in the right direction. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here.
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1e79116f-5f3e-41bf-8416-a9df24136298
|
9872.0
|
2017-07-28 00:00:00 UTC
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Brightcove (BCOV) Q2 Earnings Miss Estimates, Revenues Beat
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AAOI
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https://www.nasdaq.com/articles/brightcove-bcov-q2-earnings-miss-estimates-revenues-beat-2017-07-28
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nan
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nan
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Brightcove Inc.BCOV reported mixed second-quarter fiscal 2017 results wherein the bottom line missed the Zacks Consensus Estimate by a penny but the top line exceeded the same.
Adjusted loss (excluding all other one-time items but including stock-based compensation) of 20 cents per share was wider than the Zacks Consensus Estimate of a loss of 19 cents. On a year-on-year basis, this was also higher than the adjusted loss of 5 cents in the second-quarter 2016.
On a non-GAAP basis, Brightcove reported diluted net loss of 16 cents per share, compared with the loss of a penny in the year-ago period.
However, revenues increased 4.9% from the year-ago quarter to $38.8 million, which outpaced the Zacks Consensus Estimate of $37.2 million.
We note that Brightcove shares have fallen 19.2% so far this year, substantially outperforming the industry 's rally of 37.1%.
Quarter Details
The company's Professional services and other revenue increased 71.5% year over year to $3.2 million in second-quarter 2017, attributable to several large over-the-top content (OTT) projects.
Subscription and support revenue of $35.5 million was up slightly compared with $35.1 million in the year-ago period.
Operational Details
Non-GAAP gross profit for second-quarter 2017 was $22.8 million, down from $24.1 million reported in the year-ago period.
The company's non-GAAP operating loss was $5.5 million, compared with $302,000 reported year over year for second-quarter 2016.
Brightcove Inc. Price, Consensus and EPS Surprise
Brightcove Inc. Price, Consensus and EPS Surprise | Brightcove Inc. Quote
Balance Sheet & Cash Flow
Brightcove exited the quarter with cash and cash equivalents of $28.4 million, compared with $29.2 million as of the previous quarter ended Mar 31, 2017.
Cash flow used in operations was $119,000 for second-quarter 2017, compared with cash flow from operations of $2 million in the year-ago quarter.
Guidance
The company provided guidance for third-quarter fiscal 2017.
Brightcove expects revenue to be in the range of $37.5-$38.5 million.
On a non-GAAP basis, the company anticipates to report diluted net loss in a range of 10-11 cents per share. This figure excludes stock-based compensation of approximately $1.7 million and amortization of acquired intangible assets of approximately $700,000.
Zacks Rank & Stocks to Consider
Currently, Brightcove carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and IPG Photonics Corp. IPGP . Applied Optoelectronics and Kemet both sport a Zacks Rank #1 (Strong Buy) while IPG Photonics carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank Stocks here.
In the trailing four quarters, Applied Optoelectronics, Kemet and IPG Photonics have yielded positive average earnings surprises of 118.33%, 72.92% and 6.12%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaries," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Brightcove Inc. (BCOV): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Kemet Corporation (KEM): Free Stock Analysis Report
IPG Photonics Corporation (IPGP): 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.
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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Better-ranked stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and IPG Photonics Corp. IPGP . Click to get this free report Brightcove Inc. (BCOV): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report To read this article on Zacks.com click here. On a non-GAAP basis, the company anticipates to report diluted net loss in a range of 10-11 cents per share.
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Click to get this free report Brightcove Inc. (BCOV): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and IPG Photonics Corp. IPGP . On a non-GAAP basis, Brightcove reported diluted net loss of 16 cents per share, compared with the loss of a penny in the year-ago period.
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Click to get this free report Brightcove Inc. (BCOV): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and IPG Photonics Corp. IPGP . The company's non-GAAP operating loss was $5.5 million, compared with $302,000 reported year over year for second-quarter 2016.
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Better-ranked stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Kemet Corp. KEM and IPG Photonics Corp. IPGP . Click to get this free report Brightcove Inc. (BCOV): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report To read this article on Zacks.com click here. However, revenues increased 4.9% from the year-ago quarter to $38.8 million, which outpaced the Zacks Consensus Estimate of $37.2 million.
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476a5851-d93f-4c37-8f24-7e63fde27539
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9873.0
|
2017-07-28 00:00:00 UTC
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Iron Mountain (IRM) Q2 FFO Tops Estimates, Revenues Lag
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AAOI
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https://www.nasdaq.com/articles/iron-mountain-irm-q2-ffo-tops-estimates-revenues-lag-2017-07-28
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nan
|
nan
|
Iron Mountain Inc.IRM reported second-quarter 2017 normalized funds from operations (FFO) of 55 cents per share that surpassed the Zacks Consensus Estimate of 52 cents and increased 14.6% year over year.
However, revenues of $949.8 million missed the Zacks Consensus Estimate of $955.2 million but improved 7.5% year over year. At constant currency (cc), storage revenues were up 10.6% to $590.2 million while service revenues grew 5.1% to $359.6 million. The company achieved internal storage rental growth of 4.8% in the quarter.
Iron Mountain reported adjusted EBITDA of $318.1 million compared with $261.4 million in the year-ago quarter. Moreover, adjusted EBITDA margin improved 390 basis points (bps) to 33.5% from 29.6% in the year-ago quarter.
Per the company, year-over-year improvement in top-line and bottom-line result were mainly driven by synergies from Recall Holdings acquisition, transformation initiatives and continued strong performance of its storage rental business.
We note that on a year-to-date basis, the stock has gained 7%, outperforming the industry 's growth of 3.2%.
Quarter Details
Operating expenses decreased 1% year over year to $779.6 million. Selling, general & administrative (SG&A) expense decreased 14.3% from the year-ago quarter to $237.4 million. Depreciation & Amortization advanced 11.4% year over year to $128.1 million.
Operating income increased 76.1% from the year-ago quarter to $170.2 million. However, operating margin expanded 700 bps to 17.9%.
Iron Mountain Inc. Price, Consensus and EPS Surprise
Iron Mountain Incorporated Price, Consensus and EPS Surprise | Iron Mountain Incorporated Quote
Iron Mountain exited the quarter with cash and cash equivalents of $291 million compared with $295.6 million as of Mar 31, 2017. Long-term debt was $6.03 billion compared with $5.92 billion as of Mar 31, 2017.
Outlook
The company has reiterated outlook for the full year. Iron Mountain still expects revenues to be in the range of $3.750-$3.840 billion, reflecting 8-10% growth year over year.
Similarly, adjusted EBITDA guidance range of $1.250-$1.280 billion, representing growth of 16-19%, is still maintained. Adjusted FFO is expected to be in the range of $715-$760 million.
Internal storage rental growth rate is expected to be 2.5-3% in 2017. Capital expenditures along with non-real estate investment are projected to be in a bracket of $150-$170 million.
Our Take
Iron Mountain's diversified revenue base is a positive. It is noteworthy that 95% of the Fortune 1000 companies are on Iron Mountain's client list. Additionally, its strong product portfolio, increasing market share, and promising international business are the primary growth catalysts. Moreover, the company's entry into the data center market is likely to be a growth driver.
Furthermore, the company has an aggressive acquisition strategy to supplement organic growth in storage revenues. The acquisition of Recall Holdings has been positive for the company. Apart from generating synergies worth $105 million, the buyout also expanded its footprint in international markets.
However, the costs of such initiatives are expected to weigh on financials, especially as the company already has a highly leveraged balance sheet. Also, volatile currency environment and intensifying competition remain overhangs.
Zacks Rank & Stocks to Consider
Currently, Iron Mountain carries a Zacks Rank #4 (Sell). Better-ranked stocks in the tech sector include Alibaba Group Holding Ltd. BABA , Applied Optoelectronics, Inc. AAOI and Symantec Corp. SYMC . Alibaba Group Holding and Applied Optoelectronics both sport a Zacks Rank #1 (Strong Buy) while Symantec carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank Stocks here.
Long-term growth of Alibaba Group, Applied Optoelectronics and Symantec is projected to be 30.4%, 18.75% and 10.25%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Iron Mountain Incorporated (IRM): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Symantec Corporation (SYMC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Better-ranked stocks in the tech sector include Alibaba Group Holding Ltd. BABA , Applied Optoelectronics, Inc. AAOI and Symantec Corp. SYMC . Click to get this free report Iron Mountain Incorporated (IRM): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Per the company, year-over-year improvement in top-line and bottom-line result were mainly driven by synergies from Recall Holdings acquisition, transformation initiatives and continued strong performance of its storage rental business.
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Click to get this free report Iron Mountain Incorporated (IRM): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the tech sector include Alibaba Group Holding Ltd. BABA , Applied Optoelectronics, Inc. AAOI and Symantec Corp. SYMC . Iron Mountain Inc. Price, Consensus and EPS Surprise Iron Mountain Incorporated Price, Consensus and EPS Surprise | Iron Mountain Incorporated Quote Iron Mountain exited the quarter with cash and cash equivalents of $291 million compared with $295.6 million as of Mar 31, 2017.
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Click to get this free report Iron Mountain Incorporated (IRM): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the tech sector include Alibaba Group Holding Ltd. BABA , Applied Optoelectronics, Inc. AAOI and Symantec Corp. SYMC . Iron Mountain Inc. Price, Consensus and EPS Surprise Iron Mountain Incorporated Price, Consensus and EPS Surprise | Iron Mountain Incorporated Quote Iron Mountain exited the quarter with cash and cash equivalents of $291 million compared with $295.6 million as of Mar 31, 2017.
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Better-ranked stocks in the tech sector include Alibaba Group Holding Ltd. BABA , Applied Optoelectronics, Inc. AAOI and Symantec Corp. SYMC . Click to get this free report Iron Mountain Incorporated (IRM): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Iron Mountain reported adjusted EBITDA of $318.1 million compared with $261.4 million in the year-ago quarter.
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171470f2-0530-4372-a55b-e58587ba5059
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9874.0
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2017-07-28 00:00:00 UTC
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Expedia (EXPE) Surpasses Q2 Earnings, Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/expedia-expe-surpasses-q2-earnings-revenue-estimates-2017-07-28
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nan
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nan
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Expedia Inc.EXPE reported second-quarter 2017 adjusted earnings of 66 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents. Earnings were up 65% from the year-ago quarter.
Revenues of $2.59 billion were up 18.2% sequentially and 17.8% year over year and came ahead of the Zacks Consensus Estimate of $2.54 billion. Gross bookings decreased 3.4% sequentially but increased 12% year over year to $22.8 billion.
Shares increased 2.4% in afterhours trading in response to the better-than-expected results. Notably, year to date, shares of Expedia have outperformed the S&P 500 index. The stock returned 40.4% compared with the index's gain of around 10.8%.
In the quarter, Expedia acquired the majority stake in SilverRail, a rail ticket retailing and distribution platform developer. The buyout, which is likely to be supported by Expedia's successful partnership with SilverRail, will boost core OTA revenues, going forward.
We stay positive about the company's solid travel booking platform, a stronger travel market, contribution from a series of acquisitions and management execution.
The numbers in detail:
Revenues by Segment
Core OTA segment revenues were up 14.7% sequentially and 13.8% year over year to $2 billion, driven by growth in room nights in every major region.
Trivago revenues increased 21.1% sequentially and a massive 63.2% from the year-ago quarter to $328 million driven mainly by strong volumes and solid monetization.
Egencia was up 4.8% on a sequential basis but down 21.5% on a year-over-year basis to $135 million. Management stated that "Egencia is now the fourth largest travel management company in the world based on revenue."
HomeAway was up 9.8% sequentially and a massive 79.2% year over year to $224 million, driven mainly by strong growth in stayed room night.
Core OTA, trivago, Egencia and HomeAway contributed 78%, 13%, 5% and 9% of gross revenues (before inter-company eliminations), respectively.
Expedia, Inc. Price, Consensus and EPS Surprise
Expedia, Inc. Price, Consensus and EPS Surprise | Expedia, Inc. Quote
Revenues by Channel
Around 53.2% of total revenue was generated through the merchant business (direct sales), and another 26.5% came through the agency model (where Expedia operates as an agent of the supplier). Roughly 11.7% came from Advertising & Media with Home Away accounting for the remaining 8.7%.
Merchant, Agency, Advertising & Media and Home Away were up 17%, 19.8%, 17.5% and 21.1%, respectively on a sequential basis. On a year-over-year basis, Merchant, Agency, Advertising & Media and Home Away grew 13.7%, 11.8%, 49.5% and 30.2%, respectively.
Revenues by Geography
Around 56% of Expedia's quarterly revenues were generated domestically, with the remaining 47% came from international sources. The domestic business climbed 16.7% sequentially and 14.6% from a year ago. The international business grew 20.1% sequentially and 22.1% from the year-ago quarter.
Revenues by Product Line
Lodging revenues (67% of total revenue), which include hotel and HomeAway revenues, increased 16% in the quarter based on a 21% increase in room nights stayed, driven by growth in Brand Expedia, Hotels.com, EAN and HomeAway.
Air revenues increased 6% driven by 4% increase in revenue per ticket and 2% increase in air tickets sold. The year-over-year growth in advertising & media revenues reflected continued growth in trivago and Expedia Media Solutions. All other revenues increased 13%, reflecting growth in travel insurance and car rental products.
Operating Details
Adjusted EBITDA increased 89% sequentially and 19% year over year to $393 million. We note that Core OTA, Egencia and HomeAway EBITDA increased 14%, 5% and 3%, respectively on a year-over-year basis. However, trivago declined 78% over the same time frame.
On a sequential basis, Core OTA, HomeAway and Egencia EBITDA were up 59.5%, 550% and 3.7%, respectively. trivago EBITDA declined significantly in the reported quarter.
Operating income as a percentage of revenues was 4% compared with 1.2% in the year-ago quarter. The year-over-year improvement was due to lower technology & content (down 123 bps) and general & administrative (down 185 bps) expenses.
Total cloud spending was $21 million, up from $9 million from the year-ago quarter.
Balance Sheet
As of Jun 30, cash and short-term investments totaled $3.8 billion, up from $3.4 billion as of Mar 31. Net debt balance was $346.1 million compared with net debt of $667.7 million in the previous quarter.
So far in 2017, Expedia repurchased nearly 1 million shares for a total of $134 million.
Full Year Outlook
Expedia continues to expect adjusted EBITDA growth of 10-15% for 2017, including an increase in cloud spending. Excluding cloud expenses, growth is estimated to be 14-19%.
Management continues to expect trivago revenues to increase nearly 50% in 2017 with slight improvement in adjusted EBITDA margins.
Expedia's plan to ramp-up sales organization in the Egencia business will impact margins in the near term. Management expects Home Away's revenue growth to peak in the third quarter, which will also boost EBITDA growth.
Expedia expects total selling and marketing cost to grow faster than revenues for the remainder of the year. The company anticipates technology and content expenses to grow faster in the back half of the year.
Zacks Rank and Other Stocks to Consider
Currently, Expedia carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2.
Long-term earnings growth rates for Alibaba, Applied Optoelectronics and Symantec are projected to be 30.4%, 18.7% and 10.3%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Expedia, Inc. (EXPE): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Symantec Corporation (SYMC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2. Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. In the quarter, Expedia acquired the majority stake in SilverRail, a rail ticket retailing and distribution platform developer.
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Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2. The numbers in detail: Revenues by Segment Core OTA segment revenues were up 14.7% sequentially and 13.8% year over year to $2 billion, driven by growth in room nights in every major region.
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Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2. Expedia, Inc. Price, Consensus and EPS Surprise Expedia, Inc. Price, Consensus and EPS Surprise | Expedia, Inc. Quote Revenues by Channel Around 53.2% of total revenue was generated through the merchant business (direct sales), and another 26.5% came through the agency model (where Expedia operates as an agent of the supplier).
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Other stocks worth considering in the industry are Alibaba Group Holding Ltd. BABA , and Applied Optoelectronics, Inc. AAOI , both sporting a Zacks Rank #1, and Symantec Corp. SYMC with Zacks Rank #2. Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues of $2.59 billion were up 18.2% sequentially and 17.8% year over year and came ahead of the Zacks Consensus Estimate of $2.54 billion.
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02f0aa2b-14f4-46d5-b085-155612bd5169
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9875.0
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2017-07-28 00:00:00 UTC
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DST Systems (DST) Misses on Q2 Earnings, Revenues Beat
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AAOI
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https://www.nasdaq.com/articles/dst-systems-dst-misses-on-q2-earnings-revenues-beat-2017-07-28
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nan
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nan
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DST Systems Inc. DST posted second-quarter 2017 non-GAAP earnings (excluding amortization of intangible assets, restructuring charges and one-time items) of 76 cents per share, which missed the Zacks Consensus Estimate by a couple of cents. However, the company's non-GAAP earnings registered a year-over-year increase of 7%, primarily driven by higher revenues, effective cost management and lower share count.
Shares of the company declined more than 9%,yesterday, following the dismal bottom-line performance.
Notably, the stock price underperformed the industry in the past one year. While the industry gained 27.7%, the stock yielded a negative return of 11.6%.
Quarter Details
Total revenue in the second quarter came in at $656.2 million, up 68% from the year-ago quarter. Excluding out-of-the-pocket reimbursements, consolidated operating revenues increased 68.3% year over year to $629.4 million, ahead of the Zacks Consensus Estimate of $541 million.
According to Steve Hooley, Chairman, CEO and President of DST, ""Our second quarter results demonstrate execution on our organic growth initiatives and reflect the value potential of our acquisitions of Boston Financial Data Services, Inc. ("BFDS") and International Financial Data Services Limited ("IFDS U.K.")."
In first-quarter 2017, DST changed its reportable segment structure, which splits the previously reported Financial Services segment, into two new segments, Domestic Financial Services and International Financial Services. The Healthcare Services segment remains unchanged.
Domestic Financial Services operating revenues (excluding out-of-the-pocket reimbursements) rose 22.9% year over year and came in at $312 million. Benefits from businesses acquired from BFDS in 2017 and increased revenues from organic growth along with positive market movement at ALPS positively impacted the segment.
International Financial Services Segment increased from $31.2 million reported in the year-ago quarter to $231.1 million, primarily due to synergies from IFDS U.K acquisition.
Healthcare Services operating revenues were down 2.6% on a year-over-year basis and came in at $101.3 million, primarily due client migrations, reductions in membership and decline in healthcare technology spending resulting from changes in government policy.
Total cost and expenses soared 63.9% from the year-ago quarter to $525.2 million. Also, as a percentage of revenues, costs and expenses were up 230 basis points (bps) on a year-over-year basis to 83.4%.
Non-GAAP operating income increased 11% year over year and came in at $76.5 million, primarily due to the acquisition of BFDS in 2017. Operating margin was however down 620 bps on a year-over-year basis to 12.2%, primarily due to higher operating expenses as a percentage of revenues.
DST Systems reported non-GAAP net income of $47.3 million compared with $47.6 million reported in the year-ago quarter.
The company exited the quarter with $139.1 million in cash and equivalents compared with $260.4 million in the previous quarter. Long-term debt (including current portion) was $645.4 million compared with $730.7 million in the previous quarter.
During the second quarter, DST Systems repurchased roughly 1.2 million shares worth $75 million which exhausted the previous $300 million share-repurchase plan. Furthermore, in May 2017, the company authorised a new $300 million share repurchase program.
Additionally, the Board declared a quarterly cash dividend of 18 cents per share (an increase of 3% quarter-over-quarter).
Important Developments of 2017
DST Systems announced the completion of the acquisition of State Street's ownership interest in both Boston Financial Data Services, Inc. and International Financial Data Services Limited. According to Steve Hooley, Chairman and CEO of DST, "We are confident that the single-operator model for these businesses will allow us to significantly enhance our clients' experience and improve the execution of our long-term growth strategy."
Our Take
DST Systems reported mixed second-quarter results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same. However, both revenues and earnings grew year over year.
We are still of the opinion that DST Systems' business volume and massive scale of operation in Financial Services will attract new customers. Moreover, we expect steady contributions from acquisitions to support revenue growth. Continued share buybacks and dividend payments are the other encouraging factors.
However, persistent decline in registered accounts, ongoing consolidation in the U.S. financial services market and stiff competition from International Business Machines Corporation IBM and Fiserv Inc. FISV might put its fundamentals under pressure. Moreover, a high debt burden remains a major concern.
Currently, DST Systems carries a Zacks Rank #2 (Buy). Another top-ranked stock worth considering in the broader technology industry is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has an expected long-term EPS growth rate of 18.75%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
International Business Machines Corporation (IBM): Free Stock Analysis Report
DST Systems, Inc. (DST): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Fiserv, Inc. (FISV): 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.
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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Another top-ranked stock worth considering in the broader technology industry is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report DST Systems, Inc. (DST): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. However, the company's non-GAAP earnings registered a year-over-year increase of 7%, primarily driven by higher revenues, effective cost management and lower share count.
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Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report DST Systems, Inc. (DST): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. Another top-ranked stock worth considering in the broader technology industry is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Excluding out-of-the-pocket reimbursements, consolidated operating revenues increased 68.3% year over year to $629.4 million, ahead of the Zacks Consensus Estimate of $541 million.
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Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report DST Systems, Inc. (DST): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. Another top-ranked stock worth considering in the broader technology industry is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). In first-quarter 2017, DST changed its reportable segment structure, which splits the previously reported Financial Services segment, into two new segments, Domestic Financial Services and International Financial Services.
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Another top-ranked stock worth considering in the broader technology industry is Applied Optoelectronics, Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report DST Systems, Inc. (DST): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. In first-quarter 2017, DST changed its reportable segment structure, which splits the previously reported Financial Services segment, into two new segments, Domestic Financial Services and International Financial Services.
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58f71129-809f-4f21-9c1f-fe44d924a8c6
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9876.0
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2017-07-28 00:00:00 UTC
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Microsemi (MSCC) Beats Q3 Earnings Estimates, Sales In Line
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AAOI
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https://www.nasdaq.com/articles/microsemi-mscc-beats-q3-earnings-estimates-sales-in-line-2017-07-28
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nan
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nan
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Microsemi CorporationMSCC reported third-quarter fiscal 2017 non-GAAP earnings of 99 cents per share, which beat the Zacks Consensus Estimate by 18 cents. The figure grew 35.6% from the year-ago quarter and 8.8% from the previous quarter. The results were driven by improving revenue mix and operational efficiency.
Net sales of $458.1 million were in line with the Zacks Consensus Estimate. The figure increased 6.2% year over year and 3.4% quarter over quarter and was within the management's guided range of $448-$468 million. The top-line growth benefited from robust contribution from the data center end market.
Management provided positive guidance for the fourth quarter. Despite sluggishness in China related to communications end market (expected to recover late year), we believe that Microsemi is well positioned to grow on the back of strong demand for its products in the data center as well as defense & aerospace end market.
Microsemi has lost 0.6% of its value year to date versus the 17.3% growth of its industry . We believe that the aforesaid factors will help the stock rebound going forward.
Quarter Details
Microsemi generates revenues from the Communications, Defense & Aerospace, Data Center and Industrial markets.
Microsemi Corporation Price, Consensus and EPS Surprise
Microsemi Corporation Price, Consensus and EPS Surprise | Microsemi Corporation Quote
Around 34.5% of Microsemi's quarterly revenues came from its largest end market - Communications - which decreased 6% sequentially and almost 3% year over year to $158 million. The decrease was primarily attributed to softness in China, which negatively impacted broadband gateway and voice circuit products sales.
Optical communications products were up 5% sequentially and 17% year over year, benefiting from a stronger than expected initial ramp of the 100-gig metro build out by North American service providers.
The Defense & Aerospace market generated 25% of sales. The figure increased 2% sequentially and 1% year over year to $114 million. Radiation-tolerant FPGA revenues grew 20% sequentially.
Microsemi now expects radio-tolerant FPGA revenue growth of approximately 40% in fiscal 2017.
The Data Center segment generated 23% of sales. The segment sales increased 15% sequentially and 23% year over year to $113 million. Management noted that results benefited from increasing usage of its smart controller solutions on Intel's INTC newly released Parley platform. The company's performance storage solution including NVMe tripled year over year.
Field-programmable gate array (FPGA) sales grew 12% from the year-ago quarter. Moreover, scalable storage solutions sales grew 17% sequentially and 38% year over year.
Industrial market generated 16% of sales, up 14% sequentially and year over year. Medical radio shipments and semiconductor capital equipment applications drove the growth.
Management expects modest, but continued strength in industrial end markets against the backdrop of a slowly improving economy, improving energy markets, continuing semi-cap strength as well as demand for emerging industrial automation and motor control applications.
Operational Details
Non-GAAP gross margin was 63.9%, down 30 basis points (bps) sequentially but up 200 bps year over year. The increase was driven by improved revenue mix.
EBITDA was $159.3 million up 5.6% sequentially and 19.1% from the year-ago quarter.
Non GAAP operating expense decreased 1% year over year and 0.5% sequentially to $161.5 million. As percentage of revenues, operating expense fell 140 bps from the previous quarter and 260 bps from the year-ago quarter.
As a result, non GAAP operating margin expanded 380 bps from the year-ago quarter and 120 bps from the previous quarter to 32.3%
Balance Sheet
Cash and cash equivalents balance at the end of the fiscal third quarter was $166.4 million, down from $191.2 million in the previous quarter. Free cash flow increased to $108.1 million as compared with $105.5 reported in the previous quarter.
Inventories were $231.9 million compared with $213.6 million in the previous quarter. Accounts receivable was $246.5 million against $232.4 million at the end of the prior quarter.
Microsemi authorized a new share buyback plan for the repurchase of up to $250 million of the company's common stock before Jul 31, 2019.
Guidance
Microsemi expects fourth-quarter fiscal 2017 revenues in the range of $463-$487 million. The Zacks Consensus Estimate is currently pegged at $469.7 million.
Management expects non-GAAP gross margins to be between 63% and 64%. SG&A is expected to decrease between $2 million and $3 million. R&D expense is expected to be flat or up $1 million.
Microsemi expects non-GAAP interest and other expense to be between $21 million and $22 million.
Non-GAAP earnings are likely to be in the range of $1.02-$1.14 per share. The Zacks Consensus estimate is currently pegged at 89 cents.
Management continues to expect free cash flows to exceed $400 million in 2017.
Zacks Rank & Key Picks
Microsemi currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Both the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Infineon is expected to report earnings on Aug 1, while Applied Optoelectronics is set to report on Aug 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Infineon Technologies AG (IFNNY): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
Microsemi Corporation (MSCC): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Click to get this free report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report Microsemi Corporation (MSCC): Free Stock Analysis Report To read this article on Zacks.com click here. Quarter Details Microsemi generates revenues from the Communications, Defense & Aerospace, Data Center and Industrial markets.
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Click to get this free report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report Microsemi Corporation (MSCC): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Microsemi Corporation Price, Consensus and EPS Surprise Microsemi Corporation Price, Consensus and EPS Surprise | Microsemi Corporation Quote Around 34.5% of Microsemi's quarterly revenues came from its largest end market - Communications - which decreased 6% sequentially and almost 3% year over year to $158 million.
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Click to get this free report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report Microsemi Corporation (MSCC): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Microsemi Corporation Price, Consensus and EPS Surprise Microsemi Corporation Price, Consensus and EPS Surprise | Microsemi Corporation Quote Around 34.5% of Microsemi's quarterly revenues came from its largest end market - Communications - which decreased 6% sequentially and almost 3% year over year to $158 million.
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Better-ranked stocks in the broader technology sector are Infineon IFNNY and Applied Optoelectronics AAOI . Click to get this free report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report Microsemi Corporation (MSCC): Free Stock Analysis Report To read this article on Zacks.com click here. The figure increased 6.2% year over year and 3.4% quarter over quarter and was within the management's guided range of $448-$468 million.
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9877.0
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2017-07-27 00:00:00 UTC
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Teradata (TDC) Q2 Earnings Miss, Transition Takes a Toll
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AAOI
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https://www.nasdaq.com/articles/teradata-tdc-q2-earnings-miss-transition-takes-a-toll-2017-07-27
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Teradata CorporationTDC reported dismal results for the second quarter of 2017, wherein its top and bottom lines not only fell short of the respective Zacks Consensus Estimate but also marked significant year over year decline.
The company reported adjusted earnings (excluding all one-time items but including stock-based compensation expenses) of 13 cents, plunging 80% from the year-ago quarter's earnings of 65 cents. Adjusted earnings also came below the Zacks Consensus Estimate of 22 cents.
On non-GAAP basis, Teradata's earnings tumbled 69% year over year to 22 cents per share, mainly due to decline in revenues.
Notably, Teradata has underperformed the industry it belongs to in the year-to-date period. During the said period, the stock has returned merely 8.2% while the industry gained 17%.
Revenue Details
Total revenue of $513 million missed the Zacks Consensus Estimate of $513.35 million. Moreover, it plunged 14% on a year-over-year basis. This was mainly due to the company's ongoing business transformation activity, under which its large customers have begun shifting to subscription pricing offerings.
Products and Cloud revenues decreased 32% year over year to $166 million. Services revenues fell 3% on a year-over-year basis to $347 million. Revenues from Americas Data and Analytics decreased 17% year over year while that from International Data and Analytics grew 1% from the prior-year quarter.
Margin
Non-GAAP gross margin contracted 420 basis points (bps) from the year-ago quarter to 51.7% mainly due to "a higher mix of services versus product revenue". Also, services had much lower margins which more than offsets the higher margins from product sales.
The company reported non-GAAP operating income of $47 million, down from $130 million reported in the prior-year quarter. Non-GAAP operating margin shrunk to 9.2% from 23% reported year over year mainly due to lower revenue, shrink in gross margin and increased operating expenses to support the company's strategic initiatives.
Teradata Corporation Price, Consensus and EPS Surprise
Teradata Corporation Price, Consensus and EPS Surprise | Teradata Corporation Quote
Balance Sheet & Share Repurchase
Teradata exited the quarter with $1.085 billion in cash and cash equivalents, compared with $1.164 billion at the end of the previous quarter. Teradata had long-term debt (excluding current portion) of $508 million at the end of the second quarter compared with $523 million at the end of first-quarter 2017.
In the second quarter, Teradata generated cash flow from operations of $61 million and free cash flow of $45 million. Year-to-date, the company generated $309 million of cash flow from operational activities and $275 million of free cash flow.
Teradata repurchased 3.7 million shares for $108 million during the second quarter, while 5.1 million shares for $151 million in the first half of 2017. Concurrent to its second quarter earnings release, the company announced that it intends to buyback $300 million worth of its common stock in the second half of this year. The company will use available cash from U.S. operations and its totally unused $400 million of revolving credit facility.
Guidance
The company is finding it difficult to estimate the actual impact of its ongoing business transformation initiatives on its full-year revenue. Teradata expects 2017 revenues to come in the range of $2.095 billion to $2.140 billion, representing a decline of 10% to 8%. Excluding the revenues of Marketing Applications business, which it had divested last year, the company projects revenues to decline between 5% and 7%, which is narrower than its earlier projected range of 5% to 10%.
Teradata also provided earnings outlook for the full year. The company projects to report GAAP earnings in the range of $0.26 to $0.31 while non-GAAP earnings are estimated to come between $1.22 and $1.27.
The company did not provide any guidance for the third quarter but projects that fourth quarter to be better than the current quarter.
To Conclude
Teradata revenues are getting impacted by the company's ongoing business transformation. Also, restructuring related costs, a sluggish spending environment in the domestic market and increasing competition from the likes of International Business Machines IBM and Oracle Corp ORCL and others will continue to weigh on its financials.
However, over the long run, the company is expected to benefit from transition to a subscription-based revenue model. Plus, strategic partnerships with the other big tech giants and acquisitions should bode well for long-term growth.
Currently, Teradata has a Zacks Rank #3 (Hold).
Stock to Consider
A better-ranked stock in the broader technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
The company has delivered an average positive earnings surprise of 118.33% in the trailing four quarters and has a long-term expected EPS growth rate of 18.8%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Teradata Corporation (TDC): Free Stock Analysis Report
International Business Machines Corporation (IBM): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Stock to Consider A better-ranked stock in the broader technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Click to get this free report Teradata Corporation (TDC): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Concurrent to its second quarter earnings release, the company announced that it intends to buyback $300 million worth of its common stock in the second half of this year.
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Click to get this free report Teradata Corporation (TDC): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Stock to Consider A better-ranked stock in the broader technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Non-GAAP operating margin shrunk to 9.2% from 23% reported year over year mainly due to lower revenue, shrink in gross margin and increased operating expenses to support the company's strategic initiatives.
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Click to get this free report Teradata Corporation (TDC): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Stock to Consider A better-ranked stock in the broader technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Teradata Corporation Price, Consensus and EPS Surprise Teradata Corporation Price, Consensus and EPS Surprise | Teradata Corporation Quote Balance Sheet & Share Repurchase Teradata exited the quarter with $1.085 billion in cash and cash equivalents, compared with $1.164 billion at the end of the previous quarter.
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Stock to Consider A better-ranked stock in the broader technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Click to get this free report Teradata Corporation (TDC): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. On non-GAAP basis, Teradata's earnings tumbled 69% year over year to 22 cents per share, mainly due to decline in revenues.
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9878.0
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2017-07-27 00:00:00 UTC
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Zacks.com featured highlights: Limoneira, ABIOMED, DAQO New Energy, Ternium and Applied Optoelectronics
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AAOI
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https://www.nasdaq.com/articles/zacks.com-featured-highlights%3A-limoneira-abiomed-daqo-new-energy-ternium-and-applied
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For Immediate Release
Chicago, IL -July 27, 2017 - Stocks in this week's article include Limoneira Company (NASDAQ: LMNR - Free Report ), ABIOMED, Inc. (NASDAQ: ABMD - Free Report ), DAQO New Energy Corp. (NYSE: DQ - Free Report ), Ternium S.A. (NYSE: TX - Free Report ) and Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ).
Check Out 5 Profitable Stocks for Spectacular Gains
A company with strong profitability is able to meet all its business-related costs and expenses and still provide satisfactory returns to its investors. Although a fundamentally weak profitable company may face certain problems, recent studies indicate that a company with a high profitability level is a great investment choice.
Here, we have used ratio analysis to evaluate the profitability of a company. There are four vital profitability ratios, which include gross income ratio, operating income ratio, pre-tax profit margin and net income ratio. From these, we have selected net income ratio, which is the most widely used and transparent profitability ratio.
Net Income Ratio
Net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total revenue. Using net income ratio, one can determine a company's ability to meet operating and non-operating expenses. A higher net income ratio usually implies a company's ability to generate ample revenues and successfully manage all its business functions.
Screening Parameters
As net income ratio is not the only indicator of future winners, we have added a few more criteria to arrive at a winning strategy.
Zacks Rank equal to #1: Only Zacks Rank #1 (Strong Buy) stocks are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off. You can see the complete list of today's Zacks #1 Rank stocks here .
12-Month Trailing Sales and Net Income Growth Higher than X Industry: Stocks that possess higher sales and net income growth in the last 12 months showcase better financial performance.
12-Month Trailing Net Income Ratio Higher than X Industry: High net income ratio indicates a company's solid profitability.
% Rating Strong Buy greater than 70%: This indicates that 70% of the analysts covering these stocks are optimistic.
These few parameters narrowed down the universe of over 7,869 stocks to only eight.
Here are five of the eight stocks that qualified the screen:
Limoneira Company (NASDAQ: LMNR - Free Report ) is an agribusiness and real estate development company. It has an average four-quarterpositive earnings surprise of 14.7%.
ABIOMED, Inc. (NASDAQ: ABMD - Free Report ) is a developer, manufacturer and marketer of medical products. It has an average four-quarterpositive earnings surprise of 8.1%.
DAQO New Energy Corp. (NYSE: DQ - Free Report ) is a manufacturer and seller of polysilicon and wafers. It has an average four-quarterpositive earnings surprise of 22.1%.
Ternium S.A. (NYSE: TX - Free Report ) is a manufacturer and processer of various steel products. It has an average four-quarter positive earnings surprise of 20%.
Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) is a designer, manufacturer and seller of fiber-optic networking products. It has an average four-quarter positive earnings surprise of 118.3%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
Get the full Report on LMNR - FREE
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
DAQO New Energy Corp. (DQ): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
ABIOMED, Inc. (ABMD): Free Stock Analysis Report
Ternium S.A. (TX): Free Stock Analysis Report
Limoneira Co (LMNR): 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.
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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For Immediate Release Chicago, IL -July 27, 2017 - Stocks in this week's article include Limoneira Company (NASDAQ: LMNR - Free Report ), ABIOMED, Inc. (NASDAQ: ABMD - Free Report ), DAQO New Energy Corp. (NYSE: DQ - Free Report ), Ternium S.A. (NYSE: TX - Free Report ) and Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ). Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) is a designer, manufacturer and seller of fiber-optic networking products. Get the full Report on LMNR - FREE Get the full Report on ABMD - FREE Get the full Report on DQ - FREE Get the full Report on TX - FREE Get the full Report on AAOI - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL -July 27, 2017 - Stocks in this week's article include Limoneira Company (NASDAQ: LMNR - Free Report ), ABIOMED, Inc. (NASDAQ: ABMD - Free Report ), DAQO New Energy Corp. (NYSE: DQ - Free Report ), Ternium S.A. (NYSE: TX - Free Report ) and Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ). Get the full Report on LMNR - FREE Get the full Report on ABMD - FREE Get the full Report on DQ - FREE Get the full Report on TX - FREE Get the full Report on AAOI - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report DAQO New Energy Corp. (DQ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Ternium S.A. (TX): Free Stock Analysis Report Limoneira Co (LMNR): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL -July 27, 2017 - Stocks in this week's article include Limoneira Company (NASDAQ: LMNR - Free Report ), ABIOMED, Inc. (NASDAQ: ABMD - Free Report ), DAQO New Energy Corp. (NYSE: DQ - Free Report ), Ternium S.A. (NYSE: TX - Free Report ) and Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ). Get the full Report on LMNR - FREE Get the full Report on ABMD - FREE Get the full Report on DQ - FREE Get the full Report on TX - FREE Get the full Report on AAOI - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report DAQO New Energy Corp. (DQ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Ternium S.A. (TX): Free Stock Analysis Report Limoneira Co (LMNR): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report DAQO New Energy Corp. (DQ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Ternium S.A. (TX): Free Stock Analysis Report Limoneira Co (LMNR): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL -July 27, 2017 - Stocks in this week's article include Limoneira Company (NASDAQ: LMNR - Free Report ), ABIOMED, Inc. (NASDAQ: ABMD - Free Report ), DAQO New Energy Corp. (NYSE: DQ - Free Report ), Ternium S.A. (NYSE: TX - Free Report ) and Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ). Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) is a designer, manufacturer and seller of fiber-optic networking products.
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dfd6da23-432d-4200-9bd8-e32a2b32027e
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9879.0
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2017-07-27 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Applied Optoelectronics, The Brink's Company, Facebook, Healthcare Services Group and LPL Financial
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AAOI
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-applied-optoelectronics-the-brinks-company-facebook
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nan
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For Immediate Release
Chicago, IL - July 27, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Applied Optoelectronics (NASDAQ:AAOI - Free Report), The Brink's Company (NYSE:BCO - Free Report) , Facebook (NASDAQ:FB - Free Report), Healthcare Services Group (NASDAQ: HCSG - Free Report) and LPL Financial (NASDAQ:LPLA - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
5 Stocks Surging Through Highs
Despite an early disappointment from Alphabet, the NASDAQ fought off the pressure to barely finish at record highs. The large caps led the way to highs on the session as earnings season continues to roll on. As long as earnings can continue to support stocks up here the market can keep rocking and rolling.
Check out Dave's Daily Dive video above where I break down the market action today!!!
Each day I, Dave Bartosiak of Zacks.com (Twitter @bartosiastics) dive into the charts, pointing out key price action and levels for you to watch.
But it doesn't stop there because the highlight of today's video, which you can see for free by clicking above, is where I uncover five Zacks Rank #1 (Strong Buy) stocks that are breaking out to new 52-week highs today. These stocks have a ton of momentum behind them and are charging higher. The list of stocks he covers today include:
Applied Optoelectronics (NASDAQ:AAOI - Free Report)
Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote
Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. It offers optical modules, lasers, transmitters and transceivers, and turn-key equipment, as well as headend, node, and distribution equipment. The company sells its products to Internet data center operators, CATV and telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels worldwide.
The Brink's Company (NYSE:BCO - Free Report)
Brink's Company (The) Price and Consensus | Brink's Company (The) Quote
The Brink's Company provides secure transportation, cash management services, and other security-related services worldwide. The company offers cash-in-transit services, including armored vehicle transportation of valuables; automated teller machine (ATM) services, such as cash replenishment, replenishment forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, installation services, and first and second line maintenance; and network infrastructure services.
Facebook (NASDAQ:FB - Free Report)
Facebook, Inc. Price and Consensus | Facebook, Inc. Quote
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its solutions include Facebook Website and mobile application that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers; Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application to communicate with people and businesses across platforms and devices; and WhatsApp Messenger, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others.
Healthcare Services Group (NASDAQ:HCSG - Free Report)
Healthcare Services Group, Inc. Price and Consensus
Healthcare Services Group, Inc. Price and Consensus | Healthcare Services Group, Inc. Quote
Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary.
LPL Financial (NASDAQ:LPLA - Free Report)
LPL Financial Holdings Inc. Price and Consensus | LPL Financial Holdings Inc. Quote
LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, alternative investments such as non-traded real estate investment trusts and business development companies, retirement and 529 education savings plans, fixed income, and insurance. The company's fee-based platforms provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities.
Now See All Our Private Trades
While today's Zacks Rank #1 new additions are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks trades >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on AAOI - FREE
Get the full Report on BCO - FREE
Get the full Report on FB - FREE
Get the full Report on HCSG - FREE
Get the full Report on LPLA - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report
Facebook, Inc. (FB): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
Brink's Company (The) (BCO): 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.
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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Stocks recently featured in the blog include Applied Optoelectronics (NASDAQ:AAOI - Free Report), The Brink's Company (NYSE:BCO - Free Report) , Facebook (NASDAQ:FB - Free Report), Healthcare Services Group (NASDAQ: HCSG - Free Report) and LPL Financial (NASDAQ:LPLA - Free Report) . The list of stocks he covers today include: Applied Optoelectronics (NASDAQ:AAOI - Free Report) Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Get the full Report on FB - FREE Get the full Report on HCSG - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Applied Optoelectronics (NASDAQ:AAOI - Free Report), The Brink's Company (NYSE:BCO - Free Report) , Facebook (NASDAQ:FB - Free Report), Healthcare Services Group (NASDAQ: HCSG - Free Report) and LPL Financial (NASDAQ:LPLA - Free Report) . Click to get this free report Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. The list of stocks he covers today include: Applied Optoelectronics (NASDAQ:AAOI - Free Report) Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets.
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Stocks recently featured in the blog include Applied Optoelectronics (NASDAQ:AAOI - Free Report), The Brink's Company (NYSE:BCO - Free Report) , Facebook (NASDAQ:FB - Free Report), Healthcare Services Group (NASDAQ: HCSG - Free Report) and LPL Financial (NASDAQ:LPLA - Free Report) . Get the full Report on AAOI - FREE Get the full Report on BCO - FREE Get the full Report on FB - FREE Get the full Report on HCSG - FREE Get the full Report on LPLA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Applied Optoelectronics (NASDAQ:AAOI - Free Report), The Brink's Company (NYSE:BCO - Free Report) , Facebook (NASDAQ:FB - Free Report), Healthcare Services Group (NASDAQ: HCSG - Free Report) and LPL Financial (NASDAQ:LPLA - Free Report) . Click to get this free report Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. The list of stocks he covers today include: Applied Optoelectronics (NASDAQ:AAOI - Free Report) Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets.
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6a6708ba-b8e9-4fc8-8b3c-3d1c2f407b5d
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9880.0
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2017-07-27 00:00:00 UTC
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Equifax (EFX) Q2 Earnings Top, Revenues Miss, Updates View
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AAOI
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https://www.nasdaq.com/articles/equifax-efx-q2-earnings-top-revenues-miss-updates-view-2017-07-27
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nan
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nan
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Equifax Inc. EFX reported mixed results for second-quarter 2017. The company's adjusted earnings (excluding amortization expenses, Veda Group acquisition-related charges and other one-time items) per share from continuing operations of $1.60 surpassed the Zacks Consensus Estimate of $1.57 and also jumped 11.9% year over year.
On a GAAP basis, the company reported earnings of $1.36 per share, up from the year-ago quarter tally of $1.08 per share. The strong year-over-year bottom-line growth can primarily be attributed to solid top-line performance and stringent cost management, which was partially offset by a marginal increase in the number of total outstanding shares.
Notably, the stock's share movement has compared unfavorably with the industry in the past one-year period. Equifax returned 9.5% while the industry gained 22.6%.
Revenues
Equifax's revenues of $856.7 million lagged the Zacks Consensus Estimate of $861 million as well as management's guided range of $857-$862 million. However, the figure was up 6% on a year-over-year basis.
According to Richard F. Smith, Chairman and Chief Executive Officer at Equifax, "Second quarter performance reflects outstanding execution by the team and the strength of our unique portfolio of businesses."
The company made slight changes in its reportable segments from first-quarter 2016. The U.S. Information Solutions (USIS) and Workforce Solutions remained unchanged, while Personal Solutions was renamed to Global Consumer Solutions.
Segment wise, total USIS revenues were up 8% year over year to $331.9 million. Among its sub-segments, growth was recorded in Online Information Solutions (6%), Mortgage Solutions Services (10%) and Financial Marketing Services (15%).
International revenues (including Europe, the Asia Pacific, Canada and Latin America) advanced 6% year over year to $231.4 million. On a constant-currency basis, revenues increased 10%. Growth was mainly driven by the Veda Group acquisition, which increased the Asia-Pacific region's contribution to revenues to $76.5 million, up 6% year over year. Moreover, revenues registered an increase of 13%, 4% and 2% in Latin America, Canada and Europe, respectively.
Revenues from the Workforce Solutions segment climbed 10% year over year to $194.5 million, primarily on the back of 19% revenue growth in Verification Services, which more-than offset 5% decline in Employer Services.
Global Consumer Solutions contributed $98.9 million to total revenue, reflecting an 8% year-over-year decline. On a constant-currency basis, revenues dropped 7%.
Operating Results
Equifax's adjusted EBITDA increased approximately 13% to $334.7 million. Consequently, adjusted operating EBITDA margin expanded 250 basis points (bps) to 39.1%. Adjusted net income came in at $194.8 million or $1.60 per share compared with $172.7 million or $1.43 per share reported a year ago.
Balance Sheet & Cash Flow
Equifax exited the quarter with $403.9 million in cash and cash equivalents, up from the previous quarter's balance of $123.2 million. Total long-term debt (excluding current portion) was $2.04 billion, flat quarter over quarter. During six months ended Jun 30, 2017, Equifax generated cash flow of $329.1 million from operational activities. The company paid 39 cents per share as dividends in the second quarter.
Guidance
For the quarter, Equifax projects revenues in a range of $853-$861 million (mid-point: $857 million), while the Zacks Consensus Estimate is pegged at $855 million. Adjusted earnings per share are projected to be between $1.50 and $1.54 (midpoint: $1.52). The earnings guidance range at its mid-point is slightly lower than the Zacks Consensus Estimate of $1.53.
Furthermore, Equifax updated full-year 2017 outlook. The company now expects revenues in the range of $3.395-$3.425 billion (previous guidance $3.375-$3.425 billion). The Zacks Consensus Estimate is pegged at $3.41 billion. Adjusted earnings per share are now anticipated to be between $6.02 and $6.10 (previous guidance $5.96 and $6.10). The Zacks Consensus Estimate is pegged at $6.06.
Our Take
Equifax posted mixed results for the second quarter. However, earnings and revenues both recorded year-over-year growth. The company also updated outlook for full-year 2017.
We believe that management's efforts, such as strategic initiatives for product innovation, expansion of data assets through acquisitions and continuous share gains in America, should act as tailwinds. Further, the company's strong correlation with the consumer and financial markets, along with exposure in the U.S. and Europe are likely to propel growth, moving ahead.
However, we expect the company's investments in new initiatives to weigh on its upcoming quarterly earnings. Additionally, uncertainty surrounding IT spending and the strengthening U.S. dollar are concerns. Moreover, increasing competition from the likes of Fiserv FISV and Total System Services TSS are the other factors likely to affect earnings in the near term.
Currently, Equifax carries a Zacks Rank #3 (Hold).
A better ranked-stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has a long-term EPS growth rate of 18.75%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Equifax, Inc. (EFX): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Total System Services, Inc. (TSS): Free Stock Analysis Report
Fiserv, Inc. (FISV): 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.
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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A better ranked-stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Equifax, Inc. (EFX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Total System Services, Inc. (TSS): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. The strong year-over-year bottom-line growth can primarily be attributed to solid top-line performance and stringent cost management, which was partially offset by a marginal increase in the number of total outstanding shares.
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Click to get this free report Equifax, Inc. (EFX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Total System Services, Inc. (TSS): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. A better ranked-stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Global Consumer Solutions contributed $98.9 million to total revenue, reflecting an 8% year-over-year decline.
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Click to get this free report Equifax, Inc. (EFX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Total System Services, Inc. (TSS): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. A better ranked-stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Revenues Equifax's revenues of $856.7 million lagged the Zacks Consensus Estimate of $861 million as well as management's guided range of $857-$862 million.
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A better ranked-stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Equifax, Inc. (EFX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Total System Services, Inc. (TSS): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues Equifax's revenues of $856.7 million lagged the Zacks Consensus Estimate of $861 million as well as management's guided range of $857-$862 million.
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46b6dc72-76a6-4951-866f-74fbb411465d
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9881.0
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2017-07-27 00:00:00 UTC
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F5 Networks (FFIV) Q3 Earnings & Revenues Miss Estimates
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AAOI
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https://www.nasdaq.com/articles/f5-networks-ffiv-q3-earnings-revenues-miss-estimates-2017-07-27
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nan
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nan
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F5 Networks Inc. FFIV reported third-quarter fiscal 2017 adjusted earnings per share (excluding amortization of intangible assets and other one-time items but including stock-based compensation) on a proportionate tax basis of $1.55, missing the Zacks Consensus Estimate of $1.59 per share. However, earnings improved from $1.41 per share reported in the year-ago quarter.
On a non-GAAP basis, the company reported earnings of $2.03 per share compared with $1.81 per share reported in the year-ago quarter.
In the last one year, the company's stock gained roughly 4.2%, underperforming the industry 's gain of 14.9%.
Revenues
Although F5 Networks' revenues grew 4.3% year over year to $517.8 million, it lagged the management guided range of $520-$530 million. Reported revenues also missed the Zacks Consensus Estimate of $525 million.
Revenues were boosted by 6.6% increase in service revenues and 1.6% increase in Product revenues on a year-over-year basis.
Notably, F5 Networks' "Good, Better, Best" (GBB) pricing strategies and higher competencies of BIG-IQ platform also helped in streamlining product portfolio and driving year-over-year revenue growth.
Geographically, on a year-over-year basis, revenues from the Americas were up 6% and contributed 57% to total revenue. EMEA increased 4% and accounted for 23% of total revenue. Asia-Pacific was up 3% on a year-over-year basis, representing 15% of total revenue while Japan revenues decreased 8% and represented 4% of total revenue.
By verticals, Enterprise, Service providers and Government (including 6% from the U.S. federal) accounted for 65%, 20% and 14% of total revenue, respectively.
The company's distributors Ingram Micro, Tech Data TECD and Westcon accounted for 16.8%, 12.2% and 19.1%, of total revenue, respectively.
Operating Results
F5 Networks' non-GAAP gross profit (excluding amortization of intangible assets, other one-time items and stock-based compensation) was up 3.8% on a year-over-year basis and came in at $435.5 million. Non-GAAP gross margin decreased slightly during the quarter and came in at 84.1%, primarily due to higher cost of sales.
The company's non-GAAP operating margin (excluding amortization of intangible assets, other one-time items and stock-based compensation) decreased 55 basis points (bps) from the year-ago quarter to 35.8%, primarily due to higher non-GAAP operating expenses as a percentage of revenues. Operating expenses, as a percentage of revenues, increased 17 bps on a year-over-year basis.
The company's non-GAAP net income (excluding amortization of intangible assets, other one-time items and stock-based compensation) came in at approximately $130.8 million compared with $121.7 million reported in the year-ago quarter. On a GAAP basis, net income came in at $97.7 million compared with $91.8 million reported in the year-ago period.
Balance Sheet & Cash Flow
F5 Networks exited the quarter with cash, cash equivalents and short-term investments of approximately $1.014 billion. Receivables were $295.1 million at the end of the quarter.
The company's balance sheet does not have any long-term debt. It reported cash flow from operations of $163 million during the quarter. During the quarter, F5 Networks repurchased approximately 1.2 million shares for $150 million.
Guidance
For fourth-quarter fiscal 2017, F5 Networks expects revenues in the range of $530-$540 million. The Zacks Consensus Estimate is pegged at $550 million. Non-GAAP gross margin is anticipated to be roughly 84.5%. The company expects non-GAAP earnings for fourth-quarter fiscal 2017 in the range of $2.20-$2.23 per share. The Zacks Consensus Estimate is pegged at $1.76 per share. Non-GAAP effective tax rate is expected to be 31%.
Our Take
F5 Networks reported dismal third-quarter fiscal 2017 results, as both the bottom line and top line missed the Zacks Consensus Estimate. However, year-over-year comparisons on both counts were favorable. Nonetheless, the company provided tepid fourth-quarter revenue guidance.
It is worth mentioning that the company's GBB pricing strategy and its BIG-IQ platform remain tailwinds. Revenue growth seems to be steady and was positively impacted by strength across all business segments along with higher software revenues.
We believe that the company's product refreshes will boost revenues, going forward. Moreover, these initiatives are expected to expand its total addressable market and result in client wins.
Better execution and focus on enterprise and service providers have placed F5 Networks well in the application delivery controller market. Nevertheless, a volatile spending atmosphere and competition from Juniper Networks Inc. JNPR remain concerns.
Currently, F5 Networks carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has a long-term EPS growth rate of 18.75%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
F5 Networks, Inc. (FFIV): Free Stock Analysis Report
Juniper Networks, Inc. (JNPR): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Tech Data Corporation (TECD): 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.
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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A better-ranked stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a a Zacks Rank #1 (Strong Buy). Click to get this free report F5 Networks, Inc. (FFIV): Free Stock Analysis Report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Tech Data Corporation (TECD): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, F5 Networks' "Good, Better, Best" (GBB) pricing strategies and higher competencies of BIG-IQ platform also helped in streamlining product portfolio and driving year-over-year revenue growth.
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Click to get this free report F5 Networks, Inc. (FFIV): Free Stock Analysis Report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Tech Data Corporation (TECD): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a a Zacks Rank #1 (Strong Buy). F5 Networks Inc. FFIV reported third-quarter fiscal 2017 adjusted earnings per share (excluding amortization of intangible assets and other one-time items but including stock-based compensation) on a proportionate tax basis of $1.55, missing the Zacks Consensus Estimate of $1.59 per share.
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Click to get this free report F5 Networks, Inc. (FFIV): Free Stock Analysis Report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Tech Data Corporation (TECD): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a a Zacks Rank #1 (Strong Buy). F5 Networks Inc. FFIV reported third-quarter fiscal 2017 adjusted earnings per share (excluding amortization of intangible assets and other one-time items but including stock-based compensation) on a proportionate tax basis of $1.55, missing the Zacks Consensus Estimate of $1.59 per share.
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A better-ranked stock in the broader technology sector worth considering is Applied Optoelectronics, Inc. AAOI , sporting a a Zacks Rank #1 (Strong Buy). Click to get this free report F5 Networks, Inc. (FFIV): Free Stock Analysis Report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Tech Data Corporation (TECD): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues were boosted by 6.6% increase in service revenues and 1.6% increase in Product revenues on a year-over-year basis.
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157be9ba-cc62-41a8-baa9-a03336962718
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9882.0
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2017-07-27 00:00:00 UTC
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AAOI and JBL are Aggressive Growth Rank Buys
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AAOI
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https://www.nasdaq.com/articles/aaoi-and-jbl-are-aggressive-growth-rank-buys-2017-07-27
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nan
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nan
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Brian Bolan, the aggressive growth stock strategist for Zacks Investment Research reviews two stocks that are both moving higher. AAOI has rallied about 70% over the last month and while Brian shows us the strong Zacks Rank and excellent Style Score divergence, he also shows that the shorts are pressing their bets. This is a dangerous situation as a squeeze is on, but not all squeezes end up lasting that long. Brian warns investors to be careful with that one. Next up is Jabil Circuit (JBL) which is also a Zacks Rank #1 (Strong Buy) but has A's for value and growth. Brian likes this stock because of the expected revenue growth in the coming quarter are as well as next quarter.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Jabil Circuit, Inc. (JBL): 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.
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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AAOI has rallied about 70% over the last month and while Brian shows us the strong Zacks Rank and excellent Style Score divergence, he also shows that the shorts are pressing their bets. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Jabil Circuit, Inc. (JBL): Free Stock Analysis Report To read this article on Zacks.com click here. More Stock News: Tech Opportunity Worth $386 Billion in 2017 From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Jabil Circuit, Inc. (JBL): Free Stock Analysis Report To read this article on Zacks.com click here. AAOI has rallied about 70% over the last month and while Brian shows us the strong Zacks Rank and excellent Style Score divergence, he also shows that the shorts are pressing their bets. 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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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Jabil Circuit, Inc. (JBL): Free Stock Analysis Report To read this article on Zacks.com click here. AAOI has rallied about 70% over the last month and while Brian shows us the strong Zacks Rank and excellent Style Score divergence, he also shows that the shorts are pressing their bets. Brian Bolan, the aggressive growth stock strategist for Zacks Investment Research reviews two stocks that are both moving higher.
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AAOI has rallied about 70% over the last month and while Brian shows us the strong Zacks Rank and excellent Style Score divergence, he also shows that the shorts are pressing their bets. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Jabil Circuit, Inc. (JBL): Free Stock Analysis Report To read this article on Zacks.com click here. Brian Bolan, the aggressive growth stock strategist for Zacks Investment Research reviews two stocks that are both moving higher.
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f6dfe64d-02d8-402e-a2ce-70ba18aa8269
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9883.0
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2017-07-26 00:00:00 UTC
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MKS Instruments (MKSI) Q2 Earnings in Line, Revenues Beat
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AAOI
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https://www.nasdaq.com/articles/mks-instruments-mksi-q2-earnings-in-line-revenues-beat-2017-07-26
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nan
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nan
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Premium scientific & technical instruments company, MKS Instruments, Inc.MKSI reported in-line earnings for second-quarter 2017.
This Zacks Rank #3 (Hold) noted that the successful integration of Newport Corporation (acquired in Apr 2016) significantly boosted its top- and bottom-line performance in the reported quarter.
Earnings and Revenues
Quarterly adjusted earnings came in at $1.41 per share, in line with the Zacks Consensus Estimate. However, the bottom line came in higher than the year-ago tally of 72 cents per share.
Quarterly revenues were $480.8 million, outpacing the Zacks Consensus Estimate of $464 million. The top line also came in 47.5% higher than the prior-year figure.
Sales of Products during the quarter came in at $432 million, remarkably up from the year-ago number of $285.5 million. Sales of Services during the reported quarter totaled $48.8 million compared to $40.4 million recorded in the year-earlier period.
MKS Instruments, Inc. Price, Consensus and EPS Surprise
MKS Instruments, Inc. Price, Consensus and EPS Surprise | MKS Instruments, Inc. Quote
Costs and Margins
Total cost of revenues during the quarter was $261.2 million, up from $189.9 million recorded in the prior-year quarter. Adjusted gross profit margin during the quarter came in at 45.9%, expanding 110 basis points (bps) year over year.
Selling, general and administrative expenses were $72 million, higher than $59.6 million incurred in the year-ago quarter. Also, research and development expenses came in at $33.7 million, up from $28.2 million incurred in second-quarter 2016.
Adjusted operating margin in the reported quarter was 24.0%, up 590 basis points year over year.
Balance Sheet
Exiting the second quarter, MKS Instruments had cash and cash equivalents of $422.8 million, up from $228.6 million recorded at the end of 2016. Long-term debt came in at $551.8 million, down from $601.2 million recorded on Dec 31, 2016.
Outlook
MSK Instruments intends to deleverage its balance sheet by lowering interest expenses, through prepayment of term-loans. The company believes that the acquisition of Newport Corporation would continue to bolster its revenues and profitability in the quarters ahead.
Based on the existing market conditions, the company anticipates to report revenues within the range of $450-$490 million and earnings in the band of $1.32-$1.56 per share for third-quarter 2017.
Key Picks
A few better-ranked stocks in the industry are listed below:
Applied Optoelectronics, Inc. AAOI has an impressive average positive earnings surprise of 118.33% for the last four quarters and currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Axcelis Technologies, Inc. ACLS carries a Zacks Rank #2 (Buy) and has an outstanding average positive earnings surprise of 135.78% for the past four quarters.
Adobe Systems Incorporated ADBE , which also carries a Zacks Rank #2 at present, generated an average positive earnings surprise of 8.06% over the trailing four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report
Adobe Systems Incorporated (ADBE): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Key Picks A few better-ranked stocks in the industry are listed below: Applied Optoelectronics, Inc. AAOI has an impressive average positive earnings surprise of 118.33% for the last four quarters and currently flaunts a Zacks Rank #1 (Strong Buy). Click to get this free report MKS Instruments, Inc. (MKSI): Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. This Zacks Rank #3 (Hold) noted that the successful integration of Newport Corporation (acquired in Apr 2016) significantly boosted its top- and bottom-line performance in the reported quarter.
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Click to get this free report MKS Instruments, Inc. (MKSI): Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks A few better-ranked stocks in the industry are listed below: Applied Optoelectronics, Inc. AAOI has an impressive average positive earnings surprise of 118.33% for the last four quarters and currently flaunts a Zacks Rank #1 (Strong Buy). MKS Instruments, Inc. Price, Consensus and EPS Surprise MKS Instruments, Inc. Price, Consensus and EPS Surprise | MKS Instruments, Inc. Quote Costs and Margins Total cost of revenues during the quarter was $261.2 million, up from $189.9 million recorded in the prior-year quarter.
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Click to get this free report MKS Instruments, Inc. (MKSI): Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks A few better-ranked stocks in the industry are listed below: Applied Optoelectronics, Inc. AAOI has an impressive average positive earnings surprise of 118.33% for the last four quarters and currently flaunts a Zacks Rank #1 (Strong Buy). Quarterly revenues were $480.8 million, outpacing the Zacks Consensus Estimate of $464 million.
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Key Picks A few better-ranked stocks in the industry are listed below: Applied Optoelectronics, Inc. AAOI has an impressive average positive earnings surprise of 118.33% for the last four quarters and currently flaunts a Zacks Rank #1 (Strong Buy). Click to get this free report MKS Instruments, Inc. (MKSI): Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings and Revenues Quarterly adjusted earnings came in at $1.41 per share, in line with the Zacks Consensus Estimate.
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cba81bb3-14d2-4a31-a4cd-cdbbbbf62559
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9884.0
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2017-07-26 00:00:00 UTC
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AMD's Loss Narrows in Q2, Revenues Increase on GPU Demand
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AAOI
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https://www.nasdaq.com/articles/amds-loss-narrows-in-q2-revenues-increase-on-gpu-demand-2017-07-26
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nan
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nan
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Advanced Micro DevicesAMD reported a loss of a penny in second-quarter 2017, which was narrower than the Zacks Consensus Estimate of a loss of 2 cents. The company had reported loss of 7 cents per share in the year-ago quarter.
Revenues increased 19% year over year to $1.22 billion and exceeded the Zacks Consensus Estimate of $1.15 billion. The year-over-year growth was primarily driven by strong demand for the company's Graphics Processor Units (GPUs) and expanding customer base.
Shares of AMD gained 24.4% year to date, significantly underperforming the 31% rally of the industry it belongs to.
Quarter Details
Advanced Micro has two reportable segments - Computing and Graphics (focused on the traditional PC market), and Enterprise, Embedded and Semi-Custom (focusing on adjacent high-growth opportunities). The details of these segments are discussed below:
Computing and Graphics includes desktop and notebook processors and chipsets, discrete GPUs and professional graphics. This segment accounted for 53.9% of revenues and was up almost 51.5% year over year to $659 million. The year-over-year growth was driven primarily by higher demand for graphics and Ryzen desktop processors. Ryzen-based desktop systems have been adopted by major PC OEMS.
Client average selling price (ASP) increased year over year driven by higher desktop processor ASP owing to the first full quarter of shipments of Ryzen processors. Graphics processor units ASP increased year over year primarily due to strong demand for Radeon RX GPUs.
The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties. This segment brought in the remaining 46.1% of revenues, down 4.9% year over year to $563 million. The year-over-year decline can be attributed to lower semi-custom SoC sales.
However, investments in graphics and data center R&D resulted in an increase in operating expenses to $381 million compared with $342 million in the year-ago quarter.
Advanced Micro Devices, Inc. Price, Consensus and EPS Surprise
Advanced Micro Devices, Inc. Price, Consensus and EPS Surprise | Advanced Micro Devices, Inc. Quote
Product Highlights
During the quarter, Advanced Micro launched its new "Zen" architecture-based EPYC 7000 series processors.
The company also introduced its series of Ryzen processors - Ryzen Threadripper for ultra-premium desktop systems, Ryzen PRO for enterprise desktops, Ryzen 3 for desktop CPUs and Ryzen Mobile APUs for the consumer market.
It launched Radeon Vega Frontier Edition, Radeon RX 580 and Radeon RX 570 graphics cards this quarter.
Moreover, Apple AAPL announced the new iMac Pro, which will be powered by Radeon Pro Vega product, while its expanded iMac offerings are already being powered by the Radeon Pro 500 Series.
The company's Radeon Instinct MI25 accelerators were shipped to strategic datacenter customers in the quarter.
Balance Sheet
Cash, cash equivalents & marketable securities were $844 million at the end of the second-quarter 2017, compared with $943 million at the end of the previous quarter. Payables to related parties were $374 million in the quarter.
Long-term debt at the end of the quarter was $1.38 billion, down from $1.41 billion in the previous quarter, primarily attributable to debt reduction activities.
Guidance
For third-quarter 2017, Advanced Micro expects revenues to increase 23% sequentially (+/- 3%). At mid-point, this reflects 15% growth on a year-over-year basis.
Gross margin is likely to be 34% while non-GAAP operating expenses are estimated to be $400 million.
Zacks Rank & Stocks to Consider
Advanced Micro carries Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Better-ranked stocks in the broader technology sector include Cypress Semiconductor CY and Applied Optoelectronics AAOI , both sporting a Zacks Rank #1.
Long-term earnings growth for Cypress Semiconductor and Applied Optoelectronics are projected to be 10% and 18.75%, respectively.
"The Hottest Tech Mega-Trend of All
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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
Cypress Semiconductor Corporation (CY): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Better-ranked stocks in the broader technology sector include Cypress Semiconductor CY and Applied Optoelectronics AAOI , both sporting a Zacks Rank #1. Click to get this free report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The year-over-year growth was primarily driven by strong demand for the company's Graphics Processor Units (GPUs) and expanding customer base.
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Click to get this free report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Cypress Semiconductor CY and Applied Optoelectronics AAOI , both sporting a Zacks Rank #1. Graphics processor units ASP increased year over year primarily due to strong demand for Radeon RX GPUs.
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Click to get this free report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Cypress Semiconductor CY and Applied Optoelectronics AAOI , both sporting a Zacks Rank #1. Client average selling price (ASP) increased year over year driven by higher desktop processor ASP owing to the first full quarter of shipments of Ryzen processors.
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Better-ranked stocks in the broader technology sector include Cypress Semiconductor CY and Applied Optoelectronics AAOI , both sporting a Zacks Rank #1. Click to get this free report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues increased 19% year over year to $1.22 billion and exceeded the Zacks Consensus Estimate of $1.15 billion.
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dd62346f-c9bf-4e29-b4f0-a0e4cd71e1ba
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9885.0
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2017-07-26 00:00:00 UTC
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Notable Wednesday Option Activity: AAOI, BGC, IBM
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AAOI
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-aaoi-bgc-ibm-2017-07-26
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 18,673 contracts have traded so far, representing approximately 1.9 million underlying shares. That amounts to about 48.9% of AAOI's average daily trading volume over the past month of 3.8 million shares. Especially high volume was seen for the $40 strike put option expiring January 19, 2018 , with 1,258 contracts trading so far today, representing approximately 125,800 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $40 strike highlighted in orange:
General Cable Corp. (Symbol: BGC) options are showing a volume of 2,528 contracts thus far today. That number of contracts represents approximately 252,800 underlying shares, working out to a sizeable 48.3% of BGC's average daily trading volume over the past month, of 523,220 shares. Particularly high volume was seen for the $20 strike call option expiring September 15, 2017 , with 1,115 contracts trading so far today, representing approximately 111,500 underlying shares of BGC. Below is a chart showing BGC's trailing twelve month trading history, with the $20 strike highlighted in orange:
And International Business Machines Corp (Symbol: IBM) options are showing a volume of 20,414 contracts thus far today. That number of contracts represents approximately 2.0 million underlying shares, working out to a sizeable 47% of IBM's average daily trading volume over the past month, of 4.3 million shares. Particularly high volume was seen for the $145 strike put option expiring August 18, 2017 , with 1,337 contracts trading so far today, representing approximately 133,700 underlying shares of IBM. Below is a chart showing IBM's trailing twelve month trading history, with the $145 strike highlighted in orange:
For the various different available expirations for AAOI options , BGC options , or IBM options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Especially high volume was seen for the $40 strike put option expiring January 19, 2018 , with 1,258 contracts trading so far today, representing approximately 125,800 underlying shares of AAOI. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 18,673 contracts have traded so far, representing approximately 1.9 million underlying shares. That amounts to about 48.9% of AAOI's average daily trading volume over the past month of 3.8 million shares.
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Below is a chart showing AAOI's trailing twelve month trading history, with the $40 strike highlighted in orange: General Cable Corp. (Symbol: BGC) options are showing a volume of 2,528 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 18,673 contracts have traded so far, representing approximately 1.9 million underlying shares. That amounts to about 48.9% of AAOI's average daily trading volume over the past month of 3.8 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 18,673 contracts have traded so far, representing approximately 1.9 million underlying shares. Below is a chart showing IBM's trailing twelve month trading history, with the $145 strike highlighted in orange: For the various different available expirations for AAOI options , BGC options , or IBM options , visit StockOptionsChannel.com. That amounts to about 48.9% of AAOI's average daily trading volume over the past month of 3.8 million shares.
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Below is a chart showing IBM's trailing twelve month trading history, with the $145 strike highlighted in orange: For the various different available expirations for AAOI options , BGC options , or IBM options , visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 18,673 contracts have traded so far, representing approximately 1.9 million underlying shares. That amounts to about 48.9% of AAOI's average daily trading volume over the past month of 3.8 million shares.
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5cee5f93-356c-4f5b-9f98-ef7544ad0786
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9886.0
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2017-07-26 00:00:00 UTC
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Check Out 5 Profitable Stocks for Spectacular Gains
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AAOI
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https://www.nasdaq.com/articles/check-out-5-profitable-stocks-for-spectacular-gains-2017-07-26
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nan
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nan
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A company with strong profitability is able to meet all its business-related costs and expenses and still provide satisfactory returns to its investors. Although a fundamentally weak profitable company may face certain problems, recent studies indicate that a company with a high profitability level is a great investment choice.
Here, we have used ratio analysis to evaluate the profitability of a company. There are four vital profitability ratios, which include gross income ratio, operating income ratio, pre-tax profit margin and net income ratio. From these, we have selected net income ratio, which is the most widely used and transparent profitability ratio.
Net Income Ratio
Net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total revenue. Using net income ratio, one can determine a company's ability to meet operating and non-operating expenses. A higher net income ratio usually implies a company's ability to generate ample revenues and successfully manage all its business functions.
Screening Parameters
As net income ratio is not the only indicator of future winners, we have added a few more criteria to arrive at a winning strategy.
Zacks Rank equal to #1: Only Zacks Rank #1 (Strong Buy) stocks are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off. You can see the complete list of today's Zacks #1 Rank stocks here .
12-Month Trailing Sales and Net Income Growth Higher than X Industry: Stocks that possess higher sales and net income growth in the last 12 months showcase better financial performance.
12-Month Trailing Net Income Ratio Higher than X Industry: High net income ratio indicates a company's solid profitability.
% Rating Strong Buy greater than 70%: This indicates that 70% of the analysts covering these stocks are optimistic.
These few parameters narrowed down the universe of over 7,869 stocks to only eight.
Here are five of the eight stocks that qualified the screen:
Limoneira CompanyLMNR is an agribusiness and real estate development company.It has an average four-quarterpositive earnings surprise of 14.7%.
ABIOMED, Inc.ABMD is a developer, manufacturer and marketer of medical products.It has an average four-quarterpositive earnings surprise of 8.1%.
DAQO New Energy Corp.DQ is a manufacturer and seller of polysilicon and wafers.It has an average four-quarterpositive earnings surprise of 22.1%.
Ternium S.A.TX is a manufacturer and processer of various steel products.It has an average four-quarterpositive earnings surprise of 20%.
Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.It has an average four-quarterpositive earnings surprise of 118.3%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it 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
DAQO New Energy Corp. (DQ): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
ABIOMED, Inc. (ABMD): Free Stock Analysis Report
Ternium S.A. (TX): Free Stock Analysis Report
Limoneira Co (LMNR): 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.
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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Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.It has an average four-quarterpositive earnings surprise of 118.3%. Click to get this free report DAQO New Energy Corp. (DQ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Ternium S.A. (TX): Free Stock Analysis Report Limoneira Co (LMNR): Free Stock Analysis Report To read this article on Zacks.com click here. A higher net income ratio usually implies a company's ability to generate ample revenues and successfully manage all its business functions.
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Click to get this free report DAQO New Energy Corp. (DQ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Ternium S.A. (TX): Free Stock Analysis Report Limoneira Co (LMNR): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.It has an average four-quarterpositive earnings surprise of 118.3%. 12-Month Trailing Sales and Net Income Growth Higher than X Industry: Stocks that possess higher sales and net income growth in the last 12 months showcase better financial performance.
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Click to get this free report DAQO New Energy Corp. (DQ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Ternium S.A. (TX): Free Stock Analysis Report Limoneira Co (LMNR): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.It has an average four-quarterpositive earnings surprise of 118.3%. There are four vital profitability ratios, which include gross income ratio, operating income ratio, pre-tax profit margin and net income ratio.
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Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.It has an average four-quarterpositive earnings surprise of 118.3%. Click to get this free report DAQO New Energy Corp. (DQ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report Ternium S.A. (TX): Free Stock Analysis Report Limoneira Co (LMNR): Free Stock Analysis Report To read this article on Zacks.com click here. Net Income Ratio Net income ratio gives us the exact profitability level of a company.
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e8894c16-0071-4d6b-b2a5-b18344e9681d
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9887.0
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2017-07-25 00:00:00 UTC
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Seagate (STX) Misses Q4 Earnings & Revenues, Appoints CEO
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AAOI
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https://www.nasdaq.com/articles/seagate-stx-misses-q4-earnings-revenues-appoints-ceo-2017-07-25
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nan
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nan
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Seagate Technology plcSTX reported disappointing fourth-quarter fiscal 2017 results. Both non-GAAP earnings of 65 cents per share and revenues of $2.41 billion missed the Zacks Consensus Estimate of 99 cents and $2.55 billion, respectively.
Seagate also announced the appointment of Dave Mosley as Chief Executive Officer (CEO) and instated current CEO Steve Luczo as the Executive Chairman effective Oct 1, 2017.
Non-GAAP earnings plunged 41% on a sequential basis, primarily due to 10% decline in revenues. On a year-over-year basis revenues fell 9.3%, which reflects intense competition in the Hard Drive Disk (HDD) market from the likes of Western Digital WDC .
Seagate reported fiscal 2017 revenues of $10.77 billion, down 3.5% over fiscal 2016. The company generated approximately $1.9 billion in cash flow from operations and returned 53% of that to shareholders in cash dividends worth $561 million and share repurchases worth $460 million.
Seagate Technology PLC Revenue (TTM)
Seagate Technology PLC Revenue (TTM) | Seagate Technology PLC Quote
Shares were down more than 18% in pre-market trading following the results. Seagate's stock has gained 4.2% year to date, substantially underperforming the 22.9% rally of the industry it belongs to.
Quarter Details
Seagate reported non-GAAP gross margin of 28.9%, which contracted 250 basis points (bps) on a sequential basis.
Operating expenses (prior to amortization & restructuring charges), as a percentage of revenues, increased 40 bps sequentially to 17.7%. Product development, as a percentage of revenues, decreased 10 bps, which was fully offset by a 60-bps increase in marketing and administrative expenses sequentially.
Seagate exited the quarter with cash and cash equivalents of $2.54 billion, as compared with $3.02 billion in the previous quarter. Long-term debt was $5.02 billion, as compared with $5.07 billion in the preceeding quarter.
Zacks Rank & Key Picks
We believe that declining PC shipment - per latest data from Gartner and IDC - doesn't bode well for Seagate. The company is the second largest manufacturer of HDDs in the U.S., which are extensively used in PCs and Seagate derives the bulk of revenues from these devices.
Currently, Seagate carries a Zacks Rank #3 (Hold). Infineon Technologies IFNNY and Applied Optoelectronics AAOI are two top-ranked stocks worth consideruing in the broader sector. Both of them sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Infineon and Applied Optoelectronics are expected to report earnings results on Aug 1 and Aug 3, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
See these stocks now>>
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
Western Digital Corporation (WDC): Free Stock Analysis Report
Seagate Technology PLC (STX): Free Stock Analysis Report
Infineon Technologies AG (IFNNY): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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Infineon Technologies IFNNY and Applied Optoelectronics AAOI are two top-ranked stocks worth consideruing in the broader sector. Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. On a year-over-year basis revenues fell 9.3%, which reflects intense competition in the Hard Drive Disk (HDD) market from the likes of Western Digital WDC .
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Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Infineon Technologies IFNNY and Applied Optoelectronics AAOI are two top-ranked stocks worth consideruing in the broader sector. Seagate Technology PLC Revenue (TTM) Seagate Technology PLC Revenue (TTM) | Seagate Technology PLC Quote Shares were down more than 18% in pre-market trading following the results.
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Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Infineon Technologies IFNNY and Applied Optoelectronics AAOI are two top-ranked stocks worth consideruing in the broader sector. Both non-GAAP earnings of 65 cents per share and revenues of $2.41 billion missed the Zacks Consensus Estimate of 99 cents and $2.55 billion, respectively.
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Infineon Technologies IFNNY and Applied Optoelectronics AAOI are two top-ranked stocks worth consideruing in the broader sector. Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Quarter Details Seagate reported non-GAAP gross margin of 28.9%, which contracted 250 basis points (bps) on a sequential basis.
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22c65e75-6085-46dd-ab86-3cf4ee24de4f
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9888.0
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2017-07-25 00:00:00 UTC
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Cadence Design (CDNS) Q2 Earnings, Revenues Beat Estimates
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AAOI
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https://www.nasdaq.com/articles/cadence-design-cdns-q2-earnings-revenues-beat-estimates-2017-07-25
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nan
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nan
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Cadence Design Systems, Inc.CDNS reported earnings of 28 cents per share (including stock-based compensation) for second-quarter 2017, beating the Zacks Consensus Estimate by seven cents.
Excluding stock-based compensation, earnings were 34 cents per share, reflecting an increase of 17.2% from the year-ago quarter.
Revenues also increased 5.7% year over year to $479 million, beating the Zacks Consensus Estimate of $478 million.
Notably, the company has outperformed the industry on a year-to-date basis. While the stock returned 39.1%, the industry gained 24.3% over the same time frame.
Quarter Details
Product & Maintenance generated revenues to the tune of $443.8 million, which accounted for 92.7% of total revenue. Segment revenues were up 5.7% on a year-over-year basis.
On the other hand, Services generated revenues of $35.1 million, which accounted for the remaining 7.3% of total revenue. Revenues were up 6.3% on a year-over-year basis.
Product wise, revenues from Digital and signoff grew 14% year over year, with deeper market penetration. IP revenues grew 15% year over year, as the company's new refined strategy gained momentum. Custom analog grew 9% year over year and SPB segment saw growth of 7% from the year-ago quarter.
Revenues from Asia were up 18% year over year, making it the highest contributor.
Strong adoption continued for Palladium Z1, given the company's recent partnership with HiSilicon. Moreover, Rohm, a Japanese electronics part manufacturing company adopted Cadence's ISO 26262 compliant functional safety verification solution. Its customer base saw the addition of an advanced driver assistance system (ADAS) company.
In the second quarter, the company also released Virtuoso system, a platform to optimize design integration between chip, package and board flows. The company also extended its partnership with Mathworks to help modify mixed signal designs.
Cadence Design Systems, Inc. Price, Consensus and EPS Surprise
Cadence Design Systems, Inc. Price, Consensus and EPS Surprise | Cadence Design Systems, Inc. Quote
Management noted that Vinovus and Tensilica are gaining accelerated traction with high adoption rate. Customer reception of Protium S1 FPGA-based prototyping system was also positive.
Meanwhile, stringent cost control helped operating margin (including stock-based compensation) expanded 210 bps on a year-over-year basis to 17.9%.
However, research and development spending increased 7.4% compared with the year-ago quarter.
Balance Sheet
Net cash from operating activities was $162.1 million compared with $92.4 million in the previous quarter. Cadence ended the quarter with cash and short-term investments of $655.9 million, better than $547.6 million at the end of first-quarter 2017.
Guidance
For the third quarter of 2017, Cadence expects total revenue to be in the range of $475 million to $485 million and non-GAAP earnings in the range of 33 cents to 35 cents per share.
For the 2017, the company raised its guidance. Revenues are now expected to be in the range of $1.91 billion to $1.95 billion; non-GAAP operating margin is expected to be approximately 27% and non-GAAP earnings are guided in the range of $1.36 to $1.42.
The lower end of both revenues and earnings per share guidance was raised, leading to a rise in the mid-point. Operating cash flow is anticipated to be in the range of $430 million to $470 million.
Zacks Rank & Key Picks
Cadence currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector are Cypress Semiconductor CY , Lam Research LRCX and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank Stocks here.
Long-term earnings growth rates for Cypress Semiconductor, Lam Research and Applied Optoelectronics are projected to be 10%, 16.4% and 18.8%, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
See these stocks now>>
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
Cypress Semiconductor Corporation (CY): Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Lam Research Corporation (LRCX): 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.
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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Better-ranked stocks in the broader technology sector are Cypress Semiconductor CY , Lam Research LRCX and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, Rohm, a Japanese electronics part manufacturing company adopted Cadence's ISO 26262 compliant functional safety verification solution.
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Click to get this free report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector are Cypress Semiconductor CY , Lam Research LRCX and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Cadence Design Systems, Inc.CDNS reported earnings of 28 cents per share (including stock-based compensation) for second-quarter 2017, beating the Zacks Consensus Estimate by seven cents.
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Click to get this free report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector are Cypress Semiconductor CY , Lam Research LRCX and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Cadence Design Systems, Inc. Price, Consensus and EPS Surprise Cadence Design Systems, Inc. Price, Consensus and EPS Surprise | Cadence Design Systems, Inc. Quote Management noted that Vinovus and Tensilica are gaining accelerated traction with high adoption rate.
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Better-ranked stocks in the broader technology sector are Cypress Semiconductor CY , Lam Research LRCX and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues also increased 5.7% year over year to $479 million, beating the Zacks Consensus Estimate of $478 million.
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202c28b2-6928-4b89-b6eb-b9c84f3eb995
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9889.0
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2017-07-25 00:00:00 UTC
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Logitech (LOGI) Q1 Earnings Beat, Up Y/Y, Guidance Raised
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AAOI
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https://www.nasdaq.com/articles/logitech-logi-q1-earnings-beat-up-y-y-guidance-raised-2017-07-25
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nan
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nan
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Logitech International SALOGI continues its impressive streak of earnings beats for the seventh consecutive quarter. The company reported its first-quarter fiscal 2018 adjusted earnings (including stock-based compensation expense adjustments) of 22 cents per share, beating the Zacks Consensus Estimate of 17 cents by 29.1%.
On a non-GAAP basis, the company's earnings per share came in at 24 cents, up 20.0% year over year. Remarkable year-over-year rise in the bottom line was driven by strong top-line performance. Also, Logitech's concerted efforts to drive cost efficiency proved conducive to overall earnings and profitability growth.
Net sales for the quarter rose an impressive 10.0% year over year to $529.9 million, surpassing the Zacks Consensus Estimate of $521 million. Double-digit rise in sales across most of the product lines in all the three geographies, namely, Americas, EMEA, and Asia, drove year-over-year top-line growth.
Segment-Wise Performance
Creativity and Productivity business comprises four sub-business lines - Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories. Of these, Keyboards and Combos remained flat as high sales in the Americas and the EMEA region was offset by decline in sales in the Asia-Pacific region. Pointing Devices sales were up 5% to $122.1 million, driven by solid demand for mouse and the recently introduced Spotlight presentation device.
Greater proliferation of personal broadcasting mediums, including video blogging, proved conducive to sales growth of PC webcams. Encouragingly, the Tablet and Other Accessories segment witnessed a rebound as sales grew 67% to $23.2 million. Rapid market traction of the newly introduced products including, Slim Combo Case for the iPad Pro and Rugged Combo family of products, drove sales of the tablet segment.
Gaming surged 38% year over year to $77.7 million, driven by double-digit growth from all three regions. On the other hand, Video Collaboration grew 49% to $35.6 million on the back of double-digit increase from all three regions. Rising demand from companies, both large and small, for video-enabling huddle rooms and conference rooms drove sales growth of this segment.
The Music business, which comprises Mobile Speakers units and Audio-PC & Wearables, witnessed mixed performance. Mobile Speaker sales rose 10% to $62.9 million, led by impressive market traction of Ultimate Ears and Wonderboom product lines. However, this was largely offset by the drab performance of the Audio PC & Wearables segment, which fell 11% during the first quarter of fiscal 2018, driven by the Jaybird buyout.
In addition, sales under the Home Control category increased 47% to $16.5 million, driven by continued demand for smart home products. Integration of voice assistants (such as Alexa and Google Assistant) into Harmony Hub proved conducive to the sales performance of this segment.
During the first quarter of fiscal 2018, Logitech generated record non-GAAP gross margin growth, up 140 basis points (bps) to 37.0% year over year. Cost savings across all product lines drove the gross margin improvement. Non-GAAP operating margin for the company expanded a remarkable 20 bps year over year to 8.1%, as non-GAAP operating income jumped 13.8% year over year to $43.0 million on top-line strength. Though higher gross margins boosted operating income, higher investments offset some of this improvement.
Logitech International S.A. Price, Consensus and EPS Surprise
Logitech International S.A. Price, Consensus and EPS Surprise | Logitech International S.A. Quote
Liquidity
As on Jun 30, 2017, Logitech's cash and cash equivalents were $527.6 million compared with $547.5 million as of Mar 31, 2017.
Guidance Raised
Concurrent with the first-quarter fiscal 2018 results, Logitech raised its full-year 2018 guidance. Currently, it expects non-GAAP operating income in the range of $260-$270 million compared with the earlier guided range of $250-$260 million. Also, it now anticipates constant currency fiscal 2018 sales in the range of 10-12%, compared with the earlier projection of high single-digit growth.
The upward revision is mainly attributable to the recent Astro Gaming buyout. This acquisition will enable Logitech to explore the console gaming market and help accelerate long-term growth of its gaming business.
To Conclude
Logitech entered fiscal 2018 on a robust note, with both healthy top and bottom-line beats. The raised guidance is likely to go down well with investors. The all-pervasive increase of its retail business is a major positive and is likely to continue, going forward. Also, the Zacks Rank #2 (Buy) company's diligent cost-cutting efforts add to its strength. Logitech remains optimistic that the steady traction of its product lines, as well as positive industry trends will continue to fuel growth.
We believe that the thriving cloud-based video-conferencing services, strategic product launches and restructuring actions will continue to be growth drivers. The company has been able to leverage its software and go-to-market capabilities to drive market share gains. In addition, the Astro buyout catches the eye as it is expected to be slightly dilutive to the bottom line in the first year, due to integration expenses and investments.
Other Stocks to Consider
Some other stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . While Applied Materials and Red Hat sport a Zacks Rank #1 (Strong Buy), Applied Materials holds the same Zacks Rank as Logitech.
Applied Optoelectronics has a whopping average earnings surprise of 118.3% for the trailing four quarters, beating estimates all through.
Red Hat, Inc. has a robust earnings surprise history, with an average positive surprise of 11.1%, driven by consecutive earnings beats over the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
With four back-to-back beats, Applied Materials has an average positive surprise of 3.4% for the trailing four quarters.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artifical intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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
Logitech International S.A. (LOGI): Free Stock Analysis Report
Red Hat, Inc. (RHT): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): 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.
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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Other Stocks to Consider Some other stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Click to get this free report Logitech International S.A. (LOGI): Free Stock Analysis Report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Segment-Wise Performance Creativity and Productivity business comprises four sub-business lines - Keyboards and Combos, Pointing Devices, PC Webcams, and Tablet and Other Accessories.
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Click to get this free report Logitech International S.A. (LOGI): Free Stock Analysis Report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some other stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . The company reported its first-quarter fiscal 2018 adjusted earnings (including stock-based compensation expense adjustments) of 22 cents per share, beating the Zacks Consensus Estimate of 17 cents by 29.1%.
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Click to get this free report Logitech International S.A. (LOGI): Free Stock Analysis Report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some other stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Non-GAAP operating margin for the company expanded a remarkable 20 bps year over year to 8.1%, as non-GAAP operating income jumped 13.8% year over year to $43.0 million on top-line strength.
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Other Stocks to Consider Some other stocks in the broader sector include Applied Optoelectronics, Inc. AAOI , Red Hat, Inc. RHT and Applied Materials, Inc. AMAT . Click to get this free report Logitech International S.A. (LOGI): Free Stock Analysis Report Red Hat, Inc. (RHT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Also, Logitech's concerted efforts to drive cost efficiency proved conducive to overall earnings and profitability growth.
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31e80f83-146a-4e1d-8335-b1d983655dbd
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9890.0
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2017-07-25 00:00:00 UTC
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Five Stocks Surging through Highs
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AAOI
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https://www.nasdaq.com/articles/five-stocks-surging-through-highs-2017-07-25
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nan
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nan
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Despite an early disappointment from Alphabet, the NASDAQ fought off the pressure to barely finish at record highs. The large caps led the way to highs on the session as earnings season continues to roll on. As long as earnings can continue to support stocks up here the market can keep rocking and rolling.
Check out Dave's Daily Dive video above where I break down the market action today!!!
Each day I, Dave Bartosiak of Zacks.com (Twitter @bartosiastics) dive into the charts, pointing out key price action and levels for you to watch.
But it doesn't stop there because the highlight of today's video, which you can see for free by clicking above, is where I uncover five Zacks Rank #1 (Strong Buy) stocks that are breaking out to new 52-week highs today. These stocks have a ton of momentum behind them and are charging higher. The list of stocks he covers today include:
Applied Optoelectronics AAOI
Applied Optoelectronics, Inc. Price and Consensus
Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote
Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. It offers optical modules, lasers, transmitters and transceivers, and turn-key equipment, as well as headend, node, and distribution equipment. The company sells its products to Internet data center operators, CATV and telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels worldwide.
The Brink's Company BCO
Brink's Company (The) Price and Consensus
Brink's Company (The) Price and Consensus | Brink's Company (The) Quote
The Brink's Company provides secure transportation, cash management services, and other security-related services worldwide. The company offers cash-in-transit services, including armored vehicle transportation of valuables; automated teller machine (ATM) services, such as cash replenishment, replenishment forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, installation services, and first and second line maintenance; and network infrastructure services.
Facebook FB
Facebook, Inc. Price and Consensus
Facebook, Inc. Price and Consensus | Facebook, Inc. Quote
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its solutions include Facebook Website and mobile application that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers; Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application to communicate with people and businesses across platforms and devices; and WhatsApp Messenger, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others.
Healthcare Services Group HCSG
Healthcare Services Group, Inc. Price and Consensus
Healthcare Services Group, Inc. Price and Consensus | Healthcare Services Group, Inc. Quote
Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary.
LPL Financial LPLA
LPL Financial Holdings Inc. Price and Consensus
LPL Financial Holdings Inc. Price and Consensus | LPL Financial Holdings Inc. Quote
LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, alternative investments such as non-traded real estate investment trusts and business development companies, retirement and 529 education savings plans, fixed income, and insurance. The company's fee-based platforms provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities.
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While today's Zacks Rank #1 new additions are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks trades >>
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
Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report
Facebook, Inc. (FB): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
Brink's Company (The) (BCO): 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.
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 list of stocks he covers today include: Applied Optoelectronics AAOI Applied Optoelectronics, Inc. Price and Consensus Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. Click to get this free report Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. Each day I, Dave Bartosiak of Zacks.com (Twitter @bartosiastics) dive into the charts, pointing out key price action and levels for you to watch.
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The list of stocks he covers today include: Applied Optoelectronics AAOI Applied Optoelectronics, Inc. Price and Consensus Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. Click to get this free report Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. Healthcare Services Group HCSG Healthcare Services Group, Inc. Price and Consensus Healthcare Services Group, Inc. Price and Consensus | Healthcare Services Group, Inc. Quote Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States.
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Click to get this free report Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. The list of stocks he covers today include: Applied Optoelectronics AAOI Applied Optoelectronics, Inc. Price and Consensus Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. The Brink's Company BCO Brink's Company (The) Price and Consensus Brink's Company (The) Price and Consensus | Brink's Company (The) Quote The Brink's Company provides secure transportation, cash management services, and other security-related services worldwide.
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Click to get this free report Healthcare Services Group, Inc. (HCSG): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report Brink's Company (The) (BCO): Free Stock Analysis Report To read this article on Zacks.com click here. The list of stocks he covers today include: Applied Optoelectronics AAOI Applied Optoelectronics, Inc. Price and Consensus Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. But it doesn't stop there because the highlight of today's video, which you can see for free by clicking above, is where I uncover five Zacks Rank #1 (Strong Buy) stocks that are breaking out to new 52-week highs today.
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a28d97ca-59ce-490d-ae8c-43c83d2117b0
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9891.0
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2017-07-21 00:00:00 UTC
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Badger Meter (BMI) Q2 Earnings Top Estimates, Sales Lag
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AAOI
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https://www.nasdaq.com/articles/badger-meter-bmi-q2-earnings-top-estimates-sales-lag-2017-07-21
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nan
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nan
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Badger Meter Inc. 's BMI second-quarter 2017 earnings per share rose 12.5% year over year to a record 36 cents and also beat the Zacks Consensus Estimate of 35 cents.
Sales in the quarter inched up 0.3% year over year to a record $104 million, but fell short of the Zacks Consensus Estimate of $108 million. Domestic residential and commercial municipal water product sales were flat year over year as some customers delayed orders to capitalize on the latest advancement in the ORION Cellular technology, the ORION Cellular Long-Term Evolution (LTE) endpoint, which began shipment in Jun 2017. Domestic sales of flow instrumentation products increased but were partially offset by fewer international projects. The oil and gas business also improved during the quarter.
Cost and Margins
Cost of sales decreased 2% year over year to $63 million. Gross profit in the quarter was $41 million, up 4% from $39.4 million in the prior-year quarter. Gross margin was 39.4%, a 150 basis points (bps) expansion from the year-ago quarter owing to pricing discipline, manufacturing cost controls and its strategy to acquire or consolidate much of distribution network. These actions helped negate the impact of higher brass costs.
Selling, engineering and administration expenses were flat year over year to $24.5 million owing mainly to staffing reductions in the flow instrumentation business in the second half of 2016 and lower health care expenses. Operating income went up 11% to $16.6 million from $14.9 million in the year-earlier quarter. Consequently, operating margin expanded 150 (bps) to 15.9%.
Badger Meter, Inc. Price, Consensus and EPS Surprise
Badger Meter, Inc. Price, Consensus and EPS Surprise | Badger Meter, Inc. Quote
Financial Position
Badger Meter reported cash and cash equivalents of $13.8 million at the end of second-quarter 2017, up from $7.3 million at year-end 2016. Receivables were pegged at $64.4 million at the second quarter end, higher than $59.8 million as of Dec 31, 2016. Inventories were $74 million at the end of second quarter compared with $78 million as of Dec 31, 2016.
Badger Meter acquired D-Flow Technology AB of Luleå, Sweden in the second quarter. D-Flow Technology specializes in the design and development of ultrasonic technology, primarily for use in flow measurement. With this buyout, the company further strengthened its presence in the ultrasonic flowmeter market. The acquisition will help Badger Meter to further enhance its successful E-Series Ultrasonic product line, lower production costs and provide a platform for further advancement of ultrasonic capabilities.
In the last one year, Badger Meter has outperformed the industry with respect to price performance. The stock gained around 19.7%, while the industry rose 17.1%.
Zacks Rank & Key Picks
Badger Meter currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Axcelis Technologies, Inc. ACLS and Broadcom Limited AVGO .
Applied Optoelectronics has delivered a average positive earnings surprise of 118.33% in the last four quarters. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Broadcom Limited, a Zacks Rank #1 stock, has an average positive earnings surprise of 6.73% for the past four quarters.
Axcelis Technologies carries a Zacks Rank #2 (Buy) and has delivered an impressive average positive earnings surprise of 135.78% in the trailing four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker 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
Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report
Broadcom Limited (AVGO): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Badger Meter, Inc. (BMI): 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.
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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Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Axcelis Technologies, Inc. ACLS and Broadcom Limited AVGO . Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Badger Meter, Inc. (BMI): Free Stock Analysis Report To read this article on Zacks.com click here. Gross margin was 39.4%, a 150 basis points (bps) expansion from the year-ago quarter owing to pricing discipline, manufacturing cost controls and its strategy to acquire or consolidate much of distribution network.
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Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Axcelis Technologies, Inc. ACLS and Broadcom Limited AVGO . Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Badger Meter, Inc. (BMI): Free Stock Analysis Report To read this article on Zacks.com click here. Badger Meter, Inc. Price, Consensus and EPS Surprise Badger Meter, Inc. Price, Consensus and EPS Surprise | Badger Meter, Inc. Quote Financial Position Badger Meter reported cash and cash equivalents of $13.8 million at the end of second-quarter 2017, up from $7.3 million at year-end 2016.
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Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Badger Meter, Inc. (BMI): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Axcelis Technologies, Inc. ACLS and Broadcom Limited AVGO . Sales in the quarter inched up 0.3% year over year to a record $104 million, but fell short of the Zacks Consensus Estimate of $108 million.
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Some better-ranked stocks in the same sector are Applied Optoelectronics, Inc. AAOI , Axcelis Technologies, Inc. ACLS and Broadcom Limited AVGO . Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Badger Meter, Inc. (BMI): Free Stock Analysis Report To read this article on Zacks.com click here. Sales in the quarter inched up 0.3% year over year to a record $104 million, but fell short of the Zacks Consensus Estimate of $108 million.
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78c37d43-062e-405e-a1ab-3b8fcdfcc40c
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9892.0
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2017-07-21 00:00:00 UTC
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NCR Corp (NCR) Q2 Earnings Top & Revenues Miss,'17 View Same
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AAOI
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https://www.nasdaq.com/articles/ncr-corp-ncr-q2-earnings-top-revenues-miss17-view-same-2017-07-21
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NCR Corporation NCR reported mixed results for the second quarter of 2017. The company's non-GAAP earnings (excluding restructuring, acquisition-related expensesand other one-time items) from continuing operations of 80 cents per share surpassed the Zacks Consensus Estimate of 75 cents and surged 11.1% year over year.
Quarterly earnings also came ahead of the company's guided range of 72-77 cents. The robust bottom-line performance was primarily driven efficient cost management and a lower share count.
Notably, the stock outperformed the industry over the last one year. NCR's shares have returned 37.2% compared with the industry's decline of 8.2%.
Quarter in Detail
The company's revenues of $1.593 billion missed the Zacks Consensus Estimate of $1.612 billion and decreased 1.7% on a year-over-year basis. On a constant currency basis (i.e. excluding FX impact and IPS business divesture), revenues were up 3% year over year.
The company's product revenues came in at $618 million, down 8.6% from the year-ago-quarter. However, service revenues increased 3.3% year over year and came in at $975 million.
During second-quarter 2016, NCR modified its reportable segments to reflect changes in its reporting structure. The new reportable segments are Software, Services and Hardware segments.
The company's Software revenues on a reported basis were up 3% to $464 million. The increase was primarily due to a 9% and 5% increase in Cloud and Professional Services revenues, respectively. Nonetheless, Software license was down 6%. Software maintenance revenues were flat year over year.
Services revenues increased 2% to $588 million on a reported basis. On a constant currency basis Services revenues increased 4%. The increase was primarily due to hardware maintenance growth.
Hardware revenues however decreased 9% year over year on a reported basis to $541 million. The segment's, revenues from ATM and IPS declined 21% and 91%, respectively, while that from SCO and POS surged 37% and 18%, respectively. The increase in SCO and POS revenues was primarily due to store transformation growth during the quarter. On a constant currency basis, Hardware revenues increased 1%.
Non-GAAP gross profit for the quarter increased 3% and came in at $479 million, primarily due to strong execution as a result of strategic focus on business transformation, a positive revenue mix, efficiency and scale gains. Also, the non-GAAP gross margin was 30.1%, up from 28.7% reported in the year-ago quarter.
Income from operations on a non-GAAP basis was $215 million, up from $207 million a year ago. Also, operating margin expanded 70 bps on a year-over-year basis, primarily due to strong execution as well as better productivity.
Non-GAAP operating expenses during the quarter came in at $264 million, reflecting an increase from $258 million in the year-ago quarter.
Non-GAAP net income from continuing operations was $122 million compared with $111 million in the year-ago quarter.
Balance Sheet & Cash Flow
The ATM and POS manufacturer exited the quarter with cash and cash equivalents of approximately $377 million, down from $401 million in the previous quarter. Receivables were $1.32 billion compared with $1.29 billion in the previous quarter.
However, NCR has a highly-leveraged balance sheet. The company ended the quarter with $3 billion of long-term debt in its book.
In the second quarter, the company generated operating cash flow of $95 million and free cash flow was $18 million.
Rhe company did not repurchase any share in the quarter under review. However, during the six months ended Jun 30, 2017, the company repurchased $350 million of its common stock.
Guidance
NCR reiterated its revenue and earnings outlook for 2017. However, the third-quarter guidance was slightly disappointing.
For the year, the company continues to anticipate revenues in the range of $6.63-$6.75 billion, representing year-over-year growth of 1% to 3% on a reported basis and 4% to 6% at adjusted constant currency. The Zacks Consensus Estimate is currently pegged at $6.69 billion.
Non-GAAP earnings per share are expected in the range of $3.32-$3.42. The Zacks Consensus Estimate is $3.37.
The company continues to expect operating cash flow in the range of $805 million to $830 million and free cash flow between $500 million and $525 million.
Coming to the third-quarter outlook, NCR expects revenues in the range of $1.66-$1.70 billion. The Zacks Consensus Estimate stands at $1.73 billion.
The company expects non-GAAP earnings per share for the third quarter in the range of 88-93 cents. The Zacks Consensus Estimate is pegged at 93 cents.
Our Take
NCR reported mixed second-quarter 2017 results wherein the bottom line surpassed the Zacks Consensus Estimate and the top line missed the same. Also, the company third-quarter and FY17 guidance are disappointing.
The company remains the largest supplier of ATM machines in Asia-Pacific and North America, while maintaining its leadership in the Asian and European markets. Per the latest report by global research company RBR Research, the global ATM installed base is expected to reach 4 million units by 2020 from 3 million units in 2014. Currently, India is the world's fourth-largest ATM market with China, the U.S. and Japan holding the first three spots, respectively. This creates huge opportunities for companies like NCR.
We believe that the company's commitment to protect the trust and integrity of the ATM channel has been inspiring banks and a host of other financial institutions to opt for its services. Continued product launches, growing popularity of its self-service offerings and synergies from acquisitions are the other growth drivers. Continuous deal wins also drive growth.
However, softness in the ATM business in mature markets, competition from Diebold Inc. DBD and HP Inc. HPQ , and a high debt burden remain concerns.
Currently, NCR carries a Zacks Rank #4 (Sell).
A better-ranked stock in the technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has an expected long-term EPS growth rate of 18.75%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker 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
HP Inc. (HPQ): Free Stock Analysis Report
NCR Corporation (NCR): Free Stock Analysis Report
Diebold, Incorporated (DBD): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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.
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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A better-ranked stock in the technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report NCR Corporation (NCR): Free Stock Analysis Report Diebold, Incorporated (DBD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Non-GAAP gross profit for the quarter increased 3% and came in at $479 million, primarily due to strong execution as a result of strategic focus on business transformation, a positive revenue mix, efficiency and scale gains.
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Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report NCR Corporation (NCR): Free Stock Analysis Report Diebold, Incorporated (DBD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). The company continues to expect operating cash flow in the range of $805 million to $830 million and free cash flow between $500 million and $525 million.
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Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report NCR Corporation (NCR): Free Stock Analysis Report Diebold, Incorporated (DBD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Quarter in Detail The company's revenues of $1.593 billion missed the Zacks Consensus Estimate of $1.612 billion and decreased 1.7% on a year-over-year basis.
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A better-ranked stock in the technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report NCR Corporation (NCR): Free Stock Analysis Report Diebold, Incorporated (DBD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company's Software revenues on a reported basis were up 3% to $464 million.
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c25103ee-1c20-45c7-ae37-9c57499f9c42
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9893.0
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2017-07-21 00:00:00 UTC
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Zacks.com featured highlights: Belden, KEMET, SYNNEX, Applied Optoelectronics, and American Airlines Group
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AAOI
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https://www.nasdaq.com/articles/zacks.com-featured-highlights%3A-belden-kemet-synnex-applied-optoelectronics-and-american
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For Immediate Release
Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ).
Gain from These Momentum Stocks Using the Driehaus Strategy
Driehaus strategy is generally used by risk-taking investors who bet on momentum stocks for stupendous returns. Richard Driehaus, the pioneer of momentum investing, developed a "buy high and sell higher" strategy. The success of this strategy earned Driehaus a place in Barron's All-Century Team.
The American Association of Individual Investors (AAII) proved that the strategy has the potential to offer high returns. AAII's portfolio, which was developed following the strategy, returned 13.5% and 18.1% in the five- and 10- year timeframe, respectively, compared with -1.1% and 4.2% returns registered by the S&P 500. Thus, investors with a high risk appetite might give = the Driehaus strategy a thought to boost returns.
A Brief Note on Driehaus' Strategy
Regarding the strategy, Driehaus once said: "I would much rather invest in a stock that's increasing in price and take the risk that it may begin to decline than invest in a stock that's already in a decline and try to guess when it will turn around." In line with his insight, AAII took into account the percentage 50-day moving average as one of the key criteria before designing a portfolio.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator - positive relative strength - has also been included. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend.
Moreover, AAII found that Driehaus primarily focused on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.
Screening Parameters
In order to make the strategy more profitable, we have considered stocks that have a Zacks Rank #1 (Strong Buy) and a momentum score of 'A' or 'B'. Our research shows that stocks with a Style Score of 'A' or 'B' when combined with a Zacks Rank #1 or 2 offer the best upside potential.
• Zacks Rank equal to #1
(Only Strong Buy-rated stocks can get through. You can see the complete list of today's Zacks #1 Rank stocks here .)
• Last 5-year average EPS growth rates above 2%
(Strong EPS growth history ensures improving business.)
• Trailing 12 month EPS growth higher than 0 and industry median
(Higher EPS growth compared to the industry average indicates superior stocks.)
• Last four-quarter average EPS surprise greater than 5%
(Positive EPS surprise indicates potential.)
• Positive % 50-day moving average and relative strength over 4 weeks
(High % 50-day moving average and relative strength signal uptrend.)
• Momentum Score equal to or less than B
(Favorable momentum score indicates that it is ideal to take advantage of the momentum with the highest probability of success.)
These few parameters narrowed down the universe of over 7,870 stocks to only 12.
Here are five of the 12 stocks that passed the screen:
Belden Inc. (NYSE: BDC - Free Report ) is a designer and marketer of signal transmission solutions globally. The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of 7.2%.
KEMET Corporation (NYSE: KEM - Free Report ) is a manufacturer and seller of passive electronic components. The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of 72.9%.
SYNNEX Corporation (NYSE: SNX - Free Report ) is a provider of business process services to resellers, system integrators, retailers and original equipment manufacturers. The company has a Momentum Score of 'B' and an average four-quarter positive earnings surprise of 14.8%.
Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) is a designer, manufacturer and seller of fiber-optic networking products. The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of more than 100%.
American Airlines Group Inc. (LON: AAL - Free Report ) is a network air carrier operator. The company has a Momentum Score of 'B' and an average four-quarter positive earnings surprise of 20.2%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
Get the full Report on BDC - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit
https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Belden Inc (BDC): Free Stock Analysis Report
Kemet Corporation (KEM): Free Stock Analysis Report
Synnex Corporation (SNX): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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For Immediate Release Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ). Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) is a designer, manufacturer and seller of fiber-optic networking products. Get the full Report on BDC - FREE Get the full Report on KEM - FREE Get the full Report on SNX - FREE Get the full Report on AAOI - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ). Get the full Report on BDC - FREE Get the full Report on KEM - FREE Get the full Report on SNX - FREE Get the full Report on AAOI - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Belden Inc (BDC): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Synnex Corporation (SNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ). Get the full Report on BDC - FREE Get the full Report on KEM - FREE Get the full Report on SNX - FREE Get the full Report on AAOI - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Belden Inc (BDC): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Synnex Corporation (SNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ). Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) is a designer, manufacturer and seller of fiber-optic networking products. Get the full Report on BDC - FREE Get the full Report on KEM - FREE Get the full Report on SNX - FREE Get the full Report on AAOI - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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9894.0
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2017-07-21 00:00:00 UTC
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Check Point (CHKP) Tops Q2 Earnings, Down on Soft Q3 View
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AAOI
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https://www.nasdaq.com/articles/check-point-chkp-tops-q2-earnings-down-on-soft-q3-view-2017-07-21
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nan
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nan
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Continuing with its upbeat performance for the fourth straight quarter, Check Point Software Technologies Ltd.CHKP yesterday reported strong results for second-quarter 2017. Quarterly revenues came in at the higher-end of the company's expectations, while earnings were above the guidance range. Moreover, the top and bottom lines, both, surpassed the respective Zacks Consensus Estimate.
Check Point's adjusted earnings per share (including stock-based compensation but excluding amortization of intangible assets) of $1.14 beat the Zacks Consensus Estimate of $1.11. Adjusted earnings also climbed approximately 18% on a year-over-year basis, driven mainly by higher revenues, efficient cost management and a lower share count.
On a non-GAAP (excluding stock-based compensation and amortization of intangible assets) basis, the cybersecurity company posted earnings of $1.26, higher than its guidance range of $1.17-$1.25, and marked a 15.6% year-over-year improvement.
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise | Check Point Software Technologies Ltd. Quote
Revenues
Second-quarter revenues came in at $458.6 million, up 8.5% year over year, and beat the Zacks Consensus Estimate of $455 million. The figure was also close to the upper end of the company's guidance range of $440-$465 million (mid-point $452.5 million). Quarterly revenues were mainly driven by strong performance of its small and midsize-enterprise product lines as the company has been successfully able to penetrate through the midmarket and acquire new customers.
Segment wise, the company witnessed sales growth of 11.9% in Products & Software Blades, and 4.4% in Software Updates and Maintenance. The company also reported a 27% surge in subscription revenues at Software Blades.
Geographically, the Americas contributed 49% to revenues and Europe accounted for 34%, while Asia-Pacific, Japan, and the Middle East and Africa added the remaining 17%.
Talking about deal size, the number of new customers who signed deals worth $1 million or more totaled 63, flat year over year. Moreover, customers, who signed deals worth $50,000 and more, contributed 71% to the total order value, which is equal to the second-quarter 2016 tally.
Operating Results
On a year-over-year basis, adjusted gross profit (including stock-based compensation but excluding amortization of intangible assets) increased 8.1% to $405.7 million. However, as a percentage of revenues, gross profit contracted 30 basis points (bps) to 88.5%.
Adjusted operating expenses (including stock-based compensation but excluding amortization of intangible assets) rose 6.5% year over year to $180.8 million. However, as a percentage of revenues, operating expenses contracted 80 basis points (bps) mainly due to efficient cost management.
Adjusted operating income (including stock-based compensation but excluding amortization of intangible assets) came in at $224.9 million, up nearly 9.5% year over year. In addition, margins expanded 40 bps to 49% primarily due to lower operating expenses as a percentage of revenues.
Adjusted net income (including stock-based compensation but excluding amortization of intangible assets and other one-time items calculated on a proportionate tax basis) was $191.3 million or $1.14 per share, up from $169 million or 97 cents reported in the year-ago quarter.
Balance Sheet & Cash Flow
Check Point exited the quarter with cash balances of approximately $3.806 billion, slightly down from $3.797 billion at the end of the first quarter. During the first half of 2017, the company generated operating cash flow of $581.7 million. Additionally, Check Point repurchased about 4.9 million shares for a total cost of $496 million in the first two quarters of 2017.
Share Price Performance
Despite reporting robust quarterly results, shares of Check Point dipped 7% during yesterday's trade as the company hinted that its third-quarter revenues might be hit slightly due to the very special Israeli holiday - Yom Kippur - coinciding with the last day of third quarter.
Israel-based Check Point announced that the entire country will be completely shut down during Yom Kippur and so it won't be able to operate any business activities. Notably, the company normally derives almost $30 million of revenues in the last few days of any quarter.
However, Check Point expects to mitigate some of the impact during the quarter. Also, despite of all this, the company has maintained the outlook on full-year revenues, which signifies that it is optimistic about its long-term prospects.
Notably, shares of Check Point have gained 27.2% year to date, outperforming the industry 's 21.2% rally.
Outlook
Taking into account the aforementioned factors, the company provided outlook for the third quarter. The company expects to generate revenues between $430 million and $465 million (mid-point $447.5 million). The mid-point of the guidance is lower than the Zacks Consensus Estimate of $462.8 million. Non-GAAP earnings are projected in the range of $1.18-$1.28 per share. GAAP earnings per share are anticipated to be 15 cents lesser than the non-GAAP figure. The Zacks Consensus Estimate is pegged at $1.14 per share.
For 2017, Check Point continues to anticipate generating revenues between $1.85 billion and $1.90 billion (mid-point $1.875 billion). The mid-point of the guided range is higher than the Zacks Consensus Estimate of $1.87 billion. Non-GAAP earnings are projected in the band of $5.05-$5.25 per share. GAAP earnings per share are anticipated to be 70 cents lesser than the non-GAAP figure. The Zacks Consensus Estimate is pegged at $4.69.
Our Take
Check Point continues to report splendid quarterly results for the fourth consecutive quarter. The company's top and bottom lines not only came ahead of the respective guidance ranges at mid-points, but also marked solid year-over-year improvement. Although, the third-quarter outlook is slightly disappointing, we believe that the company is well capable of mitigating the third-quarter revenue losses in the fourth quarter.
Rapid adoption of Check Point's data center appliances and continuous enhancements in data center product lines are expected to provide ample top-line support. The company's focus on enhancing mobile capabilities will enable it to tap greater larger opportunities. Furthermore, Check Point's strategy of growing through acquisitions is praiseworthy.
Additionally, we believe that Check Point Software will continue to benefit from strong demand for cybersecurity solutions. It should be noted that the financial well-being, brand image and reputation of enterprises, and governments are always exposed to the risk of cyber threats. Consequently, cybersecurity has become a mission-critical, high-profile requirement.
Nonetheless, changing customer spending behavior, intensifying competition, an uncertain economic environment and currency fluctuations remain headwinds.
Check Point currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Some better-ranked stocks in the broader technology space are Applied Optoelectronics Inc. AAOI , Broadcom Limited AVGO and Advanced Micro Devices, Inc. AMD . While Applied Optoelectronics and Broadcom sport a Zacks Rank #1, Advanced Micro carries a Zacks Rank #2 (Buy).
Applied Optoelectronics, Broadcom and Advanced Micro Devices have expected long-term EPS growth rate of 18.8%, 13.6% and 6.3%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
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Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report
Broadcom Limited (AVGO): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Some better-ranked stocks in the broader technology space are Applied Optoelectronics Inc. AAOI , Broadcom Limited AVGO and Advanced Micro Devices, Inc. AMD . Click to get this free report Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Check Point's adjusted earnings per share (including stock-based compensation but excluding amortization of intangible assets) of $1.14 beat the Zacks Consensus Estimate of $1.11.
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Click to get this free report Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology space are Applied Optoelectronics Inc. AAOI , Broadcom Limited AVGO and Advanced Micro Devices, Inc. AMD . Check Point's adjusted earnings per share (including stock-based compensation but excluding amortization of intangible assets) of $1.14 beat the Zacks Consensus Estimate of $1.11.
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Click to get this free report Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology space are Applied Optoelectronics Inc. AAOI , Broadcom Limited AVGO and Advanced Micro Devices, Inc. AMD . Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise | Check Point Software Technologies Ltd. Quote Revenues Second-quarter revenues came in at $458.6 million, up 8.5% year over year, and beat the Zacks Consensus Estimate of $455 million.
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Some better-ranked stocks in the broader technology space are Applied Optoelectronics Inc. AAOI , Broadcom Limited AVGO and Advanced Micro Devices, Inc. AMD . Click to get this free report Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Check Point's adjusted earnings per share (including stock-based compensation but excluding amortization of intangible assets) of $1.14 beat the Zacks Consensus Estimate of $1.11.
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52ac7354-1042-4bfa-bdc2-4e2941dd36c7
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9895.0
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2017-07-20 00:00:00 UTC
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Gain From These Momentum Stocks Using Driehaus Strategy
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AAOI
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https://www.nasdaq.com/articles/gain-from-these-momentum-stocks-using-driehaus-strategy-2017-07-20
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Driehaus strategy is generally used by risk-taking investors who bet on momentum stocks for stupendous returns. Richard Driehaus, the pioneer of momentum investing, developed a "buy high and sell higher" strategy. The success of this strategy earned Driehaus a place in Barron's All-Century Team.
The American Association of Individual Investors (AAII) proved that the strategy has the potential to offer high returns. AAII's portfolio, which was developed following the strategy, returned 13.5% and 18.1% in the five- and 10- year timeframe, respectively, compared with -1.1% and 4.2% returns registered by the S&P 500. Thus, investors with a high risk appetite might give = the Driehaus strategy a thought to boost returns.
A Brief Note on Driehaus' Strategy
Regarding the strategy, Driehaus once said: "I would much rather invest in a stock that's increasing in price and take the risk that it may begin to decline than invest in a stock that's already in a decline and try to guess when it will turn around." In line with his insight, AAII took into account the percentage 50-day moving average as one of the key criteria before designing a portfolio.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator - positive relative strength - has also been included. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend.
Moreover, AAII found that Driehaus primarily focused on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.
Screening Parameters
In order to make the strategy more profitable, we have considered stocks that have a Zacks Rank #1 (Strong Buy) and a momentum score of 'A' or 'B'. Our research shows that stocks with a Style Score of 'A' or 'B' when combined with a Zacks Rank #1 or 2 offer the best upside potential.
• Zacks Rank equal to #1
(Only Strong Buy-rated stocks can get through. You can see the complete list of today's Zacks #1 Rank stocks here .)
• Last 5-year average EPS growth rates above 2%
(Strong EPS growth history ensures improving business.)
• Trailing 12 month EPS growth higher than 0 and industry median
(Higher EPS growth compared to the industry average indicates superior stocks.)
• Last four-quarter average EPS surprise greater than 5%
(Positive EPS surprise indicates potential.)
• Positive % 50-day moving average and relative strength over 4 weeks
(High % 50-day moving average and relative strength signal uptrend.)
• Momentum Score equal to or less than B
(Favorable momentum score indicates that it is ideal to take advantage of the momentum with the highest probability of success.)
These few parameters narrowed down the universe of over 7,870 stocks to only 12.
Here are five of the 12 stocks that passed the screen:
Belden Inc.BDC is a designer and marketer of signal transmission solutions globally.The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of 7.2%.
KEMET CorporationKEM is a manufacturer and seller of passive electronic components.The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of 72.9%.
SYNNEX CorporationSNX is a provider of business process services to resellers, system integrators, retailers and original equipment manufacturers.The company has a Momentum Score of 'B' and an average four-quarter positive earnings surprise of 14.8%.
Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of more than 100%.
American Airlines Group Inc.AAL is a network air carrier operator.The company has a Momentum Score of 'B' and an average four-quarter positive earnings surprise of 20.2%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at:https://www.zacks.com/performance.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it 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
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Belden Inc (BDC): Free Stock Analysis Report
Synnex Corporation (SNX): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Kemet Corporation (KEM): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of more than 100%. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Belden Inc (BDC): Free Stock Analysis Report Synnex Corporation (SNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report To read this article on Zacks.com click here. Here are five of the 12 stocks that passed the screen: Belden Inc.BDC is a designer and marketer of signal transmission solutions globally.The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of 7.2%.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Belden Inc (BDC): Free Stock Analysis Report Synnex Corporation (SNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of more than 100%. • Trailing 12 month EPS growth higher than 0 and industry median (Higher EPS growth compared to the industry average indicates superior stocks.)
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Belden Inc (BDC): Free Stock Analysis Report Synnex Corporation (SNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of more than 100%. A Brief Note on Driehaus' Strategy Regarding the strategy, Driehaus once said: "I would much rather invest in a stock that's increasing in price and take the risk that it may begin to decline than invest in a stock that's already in a decline and try to guess when it will turn around."
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Applied Optoelectronics, Inc.AAOI is a designer, manufacturer and seller of fiber-optic networking products.The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of more than 100%. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Belden Inc (BDC): Free Stock Analysis Report Synnex Corporation (SNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report To read this article on Zacks.com click here. AAII's portfolio, which was developed following the strategy, returned 13.5% and 18.1% in the five- and 10- year timeframe, respectively, compared with -1.1% and 4.2% returns registered by the S&P 500.
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6158f493-8ade-4648-8e36-fc07ca372601
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9896.0
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2017-07-20 00:00:00 UTC
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Arrow Joins Force With IBM for Internet of Things Support
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AAOI
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https://www.nasdaq.com/articles/arrow-joins-force-with-ibm-for-internet-of-things-support-2017-07-20
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Leading electronic parts distributor, Arrow Electronics, Inc.ARW , has teamed up with International Business Machines Corporation IBM to deliver pioneering solutions to accelerate the growth of Internet of Things (IoT) in Asia Pacific.
The alliance will enable Arrow's ideation-to-production services to integrate with IBM's Watson Internet of Things (IoT) platform to help its customers in Asia Pacific and providing analytic platforms, cloud and security technologies. This will bring continuous and complete IoT solutions to market.
Arrow and IBM's joint offerings will aid CASCADEMIC Solutions, an industrial IoT solutions provider. Abdullah Khan. M, president of CASCADEMIC, stated, "With IBM's Watson IoT platform and Arrow's ideation-to-production services, we are in a strong position to empower our customers and partners to develop smart city applications with integrated IoT solutions that will help significantly reduce development costs and time-to-market."
Market research firm IDC recently acknowledged IBM's Watson Internet of Things (IoT) platform as a "Leader" in its Marketscape for 2017 Worldwide IoT Platforms.
In today's data-driven world, IoT platforms play a huge role. The platform will connect devices, gateways and processes and analyzes gathered information devices for relevant actions. Additionally, security of the entire process is managed as well.
Scope of the IoT Market
According to IDC, Asia Pacific is set to be at the forefront of IoT, with the number of connected devices expected to increase from 3.1 billion to 8.6 billion by 2020. This will create a market opportunity of $583 billion.
According to the news, more than 90% of the world's data has been created in the last two years. We believe that the chances of tapping into such an opportunity within the fast-growing IoT market is astounding. In its Jun 2015 report, the McKinsey Global Institute projected that IoT applications could reach as much as $11.1 trillion every year by 2025. We believe that Arrow will gain from the continued proliferation of IoT devices by adding IoT cloud into its existing solutions,.
Share Price
The stock has returned approximately 24.8% in the last one year, outperforming the Zacks Electronics Parts Distribution industry's gain of 13.2%.
Bottom Line
The integration will help Arrow become a key player in the automotive and industrial IoT segments. Given the ever-increasing number of connected products making their way into our everyday lives, IoT is poised to grow strongly. This alliance provides the company with some key capabilities to cater to this huge opportunity.
Arrow carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Marvell Technology Group Ltd. MRVL , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
The long-term expected earnings per share growth rate for Applied Optoelectronics and Marvell are 18.75% and 15.49%, respectively.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>
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
International Business Machines Corporation (IBM): Free Stock Analysis Report
Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Arrow Electronics, Inc. (ARW): 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.
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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Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Marvell Technology Group Ltd. MRVL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report To read this article on Zacks.com click here. Share Price The stock has returned approximately 24.8% in the last one year, outperforming the Zacks Electronics Parts Distribution industry's gain of 13.2%.
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Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Marvell Technology Group Ltd. MRVL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report To read this article on Zacks.com click here. The alliance will enable Arrow's ideation-to-production services to integrate with IBM's Watson Internet of Things (IoT) platform to help its customers in Asia Pacific and providing analytic platforms, cloud and security technologies.
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Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Marvell Technology Group Ltd. MRVL , each sporting a Zacks Rank #1 (Strong Buy). M, president of CASCADEMIC, stated, "With IBM's Watson IoT platform and Arrow's ideation-to-production services, we are in a strong position to empower our customers and partners to develop smart city applications with integrated IoT solutions that will help significantly reduce development costs and time-to-market."
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Some other top-ranked stocks in the broader technology sector are Applied Optoelectronics, Inc. AAOI and Marvell Technology Group Ltd. MRVL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report To read this article on Zacks.com click here. Scope of the IoT Market According to IDC, Asia Pacific is set to be at the forefront of IoT, with the number of connected devices expected to increase from 3.1 billion to 8.6 billion by 2020.
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c6de404d-7f2d-4365-a3d4-7199586456db
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9897.0
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2017-07-20 00:00:00 UTC
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Here's Why You Should Add Symantec to Your Portfolio Now
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AAOI
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https://www.nasdaq.com/articles/heres-why-you-should-add-symantec-to-your-portfolio-now-2017-07-20
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nan
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nan
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Shares of Symantec CorporationSYMC , a cyber security firm, have been performing well of late.
If you haven't taken advantage of the share price appreciation yet, its time you add the stock to your portfolio, as it looks promising and is poised to maintain the momentum. This Zacks Rank #2 (Buy) stock has an estimated long-term earnings growth rate of 10.3% and a market cap of $18.92 billion.
Estimates Northbound
Estimates for Symantec have moved up in the last 60 days, reflecting the optimistic outlook of analysts. Also, the earnings estimates for fiscal 2018 and 2019 have gone up in the same time frame.
For fiscal 2018, the Zacks Consensus Estimate for earnings has gone up 3.7% in the last 60 days and is pegged at $1.13, which indicates a positive for the company. The Zacks Consensus Estimate for fiscal 2019 also moved north 12 cents (9.2%) to $1.43 during the same time frame.
Outpacing the Industry
Symantec has outperformed the Zacks categorized Computer-Software industry in the last one year. Share price of Symantec has increased 52.9% compared with the industry's gain of just 27.6%.
Valuation
On the valuation front too, the stock looks attractive. The company currently trades at a forward P/E multiple of 27.5x, significantly lower than the Zacks industry's average of 36.3x. The ratio, which is obtained by dividing a stock's current market price with its historical or estimated earnings, measures how much an investor needs to shell out per dollar of earnings. Therefore, the lower the P/E of a stock, the better for a value investor.
Growth Drivers
Symantec provides a wide range of content security and information backup solutions to individuals and enterprises. Moreover, the company's mobile and cloud security products are gradually gaining market acceptance. The storage and server management business provides recovery solutions and heterogeneous storage-end server platforms. We believe that these innovative products and solutions will help Symantec win customers, thus increasing its business volume.
In an effort to recapture its momentum in the fast growing cybersecurity market, the company has resorted to acquisitions. Most recently, Symantec inked a deal to acquire Skycure, an Israel-based company. The buyout was aimed at providing security service against mobile threats and malwares across multiple devices like Apple's AAPL iOS, Microsoft's MSFT Windows and Android.
The company also inked a deal to acquire Fireglass, an Israel-based company, which helps organizations in protecting confidential information from any device by eliminating malware from web and email without any endpoint software. Last year, Symantec acquired Blue Coat, Inc., a leading web security solution provider, from private equity firm Bain Capital. Blue Coat's security solutions allow organizations to protect their web gateways from cyber-attacks. Addition of Blue Coat is expected to enhance Symantec's capabilities significantly.
We believe that these acquisitions will enable the company to increase its scale of operations, gain customers and enhance its technological expertise.
Moreover, investment in growth areas such as Enterprise Backup, Storage Management and Security businesses are likely to boost Symantec's long-term prospects. Additionally, restructuring initiatives and synergies from buyouts are expected to support the company's bottom line.
Stock to Consider
Another top-ranked stock in the broader technology includes Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics, has a long-term EPS growth rate of 18.75%.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>
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
Apple Inc. (AAPL): Free Stock Analysis Report
Symantec Corporation (SYMC): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Stock to Consider Another top-ranked stock in the broader technology includes Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The buyout was aimed at providing security service against mobile threats and malwares across multiple devices like Apple's AAPL iOS, Microsoft's MSFT Windows and Android.
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Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Stock to Consider Another top-ranked stock in the broader technology includes Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). This Zacks Rank #2 (Buy) stock has an estimated long-term earnings growth rate of 10.3% and a market cap of $18.92 billion.
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Stock to Consider Another top-ranked stock in the broader technology includes Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. This Zacks Rank #2 (Buy) stock has an estimated long-term earnings growth rate of 10.3% and a market cap of $18.92 billion.
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Stock to Consider Another top-ranked stock in the broader technology includes Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. This Zacks Rank #2 (Buy) stock has an estimated long-term earnings growth rate of 10.3% and a market cap of $18.92 billion.
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0a6a5441-620c-48f2-8981-17e3c4828307
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9898.0
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2017-07-20 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Applied Optoelectronics, Ultra Clean Holdings, Coherent, Lumentum Holdings and PayPal Holdings
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AAOI
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-applied-optoelectronics-ultra-clean-holdings-coherent
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nan
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For Immediate Release
Chicago, IL - July 20, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ), Ultra Clean Holdings, Inc. (NASDAQ: UCTT - Free Report ), Coherent, Inc. (NASDAQ: COHR - Free Report ), Lumentum Holdings Inc. (NASDAQ: LITE - Free Report ) and PayPal Holdings, Inc. (NASDAQ: PYPL - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for fre.
Here are highlights from Wednesday's Analyst Blog:
Nasdaq Posts Longest Winning Streak in 2 Years: 5 Top Picks
The tech-heavy Nasdaq staged a spectacular rebound to post its longest run of gains in two years on Jul 18. Boosted by stellar results from Netflix, the index has now increased over eight successive sessions. This is its longest stretch of increases since Feb 24, 2015 (when the index had risen over 10 consecutive sessions). But its performance is even more remarkable this time around since it has recovered from a series of recent reverses.
Concerns over overvaluation have plagued the index since June, a month the index closed with losses. Even so, it managed to post the best first half of a year in eight years. This is because investors are continuing to bet on a strong economy and bullish earnings to boost markets. Investing in stocks which make up the Nasdaq continues to make for a profitable proposition at this point in time.
Longest Stretch of Gains since 2015
The primary catalyst for extending this round of gains has been bullish results from Netflix. Shares of the streaming service provider jumped 13.5% after it added over 5.2 million subscribers during the second quarter, much more than the expected 3.2 million. Also, earnings grew 66.7% while revenues increased 32.3% on a year-over-year basis. (Read: Netflix Q2 Earnings Miss, Gains on Subscriber Growth )
Market watchers had backed tech stocks to bounce back, riding on a strong earnings performance. The sector's recent slide had begun on Jun 9, when a report from Goldman Sachs triggered off several questions about gains made recently. It questioned the sky-high valuation of tech stocks, particularly the likes of Facebook, Amazon, Apple, Microsoft and Alphabet.
Overvaluation concerns then triggered off a spate of losses for tech stocks. Ultimately, the Nasdaq closed the month of June 0.9% lower. This was the index's first monthly loss since the 2.3% decline in Oct 2016.
Solid First Half Performance, Strong Fundamentals
Despite the decline in June, the Nasdaq still managed to finish the second half 14.1% higher. Additionally, the index recorded its best performance for the same period since 2009. At that time, the Nasdaq had skyrocketed by 43.9% to post a far more spectacular performance. Even so, the index notched up 38 all-time highs during the first half of this year.
This is the largest number of record finishes recorded since the same period in 1986. At that time it had ended at record levels on 52 occasions.
Tuesday's gains come at a time when the fate of President Trump's new healthcare law looks increasingly uncertain. In the event that it fails to gain passage, fresh questions will arise about the new administration's ability to deliver on the policy front.
It seems investors are ignoring these developments, choosing instead to focus on low interest rates inflation, a soft dollar and a resilient economy. Strong earnings performances of the likes of Netflix are likely to further bolster markets in the days ahead.
Our Choices
Investors seem to have recovered their confidence in tech stocks, choosing to ignore recent concerns about valuations. A strong earnings show, such as the one from Netflix has bolstered such sentiments, leading to fresh gains for the sector over the past few sessions.
Investing in tech stocks which make up the Nasdaq looks like an extremely prudent option at this point. However, picking winning stocks may prove to be difficult.
This is where our VGM score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score.
Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers.
Applied Optoelectronics has a Zacks Rank #1 (Strong Buy) and a VGM Score of B. The company has expected earnings growth of more than 100% for the current year. Its earnings estimate for the current year has improved by 4.8% over the last 30 days. The stock has gained 284.7% year to date.
Ultra Clean Holdings, Inc. (NASDAQ: UCTT - Free Report ) is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries.
Ultra Clean Holdings has a VGM Score of A. The company has expected earnings growth of more than 100% for the current year. Its earnings estimate for the current year has improved by 1.6% over the last 30 days. The stock has gained 142% year to date. The stock has a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Coherent, Inc. (NASDAQ: COHR - Free Report ) designs, manufactures and supplies electro-optical systems and medical instruments utilizing laser, precision optics and microelectronic technologies.
Coherent has a Zacks Rank #2 (Buy) and a VGM Score of B. The company has expected earnings growth of more than 100% for the current year. Its earnings estimate for the current year has improved by 0.4% over the last 60 days. The stock has gained 93.2% year to date.
Lumentum Holdings Inc. (NASDAQ: LITE - Free Report ) is a manufacturer of innovative optical and photonic products.
Lumentum Holdings has a Zacks Rank #2 and a VGM Score of B. The company has expected earnings growth of 70.1% for the current year. Its earnings estimate for the current year has improved by 18% over the last 30 days. The stock has gained 57.1% year to date.
PayPal Holdings, Inc. (NASDAQ: PYPL - Free Report ) is a technology platform offering online payment solutions.
PayPal Holdings has a Zacks Rank #2 and a VGM Score of B. The company has expected earnings growth of 12.1% for the current year. The stock has gained 49.4% year to date.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Ultra Clean Holdings, Inc. (UCTT): Free Stock Analysis Report
Coherent, Inc. (COHR): Free Stock Analysis Report
Lumentum Holdings Inc. (LITE): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ), Ultra Clean Holdings, Inc. (NASDAQ: UCTT - Free Report ), Coherent, Inc. (NASDAQ: COHR - Free Report ), Lumentum Holdings Inc. (NASDAQ: LITE - Free Report ) and PayPal Holdings, Inc. (NASDAQ: PYPL - Free Report ). Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Get the full Report on AAOI - FREE Get the full Report on UCTT - FREE Get the full Report on COHR - FREE Get the full Report on LITE - FREE Get the full Report on PYPL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ), Ultra Clean Holdings, Inc. (NASDAQ: UCTT - Free Report ), Coherent, Inc. (NASDAQ: COHR - Free Report ), Lumentum Holdings Inc. (NASDAQ: LITE - Free Report ) and PayPal Holdings, Inc. (NASDAQ: PYPL - Free Report ). Get the full Report on AAOI - FREE Get the full Report on UCTT - FREE Get the full Report on COHR - FREE Get the full Report on LITE - FREE Get the full Report on PYPL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Ultra Clean Holdings, Inc. (UCTT): Free Stock Analysis Report Coherent, Inc. (COHR): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ), Ultra Clean Holdings, Inc. (NASDAQ: UCTT - Free Report ), Coherent, Inc. (NASDAQ: COHR - Free Report ), Lumentum Holdings Inc. (NASDAQ: LITE - Free Report ) and PayPal Holdings, Inc. (NASDAQ: PYPL - Free Report ). Get the full Report on AAOI - FREE Get the full Report on UCTT - FREE Get the full Report on COHR - FREE Get the full Report on LITE - FREE Get the full Report on PYPL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Ultra Clean Holdings, Inc. (UCTT): Free Stock Analysis Report Coherent, Inc. (COHR): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ), Ultra Clean Holdings, Inc. (NASDAQ: UCTT - Free Report ), Coherent, Inc. (NASDAQ: COHR - Free Report ), Lumentum Holdings Inc. (NASDAQ: LITE - Free Report ) and PayPal Holdings, Inc. (NASDAQ: PYPL - Free Report ). Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Get the full Report on AAOI - FREE Get the full Report on UCTT - FREE Get the full Report on COHR - FREE Get the full Report on LITE - FREE Get the full Report on PYPL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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2be3e617-0f0b-402f-b6b3-dbc3c32491fe
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9899.0
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2017-07-20 00:00:00 UTC
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Corning Acquires SpiderCloud, Expands in Wireless Market
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AAOI
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https://www.nasdaq.com/articles/corning-acquires-spidercloud-expands-in-wireless-market-2017-07-20
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nan
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nan
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Corning Inc.GLW recently announced that it has completed the acquisition of scalable small cell systems provider SpiderCloud Wireless. The company will be integrated into Corning's Optical Solutions business.
However, the terms of the deal were not disclosed. According to a recent article by RCR Wireless News, SpiderCloud was worth approximately $200-$250 million or 2.0-2.5 times of 12-month forward revenues.
Small cells are effective in supplementing macro networks to provide superior coverage and capacity indoors as well as outdoors. SpiderCloud's Enterprise Radio Access Network (E-RAN) system uses high capacity enterprise small cells (Radio Nodes) and small cell controller (Services Nodes) to provide reliable coverage as well as massive capacity in indoor environments.
Notably, telecom operators like Verizon VZ and Vodafone VOD recognize E-RAN's expertise in delivering high indoor capacity. SpiderCloud notes that a dual-carrier LTE system with just 24 radio nodes can offer more than 2.5 Gbps of throughput, enough to stream 500 HD video streams. An E-RAN system with 100 radio nodes can do four times as much.
We note that the addition of SpiderCloud will help Corning to offer indoor cellular solutions. The expansion of the company's product portfolio will help it to rapidly penetrate the wireless network equipment market going forward.
Share Price Momentum to Continue
Corning has outperformed the S&P 500 on a year-to-date basis. While the index gained 12.1%, the stock returned 32.2% over the same time frame.
We believe that growing demand for Corning's fiber optics products, as evident from the recent deal with Verizon , is a major positive. Moreover, strong demand for Gorilla Glass 5 (GG5) is a key catalyst.
These along with strategic acquisitions like SpiderCloud, Gerresheimer's Pharmaceutical Glass Tubing Business, Alliance Fiber Optic Products and STRAN Technologies will help the stock continue its momentum in the rest of 2017.
Corning Incorporated Revenue (TTM)
Corning Incorporated Revenue (TTM) | Corning Incorporated Quote
Corning now anticipates sales to grow from $3 billion in 2016 to $5 billion in 2020 through product innovation as well as acquisitions. Notably, management stated that the company is spending on acquisitions, as it looks to expand its total addressable market (TAM).
Zacks Rank & Stock to Consider
Corning currently has a Zacks Rank #3 (Hold).
A better-ranked stock in the technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The long-term earnings growth rate for Applied Optoelectronics is projected to be 4.1%.
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Verizon Communications Inc. (VZ): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Corning Incorporated (GLW): Free Stock Analysis Report
Vodafone Group PLC (VOD): 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.
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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A better-ranked stock in the technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Click to get this free report Verizon Communications Inc. (VZ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Corning Incorporated (GLW): Free Stock Analysis Report Vodafone Group PLC (VOD): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, telecom operators like Verizon VZ and Vodafone VOD recognize E-RAN's expertise in delivering high indoor capacity.
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Click to get this free report Verizon Communications Inc. (VZ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Corning Incorporated (GLW): Free Stock Analysis Report Vodafone Group PLC (VOD): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). SpiderCloud's Enterprise Radio Access Network (E-RAN) system uses high capacity enterprise small cells (Radio Nodes) and small cell controller (Services Nodes) to provide reliable coverage as well as massive capacity in indoor environments.
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Click to get this free report Verizon Communications Inc. (VZ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Corning Incorporated (GLW): Free Stock Analysis Report Vodafone Group PLC (VOD): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). SpiderCloud's Enterprise Radio Access Network (E-RAN) system uses high capacity enterprise small cells (Radio Nodes) and small cell controller (Services Nodes) to provide reliable coverage as well as massive capacity in indoor environments.
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A better-ranked stock in the technology sector is Applied Optoelectronics Inc. AAOI , which sports a Zacks Rank #1 (Strong Buy). Click to get this free report Verizon Communications Inc. (VZ): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Corning Incorporated (GLW): Free Stock Analysis Report Vodafone Group PLC (VOD): Free Stock Analysis Report To read this article on Zacks.com click here. We believe that growing demand for Corning's fiber optics products, as evident from the recent deal with Verizon , is a major positive.
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a8ca1c25-2584-439f-9a04-470d10b77e4f
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