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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum Score
Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: KB Home (KBH - Free Report)
Based in Los Angeles, CA, KB Home is a well-known homebuilder in the United States and one of the largest in the state. The company’s revenues are generated from Homebuilding (accounting for 99.5% of fiscal 2023 total revenues) and Financial Services (0.5%) operations.
KBH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.84; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.26 to $7.59 per share. KBH also boasts an average earnings surprise of 32.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, KBH should be on investors' short list.
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https://www.zacks.com/stock/news/2217168/are-you-a-value-investor-this-1-stock-could-be-the-perfect-pick?-this-1-stock-could-be-the-perfect-pick
| 2024-01-30T02:59:44Z
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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cameco (CCJ - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
Cameco is a member of the Basic Materials sector. This group includes 236 individual stocks and currently holds a Zacks Sector Rank of #15. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Cameco is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CCJ's full-year earnings has moved 18% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, CCJ has gained about 7.6% so far this year. Meanwhile, the Basic Materials sector has returned an average of 6.5% on a year-to-date basis. This shows that Cameco is outperforming its peers so far this year.
Uranium Energy (UEC - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 16.1%.
The consensus estimate for Uranium Energy's current year EPS has increased 57.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cameco is a member of the Mining - Miscellaneous industry, which includes 56 individual companies and currently sits at #165 in the Zacks Industry Rank. This group has gained an average of 7.8% so far this year, so CCJ is slightly underperforming its industry in this area. Uranium Energy is also part of the same industry.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Cameco and Uranium Energy as they could maintain their solid performance.
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https://www.zacks.com/stock/news/2217170/is-cameco-ccj-outperforming-other-basic-materials-stocks-this-year?
| 2024-01-30T02:59:50Z
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For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Otter Tail (OTTR - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.
Otter Tail is one of 104 companies in the Utilities group. The Utilities group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Otter Tail is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for OTTR's full-year earnings has moved 7.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, OTTR has moved about 4% on a year-to-date basis. Meanwhile, the Utilities sector has returned an average of -7.2% on a year-to-date basis. This means that Otter Tail is performing better than its sector in terms of year-to-date returns.
Another stock in the Utilities sector, Swisscom AG (SCMWY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 1%.
The consensus estimate for Swisscom AG's current year EPS has increased 1.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Otter Tail belongs to the Utility - Electric Power industry, which includes 58 individual stocks and currently sits at #110 in the Zacks Industry Rank. On average, this group has lost an average of 10.4% so far this year, meaning that OTTR is performing better in terms of year-to-date returns.
Swisscom AG, however, belongs to the Diversified Communication Services industry. Currently, this 13-stock industry is ranked #174. The industry has moved +12.3% so far this year.
Investors interested in the Utilities sector may want to keep a close eye on Otter Tail and Swisscom AG as they attempt to continue their solid performance.
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https://www.zacks.com/stock/news/2217171/is-otter-tail-ottr-outperforming-other-utilities-stocks-this-year?
| 2024-01-30T02:59:56Z
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Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Is Archrock Inc. (AROC - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.
Archrock Inc. is a member of the Oils-Energy sector. This group includes 249 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Archrock Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AROC's full-year earnings has moved 15.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, AROC has returned 8.6% so far this year. Meanwhile, the Oils-Energy sector has returned an average of 1.5% on a year-to-date basis. As we can see, Archrock Inc. is performing better than its sector in the calendar year.
Another stock in the Oils-Energy sector, Expro Group Holdings (XPRO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 13.5%.
Over the past three months, Expro Group Holdings' consensus EPS estimate for the current year has increased 2.8%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Archrock Inc. belongs to the Oil and Gas - Field Services industry, a group that includes 23 individual stocks and currently sits at #216 in the Zacks Industry Rank. On average, stocks in this group have gained 6% this year, meaning that AROC is performing better in terms of year-to-date returns.
Expro Group Holdings, however, belongs to the Oil and Gas - Production and Pipelines industry. Currently, this 11-stock industry is ranked #161. The industry has moved +10.4% so far this year.
Investors with an interest in Oils-Energy stocks should continue to track Archrock Inc. and Expro Group Holdings. These stocks will be looking to continue their solid performance.
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https://www.zacks.com/stock/news/2217172/is-archrock-aroc-stock-outpacing-its-oils-energy-peers-this-year?
| 2024-01-30T03:00:02Z
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The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has AlloVir, Inc. (ALVR - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.
AlloVir, Inc. is one of 1075 individual stocks in the Medical sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. AlloVir, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ALVR's full-year earnings has moved 57.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that ALVR has returned about 4.4% since the start of the calendar year. Meanwhile, stocks in the Medical group have lost about 0.9% on average. This means that AlloVir, Inc. is performing better than its sector in terms of year-to-date returns.
Another stock in the Medical sector, Arcutis Biotherapeutics, Inc. (ARQT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 64.1%.
In Arcutis Biotherapeutics, Inc.'s case, the consensus EPS estimate for the current year increased 32.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, AlloVir, Inc. belongs to the Medical - Drugs industry, which includes 192 individual stocks and currently sits at #94 in the Zacks Industry Rank. Stocks in this group have lost about 0.9% so far this year, so ALVR is performing better this group in terms of year-to-date returns.
Arcutis Biotherapeutics, Inc. however, belongs to the Medical - Biomedical and Genetics industry. Currently, this 521-stock industry is ranked #96. The industry has moved -13.6% so far this year.
Investors interested in the Medical sector may want to keep a close eye on AlloVir, Inc. and Arcutis Biotherapeutics, Inc. as they attempt to continue their solid performance.
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https://www.zacks.com/stock/news/2217173/are-medical-stocks-lagging-allovir-alvr-this-year?
| 2024-01-30T03:00:09Z
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Citizens Community Bancorp, Inc. (CZWI - Free Report) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 46.15%. A quarter ago, it was expected that this company would post earnings of $0.24 per share when it actually produced earnings of $0.24, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Citizens Community Bancorp, Inc.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Citizens Community Bancorp, Inc. Shares have added about 3.9% since the beginning of the year versus the S&P 500's gain of 2.5%.
What's Next for Citizens Community Bancorp, Inc.
While Citizens Community Bancorp, Inc. Has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Citizens Community Bancorp, Inc. Mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $13.7 million in revenues for the coming quarter and $1.02 on $57.3 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Savings and Loan is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Finance sector, Cambridge (CATC - Free Report) , is yet to report results for the quarter ended December 2023. The results are expected to be released on January 30.
This bank is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of -52.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Cambridge's revenues are expected to be $37.7 million, down 26% from the year-ago quarter.
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https://www.zacks.com/stock/news/2217174/citizens-community-bancorp-inc-czwi-tops-q4-earnings-and-revenue-estimates
| 2024-01-30T03:00:15Z
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Franklin Resources (BEN - Free Report) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 14.04%. A quarter ago, it was expected that this investment manager would post earnings of $0.60 per share when it actually produced earnings of $0.84, delivering a surprise of 40%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Franklin Resources
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Franklin Resources shares have lost about 7.4% since the beginning of the year versus the S&P 500's gain of 2.5%.
What's Next for Franklin Resources?
While Franklin Resources has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Franklin Resources: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.61 on $2.07 billion in revenues for the coming quarter and $2.52 on $7.96 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, TPG Inc. (TPG - Free Report) , has yet to report results for the quarter ended December 2023. The results are expected to be released on February 13.
This company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -28.8%. The consensus EPS estimate for the quarter has been revised 3.6% lower over the last 30 days to the current level.
TPG Inc.'s revenues are expected to be $410.35 million, up 33.5% from the year-ago quarter.
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https://www.zacks.com/stock/news/2217175/franklin-resources-ben-surpasses-q1-earnings-and-revenue-estimates
| 2024-01-30T03:00:23Z
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Eaton Corporation (ETN - Free Report) is scheduled to release its fourth-quarter 2023 earnings on Feb 1, before the opening bell. The power management company delivered an earnings surprise of 4.23% in the trailing four quarters, on average.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
Massive improvements in the data center space are likely to have positively impacted Eaton’s earnings as higher power requirements will continue to generate interest in solutions to manage cost and resilience. Eaton’s fourth-quarter earnings are expected to have been positively impacted by organic growth in most of its segments.
Megatrends and re-industrialization in the markets in which Eaton operates are driving significant capital investments and creating demand for the company’s products. The ongoing buyback of shares is also likely to have had a positive impact on earnings.
Expectations
Eaton expects fourth-quarter earnings in the range of $2.39-$2.49 per share. It anticipates organic revenue growth of 8-10%. The segmental operating margin is expected to be 22.3-22.7% for the quarter. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.47 per share, indicating an improvement of 19.9% from the prior-year reported figure.
What Our Quantitative Model Predicts
Our proven model predicts a likely earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you will see below.
Earnings ESP: Eaton has an Earnings ESP of +0.20%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Eaton carries a Zacks Rank #2.
Other Stocks to Consider
Investors can also consider the following players from the same sector that have the right combination of elements to beat on earnings in the upcoming release.
Caterpillar Inc. (CAT - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter 2023 results on Feb 5. It currently has an Earnings ESP of +2.02% and a Zacks Rank #3.
Caterpillar’s long-term (three- to five-year) earnings growth is projected at 12.89%. The Zacks Consensus Estimate for CAT’s 2024 earnings per share indicates a year-over-year decline of 0.32%.
Stanley Black & Decker (SWK - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter 2023 results on Feb 1. It has an Earnings ESP of +10.35% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SWK’s long-term earnings growth is projected at 12.4%. The Zacks Consensus Estimate for SWK’s 2024 earnings per share indicates an increase of 1.2% in the last 30 days.
Emerson (EMR - Free Report) is likely to come up with an earnings beat when it reports first-quarter fiscal 2024 on Feb 7, before the market opens. It has an Earnings ESP of +0.41% and a Zacks Rank #3 at present.
Emerson’s long-term earnings growth is projected at 10.2%. The Zacks Consensus Estimate for EMR’s fiscal 2024 earnings per share indicates an increase of 6.2% in the last 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Caterpillar Inc. (CAT) - free report >>
Emerson Electric Co. (EMR) - free report >>
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https://www.zacks.com/stock/news/2217177/eaton-etn-to-report-q4-earnings-whats-in-the-cards?
| 2024-01-30T03:00:29Z
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Ericsson (ERIC - Free Report) recently secured two funding agreements with the European Investment Bank (EIB), totaling EUR 420 million, with an initial disbursement of EUR 250 million in December 2023. This strategic move is aimed at fortifying Ericsson's financial position and enhancing its research and development (R&D) initiatives in advanced wireless technology.
The funds are designated to support Ericsson's R&D endeavors from 2023 to 2025 and will play a pivotal role in its commitment to achieving a Net Zero target by 2040. The investments align with its broader goal of reducing energy consumption in global mobile networks, thus contributing to environmental sustainability. The investments further underscore the positive impact these developments will likely have on operator customers and various industrial sectors.
Importantly, this funding serves as a key component of Ericsson's overall financial strategy, complementing other funding sources. In December 2023, Ericsson inked a EUR 100 million green funding agreement with the Nordic Investment Bank (NIB), specifically allocated for R&D in wireless technology. Furthermore, in November 2023, Ericsson successfully issued a green euro-denominated 500 million 4.5-year bond, reinforcing its commitment to sustainable financing.
The secured funding positions Ericsson to advance its R&D capabilities, contributing significantly to its growth and sustainability objectives. As the company channels these resources toward cutting-edge wireless technology, it is poised to benefit from increased competitiveness and energy efficiency, ultimately creating positive impacts across various sectors.
With the emergence of the smartphone market and the subsequent usage of mobile broadband, user demand for coverage speed and quality has increased exponentially. Further, to maintain performance with increased traffic, there is a continuous need for network tuning and optimization. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.
The company focuses on 5G system development and has undertaken many notable endeavors to position itself as a market leader. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson expects mainstream 4G offerings to give way to 5G technology in the future. It currently has 157 live 5G networks across the globe, spanning 66 countries.
The stock has gained 0.5% over the past year compared with the industry’s growth of 6.1%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Ericsson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Workday Inc. (WDAY - Free Report) , carrying a Zacks Rank #2 (Buy), delivered a trailing four-quarter average earnings surprise of 13.24%. In the last reported quarter, it delivered an earnings surprise of 9.29%. It has a long-term earnings growth expectation of 26.5%.
Workday is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
Headquartered in Wilmington, DE, InterDigital, Inc. (IDCC - Free Report) is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
This Zacks Rank #2 stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Juniper Networks Inc. (JNPR - Free Report) , carrying a Zacks Rank #2, is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build network infrastructure used for services and applications based on a single Internet protocol network worldwide. Juniper offers a broad range of routing, switching and security products.
It delivered an earnings surprise of 6.5%, on average, in the trailing four quarters. Juniper has a long-term earnings growth expectation of 9.9%. It has a VGM Score of B.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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https://www.zacks.com/stock/news/2217178/ericsson-eric-boosts-rd-capabilities-with-key-funding?d-capabilities-with-key-funding
| 2024-01-30T03:00:35Z
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only as a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Arch Capital Group (ACGL - Free Report)
Established in 1995 and headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. offers insurance, reinsurance and mortgage insurance across the world. Through its wholly-owned subsidiaries, the property and casualty (P&C) insurer provides a wide range of products and services, which include primary and excess casualty coverages, professional indemnity, workers compensation and umbrella liability and employers liability insurance coverages. The company offers a full range of property, casualty and mortgage insurance and reinsurance lines while maintaining a focus on writing specialty lines of insurance and reinsurance.
ACGL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Finance stock. ACGL has a Momentum Style Score of B, and shares are up 7.6% over the past four weeks.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.03 to $7.90 per share. ACGL also boasts an average earnings surprise of 35.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ACGL should be on investors' short list.
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https://www.zacks.com/stock/news/2217180/heres-why-arch-capital-group-acgl-is-a-strong-momentum-stock
| 2024-01-30T03:00:41Z
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Visa (V - Free Report)
Incorporated in 2007 as a Delaware stock corporation and headquartered in San Francisco, CA, Visa Inc. operates as a payments technology company all over the world. The company went public in March 2008 via an initial public offering (IPO). It was founded in 1958. The company has evolved and grown over the course of the last six decades:
V is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Business Services stock. V has a Momentum Style Score of A, and shares are up 2.9% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.01 to $9.91 per share. V boasts an average earnings surprise of 4.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, V should be on investors' short list.
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https://www.zacks.com/stock/news/2217182/heres-why-visa-v-is-a-strong-momentum-stock
| 2024-01-30T03:00:48Z
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: TE Connectivity (TEL - Free Report)
TE Connectivity manufactures and designs products that connect and protect the flow of power and data inside millions of products used by consumers and industries.
TEL is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. TEL has a Momentum Style Score of A, and shares are up 2.8% over the past four weeks.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.11 to $7.49 per share. TEL boasts an average earnings surprise of 5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TEL should be on investors' short list.
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https://www.zacks.com/stock/news/2217184/are-you-a-momentum-investor-this-1-stock-could-be-the-perfect-pick?-this-1-stock-could-be-the-perfect-pick
| 2024-01-30T03:00:50Z
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Accenture (ACN - Free Report)
Years of investment in digital, cloud and security strategy has helped Accenture evolve as a trusted and viable consulting services provider. It is currently one of the top consultancy firms of the world by revenues that increased 4% in fiscal 2023 with a contribution of 52% from consulting services.
ACN is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Business Services stock. ACN has a Momentum Style Score of B, and shares are up 5.8% over the past four weeks.
Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.02 to $12.22 per share. ACN also boasts an average earnings surprise of 5.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ACN should be on investors' short list.
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https://www.zacks.com/stock/news/2217185/are-you-a-momentum-investor-this-1-stock-could-be-the-perfect-pick?-this-1-stock-could-be-the-perfect-pick
| 2024-01-30T03:00:56Z
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum Score
Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Nordstrom (JWN - Free Report)
Founded in 1901 as a retail shoe business, and headquartered in Seattle, Washington, Nordstrom Inc. is a leading fashion specialty retailer in the United States. The company offers an extensive selection of both branded and private-label merchandise, which are positioned in the upscale segment of the industry. Meanwhile, the company offers high-quality apparel, shoes, cosmetics and related accessories for men, women, young adults and children through a variety of channels. These channels are namely, Nordstrom branded full-line stores; Nordstrom Rack stores; Jeffrey boutiques; clearance stores under the Last Chance name; Trunk Club clubhouses and Nordstrom Local. Also, the company serves customers online through Nordstrom.com; Nordstromrack.com; HauteLook; and TrunkClub.com.
JWN is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. JWN has a Momentum Style Score of A, and shares are up 7.5% over the past four weeks.
For fiscal 2024, one analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.06 per share. JWN boasts an average earnings surprise of 87.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, JWN should be on investors' short list.
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https://www.zacks.com/stock/news/2217186/are-you-a-momentum-investor-this-1-stock-could-be-the-perfect-pick?-this-1-stock-could-be-the-perfect-pick
| 2024-01-30T03:01:02Z
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Mobileye Global Inc. (MBLY - Free Report) registered fourth-quarter 2023 adjusted earnings per share of 28 cents, outpacing the Zacks Consensus Estimate and the year-ago quarter’s figure of 27 cents. Total revenues amounted to $637 million, up 13% year over year, beating the Zacks Consensus Estimate of $636 million.
Financials
Mobileye’s gross margin in the fourth quarter of 2023 increased 91 basis points from the prior-year period, driven by reduced costs related to the amortization of intangible assets as a percentage of revenues, partly offset by higher expenses associated with the EyeQ chip. However, adjusted gross margin declined 5 percentage points year over year due to the increased cost of the EyeQ chip.
Adjusted operating margin increased 33 basis points year over year amid revenue growth and decreasing operating expenses as a percentage of revenues.
Mobileye had cash and cash equivalents of $1,212 million as of Dec 30, 2023, up from $1,024 million as of Dec 31, 2022. Operating cash flow for the year (ended Dec 30, 2023) was $394 million. Capex was $98 million during the same timeframe.
2024 Guidance
For the full year of 2024, Mobileye estimates revenues to be in the range of $1,830-$1,960 million. It expects operating loss in the band of $468-$378 million. Amortization of acquired intangible assets is estimated to be around $444 million. Share-based compensation expenses are projected in the range of $294 million. Adjusted operating income is estimated in the band of $270-$360 million.
Zacks Rank & Key Picks
MBLY currently carries a Zacks Rank #4 (Sell).
Some better-ranked players in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , BYD Company Limited (BYDDY - Free Report) and Mercedes-Benz Group AG (MBGAF - Free Report) . HMC and BYDDY sport a Zacks Rank #1 (Strong Buy) each, while MBGAF carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up by 7 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings suggests year-over-year growth of 36.5% and 70.6%, respectively. The EPS estimate for 2024 has improved by 30 cents in the past seven days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales suggests year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have improved by a penny and 30 cents, respectively, in the past 60 days.
See More Zacks Research for These Tickers
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https://www.zacks.com/stock/news/2217192/mobileye-mbly-q4-earnings-revenues-surpass-estimates?-revenues-surpass-estimates
| 2024-01-30T03:01:08Z
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Shares of Synchronoss (SNCR - Free Report) have gained 16.3% over the past four weeks to close the last trading session at $7.22, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $20.02 indicates a potential upside of 177.3%.
The mean estimate comprises three short-term price targets with a standard deviation of $15.98. While the lowest estimate of $4.05 indicates a 43.9% decline from the current price level, the most optimistic analyst expects the stock to surge 398.6% to reach $36. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SNCR. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SNCR Could Witness a Solid Upside
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 5.2%, as one estimate has moved higher compared to no negative revision.
Moreover, SNCR currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much SNCR could gain, the direction of price movement it implies does appear to be a good guide.
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https://www.zacks.com/stock/news/2217197/does-synchronoss-sncr-have-the-potential-to-rally-17729-as-wall-street-analysts-expect?
| 2024-01-30T03:01:10Z
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Shares of Liquidia Technologies, Inc. (LQDA - Free Report) have gained 1.2% over the past four weeks to close the last trading session at $12.17, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $20.86 indicates a potential upside of 71.4%.
The mean estimate comprises seven short-term price targets with a standard deviation of $9.96. While the lowest estimate of $3 indicates a 75.4% decline from the current price level, the most optimistic analyst expects the stock to surge 146.5% to reach $30. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in LQDA. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in LQDA
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 2.3%, as one estimate has moved higher compared to no negative revision.
Moreover, LQDA currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much LQDA could gain, the direction of price movement it implies does appear to be a good guide.
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https://www.zacks.com/stock/news/2217199/wall-street-analysts-think-liquidia-technologies-inc-lqda-could-surge-7141-read-this-before-placing-a-bet
| 2024-01-30T03:01:16Z
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Shares of Trip.com (TCOM - Free Report) have gained 4.1% over the past four weeks to close the last trading session at $37.49, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $49.73 indicates a potential upside of 32.7%.
The mean estimate comprises 15 short-term price targets with a standard deviation of $4.48. While the lowest estimate of $43 indicates a 14.7% increase from the current price level, the most optimistic analyst expects the stock to surge 49.4% to reach $56. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in TCOM. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why TCOM Could Witness a Solid Upside
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 8.5%, as one estimate has moved higher compared to no negative revision.
Moreover, TCOM currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much TCOM could gain, the direction of price movement it implies does appear to be a good guide.
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https://www.zacks.com/stock/news/2217200/wall-street-analysts-believe-tripcom-tcom-could-rally-3265-heres-is-how-to-trade
| 2024-01-30T03:01:22Z
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The price trend for LY Corporation Unsponsored ADR (YAHOY - Free Report) has been bearish lately and the stock has lost 10% over the past four weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support.
While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this company is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.
What is a Hammer Chart and How to Trade It?
This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'
In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.
When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.
Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.
Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.
Here's What Increases the Odds of a Turnaround for YAHOY
There has been an upward trend in earnings estimate revisions for YAHOY lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.
Over the last 30 days, the consensus EPS estimate for the current year has increased 10%. What it means is that the sell-side analysts covering YAHOY are majorly in agreement that the company will report better earnings than they predicted earlier.
If this is not enough, you should note that YAHOY currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Moreover, the Zacks Rank has proven to be an excellent timing indicator, helping investors identify precisely when a company's prospects are beginning to improve. So, for the shares of LY Corporation Unsponsored ADR, a Zacks Rank of 2 is a more conclusive fundamental indication of a potential turnaround.
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https://www.zacks.com/stock/news/2217201/ly-corporation-unsponsored-adr-yahoy-may-find-a-bottom-soon-heres-why-you-should-buy-the-stock-now
| 2024-01-30T03:01:29Z
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Atlassian (TEAM - Free Report) is scheduled to report second-quarter fiscal 2024 results on Feb 1.
Atlassian expects fiscal second-quarter revenues between $1.01 billion and $1.03 billion ($1.02 billion at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $1.02 billion, suggesting growth of 16.8% from the year-ago reported figure.
For fiscal second-quarter earnings, the Zacks Consensus Estimate is pegged at 62 cents per share, implying a 37.8% increase from 45 cents reported in the year-ago period.
Atlassian’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 41%.
Let’s see how things have shaped up before this announcement.
Factors to Consider
The rising adoption of TEAM’s cloud-based solutions and the strong digitalization trend in organizations, along with the growing hybrid working trend, are likely to have favored the company’s fiscal second-quarter performance. The growing demand for Atlassian’s Premium and Enterprise editions of cloud offerings from new and existing clients using on-premises products might have acted as a tailwind.
Our estimate for revenues from Cloud deployment is pegged at $643.6 million, indicating a 25.6% increase from the year-ago quarter. Revenues from Data Center deployment are anticipated to grow 33% year over year to $258.3 million.
The increasing adoption of core products like Jira Software and Confluence Cloud and the traction in new products like Jira Service Management may have boosted the company’s top line. An improvement in product quality and performance, multiple product launches and increased pricing are also likely to have positively impacted the firm’s performance.
Atlassian’s focus on adding artificial intelligence (AI) features to some of its collaboration software, including Confluence, Jira Software, Jira Work Management, Trello, Atlas, and Bitbucket, is likely to have driven the fiscal second-quarter top line. The company collaborated with OpenAI in April 2023 to enhance the capabilities of its Confluence, Jira Service Management and other programs with generative AI features. These factors, coupled with TEAM’s efforts to expand its portfolio through the acquisition of Loom and AirTrack, are expected to have contributed to the company’s revenues.
Resilience in subscription revenues, aided by the solid uptake of the company’s subscription-based offerings, is likely to be reflected in the to-be-reported quarter’s results. Our estimate of $919.6 million for the Subscription segment’s revenues indicates massive 29.3% year-over-year growth.
A number of customers are opting for cloud offerings amid the ongoing cloud migration. Such new additions and increased pricing on certain products might have boosted Atlassian’s quarterly revenues. Our estimate suggests that TEAM is likely to have ended the fiscal second quarter with 267,606 customers, indicating a significant improvement of 5.7% year over year and 1% sequentially.
Additionally, the company’s sustained focus on cost savings is likely to have boosted the fiscal second-quarter bottom line. Atlassian announced restructuring actions in March 2023, which include a cut-back of lease-related expenses and the total workforce by 5% or 500 employees.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Atlassian this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
The company has an Earnings ESP of 0.00% and currently carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, monday.com (MNDY - Free Report) , Meta (META - Free Report) and Twilio (TWLO - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
MNDY has an Earnings ESP of +18.36% and sports a Zacks Rank #1 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Feb 12. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 200.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MNDY’s fourth-quarter earnings is pegged at 30 cents per share, indicating a year-over-year decline of 31.8%. The consensus mark for revenues is pegged at $198.3 million, suggesting a year-over-year rise of 32.3%.
META has an Earnings ESP of +0.51% and carries a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter 2023 results on Feb 1. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 27.5%.
The Zacks Consensus Estimate for META’s fourth-quarter earnings is pinned at $4.84 per share, indicating a year-over-year improvement of 61.33%. It is estimated to report revenues of $38.93 billion, which suggests an increase of approximately 21.02% from the year-ago quarter.
TWLO has an Earnings ESP of +31.37% and a Zacks Rank #2 at present. Twilio is slated to report fourth-quarter fiscal 2023 results on Feb 14. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 157.84%.
The Zacks Consensus Estimate for TWLO’s fourth-quarter earnings is pegged at 57 cents per share, suggesting an increase of 159% from the year-ago quarter’s earnings. Twilio’s quarterly revenues are estimated to increase 1.53% year over year to $1.04 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217202/atlassian-team-to-report-q2-earnings-whats-in-store?
| 2024-01-30T03:01:30Z
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ON Semiconductor Corp. (ON - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This semiconductor components maker is expected to post quarterly earnings of $1.21 per share in its upcoming report, which represents a year-over-year change of -8.3%.
Revenues are expected to be $2 billion, down 4.8% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.41% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for ON Semiconductor Corp.
For ON Semiconductor Corp.The Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.46%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that ON Semiconductor Corp. Will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that ON Semiconductor Corp. Would post earnings of $1.35 per share when it actually produced earnings of $1.39, delivering a surprise of +2.96%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ON Semiconductor Corp. Doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Microchip Technology (MCHP - Free Report) , another stock in the Zacks Semiconductor - Analog and Mixed industry, is expected to report earnings per share of $1.06 for the quarter ended December 2023. This estimate points to a year-over-year change of -32.1%. Revenues for the quarter are expected to be $1.79 billion, down 17.4% from the year-ago quarter.
The consensus EPS estimate for Microchip Tech has been revised 5.2% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -3.64%.
When combined with a Zacks Rank of #5 (Strong Sell), this Earnings ESP makes it difficult to conclusively predict that Microchip Tech will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217203/analysts-estimate-on-semiconductor-corp-on-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-30T03:01:36Z
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ChampionX (CHX - Free Report) is expected to deliver flat earnings compared to the year-ago quarter on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 5. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This oil and gas drilling technology company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents no change from the year-ago quarter.
Revenues are expected to be $953.93 million, down 3.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for ChampionX?
For ChampionX, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.78%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that ChampionX will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that ChampionX would post earnings of $0.49 per share when it actually produced earnings of $0.41, delivering a surprise of -16.33%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ChampionX doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217204/championx-chx-reports-next-week-what-you-should-expect
| 2024-01-30T03:01:42Z
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The market expects Fabrinet (FN - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This company that assembles optical, electro-mechanical and electronic devices for other companies is expected to post quarterly earnings of $2.04 per share in its upcoming report, which represents a year-over-year change of +7.4%.
Revenues are expected to be $699.76 million, up 4.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.25% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Fabrinet?
For Fabrinet, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.13%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Fabrinet will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Fabrinet would post earnings of $1.87 per share when it actually produced earnings of $2, delivering a surprise of +6.95%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Fabrinet appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217205/fabrinet-fn-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-30T03:01:49Z
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FMC (FMC - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This chemical producer is expected to post quarterly earnings of $1.09 per share in its upcoming report, which represents a year-over-year change of -54%.
Revenues are expected to be $1.25 billion, down 23% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 25.43% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for FMC?
For FMC, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -8.14%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that FMC will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that FMC would post earnings of $0.45 per share when it actually produced earnings of $0.44, delivering a surprise of -2.22%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
FMC doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
LyondellBasell (LYB - Free Report) , another stock in the Zacks Chemical - Diversified industry, is expected to report earnings per share of $1.29 for the quarter ended December 2023. This estimate points to no change from the year-ago quarter. Revenues for the quarter are expected to be $10.38 billion, up 1.8% from the year-ago quarter.
The consensus EPS estimate for LyondellBasell has been revised 0.5% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.01%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that LyondellBasell will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217206/analysts-estimate-fmc-fmc-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-30T03:01:50Z
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Timken (TKR - Free Report) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 5. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This maker of bearings and power transmissions is expected to post quarterly earnings of $1.23 per share in its upcoming report, which represents a year-over-year change of +0.8%.
Revenues are expected to be $1.06 billion, down 2.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.98% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Timken?
For Timken, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.92%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Timken will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Timken would post earnings of $1.60 per share when it actually produced earnings of $1.55, delivering a surprise of -3.13%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Timken appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217207/timken-tkr-earnings-expected-to-grow-should-you-buy?
| 2024-01-30T03:01:57Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when Air Products and Chemicals (APD - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This seller of gases for industrial, medical and other uses is expected to post quarterly earnings of $2.99 per share in its upcoming report, which represents a year-over-year change of +13.3%.
Revenues are expected to be $3.31 billion, up 4.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.25% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Air Products and Chemicals?
For Air Products and Chemicals, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.72%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Air Products and Chemicals will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Air Products and Chemicals would post earnings of $3.11 per share when it actually produced earnings of $3.15, delivering a surprise of +1.29%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Air Products and Chemicals doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217208/air-products-and-chemicals-apd-earnings-expected-to-grow-should-you-buy?
| 2024-01-30T03:02:03Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when Golub Capital BDC (GBDC - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This business development company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +32.4%.
Revenues are expected to be $160.93 million, up 17.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 5.88% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Golub Capital BDC?
For Golub Capital BDC, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.08%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Golub Capital BDC will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Golub Capital BDC would post earnings of $0.48 per share when it actually produced earnings of $0.50, delivering a surprise of +4.17%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Golub Capital BDC doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217209/golub-capital-bdc-gbdc-earnings-expected-to-grow-what-to-know-ahead-of-next-weeks-release
| 2024-01-30T03:02:09Z
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Wall Street expects a year-over-year decline in earnings on higher revenues when NXP Semiconductors (NXPI - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This chipmaker is expected to post quarterly earnings of $3.64 per share in its upcoming report, which represents a year-over-year change of -2.4%.
Revenues are expected to be $3.4 billion, up 2.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.42% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for NXP?
For NXP, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.25%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that NXP will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that NXP would post earnings of $3.58 per share when it actually produced earnings of $3.70, delivering a surprise of +3.35%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
NXP appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Another stock from the Zacks Semiconductor - Analog and Mixed industry, M/A-Com (MTSI - Free Report) , is soon expected to post earnings of $0.57 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of -29.6%. Revenues for the quarter are expected to be $151.12 million, down 16.1% from the year-ago quarter.
The consensus EPS estimate for M/A-Com has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 0.39%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that M/A-Com will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217210/nxp-semiconductors-nxpi-expected-to-beat-earnings-estimates-can-the-stock-move-higher?
| 2024-01-30T03:02:11Z
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Flexsteel Industries (FLXS - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 5. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This furniture maker is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of +612.5%.
Revenues are expected to be $100.09 million, up 7.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 24.44% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Flexsteel?
For Flexsteel, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination makes it difficult to conclusively predict that Flexsteel will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Flexsteel would post earnings of $0.24 per share when it actually produced earnings of $0.14, delivering a surprise of -41.67%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Flexsteel doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217211/flexsteel-industries-flxs-earnings-expected-to-grow-should-you-buy?
| 2024-01-30T03:02:17Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when CNA Financial (CNA - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This insurance holding company is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of +3%.
Revenues are expected to be $2.95 billion, up 7.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.36% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for CNA Financial?
For CNA Financial, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -7.69%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination makes it difficult to conclusively predict that CNA Financial will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that CNA Financial would post earnings of $0.92 per share when it actually produced earnings of $1.06, delivering a surprise of +15.22%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CNA Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Among the stocks in the Zacks Insurance - Property and Casualty industry, Selective Insurance (SIGI - Free Report) is soon expected to post earnings of $1.92 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +31.5%. This quarter's revenue is expected to be $1.11 billion, up 16.2% from the year-ago quarter.
The consensus EPS estimate for Selective Insurance has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 0.42%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Selective Insurance will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217212/cna-financial-cna-earnings-expected-to-grow-what-to-know-ahead-of-next-weeks-release
| 2024-01-30T03:02:23Z
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Wall Street expects a year-over-year decline in earnings on lower revenues when Affiliated Managers Group (AMG - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This asset manager is expected to post quarterly earnings of $5.92 per share in its upcoming report, which represents a year-over-year change of -18.7%.
Revenues are expected to be $532 million, down 1.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 3.63% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Affiliated Managers?
For Affiliated Managers, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Affiliated Managers will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Affiliated Managers would post earnings of $3.78 per share when it actually produced earnings of $4.08, delivering a surprise of +7.94%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Affiliated Managers doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Financial - Investment Management industry, Virtus Investment Partners (VRTS - Free Report) , is soon expected to post earnings of $5.96 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +15.3%. Revenues for the quarter are expected to be $196.2 million, up 11.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Virtus has been revised 1.9% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
When combined with a Zacks Rank of #1 (Strong Buy), this Earnings ESP makes it difficult to conclusively predict that Virtus will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217213/analysts-estimate-affiliated-managers-group-amg-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-30T03:02:29Z
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The market expects Estee Lauder (EL - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This beauty products company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of -64.3%.
Revenues are expected to be $4.2 billion, down 9.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Estee Lauder?
For Estee Lauder, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.55%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Estee Lauder will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Estee Lauder would post a loss of $0.22 per share when it actually produced earnings of $0.11, delivering a surprise of +150%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Estee Lauder appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217214/estee-lauder-el-expected-to-beat-earnings-estimates-should-you-buy?
| 2024-01-30T03:02:31Z
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Caterpillar (CAT - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This construction equipment company is expected to post quarterly earnings of $4.76 per share in its upcoming report, which represents a year-over-year change of +23.3%.
Revenues are expected to be $17.15 billion, up 3.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 3.83% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Caterpillar?
For Caterpillar, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.02%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Caterpillar will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Caterpillar would post earnings of $4.75 per share when it actually produced earnings of $5.52, delivering a surprise of +16.21%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Caterpillar appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217215/caterpillar-cat-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-30T03:02:37Z
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Crown Holdings (CCK - Free Report) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This packaging company is expected to post quarterly earnings of $1.42 per share in its upcoming report, which represents a year-over-year change of +21.4%.
Revenues are expected to be $2.93 billion, down 2.8% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Crown?
For Crown, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.41%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Crown will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Crown would post earnings of $1.74 per share when it actually produced earnings of $1.73, delivering a surprise of -0.57%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Crown doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Among the stocks in the Zacks Containers - Metal and Glass industry, Ball (BALL - Free Report) is soon expected to post earnings of $0.77 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +75%. This quarter's revenue is expected to be $3.52 billion, down 0.7% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Ball has been revised 2.2% down to the current level. Nevertheless, the company now has an Earnings ESP of 2.33%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Ball will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217216/crown-holdings-cck-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-30T03:02:47Z
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The market expects Allegiant Travel (ALGT - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 5. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This travel services company is expected to post quarterly loss of $0.75 per share in its upcoming report, which represents a year-over-year change of -123.7%.
Revenues are expected to be $601.47 million, down 1.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 13.69% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Allegiant Travel?
For Allegiant Travel, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +80.07%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Allegiant Travel will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Allegiant Travel would post earnings of $0.13 per share when it actually produced earnings of $0.09, delivering a surprise of -30.77%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Allegiant Travel appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217217/allegiant-travel-algt-expected-to-beat-earnings-estimates-should-you-buy?
| 2024-01-30T03:03:03Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when McDonald's (MCD - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This world's biggest hamburger chain is expected to post quarterly earnings of $2.81 per share in its upcoming report, which represents a year-over-year change of +8.5%.
Revenues are expected to be $6.48 billion, up 9.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.24% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for McDonald's?
For McDonald's, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.38%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that McDonald's will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that McDonald's would post earnings of $3 per share when it actually produced earnings of $3.19, delivering a surprise of +6.33%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
McDonald's appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Among the stocks in the Zacks Retail - Restaurants industry, Brinker International (EAT - Free Report) is soon expected to post earnings of $0.95 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +25%. This quarter's revenue is expected to be $1.08 billion, up 5.9% from the year-ago quarter.
The consensus EPS estimate for Brinker International has been revised 3.1% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -3.71%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Brinker International will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217218/mcdonalds-mcd-earnings-expected-to-grow-what-to-know-ahead-of-next-weeks-release
| 2024-01-30T03:03:11Z
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Bank of Marin (BMRC - Free Report) reported $20.98 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 41.7%. EPS of $0.30 for the same period compares to $0.81 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $27.5 million, representing a surprise of -23.71%. The company delivered an EPS surprise of -6.25%, with the consensus EPS estimate being $0.32.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Bank of Marin performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net interest margin (FTE): 2.5% versus 2.5% estimated by three analysts on average.
- Efficiency Ratio: 91.9% versus the three-analyst average estimate of 72.1%.
- Average Balance - Total interest earning assets: $3.78 billion compared to the $3.88 billion average estimate based on two analysts.
- Total non-accrual loans: $7.99 million compared to the $6.43 million average estimate based on two analysts.
- Net interest income: $24.26 million versus the three-analyst average estimate of $24.67 million.
- Total non-interest income: -$3.28 million compared to the $2.70 million average estimate based on three analysts.
- Net Interest Income (FTE): $24.46 million versus $24.86 million estimated by two analysts on average.
Shares of Bank of Marin have returned -4.5% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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https://www.zacks.com/stock/news/2217219/bank-of-marin-bmrc-q4-earnings-taking-a-look-at-key-metrics-versus-estimates
| 2024-01-30T03:03:17Z
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Hilltop Holdings Inc.’s (HTH - Free Report) fourth-quarter 2023 earnings of 44 cents per share beat the Zacks Consensus Estimate of 40 cents. The bottom line improved 12.8% from the prior-year quarter.
Results benefited from increased non-interest income and reduced expenses. Also, the solid profitability and capital ratios, along with lower provisions, provided support. However, a fall in net interest income (NII), coupled with a decline in loans and deposit balances, acted as undermining factors. This led investors to be bearish on the stock, which lost 1.44% since the earnings release last week.
Net income attributable to common stockholders was $28.7 million, up 12.2% year over year.
In 2023, earnings per share were $1.69, which increased 5.6% from the previous year and beat the Zacks Consensus Estimate of $1.50. Net income available to common stockholders was $109.6 million, which declined 3.1% year over year.
Revenues & Expenses Decline
Quarterly net revenues were $290.2 million, which declined 1% year over year. The top line missed the Zacks Consensus Estimate of $295 million.
In 2023, total revenues were $1.2 billion, down 7.4% year over year. The top line was in line with the Zacks Consensus Estimate.
NII declined 9.9% to $111.2 million. Our estimate was $113.9 million.
Net interest margin (NIM) (taxable-equivalent basis) was 2.98%, down 26 basis points. We had expected NIM to be 2.96%.
Non-interest income was $179 million, up 5.4% year over year. The metric was in line with our estimate.
Non-interest expenses declined 1% to $250.8 million. We projected a total non-interest expense of $253.1 million.
As of Dec 31, 2023, net loans held for investment were $8 billion, down 1.5% sequentially. Total deposits were $11.1 billion, down marginally. Our estimates for net loans held for investment and total deposits were $7.9 billion and $10.6 billion, respectively.
Credit Quality: A Mixed Bag
In the fourth quarter of 2023, Hilltop Holdings recorded a provision of $1.3 million, which decreased 65.2% from the prior-year quarter.
As of Dec 31, 2023, non-performing assets as a percentage of total assets were 0.45%, which increased from 0.20% reported in the year-ago quarter.
Profitability & Capital Ratios Improve
Return on average assets at the end of the reported quarter was 0.75%, which increased from the prior-year quarter’s 0.63%. The return on average stockholders’ equity was 5.46%, which rose from 4.99%.
The common equity tier 1 capital ratio was 19.31% as of Dec 31, 2023, which increased from 18.23% in the corresponding period of 2022. The total capital ratio was 22.33%, representing a rise from the year-ago period’s 20.98%.
Share Repurchase Update
During 2023, the company repurchased 1.64 million shares for $5.1 million.
Also, HTH authorized a new stock repurchase program through January 2025, where it is authorized to buy back approximately $75 million worth of shares.
Dividend Hike
Hilltop Holdings announced a quarterly cash dividend of 17 cents per share, marking a hike of 6% from the prior payout. The dividend will be paid out on Feb 28, 2024, to its stockholders of record as of Feb 12, 2024.
Our Take
Hilltop Holdings finds support from its efforts to improve non-interest income. Additionally, manageable expense levels and lower provisions for credit losses will aid financials. However, a decline in NII and lower loans and deposit balances are near-term concerns.
Hilltop Holdings currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Banks
Hancock Whitney Corp.’s (HWC - Free Report) fourth-quarter 2023 adjusted earnings per share of $1.26 beat the Zacks Consensus Estimate of $1.08. Adjusted earnings per share, however, compared unfavorably with $1.65 earned in the year-ago quarter.
HWC’s results were negatively impacted by a decline in both NII and non-interest income. Further, a slight decrease in loan balances and an increase in expenses and provisions acted as spoilsports.
WaFd, Inc.’s (WAFD - Free Report) first-quarter fiscal 2024 (ended Dec 31) earnings of 85 cents per share surpassed the Zacks Consensus Estimate of 72 cents. However, the bottom line declined 26.7% year over year.
WAFD’s results primarily benefited from the rise in other income and steady loan balance. In the reported quarter, the company did not record any provision for credit losses. However, a fall in NII and an increase in other expenses acted as spoilsports.
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https://www.zacks.com/stock/news/2217220/hilltop-holdings-hth-stock-down-despite-q4-earnings-beat
| 2024-01-30T03:03:23Z
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International Paper Company (IP - Free Report) is scheduled to report fourth-quarter 2023 results, before the opening bell, on Feb 1.
Q4 Estimates
The Zacks Consensus Estimate for IP’s fourth-quarter sales is pegged at $4.68 billion, suggesting an 8.8% fall from the prior-year quarter’s reported figure. The consensus mark for earnings is pegged at 34 cents per share, indicating a year-over-year slump of 61%. Earnings estimates have remained unchanged in the past 30 days.
Q3 Performance
In the last reported quarter, International Paper witnessed a year-over-year decline in earnings due to lower revenues. While the top line missed the Zacks Consensus Estimate, the bottom line beat the same.
IP’s earnings have surpassed the consensus estimate in each of the last four trailing quarters, delivering an earnings surprise of 20.8%, on average.
Factors to Note
International Paper has been witnessing weak packaging demand recently as the current inflationary pressures have weighed on consumers, leading to lower demand for goods. This had a great impact on packaging demand as consumer priorities have shifted toward non-discretionary goods and services.
The company’s customers and the broader retail channel have also been trying to lower their elevated inventories, leading to year-over-year declines in corrugating packaging and containerboard volumes over the past few quarters. We expect the inventory correction to have resumed normal levels in the fourth quarter of 2023. Our model thus projects a slight pickup in volumes, both sequentially and on a year-over-year basis.
We expect corrugating packaging volumes at 2,454 thousand short tons for the fourth quarter, which marks a 0.4% year-over-year rise. Our estimate for containerboard volumes is 600 thousand short tons, which represents year-over-year growth of 9.9%.
The Industrial Packaging segment is likely to have witnessed year-over-year growth in volumes in recycling (0.1%), Saturated Kraft (0.3%) and Gypsum /Release Kraft (0.2%). EMEA Packaging is expected to increase 0.1%.
Overall, volumes for the Industrial Packaging segment are projected to be 4,051 thousand short tons, which indicates 1.7% growth from the prior-year quarter’s actual.
However, the impact of higher volumes is expected to have been offset by lower prices in the quarter, owing to prior index movement in North America and lower average export prices. We expect average realized pricing for the Industrial Packaging segment to be 8.8% lower year over year. We expect a 7.2% year-over-year decline in the Industrial Packaging segment’s fourth-quarter revenues to $3,867 million due to lower prices. The segment’s margin is likely to have been hurt by higher input costs (particularly old corrugated container costs) as well as operating and distribution costs. Per our model, the segment’s operating profit for the quarter is projected to plunge 45% year over year to $229 million.
The Global Cellulose Fibers business has been witnessing solid consumer demand for absorbent pulp products. We expect the segment’s volumes at 714 thousand metric tons, indicating a 0.5% year-over-year rise. Pricing is expected to decline 18.9% year over year. However, lower prices and mix will impact the segment’s revenues in the to-be-reported quarter.
The segment’s fourth-quarter revenues, per our model, are estimated to be $686 million, suggesting a decline of 18.5% from the year-ago quarter’s reported level. The estimate for the segment’s operating profit is $7.3 million, which indicates a 79% decline from the prior-year actual owing to higher costs and maintenance outage expenses.
What the Zacks Model Unveils
Our model predicts an earnings beat for International Paper this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: International Paper has an Earnings ESP of +1.74%.
Zacks Rank: The company currently sports a Zacks Rank of 1.
Price Performance
Shares of International Paper have dipped 0.6% in the past year against the industry's 6.4% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Eldorado Gold (EGO - Free Report) , scheduled to release fourth-quarter 2023 earnings on Feb 22, currently has an Earnings ESP of +3.28 % and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EGO’s fourth-quarter earnings is pegged at 20 cents per share. The consensus estimate for the company’s quarterly earnings has moved up 25% in the past 30 days. It has an average trailing four-quarter earnings surprise of 496%.
Southern Copper Corporation (SCCO - Free Report) , expected to release fourth-quarter 2023 earnings soon, presently has an Earnings ESP of +5.13% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Southern Copper’s fourth-quarter earnings has moved up 4% in the past 30 days. The consensus estimate for SCCO’s earnings for the quarter is pegged at 75 cents per share. It has an average trailing four-quarter earnings surprise of 11.1%.
Agnico Eagle Mines (AEM - Free Report) , scheduled to release fourth-quarter 2023 earnings on Feb 15, currently has an Earnings ESP of +8.23% and a Zacks Rank of 3.
The consensus estimate for Agnico Eagle Mines’ earnings for the fourth quarter is pegged at 46 cents per share. Earnings estimates have moved 5% north in the past 30 days. It has an average trailing four-quarter earnings surprise of 9.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217223/international-paper-ip-to-post-q4-earnings-what-to-expect
| 2024-01-30T03:03:30Z
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Peloton Interactive, Inc. (PTON - Free Report) is scheduled to report second-quarter fiscal 2024 results on Feb 1, 2024, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 22.2%,
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal second quarter is pegged at a loss of 55 cents per share. It reported a loss of 98 cents in the year-ago quarter.
For revenues, the consensus mark is pegged at $740.8 million, suggesting a decline of 6.6% from the year-ago quarter’s reported figure.
Factors at Play
Peloton is anticipated to report a decline in fiscal second-quarter revenues from the year-ago levels due to a decrease in hardware sales and increased churn in Connected Fitness subscriptions. Nevertheless, the impact of these challenges is expected to be partially mitigated by the company's growth initiatives and strategic partnerships. Additionally, PTON's emphasis on global expansion is likely to have acted positively.
For the to-be-reported quarter, the Zacks Consensus Estimate for Connected Fitness Products revenues is pegged at $324 million, down 15% from the prior-year levels. However, revenues from subscription are expected to increase 1.7% from the year-ago levels to $418 million.
Meanwhile, the company's bottom line is likely to have been affected by inflationary pressure and increased sales and marketing costs.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat Peloton this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Peloton has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Peloton has a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +14.99% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MGM Resorts have gained 9.5% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank #3.
Shares of Boyd Gaming have gained 6.8% in the past year. BYD’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.9%.
Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +5.05% and a Zacks Rank #3.
Shares of Hasbro have declined 13.5% in the past three months. HAS’ earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 22.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217224/peloton-pton-to-post-q2-earnings-whats-in-the-offing?-
| 2024-01-30T03:03:36Z
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CGI Group (GIB - Free Report) is scheduled to report its first-quarter fiscal 2024 results on Jan 31.
The Zacks Consensus Estimate for revenues is pegged at $2.59 billion, indicating a decrease of 2.1% from the year-ago fiscal quarter’s reported figure.
The consensus mark for earnings is pegged at $1.31 per share, unchanged over the past 30 days. The consensus estimate indicates growth of 7.4% from the year-ago reported figure.
GIB’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched the same once, the average surprise being 2.59%.
Let’s see how things have shaped up for the upcoming announcement:
Factors Likely to Influence Q1 Results
CGI’s first-quarter results are expected to benefit from an expanding clientele and a strong portfolio of Strategic IT and business consulting services.
The company expects to report an increased number of clients in the to-be-reported quarter.
In the last reported quarter, the company initiated a cost optimization program to expand its real estate portfolio globally and also increase its operational efficiencies like increased use of automation and global delivery, mainly focused on administrative activities.
In the to-be-reported quarter, CGI is expected to have incurred an additional $65 million in expenses for the continuation of the cost optimization program.
In the first quarter of fiscal 2024, the company expects an increase in its managed service bookings as clients are adopting CGI’s end-to-end solutions to reduce their spending while improving their digitization and innovation agendas.
Key Q1 Developments
In the first quarter of fiscal 2024, CGI partnered with Google to help clients benefit from the recent developments in the industry-specific use of generative AI. CGI planned to leverage the Google Cloud Platform to enhance the capabilities of its hyper-automation and decision engine platform, CGI PulseAI solution, which uses AI and machine learning models to deliver high-performance intelligent process automation. The partnership aims to help CGI deliver improved business consultation and managed services in the upcoming quarter.
In November 2023 CGI’s subsidiary, CGI Federal Inc., partnered with All In Solutions LLC to form a joint venture, Adcredo IT Solutions, to serve federal agencies through managed services, AI and advanced data analytics.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
CGI has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Meta Platform (META - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Platform is set to announce fourth-quarter 2023 results on Feb 1. META’s shares have risen 23.7% in the past six months.
Bill Holdings (BILL - Free Report) has an Earnings ESP of +6.17% and a Zacks Rank #3.
Bill Holdings is set to announce second-quarter fiscal 2024 results on Feb 8. BILL’s shares have declined 40.7% in the past six months.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2.
Twilio is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have gained 8.9% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217226/cgi-gib-set-to-report-q1-earnings-whats-in-the-cards?
| 2024-01-30T03:03:42Z
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Carpenter Technology Corporation (CRS - Free Report) reported earnings of 85 cents per share for second-quarter fiscal 2024, in line with the Zacks Consensus Estimate. It had posted adjusted earnings of 13 cents in the year-ago quarter.
Net sales increased 7.8% year over year to $624 million in the reported quarter. The upside was driven by a 3% year-over-year increase in shipment volume and the ongoing solid demand in most of the company’s end-use markets. However, the figure missed the Zacks Consensus Estimate of $670 million.
CRS witnessed a year-over-year revenue increase of 23.1%, 62.8%, 16.4% and 2% in the Aerospace and Defense, Energy, Medical and Industrial and Consumer end-use markets, respectively. Revenues in the Distribution markets decreased 25.3%. The Transportation end-use market’s revenues fell 1.8%.
Operational Results
The cost of goods sold in second-quarter fiscal 2024 fell 1.5% year over year to $502 million. The gross profit surged 75.1% year over year to $123 million. The operating income in the reported quarter was $69.8 million compared with the prior-year quarter’s $22.6 million.
Segmental Performance
The Specialty Alloys Operations segment reported sales of $549 million compared with the prior-year quarter’s $496 million. We predicted segmental sales to be $638 million. The segment sold 50,114 pounds compared with the year-ago quarter’s 49,442 pounds. The reported figure missed our estimate of 54,017 pounds.
The segment posted operating profit of $83.3 million compared with the prior-year quarter’s $30.3 million. Our estimate for the metric was $89.7 million.
The Performance Engineered Products’ net sales fell 10.3% year over year to $96 million. The reported figure missed our estimate of $105 million. The segment sold 2,318 pounds compared with the year-ago quarter’s 2,978 pounds. It was lower than our projection of 2,860 pounds.
Segmental operating profit was $7.1 million compared with the prior-year quarter’s $9.3 million. Our estimate for the metric was $11.4 million.
Financials
Carpenter Technology ended second-quarter fiscal 2024 with cash and cash equivalents of $16 million compared with $45 million at the end of fiscal 2023. The long-term debt was around $694 million at the end of the quarter compared with $693 as of the end of fiscal 2023.
Cash flow from operating activities was $14.5 million in the quarter under review. It recorded cash outflow of $86.4 million in the prior-year quarter.
Price Performance
Shares of the company have gained 32.4% in the past year compared with the industry’s growth of 9.7%.
Image Source: Zacks Investment Research
Zacks Rank
Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Some other top-ranked stocks from the basic materials space are WestRock Company (WRK - Free Report) , Ternium S.A. (TX - Free Report) and Osisko Gold Royalties Ltd (OR - Free Report) . While WRK and TX sport a Zacks Rank #1 each, OR carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WestRock’s 2024 earnings of $2.44 per share has moved 4% north in the past 60 days. It has a trailing four-quarter average earnings surprise of 32.1%. WRK’s shares have gained 17.3% in a year.
The Zacks Consensus Estimate for Ternium’s 2024 earnings is pegged at $8.00 per share. It has a trailing four-quarter average earnings surprise of 38.6%. TX’s shares have improved 36.5% in a year.
Osisko Gold has a trailing four-quarter average earnings surprise of 13.4%. The Zacks Consensus Estimate for OR’s 2024 earnings of 48 cents per share has moved 4% north in the past 60 days. OR shares have rallied 13.4% last year.
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https://www.zacks.com/stock/news/2217232/carpenter-technology-crs-q2-earnings-in-line-with-estimates
| 2024-01-30T03:03:48Z
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United Airlines (UAL - Free Report) announced on Jan 27 that it resumed operating passenger flights using Boeing 737 MAX 9 jets following the green light from the U.S. regulators. Notably, the flight departed from Newark to Las Vegas with 175 passengers and six crew members on board. This was the first time that UAL operated a Boeing 737 MAX 9 flight since the FAA order on Jan 6 to ground the jets.
We remind investors that the FAA had ordered a temporary grounding of 171 Boeing 737 MAX 9 jets across the globe for safety-related inspection after a mid-air cabin blowout incident took place on an Alaska Airlines MAX 9 on Jan 5, 2024. Alaska Airlines is a wholly-owned subsidiary of Alaska Air Group (ALK - Free Report) .
FAA lifted the above-mentioned order on Jan 24. The approval was contingent on new inspection and maintenance checks. The FAA has clarified that Boeing (BA - Free Report) is prohibited from expanding 737 MAX production or adding production lines until quality improvements are implemented.
The enhanced maintenance process for the 737 MAX 9 involves meticulous inspections of specific bolts, guide tracks and fittings. Additionally, detailed visual inspections of mid-cabin exit door plugs and related components are part of the revised safety measures. These steps aim to ensure the highest safety standards and address concerns arising from the recent cabin panel blowout.
Alaska Airlines, which also faced flight cancellations due to the grounding, resumed MAX 9 service on Jan 26. The chief operating officer, Constance von Muehlen, was reportedly on the first MAX 9 flight after the grounding, sitting next to the window where the blowout occurred in the earlier incident. ALK expects to complete inspections by the end of the following week, allowing it to fully restore its flight schedule.
Stan Deal, Boeing’s commercial airline’s president, communicated to employees that the company had diligently established inspection criteria to facilitate the return of aircraft to service. Boeing is now reviewing numerous ideas submitted by employees for quality improvements, indicating its commitment to enhancing the safety and reliability of its aircraft.
The decision of UAL and ALK to resume Boeing 737 MAX 9 flights aligns with the FAA's confidence in the updated inspection procedures. As the aviation industry has been recovering from recent setbacks, this move is a positive development for both airlines and passengers, emphasizing the commitment to safety and rigorous maintenance protocols. UAL and ALK, both currently carrying a Zacks Rank #3 (Hold), are the only U.S.-based airline companies to operate Boeing Max 9 planes. The Chicago-based UAL, with 79 Boeing Max 9 planes in its fleet, is the largest operator of such jets across the globe.
Investors interested in the Zacks Airline industry may consider Copa Holdings (CPA - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is gaining from the improved air travel demand scenario. We are encouraged by the company’s initiatives to modernize its fleet. CPA's focus on its cargo segment is also impressive.
For 2023, CPA’s earnings are expected to register a 95.7% increase on a year-over-year basis. Copa has outpaced the Zacks Consensus Estimate for earnings in each of the past four quarters, the average surprise being 16.81%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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https://www.zacks.com/stock/news/2217234/united-ual-resumes-boeing-737-max-9-flights-post-faa-nod
| 2024-01-30T03:03:55Z
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NIKE Inc. (NKE - Free Report) appears an encouraging pick now, thanks to its digital endeavors and other robust strategies including the continued progress on the Consumer Direct Acceleration strategy. The company is gaining from robust retail sales across Nike Direct. NKE also continued to benefit from its business strategy, compelling product innovation and digital leadership.
Effective inventory management strategies have been a critical component of NIKE's success. The company’s adept inventory management has a direct impact on its financial performance. This was well demonstrated by the company’s second-quarter fiscal 2024 performance, which gained mainly from the company’s return healthy inventory position. The NIKE inventory and total marketplace inventory were healthy at the end of the quarter. The company’s inventory dollars were down 14% year over year at the end of the fiscal second quarter.
The company has been benefiting from a solid consumer momentum, a robust product innovation pipeline and a strong inventory. Looking ahead, the company expects strong gross margin execution and disciplined cost management to offset soft second-half revenues and drive earnings growth. For the fiscal year, NKE expects revenues to grow 1% year over year. The fiscal 2024 gross margin is envisioned to expand 140-160 basis points on a reported basis. The gross margin guidance reflects gains from strategic price increases, lower ocean freight rates and supply-chain efficiency.
NIKE is benefiting from its efficient digital ecosystem, which comprises its online site as well as commercial and activity apps. The company’s digital business has been gaining from underlying consumer trends, including sustained momentum in the NIKE mobile app led by improved traffic and increasing member buying frequency.
In the fiscal second quarter, the NIKE Brand’s Digital revenues improved 4% on a reported basis and 1% on a currency-neutral basis. Notably, the company has increased the digital share of its business to 26% in fiscal 2023 compared with 10% in fiscal 2019.
What’s More?
Undoubtedly, management is focused on creating a trend-right merchandise assortment, deepening relations with customers via marketing, enhancing the digital commerce agenda and efficiently controlling expenses. The company has been identifying opportunities to deliver up to $2 billion as cumulative cost savings in the next few years.
Analysts also seem quite optimistic about this athletic footwear company. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share (EPS) is currently pegged at $51.8 billion and $3.57, respectively. These estimates show corresponding growth of 1.1% and 10.5% year over year. The consensus mark for the next fiscal year’s sales and EPS is $55.1 billion and $4.19, respectively, reflecting a year-over-year increase of 6.5% and 17.4%.
Buoyed by such strengths, shares of this athletic footwear dealer have increased 5.6% against the industry’s 9.6% decline in the six-month time frame. A VGM Score of B further adds strength to this current Zacks Rank #3 (Hold) company.
Key Consumer Discretionary Picks
Some better-ranked companies are G-III Apparel Group (GIII - Free Report) , Crocs (CROX - Free Report) and lululemon athletica (LULU - Free Report) .
G-III Apparel sports a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
GIII Apparel has a trailing four-quarter earnings surprise of 541.8%, on average. The Zacks Consensus Estimate for GIII’s fiscal 2024 EPS indicates an increase of 33% from the year-ago period’s reported level.
Crocs carries a Zacks Rank #2 (Buy), at present. CROX has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for Crocs’ 2023 sales and EPS indicates increases of 11.4% and 8.6%, respectively, from the year-ago period’s reported levels.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank of 2, at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 18.2% and 22.8%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.2%, on average.
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https://www.zacks.com/stock/news/2217249/nikes-nke-growth-strategies-seem-encouraging-apt-to-hold
| 2024-01-30T03:04:01Z
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WestRock Company (WRK - Free Report) is scheduled to report first-quarter fiscal 2024 results (ended Dec 31, 2023) on Feb 1, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for WRK’s fiscal first-quarter revenues is pegged at $4.84 billion, suggesting a fall of 1.75% from the year-ago quarter's reported figure. The same for earnings per share is pegged at 35 cents, indicating a year-over-year decline of 36%. The consensus mark for the company’s fiscal first-quarter earnings has remained unchanged in the past 30 days.
Q4 Performance
In the last reported quarter, WestRock registered year-over-year declines in adjusted earnings per share and revenues. While the top line missed the consensus estimate, earnings beat the same.
WRK’s earnings have surpassed the Zacks Consensus Estimate in three of the last four trailing quarters while falling short in one quarter, delivering an earnings surprise of 32.2%, on average.
Key Factors to Note
WestRock has been witnessing a slowdown in volumes in the Corrugated Packaging segment over the past few quarters. This has been mainly due to muted customer spending due to the inflationary scenario. Customers have also been rebalancing their inventory destocking.
Despite this overall weakness, the demand for corrugated packaging and containerboard for the packaging of essential items such as food, beverage and medicines is likely to have been stable. However, considering that the company has been facing labor shortages and supply-chain issues, this is expected to have impacted the shipments to customers. Each of these factors are likely to have been reflected in the company’s top-line results in the first quarter of fiscal 2024.
While some costs were expected to have been favorable sequentially (natural gas, virgin fiber, chemicals and freight), the same is likely to have been higher than last year’s comparable quarter. Higher recycled fiber costs are also likely to have hurt the margins.
Pricing actions and productivity initiatives undertaken by the company are likely to have negated some of these headwinds and benefited its fiscal first-quarter performance.
Segmental Projections
The Zacks Consensus Estimate for WRK’s Consumer Packaging segment’s quarterly revenues is pegged at $1,194 million, suggesting a 2% drop from the prior-year period's reported figure. The segment’s adjusted EBITDA is estimated at $131 million.
For the Corrugated Packaging segment’s revenues, the consensus estimate is pinned at $2,461 million, implying growth of 10% from the year-ago quarter's reported number. The segment’s adjusted EBITDA is projected at $172 million.
The revenue estimate for the Paper segment is pegged at $895 million, suggesting a decline of 20% from the prior-year reported figure. The same for the Distribution segment is pinned at $339 million, indicating 5% year-over-year growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for WestRock this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: The Earnings ESP for WestRock is 0.00%. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Zacks Rank: WRK currently sports a Zacks Rank #1.
Price Performance
WestRock’s shares have gained 13.4% over the past year compared with the industry’s 6.4% growth.
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Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Eldorado Gold (EGO - Free Report) , scheduled to release fourth-quarter 2023 earnings on Feb 22, currently has an Earnings ESP of +3.28% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EGO’s fourth-quarter earnings is pegged at 20 cents per share. The consensus estimate for the company’s quarterly earnings has moved up 25% in the past 30 days. It has an average trailing four-quarter earnings surprise of 496%.
Southern Copper Corporation (SCCO - Free Report) , expected to release fourth-quarter 2023 earnings soon, presently has an Earnings ESP of +5.13% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Southern Copper’s fourth-quarter earnings has moved up 4% in the past 30 days. The consensus estimate for SCCO’s earnings for the quarter is pegged at 75 cents per share. It has an average trailing four-quarter earnings surprise of 11.1%.
Agnico Eagle Mines (AEM - Free Report) , scheduled to release fourth-quarter 2023 earnings on Feb 15, currently has an Earnings ESP of +8.23% and a Zacks Rank of 3.
The consensus estimate for Agnico Eagle Mines’ earnings for the fourth quarter is pegged at 46 cents per share. Earnings estimates have moved 5% north in the past 30 days. It has an average trailing four-quarter earnings surprise of 9.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Eagle Materials Inc. (EXP - Free Report) reported impressive third-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings and revenues topped the Zacks Consensus Estimate. The top and the bottom lines grew on a year-over-year basis as well.
The company’s results reflect higher gross sales price and sales volume, especially in the Heavy Materials segment. The acquisition of Battletown Aggregates and the Stockton Terminal Acquisition contributed $2 million and $11.2 million to revenues, respectively, thus driving its uptrend. On the other hand, the quarter’s costs and expenses portray a year-over-year rise, thus impacting the uptrend to some extent. This was attributable to high operating costs, salary and incentive compensation, information technology upgrades, and increased legal and professional expenses.
Nonetheless, the company is optimistic about its long-term growth, thanks to improving trends in population growth, well-documented housing production deficits and supply shortages, and a multi-year federal highway bill further boosted by state-level infrastructure spending.
Inside the Headlines
Eagle Materials reported record earnings of $3.72 per share, which notably surpassed the Zacks Consensus Estimate of earnings of $3.56 per share by 4.5%. Also, the metric increased 16.3% from the year-ago quarter’s earnings level of $3.20 per share.
Segmental Discussion
Heavy Materials (including cement, concrete and aggregates): This segment reported fiscal third-quarter revenues of $331.9 million, which increased 20% from $276.2 million reported a year ago. The segment’s operating margin improved 450 basis points (bps) to 19.2% year over year, backed by favorable sales pricing.
Within the Heavy Materials umbrella, Cement’s revenues (excluding Joint Venture and intersegment revenue) rose 24% to $274.2 million from the year-ago quarter’s value of $221 million. The sales volume of Cement increased 7% year over year to 1,824 metric tons from 1,699 metric tons. Also, the average net sales price per ton grew 13% to $151.32 year over year.
Concrete and Aggregates’ revenues rose 5% year over year to $57.8 million from $55.2 million. The sales volume of Concrete declined 13% to 308 metric cubic yards, while the same for Aggregates grew 65% to 1,034 metric tons on a year-over-year basis. The average net sales price for Cement (per cubic yard) and Aggregates (per ton) were $149.54 and $11.18, up 11% and down 4%, respectively, compared with the year-ago period.
Light Materials (including gypsum wallboard and recycled paperboard): This segment’s revenues were $226.9 million, down 3.6% year over year from $235.3 million. The operating margin depreciated 400 bps to 36.4% on the back of lower gross sales price and high operating costs.
Under the Light Materials’ umbrella, the quarterly revenues of Gypsum Wallboard were $201 million, down 5% from $212 million reported in the year-ago quarter. The sales volume dwindled 1% to 722 million square feet, and the average net sales price per thousand square feet declined 4% to $227.78 on a year-over-year basis.
Recycled Paperboard’s revenues grew 11% year over year to $25.9 million from $23.3 million. The sales volume also reflected an uptrend of 9% to 84 metric tons from 77 metric tons reported in the year-ago quarter. On the other hand, the average net sales price per ton declined 6% to $559.49 from $594.93 reported in the prior year.
Operating Highlights
The gross profit of Eagle Materials increased 14% year over year to $180.6 million. The gross margin was 32.3%, which increased 130 bps year over year from 31%. Adjusted EBITDA of $218.6 million increased 10% year over year.
Liquidity and Cash Flow
As of Dec 31, 2023, Eagle Materials had cash and cash equivalents of $48.9 million compared with $15.2 million at the fiscal 2023-end. Also, it has $750 million of unsecured revolving credit facility including a $200 million term loan facility. Long-term debt was $63 million, down from $66.5 million as of the fiscal 2023-end.
Net cash provided by operations was $500.4 million for the first nine months, up from $480.1 million reported in the year-ago period.
Zacks Rank
Eagle Materials currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Construction Releases
Weyerhaeuser Company (WY - Free Report) reported mixed results for fourth-quarter 2023. Its earnings beat the Zacks Consensus Estimate but net sales missed the same.
On a year-over-year basis, both metrics declined due to lower fee harvest volumes in the West and a decrease in domestic sales volumes. The company optimized its timberlands holdings with the strategic acquisition of mature and highly productive acreage in the Carolinas and Mississippi and the divestiture of less strategic acreage in South Carolina. Also, it captured additional operational excellence improvements, grew its Natural Climate Solutions business and sold its first forest carbon credits in the voluntary market.
United Rentals, Inc. (URI - Free Report) reported impressive fourth-quarter 2023 results. Its earnings and revenues beat the Zacks Consensus Estimate and increased on a year-over-year basis.
The upside was mainly driven by sustained growth across the business, profitability and returns, underpinned by broad-based activity. Moreover, URI has provided strong guidance for 2024, given the strength of the present market condition and the multi-year tailwinds that the company sees across infrastructure, manufacturing and energy and power.
D.R. Horton, Inc. (DHI - Free Report) reported first-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.
On a year-over-year basis, both the top and bottom lines increased. The upside was backed by the supply of both new and existing homes as affordable price points remain limited and robust housing demand is supported by favorable demographics amid elevated inflation and mortgage/interest rates.
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https://www.zacks.com/stock/news/2217251/eagle-materials-exp-q3-earnings-revenues-top-up-yy?-revenues-top,-up-y/y
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Crunching profit numbers and evaluating surprises might appear a good option in the ongoing reporting cycle but these do not ensure that the profits are being efficiently channeled to the reserves for funding growth. This is because even a profit-making company can have a deficiency of cash flow and go bankrupt while meeting its obligations.
Therefore, one must look at a company’s proficiency in generating cash flows before investing in the right stocks. This is because cash is a prerequisite for any company. It gives strength and vitality and is the key to its existence, development and success.
In this regard, stocks like Griffon Corporation (GFF - Free Report) , Photronics, Inc. (PLAB - Free Report) , The Andersons, Inc. (ANDE - Free Report) and AZZ Inc. (AZZ - Free Report) are worth buying.
In fact, the uncertainties in the global economy, market disruptions and dislocations, and liquidity have all the more established the relevance of analyzing a company’s cash-generating efficiency.
To figure out this efficiency, one needs to consider a company’s net cash flow. While in any business, cash moves in and out, it is net cash flow that explains how much money a company is actually generating.
If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.
However, having a positive cash flow merely does not secure a company’s future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management’s efficiency in regulating its cash movements and less dependency on outside financing for running its business.
Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.
Screening Parameters:
To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.
In addition to this we chose:
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.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.
Current Price greater than or equal to $5: This sieves out low-priced stocks.
VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.
Here are our four picks out of the 14 stocks that qualified the screening:
Griffon Corp, a diversified management and holding company, operates through wholly-owned subsidiaries. It provides consumer and professional, as well as home and building products.
The Zacks Consensus Estimate for Griffon Corp’s fiscal 2024 earnings per share has been revised 13% upward to $4.62 in the past two months. GFF has a VGM Score of A.
Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high-precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components.
The Zacks Consensus Estimate for Photronics’ fiscal 2024 earnings has moved up by 15.6% to $2.60 per share in the past two months. PLAB currently has a VGM Score of A.
The Andersons is a regional grain merchandiser with diversified businesses in agriculture, plant nutrient formulation and distribution, turf product production, railcar marketing and general merchandise retailing that generate revenues. The company maintains grain and production facilities throughout the Midwest and six retail locations in northern and central Ohio.
The Zacks Consensus Estimate for ANDE Group’s 2024 earnings has moved up by 13.5% to $3.86 per share in the past two months. At present, ANDE flaunts a VGM Score of A.
AZZ Inc. is a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the markets of power generation, transmission, distribution and industrial in protecting metal and electrical systems used to build and enhance the world's infrastructure.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share has moved up 5.4% over the past month to $4.30. AZZ has a VGM Score of A.
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 back-testing 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.
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Acuity Brands, Inc. (AYI - Free Report) rewarded investors with a 15.4% hike in its quarterly cash dividend payments.
The board of directors of this manufacturer and distributor of lighting fixtures and related components approved a quarterly dividend payout of 15 cents per share (60 cents per share annually), up from the previous dividend payout of 13 cents per share (52 cents per share annually). The amount will be paid out on Feb 14, 2024, to shareholders of record as of Feb 5. Based on the closing price of $239.10 per share on Jan 26, 2024, the stock has a dividend yield of 0.2% and a payout ratio of 4%.
Although it maintained its dividend payout since 2008, the company’s decision to hike its quarterly dividend this time was attributable to improved cash flow generation and efforts to sustain a healthy balance sheet. Its effective allocation of capital also aided in driving its shareholder value.
Here’s What Aiding the Dividend Policy
AYI is intently focusing on expanding its margins and increasing cash generation. These priorities are anchored on the company’s efforts to increase product vitality through new product introductions and enhancements to its existing portfolio, strategically utilizing technology in both its Acuity Brands Lighting and Lighting Controls (ABL) and Intelligent Spaces Group (ISG) businesses and elevating service levels.
During the first quarter of fiscal 2024, the company’s adjusted earnings of $3.72 per share topped the Zacks Consensus Estimate by 20.4% and grew 13.1% year over year. The uptrend was backed by the company’s strong execution of its effective capital-allocation strategy along with increased contributions from its ISG business.
Furthermore, during the quarter, Acuity Brands reported a 1.6% increase in cash flow from operations of $190 million, attributable to an improvement in net income. Its efforts to ensure consistent capital allocation in growing its business and driving shareholders’ value signifies the continuance of outperformance in the near term.
For fiscal 2024, AYI expects net sales in the range of $3.7-$4 billion compared with the reported figure of $3.95 billion in fiscal 2023.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #1 (Strong Buy) company have surged 50.2% in the past three months, outperforming the Zacks Building Products - Lighting industry’s 44.3% growth.
The positive trend is solidified by the upward movement of the fiscal 2024 earnings estimates to $14.79 per share from $14.44 per share in the past seven days. AYI has also delivered a trailing four-quarter earnings surprise of 13.9%, on average.
Other Key Picks
Here are some other top-ranked stocks from the Construction sector.
Martin Marietta Materials, Inc. (MLM - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MLM delivered a trailing four-quarter earnings surprise of 37.3%, on average. The stock has gained 44.4% in the past year. The Zacks Consensus Estimate for MLM’s 2024 sales and earnings per share (EPS) indicates growth of 9.5% and 13.1%, respectively, from a year ago.
Armstrong World Industries, Inc. (AWI - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter earnings surprise of 7.9%, on average. Shares of AWI have soared 30.1% in the past year.
The Zacks Consensus Estimate for AWI’s 2024 sales and EPS indicates a rise of 1.4% and 6.8%, respectively, from the prior-year levels.
NVR, Inc. (NVR - Free Report) currently carries a Zacks Rank of 2. NVR delivered a trailing four-quarter earnings surprise of 14.6%, on average. The stock has gained 40.1% in the past year.
The Zacks Consensus Estimate for NVR’s 2024 sales and EPS indicates a decline of 4.1% and 10.2%, respectively, from the prior-year levels.
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Allegro MicroSystems (ALGM - Free Report) is slated to release third-quarter fiscal 2024 results on Feb 1.
For the fiscal third quarter, revenues are expected in the range of $250-$260 million.
Non-GAAP earnings are anticipated between 27 cents and 31 cents per share.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $255 million, suggesting 2.5% growth from the figure reported in the year-ago quarter.
The consensus mark for earnings has been steady at 29 cents per share in the past 30 days, suggesting a decline of 17.14% from the figure reported in the year-ago quarter.
Allegro’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.42%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Allegro has been benefiting from an innovative product portfolio providing differentiated solutions in magnetic sensing, e-mobility, clean energy and the automation end-market. Its performance in the fiscal third quarter is likely to have benefited from higher demand for e-mobility applications, including Advanced Driver Assistance Systems (ADAS), magnetic sensors and power IC product portfolios.
Allegro aims to continue to provide efficient and reliable solutions for the electrification of vehicles, ADAS safety features, automation for a varied range of industries, and power-saving technologies for data centers and green energy applications.
Allegro acquired Crocus Technology on Oct 31 to expand its innovations in Tunneling Magnetoresistance (TMR) Sensing Technology, boosting its position in the magnetic sensing market to serve customers from industries like automotive, industrial and consumer goods. The acquisition is expected to have added approximately $5 million to net sales in the to-be-reported quarter.
Allegro is expected to have benefited from an increase in the internal supply of wafers and die banks. This is expected to have improved customer lead times and minimized past-due backlog.
However, challenging macroeconomic conditions and higher inventory levels in industrial and consumer goods markets are expected to have hurt Allegro’s top line in the fiscal third quarter.
What Our Model Says
Our proven model predicts an earnings beat for Allegro in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise.
Allegro has an Earnings ESP of +1.16% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases:
Meta Platform (META - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Platform is set to announce fourth-quarter 2023 results on Feb 1. META’s shares have risen 23.7% in the past six months.
Bill Holdings (BILL - Free Report) has an Earnings ESP of +6.17% and a Zacks Rank #3.
Bill Holdings is set to announce second-quarter fiscal 2024 results on Feb 8. BILL’s shares have declined 40.7% in the past six months.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2.
Twilio is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have gained 8.9% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217254/whats-in-store-for-allegro-microsystems-algm-in-q3-earnings?
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Franklin Resources (BEN - Free Report) reported $1.99 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 1.2%. EPS of $0.65 for the same period compares to $0.51 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.91 billion, representing a surprise of +4.11%. The company delivered an EPS surprise of +14.04%, with the consensus EPS estimate being $0.57.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Franklin Resources performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total Net Flows: $-0.3 billion versus the three-analyst average estimate of $-1.71 billion.
- Assets Under Management - Fixed income: $511.7 billion versus $513.69 billion estimated by three analysts on average.
- Assets Under Management - Multi-Asset: $154.6 billion versus $153.36 billion estimated by three analysts on average.
- Assets Under Management - Equity: $467.5 billion versus $462.69 billion estimated by three analysts on average.
- Assets Under Management - Total: $1,455.5 billion versus the three-analyst average estimate of $1,456.53 billion.
- Assets Under Management - Alternative: $256.2 billion versus $259.81 billion estimated by three analysts on average.
- Assets Under Management - Cash Management: $65.5 billion compared to the $66.99 billion average estimate based on three analysts.
- EOP Net Flows - Alternatives: $2.7 billion versus the two-analyst average estimate of $2.43 billion.
- Operating Revenues- Other: $10 million versus $9.68 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
- Operating Revenues- Investment management fees: $1.65 billion versus $1.52 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +1.3% change.
- Operating Revenues- Shareholder servicing fees: $32.50 million compared to the $40.47 million average estimate based on four analysts. The reported number represents a change of -2.7% year over year.
- Operating Revenues- Sales and distribution fees: $296.40 million versus the three-analyst average estimate of $305.36 million. The reported number represents a year-over-year change of +1.5%.
Shares of Franklin Resources have returned -7.4% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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https://www.zacks.com/stock/news/2217256/franklin-resources-ben-q1-earnings-taking-a-look-at-key-metrics-versus-estimates
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Gentex Corporation’s (GNTX - Free Report) fourth-quarter 2023 earnings of 50 cents per share surpassed the Zacks Consensus Estimate of 44 cents and increased 35% from the year-ago quarter.
This Zeeland-based automotive products supplier reported net sales of $589.1 million, beating the Zacks Consensus Estimate of $562 million, increasing 19% from the year-ago period. The company recorded a gross margin of 34.5%, reflecting an increase of 330 basis points from the fourth quarter of 2022, due to higher sales, recurring price increases to customers, cost recoveries, improved leverage on overhead expenses, purchasing cost reductions and improvements in freight and tariff-related costs.
Segmental Performance
The Automotive segment’s net sales — contributing the most to Gentex’s revenues — totaled $578.7 million in the fourth quarter, 19.8% higher than the $482.9 million reported in the year-ago quarter and beating our estimate of $541.9 million. In the reported quarter, auto-dimming mirror shipments in the North American market increased 13% to 3,837,000 units. Shipments rose 12% year over year in the international markets to 8,519,000 units. Total shipments increased 12% to 12,357,000 units.
Other net sales, which include dimmable aircraft windows and fire protection products, decreased from the year-ago quarter’s $10.7 million to $10.5 million and missed our estimate of $10.9 million. Fire protection sales decreased 44% from the year-ago quarter. Dimmable aircraft window sales increased 362% year over year.
Financial Tidbits
Total operating expenses rose 18% year over year to $70.6 million in fourth-quarter 2023. Engineering and R&D expenses increased to $41.5 million from $34.9 million. SG&A expenses rose to $29.1 million from $24.8 million recorded in the corresponding quarter of 2022.
GNTX paid a dividend of 12 cents per share in the quarter. It repurchased 2.2 million shares of its common stock at an average price of $30.76 per share. As of Dec 31, 2023, the company had nearly 15.9 million shares remaining for buyback per its previously announced share repurchase plan. Gentex had cash and cash equivalents of about $226.4 million as of Dec 31, 2023.
2024 Guidance
Its 2024 net sales are estimated in the range of $2.45-$2.55 billion. The gross margin is projected in the band of 34-35%. Capital expenditure is anticipated within $225-$250 million. Operating expenses are estimated in the band of $295-$305 million.
Zacks Rank & Other Key Picks
GNTX currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , BYD Company Limited (BYDDY - Free Report) and Mercedes-Benz Group AG (MBGAF - Free Report) . HMC and BYDDY sport a Zacks Rank #1 (Strong Buy) each and MBGAF carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 7 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings suggests year-over-year growth of 36.5% and 70.6%, respectively. The EPS estimate for 2024 has improved 30 cents in the past seven days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales suggests year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have improved by a penny and 30 cents, respectively, in the past 60 days.
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Equity Residential (EQR - Free Report) is slated to report fourth-quarter and full-year 2023 results after the closing bell on Jan 30. The company’s quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Chicago, IL-based residential real estate investment trust’s (REIT) normalized FFO per share of 96 cents narrowly missed the Zacks Consensus Estimate of 97 cents. Rental income lagged the consensus mark, and results reflected a weak performance in its West Coast markets, along with the Rite Aid bankruptcy.
Over the trailing four quarters, Equity Residential met the Zacks Consensus Estimate on two occasions for as many misses, the average negative surprise being -0.54%. The graph below depicts this surprise history:
As we approach the release of Equity Residential's fourth-quarter 2023 earnings report, it is important to examine how this residential REIT is likely to have performed amid the current market conditions.
US Apartment Market in Q4
Per RealPage data, although there was a significant recovery in apartment demand in the fourth quarter, it was not enough to keep up with the huge amounts of new supply, with the onslaught affecting occupancy and rent growth.
There was demand for 58,200 units in the fourth quarter, pushing the total demand figure to 233,741 units in the 12-month period, which marked a considerable change from net move-outs from 123,290 units recorded in 2022. However, there were massive amounts of new supply, with 129,015 units being delivered in the fourth quarter across the top 150 markets tracked by RealPage, bringing the total number of units delivered to 439,394 in 2023.
With supply outpacing demand, the occupancy level was 94.2%, contracting 30 basis points (bps) in the quarter and 90 points year over year. Apart from the occupancy rate, operators’ pricing power was also affected, with fourth-quarter rents contracting 1.3% but increasing 0.2% in the year. The monthly rent was $1,805, while the rent per square foot was $1.986.
Projections
Amid this rebound in demand, Equity Residential’s quarterly performance is likely to have been supported by its portfolio diversification efforts in the urban and suburban markets. EQR’s target residents are more affluent, with lower unemployment and favorable prospects ahead.
The company has a healthy balance sheet and banks on technology, scale and organizational capabilities to drive growth. EQR’s robust balance sheet position is expected to have supported its development activities during the to-be-reported quarter.
However, rising supply and the winter months are likely to have played a spoilsport. Per its November Investor Update presentation, news lease change was down 3.1% in October compared to an increase of 0.5% in the third quarter, and the renewal rate achieved in October was 5% compared with 5.5% in the third quarter. The blended rate in October was 1.6%, down from 3.1% in the third quarter.
We expect fourth-quarter same-store revenues to decline 3.8% year over year, while same-store net operating income (NOI) is estimated to decline 1.5%. Physical occupancy is expected at 95.9%, suggesting a 10-basis point decrease sequentially.
Currently, the Zacks Consensus Estimate for the company’s quarterly revenues stands at $727.55 million, indicating a 3.98% increase year over year.
For the fourth quarter of 2023, Equity Residential projected normalized FFO per share in the band of 99 cents-$1.01.
However, before the fourth-quarter earnings release, the company’s activities were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly normalized FFO per share has remained unchanged in the past month at $1.00. Nevertheless, it suggests year-over-year growth of 6.38%.
For the full year 2023, Equity Residential projected normalized FFO per share in the band of $3.77-$3.79. The company’s full-year guidance incorporates a same-store revenue growth projection of 5.5%, while expenses are expected to increase by 4.25%. Consequently, NOI is estimated to expand 6.2%. Physical occupancy is expected at 95.9%.
For the full year, the Zacks Consensus Estimate for normalized FFO per share is pegged at $3.77. The figure indicates a 7.1% increase year over year on 5.1% year-over-year growth in revenues to $2.87 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for Equity Residential this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Equity Residential currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are three stocks from the broader REIT sector — Welltower Inc. (WELL - Free Report) , VICI Properties Inc. (VICI - Free Report) and Kimco Realty Corporation (KIM - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Welltower is slated to report quarterly numbers on Feb 13. WELL has an Earnings ESP of +0.80% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
VICI Properties, scheduled to report quarterly numbers on Feb 22, has an Earnings ESP of +2.16% and carries a Zacks Rank of 3.
Kimco Realty, slated to release quarterly numbers on Feb 8, has an Earnings ESP of +2.56% and carries a Zacks Rank of 2 at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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https://www.zacks.com/stock/news/2217265/whats-in-store-for-equity-residential-eqr-in-q4-earnings?
| 2024-01-30T03:04:51Z
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Bruker Corporation (BRKR - Free Report) recently entered into a definitive agreement to acquire a Swiss provider of vendor-agnostic automated laboratory R&D and QC workflow solutions, Chemspeed Technologies AG. This marks a significant stride into the realm of lab automation, digitalization, and scientific software solutions.
This strategic move positions Bruker to further strengthen its Project Accelerate 2.0 initiative, which is focused on “Assays, Software, and Aftermarket.”
Accelerating Entry Into Automation
Chemspeed Technologies AG brings to the table modular automation and robotics solutions. This acquisition propels Bruker's capabilities in enhancing productivity within R&D and QC (quality control) departments, enabling researchers to achieve more with increased efficiency and without the need for additional staff.
Complementing SciY Platform
Chemspeed's expertise aligns seamlessly with Bruker's vendor-agnostic platform SciY, dedicated to software automation and digital transformation in the life science, biopharma and cleantech industries. The synergy between Bruker and Chemspeed provides a holistic approach to lab automation, ensuring a comprehensive suite of solutions for diverse scientific applications.
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Strategic Integration and Financial Impact
Chemspeed's automation solutions strategically fortify Bruker's commitment to Project Accelerate 2.0. The deal is anticipated to close in the first half of 2024, subject to regulatory reviews. Although financial details remain undisclosed, Bruker noted that Chemspeed reported revenues exceeding $50 million in 2023.
Chemspeed's Offering in Lab Automation
Chemspeed's portfolio includes flexible automation modules catering to various industries such as pharmaceuticals, biotech, chemicals, cleantech, materials, cosmetics and food. Their compliance-ready workflow solutions ensure data integrity, traceability and quality in regulated environments.
Dr. Rolf Gueller, founder and CEO of Chemspeed, expressed enthusiasm about the collaboration, emphasizing the shared commitment to advancing automated and digitalized workflows. Dr. Gueller is poised to contribute to the Chemspeed advisory board, ensuring ongoing support for customers.
Bruker's Outlook
Dr. Falko Busse, president of the Bruker BioSpin Group, welcomed Chemspeed's experienced team, highlighting their dedication to excellence in lab automation. He emphasizes the scalability and flexibility of Chemspeed's solutions, showcasing the possibilities achievable today in customizing workflows and integrating efficient automation layers.
Share Price Performance
Over the past year, shares of Bruker have increased 4.8% compared with the industry’s 0.7% rise.
Market Prospects
Going by a Mordor Intelligence report, the global lab automation software market is set to witness a CAGR of 8.2% during the forecast period (2022 to 2027). Factors driving this growth include increased demand for diagnostic testing, a focus on software development to address operational challenges and a shift toward commercial LIMS solutions. The rising pressure to comply with regulations, integration needs in healthcare systems and technological advancements further contribute to the market's positive outlook.
Zacks Rank and Key Picks
Bruker currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks to consider in the broader medical space are Universal Health Services (UHS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Acadia Healthcare (ACHC - Free Report) .
Universal Health Services, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 4.4% for 2024. UHS’s earnings surpassed estimates in all the trailing four quarters, delivering an average surprise of 5.47%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UHS shares have gained 1.9% in the past six months against the industry’s 5% decline.
Integer Holdings, presently carrying a Zacks Rank of 2, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 43.5% in the past year against the industry’s 3.7% decline.
Acadia Healthcare, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.4%. ACHC’s long-term earnings are expected to grow at 11.2%.
Acadia Healthcare’s shares have gained 11.7% in the past six months against the industry’s decline of 5%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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https://www.zacks.com/stock/news/2217266/bruker-brkr-to-advance-in-lab-automation-with-new-buyout
| 2024-01-30T03:04:57Z
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Accuray Incorporated (ARAY - Free Report) recently announced that the Providence Swedish Radiosurgery Center in Seattle, WA, is purchasing the latest generation CyberKnife S7 System. This purchase will be the hospital's second CyberKnife radiation delivery device purchase.
With the purchase of the latest CyberKnife, the center is expecting to enhance its cancer treatment capabilities. The robotic nature of the device will also enable precision and accuracy, making it a perfect option for treating neurologic problems. This robotic delivery device can make extremely precise radiation treatments possible in 1-5 sessions.
Price Performance
For the past six months, ARAY’s shares have plunged 35.4% compared with the industry’s decline of 3.1%. The S&P 500 increased 6.8% in the same time frame.
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More on the News
The CyberKnife S7 System is a non-invasive radiation therapy tool that is designed from the ground up to give physicians the operational efficiency and speed they require without compromising the accuracy and precision needed for stereotactic body radiation therapy and stereotactic radiosurgery. Additionally, the robotic architecture of the device will allow for precision and accuracy, which will make it a great choice for treating neurologic disorders as well.
With the help of artificial intelligence, the system can track and automatically adjust for tumor or patient movement during treatment, allowing for the delivery of radiation doses to the target in 15 minutes and with sub-millimeter precision.
Accuray’s CyberKnife System has strong potential as the company continues to leverage its potential in its precision Treatment Planning System and radiosurgery market.
Industry Prospects
Per a report by Predence Research, with a growth rate of 8%, the global radiation therapy market, which was valued at $7.3 billion in 2022, is expected to reach more than $14.9 billion by 2032.
With improved efficiency and efficacy, as well as higher market demands from a growing customer base, developed technologies in radiation therapy contribute to the growth of the radiation therapy market.
Notable Developments
In December 2023, Accuray announced the launch of its VitalHold package in Japan. This package supports surface-guided radiation therapy on the Radixact System, thus advancing breast cancer treatment.
In October 2023, the company announced the approval of the CNNC-Accuray joint venture Tomo C radiation therapy system from the Chinese National Medical Products Administration. The system will be used to treat cancer patients who require radiotherapy at least once to cure their disease, increase the chances of cure or relieve symptoms caused by the same.
Zacks Rank & Stocks to Consider
ARAY carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks to consider in the broader medical space are Universal Health Services (UHS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Acadia Healthcare (ACHC - Free Report) .
Universal Health Services, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 4.4% for 2024. UHS’s earnings surpassed estimates in all the trailing four quarters, delivering an average surprise of 5.47%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UHS’s shares have gained 1.9% in the past six months against the industry’s 5% decline.
Integer Holdings, presently carrying a Zacks Rank of 2, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 43.5% in the past year against the industry’s 3.7% decline.
Acadia Healthcare, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.4%. ACHC’s long-term earnings are expected to grow at 11.2%.
Acadia’s shares have gained 11.7% in the past six months against the industry’s decline of 5%.
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https://www.zacks.com/stock/news/2217267/accurays-aray-cyberknife-s7-to-enhance-radiation-treatment
| 2024-01-30T03:05:08Z
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Xerox Holdings Corporation (XRX - Free Report) reported lower-than-expected fourth-quarter 2023 results, wherein earnings and revenues declined from the year-ago quarter. Despite the earnings miss, the stock gained 5% since the company’s earnings release on Jan 25.
Adjusted earnings per share (EPS) of 43 cents missed the Zacks Consensus Estimate by 15.7% and decreased 51.7% year over year. Total revenues of $1.77 billion lagged the consensus mark by 1.6% and decreased 9.1% year over year on a reported basis. Revenues declined 7.4% on a constant-currency basis.
Xerox Holdings’ shares have gained 19.2% over the past year, outperforming the 17.6% increase in the industry it belongs to.
Revenue Details
Post-sale revenues were $1.3 billion, down 5.8% from the year-ago quarter’s figure and missing our estimate of $1.35 billion. Equipment sales decreased 17.3% year over year to $458 million, falling short of our estimate of $441.6 million. Equipment sales and post-sale revenues declined 18.3% and 7.5%, respectively, year over year, on a constant currency basis.
The Print and Other segment’s revenues totaled $1.69 billion, down 9.5% year over year. FITTLE’s revenues of $100 million increased 1% from the year-ago reported quarter.
Sales revenues were $721 million, down 15.3% year over year. Services, maintenance and rental revenues tumbled 3.8% year over year to $1 billion. Financing revenues of $44 million fell 13.7% year over year.
Operating Performance
Adjusted operating income amounted to $96 million, up more than 46.1% on a year-over-year basis. Adjusted operating margin was 5.4%, down from the year-ago 9.2%.
Kay Balance Sheet and Cash Flow Figures
XRX exited the quarter with a cash and cash equivalent balance of $519 billion compared with $532 million at the year-ago quarter end. The company’s operating cash flow and free cash flow were $389 million and $379 million, respectively, in the reported quarter.
2024 Guidance
Management expects 2024 revenue growth to be 3-5% on a constant currency basis. Adjusted operating margin is anticipated to be around 7.5%. Free cash flow is forecast to be at least $600 million.
The company currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
DocuSign (DOCU - Free Report) : The Zacks Consensus Estimate for DocuSign’s fiscal 2024 revenues indicates 9.2% growth from the year-ago figure, while earnings are expected to grow 41.4%. The company beat the consensus estimate in each of the past four quarters, the average surprise being 24.7%.
DOCU currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate for Broadridge’s 2024 revenues indicates 7.7% growth from the year-ago figure, while earnings are expected to grow 10.1%. The company beat the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
BR carries a Zacks Rank #2 (Buy), at present.
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https://www.zacks.com/stock/news/2217268/xerox-holdings-xrx-gains-5-despite-unimpressive-q4-results
| 2024-01-30T03:05:14Z
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Becton Dickinson and Company (BDX - Free Report) , popularly known as BD, is scheduled to report first-quarter fiscal 2024 results on Feb 1, before market open.
In the last reported quarter, the company’s earnings per share (EPS) of $3.42 matched the Zacks Consensus Estimate. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and matched once, delivering an earnings surprise of 4.5%, on average.
Let’s check out the factors that have shaped BDX’s performance prior to this announcement.
Factors to Note
BD Life Sciences
On fourth-quarter fiscal 2023 earnings call in November, BD confirmed that it continued to witness lower COVID-only testing revenues. However, excluding COVID-only testing, the Life Sciences segment’s base revenues witnessed growth driven by strength in the Biosciences (BDB) business unit.
The segment’s base revenues also grew on an underlying basis, which reflected the Integrated Diagnostic Solutions business unit’s base business growth. This was driven by the continued adoption of BD KIESTRA microbiology lab automation solution, strong IDAST instrument placements and continued growth of BD’s molecular In Vitro Diagnostic assays, leveraging the BD core system and expanded BD MAX installed base.
BDB’s performance reflected growth in Research Instruments driven by strong demand for the company’s BD FACSDiscover S8 Cell Sorter and strength in Clinical Reagents leveraging its growing installed base of FACSLyric analyzers and FACSDuet automation.
These trends are likely to have continued in first-quarter fiscal 2024. This, in turn, is anticipated to have contributed to the strength in base business despite the expected ceaseless fall in COVID-only testing revenues. This is likely to have significantly driven up the segmental revenues.
In December 2023, BD received the FDA’s 510(k) clearance for the BD MiniDraw Capillary Blood Collection System. This raises our optimism about the stock.
The Zacks Model estimates the BD Life Sciences revenues to be $1.25 billion in the fiscal first quarter.
BD Interventional
In June 2023, BD signed a definitive agreement to sell its Surgical Instrumentation platform to STERIS. Per management, the value-creating transaction will likely support the achievement of BD 2025 financial goals and advance the segment’s focus on high-growth end markets. Management also believes that the divestiture will allow it to focus on BD Surgery’s strategic investments In Advanced Repair and Reconstruction and surgical complications, which are driving results and helping to address unmet needs in healthcare. The company is likely to have benefited from the divestiture in the first quarter of fiscal 2024.
During the fiscal fourth quarter, the segment continued to witness strong growth, driven by continued market adoption of BD’s products. These trends are likely to have continued in the first quarter of fiscal 2024 as well, thereby significantly pushing up the segmental revenues.
The Zacks Model estimates the BD Interventional revenues to be $1.16 billion, suggesting an uptick of 2.5% from the year-ago quarter’s reported figure.
Other Factors to Note
In November 2023, BD launched the SiteRite 9 Ultrasound System. It is a new and advanced ultrasound system designed to help improve clinician efficiency when placing peripherally inserted central catheters, central venous catheters, IV lines and other vascular access devices. The same month, BD launched a new needle-free blood draw technology compatible with integrated catheters, the PIVO Pro Needle-free Blood Collection Device. These products are likely to have witnessed robust adoption in recent months, thereby driving up the Medical segment’s revenues in the to-be-reported quarter.
Continued strong growth in Pharmacy Automation (led by Parata and BD ROWA solutions), strength in Dispensing driven by BD Pyxis and strong demand for pre-fillable solutions for biologics such as BD Hypak and innovative products like BD Neopak are likely to have benefited the company in the to-be-reported quarter as well.
However, the current unstable macroeconomic business environment, continued inflationary pressures, and labor dynamics are likely to have weighed on the company’s fiscal first-quarter revenues, raising our apprehension.
The Estimate Picture
For first-quarter fiscal 2023, the Zacks Consensus Estimate for revenues is pegged at $4.74 billion, implying an improvement of 3.3% from the prior-year quarter’s reported figure.
The consensus estimate for EPS is pegged at $2.39, indicating a decrease of 19.8% from the prior-year period’s reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: BD has an Earnings ESP of -0.09%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few other medical stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
Hologic, Inc. (HOLX - Free Report) has an Earnings ESP of +2.88% and a Zacks Rank of 2. HOLX has an estimated long-term growth rate of 7.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 12.4%.
Merit Medical Systems, Inc. (MMSI - Free Report) has an Earnings ESP of +3.68% and is a Zacks #2 Rank stock. MMSI has an estimated long-term growth rate of 11.5%.
Merit Medical’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 14.4%.
HCA Healthcare, Inc. (HCA - Free Report) has an Earnings ESP of +6.39% and a Zacks Rank of 2. HCA has an estimated long-term growth rate of 9.6%.
HCA Healthcare’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, with the average surprise being 4.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217270/bd-bdx-gears-up-for-q1-earnings-whats-in-the-offing?
| 2024-01-30T03:05:20Z
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TEGNA's (TGNA - Free Report) efforts to bolster its near-term growth on the back of its expanding portfolio of premium content have been a major growth driver.
Its shares have gained 3.5% in the past month, outperforming the Zacks Consumer Discretionary sector’s growth of 2%. The growth can be attributed to its growing focus on local content creation, which ultimately boosts subscription revenues from traditional cable and satellite operators and OTT providers.
The company currently operates more than 64 television stations and two radio stations in 51 U.S. markets. It caters to 39% of TV households in the United States, providing high-quality television programming and digital content.
TEGNA recently announced that its television station, WFAA, has collaborated with the Dallas Mavericks, an American professional basketball team, to bring 10 additional games of the National Basketball Association’s (NBA) teams to the WFAA broadcast schedule. The games will be aired free of cost.
The new partnership will bring 13 free over-the-air games to more than 3 million households and to more than 7 million people across Dallas-Fort Worth in a span of 11 weeks.
WFAA will broadcast these games live in North Texas via free over-the-air (OTA) broadcasts and through cable, satellite and streaming services.
The deal will strengthen TGNA's sports content portfolio. This, in turn, will allow TGNA to capitalize on growth opportunities present in the global sports content market.
TEGNA’s Expanding Clientele to Aid Top-Line Growth
TEGNA is riding on an expanding clientele and a strong portfolio of content through different station apps like Roku, Amazon Fire TV, and more. The company strives to capture a large viewing audience as the number of viewers directly maximizes subscription revenues.
In the third quarter of 2023, revenues from subscriptions accounted for 53% of total revenues.
TEGNA also owns and operates entertainment brands like True Crime Network, Quest and Twist, which capitalize on the rapidly growing OTA and OTT television platforms.
This Zacks Rank #3 (Hold) company also has a long-term affiliation agreement with network stations like NBC, CBS, ABC and FOX to continue getting programs from these stations and gain from commercial advertising spots. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Previously, TEGNA’s Station KENS also collaborated with San Antonio Spurs to air 11 Spur games. Nate Ryan, the evening sports anchor at KENS, was to provide halftime commentary for certain Spurs games and KENS also presented specials during the early and mid-season, focusing on the Spurs. This seems to have boosted TEGNA’s subscription revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for TEGNA’s revenues for 2023 is pegged at $2.95 billion, indicating a decline of 10.1% year over year. Revenues from advertising and marketing services have been declining and are expected to affect total revenues.
The consensus mark for 2023 earnings is pegged at $1.81 per share, unchanged in the past 30 days.
Moreover, the latest moves to strengthen TEGNA's sports content portfolio will also aid the company's competitive position against industry peers like Paramount Global (PARA - Free Report) , Comcast (CMCSA - Free Report) and Charter Communications (CHTR - Free Report) , which are making continuous efforts to bolster their sports content portfolio.
Paramount Global’s launch of a free pop-up channel, namely NFL Super Bowl Classics, via its streaming television service, Pluto TV, remains noteworthy. The new channel, set to air between Jan 18 and Feb 21, brings an array of sports events to its streaming platform, including past Super Bowl games, NFL Films programming, Greatest Super Bowl Finishes, and MVP Rankings, to name a few.
Comcast’s Sky Sports also recently obtained broadcasting rights by entering into a 4-year deal broadcasting hundreds of additional English Premier League matches, starting in 2025. Sky Sports will broadcast 215 Premier League matches each season starting in 2025.
Recently, Charter Communication announced the availability of an ad-supported version of Disney+ Basic for Charter’s Spectrum TV select customers at no additional cost. In this regard, Charter also plans to include access to Disney’s ESPN+ and its large pool of exclusive, live sports events, including exclusive UFC events, NHL live games, college sports and more in the near term.
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https://www.zacks.com/stock/news/2217271/tegnas-tgna-sports-portfolio-gets-a-boost-with-new-deal
| 2024-01-30T03:05:27Z
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Enterprise Products Partners L.P. (EPD - Free Report) is set to report fourth-quarter 2023 results on Feb 1, before the opening bell.
Let’s delve into the factors that are anticipated to have influenced this pipeline operator’s performance in the to-be-reported quarter. However, it is worth taking a look at EPD’s previous quarter’s results first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the midstream energy player’s adjusted earnings of 60 cents missed the Zacks Consensus Estimate of 63 cents due to lower natural gas gathering and processing margins.
In the trailing four quarters, Enterprise’s earnings beat the Zacks Consensus Estimate twice and missed the same twice, delivering an average surprise of 0.85%. This is depicted in the graph below:
Let’s delve into the factors that are expected to have influenced EPD’s performance in the soon-to-be-reported quarter.
Estimate Trend
The Zacks Consensus Estimate for EPD’s fourth-quarter earnings witnessed no upward and downward revision in the past 30 days. It is pegged at 66 cents per share, indicating 1.5% growth from the year-ago reported figure.
The consensus mark for revenues is pinned at $12.8 billion, implying a 6.6% year-over-year decline.
Factors to Consider
Enterprise Products is likely to have generated stable fee-based revenues from its extensive pipeline network that spreads across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.
The Zacks Consensus Estimate for Enterprise’s equivalent pipeline transportation volumes for the fourth quarter is pegged at $11,968 million barrels per day, suggesting an increase from the $11,518 million barrels per day reported in the prior-year quarter.
However, since oil and gas prices were not as healthy as in the fourth quarter of 2022, the demand for midstream assets is likely to have declined following the reduced production of the commodities. This, in turn, is expected to have hurt the total segment gross operating margin.
The Zacks Consensus Estimate for the gross operating margin from Enterprise’s Natural gas pipeline services segment for the fourth quarter is pegged at $282 million, suggesting a decline from the $315 million reported in the prior-year quarter.
Also, the Zacks Consensus Estimate for the gross operating margin from Enterprise’s NGL Pipelines & Services segment for the fourth quarter is pegged at $1,249 million, suggesting a decline from the $1,294 million reported in the prior-year quarter.
Earnings Whisper
Our proven model does not conclusively predict an earnings beat for Enterprise Products this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. But that is not the case here.
Earnings ESP: Enterprise has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate both are pegged at earnings of 66 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms worth considering, as these have the right combination of elements to beat on earnings in the upcoming quarterly reports:
Marathon Petroleum (MPC - Free Report) currently has an Earnings ESP of +2.21% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release fourth-quarter earnings on Jan 30. The Zacks Consensus Estimate for MPC’s earnings is pegged at $2.36 per share, suggesting a 64.5% decline from the year-ago reported figure.
Exxon Mobil Corporation (XOM - Free Report) has an Earnings ESP of +0.48% and is currently a Zacks #3 Ranked player.
The company is scheduled to release fourth-quarter results on Feb 2. The Zacks Consensus Estimate for XOM’s earnings is pegged at $2.21 per share, suggesting a 35% decline from the year-ago reported figure.
USA Compression Partners, LP (USAC - Free Report) has an Earnings ESP of +4.35% and is a Zacks #2 Ranked player at present.
USA Compression Partners is scheduled to release fourth-quarter results on Feb 13. The Zacks Consensus Estimate for USAC’s earnings is pegged at 12 cents per share, suggesting a year-over-year improvement of 400%.
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https://www.zacks.com/stock/news/2217274/enterprise-epd-to-report-q4-earnings-whats-in-the-offing?
| 2024-01-30T03:05:33Z
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Skechers U.S.A., Inc. (SKX - Free Report) is likely to register top-line growth when it reports fourth-quarter 2023 earnings on Feb 2, after market close. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,013 million, indicating a rise of 7.2% from the prior-year quarter’s reported figure.
The consensus estimate for fourth-quarter earnings per share is pegged at 52 cents, suggesting an increase of 8.3% from the year-ago period’s actual. This estimate has been increased by a couple of cents over the past 30 days, underscoring the market's confidence in Skechers' fourth-quarter performance.
This designer, developer, marketer and distributor of lifestyle and performance footwear stunned analysts with an earnings surprise of 19.2% in the last reported quarter. SKX has a trailing four-quarter earnings surprise of 50.3%, on average.
On its last reported quarter’s earnings call, management guided sales between $1.91 billion and $2.01 billion, and earnings of 40-50 cents a share for the fourth quarter.
Key Factors to Note
Skechers' focus on growing its direct-to-consumer segment, and providing innovative, superior-quality products has been a key factor in driving its revenues. The brand's commitment to expanding its retail footprint, enhancing its omnichannel capabilities, and reinforcing its distribution strengths has been playing a crucial role in solidifying its market stance and securing continuous growth.
We anticipate direct-to-consumer revenues to increase 12.1% in the fourth quarter. This growth is fueled by expected improvements of 11.9% and 12.2% in the domestic and international direct-to-consumer businesses year over year, respectively.
SKX's international business has been a major contributor to its sales, with notable successes across various regions, including the Asia-Pacific, and Europe, the Middle East and Africa. This achievement has largely been fueled by the company's dedicated approach to offering innovative, high-quality products customized to meet the specific tastes and preferences of each region. We expect the international wholesale business to increase 4.4% in the fourth quarter. This is in sharp contrast with the domestic wholesale business, which is expected to decline 4.7% year over year.
In addition to the aforementioned factors, Skechers' meticulous management of operating costs is expected to have driven the company's profitability. Although there was an increase in general and administrative expenses in the third quarter, the expenditure has facilitated the company's growth, driven by higher sales volumes, particularly in the direct-to-consumer segment and international markets. We foresee an operating margin expansion of 80 basis points for the fourth quarter.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Skechers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here.
Skechers currently has a Zacks Rank #2 and an Earnings ESP of +15.70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.40% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter fiscal 2023 earnings per share is pegged at $4.99, suggesting a rise of 13.4% from the year-ago reported number.
You can see the complete list of today’s Zacks #1 Rank stocks here.
lululemon athletica’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.19 billion, which indicates an increase of 14.9% from the figure reported in the prior-year quarter. LULU has a trailing four-quarter earnings surprise of 9.2%, on average.
Deckers Outdoor (DECK - Free Report) presently has an Earnings ESP of +1.39% and a Zacks Rank #2. The company is expected to register a bottom-line rise when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $11.36 suggests an increase of 8.4% from the year-ago quarter’s reported number.
Deckers Outdoor’s top line is anticipated to increase year over year. The consensus mark for revenues is pegged at $1.43 billion, indicating a rise of 6.6% from the figure reported in the year-ago quarter. DECK has a trailing four-quarter earnings surprise of 26.3%, on average.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +0.97% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $7.48 suggests a rise of 12% from the year-ago reported number.
Ulta Beauty’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.51 billion, which suggests an increase of 8.9% from the prior-year quarter’s reported figure. ULTA has a trailing four-quarter earnings surprise of 5.8%, on average.
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| 2024-01-30T03:05:39Z
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Tyson Foods, Inc. (TSN - Free Report) has marked a significant expansion in its bacon production capabilities with the opening of a $355-million food production facility in Bowling Green, KY. This state-of-the-art 400,000-square-foot plant is poised to become a central pillar in Tyson Foods' strategy to meet the increasing demand for bacon in the retail and foodservice sectors.
Image Source: Zacks Investment Research
Details on The Facility
The new facility is designed to produce an impressive two million pounds of bacon per week. These include premium quality Jimmy Dean and Wright Brand bacon, which are integral to Tyson Foods' sales exceeding $1 billion in the bacon category. With the increased capacity, the company is well-positioned to address current market needs and future growth.
The facility is designed to significantly enhance the company's bacon production capabilities. This aligns with the growing consumer demand in the bacon category. The expansion into innovative bacon flavors, cuts and products indicates Tyson Foods' commitment to growth and adaptation to market trends.
The choice of Bowling Green for the new facility is strategic, considering its proximity to the necessary raw materials within Tyson Foods’ pork supply chain, as well as efficient transportation routes. This placement aligns with the company’s focus on operational excellence and efficiency.
A key feature of the Bowling Green plant is its advanced automation and design, prioritizing the safety and well-being of team members. The facility incorporates high-tech robots for reducing ergonomic stress and autonomous systems for efficient product movement.
Other Growth Measures
Tyson Foods, with its notable array of brands, maintains a dominant position in the majority of retail categories. The company's initiatives aimed at enhancing productivity, particularly through improvements in procurement, logistics and digital technologies, are showing positive results. Additionally, Tyson Foods is concentrating on expanding its reach into international markets as part of its strategic growth plan.
This Zacks Rank #1 (Strongly Buy) company has gained 18.8% in the past three months against the industry’s growth of 7.7%.
Three Other Solid Picks
Some other top-ranked stocks from the same sector are Flowers Foods (FLO - Free Report) , Ingredion Incorporated (INGR - Free Report) and The Coca-Cola Company (KO - Free Report) .
Flowers Foods emphasizes providing high-quality baked items, developing strong brands, making innovations to improve capabilities and undertaking prudent acquisitions. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales indicates growth of 5.9% from the 2022 reported figure. FLO has a trailing four-quarter average earnings surprise of 6.8%.
Ingredion serves diverse sectors in food, beverage, brewing, pharmaceuticals and other industries. INGR currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Ingredion’s current financial-year earnings and sales indicates growth of 24.8% and 5%, respectively, from the 2022 reported figures. INGR has a trailing four-quarter average earnings surprise of 23.9%.
Coca-Cola is putting its best foot forward to evolve its business model to become a total beverage company with something for everyone to drink. The company currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Coca-Cola’s current financial-year earnings and sales indicates growth of 8.1% and 5.7%, respectively, from the 2022 reported figures. KO has a trailing four-quarter average earnings surprise of 5.1%.
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| 2024-01-30T03:05:45Z
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Across this Global Week Ahead, U.S. tech mega-caps and large European banks report Q4 results.
Friday morning shows stock traders preliminary U.S. nonfarm jobs adds for JAN ‘24. A solid +162K is consensus. A seasonally strong +216K print for DEC closed out ’23.
Also on Friday morn, traders inspect the latest ISM manufacturing PMI for the U.S.A.
In terms of policy action, the U.S. Federal Reserve and the Bank of England (BoE) hold their first formal monetary policy meetings of ’24.
They grab the baton from the European Central Bank (ECB) and the Bank of Japan (BoJ).
In Asia, Mainland China's woes persist. Lots of PMIs arrive for that region.
Next are Reuters’ five world market themes, reordered for equity traders—
(1) Mega-Cap Tech and Growth Companies Supply Q4-23 Earnings Results
A heavy week of U.S. corporate results sees mega-cap tech and growth companies take center stage.
Reports are due from Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) and Meta Platforms (META - Free Report) — five of the "Magnificent Seven" stocks that tallied eye-popping gains in 2023 and helped lift the S&P500 to a new record high in January for the first time in two years.
With the S&P500 officially in a bull market, the Magnificent Seven's results will be crucial in determining whether the index can maintain its momentum.
Overall, S&P500 companies are on track to post a +4.5% rise in Q4 earnings compared to the year-ago period, according to LSEG data.
Markets are focused on whether corporate earnings will indeed be rosier in 2024, as expected, with S&P500 companies estimated to increase earnings by over 10% this year.
(2) In Europe, Major Banks Report Earnings Results
European banks have been basking in a feeling they haven't had for years: rising profits and outperforming shares.
The highest rates in decades have seen lenders' net interest income — the amount they earn on loans minus deposit costs — soar. Shareholder payouts have hit record highs.
BBVA (BBVA - Free Report) reports full-year results on Tuesday, Santander (SAN - Free Report) on Wednesday, with others to follow Thursday.
Investors will be watching out for signs the higher-rate boost has peaked — especially with the ECB expected to start cutting rates this year — but also gauge how fast banks' loan quality is deteriorating. Higher rates finally biting raises the question whether lenders can be as generous with buybacks and dividends.
Wednesday's Eurozone Q4 GDP numbers and Thursday's flash January inflation data should provide the banking sector and broader market of when those ECB cuts might arrive.
(3) On Wednesday, the 1st FOMC Meeting of 2024 Concludes
The Fed is expected to leave rates unchanged at its Jan. 30th - 31st meeting with markets hunting for clues on when the world's top central bank will start trimming borrowing costs after one of the most aggressive tightening cycles in decades.
Expectations for rate cuts as soon as March sparked an explosive 2023-end stock and bond rally. Investors still believe cuts are coming this year, but stronger-than-expected data and a policymaker pushback have sapped conviction for a first-quarter rate move.
Signs that Fed Chief Jerome Powell backs holding rates higher for slightly longer could give a tailwind to some of the moves the rates rethink has unleashed, such as a rebound in Treasury yields and the dollar.
Markets will watch the U.S. Treasury's quarterly refunding announcements, with overall funding totals due on Jan. 29 and maturity breakdowns on Jan. 31. Worries over U.S. government debt issuance contributed to an autumn bond rout.
And traders won't have much down time after the Fed meeting, with closely-watched US non-farm payrolls report out on Friday.
A Reuters poll forecasts the U.S. economy created 162,000 new jobs in January versus 216,000 the month before.
(4) On Thursday, a Bank of England (BoE) Monetary Policy Meeting
Sterling bulls may not have much further to run.
The Bank of England is expected to keep rates steady on Feb. 1st, but signal rates may not stay at their 16-year high for much longer.
The pound, up around 5% against the dollar in three months, has done well out of expectations the BoE might move more slowly on rate cuts than the Fed. That support looks shaky: Economists expect the BoE to drop its long-held warning that it will hike rates again if inflation rebounds.
Investors are also wary of the ruling Conservative party cutting taxes too generously in its March budget, ahead of an election expected at year’s end. They may have some headroom, but the prospect of entering unsustainable spending territory could dent sterling.
(5) This Week, Keep an Eye Out for PMIs from Major Asian Countries
The release of China's official purchasing managers' index (PMI) data on Wednesday could bolster the case that some serious repair work is needed on the world's second-biggest economy.
Cries for further stimulus to shore up a feeble post-pandemic recovery have thus far been broadly met with dribs-and-drabs rescue packages. Investors have fled a market that was once a broad must-have for global portfolios — sending Chinese equities to multi-year lows.
The central bank delivering a deep cut to bank reserves that will inject about $140 billion of cash into the banking system seemed to only bring temporary relief. While China narrowly surpassed last year's 5% growth target, analysts are skeptical that trend can be sustained.
PMI figures from elsewhere in the region — South Korea, Thailand and India — also scatter the data calendar.
Zacks #1 Rank (STRONG BUY) Stocks
A couple of major European firms made our #1 list.
I noted a major U.S. regional bank, with rising earnings estimates too.
(1) The Bank of New York Mellon (BK - Free Report) : This is a $55 stock in the U.S. Major Regional Bank industry. It has a market cap of $42.3B. I see a Zacks Value score of C, a Zacks Growth score of D and a Zacks Momentum score of A.
Image Source: Zacks Investment Research
Headquartered in New York and formed as a holding company for The Bank of New York Mellon, The Bank of New York Mellon Corp. (popularly known as BNY Mellon) is a financial services company that has been in business since 1784.
The company was incorporated on Jul 1, 2007, following the merger of The Bank of New York Company Inc. and Mellon Financial.
BNY Mellon operates in 35 countries and provides various products and services to individuals and institutions. Its global client base consists of financial institutions, corporations, government agencies, endowments and foundations, and high-net-worth individuals.
(2) Spotify Technology (SPOT - Free Report) : This is a $214 stock in the Technology Services industry. It has a market cap of $41.2B. I see a Zacks Value score of D, a Zacks Growth score of A and a Zacks Momentum score of F.
Image Source: Zacks Investment Research
Spotify Technology S.A. provides music streaming services. The company offers commercial free music and ad-supported services to subscribers.
Spotify Technology S.A. is based in Sweden.
(3) Flutter Entertainment (PDYPY - Free Report) : This is a $103 stock in the Book Publishing industry. It has a market cap of $36B. I see a Zacks Value score of F, a Zacks Growth score of C, and a Zacks Momentum score of C.
Flutter Entertainment PLC is involved in bookmaking business. Its brands portfolio consists of Betfair, Paddy Power, Sportsbet, TVG and FanDuel.
Flutter Entertainment PLC, formerly known as Paddy Power Betfair plc, is based in Dublin, Ireland.
Key Global Macro
On Monday, the Japanese household unemployment rate is 2.5%. We get an update, and 2.5% is still the consensus.
On Tuesday, seasonally adjusted Australian retail sales for DEC come out. In m/m terms, I see a +2% m/m growth rate sticks around.
Euro Area Q4 real GDP growth should be 0% y/y, in a preliminary reading. That makes the prior reading of 0.0% y/y unchanged. In q/q terms, look for a -0.1% m/m move.
The U.S. Case/Shiller Home Price Index (HPI) for NOV comes out. The prior reading was a +4.9% y/y increase.
U.S. JOLTS job openings for DEC come out. The prior reading was a strong 8.79M.
On Wednesday, the Mainland China NBS non-manufacturing PMI for JAN comes out. The prior reading was 50.4.
The Mainland China NBS manufacturing PMI for JAN should be 49.3. The prior reading was 49.
U.S. ADP private job additions should be +130K in JAN. The DEC number was +164K.
The FOMC monetary policy statement comes out. The policy rate of 5.25% to 5.5% is not expected to change, after this meeting breaks up.
On Thursday, there is an E.U. leader’s summit.
The Euro Area HCOB manufacturing PMI for JAN should be 46.6. The prior DEC reading was 46.6.
Core Euro Area HICP consumer inflation rate should be +3.2% y/y in JAN. The prior DEC print showed +3.4% y/y.
There is a Bank of England (BoE) monetary policy statement. No move from the 5.25% policy rate is expected.
The ISM manufacturing PMI for JAN should be 47.4. The prior reading was also 47.4.
On Friday, U.S. nonfarm payrolls for JAN should be +162K. The prior DEC reading was 216K. Given the shortened length of time to collect data, focus on the revised numbers, later on.
The U.S. household unemployment rate should remain unchanged at 3.7%.
U of Michigan consumer sentiment for JAN should be 78.8.
Conclusion
I conclude with Zacks Research Director Sheraz Mian’s key points, written down on Jan. 24th, 2024:
(1) The ‘Big 7 Tech Players’ started to report Q4-23 results, with more out this week.
- Zacks expects total Q4 earnings for this critical group to be up +38.3% from the same period last year, on +12.5% higher revenues.
- This would follow the group’s +54.2% higher earnings on +12.9% higher revenues in Q3-23.
(2) Total Q4 earnings for the 83 S&P500 members that have reported results are up +0.9% from the same period last year on +3.9% higher revenues.
- 78.3% are beating EPS estimates. 65.1% are beating revenue estimates.
- The Q4 earnings growth pace for these 83 index members is below what we had seen from this group of companies in other recent periods.
- The 78.3% EPS beats percentage is tracking in-line with the 20-quarter average of 78.2%.
(3) The revenue growth pace for this group of 83 S&P500 index members represents a deceleration, relative to what we had seen from the group in other recent periods.
- The 65.1% revenue beats percentage is below recent periods.
- It is below the 20-quarter avg. of 69.1% for this group of 83 index members too.
(4) Looking at Q4 as a whole, we can combine actual results that have come out, with estimates for the still-to-come companies.
- Total S&P500 index earnings are currently expected to be up +0.6% from the year-earlier level on +2.3% higher revenues.
- This would follow the +3.8% earnings growth in 2023 Q3 on +2.0% higher revenues.
Yes. The mega-cap tech companies are that dominant, to this Q4 earnings scene.
Their outlook on 2024 may matter the most to stock traders.
We shall see.
Happy trading and investing!
John Blank
Zacks Chief Equity Strategist and Economist
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| 2024-01-30T03:05:51Z
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Spectrum Brands Holdings Inc. (SPB - Free Report) looks well-placed, driven by the progress on its Global Productivity Improvement Plan and strategic transformation efforts. The company’s growth initiatives and ongoing cost-takeout plans position it for long-term growth. It is anticipated to retain its strong balance sheet position, enabling it to invest in its business throughout fiscal 2024.
However, higher marketing and advertising investments are likely to result in elevated operating expenses. Slower category POS and retailers’ focus on inventory reduction hurt the top line in fourth-quarter fiscal 2023. Soft sales trends in the Home & Personal Care segment due to lower demand and inventory reduction actions were headwinds.
Shares of the Zacks Rank #3 (Hold) company have gained 24.4% in the past year against the industry’s decline of 16.2%. SPB also compared unfavorably with the Consumer Discretionary sector’s growth of 5.3%.
Image Source: Zacks Investment Research
Factors Aiding Growth
Spectrum Brands is progressing well with its Global Productivity Improvement Plan, which aims at improving the company's operating efficiency and effectiveness, while focusing on consumer insights and growth-enabling functions, including technology, marketing, and research and development.
The majority of the savings are expected to be reinvested into growth initiatives and consumer insights, R&D, and marketing across each business. This plan will also enable the company to deliver value creation and sustainable growth in the long term.
Spectrum Brands is on track with its four core pillars to drive growth. In this regard, the company is streamlining its organizational structure and re-energizing its employee base. It is committed to improving operational efficiencies throughout and limiting risk. Management is protecting and deleveraging its balance sheet while solidifying liquidity. It is focused on transforming the company into a pure-play global Pet, and Home & Garden business.
As part of its strategic transformation, the company completed the sale of HHI to ASSA ABLOY for $4.3 billion in cash on Jun 20, subject to customary purchase price adjustments. It expects $3.8 billion in net proceeds from this sale. With the sale of the HHI business, SPB can refocus on its core businesses and boasts a stronger balance sheet.
Spectrum Brands have been gaining from increased pricing, cost improvements and a favorable mix, which drove margins in fourth-quarter fiscal 2023. The company has been proactive in its cost-takeout actions implemented in the second half of fiscal 2022, including fixed cost reduction by eliminating permanently salaried headcount, and reducing advertising and promotional spending. These actions helped mitigate the EBITDA decline to some extent.
The company notes that its actions position it to deliver EBITDA growth across each business unit. Moreover, it expects consolidated adjusted EBITDA to improve in the high-single digits in fiscal 2024.
Hurdles on the Path
Retailers’ focus on excess inventory reduction due to the difficult consumer environment has been impacting Spectrum Brands’ results. This hurt the company’s results across the board in fourth-quarter fiscal 2023. For fiscal 2024, it expects a low-single-digit sales decline. This includes the adverse impacts of foreign currency.
Spectrum Brands' Home & Personal Care segment has been witnessing a category decline from lower demand, particularly in kitchen appliances, and continued retailer inventory management in North America. This impacted the segment’s sales in fourth-quarter fiscal 2023. Going forward, the company expects the macro-economic environment to remain drab and result in top-line pressure, particularly in the Home and Personal Care business.
Although Spectrum Brands has been proactive with its cost-management actions, operating expenses continue to be elevated. In the fiscal fourth quarter, the company witnessed higher operating expenses, driven by renewed advertising and promotional spending. It stated that it increased investments in marketing and advertising in the fiscal fourth quarter. SPB expects to continue with this trend in fiscal 2024 to drive long-term business growth.
Stocks to Consider
We have highlighted three better-ranked stocks from the Consumer Discretionary sector, namely GIII Apparel Group (GIII - Free Report) , PVH Corporation (PVH - Free Report) and lululemon athletica (LULU - Free Report) .
GIII Apparel currently sports a Zacks Rank #1 (Strong Buy). GIII shares have rallied 90.1% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GIII Apparel’s current financial year’s earnings per share suggests growth of 39.3% from the year-ago period’s reported figures. The company has a trailing four-quarter earnings surprise of 541.8%, on average.
PVH Corp has a trailing four-quarter earnings surprise of 18.9%, on average. It currently carries a Zacks Rank #2 (Buy). PVH shares have rallied 41.3% in the past year.
The Zacks Consensus Estimate for PVH’s current financial-year sales and EPS suggests growth of 1.2% and 16.6%, respectively, from the year-ago period's reported figures.
lululemon has a trailing four-quarter earnings surprise of 9.2%, on average. It currently carries a Zacks Rank #2. LULU shares have gained 58% in the past year.
The Zacks Consensus Estimate for lululemon’s current financial-year sales and earnings suggests growth of 18.4% and 23.8%, respectively, from the year-ago period's reported figures.
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| 2024-01-30T03:05:57Z
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BankUnited, Inc.’s (BKU - Free Report) fourth-quarter 2023 adjusted earnings of 72 cents per share met the Zacks Consensus Estimate. In the prior-year quarter, the company reported earnings of 82 cents. The reported quarter’s earnings excluded expenses related to FDIC special assessment and a loss on sale of operating lease equipment.
Results were aided by a decline in provisions. However, lower net interest income (NII) and non-interest income, along with higher expenses, were the undermining factors.
Net income was $20.8 million, plunging 67.6% year over year. Our estimate for the metric was $50.8 million.
For 2023, earnings per share of $2.38 missed the Zacks Consensus Estimate of $3.15. The figure represents a decline of 32.8% from the previous year. Net income was $178.7 million, down from $285 million. Our estimate for net income was $206.3 million.
Revenues Decline & Expenses Rise
Quarterly net revenues were $234.3 million, declining 13.2% year over year. Also, the top line missed the Zacks Consensus Estimate of $244.1 million.
Full-year net revenues were $960.6 million, down 3% year over year. The top line missed the Zacks Consensus Estimate of $996 million.
Quarterly NII was $217.2 million, decreasing 10.6% year over year. The net interest margin (NIM) contracted 21 basis points (bps) year over year to 2.60%. Our estimates for NII and NIM were $218 million and 2.58%, respectively.
Non-interest income of $17.1 million was down 36.3% from the prior-year quarter. The decline was mainly due to a fall in lease financing income. We had projected non-interest income of $23.4 million.
Non-interest expenses grew 28.5% year over year to $190.9 million. The increase was mainly due to a rise in employee compensation and benefits costs, deposit insurance expenses, and other non-interest expenses. Our estimate for non-interest expenses was $145.3 million.
As of Dec 31, 2023, net loans were $24.4 billion, up marginally from $24.2 billion as of Sep 30, 2023. Total deposits amounted to $26.5 billion, up marginally from $26.1 billion at the end of the previous quarter. Our estimates for net loans and total deposits were $25.1 billion and $27.5 billion, respectively.
Credit Quality Improves
In the reported quarter, the company recorded a provision of credit losses of $19.3 million, down 51.4% from the prior-year quarter.
As of Dec 31, 2023, the ratio of net charge-offs to average loans was 0.09%, down 13 bps from the Dec 31, 2022, level.
Capital Ratios Improve, Profitability Ratios Deteriorate
As of Dec 31, 2023, the Tier 1 leverage ratio was 7.9%, up from 7.5% as of Dec 31, 2022. The Common Equity Tier 1 risk-based capital ratio was 11.4%, up from 11%. The total risk-based capital ratio was 13.4%, up from 12.7% as of Dec 31, 2022.
At the end of the fourth quarter, the return on average assets was 0.23%, down from 0.69% in the year-earlier quarter. Return on average stockholders’ equity was 3.2%, down from 10.3%.
Our View
BankUnited’s efforts to grow fee income, along with higher interest rates, are expected to support revenue growth. However, an increase in expenses might hamper profits.
Currently, BKU carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
The Bank of New York Mellon Corporation’s (BK - Free Report) fourth-quarter 2023 adjusted earnings of $1.28 per share surpassed the Zacks Consensus Estimate of $1.12. However, the bottom line reflects a fall of 1.5% from the prior-year quarter.
Results were primarily aided by increases in net interest revenues and fee revenues. The assets under management (AUM) balance witnessed a rise, which was another major positive for BK. However, higher expenses hurt the results to some extent. Also, the credit quality was weak in the reported quarter.
Northern Trust Corporation’s (NTRS - Free Report) fourth-quarter 2023 adjusted earnings per share (excluding the impacts of loss on available-for-sale debt securities and FDIC special assessment fees) of $1.46 surpassed the Zacks Consensus Estimate of $1.33. However, the bottom line declined 11.5% year over year.
Rising fee income was a positive for NTRS. Also, an increase in total assets under custody and AUM balances supported financials. Nonetheless, a fall in net interest income and a deterioration in the credit quality were headwinds.
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https://www.zacks.com/stock/news/2217280/bankunited-bku-q4-earnings-meet-revenues-provisions-fall-yy?-provisions-fall-y/y
| 2024-01-30T03:06:04Z
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Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release fourth-quarter results on Feb 01, before market open.
The Zacks Consensus Estimate for Illinois Tool’s fourth-quarter earnings increased 0.4% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in three of the preceding four quarters, while missing in one. The average beat was 0.6%.
The Zacks Consensus Estimate for the company’s fourth-quarter 2023 revenues is pegged at $4,009 million, suggesting growth of 1% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $2.39 per share, indicating 2.1% growth from the year-ago quarter’s reported number.
Let’s see how things have shaped up for Illinois Tool this earnings season.
Factors to Note
Favorable customer mix and product line simplification activities are likely to have boosted the performance of Illinois Tool’s Automotive Original Equipment Manufacturer (OEM) segment in the fourth quarter. We expect the Automotive OEM segment’s revenues to be $758.4 million, suggesting a 1.8% increase from the year-ago reported number.
Growth in the institutional, food retail and restaurant end markets is likely to have supported the Food Equipment segment in the fourth quarter. We expect the segment’s revenues to increase 5.1% from the year-ago reported number to $663.0 million.
However, weakness in the company’s semiconductor-related business in North America is expected to have hurt the performance of the Test & Measurement and Electronics segment. We expect revenues from ITW’s segment to inch down 0.4% year over year to $728.7 million in the fourth quarter.
Declines in the consumer packaging, specialty films and strength films businesses are likely to have weighed on ITW’s Specialty Products segment in the to-be-reported quarter. Due to this adversity, in the fourth quarter, we expect the segment’s revenues to decline 3.4% year over year to $446.2 million.
Also, the Construction Products segment is expected to put up a weak show in the fourth quarter due to softness in the residential end market and the U.S. commercial end market. We expect revenues from the segment to decrease 2.7% year over year to $457.5 million in the fourth quarter.
Nevertheless, the company’s cost management actions and enterprise initiatives are likely to have positively impacted its fourth-quarter performance. We expect the company’s total revenues to increase 0.6% from the year-ago reported figure to $3,995.5 million. Our estimate for the company’s earnings is pegged at $2.38 per share, thus indicating a 1.7% rise from the year-ago reported figure.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for ITW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: ITW has an Earnings ESP of -1.02% as the Most Accurate Estimate is pegged at $2.36, which is lower than the Zacks Consensus Estimate of $2.39. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: ITW presently carries a Zacks Rank of 3.
Highlights of Q3 Earnings
Illinois Tool reported third-quarter 2023 adjusted earnings of $2.55 per share, which surpassed the Zacks Consensus Estimate of adjusted earnings of $2.44 per share. Earnings increased 8.5% year over year. Illinois Tool’s revenues of $4,031 million missed the consensus estimate of $4,079 million. The top line inched up 0.5% year over year due to a 0.2% increase in organic sales.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that, according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Alarm.com Holdings, Inc. (ALRM - Free Report) has an Earnings ESP of + 8.79% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release fourth-quarter 2023 results on Feb 22. Alarm.com’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 35%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank of 3. The company is slated to release fourth-quarter 2023 results on Feb 15.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.1%.
RBC Bearings Incorporated (RBC - Free Report) has an Earnings ESP of +8.19% and a Zacks Rank of 3. The company is slated to release third-quarter fiscal 2024 (ended December 2023) results on Feb 8.
RBC Bearings’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 7.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217283/whats-in-the-offing-for-illinois-tool-itw-in-q4-earnings?
| 2024-01-30T03:06:10Z
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M/I Homes, Inc. (MHO - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 31, 2024, before market open.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 12.9% and increased 3.2% on a year-over-year basis. Total revenues missed the Zacks Consensus Estimate by 1.9% but increased 3.3% from the year-ago quarter’s levels.
This homebuilding company’s earnings topped the consensus mark in each of the trailing eight quarters.
Trend in Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at $4.94 in the past seven days. The estimated figure indicates a 4.1% decline from $5.15 per share reported in the year-ago quarter.
The consensus mark for revenues is pegged at $1.19 billion, suggesting a 2.5% drop from the year-ago quarter’s reported figure.
Factors to Note
M/I Homes’ fourth-quarter earnings and revenues are expected to decline year over year due to the moderation in housing demand, influenced by higher mortgage rates. Also, the company has been facing challenges from the material costs and wage inflation, impacting the overall affordability of the U.S. housing market.
Although the company’s homebuilding revenues are likely to have witnessed tough year-over-year comparisons, MHO is expected to generate sequentially higher revenues, given the lack of existing homes inventory. The company’s focus on single-family homes and attached townhomes for first-time, millennial, move-up, empty-nester and luxury buyers is likely to have driven growth. Also, improved construction cycle time is likely to have helped it partially offset the negative impacts of the aforementioned headwinds.
The Zacks Consensus Estimate for Homebuilding revenues of $1,186 million suggests a decline from $1,194 million reported a year ago. However, the estimated figure indicates growth from $1,023 million reported in the previous quarter.
The consensus mark for homes delivered is pegged at 2,403 units, indicating a rise from 2,384 units a year ago. The same for the average home closing price is likely to be $482,000, suggesting a fall from $492,000 reported a year ago.
The Zacks Consensus Estimate for new contracts is pegged at 1,478 homes, calling for an increase from 985 homes reported a year ago.
The Zacks Consensus Estimate for backlog is pinned at 2,507 homes, suggesting a drop from 3,137 homes reported in the prior year.
The same for Financial Services revenues is pinned at $27.8 million, suggesting a rise from the year-ago level of $22.6 million. The estimated figure indicates growth from $23.6 million reported in the previous quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for MHO this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat on Earnings
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +6.64% and carries a Zacks Rank of #3.
LPX’s earnings for the to-be-reported quarter are expected to decline 14.8%. The company reported better-than-expected earnings in three of the last four quarters but missed on one occasion, the average surprise being 98.3%.
Floor & Decor Holdings, Inc. (FND - Free Report) has an Earnings ESP of +7.37 and carries a Zacks Rank #3.
FND’s earnings for the to-be-reported quarter are expected to decline 57.8% year over year. The company topped the consensus mark twice, met the same once and missed in the other in the trailing four quarters, the average surprise being 4.9%.
Vulcan Materials Company (VMC - Free Report) has an Earnings ESP of +1.85% and carries a Zacks Rank #3.
VMC’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, with the average being 13.6%. Earnings for the to-be-reported quarter are expected to grow 25.9% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217285/factors-setting-the-tone-for-mi-homes-mho-q4-earnings
| 2024-01-30T03:06:16Z
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Cleveland-Cliffs Inc. (CLF - Free Report) announced the successful completion of a hydrogen (H2) injection trial at its Indiana Harbor #7 blast furnace, marking a milestone in North American steel production. Following the successful trial at Middletown Works in May 2023, this represents the second Cleveland-Cliffs blast furnace to integrate hydrogen as a reductant and fuel source.
Indiana Harbor #7 stands as one of the largest blast furnaces globally and the largest in North America, renowned for its size and production capacity. Its technological prowess enables the production of high-end steels, particularly tailored for automotive applications, placing it favorably against counterparts in Japan, Korea, China and Europe.
Cliffs recently wrapped up the commissioning of the hydrogen pipeline at Indiana Harbor, a critical infrastructure for the trial's success. The completion of the pipeline, accomplished ahead of schedule, under budget and without incident, underscores Cliffs' commitment to future greenhouse gas reduction initiatives. Linde, Cliffs' hydrogen gas supplier, played a pivotal role in executing this significant trial.
Cleveland-Cliffs proudly embraced cutting-edge technology to reduce carbon emissions while maintaining operational efficiency and product quality. The company underlined its leadership in utilizing advanced technologies, positioning its blast furnace steel among the world's cleanest.
This commitment includes the incorporation of technologies such as iron ore pellets, natural gas injection, HBI, and the latest addition, hydrogen. The company commended its dedicated team for this achievement and expressed gratitude to Linde for its invaluable partnership in propelling sustainable steel production forward.
Shares of CLF are down 13.2% in the past year compared with a 4.9% fall of its industry.
Image Source: Zacks Investment Research
Cleveland-Cliffs, in its third-quarter call, stated that it expects to achieve a $15 per net ton reduction in steel unit costs from the third to the fourth quarter, with ongoing cost savings expected in 2024. In the fourth quarter of 2023, the company foresees a significant impact on free cash flow due to working capital. Cliffs revised its full-year 2023 capital expenditure forecast to $670 million, down from the midpoint of the earlier guidance of $700 million.
Zacks Rank & Other Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Cameco Corporation (CCJ - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and The Andersons (ANDE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 66.7% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 31% in the past year.
ANDE beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 32.8%. The company’s shares have increased 47.1% in the past year.
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https://www.zacks.com/stock/news/2217286/cleveland-cliffs-clf-successfully-tests-hydrogen-blast-furnace
| 2024-01-30T03:06:22Z
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Royal Caribbean Group (RCL - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 1, 2024. In the previous quarter, RCL delivered an earnings surprise of 12.2%.
Trend in Estimate Revision
The Zacks Consensus Estimate for Royal Caribbean’s fourth-quarter earnings per share (EPS) is pegged at $1.13. In the prior-year quarter, RCL reported a loss per share of $1.12.
For revenues, the consensus mark is pegged at $3.4 billion. The projection suggests an increase of 29.6% from the year-ago quarter’s reported figure.
Let’s take a look at how things have shaped up for the quarter to be reported.
Factors at Play
Royal Caribbean’s fourth-quarter top line is expected to have increased year over year on the back of an accelerating demand environment, a strong pricing environment and continued strength from onboard revenue areas. Robust demand, courtesy of its digital initiatives, enhanced commercial capabilities and ship upgrades, are likely to have aided the company’s performance in the to-be-reported quarter.
Our model estimates fourth-quarter passenger ticket revenues to rise 37.1% year over year to $2.3 billion. We expect onboard and other revenues to rise 12.7% year over year to $1 billion.
Strong book position, increased rates in ticket and chip board (for like-for-like chips) and new hardware additions are likely to have paved a path for yield improvements in the fourth quarter. The company anticipates net yields to rise 15-15.5% (on a reported basis) and 16.2-16.7% (constant-currency basis) from 2019 levels. Our model predicts fourth-quarter net yields at $226.7 million (on a reported basis) and $230.3 million (constant-currency basis).
Elevated costs concerning fuel and food are likely to have hurt margins in the fourth quarter. In fourth-quarter 2023, the company expects net cruise costs (excluding fuel per APCD) to increase 3.3-3.8% (on a reported basis) and 3.9-4.4% (constant currency) year over year. Per our model, fourth-quarter net cruise costs (excluding fuel per APCD) are estimated at $121.4 million (on a reported basis) and $122.2 million (on a constant-currency basis).
The company’s fourth-quarter bottom line is likely to reflect $0.18 negative impact on account of FX, fuel rates and cancellations of Israel sailings. Management estimates fourth-quarter adjusted EPS in the range of $1.05-$1.10.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Royal Caribbean this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat on earnings. But that's not the case here.
Earnings ESP: Royal Caribbean has an Earnings ESP of -0.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Royal Caribbean has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat on Earnings
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +14.99% and a Zacks Rank #3.
Shares of MGM Resorts have increased 9.5% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank #3.
Shares of Boyd Gaming have gained 6.8% in the past year. BYD’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.9%.
Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +5.05% and a Zacks Rank #3.
Hasbro’s shares have declined 13.2% in the past year. HAS’ earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 22.4%, on average.
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Royal Caribbean Cruises Ltd. (RCL) - free report >>
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https://www.zacks.com/stock/news/2217287/factors-setting-the-tone-for-royal-caribbean-rcl-q4-earnings
| 2024-01-30T03:06:28Z
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Match Group (MTCH - Free Report) is slated to report fourth-quarter 2023 results on Jan 30.
Match Group expects fourth-quarter 2023 revenues of $855-$865 million, indicating 9-10% year-over-year growth.
The Zacks Consensus Estimate for revenues is currently pegged at $862.05 million, indicating growth of 9.7% from the year-ago quarter.
For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 49 cents per share, which has remained unchanged in the past 30 days. The figure indicates growth of 63.3% year over year.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average negative surprise being 4.2%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Solid momentum across Tinder, driven by strong marketing and product strategies, is expected to have contributed well to Match Group’s top-line growth in the to-be-reported quarter.
Growing initiatives in price optimizations and weekly subscription packages are expected to have further bolstered Tinder’s performance in fourth-quarter 2023.
Match Group’s increasing focus on integrating the power of music into its offerings to gain popularity among Gen Z users is likely to have aided its performance in the quarter under review.
The company’s growing momentum in lower price and short-term duration products is expected to have acted as a tailwind for the company.
Also, strong demand for the Hinge dating app across several important markets like the U.K. and Australia, is expected to have been a key catalyst for Hinge’s top-line performance in the to-be-reported quarter.
Strengthening Azar app offerings, driven by its new AI-enabled matching algorithm, is likely to have benefited the company’s overall performance in the quarter under review.
All the above-mentioned endeavors are expected to have boosted the company’s Revenue Per Person (RPP) in the upcoming fourth-quarter results.
The Zacks Consensus Estimate for fourth-quarter 2023 total RPP is pegged at $18.20, indicating growth of 13.7% on a year-over-year basis.
However, the impacts of a weakening consumer demand, owing to the resumption of U.S. student loan repayments, are likely to have been major headwinds for the company’s performance in the to-be-reported quarter.
The consensus mark for total payers in the Americas in fourth-quarter 2023 is pegged at 7.44 million, indicating a decline of 7.6% on a year-over-year basis.
Further, macroeconomic uncertainties and forex headwinds are expected to have hurt MTCH’s profitability in the quarter under review.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for MTCH this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Match Group has an Earnings ESP of -4.07% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
Apple (AAPL - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
Alphabet (GOOGL - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, indicating growth of 54.3% from the year-ago quarter.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2 at present.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. The Zacks Consensus Estimate for TWLO’s earnings is pinned at 57 cents per share, implying year-over-year growth of 35 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2217288/match-group-mtch-to-post-q4-earnings-whats-in-store?
| 2024-01-30T03:06:35Z
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The world’s largest semiconductor company Intel (INTC - Free Report) shares dropped more than 11% on Friday after the chipmaker issued an outlook for the first quarter of 2024 that fell shy of analyst forecasts even as results for the latest quarter beat Wall Street estimates.
For the first quarter of fiscal 2024, Intel expects adjusted earnings per share of 13 cents on between $12.2 billion and $13.2 billion in sales, versus LSEG expectations of 33 cents per share on $14.15 billion of revenue, as quoted on CNBC. The company projects a fiscal first-quarter net loss of 25 cents per share on a GAAP basis.
Intel's CEO, Pat Gelsinger, indicated during a discussion with analysts that while the company's primary segments, namely PC and server chips, are expected to perform at the lower end of their typical seasonal spectrum this quarter, the overall revenue will be further impacted due to underperformance in its subsidiary divisions.
Inside the Earnings
The company reported GAAP earnings of $2,669 million or 63 cents per share against a loss of $664 million or a loss of 16 cents per share in the year-ago quarter. The significant improvement was primarily attributable to higher revenues and lower operating expenses.
Non-GAAP earnings in the reported quarter were $2,303 million or 54 cents per share compared with $635 million or 15 cents per share a year ago. The bottom line beat the Zacks Consensus Estimate by 10 cents.
GAAP revenues in the reported quarter were $15,406 million, up from $14,042 million a year ago. The quarterly revenues were well above the high end of the guided range, with better-than-expected performance across all lines of business. The top line beat the Zacks consensus estimate of $15,140 million.
Price Target Implies Likely Slump
Based on short-term price targets offered by 28 analysts, the average price target for Intel comes to $43.18. The forecasts range from a low of $17.00 to a high of $68.00. The average price target represents a decline of 12.86% from the last closing price of $49.55.
Should You Buy the Dip With Intel-Heavy ETFs?
Despite the negative picture, we highlight a few bright points associated with Intel stock. According to Gartner, a market research firm, Intel remains the largest semiconductor maker by revenue. This position underscores Intel's considerable influence in the semiconductor industry despite the competitive pressures.
Under CEO Gelsinger's leadership, Intel is focusing on a five-year plan initiated in 2021. The company aims to compete with Taiwan Semiconductor Manufacturing Co. in manufacturing services while enhancing its own chip offerings. Gelsinger emphasized the company's progress in its transformation journey, as quoted on CNBC.
Intel has been actively cutting costs, including workforce reductions and divesting smaller business units. Notably, it spun off its programmable chip unit and made its self-driving car subsidiary, Mobileye, an independent entity in 2022. These actions led to a cost reduction of $3 billion last year.
In 2023, Intel paid dividends amounting to $3.1 billion, representing its commitment to returning value to shareholders amidst its ongoing transformation and market challenges.
Time to Buy the Dip in Intel With Semiconductor ETFs?
Intel shares may be displaying a weaker trend following earnings, the entire semiconductor space should not as the higher demand for AI should keep other chip stocks charged-up. Investors can thus buy the dip in Intel with Intel-heavy Chip ETFs, not with the stock itself.
Intel has exposure to ETFs like First Trust Nasdaq Semiconductor ETF (FTXL - Free Report) , Strive U.S. Semiconductor ETF (SHOC - Free Report) , Invesco PHLX Semiconductor ETF (SOXQ - Free Report) , and iShares Semiconductor ETF (SOXX - Free Report) . These ETFs have exposure to Intel in the range of 9.5% to 5.9%.
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https://www.zacks.com/stock/news/2217289/intel-falls-on-weak-outlook-buy-the-dip-with-chip-etfs?
| 2024-01-30T03:06:41Z
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The Hartford Financial Services Group, Inc. (HIG - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 1, 2024, after the closing bell.
What Do the Estimates Say?
The Zacks Consensus Estimate for Hartford Financial’s fourth-quarter earnings per share is pegged at $2.39, which indicates an improvement of 3.5% from the prior-year quarter’s reported figure. The consensus mark for revenues is $4.3 billion, suggesting 7.4% growth from the year-ago quarter’s reported number.
Hartford Financial’s bottom line beat estimates in three of the trailing four quarters and matched the mark once, the average surprise being 10.8%. This is depicted in the chart below:
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for Hartford Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Earnings ESP: Hartford Financial has an Earnings ESP of +0.54% because the Most Accurate Estimate of $2.41 is pegged higher than the Zacks Consensus Estimate of $2.39. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: HIG carries a Zacks Rank of 3.
Before we get into what to expect for the to-be-reported quarter in detail, it is worth taking a look at HIG’s third-quarter performance.
Q3 Earnings Rewind
In the third quarter of 2023, adjusted operating earnings of $2.29 per share outpaced the Zacks Consensus Estimate by 17.4%. The quarterly results benefited from the Commercial Lines unit, which benefited on the back of higher premiums written and the Group Benefits business, which gained from improved fully insured ongoing premiums and sound core earnings margin. However, the upside was partly offset by an increased expense level and poor performance in the Hartford Funds segment.
Now, let us see how things have shaped up prior to the fourth-quarter earnings announcement.
Factors at Play
Hartford Financial’s revenues are expected to have benefited due to improved premiums across its Commercial Lines, Personal Lines and Group Benefits businesses in the fourth quarter. Our estimate for overall earned premiums is $5,351.4 million, which indicates an improvement of 6.6% year over year.
Persistent rate increases, new business growth, expanding policies in force and higher retention rates are expected to have benefited the Commercial Lines business in the to-be-reported quarter. However, the upside is likely to have been partly offset by the continued incidence of catastrophe losses, which, in turn, are expected to have inflicted some adversities on the underwriting results. We anticipate Commercial Lines’ earned premiums to improve 7.4% year over year to $2,972.5 million in the fourth quarter.
The Personal Lines business is expected to have benefited on the back of renewal written price increases in the fourth quarter. The homeowners’ insurance business is likely to have been aided by favorable net rates and insured value increases. However, the auto insurance business is likely to have suffered a setback from elevated severity losses and the continued inflationary headwinds.
We expect earned premiums of the Personal Lines unit to be $792.8 million, which implies a 5.1% rise from the prior-year quarter’s reported number.
The Group Benefits business is expected to have been driven by higher premiums, solid sales and improved long-term disability results in the to-be-reported quarter. Our estimate for earned premiums of the segment is $1,586.2 million, which indicates an improvement of 5.9% from the prior-year quarter’s reported figure.
Additionally, increased returns from the fixed-income portfolio of Hartford Financial, attributable to higher interest rates, are likely to have aided its fourth-quarter investment results. We expect net investment income to be $697.6 million, up 9% year over year.
However, its bottom line is expected to have suffered a blow due to escalating benefits, losses and loss adjustment expenses, as well as higher insurance operating costs. We expect total benefits, losses and expenses to increase 2.8% year over year to $5,431.1 million in the fourth quarter. HIG’s margins are also likely to have been hurt by expenses linked with investments to boost digital, analytics and data science capabilities.
Other Stocks to Consider
Here are some other companies from the broader Finance space, which, according to our model, also have the right combination of elements to beat on earnings this time around:
Coinbase Global, Inc. (COIN - Free Report) has an Earnings ESP of +151.28% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coinbase’s bottom line for the to-be-reported quarter suggests a 95.9% year-over-year improvement. COIN beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 63%.
Everest Group, Ltd. (EG - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for EG’s fourth-quarter 2023 earnings is pegged at $14.63 per share, which indicates an increase of 19.8% from the prior-year quarter’s reported figure.
Everest Group’s earnings beat estimates in three of the trailing four quarters, missing once, the average surprise being 24.5%.
Brookfield Asset Management Ltd. (BAM - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Brookfield Asset Management’s bottom line for the to-be-reported quarter indicates 9.7% growth from the year-ago period. BAM beat earnings estimates twice in the past four quarters and missed on the other two occasions, with an average surprise of 0.2%.
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The Hartford Financial Services Group, Inc. (HIG) - free report >>
Brookfield Asset Management Ltd. (BAM) - free report >>
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https://www.zacks.com/stock/news/2217290/is-a-beat-in-store-for-hartford-financial-hig-in-q4-earnings?
| 2024-01-30T03:06:47Z
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Apple (AAPL - Free Report) is set to report its first-quarter fiscal 2024 results on Feb 1.
The company expects the December quarter’s (first-quarter fiscal 2024) revenues to be similar to that of the year-ago quarter’s figure. In first-quarter fiscal 2023, net sales declined 5.5% year over year to $117.15 billion.
The Zacks Consensus Estimate for fiscal first-quarter revenues is currently pegged at $117.62 billion, indicating growth of 0.40% year over year.
The consensus mark for earnings is currently pegged at $2.09 per share, up by a penny over the past 30 days, indicating an 11.17% increase from the figure reported in the year-ago quarter.
Apple’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the earnings surprise being 3.47% on average.
Let’s see how things have shaped up for the upcoming announcement.
iPhone Revenues to Benefit From New Models
Apple’s fortunes are heavily reliant on the iPhone, which is by far its biggest revenue contributor. The device accounted for 48.9% of net sales in the last reported quarter, wherein sales decreased 0.7% year over year to $43.805 billion.
Apple expects iPhone’s year-over-year revenues to grow on an absolute basis. Our model estimates for fiscal first-quarter iPhone net sales are pegged at $66.68 billion, up 1.4% year over year.
Apple is expected to have shipped roughly 72.3 million iPhones in the first quarter of fiscal 2024, per our model.
Per the latest Canalys report on worldwide smartphone shipments, Apple’s market share was 24% in the fourth quarter of calendar 2023, beating Samsung’s 17%, driven by new iPhone launches - iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max.
However, iPhone sales are expected to have suffered from weak demand in the Chinese market due to lower demand amid stiff competition from Huawei and a ban on usage by government officials.
Services Growth to Accelerate in Q1
For the fiscal first quarter, Apple expects average revenues per week to grow at a similar strong double-digit rate as it did during the September quarter.
In the fiscal fourth quarter, Services revenues grew 16.3% from the year-ago quarter to $22.31 billion and accounted for 24.9% of sales.
An expanding paid subscriber base has been a key catalyst for the Services business, which is riding on the increasing popularity of the App Store and an expanding installed base of devices.
Apple has more than 1 billion paid subscribers across its Services portfolio. App Store continues to grab the attention of prominent developers from around the world, helping the company to offer exciting new apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ has been gaining recognition due to its strong content. Apple’s impressive run at the award shows has been instrumental in driving recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon (AMZN - Free Report) Prime Video, Netflix (NFLX - Free Report) and Disney’s (DIS - Free Report) Disney+.
Consumption of Apple TV+ doubled in 2023, per a report from Deadline cited by 9TO5 Mac. Total viewership surged 42% year over year.
Movies and shows like The Family Plan, The Morning Show, Lessons in Chemistry, Messi Meets America, Slow Horses, For All Mankind, Silo, Hijack, Bad Sisters and Ted Lasso drove consumption.
However, higher viewership has not essentially turned into a market share leadership for Apple TV+. According to 9TO5Mac, which cited a JustWatch report, Amazon Prime Video was #1 in terms of market share (22%) in the United States, trailed by Netflix (21%). Max, Disney+ and Hulu had 15%,12% and 11% market share, respectively. Apple TV+’s market share increased from 6% to 7%.
Our estimate for fiscal first-quarter Services net sales is pegged at $22.65 billion, indicating 9.1% year-over-year growth.
Currently, Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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https://www.zacks.com/stock/news/2217291/apple-aapl-to-report-q1-earnings-whats-in-the-offing?
| 2024-01-30T03:06:53Z
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Advanced Micro Devices (AMD - Free Report) is expected to report growth in the Client segment, both on a year-over-year and sequential basis, in fourth-quarter 2023 earnings, set to be released on Jan 30.
AMD’s fourth-quarter top-line growth is expected to have benefited from an improving PC market.
Per Gartner’s latest report, global PC shipments totaled 63.3 million units in the fourth quarter of 2023, up 0.3% year over year.
The reintroduction of the Ryzen Threadripper 7000 Series processors for high-end desktop users is noteworthy. AMD also introduced its flagship laptop graphics processor, Radeon RX 7900M, the fastest AMD Radeon GPU ever developed for laptops.
Client revenues are expected to have increased 19.4% year over year to $1.18 billion, per our model.
Click here to know how AMD’s overall fourth-quarter performance is likely to be.
Diversified Product Portfolio: Key to AMD’s Prospects
AMD benefits from a robust product portfolio and expanding partner base. It continues to strengthen its footprint in the enterprise data center arena by leveraging the power of fourth-generation EPYC CPUs.
AMD, along with its partners, continues to offer solutions that enable greater data center consolidation. Its partnerships with the likes of Dell Technologies (DELL - Free Report) , Microsoft (MSFT - Free Report) , Amazon’s (AMZN - Free Report) cloud arm Amazon Web Services, Alibaba and Oracle have been key catalysts.
Cloud providers like Microsoft, Amazon, Alibaba and Oracle have already deployed Genoa. Microsoft Azure announced the first Genoa-X HPC instances that offer more than five times higher performance in technical computing workloads compared to their prior generation.
Dell is leveraging AMD EPYC fourth-generation CPUs in its latest PowerEdge C6615 server. In combination with OpenManage Enterprise software, Dell servers enable cloud service providers to intelligently monitor their systems and deliver more efficient computing services.
Moreover, AMD is expanding its data center footprint with the new Instinct MI300X accelerator. It combines CDNA 3 architecture and Zen 4 CPUs to deliver robust performance for HPC and AI workloads.
Microsoft is using AMD’s Instinct accelerator portfolio in its new Azure ND MI300x v5 virtual machine series, optimized for AI workloads.
Our model estimates for Data Center revenues are pegged at $2.27 billion, indicating a year-over-year increase of 37.3%.
AMD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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https://www.zacks.com/stock/news/2217293/will-solid-client-datacenter-aid-amds-q4-earnings-growth?
| 2024-01-30T03:07:00Z
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Mondelez International, Inc. (MDLZ - Free Report) is likely to register top- and bottom-line growth when it reports fourth-quarter 2023 earnings on Jan 30. The Zacks Consensus Estimate for revenues is pegged at $9.3 billion, suggesting a rise of almost 7% from the prior-year quarter’s reported figure. The consensus mark for 2023 revenues is pegged at almost $36 billion, suggesting growth of 14.3% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has moved up by a penny to 78 cents per share in the past seven days, suggesting 6.9% growth from the figure reported in the year-ago period quarter. The consensus mark for 2023 earnings is pegged at $3.25 per share, indicating a rise of 10.2% from the prior-year period’s level.
Mondelez has a trailing four-quarter earnings surprise of 7.3%, on average. In the last reported quarter, the company delivered an earnings surprise of 5.1%.
Things To Consider
Continuous reinvestments in its brands and capabilities (such as digital), along with impressive revenue growth management and portfolio reshaping efforts, have been working in Mondelez’s favor. The company has been benefiting from the contributions of its prudent acquisitions, especially in the key snacking space.
For 2023, management expects 2023 organic net revenue growth of 14-15%. Our model suggests the metric to grow 14.5% in 2023. The company anticipates adjusted earnings per share (EPS) growth on a constant currency basis of more than 16%.
The company has been expanding its snacking category like chocolates and biscuits, which continue to drive growth. We expect revenues in the chocolate and biscuit categories to grow at 8.2% and 13.4%, respectively, for 2023. Management remains encouraged by the underlying emerging market strength. Our model suggests emerging market revenue growth of 6.8% in the fourth quarter and 14.7% in 2023.
However, Mondelez has been battling cost inflation for a while now. In its last earnings call, management highlighted that it expects a double-digit increase in inflation for 2023. In addition, unfavorable foreign currency movements are likely to affect net revenues by nearly 4% and adjusted EPS by 15 cents in 2023.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Mondelez this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McCormick carries a Zacks Rank #3 and has an Earnings ESP of +0.62%.
Other Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these, too, have the right elements to beat on earnings this time.
Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank of 2. The company is slated to witness top-and-bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.5 billion, suggesting growth of 5.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings of 64 cents per share suggests an increase of 3.2% from the year-ago quarter’s levels. CHD delivered an earnings surprise of 10.1%, on average, in the trailing four quarters.
Coca-Cola (KO - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank of 2. KO is likely to register top and bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, which suggests growth of 4.8% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days, at 48 cents per share. The consensus estimate suggests 6.7% earnings growth from the year-ago quarter’s reported number. KO has delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #3. THS is likely to record top and bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating a 7% decline from the prior-year quarter’s actual. The consensus mark for earnings is pinned at 71 cents per share, indicating a 27.6% decline from the figure reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
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https://www.zacks.com/stock/news/2217294/mondelez-mdlz-q4-earnings-coming-up-factors-to-consider
| 2024-01-30T03:07:06Z
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8x8 (EGHT - Free Report) is slated to release its third-quarter fiscal 2024 results on Jan 31.
For the fiscal third quarter, revenues are expected between $180 million and $186 million.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $183.42 million, suggesting a 0.53% year-over-year decline.
The consensus mark for earnings is pegged at 10 cents per share, unchanged in the past 30 days. The projection suggests a 42.86% rise from the figure reported in the year-ago quarter.
EGHT earnings beat the Zacks Consensus Estimate in three of the trailing four quarters but missed one, delivering an earnings surprise of 54.81% on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced Q3 Performance
EGHT's third quarter fiscal 2024 results are expected to have benefited from the sequential increase in service revenue, particularly in the CPaaS and CCaaS segments.
The company's initiatives to broaden its product portfolio across the segments mentioned above, to enable the adoption of its innovative solutions by both existing and new customers, is expected to have been a tailwind.
In line with its commitment to expansion, EGHT is implementing initiatives such as the retooling of its CPaaS business. The introduction of advanced products like AI-powered intelligent customer assistants is likely to have aided 8x8’s top-line growth.
For the fiscal third quarter of 2024, EGHT projects service revenue to fall within the range of $173 million to $178 million.
Noteworthy innovations like Conversational IQ for UCaaS and the integration of AI technologies like Whisper for transcription and translation are expected to have made a positive contribution to EGHT’s third-quarter performance.
However, EGHT’s growing challenges in customer retention, stemming down-sell and attrition in the Fuze customer base, are expected to have affected recurring revenues and customer count in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.
EGHT has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Meta Platform (META - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Platform is set to announce fourth-quarter 2023 results on Feb 1. META’s shares are up 23.7% in the past six months.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have gained 8.9% in the past six months.
Bill Holdings (BILL - Free Report) has an Earnings ESP of +6.17% and a Zacks Rank #3.
Bill Holdings is set to announce second-quarter fiscal 2024 results on Feb 8. BILL’s shares have declined 40.7% in the past six months.
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8x8 Inc (EGHT) - free report >>
Twilio Inc. (TWLO) - free report >>
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https://www.zacks.com/stock/news/2217307/8x8-eght-to-report-q3-earnings-whats-in-the-offing?
| 2024-01-30T03:07:12Z
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Post Holdings, Inc. (POST - Free Report) is likely to register top-line growth when it reports first-quarter 2024 earnings on Feb 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.9 billion, suggesting 22.4% growth from the prior-year quarter’s reported figure.
However, the bottom line is likely to decline year over year in the fiscal first quarter. The consensus estimate for quarterly earnings per share (EPS) has moved down by a penny in the past seven days to $1.06. The projection indicates a decline of 1.9% from the year-ago period’s figure.
Post Holdings has a trailing four-quarter earnings surprise of 59.2%, on average. In the last reported quarter, the company delivered an earnings surprise of 18.1%.
Things To Note
Post Holdings has been benefiting from its focus on acquisitions, which is helping it expand its customer base. The company is on track with effective pricing actions to counter inflationary headwinds. In this regard, the company’s recently-acquired Perfection Pet Foods business is likely to have aided the top line.
The company is also likely to have gained from strength in the Post Consumer Brands segment in the quarter under discussion. The Zacks Consensus Estimate for fiscal first-quarter sales at the Post Consumer Brands segment is pegged at $951 million, suggesting a year-over-year increase of 74.5%.
Yet, Post Holdings is bearing the brunt of supply-chain bottlenecks. On its last earnings call, management stated that although the supply-chain scenario and customer order fill rates have been improving, there is still significant room for enhancement. Cost inflation is another hurdle, although it is moderating.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Post Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Post Holdings carries a Zacks Rank #3 and has an Earnings ESP of +1.70%.
Other Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these have the right elements to beat on earnings this time.
Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank of 2. The company is slated to witness top-and-bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.5 billion, suggesting growth of 5.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings of 64 cents per share suggests an increase of 3.2% from the year-ago quarter’s levels. CHD delivered an earnings surprise of 10.1%, on average, in the trailing four quarters.
Coca-Cola (KO - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank of 2. KO is likely to register top- and bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, suggesting growth of 4.8% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days, at 48 cents per share. The consensus estimate suggests 6.7% earnings growth from the year-ago quarter’s reported number. KO has delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #3. THS is likely to record top and bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating a 7% decline from the prior-year quarter’s actual. The consensus mark for earnings is pinned at 71 cents per share, calling for a 27.6% decline from that reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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CocaCola Company (The) (KO) - free report >>
Church & Dwight Co., Inc. (CHD) - free report >>
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https://www.zacks.com/stock/news/2217308/things-to-note-before-post-holdings-post-q1-earnings
| 2024-01-30T03:07:18Z
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For the quarter ended December 2023, Sierra Bancorp (BSRR - Free Report) reported revenue of $35.92 million, down 3% over the same period last year. EPS came in at $0.43, compared to $0.47 in the year-ago quarter.
The reported revenue represents a surprise of +2.18% over the Zacks Consensus Estimate of $35.15 million. With the consensus EPS estimate being $0.70, the EPS surprise was -38.57%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Sierra Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net Interest Margin [%]: 3.3% compared to the 3.3% average estimate based on three analysts.
- Efficiency ratio: 67.1% versus the three-analyst average estimate of 63%.
- Total Non-performing loans: $7.99 million versus $1.79 million estimated by two analysts on average.
- Net Charge-Offs (% of Average Loans): 0.2% compared to the 0.1% average estimate based on two analysts.
- Average Interest-Earning Assets: $3.42 billion versus the two-analyst average estimate of $3.47 billion.
- Total Nonperforming Assets: $7.99 million compared to the $1.64 million average estimate based on two analysts.
- Total non-interest revenue: $8.05 million compared to the $7.71 million average estimate based on three analysts.
- Net Interest Income: $27.87 million compared to the $27.80 million average estimate based on three analysts.
Shares of Sierra Bancorp have returned -2.9% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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https://www.zacks.com/stock/news/2217309/sierra-bancorp-bsrr-q4-earnings-taking-a-look-at-key-metrics-versus-estimates
| 2024-01-30T03:07:25Z
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eHealth (EHTH - Free Report) shares ended the last trading session 20.8% higher at $6.74. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 37.2% loss over the past four weeks.
EHTH recently announce its solid fourth quarter and full year 2023 preliminary results. Medicare Advantage approved members as well as Total Medicare approved members increased year over year in the fourth quarter of 2023. GAAP net income for the fourth quarter of 2023 is expected to be in the range of $47 to $52 million. GAAP net loss for 2023 is expected to be in the range of $32 to $27 million as compared to the company's guidance of GAAP net loss of $46 to $26 million.
Total revenue for the fourth quarter of 2023 is expected to be in the range of $241 to $249 million. Total revenue for the year ended December 31, 2023 is expected to be in the range of $446 to $454 million, outperforming the company’s guidance of $439 to $459 million.
Operating cash outflow for 2023 is expected to be approximately $7 million as compared to the company's guidance of outflow of $15 to $30 million. The outperformance was driven by driven by favorable commission collections from existing member cohorts as well as disciplined approach to operating costs.
This provider of internet-based heath insurance agency services is expected to post quarterly earnings of $1.94 per share in its upcoming report, which represents a year-over-year change of +70.2%. Revenues are expected to be $248.13 million, up 26.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For eHealth, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EHTH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
eHealth is a member of the Zacks Insurance - Brokerage industry. One other stock in the same industry, Erie Indemnity (ERIE - Free Report) , finished the last trading session 2.3% higher at $345.23. ERIE has returned 1% over the past month.
Erie Indemnity's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.13. Compared to the company's year-ago EPS, this represents a change of +70.4%. Erie Indemnity currently boasts a Zacks Rank of #3 (Hold).
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https://www.zacks.com/stock/news/2217310/ehealth-ehth-surges-208-is-this-an-indication-of-further-gains?
| 2024-01-30T03:07:31Z
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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Banco Santander (SAN - Free Report) and Sumitomo Mitsui (SMFG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Banco Santander is sporting a Zacks Rank of #2 (Buy), while Sumitomo Mitsui has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SAN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SAN currently has a forward P/E ratio of 5.12, while SMFG has a forward P/E of 11.77. We also note that SAN has a PEG ratio of 0.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SMFG currently has a PEG ratio of 1.50.
Another notable valuation metric for SAN is its P/B ratio of 0.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SMFG has a P/B of 0.71.
Based on these metrics and many more, SAN holds a Value grade of A, while SMFG has a Value grade of C.
SAN sticks out from SMFG in both our Zacks Rank and Style Scores models, so value investors will likely feel that SAN is the better option right now.
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https://www.zacks.com/stock/news/2217311/san-or-smfg-which-is-the-better-value-stock-right-now?
| 2024-01-30T03:07:37Z
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Investors looking for stocks in the Technology Services sector might want to consider either Vontier Corporation (VNT - Free Report) or Veralto (VLTO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Vontier Corporation is sporting a Zacks Rank of #2 (Buy), while Veralto has a Zacks Rank of #3 (Hold). This means that VNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VNT currently has a forward P/E ratio of 11, while VLTO has a forward P/E of 24.23. We also note that VNT has a PEG ratio of 1.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VLTO currently has a PEG ratio of 4.69.
Another notable valuation metric for VNT is its P/B ratio of 6.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VLTO has a P/B of 18.18.
These are just a few of the metrics contributing to VNT's Value grade of A and VLTO's Value grade of C.
VNT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VNT is likely the superior value option right now.
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https://www.zacks.com/stock/news/2217312/vnt-vs-vlto-which-stock-should-value-investors-buy-now?
| 2024-01-30T03:07:44Z
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Investors looking for stocks in the Utility - Water Supply sector might want to consider either Veolia Environnement SA (VEOEY - Free Report) or American Water Works (AWK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Veolia Environnement SA has a Zacks Rank of #1 (Strong Buy), while American Water Works has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that VEOEY likely has seen a stronger improvement to its earnings outlook than AWK has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VEOEY currently has a forward P/E ratio of 7.49, while AWK has a forward P/E of 23.82. We also note that VEOEY has a PEG ratio of 0.90. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AWK currently has a PEG ratio of 3.07.
Another notable valuation metric for VEOEY is its P/B ratio of 1.48. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AWK has a P/B of 2.42.
These metrics, and several others, help VEOEY earn a Value grade of A, while AWK has been given a Value grade of D.
VEOEY has seen stronger estimate revision activity and sports more attractive valuation metrics than AWK, so it seems like value investors will conclude that VEOEY is the superior option right now.
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https://www.zacks.com/stock/news/2217313/veoey-or-awk-which-is-the-better-value-stock-right-now?
| 2024-01-30T03:07:50Z
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Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of OSI Systems (OSIS - Free Report) and Universal Display Corp. (OLED - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
OSI Systems has a Zacks Rank of #2 (Buy), while Universal Display Corp. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that OSIS likely has seen a stronger improvement to its earnings outlook than OLED has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
OSIS currently has a forward P/E ratio of 16.50, while OLED has a forward P/E of 38.38. We also note that OSIS has a PEG ratio of 1.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OLED currently has a PEG ratio of 2.17.
Another notable valuation metric for OSIS is its P/B ratio of 2.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, OLED has a P/B of 6.01.
These metrics, and several others, help OSIS earn a Value grade of A, while OLED has been given a Value grade of C.
OSIS has seen stronger estimate revision activity and sports more attractive valuation metrics than OLED, so it seems like value investors will conclude that OSIS is the superior option right now.
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https://www.zacks.com/stock/news/2217314/osis-vs-oled-which-stock-is-the-better-value-option?
| 2024-01-30T03:07:56Z
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Investors interested in stocks from the Medical - HMOs sector have probably already heard of Centene (CNC - Free Report) and Humana (HUM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Centene has a Zacks Rank of #2 (Buy), while Humana has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that CNC likely has seen a stronger improvement to its earnings outlook than HUM has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CNC currently has a forward P/E ratio of 10.94, while HUM has a forward P/E of 12.19. We also note that CNC has a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HUM currently has a PEG ratio of 1.01.
Another notable valuation metric for CNC is its P/B ratio of 1.55. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HUM has a P/B of 2.73.
These metrics, and several others, help CNC earn a Value grade of A, while HUM has been given a Value grade of C.
CNC stands above HUM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CNC is the superior value option right now.
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https://www.zacks.com/stock/news/2217315/cnc-vs-hum-which-stock-is-the-better-value-option?
| 2024-01-30T03:08:03Z
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Investors interested in stocks from the Medical - Drugs sector have probably already heard of Grifols (GRFS - Free Report) and Zoetis (ZTS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Grifols has a Zacks Rank of #2 (Buy), while Zoetis has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GRFS likely has seen a stronger improvement to its earnings outlook than ZTS has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GRFS currently has a forward P/E ratio of 6.88, while ZTS has a forward P/E of 32.07. We also note that GRFS has a PEG ratio of 0.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZTS currently has a PEG ratio of 2.80.
Another notable valuation metric for GRFS is its P/B ratio of 0.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ZTS has a P/B of 17.33.
These metrics, and several others, help GRFS earn a Value grade of A, while ZTS has been given a Value grade of D.
GRFS stands above ZTS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GRFS is the superior value option right now.
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https://www.zacks.com/stock/news/2217316/grfs-or-zts-which-is-the-better-value-stock-right-now?
| 2024-01-30T03:08:09Z
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU - Free Report) and Constellation Brands (STZ - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Cervecerias Unidas has a Zacks Rank of #2 (Buy), while Constellation Brands has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CCU likely has seen a stronger improvement to its earnings outlook than STZ has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CCU currently has a forward P/E ratio of 11.36, while STZ has a forward P/E of 20.99. We also note that CCU has a PEG ratio of 0.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. STZ currently has a PEG ratio of 1.94.
Another notable valuation metric for CCU is its P/B ratio of 1.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, STZ has a P/B of 4.65.
These are just a few of the metrics contributing to CCU's Value grade of A and STZ's Value grade of D.
CCU stands above STZ thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCU is the superior value option right now.
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https://www.zacks.com/stock/news/2217317/ccu-vs-stz-which-stock-is-the-better-value-option?
| 2024-01-30T03:08:18Z
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Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Dick's Sporting Goods (DKS - Free Report) or Tractor Supply (TSCO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Dick's Sporting Goods has a Zacks Rank of #2 (Buy), while Tractor Supply has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DKS has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DKS currently has a forward P/E ratio of 12.37, while TSCO has a forward P/E of 21.95. We also note that DKS has a PEG ratio of 2.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TSCO currently has a PEG ratio of 3.32.
Another notable valuation metric for DKS is its P/B ratio of 5.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TSCO has a P/B of 11.66.
These metrics, and several others, help DKS earn a Value grade of A, while TSCO has been given a Value grade of C.
DKS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DKS is likely the superior value option right now.
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https://www.zacks.com/stock/news/2217318/dks-vs-tsco-which-stock-is-the-better-value-option?
| 2024-01-30T03:08:25Z
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Investors interested in Manufacturing - Electronics stocks are likely familiar with AZZ (AZZ - Free Report) and ABB (ABBNY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
AZZ and ABB are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AZZ has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AZZ currently has a forward P/E ratio of 14.52, while ABBNY has a forward P/E of 20.65. We also note that AZZ has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABBNY currently has a PEG ratio of 3.33.
Another notable valuation metric for AZZ is its P/B ratio of 1.70. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ABBNY has a P/B of 5.82.
Based on these metrics and many more, AZZ holds a Value grade of A, while ABBNY has a Value grade of C.
AZZ stands above ABBNY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AZZ is the superior value option right now.
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https://www.zacks.com/stock/news/2217319/azz-vs-abbny-which-stock-is-the-better-value-option?
| 2024-01-30T03:08:31Z
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Investors with an interest in Consumer Products - Staples stocks have likely encountered both Ahold NV (ADRNY - Free Report) and Kimberly-Clark (KMB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Ahold NV has a Zacks Rank of #2 (Buy), while Kimberly-Clark has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ADRNY likely has seen a stronger improvement to its earnings outlook than KMB has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ADRNY currently has a forward P/E ratio of 10.11, while KMB has a forward P/E of 17.74. We also note that ADRNY has a PEG ratio of 3.43. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. KMB currently has a PEG ratio of 3.81.
Another notable valuation metric for ADRNY is its P/B ratio of 1.61. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KMB has a P/B of 38.34.
These are just a few of the metrics contributing to ADRNY's Value grade of A and KMB's Value grade of C.
ADRNY stands above KMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADRNY is the superior value option right now.
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https://www.zacks.com/stock/news/2217320/adrny-or-kmb-which-is-the-better-value-stock-right-now?
| 2024-01-30T03:08:37Z
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Aflac Incorporated (AFL - Free Report) is slated to report fourth-quarter 2023 results on Jan 31, 2024, after the closing bell.
Q4 Estimates
The Zacks Consensus Estimate for Aflac’s fourth-quarter earnings per share is pegged at $1.47, which indicates an improvement of 14% from the prior-year quarter’s reported figure.
The consensus mark for revenues is $4.4 billion, suggesting 10.8% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Aflac boasts an impressive earnings surprise history. Its bottom line beat estimates in each of the trailing four quarters, the average surprise being 14.50%. This is depicted in the chart below:
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for Aflac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Earnings ESP: Aflac has an Earnings ESP of +0.57% because the Most Accurate Estimate of $1.48 is pegged higher than the Zacks Consensus Estimate of $1.47. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: AFL carries a Zacks Rank of 2.
Factors to Note
Results in the Japan segment are likely to have benefited on the back of higher sales fetched by its cancer insurance product. However, limited pay products attaining paid-up status are expected to have exerted strain on the unit’s net premiums earned in the fourth quarter.
The Zacks Consensus Estimate for net premiums earned in the Japan business is pegged at $1.9 billion, which indicates a decline of 12.3% from the prior-year quarter’s reported figure.
Net investment income in the Japan segment is expected to have gained from increased returns from Aflac’s alternative investment portfolio in the to-be-reported quarter. The consensus mark for net investment income is $636 million, suggesting 0.6% growth from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for the unit’s adjusted revenues is pegged at $2.5 billion, which implies an 8.4% fall from the year-ago quarter’s reported number. Expense ratio in the Japan business is likely to have witnessed an improvement in the fourth quarter, attributable to cost management efforts and expense allowance from reinsurance transactions. The consensus mark for adjusted expense ratio is 21.4%, which indicates an improvement of 150 basis points year over year.
AFL’s U.S. business is expected to have gained from higher sales and strong persistency rates in the quarter under review, which are likely to have contributed to improved net premiums earned. Consistent productivity improvements and the pursuit of growth initiatives across group life and disability, network dental and vision business lines are also likely to have contributed to the company’s overall net premiums earned.
The Zacks Consensus Estimate for net premiums earned in the U.S. segment is pegged at $1.4 billion, which indicates an improvement of 3.2% from the prior-year quarter’s reported figure.
The segment’s top line is also likely to have been aided by growth in adjusted net investment income in the fourth quarter, which in turn, is expected to have stemmed from improved yields from the fixed and floating rate portfolios of Aflac. The consensus mark for adjusted net investment income is $204 million, suggesting 6.3% growth from the year-ago quarter’s reported number.
The consensus mark for the unit’s adjusted revenues is pegged at $1.7 billion, which hints toward a 3.1% improvement from the year-ago quarter’s reported figure.
In the quarter under review, the margins of Aflac are likely to have received an impetus from lower benefits and claims, and a decline in acquisition and operating expenses.
Other Stocks to Consider
Here are some other companies from the insurance space, which according to our model, also have the right combination of elements to beat on earnings this time around:
CNO Financial Group, Inc. (CNO - Free Report) currently has an Earnings ESP of +8.24% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CNO’s fourth-quarter 2023 earnings is pegged at 85 cents per share, suggesting a 51.8% surge from the year-ago quarter’s reported number. The consensus mark for revenues is $934.1 million, suggesting a 4.1% fall from the prior-year quarter’s figure.
Primerica, Inc. (PRI - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for PRI’s fourth-quarter 2023 earnings is $4.26 per share, indicating a 22.1% improvement from the prior-year quarter’s reported figure.
Primerica’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.84%.
Everest Group, Ltd. (EG - Free Report) currently has an Earnings ESP of +1.18% and a Zacks Rank of 3. The Zacks Consensus Estimate for EG’s fourth-quarter 2023 earnings is pegged at $14.63 per share, which implies a 19.8% rise from the prior-year quarter’s reported figure.
Everest Group’s earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 24.50%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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CNO Financial Group, Inc. (CNO) - free report >>
Aflac Incorporated (AFL) - free report >>
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https://www.zacks.com/stock/news/2217321/can-aflacs-afl-q4-earnings-beat-on-strong-us-business?
| 2024-01-30T03:08:43Z
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Amid the growing demand for its premium properties, The Macerich Company (MAC - Free Report) recently announced that its Twenty Ninth Street open-air shopping center in central Boulder, CO, will welcome a healthy lifestyle brand, Life Time. The move is likely to drive more footfalls at this well-known retail destination, which bodes well for Macerich.
This Life Time’s location at 1821 30th St., next to Google’s Boulder campus and just minutes away from the University of Colorado Boulder, is expected to open early next year. The 40,000-square-foot space will undergo transformation through a significant renovation to Life Time Boulder and replace the former Colorado Athletic Club.
Per Bob Beffa, senior vice president, Real Estate, Macerich, “With three high-performing Life Time locations already operating at other top regional town centers in our portfolio, we can say with confidence that they are a terrific operator, and their amenity-rich athletic facilities are top-notch.”
Other MAC properties in which Life Time conducts operations include its most recent opening at Broadway Plaza in Walnut Creek, CA, as well as Biltmore Fashion Park in Phoenix and Scottsdale Fashion Square in Scottsdale, AZ. Life Time currently operates at six destinations in Colorado, with its newest opening, Life Time Denver West, scheduled to open in Wheat Ridge in the first half of 2024.
The increase in consumers’ preference for an in-person shopping experience following the pandemic downtime has been driving the recovery in the retail real estate industry. Against this backdrop, Macerich’s well-located portfolio has experienced healthy leasing activity over the past few quarters and an improvement in tenant sales per square foot. In the first nine months of 2023, MAC signed leases encompassing 3.14 million square feet. This indicates a 10% increase in square footage signed from the prior-year period.
Moreover, solid tenant demand has helped the company backfill its spaces, which is encouraging. MAC is also making concerted redevelopment efforts to boost the quality of its retail properties, lure tenants and drive more footfall.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 70.9% compared with the industry's growth of 18.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Equinix (EQIX - Free Report) and Tanger Inc. (SKT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for EQIX’s 2023 funds from operations (FFO) per share is pegged at $32.07, suggesting year-over-year growth of 8.5%.
The Zacks Consensus Estimate for Tanger’s 2023 FFO per share stands at $1.94, indicating an increase of 6% from the year-ago reported figure.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
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Equinix, Inc. (EQIX) - free report >>
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https://www.zacks.com/stock/news/2217322/macerich-mac-to-house-life-time-at-twenty-ninth-street-boulder
| 2024-01-30T03:08:50Z
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CMS Energy (CMS) to Report Q4 Earnings: What's in the Cards?
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CMS Energy Corporation (CMS - Free Report) is slated to report fourth-quarter and 2023 results on Feb 1, before the opening bell.
In the last reported quarter, the company posted a negative earnings surprise of 3.17%. However, CMS has a trailing four-quarter average earnings surprise of 2.90%.
Factors to Note
For major parts of the fourth quarter, CMS Energy’s service territories witnessed a warmer-than-normal weather pattern, accompanied by below-normal precipitation. However, in November, CMS’ some customers experienced snow falls. So, the overall impact of weather on its quarterly top-line performance is expected to have been moderate.
Improving electricity demand and favorable rate hikes witnessed in the recent past are likely to have contributed favorably to the company’s overall revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $2.46 billion, indicating an 8.1% increase from the year-ago quarter’s reported figure.
During the fourth quarter, solid revenue expectations and the implementation of numerous cost reduction initiatives by the company are likely to have boosted its overall earnings.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.04 per share, indicating an improvement of 73.3% from the prior-year quarter’s reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for CMS Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here.
Earnings ESP: The company’s Earnings ESP is +0.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CMS carries a Zacks Rank #3 at present.
Other Stocks to Consider
Here are three other Utility players that, too, have the right combination of elements to come up with an earnings beat this reporting cycle.
The Zacks consensus estimate for IDA’s fourth-quarter sales is pegged at $429.84 million, indicating growth of 1.6% from that recorded in the prior-year quarter. The consensus mark for earnings, pegged at 60 cents per share, implies a decline of 27.7% from year-ago quarter.
NiSource (NI - Free Report) currently has an Earnings ESP of +1.92% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 52 cents per share, implying a 4% increase from that reported in the prior-year quarter.
The consensus mark for NI’s sales is pinned at $1.59 billion. The company delivered a four-quarter average negative earnings surprise of 5.59%.
The Southern Company (SO - Free Report) has an Earnings ESP of +2.95% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter earnings is pinned at 59 cents per share, indicating a 126.9% increase year over year.
The Southern Company delivered a four-quarter average earnings surprise of 8.49%. The consensus mark for SO’s fourth-quarter sales is pegged at $7.74 billion, indicating growth of 9.8% from that recorded in the prior-year quarter.
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https://www.zacks.com/stock/news/2217323/cms-energy-cms-to-report-q4-earnings-whats-in-the-cards?
| 2024-01-30T03:08:56Z
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General Mills, Inc. (GIS - Free Report) , based in Minneapolis, MN, is gearing up to introduce a series of products across various segments, including cereals, yogurt, soup and snack categories. These innovations, coupled with strong brand-building efforts, are expected to drive market share growth and cater to evolving consumer preferences.
The company is maneuvering through a challenging market environment, with its prospects being a key interest for investors and stakeholders. Management is focused on maintaining consistent earnings and growth in the forthcoming quarters despite facing volume declines in segments, such as snacks and the pet business.
What Does the Future Hold?
GIS continues working to reinvigorate struggling brands like Progresso soup and Yoplait yogurt through innovation and more effective marketing. The company projects EPS growth of 4-5% for the remaining fiscal year, aided by accelerated productivity savings, lower incentive compensation and an aggressive stock buyback program, despite uncertainty around macroeconomic environment.
While the company faces a decline in sales volumes in certain areas, it expects this trend to stabilize in the upcoming quarters. With supply-chain conditions normalizing, management believes it can sustain a 4% rate of Holistic Margin Management savings going forward. Additional efforts to control costs include SKU rationalization and applying automation and AI technology in manufacturing. The company remains focused on earnings growth though it battles volume headwinds.
Image Source: Zacks Investment Research
Navigating Volume Growth Softness
The company is looking beyond its traditional offerings to explore new product lines and market segments aiming to tap into emerging consumer trends and preferences. This shift toward diversification aims to spark consumer interest and serves as a hedge against the volatility in specific product categories.
In addition to product diversification, General Mills is also placing a significant emphasis on enhancing operational efficiencies. This is being achieved through a continuous review and optimization of their product lines, ensuring that each segment contributes positively to overall business.
Moreover, the company is investing in technological advancements, particularly in areas like artificial intelligence, to streamline production processes. These technological integrations improve efficiency and contribute to cost savings, thus helping GIS maintain its profitability in a challenging volume growth environment. Through these concerted efforts in diversification and technological advancement, General Mills is strategically positioning itself to overcome the current volume growth softness and sustain its market position.
The Zacks Consensus Estimate of current-year sales suggests a decline of 1% from the year-ago levels. The consensus estimate for earnings indicates growth of 4.4% from the prior-year levels. However, we expect both the metrics to improve in the next fiscal year.
The Zacks Rank #3 (Hold) stock has fallen 13.7% in the past three months compared with the industry’s decline of 6.3%. Moreover, it has underperformed S&P 500’s growth by 6.8%. Despite the recent underperformance, investors can accumulate this stock due to its latent value potential versus the broader market's growth.
Better-Ranked Stocks to Consider
Ingredion (INGR - Free Report) , an ingredients solutions provider specializing in nature-based sweeteners, starches, and nutrition ingredients, currently carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Ingredion’s current financial-year sales and earnings suggests growth of 5% and 22%, respectively, from the year-ago actuals.
BRF S.A. (BRFS - Free Report) , a Brazil-based food company focusing on the production and sale of poultry, pork, beef cuts, milk, dairy products and processed food products, carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings implies growth of 5.3% and 68% respectively, from the year-ago actuals.
Flowers Foods (FLO - Free Report) , which produces and markets packaged bakery food products in the United States, currently carries a Zacks Rank #2. FLO delivered an average earnings surprise of 6.8% in the trailing four quarters.
The Zacks Consensus Estimate Flowers Food’s current financial-year sales indicates growth of 6% from the year-ago reported figures.
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https://www.zacks.com/stock/news/2217324/general-mills-gis-prioritizes-profit-amid-volume-challenges
| 2024-01-30T03:09:02Z
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
BankUnited, Inc. In Focus
Headquartered in Miami Lakes, BankUnited, Inc. (BKU - Free Report) is a Finance stock that has seen a price change of -7.8% so far this year. The company is paying out a dividend of $0.27 per share at the moment, with a dividend yield of 3.61% compared to the Banks - Major Regional industry's yield of 3.73% and the S&P 500's yield of 1.6%.
In terms of dividend growth, the company's current annualized dividend of $1.08 is up 1.9% from last year. Over the last 5 years, BankUnited, Inc. has increased its dividend 3 times on a year-over-year basis for an average annual increase of 5.67%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. BankUnited, Inc.'s current payout ratio is 38%, meaning it paid out 38% of its trailing 12-month EPS as dividend.
BKU is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $2.96 per share, which represents a year-over-year growth rate of 4.59%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that BKU is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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https://www.zacks.com/stock/news/2217325/why-bankunited-inc-bku-is-a-great-dividend-stock-right-now
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Colgate-Palmolive in Focus
Based in New York, Colgate-Palmolive (CL - Free Report) is in the Consumer Staples sector, and so far this year, shares have seen a price change of 3.91%. Currently paying a dividend of $0.48 per share, the company has a dividend yield of 2.32%. In comparison, the Soap and Cleaning Materials industry's yield is 2.44%, while the S&P 500's yield is 1.6%.
In terms of dividend growth, the company's current annualized dividend of $1.92 is up 0.5% from last year. Over the last 5 years, Colgate-Palmolive has increased its dividend 5 times on a year-over-year basis for an average annual increase of 2.88%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Colgate-Palmolive's current payout ratio is 59%. This means it paid out 59% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CL expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $3.47 per share, representing a year-over-year earnings growth rate of 7.43%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CL is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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https://www.zacks.com/stock/news/2217326/why-colgate-palmolive-cl-is-a-top-dividend-stock-for-your-portfolio
| 2024-01-30T03:09:14Z
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Juniper Networks, Inc. (JNPR - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 30, after the closing bell. The company delivered an earnings surprise of 6.54%, on average, in the trailing four quarters. In the last reported quarter, it delivered an earnings surprise of 9.09%.
The leading provider of networking solutions and communication devices is expected to witness a top-line contraction year over year, owing to fierce competition, soft demand trends in several verticals and macroeconomic headwinds. However, solid demand for AI-driven network solutions and the introduction of cutting-edge AI-native features in its security portfolio are tailwinds.
Factors at Play
During the quarter, Juniper expanded its industry-leading Connected Security portfolio with a range of advanced features. These state-of-the-art features encompass AI-Predictive Threat Prevention, which enables rapid threat detection and enhances malware prevention capabilities. The strengthening of its portfolio is likely to have improved commercial prospects and will likely have a favorable impact on fourth-quarter results.
In the to-be-reported quarter, the City of Las Vegas opted to deploy Juniper’s Cloud Metro solution to establish a robust private 5G network citywide. The ACX7024 Cloud Metro routers and EX4300 switches will serve as the backbone for an advanced, open and adaptable network, seamlessly connecting devices from multiple end users and supporting third-party applications.
DNA, a leading telecommunications company in Finland, has opted to deploy Juniper Apstra Solution to automate data center infrastructure. Juniper also provided the QFX Series switches for DNA’s Telco cloud sites across Finland.
Arirang TV, a Korea-based international English-language broadcasting network, has also selected Juniper QFX and EX series switches to modernize its infrastructure. Digital Edge, a prominent digital infrastructure provider in Asia, opted to deploy the complete suite of Juniper AI Driven Networking products to expedite the expansion of the digital ecosystem in the region. These developments are likely to have supported Juniper’s top line during the quarter.
In the quarter under review, Vodafone has leveraged Juniper wired and wireless access solutions to build an AI-powered SD-LAN (Software Defined Local Area Networking) managed service. The SD-LAN services integrated with Juniper's advanced AI for IT operations offer zero-touch provisioning that speeds up onboarding and enhances resiliency by swiftly detecting problems in the system. This is likely to have had a positive impact on Juniper’s fourth-quarter earnings.
However, soft demand for Cloud Ready Data Centers and Automated WAN solutions is likely to have a negative impact on net sales. Juniper faces severe competition in each of the markets it serves, especially from industry leader Cisco Systems. This is likely to have impacted its profitability.
Our estimate for revenues from the Cloud vertical is pegged at $262.6 million, implying a 31% year-over-year decline. For the Service Provider segment, our revenue estimate stands at $379.1 million. Our estimate for revenues from the Enterprise business is pegged at $758.6 million, implying 26.6% year-over-year growth.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,407 million, indicating a decline from the year-ago quarter’s reported figure of $1,449 million. The consensus estimate for adjusted earnings per share stands at 64 cents, suggesting a marginal decrease from 65 cents reported in the prior-year quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Juniper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 64 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Juniper currently has a Zacks Rank #2.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on Feb 15. It has an Earnings ESP of +1.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +3.68% and it sports a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 21.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +0.51% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
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https://www.zacks.com/stock/news/2217327/will-top-line-decline-impact-junipers-jnpr-q4-earnings?
| 2024-01-30T03:09:21Z
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We expect GSK plc. (GSK - Free Report) to beat expectations when it reports fourth-quarter and full-year 2023 results on Jan 31. In the last reported quarter, the company delivered an earnings surprise of 15.60%.
Factors to Note
GSK reports financial figures under three segments — Specialty Medicines, Vaccines and General Medicines.
In the fourth quarter, higher sales of newer products like Arexvy, Cabenuva, Dovato, Trelegy Ellipta and Shingrix are likely to have offset the decline in sales of older HIV drugs and respiratory medicines due to generic erosion and competitive pressure. Our model suggests the Respiratory sales to be around £1.88 billion for the quarter.
In HIV, the strong sales growth trend witnessed in recent quarters of the two-drug regimens, Juluca and Dovato and long-acting regimens, Cabenuva and Apretude, might have partially offset the losses in sales of the three-drug regimens during the to-be-reported quarter. Our model estimates sales from the HIV portfolio to be £1.68 billion for the quarter.
Sales of COPD inhalers Trelegy Ellipta and Breo Ellipta are likely to have contributed to fourth-quarter 2023 sales. Our model suggests Trelegy Ellipta and Breo Ellipta sales to be around £571 million and £348 million, respectively.
GSK’s key vaccine, Shingrix’s, sales showed a strong demand recovery in the United States, which — coupled with new launches in different countries — benefited sales in recent quarters. We expect this trend to have continued in the fourth quarter. Our model predicts shingles vaccine sales to be around £847 million.
Sales of meningitis and influenza vaccines have shown a strong recovery in recent quarters on the back of CDC purchases in the United States. The trend is likely to have continued in the fourth quarter. Our model suggests meningitis vaccine sales (including Bexsero) to be around £299 million, while influenza vaccine sales are expected to be around £122 million.
Last year in May, the FDA approved Arexvy, GSK’s respiratory syncytial virus (RSV) vaccine, to prevent lower respiratory tract disease (LRTD) caused by RSV in older adults. This was the first RSV vaccine for older adults to be approved worldwide. The vaccine was made available during the fall season. We expect the company to generate around £249 million from Arexvy sales.
Oncology sales are likely to have witnessed a decline due to lower Blenrep sales following the withdrawal from the U.S. market in November 2022. Our model suggests that the Oncology portfolio is likely to have generated around £133 million in sales. Sales from the recently launched blood cancer drug Ojjaara are expected to be around £4 million.
Earnings Surprise History
GSK’s earnings surpassed estimates in each of the trailing four quarters, delivering a beat of 11.02% on average.
Shares of GSK have outperformed the industry in the past year. The stock has gained 11.3% against the industry’s 14.1% decline.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for GSK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: GSK has an Earnings ESP of 0.63% as the Most Accurate Estimate is higher than the Zacks Consensus Estimate, which stands at 80 cents per ADR
Zacks Rank: GSK currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some biotech/large-cap stocks that have the right combination of elements to beat on earnings this time around:
BioMarin (BMRN - Free Report) has an Earnings ESP of +9.45% and a Zacks Rank #1.
BioMarin’s stock has lost 20.8% in the past year. BioMarin beat earnings estimates in three of the last four quarters, while missing out on one occasion. BMRN delivered a four-quarter earnings surprise of 11.68%, on average.
AstraZeneca (AZN - Free Report) has an Earnings ESP of +3.17% and a Zacks Rank #3.
AstraZeneca’s stock has gained 1.9% in the past year. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.30%, on average. AstraZeneca is scheduled to release its fourth-quarter results on Feb 8.
Merck (MRK - Free Report) has an Earnings ESP of +23.45% and a Zacks Rank #3.
In the past year, Merck’s stock has risen 13.9%. Merck beat earnings estimates in all the last four quarters. MRK delivered a four-quarter earnings surprise of 5.80%, on average. Merck is scheduled to release its fourth-quarter results on Feb 1, before market opens.
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https://www.zacks.com/stock/news/2217328/gsk-gears-up-for-q4-earnings-will-it-surpass-estimates?-
| 2024-01-30T03:09:27Z
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IDEXX Laboratories, Inc. (IDXX - Free Report) is set to release fourth-quarter 2023 results on Feb 5 before the opening bell.
The company posted adjusted earnings per share (EPS) of $2.53 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 6.8%. IDEXX Laboratories beat earnings estimates in all the trailing four quarters, the average surprise being 7.64%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
IDEXX’s Companion Animal Group (“CAG”) Diagnostics recurring revenues are expected to have achieved robust gains in the United States and international regions. A higher number of premium instrument placements, solid contributions from new business gains and sustained growth in veterinary software and diagnostic imaging revenues must have driven overall organic revenues in the fourth quarter of 2023.
In the past few quarters, CAG Diagnostics’ recurring revenue growth has remained above sector growth levels. This is likely to be reflected in the to-be-reported quarter also. Within the United States, we expect high IDEXX CAG growth premiums to be sustained in the fourth quarter, backed by continued strong IDEXX execution drivers, including the benefits of higher net price realization.
Volume gains in the United States must have reflected sustained high customer retention levels, solid new business gains and continued increases in diagnostic frequency and utilization at the practice level. Across modalities, organic growth in IDEXX VetLab consumable revenues must have been supported by the company’s expansion of the global premium instrument installed base, reflecting solid increases across the catalyst, premium hematology and set-of-you platforms.
During the third quarter, ProCyte One installed base expansion continued at a solid pace, reflected in a global installed base of more than 12,000 instruments. Global Rapid Assay revenues expanded 8% organically in the third quarter, supported by strong growth in the U.S., including benefits from higher net price realization. We believe these trends to have continued through the fourth quarter of 2023, thus adding to the top line.
Regarding the other areas of the CAG business, organic revenues in the veterinary software and diagnostic imaging business must have benefited from consistently high levels of organic growth in recurring software and digital imaging revenues and the ongoing momentum in cloud-based software placements.
Per the Zacks Consensus Estimate, CAG business revenues are expected to increase 7.2% year over year to $803 million in the fourth quarter of 2023.
In the fourth quarter, IDEXX’s Water business is likely to have delivered solid gains in the United States driven by the benefits of the net price improvement. The company continues to progress in the integration of the recent Tecta-PDS acquisition, which has expanded water safety testing capabilities. We expect its performance to contribute to growth in the Water business in the to-be-reported quarter.
IDEXX Laboratories, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for the Water segment's revenues is pegged at $41.3 million in the fourth quarter of 2023 compared to the reported figure of $39.31 million in the year-ago quarter.
Similar to the past few quarters, the Livestock, Poultry and Dairy line of business is likely to have been affected by lower herd health screening services related to reduced China import testing. For the third quarter, the Zacks Consensus Estimate for the segment’s revenues suggests a 1.3% decline to $32.9 million in the fourth quarter of 2023.
Q4 Estimates
The Zacks Consensus Estimate for IDEXX’s fourth-quarter 2023 total revenues is pegged at $887.9 million, suggesting an increase of 7.2% from the year-ago reported figure.
The Zacks Consensus Estimate for its fourth-quarter 2023 EPS of $2.10 indicates a 2.4% rise from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: IDEXX Laboratories has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank #2. The company is due to release fourth quarter 2023 results on Feb 28, 2024.
MMSI has an expected long-term earnings growth rate of 11.5%. The company surpassed earnings in each of the trailing four quarters, the average being 14.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.
RxSight (RXST - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results shortly.
RXST has a long-term expected earnings growth rate of 21%. The company surpassed earnings in each of the trailing four quarters, the average being 18.25%.
Sarepta Therapeutics (SRPT - Free Report) currently has an Earnings ESP of +52.45% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results on Feb 27.
SRPT has an expected earnings growth rate of 132.6% compared to the industry’s 11.1%. In the last reported quarter, the company delivered an earnings surprise of 72.3%.
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https://www.zacks.com/stock/news/2217329/idexx-laboratories-idxx-to-post-q4-earnings-whats-in-store?
| 2024-01-30T03:09:33Z
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The U.S. crude oil, specifically West Texas Intermediate (WTI), experienced its most substantial weekly increase in over four months last week, per CNBC. United States Oil ETF (USO - Free Report) gained about 6.1% last week.
This surge was largely attributed to positive economic developments in the United States and China, the world's two largest economies, bolstering hopes for increased crude demand. Both WTI and Brent benchmarks have seen over an 8% rise since the beginning of the year.
U.S. and China Economic Developments
The U.S. reported a stronger-than-expected economic growth rate of 3.3% in the fourth quarter, surpassing Wall Street's 2% forecast. Concurrently, China is taking measures to stimulate growth, such as loosening bank reserve requirements, amidst concerns of an economic slowdown.
Supply Side Factors
The U.S. witnessed a decline in crude supply due to winter storms, with a significant drop in inventories and production. On the global front, OPEC and its allies, OPEC+, are maintaining their output cuts to support oil prices.
Regional Tensions and Supply Risks
Tensions in the Red Sea and the Baltic Sea pose risks to oil supplies. Houthi militants in Yemen continue to target shipping in the Red Sea, affecting global supply chains. Additionally, a suspected Ukrainian drone attack on a Russian fuel terminal highlights the ongoing geopolitical threats to fuel supplies.
Gaza Truce in the Cards?
There are ongoing efforts for a truce in Gaza, which could potentially reduce Middle Eastern geopolitical risks that typically escalate crude prices. The White House is actively involved in these negotiations, though challenges remain, including Hamas's demand for a permanent ceasefire.
ETFs in Focus
Against this backdrop, below we highlight a few oil and energy ETFs that could score gains in the near term.
United States Oil Fund LP (USO - Free Report) – Up 8.4% this year
United States Gasoline Fund LP (UGA - Free Report) – Up 7.6% this year
United States Brent Oil Fund LP (BNO - Free Report) – Up 7.4% this year
ProShares K-1 Free Crude Oil Strategy ETF (OILK - Free Report) – Up 6.8% this year
SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) – Up 6.6% this year
United States 12 Month Oil Fund LP (USL - Free Report) – Up 6.5% this year
VanEck Oil Services ETF (OIH - Free Report) – Up 6.3% this year
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
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https://www.zacks.com/stock/news/2217345/time-for-oil-energy-etfs?
| 2024-01-30T03:09:39Z
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Knight-Swift Transportation Holdings Inc. (KNX - Free Report) fourth-quarter 2023 earnings of 9 cents per share missed the Zacks Consensus Estimate of 47 cents and declined 91% year over year. Total revenues of $1,931.9 million outperformed the Zacks Consensus Estimate of $1,922 million and improved 0.5% year over year.
Total operating expenses (on a reported basis) increased 24.2% year over year to $1.91 billion.
Knight-Swift’s adjusted operating income fell 78.6% year over year.
Segmental Results
Revenues (excluding fuel surcharge and inter-segment transactions) from Truckload totaled $1,155.72 million, up 25.5% year over year. Adjusted segmental operating income plunged 56.2% to $69.94 million. Adjusted operating ratio (operating expenses as a percentage of revenues) grew 1120 basis points (bps) to 93.9%.
The Less-Than-Truckload segment generated revenues (excluding fuel surcharges) worth $232.08 million in the fourth quarter, up 13.8% year over year. Adjusted segmental operating income grew 14% to $33.7 million. Adjusted operating ratio remained flat at 85.5%.
Revenues from Logistics (excluding inter-segment transactions) amounted to $164.54 million, down 5% year over year. Adjusted operating income decreased 51.9% to $11.27 million. The adjusted operating ratio rose 670 bps to 93.1%.
Intermodal revenues (excluding inter-segment transactions) totaled $94.43 million, down 16.4% year over year. The operating ratio (on a reported basis) soared to 104.7% from 94.7% in the year-ago quarter.
Liquidity
Knight-Swift exited the fourth quarter with cash and cash equivalents of $168.55 million compared with $193.37 million at the prior-quarter end. Long-term debt (excluding current maturities) was $1.22 billion compared with $1.26 billion at the end of prior quarter.
Guidance
Knight-Swift expects first-quarter 2024 adjusted earnings per share (EPS) in the range of 37-41 cents and second-quarter 2024 EPS in the range of 53-57 cents.
KNX expects net cash capital expenditures for 2024 in the $625-$675 million band. The tax rate is expected to be around 25-26% for 2024.
Currently, KNX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
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https://www.zacks.com/stock/news/2217351/knight-swift-knx-q4-earnings-lag-estimates-revenue-beat
| 2024-01-30T03:09:46Z
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LSI Industries Inc. (LYTS - Free Report) reported mixed second-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings and net sales surpassed the Zacks Consensus Estimate. However, both the metrics declined on a year-over-year basis due to tepid Display Solutions and Lighting segment performance.
Nonetheless, strategic investments in organic growth and new product innovation aided the company's performance. Also, emphasis on cross-selling initiative bodes well.
Delving Deeper
LYTS reported earnings of 20 cents per share, which topped the consensus estimate of 7 cents by 185.7%. However, the metric declined 11% from the year-ago reported figure of 22 cents per share. Adjusted earnings of 21 cents declined 19% year over year.
Net sales of $109 million beat the consensus mark of $108 million by 1.2% but decreased 15% from the prior-year quarter’s levels. Lighting Segment’s net sales of $64.8 million and Display Solutions’ net sales of $44.2 million declined 3% and 29% year over year, respectively.
Operating Highlights
Adjusted operating income decreased by 18% to $8.7 million. Adjusted operating margin of 8% was down 20 basis points (bps) year over year. Adjusted EBITDA declined 15% year over year to $11.1 million from a year ago. Adjusted EBITDA margin remained at par with the year-ago figure.
Financials
As of Dec 31, 2023, LSI Industries had cash and cash equivalents of $2.7 million, up compared with $1.8 million at the end of the fiscal 2023. As of Dec 31, 2023, LSI had approximately $103 million in liquidity, including availability under its existing credit facility.
Long-term debt was $17.9 million, down from $31.6 million reported at fiscal 2023-end. The net debt to adjusted EBITDA ratio was 0.4x versus 0.65x at the end of fiscal 2023.
For the first six months of fiscal 2024, cash provided by operating activities totaled $19.9 million compared with $20.1 million in the prior-year period. Free cash flow was down to $16.5 million from $19.1 million in the prior-year period.
Zacks Rank
LSI Industries currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
A Few Recent Construction Releases
United Rentals, Inc. (URI - Free Report) reported impressive fourth-quarter 2023 results. Its earnings and revenues beat the Zacks Consensus Estimate and increased on a year-over-year basis.
The upside was mainly driven by sustained growth across the business, profitability and returns, underpinned by broad-based activity. Moreover, URI has provided strong guidance for 2024, given the strength of the present market condition and the multi-year tailwinds the company sees across infrastructure, manufacturing and energy and power.
D.R. Horton, Inc. (DHI - Free Report) reported first-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings missed the Zacks Consensus Estimate, but revenues surpassed the same.
On a year-over-year basis, both the top and bottom lines increased. The upside was backed by the supply of both new and existing homes as affordable price points remain limited, and favorable demographics supports robust housing demand amid elevated inflation and mortgage/interest rates.
KB Home (KBH - Free Report) reported better-than-expected results in fourth-quarter fiscal 2023 (ended Nov 30, 2023). Both the earnings and revenues beat the Zacks Consensus Estimate. With this, the company’s earnings and revenues surpassed the consensus mark in the trailing four quarters.
Looking forward to the first quarter and the entirety of 2024, KBH foresees enhanced conditions in the housing market and ongoing positive trends in the supply chain. Leveraging the advantages of its Built to Order model, which provides buyers choices, flexibility and affordability, the company is confident in its ability to effectively navigate potential fluctuations in housing market conditions.
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https://www.zacks.com/stock/news/2217352/lsi-industries-lyts-q2-earnings-beat-estimates-down-yy
| 2024-01-30T03:09:52Z
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First Community (FCCO - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for First Community basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for First Community imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for First Community
This holding company for First Community Bank is expected to earn $1.54 per share for the fiscal year ending December 2024, which represents a year-over-year change of -0.7%.
Analysts have been steadily raising their estimates for First Community. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.1%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of First Community to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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https://www.zacks.com/stock/news/2217353/first-community-fcco-upgraded-to-buy-what-does-it-mean-for-the-stock?
| 2024-01-30T03:09:58Z
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