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Diodes (DIOD - 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 stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 6. 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 $0.48 per share in its upcoming report, which represents a year-over-year change of -72.3%.
Revenues are expected to be $324.5 million, down 34.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.67% 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. 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 Diodes?
For Diodes, 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 -5.26%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Diodes 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 Diodes would post earnings of $1.20 per share when it actually produced earnings of $1.13, delivering a surprise of -5.83%.
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.
Diodes 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/2218021/earnings-preview-diodes-diod-q4-earnings-expected-to-decline
| 2024-01-30T23:58:36Z
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Apollo Commerical Finance (ARI - 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 6. 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 real estate investment trust is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +16.1%.
Revenues are expected to be $60.07 million, down 13.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 6.67% 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. 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 Apollo Commerical Finance?
For Apollo Commerical Finance, 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 +0.93%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that Apollo Commerical Finance 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 Apollo Commerical Finance would post earnings of $0.38 per share when it actually produced earnings of $0.37, delivering a surprise of -2.63%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
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.
Apollo Commerical Finance 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Apollo Commercial Real Estate Finance (ARI) - free report >>
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https://www.zacks.com/stock/news/2218022/apollo-commerical-finance-ari-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-30T23:58:42Z
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Wall Street expects a year-over-year decline in earnings on lower revenues when ArcBest (ARCB - 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 6, 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 freight transportation and logistics company is expected to post quarterly earnings of $2.17 per share in its upcoming report, which represents a year-over-year change of -11.4%.
Revenues are expected to be $1.08 billion, down 13.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.3% 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. 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 ArcBest?
For ArcBest, 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 +0.74%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that ArcBest 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 ArcBest would post earnings of $1.55 per share when it actually produced earnings of $2.31, delivering a surprise of +49.03%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
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.
ArcBest 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 Transportation - Truck industry, Saia (SAIA - Free Report) , is soon expected to post earnings of $3.19 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +20.4%. Revenues for the quarter are expected to be $746.26 million, up 13.8% from the year-ago quarter.
The consensus EPS estimate for Saia has been revised 0.3% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.64%.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Saia 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/2218023/arcbest-arcb-expected-to-beat-earnings-estimates-should-you-buy?
| 2024-01-30T23:58:48Z
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MPLX LP (MPLX - Free Report) reported $2.97 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 11.4%. EPS of $1.10 for the same period compares to $0.78 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.94 billion, representing a surprise of +0.93%. The company delivered an EPS surprise of +15.79%, with the consensus EPS estimate being $0.95.
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 MPLX LP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average tariff rates - Crude oil pipelines: $0.98 versus $0.96 estimated by two analysts on average.
- Pipeline throughput - Total pipelines: 5779 millions of barrels of oil per day compared to the 5832.05 millions of barrels of oil per day average estimate based on two analysts.
- Pipeline throughput - Crude oil pipelines: 3701 millions of barrels of oil per day versus 3646.95 millions of barrels of oil per day estimated by two analysts on average.
- Revenues and other income- Income from equity method investments: $162 million versus $147.64 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.9% change.
- Adjusted EBITDA- Gathering and Processing: $534 million versus $522.35 million estimated by two analysts on average.
- Adjusted EBITDA- Logistics and Storage: $1.09 billion versus $1.07 billion estimated by two analysts on average.
Shares of MPLX LP have returned +3.6% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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https://www.zacks.com/stock/news/2218024/mplx-lp-mplx-q4-earnings-how-key-metrics-compare-to-wall-street-estimates
| 2024-01-30T23:58:54Z
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MSCI (MSCI - Free Report) reported $690.11 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 19.8%. EPS of $3.68 for the same period compares to $2.84 a year ago.
The reported revenue represents a surprise of +5.01% over the Zacks Consensus Estimate of $657.16 million. With the consensus EPS estimate being $3.29, the EPS surprise was +11.85%.
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.
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 MSCI performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Period-End AUM in ETFs linked to MSCI equity indexes: $1.47 billion versus $1.38 billion estimated by four analysts on average.
- Index Run Rate - Recurring subscriptions: $861.37 million compared to the $858.03 million average estimate based on four analysts.
- Total Run Rate - Total recurring subscriptions: $2.10 billion compared to the $2.02 billion average estimate based on four analysts.
- Total Retention Rate: 93.6% versus the four-analyst average estimate of 93.7%.
- Operating Revenues- ESG and Climate: $76.25 million versus the five-analyst average estimate of $77.15 million. The reported number represents a year-over-year change of +20%.
- Operating Revenues- Asset-based fees - Total: $145.15 million versus the five-analyst average estimate of $136.66 million.
- Operating Revenues- Analytics: $164.74 million versus $158.84 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10% change.
- Operating Revenues- All Other - Private Assets: $61.12 million versus $56.07 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +81.5% change.
- Operating Revenues- Index: $388 million compared to the $364.57 million average estimate based on five analysts. The reported number represents a change of +17.8% year over year.
- Operating revenues- Index- Non-recurring: $32.11 million compared to the $14.46 million average estimate based on five analysts. The reported number represents a change of +98.2% year over year.
- Operating Revenues- Index- Asset-based fees: $145.15 million compared to the $138.50 million average estimate based on five analysts. The reported number represents a change of +15.9% year over year.
- Operating revenues- Index- Recurring subscriptions: $210.74 million versus $211.61 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.9% change.
Shares of MSCI have returned -2.6% over the past month versus the Zacks S&P 500 composite's +3.4% 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/2218025/msci-msci-q4-earnings-taking-a-look-at-key-metrics-versus-estimates
| 2024-01-30T23:59:00Z
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OneWater Marine Inc. (ONEW - Free Report) is scheduled to report first-quarter fiscal 2024 results on Feb 1. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 10.6%.
Q1 Estimates
The Zacks Consensus Estimate is pegged at a loss of 30 cents per share. It reported earnings of 61 cents in the prior-year quarter. The consensus mark for revenues is pegged at $370.3 million, suggesting a rise of 1% from a year ago.
Factors to Note
ONEW’s first-quarter fiscal 2024 top line is likely to have been driven by strong pre-owned boat sales. A rise in average unit price of both new and pre-owned boats, along with an effective acquisition strategy, is expected to have contributed to this success. Further, the company's focus on technological investments and inventory planning tools, combined with strong retail demand, is likely to have enhanced its prospects. However, high costs are likely to have hurt its bottom line.
The Zacks Consensus Estimate for new boat revenues is pegged at $232 million, indicating to be flat from the year-ago levels. The consensus estimate for pre-owned boat and service parts is pegged at $64 million, hinting at growth of 14.3% from the year-earlier levels. The consensus estimate for other revenues is pegged at $94 million, which implies a decline of 1.4% from the prior-year actuals. The Zacks Consensus Estimate for revenues from finance & insurance income is pegged at $10.2 million, indicating 14.2% growth from a year ago.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for OneWater Marine 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.
Earnings ESP: OneWater Marine has an Earnings ESP +15.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: OneWater Marine has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks you may want to consider, as our model shows that these, too, 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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Hasbro, Inc. (HAS) - free report >>
MGM Resorts International (MGM) - free report >>
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https://www.zacks.com/stock/news/2218026/factors-setting-the-tone-for-onewater-marine-onew-q1-earnings
| 2024-01-30T23:59:07Z
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For investors seeking momentum, SPDR Portfolio S&P 500 ETF (SPLG - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 29% from its 52-week low of $44.75 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SPLG in Focus
SPDR Portfolio S&P 500 ETF offers exposure to the large-cap segment of the broader equity market. It has key holdings in information technology, financials, healthcare and consumer discretionary. SPDR Portfolio S&P 500 ETF charges just 2 bps in annual fees (see: all the Large-Cap Blend ETFs here).
Why the Move?
The large-cap corner of the broad investing world has been an area to watch lately, given the surge in the stock market. The S&P 500 Index touched the 49,000 level for the first time as yields fell. Additionally, a busy week packed with big tech earnings releases is fueling a rally in the stocks.
More Gains Ahead?
Currently, SPLG has a Zacks ETF Rank #2 (Buy), suggesting that the outperformance could continue in the months ahead. Many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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https://www.zacks.com/stock/news/2218027/large-cap-etf-splg-hits-new-52-week-high
| 2024-01-30T23:59:13Z
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AvalonBay Communities, Inc. (AVB - Free Report) , a leading real estate investment trust (REIT) specializing in the development, acquisition and management of multifamily properties, is set to announce its fourth-quarter and full-year 2023 results after the closing bell on Jan 31.
In the last reported quarter, this residential REIT delivered a surprise of 0.76% in terms of core funds from operations (FFO) per share. The quarterly results reflected a year-over-year increase in same-store residential rental revenues, driven by effective lease rates.
Over the last four quarters, AvalonBay surpassed the Zacks Consensus Estimate on each occasion, the average beat being 1.16%. The graph below depicts the surprise history of the company:
As we approach the release of AvalonBay'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
AvalonBay's strategy of developing, acquiring and redeveloping multifamily properties in high-growth markets has served it well over the years. AVB’s focus on high-quality apartment communities in some of the most desirable neighborhoods allows it to maintain strong occupancy rates and command premium rents.
AvalonBay is banking on technology, scale and organizational capabilities to drive innovation and margin expansion in its portfolio. Its emphasis on long-term value creation and risk management has also contributed to its solid financial performance and ability to generate consistent cash flow. It is also likely to retain its balance sheet strength. However, rising supply and winter months are likely to have played a spoilsport.
The Zacks Consensus Estimate of $701.67 million for fourth-quarter revenues suggests a 4.78% year-over-year increase.
For the fourth quarter of 2023, AvalonBay expected core FFO per share in the range of $2.69-$2.79.
Before the fourth-quarter earnings release, the company’s activities were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has been unrevised at $2.73 over the past month. However, this suggests year-over-year growth of 5.41%.
For the full year 2023, AvalonBay expected core FFO per share between $10.58 and $10.68, implying 8.6% growth year over year at the midpoint. This is based on the company’s projection for same-store residential rental revenue growth of 6.2%-6.4% and same-store residential NOI growth of 6.1%-6.5%.
For the year, we expect same-store residential rental revenue growth of 6.2%, expenses to increase 6.4% and consequently net operating income to increase 6.4% year over year. For the fourth quarter, we project an economic occupancy of 95.6%.
For the full year, the Zacks Consensus Estimate for core FFO per share is pegged at $10.62. The figure indicates an 8.48% increase year over year on 6.5% year-over-year growth in revenues to $2.76 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for AvalonBay 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.
AvalonBay currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.92%. 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 2.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
AvalonBay Communities, Inc. (AVB) - free report >>
Kimco Realty Corporation (KIM) - free report >>
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https://www.zacks.com/stock/news/2218029/what-to-expect-from-avalonbay-avb-this-earnings-season?
| 2024-01-30T23:59:19Z
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Amazon’s (AMZN - Free Report) fourth-quarter 2023 results, scheduled to be released on Feb 1, are likely to reflect gains from its strengthening cloud service offerings.
AMZN’s cloud computing division, Amazon Web Services (“AWS”), dominates the cloud market on the back of its growing adoption and popularity. This is anticipated to be reflected in the company’s fourth-quarter results.
We note that the solid momentum across AWS has been aiding Amazon in generating high margins from the cloud business. The trend is expected to have continued in the yet-to-be-reported quarter.
AWS’ revenues were $23.06 billion, accounting for 12.3% of net sales in third-quarter 2023, rising 16.1% year over year. We further note that its operating income was $6.98 billion, up 29.1% year over year.
An expanding customer base and a strong discount offering for long-term deals are likely to have driven AWS’ top line in the quarter under review.
The Zacks Consensus Estimate for fourth-quarter 2023 AWS net sales is pegged at $24.32 billion, indicating an improvement of 13.8% from the year-ago quarter’s reported figure.
Click here to know how the company’s overall fourth-quarter results are likely to be.
Factors to Note
The strengthening cloud services portfolio on the back of generative AI technology and expanding data center networks are likely to have benefited the performance of AWS during the fourth quarter.
The increasing number of AWS regions and availability zones might have remained a positive. In the quarter under review, AWS launched its second infrastructure region in Canada, located in Calgary.
All these factors are expected to have aided Amazon in sustaining momentum among existing cloud customers and attracting new ones.
In the fourth quarter, Trip.com (TCOM - Free Report) selected AWS as its strategic cloud provider. Trip.com is leveraging AWS’ robust infrastructure and cloud services to support its global expansion and deliver an enhanced travel experience by offering cost-effective travel booking services and hassle-free on-the-go customer service support.
Additionally, Hyundai, Mitsubishi UFJ Financial Group, SCAYLE and BYD selected AWS as the preferred cloud provider.
AWS was also picked by Axiata Group Berhad as the primary cloud provider.
Aerodyne, a drone solution provider, went all-in on AWS to solve complex industrial issues with drone data.
Cathay selected AWS as its strategic cloud partner to establish the Cathay Machine Learning Innovation Hub.
The Bank of Ayudhya Public Company Limited (Krungsri) also picked AWS to boost its digital transformation and accelerate the financial inclusion drive in Thailand.
Apart from these, Amgen (AMGN - Free Report) partnered with AWS to expand the usage of the latter’s cloud solutions. Amgen is developing generative AI-based solutions to accelerate advanced therapies and boost the manufacturing throughput of medicines on the back of AWS’ robust generative AI and Machine Learning capabilities.
We note that the strengthening customer base is likely to have driven AWS's top-line growth in the fourth quarter.
Zacks Rank & Another Stock to Consider
Currently, Amazon has a Zacks Rank #2 (Buy).
Another top-ranked stock in the broader technology sector is Arista Networks (ANET - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have returned 116.5% over the past year. The long-term earnings growth rate for ANET is pegged at 19.77%.
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https://www.zacks.com/stock/news/2218033/will-amazons-amzn-q4-earnings-benefit-from-aws-momentum?
| 2024-01-30T23:59:25Z
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NVR (NVR - Free Report) came out with quarterly earnings of $121.56 per share, beating the Zacks Consensus Estimate of $118.63 per share. This compares to earnings of $133.44 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.47%. A quarter ago, it was expected that this homebuilder would post earnings of $112.79 per share when it actually produced earnings of $125.26, delivering a surprise of 11.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
NVR
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.
NVR shares have added about 1.5% since the beginning of the year versus the S&P 500's gain of 3.3%.
What's Next for NVR?
While NVR 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 NVR: 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 #2 (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 $87.15 on $1.98 billion in revenues for the coming quarter and $415.54 on $9.15 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, Building Products - Home Builders is currently in the top 13% 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, M/I Homes (MHO - Free Report) , has yet to report results for the quarter ended December 2023. The results are expected to be released on January 31.
This homebuilder is expected to post quarterly earnings of $4.94 per share in its upcoming report, which represents a year-over-year change of -4.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
M/I Homes' revenues are expected to be $1.19 billion, down 2.6% from the year-ago quarter.
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https://www.zacks.com/stock/news/2218034/nvr-nvr-surpasses-q4-earnings-estimates
| 2024-01-30T23:59:32Z
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Qualys (QLYS - Free Report) recently collaborated with Orange Cyberdefense to integrate its Vulnerability Management, Detection and Response (VMDR) in the latter’s Managed Vulnerability Intelligence Service.
With Qualys’ VMDR, organizations can fast-track the discovery and categorization of known and unknown files to continuously identify unmanaged assets. Organizations can further create automated workflows to manage unknown assets using VMDR. The organized data can further be used to gain deep visibility into hardware, configuration, applications, services and network information using queries.
This new partnership will offer Orange Cyberdefense customers enhanced asset discovery, detection, risk assessment and prioritization using TruRisk. Notably, TruRisk, integrated into VMDR, enables organizations to quantify risk across vulnerabilities, digital assets and files to track, mitigate and proactively reduce risk exposure.
Qualys’ VMDR solution is being steadily adopted by its customers. In the previous quarter, the company reported that its VMDR solution was adopted by 54% of its customer base. VMDR is part of a comprehensive set of solutions that QLYS offers in its cloud platform, namely Qualys Cloud Apps. The platform offers solutions across on-premises, cloud, containers, endpoints and mobile environments.
These cloud solutions, including VMDR, are offered as a software-as-a-service model and are accessed through renewable annual subscriptions. Revenues generated from the company's cloud platform are increasing due to subscription renewals. Additionally, new customers who are joining cloud platforms are contributing to this growth.
Zacks Rank and Stocks to Consider
Currently, Qualys carries a Zacks Rank #3 (Hold). Shares of QLYS have surged 66.2% in the past year.
Some better-ranked stocks from the broader technology sector are BlackLine (BL - Free Report) , Arista Networks (ANET - Free Report) and Blackbaud (BLKB - Free Report) . While BL and ANET sport a Zacks Rank #1 (Strong Buy) each, BLKB 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 BlackLine’s fourth-quarter 2023 earnings has been revised by a penny northward to 55 cents per share in the past 30 days. Shares of BL have lost 13.2% in the past year.
The Zacks Consensus Estimate for Arista’s fourth-quarter 2023 earnings has been revised by a penny northward to $1.70 per share in the past 90 days. Shares of ANET have rallied 113.9% in the past year.
The Zacks Consensus Estimate for Blackbaud's fourth-quarter 2023 earnings per share has declined 4 cents to $1.04 in the past 90 days. Shares of BLKB have returned 35.3% in the past year.
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https://www.zacks.com/stock/news/2218036/qualys-qlys-vmdr-to-enhance-orange-cyberdefenses-solution
| 2024-01-30T23:59:38Z
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Pre-market futures are giving back some of the gains we’ve seen in the past few days of trading — ones which have pumped the Dow and S&P 500 to fresh all-time highs. At this hour, the Dow is -70 points, the S&P is -10 and the tech-heavy Nasdaq is -30 points. But there are key data points today — which have already begun, but continue until after today’s regular trading session closes — that may shift the trade winds as the day moves along.
General Motors (GM - Free Report) shares shot up more than +7% on its Q4 results, with both top and bottom lines easily surpassing expectations: earnings of $1.24 per share on $42.98 billion in sales outpaced the Zacks consensus $1.12 and $40.78 billion, respectively. Also, a big increase in earnings guidance — expectations between $8.50-9.50 per share is well above the $7.53 previously anticipated — have helped the stock in the pre-market hours. The company’s China business showed -34% equity income (-54% in Q4 alone), but a $1 billion reduction in its automated Cruise project will help allocate assets elsewhere.
Pfizer (PFE - Free Report) , on the other hand, swung to a big positive surprise in its Q4 report this morning — earnings of +10 cents reverses expectations for -19 cents per share — on $14.25 billion in quarterly revenues, which were a tad light of the Zacks consensus, by -0.80%. Shares are up +1% on the news in early trading today, however, though the stock had already sold off more than -4% year to date, -36% over the past year. The Big Pharma staple looks to have new market entries take up some slack from declining Covid vaccine revenues. For more on PFE's earnings, click here.
United Parcel Service (UPS - Free Report) beat Q4 earnings estimates by 3 cents to $2.47 per share, but that is about the extent of the company’s good news this morning. Revenues came up short of the $25.3 billion expected, to $24.92 billion, as the company announces job cuts amounting to 12K employees pending. That said, revenue guidance for the full year are up from projections to a range of $92-94.5 billion. UPS has not posted an earnings miss since Q1 2020, but shares are -5.5% this morning.
Case-Shiller Home Prices for November of last year (a metric clearly in arrears, but one which is widely seen as the most accurate in the housing industry) came in slightly below expectations to +5.4% on the 20-year survey, and -0.2% month over month, for the first lower print on overall home sales in 10 months. Leading the way in home price growth were Detroit, +8.2%, and San Diego, +8.0%. Those experiencing the biggest decline in this report were comparatively modest: -1.4% in Seattle and -1.3% for San Francisco.
After today’s open we’ll see more key data, including the first entry to this period’s Jobs Week: Job Openings and Labor Turnover Survey (JOLTS) for December. Expectations are for a steady 8.8 million job openings, in-line with the previous two months and consistent with a need to hire for companies in this economy. That said, we’re way down from the 11 million-plus openings we were seeing as recently as late 2022. Also, Consumer Confidence for January is expected to rise to 115 from the previous month’s print 110.7, indicating continued strength in the perception of the American consumer.
After the closing bell, the Q4 earnings cavalcade rolls along, with marquee tech names like Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Advanced Micro Devices (AMD - Free Report) reporting results. All three of these Zacks Rank #3 (Hold)-rated stocks are expecting double-digit earnings growth, with Microsoft and Alphabet also anticipated to bring in double-digit growth on their top line (AMD +9%).
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https://www.zacks.com/stock/news/2218048/gm-up-on-q4-beat-raise-ups-pfizer-mixed?-raise;-ups,-pfizer-mixed
| 2024-01-30T23:59:44Z
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Church & Dwight Co., Inc. (CHD - Free Report) is likely to register top-line growth when it reports fourth-quarter 2023 earnings on Feb 2, before market open. The Zacks Consensus Estimate for revenues is pegged at $1.51 billion, suggesting a rise of 5.3% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has been unchanged in the past 30 days to 64 cents per share. This indicates an increase of 3.2% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings surprise of 10.1%, on average.
Factors to Note
Church & Dwight's fourth-quarter results are likely to reflect the positive impacts of acquisitions, innovative initiatives and growing consumer demand for its products. The company's effective pricing strategies have also been helping to mitigate the effects of inflation. Church & Dwight anticipated pricing adjustments and productivity improvements to effectively counteract inflationary pressures in 2023. Our model suggests pricing/product mix growth of 1.5% for the fourth quarter.
Church & Dwight's strategy of acquiring complementary businesses has historically boosted its market presence and product portfolio. These acquisitions have not only enhanced the company's market share but have also brought in new customer segments, diversifying its revenue streams. The impacts of this are likely to get reflected in the quarterly results.
Innovation has been a key driver of Church & Dwight's success. The company's focus on developing products and improving existing ones has been catering to evolving consumer needs. This continuous innovation not only attracts customers but also strengthens brand loyalty among existing ones. The enduring popularity of Church & Dwight's brands plays a significant role in its financial performance. This is anticipated to have influenced the company’s quarterly performance.
The company has been witnessing increasing marketing and SG&A expenses for the past few quarters. For the fourth quarter, Church & Dwight anticipates a considerable rise in marketing expenses to maintain strong momentum as the company heads into 2024. Additionally, it expects an increase in fourth-quarter SG&A expenses, driven by higher incentive compensations and future-focused investments. A higher tax rate is also anticipated for this period. These are anticipated to have impacted the adjusted EPS in the quarter under review. Our model suggests a 15.1% rise in marketing expenses for the fourth quarter.
In its last reported quarter's earnings call, management expected reported sales to grow 5% and organic sales to rise 4% year over year in the fourth quarter. Additionally, the company anticipated adjusted earnings of 63 cents a share for the fourth quarter, indicating a 2% increase from the previous year's reported number.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Church & Dwight 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, which is the case here.
Church & Dwight carries a Zacks Rank #2 and has an Earnings ESP of +0.90%. 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 worth considering, as our model shows that these also have the correct combination to beat on earnings this time:
e.l.f Beauty (ELF - Free Report) currently has an Earnings ESP of +1.65% and a Zacks Rank #2. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for e.l.f Beauty’s quarterly revenues is pegged at $232.2 million, indicating a rise of 58.4% 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 e.l.f Beauty’s quarterly earnings per share of 55 cents suggests an increase of 14.6% from the year-ago quarter’s reported level. ELF has a trailing four-quarter earnings surprise of 90.1%, on average.
Post Holdings (POST - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #3 at present. The company is slated to witness top-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for Post Holdings’ quarterly revenues is pegged at $1.9 billion, which suggests an increase of 22.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Post Holdings’ quarterly earnings is pegged at $1.06 per share, which suggests a decline of 1.9% from the year-ago quarter’s reported number. POST delivered an earnings surprise of 59.2%, on average, in the trailing four quarters.
Clorox (CLX - Free Report) currently has an Earnings ESP of +9.75% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.8 billion, suggesting growth of 3.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings has been unchanged in the past 30 days at $1.07 per share, which indicates 9.2% growth from the year-ago quarter's reported number. CLX delivered an earnings surprise of 115.5%, on average, in the trailing four quarters.
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https://www.zacks.com/stock/news/2218050/church-dwight-chd-gears-up-for-q4-earnings-what-to-note?
| 2024-01-30T23:59:55Z
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In the past week, sector heavyweights like United Airlines (UAL - Free Report) , American Airlines (AAL - Free Report) , Alaska Air Group (ALK - Free Report) and Southwest Airlines (LUV - Free Report) reported fourth-quarter 2023 earnings. While air travel demand was upbeat, high costs hurt results.
Meanwhile, Allegiant Travel Company (ALGT - Free Report) reported year-over-year decreases in traffic and capacity for December 2023.
Read the last Airline Roundup here.
Recap of the Recent Most Important Stories
1 American Airlines’ fourth-quarter 2023 earnings (excluding 26 cents from non-recurring items) of 29 cents per share easily beat the Zacks Consensus Estimate of 6 cents. In the year-ago quarter, AAL reported earnings of $1.17. Operating revenues of $13.06 billion decreased 1% year over year. The top line beat the Zacks Consensus Estimate of $13.02 billion.
Management expects first-quarter 2024 total revenue per available seat miles between 3.5% and 5.5%, suggesting a decline from the first-quarter 2023 actual. AAL projects the March-end quarter's loss per share (excluding net special items) to be 15-35 cents. System capacity for the March-end quarter is estimated to increase 6.5-8.5% from the first-quarter 2023 actuals.
2. Southwest Airlines reported fourth-quarter 2023 earnings per share of 37 cents, which outpaced the Zacks Consensus Estimate of 11 cents. In the year-ago quarter, LUV incurred a loss of 38 cents per share. Revenues of $6.82 billion outpaced the Zacks Consensus Estimate of $6.74 billion and improved 10.5% year over year. The uptick was due to healthy leisure demand and continued yield strength. For the first quarter of 2024, available seat miles are estimated to improve 10% from the year-ago reported figure. Economic fuel price per gallon is expected between $2.70 and $2.80.
LUV currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy ) stocks here.
3. Alaska Air reported fourth-quarter 2023 earnings per share of 30 cents, which beat the Zacks Consensus Estimate of 18 cents but declined 67.4% year over year. Operating revenues of $2.55 billion beat the Zacks Consensus Estimate of $2.54 billion. ALK anticipates 2024 adjusted earnings per share between $3 and $5.
4. United Airlines reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year. Operating revenues of $13.63 billion beat the Zacks Consensus Estimate of $13.55 billion. 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.
5. In December, Allegiant’s scheduled traffic (measured in revenue passenger miles) declined 6.5% from December 2022. Capacity (measured in available seat miles) for scheduled service fell 4.4% from the December 2022 reading. Load factor (percentage of seats filled by passengers) in December 2023 reached 82.5%. Total departures (scheduled services) fell 53% in December 2023 from a year ago. For the total system (including scheduled service and fixed fee contract), Allegiant carried 6.3% fewer passengers in December 2023 than the year-ago period.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that most airline stocks have traded in the green over the past week, resulting in the NYSE ARCA Airline Index growing 2.4% to $62.43. Over the course of the past six months, the NYSE ARCA Airline Index has depreciated 15.6%.
What’s Next in the Airline Space?
Fourth-quarter 2023 earnings report from few other airlines should be out in the coming days.
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https://www.zacks.com/stock/news/2218051/airline-stock-roundup-ual-others-post-q4-earnings-agt-in-focus?-others-post-q4-earnings,-agt-in-focus
| 2024-01-31T00:00:01Z
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For the quarter ended December 2023, HarborOne Bancorp (HONE - Free Report) reported revenue of $38.6 million, down 21.4% over the same period last year. EPS came in at $0.09, compared to $0.21 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $42.11 million, representing a surprise of -8.34%. The company delivered an EPS surprise of -43.75%, with the consensus EPS estimate being $0.16.
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 HarborOne Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Efficiency ratio: 74.1% versus the four-analyst average estimate of 75.5%.
- Net Interest Margin: 2.2% versus 2.3% estimated by four analysts on average.
- Total Noninterest Income: $8.90 million versus the four-analyst average estimate of $11.24 million.
- Net Interest Income: $29.69 million versus $30.73 million estimated by three analysts on average.
Shares of HarborOne Bancorp have returned +0.9% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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https://www.zacks.com/stock/news/2218052/harborone-bancorp-hone-q4-earnings-taking-a-look-at-key-metrics-versus-estimates
| 2024-01-31T00:00:07Z
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Eni SpA (E - Free Report) confirmed its decision to establish Italy’s third bio-refinery in Livorno, marking a significant step in the company’s commitment to decarbonization and meeting ambitious environmental targets.
Eni is set to convert its existing 84,000-barrel-per-day conventional crude oil refinery in Livorno into Italy's third biorefinery. The Livorno refinery’s transformation aligns with the company’s broader goal of achieving carbon neutrality by 2050 and increasing its bio-refining capacity from 1.65 million tons per year to more than 5 million tons per year by 2030.
As part of this initiative, Eni has halted the import of crude oil and initiated the shutdown of the Livorno refinery's lubricant production lines and topping plant. The decision underscores the company's dedication to sustainable practices and signals a shift toward bio-based alternatives in the energy sector.
The Livorno industrial site's conversion follows successful transformations in Porto Marghera (2014) and Gela (2019), highlighting Eni's commitment to implementing environmentally responsible solutions across its operations.
Preparatory work for the construction of three bio-refining plants at the Livorno site is underway, with Eni set to commence formal construction pending final regulatory approvals. The completion and commissioning of the refinery's transformation are expected by 2026.
The bio-refining plants at Livorno will play a crucial role in processing various biogenic feedstocks, primarily vegetable waste and residue. This sustainable approach aims to produce HVO diesel, HVO naphtha and bio-LPG, contributing to the reduction of carbon emissions and reliance on traditional fossil fuels.
Fuel distribution in the Livorno area will be maintained through the import of finished and semi-finished products, ensuring a smooth transition during the refinery's transformation. Eni's commitment to sustainability extends beyond environmental considerations to encompass the economic resilience of the Livorno site, securing production capabilities and employment opportunities in the region.
Forecasts indicate a 65% global increase in demand for hydrogenated biofuels between 2024 and 2028, further justifying Eni’s growth strategy. The Livorno bio-refinery is poised to contribute significantly to meeting this growing demand, showcasing Eni's role as a key player in driving sustainable solutions in the energy sector.
The transformation of the Livorno industrial site represents a crucial step in achieving Eni's ambitious decarbonization goals, contributing to the global transition to cleaner energy alternatives. As the world grapples with climate change challenges, Eni's proactive approach underscores the pivotal role that major energy players can play in shaping a more sustainable future.
Zacks Rank & Stocks to Consider
Eni currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vaalco Energy (EGY - Free Report) is an independent energy company principally engaged in the acquisition, exploration, development, and production of crude oil and natural gas.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $1.49. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. EGY’s earnings for 2024 are expected to surge 325.7% year over year.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 89 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. EGY’s earnings for 2024 are expected to soar 242.3% year over year.
Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. It has a Zacks Style Score of A for Growth and B for Value. OII’s earnings for 2024 are expected to surge 76.4% year over 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/2218053/eni-e-proceeds-with-livornos-conversion-to-biorefinery
| 2024-01-31T00:00:22Z
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Pentair plc (PNR - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of 87 cents, beating the Zacks Consensus Estimate of 86 cents per share. The bottom line came in line with the upper end of the company’s guidance of 82-87 cents and improved 6% from the year-ago quarter.
Including one-time items, EPS was $1.25 compared with the prior-year quarter’s EPS of 58 cents.
Net sales declined 1.8% year over year to $985 million in the quarter under review. However, the top line outpaced the Zacks Consensus Estimate of $973 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 2% in the quarter.
The cost of sales declined 8.8% year over year to $619 million. The gross profit in the reported quarter amounted to $366 million, up 12.7% from the prior-year quarter. The gross margin was 37.2% compared with the year-ago quarter’s 32.4%.
SG&A expenses totaled $176 million, which declined 7.6% from the prior-year quarter’s $190 million. Research and development expenses were up 1.7% year over year to $23.5 million.
The operating income in the quarter was $167 million, up 49.6% year over year. The adjusted segmental operating income increased 8% year over year to $198 million. The adjusted segment margin was 20.1% in the reported quarter compared with the year-ago quarter’s 18.2%.
Segment Performances
Net sales in the Flow segment totaled $378.5 million, up 0.7% from the prior-year quarter. Core sales dipped 1% in the quarter under review. Our estimate for the segment’s net sales was $377.6 million for the quarter.
Operating earnings for the segment dipped 0.5% year over year to $65 million. Our estimate for the segment’s operating profit was $66.4 million.
Net sales in the Water Solutions segment declined 4.9% year over year to $269.6 million. Core sales were down 4% year over year in the quarter. Our estimate for the segment’s net sales was $274 million for the quarter. The segment’s earnings were $52 million compared with $45 million reported in the year-ago quarter. The figure was lower than our estimate of $65.8 million.
Net sales in the Pool segment totaled $336 million in the quarter, down 2% from the year-ago quarter. Core sales were also down 2% from the prior-year quarter. Our estimate for the segment’s net sales was $320.6 million.
Operating earnings for the Pool segment rose 5% year over year to $105 million. Our estimate for the segment’s operating income was $87.2 million.
Cash Flow & Balance Sheet Updates
Pentair had cash and cash equivalents of around $170 million at the end of 2023 compared with $109 million at 2022 end. Net cash generated from operating activities was $621 million in 2023 compared with $364 million in 2022. The company had a long-term debt of $1.99 billion as of Dec 31, 2023, down from $2.32 million as of Dec 31, 2022.
On Dec 11, 2023, Pentair announced that it had raised its quarterly dividend payout by 5% to 23 cents per share. The dividend will be paid on Feb 2, 2024, to shareholders of record at the close of the business on Jan 19, 2024. This marks the 48th consecutive year of dividend increase.
2023 Performance
Pentair reported adjusted EPS of $3.75 for 2023, beating the Zacks Consensus Estimate of $3.74 per share. Earnings were up 2% compared with the 2022 figure of earnings of $3.68 per share. Pentair had earlier provided an EPS guidance in the range of $3.70 to $3.75 for 2023. Including one-time items, EPS was $3.75 compared with the $2.92 in 2022.
Net sales dipped 0.4% year over year to $4.1 billion but beat the Zacks Consensus Estimate of $4.09 billion. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 5%.
Guidance for 2024
Pentair expects adjusted EPS of $4.15-$4.25 for 2024. Sales growth for the year is expected to be between 2% and 3% on a reported basis.
For the first quarter of 2024, the company expects adjusted EPS of 88-91 cents. Pentair anticipates current-quarter sales to be down 2-3% from the prior-year quarter’s reported figure.
Price Performance
Pentair stock has gained 44.5% over the past year compared with the industry’s 1.6% growth.
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Zacks Rank and Stocks to Consider
Pentair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Cintas Corporation (CTAS - Free Report) , Eaton Corporation (ETN - Free Report) and A. O. Smith Corporation (AOS - Free Report) , carrying a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cintas’ fiscal 2024 EPS is pegged at $14.57. The estimate indicates year-over-year growth of 12.2%. The consensus estimate for 2024 earnings has gone up 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 3.5%. CTAS shares have rallied 38% over the past year.
Eaton has an average trailing four-quarter earnings surprise of 4.2%. The Zacks Consensus Estimate for ETN’s fiscal 2024 earnings is pegged at $10.00 per share, which indicates year-over-year growth of 10.8%. The estimate has moved up 0.3% in the past 60 days. The company’s shares have gained 55% in a year.
The Zacks Consensus Estimate for A. O. Smith’s 2024 earnings is pegged at $4.03 per share, suggesting year-over-year growth of 6.3%. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 6.3%. The company has a trailing four-quarter average earnings surprise of 14%. AOS shares have gained 37% in a year.
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| 2024-01-31T00:00:28Z
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Coastal Financial Corporation (CCB - Free Report) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -29.79%. A quarter ago, it was expected that this company would post earnings of $0.87 per share when it actually produced earnings of $0.75, delivering a surprise of -13.79%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Coastal Financial Corporation
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.
Coastal Financial Corporation shares have lost about 3.8% since the beginning of the year versus the S&P 500's gain of 3.3%.
What's Next for Coastal Financial Corporation?
While Coastal Financial Corporation 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 Coastal Financial Corporation: 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 $0.95 on $117.6 million in revenues for the coming quarter and $4.05 on $536.6 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, Banks - West is currently in the bottom 11% 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.
Central Pacific Financial (CPF - Free Report) , another stock in the same industry, has yet to report results for the quarter ended December 2023. The results are expected to be released on January 31.
This operator of Central Pacific Bank is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of -35.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Central Pacific Financial's revenues are expected to be $61.18 million, down 9.9% from the year-ago quarter.
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https://www.zacks.com/stock/news/2218056/coastal-financial-corporation-ccb-misses-q4-earnings-estimates
| 2024-01-31T00:00:34Z
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Freshworks (FRSH - Free Report) recently announced that it has inked a multi-year strategic collaboration agreement with Amazon Web Services (“AWS”). This collaboration, set to kick off in early 2024, aims to elevate Freshworks' capabilities by offering its comprehensive suite of solutions as Software-as-a-Service (SaaS) through the AWS Marketplace.
The AWS Marketplace serves as a digital hub, hosting thousands of software listings from independent software vendors (ISVs). With this collaboration, Freshworks aims to provide AWS customers with innovative ways to procure and leverage its solutions, including industry-specific, AI-powered business applications that will be hosted on AWS. This strategic move is expected to foster enhanced customer and employee experiences, ultimately helping businesses operate more efficiently in the era of artificial intelligence.
The collaboration emphasizes the synergy between Freshworks and AWS, combining the strengths of both entities to empower businesses to deliver superior customer and employee experiences.
AWS and Freshworks have previously established multiple integrations to provide customers with a seamless experience in managing and utilizing AWS resources alongside Freshworks solutions. More than 500 shared customers currently benefit from this integration, actively using Freshworks products in conjunction with AWS services such as Amazon Connect, Amazon CloudWatch, Amazon EventBridge, AWS Lambda and more.
Freshworks' commitment to excellence has been recognized by AWS through the attainment of various competencies, including AWS Retail Competency, Small and Medium Business Software Competency and AWS Cloud Operations Competency status. Freshworks is a valued member of the AWS Partner Network and an AWS Public Sector Partner. Furthermore, the company actively participates in the AWS ISV Accelerate program and AWS Global Startup program, offering its solutions in the AWS Marketplace.
Freshworks’ Prospects Remain Bright
Freshworks shares have jumped 24.8% in the past six months, outperforming the Zacks Computer & Technology sector’s return of 13.5%. It has been benefiting from a strong portfolio and a strong partner base that helped in attracting new clients.
Freshworks has expanded its portfolio with the launch of an AI-powered Customer Service Suite that combines Freshchat, Freshdesk and its generative AI, Freddy AI. Solutions like Freddy Self-Service, Freddy Copilot and Freddy Insights are expected to drive top-line growth.
Expanding partner base is noteworthy. Freshworks recently announced an integration with Zuper, which will help it enhance customer relationships and experiences for businesses with field service teams.
The Freshworks-Zuper integration is now available on the Freshworks Marketplace, which is powered by the Freshworks Neo platform. The platform allows developers to easily build and publish apps that integrate with the Freshworks suite of products.
The company benefits from its partnership with Microsoft (MSFT - Free Report) . Its Freshservice customers are using more Microsoft Teams as adoption has seen an average increase of 42% over the past three years.
The increase can be attributed to the integration of the generative-AI-powered Virtual Agent within Freshservice, an IT service management solution and Microsoft Teams’ ServiceBot. These give employees round-the-clock support and can facilitate rapid resolution of their needs within Microsoft Teams.
Freshworks expects fourth-quarter 2023 revenues between $156.7 million and $159.3 million, indicating 18-20% year-over-year growth. Earnings are expected to be between 4 cents and 6 cents per share.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $158.11 million, suggesting 18.73% year-over-year growth. The consensus mark is pegged at 5 cents, unchanged over the past 60 days.
Zacks Rank & Stocks to Consider
Freshworks currently has a Zacks Rank #3 (Hold).
BlackLine (BL - Free Report) and CrowdStrike (CRWD - Free Report) are some better-ranked stocks in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long term earnings growth rate for BlackLine and CrowdStrike is pegged at 50.56% and 36.07%, respectively.
Shares of BL and CRWD have returned 7.2% and 86% in the past six months, respectively.
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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| 2024-01-31T00:00:45Z
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Shares of Glaukos Corporation (GKOS - Free Report) scaled a new 52-week high of $94.24 on Jan 29, before closing the session marginally lower at $94.17.
Over the past year, this Zacks Rank #3 (Hold) stock has surged 91.9% compared with the 3.4% rise of the industry and the S&P 500’s 21.5% growth.
The company’s expected growth rate of 8.6% for 2024 compares with the industry’s growth projection of 19.5%. Glaukos’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.7%.
Glaukos is witnessing an upward trend in its stock price, prompted by its strength in its flagship iStent. The optimism led by a solid third-quarter 2023 performance and robust business performances are expected to contribute further. However, vendor uncertainty and pipeline setbacks continue to concern the company.
Image Source: Zacks Investment Research
Let’s delve deeper.
Key Growth Drivers
Strength in iStent: Investors are optimistic about Glaukos’ prospects with respect to its iStent. The company advanced the commercial rollout of iStent inject W during the first quarter of 2022 in key international markets, including Australia, Japan and several European countries. The product has received stand-alone indication approval in Australia and regulatory approval in India, along with registering continued progress across many of the key market access initiatives. New local coverage determinations proposed in June 2023 are likely to remove certain ophthalmic goniotomy and canaloplasty procedures from coverage that will likely have a positive impact on the iStent business.
Robust Business Performances: Investors are optimistic about Glaukos’ sales, which returned to growth following the declining trend in 2022. This reflected an improving macro environment coupled with the launches of several new products in the past few quarters. Continued strong demand across international glaucoma and Corneal Health franchises will be key topline drivers in the rest of 2023. Moreover, the commercial launch of iStent infinite earlier in 2023 is boosting the U.S. glaucoma franchise, which will drive growth in the upcoming few quarters.
Strong Q3 Results: Glaukos’ robust third-quarter 2023 results raise investors’ optimism. The company registered solid year-over-year top-line and segmental performances.
Downsides
Pipeline Setbacks: Although Glaukos has a promising pipeline, it has faced setbacks with clinical development or regulatory activities. Any potential clinical or regulatory setbacks can lead to an adverse impact on the company’s share price, thereby hurting investors’ wealth. The FDA denied approval to a pre-market approval application for ab-externo device for glaucoma, MicroShunt. The company is currently evaluating alternate regulatory pathways for approval, and commercial launch in the United States remains uncertain.
Vendor Uncertainty: Glaukos currently relies on a limited number of third-party suppliers, in some cases sole suppliers, to supply components for the iStent, the iStent inject models and other pipeline products. If any one or more of these suppliers cease to provide the company with sufficient quantities of components or drugs in a timely manner or on acceptable terms, the company would have to seek alternative sources of supply.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 31.5% compared with the industry’s 5.6% rise in the past year.
Merit Medical, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 11.5%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, with the average being 14.4%.
Merit Medical has gained 12.5% compared with the industry’s 8.9% rise in the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.9%.
Integer Holdings’ shares have rallied 54.8% compared with the industry’s 3.4% rise in the past year.
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| 2024-01-31T00:00:52Z
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Vuzix (VUZI - Free Report) has revealed that its M400 smart glasses now feature the NTT XR Real Support solution, backed by NTT QONOQ. NTT XR Real Support is an extended reality-based solution, which is developed by Nippon Telecommunication Technology DOCOMO’s wholly-owned subsidiary, NTT QONOQ.
This latest collaboration focuses on solving the challenges of technical transfer, manpower shortage and safety gaps. The solution delivers web conferencing tools and Mixed Reality functions to provide support for on-site work. Since the launch of the M400 smart glass in 2019, Vuzix has partnered with multiple companies, including Microsoft (MSFT - Free Report) , AMA and PTC (PTC - Free Report) , to enhance its capabilities.
VUZI partnered with MSFT to leverage the Microsoft Teams application that was focused on solving the challenges of remote work. Together, the companies concentrated on enabling the remote workforce with innovative touchpad-based ways to chat, call and share files.
Vuzix and AMA worked together to fast-track digital transformation for industrial and healthcare clients. The Vuzix M400 smart glasses were integrated into the AMA XpertEye remote assistance products, enabling hands-free collaboration with voice control in XpertEye Essential tools. This also included seamless remote assistance in the XpertEye Advanced platform using the Vuzix M400 smart glass, which is connected to a dedicated smartphone.
The company also collaborated with PTC and integrated Vuforia Engine into the smart glasses. Supported by Vuforia Engine, the smart glasses leveraged the Qualcomm Snapdragon XR1 platform and Android 8.1 OS. This collaboration was aimed at advancing the adoption of augmented reality in industries to digitally enhance products, processes and workforce.
Vuzix is partnering with multiple industry leaders to enhance the capabilities of smart glass offerings. For instance, the company recently partnered with Atomistic to further innovate its glass offerings by implementing the usage of micro-LEDs. The company is innovating its smart glasses by using waveguide technology and micro-LEDs to reduce the eye glow in its products. VUZI considers this innovation to be a major step toward further popularising smart glasses.
The company has a long lineup of smart glasses and is one of the leading innovators in the enterprise smart glasses space. According to Grand View Research, VUZI will benefit from the global smart glass market, which is projected to witness a compound annual growth rate of 27.1% from 2023 to 2030.
Zacks Rank
Vuzix and PTC carry a Zacks Rank #2 (Buy) each, whereas Microsoft has a Zacks Rank #3 (Hold) at present. Shares of VUZI have plunged 66% over the past year, while PTC and MSFT have returned 37% and 65.3%, respectively.
Other Stock to Consider
Arista Network (ANET - Free Report) is another top-ranked stock from the broader technology sector, which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Network’s fourth-quarter 2023 earnings has been revised by a penny northward to $1.70 per share in the past 90 days. Shares of ANET have rallied 113.9% in the past year.
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https://www.zacks.com/stock/news/2218060/vuzix-vuzi-m400-smart-glasses-feature-ntt-xr-support-solution
| 2024-01-31T00:00:58Z
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In a shareholder-friendly move, GATX Corporation (GATX - Free Report) announced a hike in its dividend payout. GATX’s board of directors has announced a dividend hike of almost 5.5%, thereby raising its quarterly cash dividend from 55 cents per share to 58 cents. The raised dividend will be paid out on Mar 31, 2024, to all its shareholders of record as of Mar 1, 2024. The move reflects GATX’s intention to utilize free cash to enhance its shareholders’ returns.
GATX, which has been paying regular dividends since 1919, holds an impressive record with respect to dividends. Notably, 2024 marks the 106th consecutive year of GATX paying out dividends.
Robert C. Lyons, president and chief executive officer of GATX, stated, "In the past decade alone, GATX has invested $9.7 billion in our business while also returning over $1.5 billion to shareholders through dividends and share repurchases. This dividend increase reflects the board’s positive view of GATX’s long-term outlook, the strength and quality of our cash flows, and the Company’s ongoing commitment to shareholders."
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like GATX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
GATX management’s decision to increase its quarterly dividend payout reflects the company’s commitment to boosting shareholder value apart from underlining confidence in its business. We believe such shareholder-friendly initiatives boost investor confidence and positively impact thisZacks Rank #2 (Buy) stock bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATX is not the only player from theZacks Transportation sector that has rewarded its shareholders with dividend payouts or share buyback programs. To name a few, on Jan 23, 2024, Canadian National Railway Company’s (CNI - Free Report) board of directors approved a 7% hike in the 2024 dividend on the company's common shares outstanding and the repurchase of its shares as per a new normal course issuer bid (Bid).
Concurrent with the fourth quarter of 2023 earnings release, on Jan 19, 2024, J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) board of directors approved a dividend hike of 2%, thereby raising its quarterly cash dividend from 42 cents per share to 43 cents. The raised dividend will be paid out on Feb 23, 2024, to all its shareholders of record as of Feb 9, 2024.
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| 2024-01-31T00:01:05Z
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Broadridge Financial Solutions, Inc. (BR - Free Report) is set to report its second-quarter fiscal 2024 results on Feb 1, before the bell.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an average surprise of 5.4%.
Q2 Expectations
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.39 billion, which indicates a 7.7% increase from the year-ago quarter’s reported figure. Expected growth is likely to have been driven by internal growth and new businesses.
Our estimate for net revenues at Investor Communication Solutions is pegged at $991.3 million, which suggests a year-over-year increase of 7.8%. Our estimate for net revenues in the Global Technology and Operations segment is pegged at $396.6 million, which indicates a year-over-year rise of 6.2%.
The consensus mark for earnings in the to-be-reported quarter is pegged at 88 cents per share, which suggests a year-over-year decline of 3.3%. We expect an increase in operating expenses in the quarter, weighing on the bottom line.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Broadridge 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Broadridge has an Earnings ESP of 0.00% and a Zacks Rank #2.
Stocks to Consider
Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Gartner (IT - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $1.59 billion, indicating growth of 5.4%. For earnings, the consensus mark stands at $2.78, 24.6% lower than the year-ago quarter. The company beat the Zacks Consensus Estimate in all the past four quarters, with an average surprise of 34.4%.
IT currently has an Earnings ESP of +0.81% and a Zacks Rank #2. The company will declare its fourth quarter results on Feb 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fiserv (FI - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $4.69 billion, indicating growth of 7.5%. For earnings, the consensus mark is pegged at $2.15, 12.6% higher than the year-ago quarter. The company beat the Zacks Consensus Estimate in two of the past four quarters and matched on the other two instances. It has an average surprise of 0.58%.
FI currently carries an Earnings ESP of +0.05% and a Zacks Rank #2. The company will declare its fourth quarter results on Feb 6.
Rollins (ROL - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $750.09 million, indicating growth of 13.4%. For earnings, the consensus mark is pegged at 21 cents, 23.5% higher than the year-ago quarter. The company beat the Zacks Consensus Estimate in three of the past four quarters and matched on the other instance. It has an average surprise of 7.2%.
ROL currently carries an Earnings ESP of +2.44% and a Zacks Rank #3. The company will declare its fourth quarter results on Feb 14.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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| 2024-01-31T00:01:11Z
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Pfizer (PFE - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 10 cents in contrast to the Zacks Consensus Estimate of a loss of 19 cents per share. In the year-ago quarter, the company had recorded earnings of $1.41 per share.
Revenues came in at $14.25 billion, down 41% from the year-ago quarter on a reported basis, reflecting an operational decline of 42% but a currency benefit of 1%. Total revenues missed the Zacks Consensus Estimate of $14.37 billion.
The revenue decline, as expected, was due to a steep drop in revenues from its COVID-19 products, Comirnaty and Paxlovid, on lower demand.
Pfizer records direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for the COVID-19 vaccine, Comirnaty, and product revenues from its oral antiviral pill for COVID, Paxlovid.
International revenues declined 39% to $9.66 billion. U.S. revenues declined 46% to $4.59 billion.
Adjusted selling, informational and administrative (SI&A) expenses rose 1% (operationally) in the quarter to $4.47 billion. Adjusted R&D expenses declined 24% to $2.77 billion.
Segment Discussion
Pfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. Sales of the Primary Care segment declined 60% operationally to $6.99 billion. The Specialty Care unit recorded sales of $3.95 billion, up 11%. Sales of Oncology declined 2% to $2.93 billion.
Primary Care
In Primary Care, direct sales and alliance revenues from BioNTech for Comirnaty were $5.36 billion in the quarter, down 54% year over year. Comirnaty sales declined 57% in the United States due to lower contracted deliveries to the U.S. government following the commercial transition in September 2023. Comirnaty sales declined 53% outside U.S. markets due to lower demand and contracted deliveries. Comirnaty sales missed our estimate of $5.57 billion.
Paxlovid revenues declined to negative $3.2 billion in the quarter due to a non-cash revenue reversal of $3.5 billion recorded in the fourth quarter of 2023 for the return of an estimated 6.5 million U.S.-government EUA-labeled treatment courses.
Alliance revenues and direct sales from Bristol-Myers for blood-thinning treatment Eliquis rose 9% to $1.61 billion. Alliance revenues from Eliquis beat the Zacks Consensus Estimate of $1.51 billion as well as our model estimate of $1.49 billion.
Global Prevnar family revenues declined 7% to $1.61 billion due to lower demand for pediatric patients in certain emerging markets and unfavorable timing of customer orders. The Prevnar family includes revenues from Prevnar 13/Prevenar 13 (pediatric and adult) and Prevnar 20 (adult and pediatric). Prevnar revenues missed the Zacks Consensus Estimate of $1.89 billion as well as our model estimate of $1.76 billion.
Prevnar sales declined 3% in the United States and 14% in international markets.
Newly acquired product Nurtec ODT/Vydura contributed $282 million in the fourth quarter compared with $253 million in the previous quarter. Nurtec ODT/Vydura was added to Pfizer’s portfolio with the acquisition of the majority of Biohaven in 2022.
Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $515 million in the fourth quarter compared with $375 million in the previous quarter. Abrysvo was approved to help protect older adults and infants through maternal immunization in the United States as well as the EU in 2023. Abrysvo sales slightly beat our model estimate of $510 million.
Specialty Care
Global Vyndaqel family revenues of $961 million rose 39% year over year. Vyndaqel family includes global revenues from Vyndaqel as well as revenues for Vyndamax in the United States and Vynmac in Japan. Vyndaqel family sales beat the Zacks Consensus Estimate of $945.0 million as well as our model estimate of $921.0 million.
Xeljanz sales were flat at $493 million. Enbrel revenues declined 12% to $203 million due to continued biosimilar competition in key European markets and Japan.
New product, Oxbryta, generated sales of $96 million in the fourth quarter of 2023 compared with $85 million in the previous quarter. Oxbryta was added with the October 2022 acquisition of Global Blood Therapeutics.
Another new drug, Cibinqo, approved in 2022, recorded revenues of $37 million in the fourth quarter, the same as in the previous quarter.
Oncology
In Oncology, Ibrance revenues declined 13% year over year to $1.19 billion. Ibrance demand trends are being hurt globally due to competitive pressure. Ibrance revenues missed the Zacks Consensus Estimate of $1.21 billion.
Xtandi recorded alliance revenues of $314 million in the quarter, down 2% year over year. Inlyta revenues were $263 million in the quarter, up 9%.
The $43 billion acquisition of Seagen in December 2023 added four antibody-drug conjugates or ADCs — Adcetris, Padcev, Tukysa and Tivdak — to Pfizer’s cancer portfolio. These drugs contributed $46 million, $52 million, $17 million and $4 million, respectively, to Pfizer’s oncology revenues in the fourth quarter, subsequent to the closing of the acquisition on Dec 14, 2023.
Full-Year 2023 Results
Full-year 2023 sales declined 42% to $58.5 billion, beating the Zacks Consensus Estimate of $60.07 billion. Sales were within the guided range of $58.0 to $61.0 billion. On an operational basis, sales declined 41% in the year. Excluding COVID-19 products, Paxlovid and Comirnaty, revenues grew 7% operationally, within the full-year 2023 non-COVID operational revenue growth target of 6% to 8%.
Adjusted earnings for 2023 were $1.84 per share, down 72% year over year. Earnings beat the Zacks Consensus Estimate of $1.38 per share as well as the guided range of $1.45 to $1.65.
2024 Guidance
Pfizer maintained its revenue and profit guidance for 2024 that it had provided in December 2023. Pfizer’s guidance for 2024 includes its expectations from the acquisition of Seagen.
Pfizer expects total revenues to be in the range of $58.5 to $61.5 billion in 2024, almost flat from 2023 levels.
The 2024 revenue guidance includes $8 billion in potential combined revenues for Paxlovid and Comirnaty. The $8 billion combined guidance comprises $5 billion in sales from Comirnaty and $3 billion from Paxlovid.
The total revenue guidance also includes $3.1 billion in expected revenues from Seagen.
The total revenue guidance includes approximately $1 billion due to the reclassification of Pfizer’s royalty income from Other (Income)/Deductions into the Revenue line.
Excluding revenues from Seagen and the abovementioned reclassification, the revenue guidance for legacy Pfizer is $54.5 to $57.5 billion, which indicates a decline from the 2023 level.
Excluding COVID-19 products but including Seagen, Pfizer expects its revenues to rise 8% to 10% on an operational basis in 2024. Excluding the contribution from COVID-19 products as well as Seagen, operational sales are expected to increase 3%-5%.
Adjusted earnings are expected in the range of $2.05 to $2.25 per share, including the expected impact of financing costs related to the Seagen acquisition. This range includes the expected impact of 40 cents dilution from the Seagen acquisition. Adjusted earnings for legacy Pfizer are expected in the range of $2.45 to $2.65 per share.
Pfizer expects cost cuts and internal restructuring, including layoffs, to deliver savings of $4 billion in 2024. Research and development expense is expected in the range of $11.0 to $12.0 billion in 2024. SI&A spending is expected in the range of $13.8 to $14.8 billion. The adjusted tax rate is expected to be approximately 15% in 2024.
Our Take
Pfizer’s fourth-quarter results were mixed as it beat estimates for earnings while missing the same for sales. The company reaffirmed its 2024 sales and earnings guidance provided on Dec 13, 2023.
With the end of the pandemic, sales of Pfizer’s COVID-19 products declined steeply in 2023. However, sales of some key non-COVID products like Vyndaqel/Vyndamax and Eliquis alliance revenues, newly acquired products like Nurtec and new product launches like Abrysvo provided some top-line support. Revenues from Pfizer’s non-COVID products rose 8% operationally in the fourth quarter.
Pfizer’s shares were up more than 1% in pre-market trading. In the past year, Pfizer’s stock has declined 36.9% against an increase of 19.8% for the industry.
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Pfizer’s key new product approvals/launches are Abrysvo RSV vaccine, Velsipity (etrasimod), a once-daily pill for ulcerative colitis, Penbraya pentavalent meningococcal vaccine, Zavzpret nasal spray for migraine, Cibinqo for atopic dermatitis, Litfulo (ritlecitinib) for severe alopecia areata, Elrexfio (elranatamab) for relapsed/refractory multiple myeloma and Ngenla for pediatric growth hormone deficiency.
Pfizer expects better non-COVID operational revenue growth in the future quarters, driven by its in-line products like Vyndaqel family and Prevnar, new launches like Abrysvo, Velsipity, Penbraya, Zavzpret as well as newly acquired products, including those acquired from Seagen.
Zacks Rank and Stocks to Consider
Pfizer has a Zacks Rank #5 (Strong Sell) currently.
Some better-ranked large drugmakers worth considering are Regeneron Pharmaceuticals (REGN - Free Report) and Novo Nordisk (NVO - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Regeneron’s 2024 earnings have risen from $41.60 per share to $44.23 per share. Regeneron’s stock has surged 29.8% in the past year.
Regeneron beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 12.34%.
Estimates for Novo Nordisk’s 2024 earnings per share have increased from $3.15 to $3.32 over the past 60 days. NVO’s stock has surged 56.8% in the past year.
Earnings of Novo Nordisk beat estimates in two of the last four quarters, missed in one and matched estimates in one, delivering an earnings surprise of 0.58% on average.
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https://www.zacks.com/stock/news/2218064/pfizer-pfe-q4-earnings-top-revenues-miss-on-covid-sales-slump
| 2024-01-31T00:01:17Z
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Pre-market futures are giving back some of the gains we’ve seen in the past few days of trading — ones which have pumped the Dow and S&P 500 to fresh all-time highs. At this hour, the Dow is -70 points, the S&P is -10 and the tech-heavy Nasdaq is -30 points. But there are key data points today — which have already begun, but continue until after today’s regular trading session closes — that may shift the trade winds as the day moves along.
General Motors ((GM - Free Report) shares shot up more than +7% on its Q4 results, with both top and bottom lines easily surpassing expectations: earnings of $1.24 per share on $42.98 billion in sales outpaced the Zacks consensus $1.12 and $40.78 billion, respectively. Also, a big increase in earnings guidance — expectations between $8.50-9.50 per share is well above the $7.53 previously anticipated — have helped the stock in the pre-market hours. The company’s China business showed -34% equity income (-54% in Q4 alone), but a $1 billion reduction in its automated Cruise project will help allocate assets elsewhere.
Pfizer ((PFE - Free Report) , on the other hand, swung to a big positive surprise in its Q4 report this morning — earnings of +10 cents reverses expectations for -19 cents per share — on $14.25 billion in quarterly revenues, which were a tad light of the Zacks consensus, by -0.80%. Shares are up +1% on the news in early trading today, however, though the stock had already sold off more than -4% year to date, -36% over the past year. The Big Pharma staple looks to have new market entries take up some slack from declining Covid vaccine revenues.
United Parcel Service ((UPS - Free Report) beat Q4 earnings estimates by 3 cents to $2.47 per share, but that is about the extent of the company’s good news this morning. Revenues came up short of the $25.3 billion expected, to $24.92 billion, as the company announces job cuts amounting to 12K employees pending. That said, revenue guidance for the full year are up from projections to a range of $92-94.5 billion. UPS has not posted an earnings miss since Q1 2020, but shares are -5.5% this morning.
Case-Shiller Home Prices for November of last year (a metric clearly in arrears, but one which is widely seen as the most accurate in the housing industry) came in slightly below expectations to +5.4% on the 20-year survey, and -0.2% month over month, for the first lower print on overall home sales in 10 months. Leading the way in home price growth were Detroit, +8.2%, and San Diego, +8.0%. Those experiencing the biggest decline in this report were comparatively modest: -1.4% in Seattle and -1.3% for San Francisco.
After today’s open we’ll see more key data, including the first entry to this period’s Jobs Week: Job Openings and Labor Turnover Survey (JOLTS) for December. Expectations are for a steady 8.8 million job openings, in-line with the previous two months and consistent with a need to hire for companies in this economy. That said, we’re way down from the 11 million-plus openings we were seeing as recently as late 2022. Also, Consumer Confidence for January is expected to rise to 115 from the previous month’s print 110.7, indicating continued strength in the perception of the American consumer.
After the closing bell, the Q4 earnings cavalcade rolls along, with marquee tech names like Microsoft ((MSFT - Free Report) , Alphabet ((GOOGL - Free Report) and Advanced Micro Devices ((AMD - Free Report) reporting results. All three of these Zacks Rank #3 (Hold)-rated stocks are expecting double-digit earnings growth, with Microsoft and Alphabet also anticipated to bring in double-digit growth on their top line (AMD +9%).
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https://www.zacks.com/stock/news/2218065/home-prices-decreased-in-november
| 2024-01-31T00:01:23Z
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Trane Technologies plc (TT - Free Report) is set to report fourth-quarter 2023 earnings on Feb 1, 2024, before the opening bell.
The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the past four quarters, delivering an average surprise of 6.8%.
Expectations This Time Around
The consensus estimate for TT’s revenues in the to-be-reported quarter is pegged at $4.42 billion, indicating 8.6% growth from the year-ago figure. The top line is expected to have benefited from improved customer demand in the Americas, Asia Pacific, and Europe, the Middle East and Africa (EMEA) segments.
We expect America’s revenues to jump 7.6% from the year-ago actual figure to $3.38 billion. Our prediction for revenues from EMEA is pegged at $627.9 million, indicating 12.4% year-over-year growth. Asia Pacific revenues are expected to be $396.9 million, implying a 5.7% rise from the prior-year levels.
The consensus mark for TT's earnings per share in the to-be-reported quarter is pegged at $2.13 per share, implying 17% year-over-year growth. The bottom line is likely to have gained from operating strength.
What Our Model Says
Our proven model predicts an earnings beat for Trane Technologies 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Trane Technologies has an Earnings ESP of +0.77% and a Zacks Rank of 3.
Other Stocks to Consider
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Gartner (IT - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $1.59 billion, indicating growth of 5.4%. For earnings, the consensus mark is $2.78 per share, down 24.6% from the year-ago quarter. The company beat the consensus estimate in each of the past four quarters, with an average surprise of 34.4%.
IT currently has an Earnings ESP of +0.81% and a Zacks Rank of 2. The company will declare its fourth-quarter results on Feb 6.
Fiserv (FI - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $4.69 billion, indicating growth of 7.5%. For earnings, the consensus mark is pegged at $2.15 per share, up 12.6% from the year-ago quarter. The company beat the consensus estimate in two of the past four quarters and matched on the other two instances. It has an average surprise of 0.58%.
FI currently carries an Earnings ESP of +0.05% and a Zacks Rank of 2. The company will declare its fourth-quarter results on Feb 6.
Rollins (ROL - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $750.09 million, indicating growth of 13.4%. For earnings, the consensus mark is pegged at 21 cents per share, up 23.5% from the year-ago quarter. The company beat the consensus estimate in three of the past four quarters and matched on the other instance. It has an average surprise of 7.2%.
ROL currently carries an Earnings ESP of +2.44% and a Zacks Rank of 3. The company will declare its fourth-quarter results on Feb 14.
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https://www.zacks.com/stock/news/2218066/what-to-expect-from-trane-technologies-tt-q4-earnings?
| 2024-01-31T00:01:30Z
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Malibu Boats (MBUU - Free Report) reported $211.07 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 37.7%. EPS of $0.57 for the same period compares to $1.83 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $219.29 million, representing a surprise of -3.75%. The company delivered an EPS surprise of +11.76%, with the consensus EPS estimate being $0.51.
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 Malibu Boats performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Unit Volume by Segment - Malibu: 606 versus the two-analyst average estimate of 791.
- Unit Volume by Segment - Cobalt: 362 compared to the 343 average estimate based on two analysts.
- Net Sales per Unit - Total: $153,732 compared to the $143,176.50 average estimate based on two analysts.
- Unit Volume by Segment - Total: 1,373 versus the two-analyst average estimate of 1,549.
- Unit Volume by Segment - Saltwater Fishing: 405 compared to the 415 average estimate based on two analysts.
- Revenue by product- Cobalt: $52 million compared to the $49.35 million average estimate based on two analysts. The reported number represents a change of -30.7% year over year.
- Revenue by product- Saltwater Fishing: $82.70 million versus the two-analyst average estimate of $73.60 million.
- Revenue by product- Malibu: $76.40 million versus the two-analyst average estimate of $98.50 million. The reported number represents a year-over-year change of -51.7%.
Shares of Malibu Boats have returned -6.9% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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https://www.zacks.com/stock/news/2218070/malibu-boats-mbuu-reports-q2-earnings-what-key-metrics-have-to-say
| 2024-01-31T00:01:36Z
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For the quarter ended December 2023, Pfizer (PFE - Free Report) reported revenue of $14.25 billion, down 41.3% over the same period last year. EPS came in at $0.10, compared to $1.14 in the year-ago quarter.
The reported revenue represents a surprise of -0.80% over the Zacks Consensus Estimate of $14.36 billion. With the consensus EPS estimate being -$0.19, the EPS surprise was +152.63%.
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 Pfizer performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenues- Oncology- Ibrance; United States: $712 million versus $826.34 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -18.7% change.
- Revenues- Oncology- Ibrance- Total International: $405 million versus the four-analyst average estimate of $383.27 million. The reported number represents a year-over-year change of +0.5%.
- Revenues- Specialty Care- Inflectra- United States: $63 million versus the four-analyst average estimate of $57.63 million. The reported number represents a year-over-year change of +1.6%.
- Revenues- Specialty Care- Inflectra- Total International: $54 million versus $65.95 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -20.6% change.
- Revenues- Oncology- Inlyta- Worldwide: $263 million compared to the $256.07 million average estimate based on four analysts.
- Revenues- Specialty Care- Vyndaqel family- Worldwide: $961 million compared to the $945.42 million average estimate based on four analysts. The reported number represents a change of +41.3% year over year.
- Pfizer Biopharma- Total: $13.87 billion versus the four-analyst average estimate of $13.93 billion.
- Revenues- Specialty Care- Xeljanz- Worldwide: $493 million versus $489.07 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
- Revenue- Primary Care- Nurtec ODT/Vydura- Worldwide: $282 million versus the four-analyst average estimate of $251.43 million.
- Revenues- Primary Care- Comirnaty direct sales and alliance revenues - Worldwide: $5.36 billion versus the four-analyst average estimate of $5.58 billion.
- Revenues- Pfizer CentreOne- Worldwide: $363 million compared to the $331.31 million average estimate based on four analysts. The reported number represents a change of -1.4% year over year.
- Revenue- Specialty Care- Worldwide: $3.95 billion versus $3.85 billion estimated by four analysts on average.
Shares of Pfizer have returned -4.6% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
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https://www.zacks.com/stock/news/2218071/pfizer-pfe-q4-earnings-taking-a-look-at-key-metrics-versus-estimates
| 2024-01-31T00:01:42Z
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Meta Platforms (META - Free Report) is set to report its fourth-quarter 2023 results on Feb 1.
The company expects total revenues between $36.5 billion and $40 billion for the fourth quarter of 2023. Favorable forex is expected to aid year-over-year top-line growth by roughly 2%.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $38.93 billion, indicating an increase of 21.02% from the year-ago quarter’s reported figure.
The consensus mark for earnings stands at $4.84 per share, which has increased 0.83% over the past 30 days, suggesting growth of 61.33% from the figure reported in the year-ago quarter.
Meta’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 27.5%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Meta’s fourth-quarter top line is expected to have benefited from Facebook’s expanding user base (more than 3.049 billion daily active users) and growing adoption of reels. Increased engagement for Meta’s offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.
Effective usage of AI has been helping the company keep its users engaged. AI-driven feed recommendations have been a key catalyst.
Reels have been a major growth driver for Instagram. The company stated that Reels has driven a more than 40% increase in time spent on Instagram since its launch. It remains focused on growing Reels as part of its overall portfolio of video services, which make up more than half of time spent on Facebook and Instagram.
Higher engagement levels are helping to steady its user growth across all regions, particularly Asia Pacific.
The Zacks Consensus Estimate for Asia Pacific Daily Active Users (DAUs) in the fourth quarter is pegged at 906 million, indicating 6.1% year-over-year growth. The consensus estimate for the Rest of World is expected to have increased 5.8% to 680 million DAUs.
Regarding Monthly Active Users (MAUs), the Zacks Consensus Estimate for Asia Pacific is pegged at 1.361 billion, suggesting 2.9% year-over-year growth. The consensus mark for the Rest of World is expected to have risen 3.7% to 1.361 billion MAUs.
The Zacks Consensus Estimate for Meta’s worldwide DAU is pegged at 2.093 billion, indicating 4.7% growth year over year. The consensus estimate for worldwide MAU is pegged at 3.061 billion, indicating a 3.3% year-over-year increase.
Nevertheless, Meta’s top line is expected to reflect the negative impact of the challenging macroeconomic environment and high inflation that is anticipated to have kept ad spending budgets under pressure. This is likely to have weighed on ad revenues in the to-be-reported quarter.
In the third quarter of 2023, Meta’s ad revenues represented 99.1% of total revenues, which increased 23.5% year over year to $33.64 billion.
The Zacks Consensus Estimate for fourth-quarter 2023 ad revenues is pegged at $37.88 billion, indicating 21.2% year-over-year growth.
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. That is the exact case here.
Meta has an Earnings ESP of +0.51% and currently has a Zacks Rank #2. 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 other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:
Shopify (SHOP - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify is set to announce fourth-quarter 2023 results on Feb 13. SHOP’s shares have gained 23.6% in the past six months.
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. TWLO’s shares have gained 13% 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 36.2% 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/2218072/meta-platforms-meta-to-report-q4-earnings-what-to-expect
| 2024-01-31T00:01:48Z
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Danaher Corporation’s (DHR - Free Report) fourth-quarter 2023 adjusted earnings (excluding 59 cents from non-recurring items) of $2.09 per share surpassed the Zacks Consensus Estimate of $1.90. The bottom line declined 17.7% year over year.
Danaher’s net sales of $6,405 million outperformed the consensus estimate of $5,990 million. However, the metric declined 10.2% year over year due to a decrease in sales of COVID-related products and weakness in the Biotechnology and Diagnostics segments.
Organic sales in the quarter decreased 11.5%. Foreign-currency translations and acquisitions had a positive impact of 1% and 0.5%, respectively, on quarterly sales. Base business core sales (adjusted) declined 4.5% in the quarter.
For 2023, Danaher reported net sales of $23.9 billion, declining 10.3% year over year. For the year, the company’s adjusted earnings came in at $7.58 per share compared with $9.71 in 2022.
Segmental Discussion in Q4
On Sep 30, 2023, Danaher completed the separation of its Environmental & Applied Solutions segment. It currently operates under the operating segments discussed below.
Revenues from the Life Sciences segment totaled $1.93 billion, down 1% year over year. Core sales dipped 4% year over year. Acquisitions/divestitures led to a 2.5% increase in sales. Operating profit was $235 million for the quarter, down 40% year over year. We expected the Life Sciences segment’s revenues to be $1.84 billion.
Revenues from the Diagnostics segment totaled $2.72 billion, down 8.5% year over year. Our estimate for revenues in the quarter was $2.37 billion. The downside was due to an 8.5% decline in core sales. Foreign currency or acquisitions did not have any material impact on sales. Operating profit was $766 million for the quarter, down 22.5% on a year-over-year basis.
Revenues from the Biotechnology segment totaled $1.76 billion, down 21% year over year. Our estimate for the quarter was $1.68 billion. Core sales dropped 22.5% for the segment. Operating profit was $416 million for the quarter, down 40% year over year.
Margin Profile
In the fourth quarter, Danaher’s cost of sales decreased 9.7% year over year to $2.63 billion. Gross profit of $3.78 billion fell 10.6% year over year. Gross margin in the quarter was 59% compared with 59.2% in the year-ago quarter.
Selling, general and administrative expenses of $2.04 billion, an increase of 11.3% on a year-over-year basis. Research and development expenses were $407 million, up nearly 1.8% year over year.
Danaher’s operating profit in the reported quarter dropped 33% year over year to $1.34 billion. Operating margin decreased to 20.9% from 28% in the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the fourth quarter, DHR had cash and equivalents of $5.86 billion compared with about $6 billion at 2022-end. Long-term debt was $16.7 billion at the end of the reported quarter compared with $19.1 billion at the end of December 2022.
Danaher generated net cash of $7.16 billion from operating activities in 2023 compared with $8.52 billion in the previous year. Capital expenditures totaled $1.38 billion in the same period, up 23.7% year over year. Adjusted free cash flow was $5.1 billion in 2023 compared with $6.5 billion in the previous year.
In 2023, DHR paid out dividends of $821 million, up around 0.4% on a year-over-year basis.
Outlook
For the first quarter of 2024, Danaher expects adjusted core revenues from continuing operations to decline in high-single digits on a year-over-year basis.
The same is anticipated to decrease in low-single digits on a year-over-year basis in 2024.
Zacks Rank & Stocks to Consider
Danaher presently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the same space:
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
ITT delivered a trailing four-quarter average earnings surprise of 8%. In the past 60 days, the Zacks Consensus Estimate for ITT’s 2023 earnings has increased by a penny. The stock has risen 32.8% in the past three months.
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 27.3%.
In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has remained steady. The stock has risen 12.4% in the past three months.
Crane Company (CR - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 25.1%.
In the past 60 days, the Zacks Consensus Estimate for Crane’s 2024 earnings has increased 0.6%. The stock has risen 20.9% in the past three months.
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https://www.zacks.com/stock/news/2218073/danaher-dhr-q4-earnings-beat-biotechnology-sales-dip-yy
| 2024-01-31T00:01:55Z
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MSCI Inc.'s (MSCI - Free Report) fourth-quarter 2023 adjusted earnings of $3.68 per share beat the Zacks Consensus Estimate by 11.85% and jumped 29.6% year over year.
Revenues increased 19.8% year over year to $690.1 million and beat the consensus mark by 5.04%. Organic revenues increased 14.7% year over year.
Recurring subscriptions of $505.4 million increased 16.8% year over year and accounted for 73.2% of revenues.
Asset-based fees of $145.1 million increased 15.9% year over year and contributed 21% of revenues.
Non-recurring revenues of $39.6 million surged 114.4% year over year and contributed 5.7% of revenues.
At the end of the reported quarter, average assets under management (AUM) were $1.468 trillion in ETFs linked to MSCI indexes.
The total retention rate was 93.6% in the quarter under review.
Top-Line Details
In the fourth quarter, Index revenues of $388 million beat the Zacks Consensus Estimate by 6.43% and increased 17.8% year over year. Recurring subscriptions, asset-based fees and non-recurring revenues increased 10.9%, 15.9% and 128.5% on a year-over-year basis, respectively.
Growth in recurring subscription revenues was primarily driven by strong growth from market-cap-weighted Index products.
Revenues from ETFs linked to MSCI equity indexes, mainly driven by an increase in average AUM, drove more than half of the increase in revenues attributable to asset-based fees. The balance of the increase was contributed by non-ETF indexed funds linked to MSCI indexes, driven by an increase in average AUM, as well as an increase in average basis point fees.
Analytics operating revenues of $164.7 million beat the consensus mark by 3.71%, and increased 10% year over year. Excluding the impact of foreign currency exchange rate fluctuations, Analytics’ operating revenue growth was 10.2%.
Recurring subscriptions and non-recurring revenues increased 8.9% and 71.5% on a year-over-year basis, respectively.
The increase in Analytics revenues was primarily driven by growth from recurring subscriptions related to both Equity Analytics and Multi-Asset Class products.
More than half of the growth in non-recurring revenues was driven by a large number of implementations that were completed in the quarter, and the remainder was driven by one-time deals
related to Multi-Asset Class products.
ESG and Climate segment’s operating revenues of $76.3 million lagged the consensus mark by 1.16% but increased 20% year over year. Excluding the impact of foreign currency exchange rate fluctuations and the Trove acquisition, ESG and Climate operating revenue growth was 14.5%. Trove contributed $0.8 million of revenues in the reported quarter.
Recurring subscriptions and non-recurring revenues increased 20.3% and 4.7% on a year-over-year basis, respectively.
The increase was primarily driven by strong growth from recurring subscriptions related to Ratings, Climate and Screening products.
All Other – Private Assets operating revenues, which primarily comprise the Real Assets operating segment and the Private Capital Solutions (formerly known as Burgiss), were $61.1 million, up 81.5% year over year. The figure beat the consensus mark by 9.02%.
Operating Details
Adjusted EBITDA increased 22.3% year over year to $414.6 million in the reported quarter. Adjusted EBITDA margin expanded 130 basis points (bps) on a year-over-year basis to 60.1%.
Total operating expenses increased 19.4% on a year-over-year basis to $319.4 million.
Adjusted EBITDA expenses were $75.5 million, up 16.1%, primarily reflecting higher compensation and incentive compensation expenses related to higher headcount.
Operating income improved 20.1% year over year to $370.7 million. The operating margin expanded 10 bps on a year-over-year basis to 53.7%.
Balance Sheet & Cash Flow
Total cash and cash equivalents, as of Dec 31, 2023, were $461.7 million compared with $928.6 million as of Sep 30, 2023.
Total debt was $4.5 billion as of Dec 31, unchanged sequentially. The total debt-to-adjusted EBITDA ratio (based on trailing twelve-month-adjusted EBITDA) was 3 times, within the management’s target range of 3-3.5 times.
Free cash flow was $367.1 million, up 24.5% year over year.
MSCI had $0.8 billion outstanding under its share-repurchase authorization as of Jan 29, 2024.
It paid out dividends worth $109.2 million in the fourth quarter. MSCI increased dividend payout by 15.9% to $1.60 per share for the first quarter of 2024.
Guidance
For 2024, MSCI expects total operating expenses in the range of $1.300-$1.340 billion.
Adjusted EBITDA expenses are expected between $1.130 billion and $1.160 billion.
Interest expenses are expected between $185 million and $189 million.
Net cash provided by operating activities and free cash flow is expected to be $1.33-$1.38 billion and $1.225-$1.285 billion, respectively.
Zacks Rank & Other Stocks to Consider
Currently, MSCI carries a Zacks Rank #2 (Buy).
MSCI shares have underperformed the Zacks Computer & Technology sector in the past six-month period. While MSCI shares have gained 0.5%, the Computer & Technology sector increased 12%.
Shopify (SHOP - Free Report) , Pinterest (PINS - Free Report) and AvidXchange (AVDX - Free Report) are some other top-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify shares have gained 23.6% in the past six-month period. SHOP is set to report its fourth-quarter 2023 results on Feb 13.
Pinterest shares have gained 35.1% in the past six-month period. PINS is set to report its fourth-quarter 2023 results on Feb 8.
AvidXchange shares have declined 7.8% in the past six-month period. AVDX is set to report its fourth-quarter 2023 results on Feb 28.
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https://www.zacks.com/stock/news/2218076/msci-q4-earnings-beat-recurring-subscriptions-rise-yy
| 2024-01-31T00:02:01Z
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Apple’s (AAPL - Free Report) first-quarter fiscal 2024 results, to be reported on Feb 1, are expected to reflect improving PC market, as well as steady growth in the Services business.
Apple expects Mac revenues to significantly accelerate compared with the September quarter’s reported figure.
For the Services segment, Apple expects average revenues per week to grow at a similar strong double-digit rate as it did during the September quarter.
The Zacks Consensus Estimate for fiscal first quarter Mac revenues are pegged at $7.77 billion, indicating 0.4% year-over-year growth.
Mac revenues are expected to have benefited from improvement in PC demand. Per Gartner’s latest report, 63.3 million PCs were shipped in the fourth quarter of calendar 2023, up 0.3% from the year-ago period.
Shipments from Acer, Apple, Lenovo (LNVGY - Free Report) and HP (HPQ - Free Report) gained 11.1%, 7.2%, 3.2% and 5.6%, respectively. Dell Technology’s (DELL - Free Report) shipments declined 8.3%.
Overall, Lenovo remained the top vendor, with a market share of 25.6%. HP held the second spot, with a market share of 22% in worldwide PC shipments. Dell’s market share was 15.8% in the fourth quarter of 2023.
Apple’s market share increased from 9.4% in fourth-quarter 2022 to 10% in fourth-quarter 2023.
Click here to know how Apple’s overall fiscal first-quarter results are likely to be.
Steady Services Growth to Aid Top Line
Apple’s Services business is expected to benefit from increasing user of the App Store and growing viewership of Apple TV+. Moreover, growing adoption of Apple Music, Apple Arcade, Apple News+ and Apple Card has been noteworthy.
Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow. It accounted for 24.9% of sales in fourth-quarter fiscal 2023.
Apple had more than 1 billion paid subscribers across its Services portfolio at the end of the fiscal fourth quarter. This is expected to have increased in the to-be-reported quarter, thanks to the growing installed base of Apple’s devices as well as the popularity of apps like Apple TV+.
The Zacks Consensus Estimate for first-quarter fiscal 2024 Services revenues is $23.398 billion, indicating 12.7% year over year.
iPad & Wearables Sales to Decline
Apple expects the year-over-year revenue growth for both iPad and Wearables, Home and Accessories to decelerate significantly from the September quarter due to a different timing of product launches.
The consensus mark for iPad revenues is pegged at $6.769 billion, indicating 28% year-over-year decline.
The Zacks Consensus Estimate for Wearables, Home & Accessories revenues of $11.271 billion, suggesting 16.4% year-over-year growth.
Apple currently has 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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| 2024-01-31T00:02:07Z
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Better pricing, exposure growth, diversified portfolio, solid retention, favorable renewals, reinsurance agreements and accelerated digitalization are likely to have benefited insurance industry players such as Aflac Incorporated (AFL - Free Report) , MetLife Inc (MET - Free Report) , AXIS Capital Holdings Limited (AXS - Free Report) , Selective Insurance Group, Inc. (SIGI - Free Report) and MGIC Investment Corporation (MTG - Free Report) in the fourth quarter. All these companies are due to report tomorrow.
Solid retention, exposure growth across business lines and improved pricing are likely to have fueled premiums. Catastrophes continued to provide impetus to policy renewal rates and aided in better pricing in the fourth quarter. Per a report in Business Insurance, U.S. commercial insurance rates rose 5.6% on average in the fourth quarter.
Per reports in Reinsurance News, JP Morgan estimates insured losses in the fourth quarter in the range of $8-$10 billion, largely attributable to Hurricane Otis. Nonetheless, better pricing, reinsurance arrangements, portfolio repositioning, reinsurance covers, favorable reserve development and prudent underwriting are likely to drive an improvement in underwriting results.
Auto premiums are likely to have improved, given increased travel across the world. A stronger mortgage market is likely to have favored mortgage insurance premiums. A low unemployment rate is likely to have aided commercial insurance and group insurance.
Insurers, being beneficiaries of an improving rate environment, are likely to witness improved investment results. A larger investment asset base, higher reinvestment rate, and alternative investments in private equity, hedge funds and real estate, among others, are expected to have aided net investment income.
Accelerated digitalization is expected to have saved costs, thus aiding margins. A solid capital position aided insurers in strategic mergers and acquisitions to sharpen their competitive edge, build on a niche, expand geographically and diversify their portfolio. It also helped the industry players to enhance shareholders' value via share buybacks and raising dividends.
Let’s take a sneak peek into how the abovementioned insurers are poised prior to their fourth-quarter 2023 earnings on Jan 31.
According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Aflac’s Japan segment is likely to have benefited from higher sales fetched by its cancer insurance product. The 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. Margins are likely to have received an impetus from lower benefits and claims, and a decline in acquisition and operating expenses. (Read more: Can Aflac's Q4 Earnings Beat on Strong US Business?)
The Zacks Consensus Estimate for AFL’s fourth-quarter earnings per share of $1.47 indicates a 14% increase from the year-ago quarter reported figure. The company has an Earnings ESP of +0.57% and a Zacks Rank #2 (Buy).
AFL’s earnings surpassed estimates in the last four reported quarters. This is depicted in the chart below:
MetLife’s fourth-quarter results are likely to benefit from rising premiums from most of the businesses and investment income. Improving profits from the U.S., Asia and Latin American operations are expected to have positioned the company for significant growth from the year-ago period and a potential earnings beat. However, rising costs and expenses are likely to have partially offset the profit growth levels in the to-be-reported quarter. The Zacks Consensus Estimate for the bottom line is pegged at $1.95, indicating a 25.8% increase from the year-ago quarter’s reported figure. The company has an Earnings ESP of +1.54% and a Zacks Rank #3. (Read more: Will Rising Premiums Drive MetLife's Q4 Earnings?)
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MET’s earnings beat estimates in one of the last four reported quarters and missed in the other three. The same is depicted in the chart below:
Axis Capital Holdings’ fourth-quarter results are likely to benefit from the repositioned portfolio and markets offering profitable growth, lower volatility, strong presence and better pricing. The Insurance segment is likely to have gained from favorable market conditions, increased business opportunities, rate increases on renewal and continued strong retentions.
The Reinsurance segment is expected to have benefited from an increase in accident and health, motor, catastrophe and credit and surety lines. However, rising expenses are expected to have weighed on margins.
The Zacks Consensus Estimate for AXS’s fourth-quarter bottom line is pegged at $1.25, indicating a 164.1% decrease from the year-ago quarter reported figure. The company has an Earnings ESP of 0.00% and a Zacks Rank #3.
AXS’s earnings surpassed estimates in the last four quarters. This is depicted in the chart below:
Selective Insurance Group’s fourth-quarter results are likely to benefit from strong renewal, fuel price increases, exposure growth, favorable excess and surplus (E&S) lines marketplace conditions and higher income earned on fixed-income securities portfolio. However, increasing loss and loss expenses are likely to have weighed on margin expansion.
The Zacks Consensus Estimate for the bottom line is pegged at $1.92, indicating a 31.5% increase from the year-ago quarter reported figure. The company has an Earnings ESP of +0.42% and a Zacks Rank #4 (Sell).
SIGI’s earnings missed estimates in two of the last four quarters and matched estimates in the remaining two. This is depicted in the chart below:
MGIC Investment’s fourth-quarter results are likely to have benefited from solid insurance in force, a decline in loss and claims payments, lower delinquency and better housing market fundamentals. Favorable credit trends and refinances are likely to have driven an increase in new business written.
The Zacks Consensus Estimate for MTG’s bottom line is pegged at 57 cents, indicating a 10.9% decrease from the year-ago quarter reported figure. The company has an Earnings ESP of 0.00% and a Zacks Rank 2.
MTG’s earnings surpassed estimates in the last four quarters. This is depicted in the chart below:
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https://www.zacks.com/stock/news/2218095/insurance-stocks-q4-earnings-due-on-jan-31-afl-met-more?-more
| 2024-01-31T00:02:13Z
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For the quarter ended December 2023, M.D.C. Holdings, Inc. (MDC - Free Report) reported revenue of $1.35 billion, down 11.4% over the same period last year. EPS came in at $1.56, compared to $1.08 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.29 billion, representing a surprise of +4.10%. The company delivered an EPS surprise of +8.33%, with the consensus EPS estimate being $1.44.
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 M.D.C. Holdings, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net New Orders - Homes: 1,515 versus the four-analyst average estimate of 1,531.
- Average Price - New Home Deliveries: $545.70 versus the four-analyst average estimate of $551.51.
- New Home Deliveries - Homes: 2,400 compared to the 2,287 average estimate based on four analysts.
- Backlog - Homes (units) - Total: 1,890 compared to the 2,020 average estimate based on four analysts.
- Average Price - Backlog: $612.20 versus the three-analyst average estimate of $593.49.
- Active subdivision - Total: 226 versus 240 estimated by three analysts on average.
- Backlog estimated Dollar value: $1.16 billion versus $1.33 billion estimated by two analysts on average.
- Revenue- Home sale revenues: $1.31 billion compared to the $1.26 billion average estimate based on four analysts. The reported number represents a change of -11.9% year over year.
- Revenue- Financial services: $36.70 million versus the four-analyst average estimate of $30.95 million. The reported number represents a year-over-year change of +13.7%.
- Income before income taxes- Financial Services: $24.59 million versus $17.92 million estimated by two analysts on average.
- Income before income taxes- Homebuilding: $139.69 million versus $122.61 million estimated by two analysts on average.
Shares of M.D.C. Holdings, Inc. have returned +13.4% over the past month versus the Zacks S&P 500 composite's +3.4% 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/2218096/mdc-holdings-inc-mdc-q4-earnings-taking-a-look-at-key-metrics-versus-estimates
| 2024-01-31T00:02:20Z
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United Natural Foods (UNFI - Free Report) has advanced its operational capabilities through the integration of a second AI-powered robotic automation system from Symbotic (SYM - Free Report) in its state-of-the-art distribution center in Manchester, PA. The system is set to be operational imminently. This initiative is a testament to UNFI's initiative-taking approach in leveraging innovative technology to bolster the efficiency and effectiveness of its distribution network.
In the realm of network optimization and automation, UNFI has demonstrated marked strides, particularly with the completion of two pivotal projects in the first quarter of fiscal 2024. A key move was the operational consolidation of Logan Township facility into Allentown distribution center, streamlining processes and enhancing logistical synergies.
Concurrently, UNFI has successfully executed an expansion of its automated systems at Carlisle Distribution Center. This expansion primarily augments the center's unit pick capabilities, a strategic enhancement poised to increase both capacity and output. This aligns with the company's growth trajectory and operational efficiency objectives.
What’s Next for UNFI?
UNFI, a premier North American grocery wholesaler, is set to boost its distribution capabilities with the upcoming Manchester distribution center, a 1.3 million square-foot facility expected to be operational by summer 2024. This center is a strategic move to improve customer experiences and meet growing demand in the Northeast. It will feature SYM's robotic case pick capabilities in its dry grocery area, enhancing order accuracy and automating pallet assembly.
This forms a part of UNFI's multi-year transformation plan, designed to revolutionize customer experiences at the store level. Per the reports, the Manchester facility is anticipated to be fully operational by spring 2025, reflecting UNFI's dedication to operational excellence and customer-focused innovation. Management has affirmed their strategic trajectory toward transformation and full-platform value realization.
United Natural Foods is focused on fortifying the supply chain, primarily for retailers and suppliers. This focus is rooted in enhancing distribution-network efficiency through the integration of advanced technological systems, a critical move aimed at automating and optimizing supply-chain operations.
The company has initiated a comprehensive transformation strategy as it is navigating challenges in retail footprints due to shrinking consumer demand, reduced government support and intense pricing competition. The strategy involves several initiatives, particularly focusing on near-term value-creation measures. These measures are projected to significantly boost operating efficiencies, with an estimated impact of $150 million in fiscal 2024.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have lost 27.4% of their value compared with the broader industry's decline of 6.1% in the six-month period. The S&P 500's Index recorded 6.8% growth in the same time frame. The Zacks Consensus Estimate for current fiscal-year sales suggests growth of 2.4% from the year-ago actuals.
Key Picks
Ingredion (INGR - Free Report) is an ingredients solutions provider, specializing in nature-based sweeteners, starches and nutrition ingredients. It carries a Zack 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 Ingredion’s current financial-year sales and earnings suggests growth of 5% and 25%, respectively, from the year-ago actuals.
BRF S.A. (BRFS - Free Report) , a Brazil-based food company, is focused on the production and sale of poultry, pork, beef cuts, milk, dairy products and processed food products. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings suggests 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, carries a Zacks Rank #2 at present. FLO delivered an average earnings surprise of 6.8% in the trailing four quarters.
The Zacks Consensus Estimate for Flowers Food’s current financial-year sales indicates growth of 6% from the year-ago reported figure.
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https://www.zacks.com/stock/news/2218098/united-natural-foods-unfi-implements-ai-automates-warehouse
| 2024-01-31T00:02:26Z
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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.
First Financial Bankshares in Focus
Based in Abilene, First Financial Bankshares (FFIN - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 9.04%. Currently paying a dividend of $0.18 per share, the company has a dividend yield of 2.18%. In comparison, the Banks - Southwest industry's yield is 0.81%, while the S&P 500's yield is 1.6%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.72 is up 1.4% from last year. In the past five-year period, First Financial Bankshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.78%. 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. First Financial's current payout ratio is 51%, meaning it paid out 51% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, FFIN expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $1.40 per share, with earnings expected to increase 0.72% from the year ago period.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. 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 FFIN 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/2218099/first-financial-bankshares-ffin-could-be-a-great-choice
| 2024-01-31T00:02:33Z
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Investors interested in stocks from the Aerospace - Defense sector have probably already heard of Textron (TXT - Free Report) and Airbus Group (EADSY - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Textron is sporting a Zacks Rank of #1 (Strong Buy), while Airbus Group 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 TXT has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TXT currently has a forward P/E ratio of 14.43, while EADSY has a forward P/E of 22.29. We also note that TXT has a PEG ratio of 1.23. 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. EADSY currently has a PEG ratio of 1.80.
Another notable valuation metric for TXT is its P/B ratio of 2.41. 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, EADSY has a P/B of 7.69.
These are just a few of the metrics contributing to TXT's Value grade of B and EADSY's Value grade of C.
TXT has seen stronger estimate revision activity and sports more attractive valuation metrics than EADSY, so it seems like value investors will conclude that TXT is the superior option right now.
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https://www.zacks.com/stock/news/2218100/txt-vs-eadsy-which-stock-should-value-investors-buy-now?
| 2024-01-31T00:02:39Z
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Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Tesco PLC (TSCDY - Free Report) or Walmart (WMT - 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.
Tesco PLC and Walmart are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that TSCDY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also 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 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.
TSCDY currently has a forward P/E ratio of 12.22, while WMT has a forward P/E of 25.57. We also note that TSCDY has a PEG ratio of 0.48. 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. WMT currently has a PEG ratio of 3.50.
Another notable valuation metric for TSCDY is its P/B ratio of 1.73. 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, WMT has a P/B of 5.19.
These metrics, and several others, help TSCDY earn a Value grade of A, while WMT has been given a Value grade of C.
TSCDY stands above WMT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TSCDY is the superior value option right now.
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https://www.zacks.com/stock/news/2218101/tscdy-vs-wmt-which-stock-should-value-investors-buy-now?
| 2024-01-31T00:02:45Z
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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Urban Outfitters (URBN - Free Report) and Burberry Group PLC (BURBY - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Urban Outfitters is sporting a Zacks Rank of #2 (Buy), while Burberry Group PLC has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that URBN likely has seen a stronger improvement to its earnings outlook than BURBY has recently. But this is just one piece of the puzzle for value investors.
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 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.
URBN currently has a forward P/E ratio of 12.02, while BURBY has a forward P/E of 16.29. We also note that URBN has a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BURBY currently has a PEG ratio of 4.29.
Another notable valuation metric for URBN is its P/B ratio of 1.77. 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, BURBY has a P/B of 4.43.
These metrics, and several others, help URBN earn a Value grade of A, while BURBY has been given a Value grade of C.
URBN stands above BURBY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that URBN is the superior value option right now.
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https://www.zacks.com/stock/news/2218102/urbn-vs-burby-which-stock-is-the-better-value-option?
| 2024-01-31T00:02:51Z
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Investors looking for stocks in the Business - Software Services sector might want to consider either Wipro Limited (WIT - Free Report) or Tyler Technologies (TYL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Wipro Limited is sporting a Zacks Rank of #2 (Buy), while Tyler Technologies has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WIT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
WIT currently has a forward P/E ratio of 22.47, while TYL has a forward P/E of 49.97. We also note that WIT has a PEG ratio of 2.50. 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. TYL currently has a PEG ratio of 3.33.
Another notable valuation metric for WIT is its P/B ratio of 3.55. 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, TYL has a P/B of 6.44.
Based on these metrics and many more, WIT holds a Value grade of B, while TYL has a Value grade of F.
WIT has seen stronger estimate revision activity and sports more attractive valuation metrics than TYL, so it seems like value investors will conclude that WIT is the superior option right now.
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https://www.zacks.com/stock/news/2218103/wit-or-tyl-which-is-the-better-value-stock-right-now?
| 2024-01-31T00:02:58Z
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Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Synchrony (SYF - Free Report) and Virtu Financial (VIRT - 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 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, Synchrony is sporting a Zacks Rank of #2 (Buy), while Virtu Financial has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SYF likely has seen a stronger improvement to its earnings outlook than VIRT has recently. 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.
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.
SYF currently has a forward P/E ratio of 6.95, while VIRT has a forward P/E of 7.63. We also note that SYF has a PEG ratio of 0.95. 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. VIRT currently has a PEG ratio of 3.89.
Another notable valuation metric for SYF is its P/B ratio of 1.23. 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, VIRT has a P/B of 1.83.
Based on these metrics and many more, SYF holds a Value grade of A, while VIRT has a Value grade of D.
SYF sticks out from VIRT in both our Zacks Rank and Style Scores models, so value investors will likely feel that SYF is the better option right now.
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https://www.zacks.com/stock/news/2218104/syf-vs-virt-which-stock-is-the-better-value-option?
| 2024-01-31T00:03:04Z
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Investors with an interest in Beverages - Soft drinks stocks have likely encountered both Coca-Cola European (CCEP - Free Report) and Coca-Cola (KO - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Coca-Cola European and Coca-Cola have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CCEP currently has a forward P/E ratio of 16.18, while KO has a forward P/E of 21.30. We also note that CCEP has a PEG ratio of 2.47. 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. KO currently has a PEG ratio of 3.41.
Another notable valuation metric for CCEP is its P/B ratio of 3.71. 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, KO has a P/B of 9.28.
These are just a few of the metrics contributing to CCEP's Value grade of B and KO's Value grade of D.
Both CCEP and KO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CCEP is the superior value option right now.
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https://www.zacks.com/stock/news/2218105/ccep-vs-ko-which-stock-is-the-better-value-option?
| 2024-01-31T00:03:10Z
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Investors looking for stocks in the Computer - Integrated Systems sector might want to consider either Hewlett Packard Enterprise (HPE - Free Report) or ZoomInfo (ZI - 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.
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.
Currently, Hewlett Packard Enterprise has a Zacks Rank of #2 (Buy), while ZoomInfo has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HPE likely has seen a stronger improvement to its earnings outlook than ZI has recently. 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.
HPE currently has a forward P/E ratio of 8.19, while ZI has a forward P/E of 16.96. We also note that HPE has a PEG ratio of 2.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZI currently has a PEG ratio of 2.35.
Another notable valuation metric for HPE is its P/B ratio of 0.95. 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, ZI has a P/B of 2.92.
These are just a few of the metrics contributing to HPE's Value grade of A and ZI's Value grade of D.
HPE stands above ZI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HPE is the superior value option right now.
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https://www.zacks.com/stock/news/2218106/hpe-vs-zi-which-stock-is-the-better-value-option?
| 2024-01-31T00:03:16Z
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Investors looking for stocks in the Computer - Software sector might want to consider either Verint Systems (VRNT - Free Report) or Intuit (INTU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Verint Systems has a Zacks Rank of #2 (Buy), while Intuit has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VRNT is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category 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.
VRNT currently has a forward P/E ratio of 11.74, while INTU has a forward P/E of 39.86. We also note that VRNT has a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. INTU currently has a PEG ratio of 2.70.
Another notable valuation metric for VRNT is its P/B ratio of 2.44. 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, INTU has a P/B of 10.76.
Based on these metrics and many more, VRNT holds a Value grade of B, while INTU has a Value grade of F.
VRNT 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 VRNT is likely the superior value option right now.
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https://www.zacks.com/stock/news/2218107/vrnt-vs-intu-which-stock-is-the-better-value-option?
| 2024-01-31T00:03:23Z
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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Pebblebrook Hotel (PEB - Free Report) or Sunstone Hotel Investors (SHO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Pebblebrook Hotel has a Zacks Rank of #2 (Buy), while Sunstone Hotel Investors has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PEB is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category 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.
PEB currently has a forward P/E ratio of 10.63, while SHO has a forward P/E of 13.13. We also note that PEB has a PEG ratio of 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SHO currently has a PEG ratio of 6.99.
Another notable valuation metric for PEB is its P/B ratio of 0.65. 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, SHO has a P/B of 1.25.
Based on these metrics and many more, PEB holds a Value grade of A, while SHO has a Value grade of C.
PEB 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 PEB is likely the superior value option right now.
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https://www.zacks.com/stock/news/2218108/peb-or-sho-which-is-the-better-value-stock-right-now?
| 2024-01-31T00:03:29Z
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American Water Works (AWK - Free Report) announced that its unit, New Jersey American Water, would invest $3.8 million to replace one mile of the old water main in Ocean City. The company will replace aging 4 and 6-inch water lines with new 8-inch ductile iron mains. The fresh investment will improve water service reliability and increase water flow for household consumption and fire protection.
The company is committed to removing and replacing old water mains and improving the service quality for its customers.
Aging Water Industry Needs Upgrades
Per the U.S. Environmental Protection Agency, investments of $473 billion and $271 billion are necessary to maintain and expand drinking water and wastewater pipelines, respectively, to meet demand over the next 20 years. Water infrastructure, like water mains, storage tanks and purifying units, needs maintenance at proper intervals.
The repair and upgrade of other infrastructure, like overhead storage tanks, treatment plants and water reservoirs, are essential to providing uninterrupted 24x7 services to customers.
Miles of aging pipelines essentially require repairs and upgrades to maintain quality water and wastewater services. A delay in repairs could cause frequent disruptions in the 24x7 supply of potable water and sewer services. Leaks and accidents in the water mains result in the wastage of millions of gallons of potable water.
Possibility of Rate Decline to Assist Utilities
The Fed did not increase the benchmark interest rate in the last three meetings in 2023 and indicated a rate decline in 2024. Capital-intensive utilities that have long-term capital expenditures are expected to benefit from the likely decrease in interest rates in 2024.
American Water aims to invest $3.1 billion in 2024, with a significant portion utilized for infrastructure improvements in Regulated Businesses. Over the long term, it targets investing in the range of $16-$17 billion in the 2024-2028 period and $34-$38 billion in the 2024-2033 period.
Other water utilities, such as Essential Utilities (WTRG - Free Report) and California Water Service Group (CWT - Free Report) , have well-chalked-out capital investment plans to strengthen infrastructure.
Essential Utilities plans to invest $1.1 billion in 2023 and $3.3 billion through 2025 to improve the water and natural gas systems and better serve customers with the help of improved information technology.
California Water Service plans to invest more than $725 million in capital expenditure through 2024.
The Zacks Consensus Estimate for WTRG and CWT’s 2024 earnings indicates year-over-year growth of 7.4% and 17.9%, respectively.
Price Performance
Over the past three months, American Water’s stock has gained 6.9% against the industry’s 28.8% decline.
Image Source: Zacks Investment Research
Zacks Rank & Another Stock to Consider
American Water currently has a Zacks Rank #2 (Buy).
Another top-ranked company from the same industry is Consolidated Water (CWCO - Free Report) . The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CWCO’s long-term (three to five-year) earnings growth rate is pegged at 8%. The Zacks Consensus Estimate for 2024 earnings of $1.24 per share indicates an increase of 6.9% over the past 60 days.
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https://www.zacks.com/stock/news/2218110/american-waters-awk-new-jersey-arm-invests-in-upgrades
| 2024-01-31T00:03:36Z
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WillScot Mobile Mini Holdings Corp. (WSC - Free Report) has inked a deal to acquire Livermore, CA-based leading business-to-business rental company — McGrath RentCorp (MGRC - Free Report) — for $3.8 billion.
The acquisition will enhance WillScot Mobile Mini’s position as a North American leader in turnkey space solutions with a complementary geographic footprint and a more diversified platform, providing enhanced value across key customer segments.
With this buyout, McGrath shareholders will receive either $123.00 in cash or 2.8211 shares of WillScot Mobile Mini common stock for each MGRC share. As determined pursuant to the election and allocation procedures in the merger agreement, 60% of McGrath’s outstanding shares will be converted into cash and 40% will be converted into stock. The transaction values include approximately $800 million of net debt and the per-share consideration represents a premium of 10.1% to McGrath’s closing stock price on Jan 26, 2024.
The deal is expected to close in second-quarter 2024, subject to McGrath shareholders, regulatory approvals and other customary closing conditions.
The stock grew 1% on Jan 29 after the news release.
Buyout Rationales
On a pro forma basis, approximately 90% of combined total revenue is derived from leasing and related services, while the addition of Enviroplex expands WillScot Mobile Mini’s permanent modular capabilities. Post completion, a $50 million run-rate operating synergies is expected to be achieved within 24 months of closing.
Together, the companies will have a solid financial profile, with combined 2023 revenues of $3.2 billion and adjusted EBITDA of $1.4 billion, including run-rate operating synergies.
The combined customer base and rental fleet represent an expanded platform for the rollout of WSC’s Value-Added Products and Services, cross-selling and commercial best practices and operations excellence. The combined company is expected to capture additional revenue synergies and fleet efficiencies through its commercial and branch operations and by leveraging WSC’s best-in-class technology platform.
WillScot Mobile Mini expects to generate approximately $700 million of annual free cash flow by the end of the first full year post-closing, with further accretion to free cash flow margins in the future.
Acquisitions to Drive Growth
Over the past several years, WillScot Mobile Mini has been on an acquisition spree. It has a strong track record of business integrations that generate significant synergies. In October 2023, it acquired 616 Global Clearspans — a leading national temporary and semi-permanent clearspan structure company based in Tucson, AZ. The acquisition further extended WSC’s comprehensive offering of temporary space solutions, adding the capability to create more expansive space solutions in its core markets and providing growth opportunities in new end markets.
In August 2023, WSC acquired CA-based Cold Box and Ohio-based A&M Cold Storage. The buyouts added approximately 3,500 controlled climate containers, walk-in freezers and refrigerated storage trailers to WSC's fleet.
Shares of this Zacks Rank #3 (Hold) company have gained 15.7% compared with the Zacks Furniture industry’s 17.3% growth in the past three months. The company benefits from continuous product innovation and solid segmental performance.
About MGRC
McGrath, which also currently has a Zacks Rank #3, is a leading business-to-business rental company in North America with a strong record of profitable business growth. McGrath’s operations are centered on modular solutions through its Mobile Modular and Mobile Modular Portable Storage businesses. Also, its TRS-RenTelco business offers electronic test equipment rental solutions.
MGRC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 24.7%. The Zacks Consensus Estimate for MGRC’s 2024 earnings suggests a rise of 10.8%, while the same for revenues suggests growth of 3% from the corresponding year-ago figures.
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Virco Mfg. Corporation (VIRC - Free Report) sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIRC’s next year earnings per share and sales indicates a rise of 27.4% and 8.1%, respectively, from the year-ago period’s levels.
Leggett & Platt, Incorporated (LEG - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 3.9% on average.
LEG’s earnings estimates for 2024 of $1.39 per share has moved up from $1.37 in the past 30 days, which indicate a 0.4% year-over-year decline.
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Leggett & Platt, Incorporated (LEG) - free report >>
WillScot Mobile Mini Holdings Corp. (WSC) - free report >>
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https://www.zacks.com/stock/news/2218112/willscot-mobile-mini-wsc-to-acquire-mcgrath-to-expand-in-na
| 2024-01-31T00:03:42Z
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Barrick Gold Corporation's (GOLD - Free Report) president and chief executive, Mark Bristow, announced that Kibali, the largest gold mine in Africa, is now leading the charge as one of the continent's most environmentally conscious mines.
With three hydropower stations already in operation, much of Kibali's electricity needs are met sustainably. Upon the completion of its new 16-megawatt solar plant and additional battery energy storage infrastructure, designed to supplement hydropower during dry seasons, the mine's renewable electricity supply is expected to rise from 81% to 85%. For half of the year, Kibali anticipates meeting its entire electricity demand through renewable sources.
Barrick emphasized Kibali's leadership in automation, presenting it as a model for responsible mining in Africa. Situated in the remote northeast of the Democratic Republic of Congo (DRC), Kibali represents a longstanding partnership with the country, fostering economic growth and development in the region.
The benefits of this partnership extend significantly to the DRC, with Barrick's total in-country investment reaching $4.7 billion through royalties, taxes, dividends, and payments to local suppliers. Additionally, Kibali's commitment to community development is evident through its support for various projects, with 44 new initiatives launched in 2023 alone. The mine's Cahier des Charges scheme, funded at $8.9 million over five years, spurred the commencement of 11 projects, with seven nearing completion. Barrick remains dedicated to biodiversity conservation, with plans to introduce more white rhinos to the Garamba National Park.
Operationally, Kibali met its production targets for 2023 and set a new record for annual throughput. It is also on track to replenish reserves mined during the year. Kibali stands as a testament to Barrick's commitment to collaborative partnerships with host countries and local communities. The company looks forward to further collaboration with the DRC government to expand investments and development projects in the region.
Barrick’s shares have lost 19.7% in the past year compared with a 10.8% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-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 68.1% 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 34.6% 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 43.3% in the past year.
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Carpenter Technology Corporation (CRS) - free report >>
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https://www.zacks.com/stock/news/2218114/barricks-gold-kibali-paves-the-way-for-sustainable-mining
| 2024-01-31T00:03:48Z
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WASHINGTON - Ukraine will likely face a tough year fighting Russia in 2024, CIA director Bill Burns said on Jan 30, arguing that to cut off US aid to Kyiv would be an error of “historic proportions”.
In an article on the Foreign Affairs journal’s website, he also said Ukraine could raise the costs of the war to Russia by striking deeper behind the front lines.
A former US ambassador to Moscow, Mr Burns said the war has begun to erode Russian President Vladimir Putin’s power and suggested China could adopt a more aggressive stance toward Taiwan if it saw US support for Ukraine wane.
“This year is likely to be a tough one on the battlefield in Ukraine,” he wrote. “For the United States to walk away from the conflict at this crucial moment and cut off support to Ukraine would be an own goal of historic proportions.
“Ukraine’s challenge is to puncture Putin’s arrogance and demonstrate the high cost for Russia of continued conflict, not just by making progress on the frontlines but also by launching deeper strikes behind them and making steady gains in the Black Sea.”
The comment appeared to refer to hitting territory Russia has seized from Ukraine and claimed as its own, rather than to strikes on Russia itself.
The administration of US President Joe Biden bars Ukraine from firing US-supplied weapons at targets inside Russia, refusing Kyiv’s requests for long-range missiles known as Himars.
“The US does not enable or encourage strikes inside of Russia,” said a Biden administration official.
While some senior Republicans in Congress favour continued US funding for Ukraine, others on the right oppose it and an effort to tie such assistance for Ukraine and Israel to a US policy shift on immigration undercut such a bill in December.
Congress has approved more than US$110 billion for Ukraine since Russia invaded in February 2022, but no new funds since Republicans took control of the House of Representatives in January 2023.
Saying Mr Putin may threaten to use nuclear arms, Mr Burns wrote, “it would be foolish to dismiss escalatory risks entirely. But it would be equally foolish to be unnecessarily intimidated by them.”
He also said support for Ukraine might temper a Chinese view that the United States “was in terminal decline” and would send “an important message of US resolve that helps Taiwan”.
“One of the surest ways to rekindle Chinese perceptions of American fecklessness and stoke Chinese aggressiveness would be to abandon support for Ukraine,” he wrote. REUTERS
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https://www.straitstimes.com/asia/cia-chief-kyiv-faces-tough-battle-this-year-us-aid-flows-vital
| 2024-01-31T00:03:51Z
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Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted earnings per share (EPS) of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
However, BAH’s impressive third-quarter results failed to impress the investors as the company’s shares declined 1.4% since its earnings release on Jan 26.
Backlogs
Total backlog increased 14.2% from the prior-year figure to $34.3 billion. This surpassed our estimate of $33.3 billion. Funded backlog of $5.2 billion increased 15.6% year over year. Unfunded backlog declined 9.2% to $9.2 billion.
Priced options increased 29.3% to $19.9 billion. The book-to-bill ratio was 0.72, up from 0.09 a year ago. The headcount of 33,798 improved 8.6% year over year.
EBITDA Margins Rise
Adjusted EBITDA amounted to $290.6 million, up 19.1% year over year. It outshined our projection of $268.6 million. Adjusted EBITDA margin on revenues increased to 11.3% from 10.7% in the prior year.
Key Balance Sheet & Cash Flow Numbers
Booz Allen exited the quarter with cash and cash equivalents of $601.8 million compared with $557.3 million at the year-ago quarter end. Long-term debt (net of current portion) was $3.37 billion compared with $3.39 billion in the prior quarter.
The company used $234 million of net cash from operating activities. Capital expenditures were $23.1 million. Free cash flow was $210.9 million.
Updated Fiscal 2024 Outlook
BAH currently projects revenue growth in the range of 14-15% compared with the prior view of 11-14%. It expects adjusted EPS in the range of $5.25-$5.40 (prior view: $4.95-$5.10). The current Zacks Consensus Estimate for earnings of $5.03 per share is below the EPS guidance.
Adjusted EBITDA is now expected in the range of $1.16–$1.18 billion compared with its prior view of $1.12 billion to $1.15 billion. Adjusted EBITDA margin on revenues is anticipated to be around 11%, revised from the previous range of 10-11%. Net cash provided by operating activities is still projected in the range of $200-$275 million, revised from the previously expected $160-$260 million. The company expects the effective tax rate to be in the 22-23% band.
Booz Allen currently sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Investors interested in the broader Business Services sector can consider the following other top-ranked stocks:
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. 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/2218115/booz-allen-bah-shares-fall-14-despite-q3-earnings-beat
| 2024-01-31T00:03:54Z
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A. O. Smith Corporation’s (AOS - Free Report) fourth-quarter 2023 adjusted earnings of 97 cents per share surpassed the Zacks Consensus Estimate of adjusted earnings of 96 cents. The bottom line jumped 13% year over year, driven by the continued strong demand for residential water heaters in North America.
Net sales of $988.1 million narrowly missed the consensus estimate of $989 million. However, the top line increased 5.6% year over year.
Segmental Details
A. O. Smith’s quarterly sales in North America (comprising the United States and Canada water heaters and boilers) increased 6.7% year over year to $738 million, driven by higher water heater volumes. Our estimate for North American sales in the segment was $729.3 million.
Adjusted segment earnings increased 7.5% year over year to $173.3 million due to higher water heater volumes.
Quarterly sales in the Rest of the World (including China, India and Europe) segment increased 4% year over year to $260.2 million. Our estimate for sales in the segment was $240.1 million. The increase in sales was primarily due to the introduction of kitchen appliance products in China. Sales in India increased 11% in local currency.
The adjusted segment’s earnings were $29.8 million, down 5.7% year over year due to promotions and advertising expenses related to the launch of kitchen products in China.
Margin Details
In the reported quarter, A.O. Smith’s cost of sales was $618.3 million, up 5.2% year over year. Selling, general & administrative expenses were $185 million, up 9.5%.
Gross profit increased 6.1% year over year to $369.8 million. The gross margin was 37.4% compared with 37.2% in the year-ago period. Interest expenses were $1.1 million, down from $3.4 million from the year-ago quarter.
Liquidity & Cash Flow
As of Dec 31, 2023, A.O. Smith’s cash and cash equivalents totaled $339.9 million compared with $391.2 million at the end of December 2022.
At the end of the reported quarter, long-term debt was $117.3 million compared with $334.5 million at the end of December 2022.
In 2023, cash provided by operating activities totaled $670.3 million compared with $391.4 million a year ago.
Share Repurchases
In 2023, A.O. Smith repurchased 4.4 million shares for $306.5 million. Exiting 2023, 3.5 million shares were left to be repurchased under the existing share repurchase authorization. In January 2024, AOS’ board boosted the existing share buyback program by authorizing the repurchase of an additional 2 million shares. The company expects to repurchase $300 million worth of shares in 2024. In 2023, it paid out dividends of $183.5 million, up 3.6% year over year.
2024 Outlook
A.O. Smith expects net sales of $3,970-$4,050 million for 2024. The figure indicates an increase from the $3,853 million reported in 2023.
The company expects adjusted earnings per share of $3.90-$4.15 for the year, whereas it reported $3.81 in 2023. AOS’ adjusted earnings guidance indicates a 5.6% year-over-year increase at the mid-point.
Zacks Rank & Other Stocks to Consider
A.O. Smith currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank #2. It has a trailing four-quarter average earnings surprise of 10.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AIT’s fiscal 2024 (ending June 2024) earnings remained steady in the past 60 days. Shares of Applied Industrial have jumped 18.2% in the past three months.
Flowserve Corporation (FLS - Free Report) currently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 27.3%.
In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has remained steady. The stock has risen 12.4% in the past year.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 25.1%.
In the past 60 days, the Zacks Consensus Estimate for Crane’s 2024 earnings has increased 0.6%. The stock has risen 20.9% in the past three months.
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https://www.zacks.com/stock/news/2218118/a-o-smith-aos-q4-earnings-beat-estimates-sales-rise-yy
| 2024-01-31T00:04:00Z
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WILMINGTON - A Delaware judge on Jan 30 ruled that Elon Musk’s record-breaking US$56 billion (S$75 billion) Tesla pay package could be tossed, calling the compensation “an unfathomable sum” that was not fair to shareholders, according to a court filing.
Shares of Tesla dropped 3.7 per cent in extended trade.
The decision means that more than five years after the electric car maker’s co-founder was granted the largest executive compensation plan in history, Tesla’s board will have to start over and come up with a new proposal.
The ruling leaves the future of Mr Musk’s fortune in limbo. Without the pay package, his net worth would drop to US$154.3 billion, making him the third-richest person in the world after spending most of the past couple of years as No. 1, according to the Bloomberg Billionaires Index.
The judge found it was negotiated by directors who seemed beholden to their headline-making chief executive and the promise of allowing him to share in the company’s enormous growth.
“Swept up by the rhetoric of ‘all upside,’ or perhaps starry eyed by Musk’s superstar appeal, the board never asked the US$55.8 billion question: Was the plan even necessary for Tesla to retain Musk and achieve its goals?“ wrote Kathaleen McCormick of Delaware’s Court of Chancery.
Judge McCormick’s opinion directed the Tesla shareholder who challenged the pay plan to work with Elon Musk’s legal team on an order implementing the decision.
“Never incorporate your company in the state of Delaware,” Mr Musk said in a post on X, the social media platform he bought in 2022. Originally named Twitter, Musk moved its state of incorporation to Nevada from Delaware after his purchase.
“Good day for the good guys,” said an email from Greg Varallo, an attorney for the Tesla shareholder Richard Tornetta who brought the lawsuit in 2018.
The ruling can be appealed to the Delaware Supreme Court.
The decision means that more than five years after the electric car maker’s co-founder was granted the largest executive compensation plan in history, Tesla’s board will have to start over and come up with a new proposal.
The ruling leaves the future of Musk’s fortune in limbo. Worth some $51.1 billion, the options were one of his most valuable assets. Without them his net worth would drop to $154.3 billion, making him the third-richest person in the world after spending most of the past couple of years as No. 1, according to the Bloomberg Billionaires Index.
“The incredible size of the biggest compensation plan ever – an unfathomable sum – seems to have been calibrated to help Musk achieve what he believed would make ‘a good future for humanity’,” wrote Judge McCormick in her 201-page opinion.
Mr Musk testified during the compensation trial in November 2022 that the money would be used to finance interplanetary travel.
“It’s a way to get humanity to Mars,” he testified. “So Tesla can assist in potentially achieving that.”
Tesla’s agreement with Mr Musk contributes a significant part of his fortune, which is one of the world’s largest.
Tesla directors argued during a week-long trial that the company was paying to ensure one of the world’s most dynamic entrepreneurs continued to dedicate his attention to the electric-vehicle maker. Antonio Gracias, a Tesla director from 2007 to 2021, called the package “a great deal for shareholders” because he said it led to the company’s extraordinary success.
Mr Tornetta’s lawyers argued the Tesla board never told shareholders that the goals were easier to achieve than the company was acknowledging and that internal projections showed Mr Musk was quickly going to qualify for large portions of the pay package.
The plaintiff’s legal team also argued the board had a duty to offer a smaller pay package or look for another CEO and that they should have required Mr Musk to work full-time at Tesla instead of allowing him to focus on side projects, like SpaceX and X.
The package grants stock option awards allowing Mr Musk to buy Tesla stock at heavily discounted prices as escalating financial and operational goals are met. He must hold the acquired stock for five years.
Mr Musk qualified for all 12 tranches or performance targets in the plan. He was not guaranteed any salary.
Mr Musk said in a post on X in January that he was uncomfortable leading Tesla unless he had 25 per cent of the voting control. The billionaire owned around 13 per cent of the company at the time.
Tesla’s value ballooned to briefly top US$1 trillion in 2021 from US$50 billion when the package was negotiated.
Amit Batish at Equilar, an executive pay research firm, estimated in 2022 that Mr Musk’s package was around six times larger than the combined pay of the 200 highest-paid executives in 2021.
In July, Tesla’s directors agreed to return US$735 million to the company to settle shareholder allegations brought in a separate lawsuit filed in 2020 that they overpaid themselves. The lawsuit challenged options that were granted to directors starting in June 2017. REUTERS, BLOOMBERG
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https://www.straitstimes.com/business/judge-voids-elon-musks-unfathomable-75-billion-tesla-pay-package
| 2024-01-31T00:04:02Z
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ClearPoint Neuro, Inc. (CLPT - Free Report) recently announced the installation and completion of an initial procedure with both the ClearPoint Prism Neuro Laser Therapy System and the ClearPoint Neuro Navigation System at Kaleida Health in Buffalo, NY.
These technologies are expected to offer selected minimally invasive neurosurgical procedures to patients.
Price Performance
For the past six months, CLPT’s shares have gained 5.2% against the industry’s decline of 3.1%. The S&P 500 increased 6.8% in the same time frame.
Image Source: Zacks Investment Research
More on the News
The market's only non-cooled laser applicator is available with the ClearPoint Prism Neuro Laser Therapy System.
Next-generation laser applicator technology from ClearPoint reduces power and ablation time, lessens image artifact, and enables more efficient operations by doing away with the need for external cooling.
The Prism laser is presently available in limited supply at a few U.S. academic medical institutes.
Industry Prospects
Per a report by MarketsandMarkets, with a growth rate of 8.9%, the global laser technology market is expected to reach more than $25.6 billion by 2027.
The primary drivers of market expansion are the healthcare vertical's increasing demand and the growing output of nano and micro devices. Another important driver of the laser technology industry's expansion is the superior performance of laser-based techniques compared with conventional ways of material processing.
Notable Developments
The company recently announced its receipt of the FDA’s 510(k) clearance for its SmartFrame OR Stereotactic System.
The system is expected to offer flexible workflows to surgeons (including iCT forward projection), thereby enabling precise image-based corrections to achieve sub-millimetric accuracy.
Zacks Rank & Stocks to Consider
CLPT 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/2218119/clearpoints-clpt-neuro-systems-to-boost-neurosurgeries
| 2024-01-31T00:04:07Z
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United Parcel Service, Inc. (UPS - Free Report) fourth-quarter 2023 earnings per share of $2.47 beat the Zacks Consensus Estimate of $2.44 but declined 31.7% year over year. Revenues of $24.91 billion fell short of the Zacks Consensus Estimate of $25.30 billion and decreased 7.8% year over year.
UPS generated $10.23 billion of net cash from operating activities in 2023. Capital expenditures were $5.15 billion. Free cash flow was $5.25 billion. The overall adjusted operating profit fell 27.1% year over year to $2.78 billion.
U.S. Domestic Package revenues decreased 7.3% year over year to $16.91 billion, caused by an 7.4% dip in average daily volume. The actual figure was lower than our estimate of $17.07 billion. Segmental operating profit (adjusted) plunged 32.6% year over year to $1.56 billion. The adjusted operating margin for the segment was 9.3%.
Revenues at the International Package division summed $4.60 billion, down 6.9% year over year. The downfall was due to 8.3% reduction in average daily volume mainly due to softness in Europe. The actual figure was lower than our estimate of $4.78 billion. Segmental operating profit (adjusted) totaled $899 million, down 17.6% year over year. The adjusted operating margin for the segment was 19.5%.
Supply Chain Solutions revenues of $3.39 billion fell 11.4% year over year due to market rate declines and excess market capacity in forwarding.The actual figure was lower than our estimate of $3.50 billion. Operating profit (on an adjusted basis) tumbled 20.8% to $319 million. The adjusted operating margin for the segment was 9.4%.
Dividend Hike
UPS’ board of directors approved a dividend increase of $0.01 in its quarterly dividend payment. UPS will pay a first-quarter 2024 dividend of $1.63 per share on all outstanding Class A and Class B shares. The dividend will be paid on Mar 8, 2024 to shareowners of record on Feb 20.
This hike marks the 15th consecutive year of dividend increase by UPS.
2024 Outlook
For 2024, UPS anticipates revenues in the range of $92-$94.5 billion and consolidated adjusted operating margin to lie between 10% and 10.6%.
Capital expenditures are anticipated to be around $4.5 billion. Further, UPS anticipates dividend payments of $5.4 billion, subject to board approval. Effective tax rate is projected to be roughly 23.5%.
Currently, UPS 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/2218120/ups-surpasses-q4-earnings-estimates-announces-dividend-hike
| 2024-01-31T00:04:13Z
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LONDON - Eberechi Eze and the returning Michael Olise put on a dazzling attacking display as Crystal Palace came from behind to beat Sheffield United 3-2 on Tuesday and secure back-to-back home wins in the Premier League for the first time this season.
Palace climbed to 14th in the table, with 24 points from 22 matches, relieving some of the pressure on manager Roy Hodgson. Sheffield United stayed rooted to the foot of the table with 10 points from 22 games.
A frantic first half hour at Selhurst Park saw Sheffield United take the lead twice. Ben Brereton Diaz's curled effort put the Blades ahead in the opening minute and James McAtee's deflected shot restored the visitors' advantage after Eze had levelled the scores.
But Eze's second equaliser - a sublime finish from the edge of the area - restored parity, before Olise added to his two assists with a superb, dipping strike in the second half that clipped the post on its way into the Sheffield United net. REUTERS
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https://www.straitstimes.com/sport/football/eze-and-olise-dazzle-as-crystal-palace-secure-3-2-win-over-sheffield-united
| 2024-01-31T00:04:12Z
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PulteGroup Inc. (PHM - Free Report) reported mixed results in fourth-quarter 2023, wherein earnings surpassed the Zacks Consensus Estimates, but revenues missed the same. Both metrics decreased year over year. Shares of this notable homebuilder lost more than 1% following the earnings release on Jan 30.
Nonetheless, during the latter part of the fourth quarter, PulteGroup observed a notable surge in buyer activity, mainly attributed to declining interest rates. December emerged as the quarter's peak sales month. With the anticipation of sustained lower interest rates in 2024, the company remains optimistic that the enhanced affordability landscape will continue to attract prospective buyers.
The year 2024 could witness heightened demand for homebuying, supported by a robust job market, lower interest rates, and a limited inventory of existing homes. PulteGroup, equipped with a readily available supply of homes and lots, is strategically positioned to leverage these market conditions for business expansion, ensuring robust cash flow and substantial returns.
Inside the Headlines
PHM reported adjusted earnings per share of $3.28, which beat the consensus mark of $3.20 by 2.5% but decreased 14.8% from $3.85 reported a year ago.
Total revenues of $4.29 billion missed the consensus mark of $4.48 billion by 4.2% and decreased 15.5% from the year-ago figure of $5.08 billion.
Segmental Discussion
PulteGroup primarily operates through two business segments — Homebuilding and Financial Services.
Revenues from the Homebuilding segment were down 16.1% year over year to $4.2 billion. Home sale revenues of $4.17 billion declined 16% year over year, mainly due to lower deliveries and average selling price (ASP) of homes closed. Land sale revenues rose 24.1% from a year ago to $34.5 million.
The number of homes closed dropped 13.9% year over year to 7,615 units from the year-ago level. The average selling price of homes delivered was $547,000, down 2.5% year over year.
New home orders gained 57% year over year to 6,214 units for the quarter, benefiting from strong demand and a drop in cancelations. The value of new orders also rose 56% from a year ago to $3.4 billion. The cancelation rate was 9% of the beginning backlog, down 200 basis points (bps) from the prior-year period.
Most importantly, its backlog, which represents orders yet to be closed, was 12,146 units, down 0.2% year over year. In addition, potential housing revenues from the backlog decreased 4.6% from the prior-year quarter to $7.32 billion.
Home sales gross margin was down 50 bps year over year to 28.9% for the reported quarter. SG&A expenses (as a percentage of home sales revenues) grew 40 bps to 7.4% from a year ago.
Revenues from the Financial Services segment increased 30.2% year over year to $93.9 million. Pretax income for the segment increased 83.3% to $44 million from a year ago.
2023 Highlights
Earnings came in at $11.72 per share on revenues of $16.1 billion (up from $16 billion in 2022). During the year, the company delivered 28,603 homes (down 1.7% year over year) with an ASP of $545,000 (down 2.1% year over year).
Financials
At the end of 2023, cash, cash equivalents and restricted cash were $1.85 billion, up from $1.09 billion in 2022-end. Net debt-to-capital was 1.1% at 2023-end, significantly down from 9.6% at 2022-end.
Net cash provided by operating activities was $2.2 billion in 2023 versus $668.5 million in the prior year period.
In 2023, the company repurchased 13.8 million common shares for $1 billion at an average price of $72.50 per share. The company's board of directors has approved a $1.5 billion expansion of the company's share repurchase authorization, resulting in a total share repurchase authorization of $1.8 billion.
Zacks Rank
PulteGroup currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Construction Releases
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.
DHI reported adjusted earnings of $2.82 per share for the fiscal first quarter, which missed the Zacks Consensus Estimate of $2.88 by 2.1% but improved 2% from the year-ago figure of $2.76. Total revenues (Homebuilding, Forestar, Rental and Financial Services) came in at $7.73 billion, up 6.5% year over year. The reported figure topped the consensus mark of $7.72 billion by 1.4%.
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 four consecutive 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 with choices, flexibility, and affordability, the company is confident in its ability to effectively navigate potential fluctuations in housing market conditions.
Acuity Brands, Inc. (AYI - Free Report) reported impressive results in first-quarter fiscal 2024 (ending Nov 30, 2023), with earnings and revenues surpassing the Zacks Consensus Estimate. Earnings beat the consensus mark for the 15th consecutive quarter.
Despite a year-over-year decline in sales in the lighting business, AYI reported strong fiscal first-quarter performance driven by increased focus on margins and cash generation. This approach resulted in a higher adjusted operating profit margin and increased adjusted diluted earnings per share.
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https://www.zacks.com/stock/news/2218140/pultegroup-phm-q4-earnings-beat-revenues-lag-orders-up
| 2024-01-31T00:04:19Z
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HAMBURG, Germany - Fortuna Dusseldorf edged past hosts St Pauli 4-3 on penalties on Tuesday after drawing 2-2 over 120 minutes to reach the semi-finals of the German Cup for the first time in 28 years.
Three days after Dusseldorf lost at home in the league to leaders St Pauli in Germany's second tier, the Westphalian team had the chance to make amends.
They went in front with a 38th-minute penalty by Vincent Vermeij, after he was brought down by keeper Sascha Burchert.
St Pauli, attempting to reach the Cup semi-finals for the first time since 2006, got their own spot kick on the hour and Marcel Hartel bagged the equaliser.
Dusseldorf went back in front in extra time after keeper Burchert spilled the ball in the 99th minute when trying to block a long-range effort from Christoph Daferner.
Ao Tanaka slid in to beat the keeper to the punch and snatch what the visitors thought was the winner.
But the hosts levelled in the 120th minute through Carlo Boukhalfa's close-range header to force penalties and Dusseldorf keeper Florian Kastenmeier saved two spot kicks to send his team through.
Hertha Berlin face Kaiserslautern on Wednesday while Bayer Leverkusen host VfB Stuttgart and Saarbruecken take on Borussia Moenchengladbach next week in the other quarter-finals. REUTERS
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https://www.straitstimes.com/sport/football/fortuna-beat-st-pauli-on-penalties-to-reach-german-cup-last-four
| 2024-01-31T00:04:23Z
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EV maker Tesla (TSLA - Free Report) has evolved into a dynamic technology innovator. Tesla snapped its 10-quarter winning streak in the third quarter of 2023 but maintains strong long-term potential. The electric vehicle (EV) giant reported record deliveries in the fourth quarter of 2023. Production ramp-up at Gigafactory 4 and 5 and the introduction of new models, including Semi and Cybertruck, are set to support long-term delivery growth. We anticipate automotive revenues to rise more than 16% this year. Additionally, Tesla’s energy generation and storage revenue outlook is promising. Robust liquidity and the solid potential of its charging business are other positives. While shrinking margins remain a near-term concern, we expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and the introduction of new models. Tesla has been one of the most searched-for stocks on Zacks.com lately.
Netflix (NFLX - Free Report) is considered a pioneer in the streaming space. Netflix added 13.12 million paid subscribers globally in fourth-quarter 2023, with a rise of 1% in average revenue per subscription. The company attributed the robust top-line growth to its paid subscription-sharing offering (part of its password-sharing crackdown), recent price changes and the strength of its business in general. Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized and foreign-language content. Shares have outperformed the industry in the past six months. Netflix’s expected earnings growth rate for the current year is 40.1%. The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the past 60 days. Netflix presently sports a Zacks Rank #1.
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https://www.zacks.com/stock/news/2218141/top-stock-picks-for-week-of-january-29-2024
| 2024-01-31T00:04:29Z
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A pair of first-half goals from defender Fabian Schar set Newcastle United on course for a comfortable 3-1 win at Aston Villa on Tuesday and ended a run of five successive away defeats in the Premier League for the Magpies.
Swiss centre-back Schar broke the deadlock with a superb half-volley from a corner in the 32nd minute, and he added a second with a close-range finish four minutes later after an Anthony Gordon shot was deflected onto the crossbar.
Newcastle's third came seven minutes into the second half after an incisive attack down the left culminated in a brilliant ball from Miguel Almiron to Jacob Murphy, and his shot was bundled into his own net by Villa fullback Alex Moreno.
Ollie Watkins pulled a goal back for Villa in the 71st minute and he had another effort ruled out for offside two minutes later, but Newcastle held on to move up to seventh spot in the table on 32 points, while Villa remain fourth on 43. REUTERS
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https://www.straitstimes.com/sport/football/schar-double-helps-newcastle-to-3-1-win-over-aston-villa
| 2024-01-31T00:04:34Z
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Johnson Controls International plc (JCI - Free Report) reported first-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate for earnings of 50 cents per share. However, the bottom line decreased 23.9% year over year.
Total revenues of $6,094 million missed the consensus estimate of $6,126 million. The top line increased 0.4% year over year.
Segmental Results
Building Solutions North America: The segment’s revenues were $2,487 million, up 5% year over year. Our estimate for Building Solutions North America revenues for the fiscal first quarter was $2,528.0 million. Organic sales jumped 4%, driven by the strong performance of applied heating, ventilation and air conditioning (HVAC) & controls business. The segment’s EBITA increased 7% year over year to $285 million.
Building Solutions Europe, Middle East, Africa/Latin America: Revenues from this segment totaled $1,038 million, up 6% year over year. Our estimate for Building Solutions Europe, Middle East, Africa/Latin America revenues for the fiscal first quarter was $1,048.1 million. Organic sales climbed 2% due to growth in service, HVAC & controls, fire & security businesses. The segment’s EBITA was $80 million, up 7% from the year-ago period.
Building Solutions Asia Pacific: Revenues decreased 22% to $507 million in the reported quarter. Sales declined 21% organically due to weakness in the China region. The segment’s EBITA was $46 million, down 32% year over year.
Global Products: Revenues in this segment declined 1% year over year to $2,062 million. Our estimate for Global Products revenues in the fiscal first quarter was $1,970.8 million. Organic sales were down 1% due to a decline in the global Residential HVAC business. The segment’s EBITA was $369 million, down 3% year over year.
Financial Position
Johnson Controls had cash and cash equivalents of $1,801 million as of Dec 31, 2023 compared with $835 million at the end of fiscal 2023. Long-term debt was $7,959 million compared with $7,818 million at the end of fiscal 2023.
The company reported a free cash outflow of $338 million in the first three months of fiscal 2024 compared with $430 million cash outflow in the year-ago period.
The company did not repurchase any shares in the first quarter of fiscal 2024.
Fiscal Q2 Guidance
For the second quarter of fiscal 2024, Johnson Controls anticipates organic revenue growth to be flat year over year. The segment EBITA margin is estimated to be approximately 14.5%. The company expects adjusted earnings to be 74-78 cents per share in the fiscal second quarter. The mid-point of the guided range — 76 cents per share — lies below the Zacks Consensus Estimate for earnings of 77 cents per share.
FY24 Guidance
Johnson Controls anticipates year-over-year organic revenue growth to be in the mid-single digits in fiscal 2024. The adjusted segment EBITA margin is expected to improve 50-75 bps year over year.
JCI expects adjusted earnings to be approximately $3.60-$3.75 per share in fiscal 2024 compared with earnings of $3.65-$3.80 per share predicted earlier. The mid-point of the guided range — $3.67 per share — lies above the Zacks Consensus Estimate for earnings of $3.66 per share.
Zacks Rank & Stocks to Consider
JCI currently carries Zacks Rank #4 (Sell). Some better-ranked companies from the Industrial Products sector are discussed below:
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has remained steady. The stock has risen 19.5% in the past year.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 14%.
The Zacks Consensus Estimate for AOS’ 2023 earnings increased 0.8% in the past 60 days. Shares of A. O. Smith have jumped 20.6% in the past year.
Crane Company (CR - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 29.8%.
In the past 60 days, the Zacks Consensus Estimate for Crane’s 2023 earnings has increased 0.2%. The stock has risen 43.8% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Johnson Controls International plc (JCI) - free report >>
A. O. Smith Corporation (AOS) - free report >>
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https://www.zacks.com/stock/news/2218143/johnson-controls-jci-q1-earnings-beat-revenues-rise-yy
| 2024-01-31T00:04:35Z
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Investors might want to bet on Farmers National Banc (FMNB - Free Report) , as it has been recently upgraded 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.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Farmers National 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. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Farmers National imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Farmers National
For the fiscal year ending December 2024, this bank is expected to earn $1.31 per share, which is a change of -20.6% from the year-ago reported number.
Analysts have been steadily raising their estimates for Farmers National. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.6%.
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 Farmers National 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/2218144/farmers-national-fmnb-moves-to-buy-rationale-behind-the-upgrade
| 2024-01-31T00:04:42Z
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SAN PEDRO, Ivory Coast - Evidence Makgopa and Teboho Mokoena scored second-half goals as South Africa shocked Morocco with a 2-0 victory to dump the World Cup semi-finalists out of the Africa Cup of Nations at the last-16 stage in San Pedro on Tuesday.
Morocco, who had Sofyan Amrabat sent off late on, were among the favourites at the tournament in the Ivory Coast, but their continental curse continues and they remain without a Cup of Nations title since 1976, this time undone in the muggy heat of the Laurent Pokou Stadium.
South Africa led in the 57th minute when midfielder Themba Zwane, so often the creative fulcrum of the side, slipped a pass through to tall striker Makgopa and he calmly slid the ball past goalkeeper Yassine Bounou, before Mokoena fired in a superb late free kick.
Morocco had a chance to level with the score at 1-0 when they were awarded a penalty, but Achraf Hakimi hit the crossbar and it will be South Africa who play Cape Verde in the quarter-finals in Yamoussoukro on Saturday. REUTERS
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https://www.straitstimes.com/sport/football/south-africa-stun-fancied-morocco-to-book-quarter-final-place
| 2024-01-31T00:04:44Z
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Banco Santander (SAN - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Banco Santander is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Banco Santander 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 Banco Santander
This financial holding company is expected to earn $0.70 per share for the fiscal year ending December 2023, which represents a year-over-year change of 22.8%.
Analysts have been steadily raising their estimates for Banco Santander. Over the past three months, the Zacks Consensus Estimate for the company has increased 2%.
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 Banco Santander to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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https://www.zacks.com/stock/news/2218145/banco-santander-san-upgraded-to-strong-buy-heres-what-you-should-know
| 2024-01-31T00:04:48Z
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Investors might want to bet on Turtle Beach (HEAR - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Turtle Beach is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Turtle Beach imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Turtle Beach
This audio technology company is expected to earn -$0.29 per share for the fiscal year ending December 2023, which represents a year-over-year change of 80.9%.
Analysts have been steadily raising their estimates for Turtle Beach. Over the past three months, the Zacks Consensus Estimate for the company has increased 29%.
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 Turtle Beach to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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https://www.zacks.com/stock/news/2218146/what-makes-turtle-beach-hear-a-new-strong-buy-stock
| 2024-01-31T00:04:55Z
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Great Britain's Jodie Burrage dispatched No. 7 seed Varvara Gracheva of France 6-4, 6-0 in first-round action at the Upper Austria Ladies Linz on Tuesday.
Burrage fired six aces, converted five of six break-point opportunities and saved four of the five break points she faced, while Gracheva had five double faults without an ace in the 67-minute match.
The only match to go three sets Tuesday saw Denmark's Clara Tauson rally to defeat Italy's Camila Giorgi 3-6, 6-3, 6-3. Tauson had 10 aces and won 37 of 46 first-service points (80.4 percent).
Other winners included Italians Lucia Bronzetti and Elisabetta Cocciaretto, Clara Burel of France, Jule Niemeier of Germany and Jaqueline Cristian of Romania.
Thailand Open
Australian Arina Rodionova took down sixth seed Yue Yuan of China 7-6 (6), 4-6, 6-3 in two hours and 52 minutes in the first round in Hua Hin.
Yuan had triple set point in the first-set tiebreaker before Rodionova won five straight points to charge back, tie and ultimately move ahead to claim the set.
China's Lin Zhu, the No. 2 seed, took down Australia's Taylah Preston 6-4, 7-5. Zhu is the highest seed remaining after top-seeded Magda Linette of Poland lost Monday.
No. 4 seed Tatjana Maria of Germany, No. 7 seed Yulia Putintseva of Kazakhstan and No. 8 seed Anna Karolina Schmiedlova of Slovakia all advanced, as did the Czech Republic's Linda Fruhvirtova, American Katie Volynets and China's Yafan Wang and Zhuoxuan Bai.
--Field Level Media REUTERS
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https://www.straitstimes.com/sport/tennis/wta-roundup-jodie-burrage-sails-to-easy-upset-in-linz
| 2024-01-31T00:04:55Z
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Investors might want to bet on American Superconductor (AMSC - Free Report) , as it has been recently upgraded 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 sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for American Superconductor is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for American Superconductor imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for American Superconductor
This wind turbine component maker is expected to earn -$0.08 per share for the fiscal year ending March 2024, which represents a year-over-year change of 92.2%.
Analysts have been steadily raising their estimates for American Superconductor. Over the past three months, the Zacks Consensus Estimate for the company has increased 52%.
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 American Superconductor 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/2218147/american-superconductor-amsc-upgraded-to-buy-what-does-it-mean-for-the-stock?
| 2024-01-31T00:05:01Z
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OTTAWA - The Canadian government said on Jan 30 that its global affairs department suffered a data breach and that there was unauthorised access to personal information of users including employees.
Global Affairs Canada (GAC), in a statement, said it activated an unplanned IT outage on Jan 24 to “address the discovery of malicious cyber activity”.
The department, which includes the Canadian trade and foreign ministries, did not say when the data breach occurred. Canadian media, citing unnamed sources, reported earlier that internal systems were vulnerable between Dec 20 and Jan 24.
GAC said its critical services and external communication channels were accessible and operational and that IT teams were working to restore full connectivity.
The department said it was contacting those affected by the breach with mitigation measures and that employees working remotely in Canada had been provided with workarounds to continue their duties. REUTERS
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https://www.straitstimes.com/world/canadas-foreign-affairs-department-hit-by-data-breach
| 2024-01-31T00:05:05Z
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A.O. Smith (AOS - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for A.O. Smith is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For A.O. Smith, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for A.O. Smith
This maker of water heaters and boilers is expected to earn $3.80 per share for the fiscal year ending December 2023, which represents a year-over-year change of 21%.
Analysts have been steadily raising their estimates for A.O. Smith. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.6%.
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 A.O. Smith 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/2218148/ao-smith-aos-upgraded-to-buy-what-does-it-mean-for-the-stock?
| 2024-01-31T00:05:07Z
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Nomura Holdings (NMR - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Nomura Holdings currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if NMR is a promising momentum pick, let's examine some Momentum Style elements to see if this financial services company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For NMR, shares are up 2.83% over the past week while the Zacks Financial - Investment Bank industry is up 0.97% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 16.19% compares favorably with the industry's 1.31% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Nomura Holdings have increased 26.88% over the past quarter, and have gained 30.35% in the last year. On the other hand, the S&P 500 has only moved 20.13% and 22.79%, respectively.
Investors should also take note of NMR's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, NMR is averaging 7,247,491 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with NMR.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost NMR's consensus estimate, increasing from $0.23 to $0.33 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that NMR is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Nomura Holdings on your short list.
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https://www.zacks.com/stock/news/2218149/what-makes-nomura-holdings-nmr-a-strong-momentum-stock-buy-now?
| 2024-01-31T00:05:13Z
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WASHINGTON - After successful testing in the US, Ukraine will soon receive it first big batch of long-range missiles made by Boeing that promise to extend its range deep into Russian-held territory, according to sources familiar with the matter.
They could arrive “on the battlefield” as soon as Jan 31, Politico reported.
Ukraine needs Boeing’s Ground Launched Small Diameter Bombs (GLSDB) to augment the limited number of 100-mile (160.9km) range Army Tactical Missile System (ATACMS) rockets the US has sent.
The glide bomb will allow Ukraine’s military to hit targets at twice the distance reachable by the rockets it now fires from the US-supplied High Mobility Artillery Rocket System (Himars) and could force Russia to move supplies even farther from the front lines.
Tests of newly built GLSDB occurred on Jan 16 at the Eglin Air Force Base test range in Florida, a person familiar with the test and two people briefed told Reuters, enabling shipments to begin. The people briefed on the test said six rockets were fired as a part of the early morning test over the Gulf of Mexico.
The plan was for launchers and dozens of warheads to move to Ukraine via an air transport, the person familiar with the test and one of people briefed said.
The timing of the delivery and their ultimate deployment has been secret to preserve the element of surprise. A Pentagon spokesperson declined to comment.
For the Biden administration, the decision to send the GLSDB to Ukraine represents an alternative ATACMS missile, which the administration has so far provided in only small numbers.
Ukraine’s supply of ATACMS has been depleted by use.
The new glide bombs, while not as powerful, are much cheaper, smaller and easier to deploy than ATACMS, making them well suited for much of what Ukraine hopes to accomplish: disrupting Russian operations and creating a tactical advantage.
“It’s long past time to finding creative means to provide the capability and capacity needed to strike deep and often behind Russian lines,” said Tom Karako, a weapons and security expert at the Centre for Strategic and International Studies.
When Boeing pitched the weapon to commanders last year, it presented an “expedited nine-month option” for delivery that required exempting the contractor from an in-depth review that ensures the Pentagon is getting the best deal possible.
The Pentagon said publicly that funding was approved in February, a contract to begin production was inked the following month, US officials have told Reuters. Because GLSDB has already been paid for, the weapon can avoid the recent Congressional funding dispute over continued weapons shipments to Ukraine.
Boeing, the prime contractor for the weapon, did not respond to a request for comment. REUTERS
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https://www.straitstimes.com/world/europe/ukraines-new-100-mile-bomb-from-boeing-is-ready-sources-say
| 2024-01-31T00:05:15Z
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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Micron (MU - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Micron currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if MU is a promising momentum pick, let's examine some Momentum Style elements to see if this chipmaker holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For MU, shares are up 0.62% over the past week while the Zacks Semiconductor Memory industry is up 0.62% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 4.37% compares favorably with the industry's 4.37% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Micron have risen 22.15%, and are up 44.34% in the last year. In comparison, the S&P 500 has only moved 20.13% and 22.79%, respectively.
Investors should also take note of MU's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, MU is averaging 13,605,398 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with MU.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost MU's consensus estimate, increasing from -$1.31 to -$0.43 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that MU is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Micron on your short list.
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https://www.zacks.com/stock/news/2218150/micron-mu-is-a-great-momentum-stock-should-you-buy?
| 2024-01-31T00:05:20Z
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Camden National (CAC - Free Report) reported $38.7 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 17.3%. EPS of $0.85 for the same period compares to $1.05 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $42.75 million, representing a surprise of -9.49%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.85.
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 Camden National performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Efficiency Ratio (GAAP): 63.5% versus the two-analyst average estimate of 62.8%.
- Net interest margin (fully-taxable equivalent): 2.4% versus the two-analyst average estimate of 2.4%.
- Total Non-Interest Income: $5.99 million versus $10.83 million estimated by two analysts on average.
- Net Interest Income: $32.71 million versus the two-analyst average estimate of $31.93 million.
Shares of Camden National have returned -0.1% over the past month versus the Zacks S&P 500 composite's +3.4% 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/2218151/camden-national-cac-reports-q4-earnings-what-key-metrics-have-to-say
| 2024-01-31T00:05:26Z
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First Financial Corp. (THFF - Free Report) reported $50.84 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 6.3%. EPS of $1.06 for the same period compares to $1.37 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $51.1 million, representing a surprise of -0.52%. The company delivered an EPS surprise of -6.19%, with the consensus EPS estimate being $1.13.
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.
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 First Financial Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net Interest Margin [%]: 3.6% versus 3.7% estimated by two analysts on average.
- Efficiency Ratio [%]: 65.6% versus the two-analyst average estimate of 62.2%.
- Total Non Interest Income: $11.25 million versus the two-analyst average estimate of $9.50 million.
- Gain on sale of mortgage loans: $0.16 million versus $0.20 million estimated by two analysts on average.
Shares of First Financial Corp. have returned -1.4% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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https://www.zacks.com/stock/news/2218152/first-financial-corp-thff-reports-q4-earnings-what-key-metrics-have-to-say
| 2024-01-31T00:05:32Z
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Tech heavyweight Apple (AAPL - Free Report) is set to report quarterly results on Thursday after the bell. Apple, a Zacks Rank #3 (Hold), boasts a stellar track record of exceeding earnings estimates. As AAPL stock hovers near all-time highs, is the iPhone maker a buy heading into earnings?
Analysts are expecting AAPL to deliver quarterly earnings of $2.09 per share, which would reflect growth of 11.17% relative to the same quarter in the prior year. Revenues of $117.6 billion would mark a 0.4% improvement versus the year-ago period. Apple has beaten earnings estimates in three of the past four quarters, sporting a 3.47% average earnings surprise over that timeframe.
Apple’s business contains a Services portfolio that has steadily grown over time, including popular services like Apple Pay and AppleCare that have become a major cash cow. The company also recently launched the mixed reality Vision Pro headset.
Our proprietary Zacks Earnings ESP is predicting another earnings beat for the upcoming announcement.
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https://www.zacks.com/stock/news/2218155/is-apple-aapl-a-buy-heading-into-fiscal-q1-earnings-announcement?
| 2024-01-31T00:05:38Z
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Inter Parfums (IPAR - Free Report) , which belongs to the Zacks Cosmetics industry, could be a great candidate to consider.
This perfume maker has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 26.59%.
For the most recent quarter, Inter Parfums was expected to post earnings of $1.27 per share, but it reported $1.66 per share instead, representing a surprise of 30.71%. For the previous quarter, the consensus estimate was $0.89 per share, while it actually produced $1.09 per share, a surprise of 22.47%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Inter Parfums lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Inter Parfums has an Earnings ESP of +11.27% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218156/will-inter-parfums-ipar-beat-estimates-again-in-its-next-earnings-report?
| 2024-01-31T00:05:44Z
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Cencora (COR - Free Report) , which belongs to the Zacks Medical Services industry.
This prescription drug distributor has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 2.84%.
For the last reported quarter, Cencora came out with earnings of $2.86 per share versus the Zacks Consensus Estimate of $2.79 per share, representing a surprise of 2.51%. For the previous quarter, the company was expected to post earnings of $2.83 per share and it actually produced earnings of $2.92 per share, delivering a surprise of 3.18%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Cencora lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Cencora has an Earnings ESP of +2.84% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on January 31, 2024.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218157/why-cencora-cor-could-beat-earnings-estimates-again
| 2024-01-31T00:05:51Z
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? International Seaways (INSW - Free Report) , which belongs to the Zacks Transportation - Shipping industry, could be a great candidate to consider.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 17%.
For the most recent quarter, International Seaways was expected to post earnings of $1.68 per share, but it reported $1.99 per share instead, representing a surprise of 18.45%. For the previous quarter, the consensus estimate was $2.70 per share, while it actually produced $3.12 per share, a surprise of 15.56%.
With this earnings history in mind, recent estimates have been moving higher for International Seaways. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
International Seaways currently has an Earnings ESP of +3.36%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218158/will-international-seaways-insw-beat-estimates-again-in-its-next-earnings-report?
| 2024-01-31T00:05:57Z
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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Wingstop (WING - Free Report) . This company, which is in the Zacks Retail - Restaurants industry, shows potential for another earnings beat.
This restaurant chain has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 22.23%.
For the most recent quarter, Wingstop was expected to post earnings of $0.52 per share, but it reported $0.69 per share instead, representing a surprise of 32.69%. For the previous quarter, the consensus estimate was $0.51 per share, while it actually produced $0.57 per share, a surprise of 11.76%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Wingstop lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Wingstop currently has an Earnings ESP of +0.20%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on February 21, 2024.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218159/will-wingstop-wing-beat-estimates-again-in-its-next-earnings-report?
| 2024-01-31T00:06:03Z
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Idexx Laboratories (IDXX - Free Report) , which belongs to the Zacks Medical - Instruments industry, could be a great candidate to consider.
This Animal diagnostic and health care company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.31%.
For the most recent quarter, Idexx was expected to post earnings of $2.37 per share, but it reported $2.53 per share instead, representing a surprise of 6.75%. For the previous quarter, the consensus estimate was $2.43 per share, while it actually produced $2.67 per share, a surprise of 9.88%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Idexx lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Idexx has an Earnings ESP of +2.36% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on February 5, 2024.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218160/why-idexx-idxx-is-poised-to-beat-earnings-estimates-again
| 2024-01-31T00:06:10Z
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Alkermes (ALKS - Free Report) , which belongs to the Zacks Medical - Biomedical and Genetics industry, could be a great candidate to consider.
This drugmaker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 30.02%.
For the most recent quarter, Alkermes was expected to post earnings of $0.44 per share, but it reported $0.64 per share instead, representing a surprise of 45.45%. For the previous quarter, the consensus estimate was $0.48 per share, while it actually produced $0.55 per share, a surprise of 14.58%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Alkermes lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Alkermes has an Earnings ESP of +8.88% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218161/why-alkermes-alks-could-beat-earnings-estimates-again
| 2024-01-31T00:06:16Z
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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Docebo Inc. (DCBO - Free Report) . This company, which is in the Zacks Internet - Software industry, shows potential for another earnings beat.
When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 41.07%, on average, in the last two quarters.
For the last reported quarter, Docebo Inc. Came out with earnings of $0.15 per share versus the Zacks Consensus Estimate of $0.14 per share, representing a surprise of 7.14%. For the previous quarter, the company was expected to post earnings of $0.08 per share and it actually produced earnings of $0.14 per share, delivering a surprise of 75%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Docebo Inc. Lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Docebo Inc. Currently has an Earnings ESP of +11.63%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on February 23, 2024.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218162/will-docebo-inc-dcbo-beat-estimates-again-in-its-next-earnings-report?
| 2024-01-31T00:06:20Z
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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Armstrong World Industries (AWI - Free Report) . This company, which is in the Zacks Building Products - Miscellaneous industry, shows potential for another earnings beat.
When looking at the last two reports, this ceiling and wall systems manufacturer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 14.21%, on average, in the last two quarters.
For the last reported quarter, Armstrong World Industries came out with earnings of $1.60 per share versus the Zacks Consensus Estimate of $1.30 per share, representing a surprise of 23.08%. For the previous quarter, the company was expected to post earnings of $1.31 per share and it actually produced earnings of $1.38 per share, delivering a surprise of 5.34%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Armstrong World Industries lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Armstrong World Industries currently has an Earnings ESP of +2.66%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on February 20, 2024.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218163/why-armstrong-world-industries-awi-could-beat-earnings-estimates-again
| 2024-01-31T00:06:26Z
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Owens Corning (OC - Free Report) , which belongs to the Zacks Building Products - Miscellaneous industry.
This construction materials company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 18.83%.
For the last reported quarter, Owens Corning came out with earnings of $4.15 per share versus the Zacks Consensus Estimate of $3.78 per share, representing a surprise of 9.79%. For the previous quarter, the company was expected to post earnings of $3.30 per share and it actually produced earnings of $4.22 per share, delivering a surprise of 27.88%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Owens Corning lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Owens Corning has an Earnings ESP of +1.95% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on February 14, 2024.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218164/can-owens-corning-oc-keep-the-earnings-surprise-streak-alive?
| 2024-01-31T00:06:33Z
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Williams Companies, Inc. (The) (WMB - Free Report) , which belongs to the Zacks Oil and Gas - Production and Pipelines industry.
When looking at the last two reports, this pipeline operator has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 10.10%, on average, in the last two quarters.
For the last reported quarter, Williams Companies, Inc. (The) came out with earnings of $0.45 per share versus the Zacks Consensus Estimate of $0.40 per share, representing a surprise of 12.50%. For the previous quarter, the company was expected to post earnings of $0.39 per share and it actually produced earnings of $0.42 per share, delivering a surprise of 7.69%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Williams Companies, Inc. (The) lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Williams Companies, Inc. (The) currently has an Earnings ESP of +1.82%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on February 14, 2024.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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https://www.zacks.com/stock/news/2218165/will-williams-companies-inc-the-wmb-beat-estimates-again-in-its-next-earnings-report?
| 2024-01-31T00:06:39Z
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Koninklijke Philips N.V. (PHG - Free Report) reported fourth-quarter 2023 adjusted earnings of 44 cents per share, outpacing the Zacks Consensus Estimate by 7.3%.
Revenues of $5.45 billion missed the consensus mark by 0.4%.
In domestic currency, sales decreased 7% on a year-over-year basis to €5.06 billion.
Comparable sales (including adjustments for consolidation charges & currency effects) declined 1% year over year. The decline was attributed to provisions charged to sales of €174 million, mainly in connection with the Respironics consent decree, excluding which comparable sales increased 3% year over year.
This growth was primarily attributed to the robust performance of the Diagnosis & Treatment and Personal Health segments.
Comparable sales in the Diagnosis & Treatment and Personal Health businesses recorded mid-single-digit and high-single-digit growth year over year, respectively.
However, comparable sales in the Connected Care business witnessed a low double-digit decline on a year-over-year basis.
Further, Philips’ comparable order intake declined 3% year over year in the reported quarter, primarily due to tough comparison.
Sales improved 7% on a comparable basis in growth geographies. Sales in mature geographies were down 4% year over year on a comparable basis.
Segmental Update
Diagnosis & Treatment revenues declined 2% from the year-ago quarter to €2.5 billion. Comparable sales jumped 5% year over year, driven by high-single-digit growth in Image-Guided Therapy.
Connected Care revenues decreased 17% year over year to €1.35 billion. Comparable sales fell 11%. Excluding provisions charged to sales related to Respironics consent decree, comparable sales remained flat with high single-digit growth in Enterprise Informatics.
Personal Health revenues rose 1% year over year to €1.07 billion. Comparable sales rose 7% year over year, owing to strength in Personal Care.
Other segment sales amounted to €143 million, down 26.3% on a year-over-year basis.
Operating Details
Gross margin contracted 550 basis points (bps) on a year-over-year basis to 35.5% in the reported quarter.
General & administrative expenses, as a percentage of sales, were 2.8%, which contracted 80 bps on a year-over-year basis. Moreover, selling expenses expanded 40 bps to 24.1%. Research & development expenses dipped 30 bps to 8.9%.
Restructuring, acquisition-related and other charges came in at €547 million compared with €350 million a year ago.
Operating model productivity, procurement and other productivity programs delivered savings of €149 million, €64 million and €58 million, respectively. This resulted in total savings of €271 million.
Phillips’ adjusted earnings before interest, taxes and amortization (EBITA) — the company’s preferred measure of operational performance — rose 0.3% year over year to €653 million. EBITA margin expanded 90 bps on a year-over-year basis to 12.9% in the reported quarter.
Diagnosis & Treatment’s adjusted EBITA margin contracted 180 bps on a year-over-year basis to 10.4%, primarily due to an unfavorable mix and phasing of production and costs.
Connected Care’s adjusted EBITA margin was 13.3% in the reported quarter, which expanded 170 bps on a year-over-year basis.
Personal Health’s adjusted EBITA margin expanded 290 bps on a year-over-year basis to 19.9%.
Balance Sheet
As of Dec 31, 2023, Philips’ cash and cash equivalents were €1.87 billion compared with €1.15 billion as of Sep 30, 2023. Total debt was €7.7 billion compared with €8.16 billion as of Sep 30, 2023.
Operating cash flow was €1.3 billion against the year-ago quarter’s operating cash flow of €540 million.
Free cash flow was €1.13 million against the year-ago quarter’s free cash flow of €303 million.
2024 Guidance
Philips expects to deliver 3-5% of comparable sales growth.
Further, adjusted EBITA margin is expected in the band of 11-11.5%.
Philips expects free cash flow to be between €800 million and €1 billion.
Zacks Rank & Stocks to Consider
Currently, Philips carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical market sector are DaVita (DVA - Free Report) , Amedisys (AMED - Free Report) and Encompass Health (EHC - Free Report) . While DaVita sports a Zacks Rank #1 (Strong Buy) at present, Amedisys and Encompass Health carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita shares have gained 31.5% in the past year. The long-term earnings growth rate for DVA is currently projected at 17.26%
Amedisys shares have lost 1.5% in the past year. AMED’s long-term earnings growth rate is currently projected at 9.58%.
Encompass Health shares have lost 14.7% in the past year. The long-term earnings growth rate for EHC is currently projected at 13.51%
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https://www.zacks.com/stock/news/2218166/philips-phg-q4-earnings-beat-estimates-revenues-fall-yy
| 2024-01-31T00:06:45Z
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Corning Incorporated (GLW - Free Report) reported mixed fourth-quarter 2023 results, wherein the top line surpassed the Zacks Consensus Estimate, but the bottom line missed the same. The company witnessed a top-line contraction year over year due to sluggish demand trends in several verticals, including Optical Communications and Specialty Materials. Strong momentum in the Environmental Technologies partially cushioned the top line. The strategy of price hikes to offset inflation and various productivity improvement actions somewhat strengthened profitability.
Net Income
On a GAAP basis, the company reported a net loss of $40 million or a loss of 5 cents per share compared to a loss of $36 million or 4 cents per share in the year-ago quarter. Lower net sales, constant currency adjustments, restructuring and asset write-off charges affected the GAAP earnings during the quarter.
Core earnings were $339 million or 39 cents per share, down from $402 million or 47 cents per share in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate by a penny.
In 2023, quarterly GAAP net income was $581 million or 68 cents per share, down from $1.31 billion or $1.54 per share in 2022. Core net income stands at $1.46 billion or $1.70 per share, down 18% year over year.
Revenues
Net sales on a GAAP basis declined to $2.99 billion from $3.4 billion reported in the year-ago quarter. Revenue decline in Optical Communications, Specialty Materials and Life Sciences impeded the top-line growth. Core sales were down 10% to $3.27 billion. However, the top line beat the consensus estimate of $3.26 billion.
In 2023, GAAP net sales were $12.58 billion, down 11% from the previous year’s figure of $14.18 billion. Core sales decreased to $13.58 billion from $14.8 billion in 2022.
Segment Results
Optical Communications generated $903 million in revenues, down 24% from $1.19 billion in the year-ago quarter. The top line beat our revenue estimate of $819.8 million. Net income from this segment declined to $88 million from $130 million reported in the year-ago quarter. Declining demand from carrier customers and inventory adjustments impacted the net sales.
Display Technologies registered $869 million in revenues, up 11% year over year. Net sales missed our revenue estimate of $923.7 million. The segment’s net income was $232 million compared with the prior-year quarter’s figure of $171 million. Despite a decrease in volume, the company’s strategy of price hikes supported the top line.
Net sales from Specialty Materials stood at $473 million, down 6% year over year, owing to declining sales volume. The top line missed our estimate of $519.8 million. Net income was $58 million, down from $78 million reported in the prior-year quarter.
Environmental Technologies contributed $429 million in net sales, up from $394 million in the year-ago quarter, backed by healthy demand trends. The top line surpassed our revenue estimate of $399.2 million. Net income was $98 million, up from $69 million in the year-earlier quarter.
Revenues from the Life Sciences segment were $242 million compared with the year-earlier quarter’s figure of $294 million. Segment net income was $17 million compared with $31 million in the year-ago quarter.
Hemlock and Emerging Growth Businesses reported a 23% decline in net sales year over year to $356 million. The company reported a net loss of $19 million from this segment against a net income of $4 million in the year-ago quarter. However, the higher sales volume of semiconductor polysilicon partially cushioned the revenues in this vertical.
Other Details
Core gross profit was $1.2 billion compared with $1.22 billion a year ago, with respective margins of 36.9% and 33.6%. The growth was driven by various productivity enhancement initiatives. Core operating margin improved to 16.3% from 14% in the year-earlier quarter.
Cash Flow & Liquidity
During the fourth quarter of 2023, Corning generated $713 million of net cash from operating activities compared with $617 million in the prior-year period. The company registered an adjusted free cash flow of $487 million compared with the prior year’s figure of $377 million.
In 2023, Corning generated $2 billion cash from operations compared with $2.61 billion in 2022.
As of Dec 31, 2023, Corning had $1.77 billion in cash and cash equivalents, with $7.2 billion of long-term debt compared to respective tallies of $1.67 billion or $6.68 billion in 2022.
Outlook
For the first quarter of 2024, core sales are estimated at $3.1 billion. Core EPS is projected to be in the range of 32-38 cents. The first quarter EPS is anticipated to be the lowest of fiscal 2024. Management expects to increase sales by more than $3 billion in the medium term by capitalizing on the market recovery.
Zacks Rank & Stocks to Consider
Corning currently carries a Zacks Rank #3 (Hold)
Here are some better-ranked stocks that investors may consider.
NVIDIA Corporation (NVDA - Free Report) , currently carrying a Zacks Rank #2 (Buy), delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 170.71%. In the last reported quarter, it delivered an earnings surprise of 78.99%.
IDCC 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.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 12%, on average, in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
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https://www.zacks.com/stock/news/2218169/corning-glw-q4-earnings-miss-estimates-on-lower-revenues
| 2024-01-31T00:06:51Z
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HCA Healthcare, Inc. (HCA - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $5.90, which beat the Zacks Consensus Estimate by 16.8%. The bottom line improved 27.2% year over year.
Revenues amounted to $17.3 billion, which improved 11.6% year over year in the quarter under review. The top line outpaced the consensus mark by 4.5%.
The strong quarterly results gained from expanding patient volumes and increased surgeries contributed substantially to the top line of HCA Healthcare. However, the upside was partly offset by escalating salaries and benefits expenses.
Quarterly Details
Same-facility equivalent admissions advanced 3.9% year over year in the fourth quarter, while same-facility admissions grew 3.1% year over year. The metrics beat our growth estimates of 3.2% and 2.8%, respectively.
Same-facility revenue per equivalent admission rose 6.9% year over year in the quarter under review and surpassed our growth estimate of 3.3%.
Same-facility inpatient surgeries grew 1% year over year but missed our growth estimate of 1.7%. Same-facility outpatient surgeries inched up 0.7% year over year but lagged our growth estimate of 2.4%. Additionally, same-facility emergency room visits advanced 2.1% year over year in the fourth quarter but missed our growth estimate of 2.8%.
Salaries and benefits, supplies and other operating expenses of $10.1 billion escalated 7.1% year over year and came higher than our estimate of $9.9 billion.
Adjusted EBITDA improved 13.8% year over year to $3.6 billion in the quarter under review.
HCA Healthcare operated 186 hospitals and roughly 2,400 ambulatory sites of care across 20 states and the United Kingdom as of Dec 31, 2023.
Financial Update (as of Dec 31, 2023)
HCA Healthcare exited the fourth quarter with cash and cash equivalents of $935 million, up from the 2022-end level of $908 million. It had a leftover capacity of $6.1 billion under its credit facilities at the fourth-quarter end.
Total assets of $56.2 billion increased from $52.4 billion at 2022-end.
Long-term debt, excluding debt issuance costs and discounts, amounted to $37.2 billion. The figure declined from $37.7 billion at 2022-end.
Capital expenditures were $1.2 billion minus acquisitions during the quarter under review.
Cash Flows
HCA Healthcare generated cash from operations of $9.4 billion in 2023, which improved 10.7% year over year.
Capital Deployment Update
HCA bought back shares worth $910 million in the fourth quarter. It had a leftover capacity of $775 million under its buyback authorization as of Dec 31, 2023. Management also sanctioned an additional up to $6 billion increase in its share repurchase program.
The board of directors hiked its quarterly cash dividend to 66 cents per share, which will be paid out on Mar 29, 2024, to its shareholders of record as of Mar 15.
Full-Year Update
In 2023, HCA Healthcare’s adjusted EPS came in at $19.01, surpassing the management guidance range of $17.80-$18.50. The bottom line improved 12.6% from the 2022 figure. Revenues of $65 billion grew 7.9% from the 2022 figure and surpassed company guidance of $63.5 billion-$64.5 billion.
Adjusted EBITDA improved 5% year over year to $12.7 billion in 2023 and surpassed the management view of $12.3-$12.6 billion.
2024 View
Annual revenues are presently estimated to lie between $67.8 billion and $70.3 billion in 2024. The midpoint of the outlook indicates a 6.2% rise from the 2023 reported figure.
Management is currently projecting adjusted EBITDA to be within $12.9-$13.6 billion for 2024. The midpoint of the outlook suggests 3.9% growth from the 2023 figure.
Net income attributable to HCA Healthcare is presently anticipated to lie between $5.2 billion and $5.6 billion. The midpoint of the outlook suggests 3% growth from the 2023 figure.
EPS is currently forecasted to be in the $19.70-$21.20 band for 2024. The midpoint of the guidance implies a 7.6% rise from the 2023 figure.
Capital expenditures, excluding acquisitions, are expected to be around $5.1-$5.3 billion.
Zacks Rank
HCA Healthcare currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported fourth-quarter 2023 results so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Marsh & McLennan Companies, Inc. (MMC - Free Report) beat the respective Zacks Consensus Estimate.
UnitedHealth Group reported fourth-quarter 2023 adjusted EPS of $6.16, which outpaced the Zacks Consensus Estimate by 3%. The bottom line advanced 15.4% year over year. Revenues improved 14.1% year over year to $94.4 billion in the quarter under review. The top line surpassed the consensus mark by 2.6%.
Elevance Health reported fourth-quarter 2023 adjusted EPS of $5.62, which outpaced the Zacks Consensus Estimate by 1.3%. The bottom line advanced 15.2% year over year. Revenues improved 7% year over year to $42.5 billion in the quarter under review. The top line surpassed the consensus mark by 1.5%.
Marsh & McLennan Companies reported fourth-quarter 2023 adjusted EPS of $1.68, which outpaced the Zacks Consensus Estimate by 5%. The bottom line advanced 14% year over year. Revenues improved 11% year over year to $5.6 billion in the quarter under review. The top line surpassed the consensus mark by a whisker.
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https://www.zacks.com/stock/news/2218170/hca-healthcares-hca-q4-earnings-beat-on-improved-admissions
| 2024-01-31T00:06:57Z
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Investors might want to bet on Synovus Financial (SNV - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this holding company for Synovus Bank is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Synovus, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The earnings estimate of $1.01 per share for the current quarter represents a change of -24.06% from the number reported a year ago.
Over the last 30 days, the Zacks Consensus Estimate for Synovus has increased 9.75% because six estimates have moved higher compared to no negative revisions.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $4.03 per share represents a change of -2.18% from the year-ago number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Synovus. Over the past month, seven estimates have moved higher compared to two negative revisions, helping the consensus estimate increase 5.43%.
Favorable Zacks Rank
The promising estimate revisions have helped Synovus earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Synovus shares have added 5.2% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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https://www.zacks.com/stock/news/2218171/can-synovus-snv-run-higher-on-rising-earnings-estimates?
| 2024-01-31T00:07:04Z
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Qualcomm Incorporated (QCOM - Free Report) is scheduled to report first-quarter fiscal 2024 results on Jan 31, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 2.23%, on average. The San Diego, CA-based company is expected to record a top-line expansion year over year, backed by the growing demand for Snapdragon chipsets and the introduction of cutting-edge AI-native solutions.
Factors at Play
During the quarter, Qualcomm announced the launch of next-generation Snapdragon platforms designed to support advanced generative AI devices and applications. It introduced the Snapdragon 8 Gen 3, which is equipped with the most powerful NPU (Neural Processing Unit) for mobile devices. Leveraging AI, it significantly improves the camera, gaming, sound, content creation and connectivity experience for high-end smartphones.
It also unveiled the Snapdragon X Elite, which combines industry-leading NPU with top-tier CPU performance. The platform delivers robust efficiency in completing generative AI tasks and its high reliability makes it suitable for Windows 11 PCs. These are likely to have generated incremental revenues in the quarter.
In the quarter under review, Qualcomm has unveiled state-of-the-art Snapdragon 7 Gen 3 chipsets with advanced AI features for mid-range smartphones. Owing to its premium attributes, the product is already getting attention from major manufacturers, with HONOR and VIVO, two prominent Chinese smartphone makers, set to become the first to incorporate the chipsets into their products. Qualcomm’s X35 5G Modem-RF System is also gaining strong momentum, owing to the growing demand for 5G RedCap devices. These developments are expected to have a positive impact on the company’s first-quarter results.
Our revenue estimate for the QCT segment is pegged at $8.05 billion, suggesting a year-over-year improvement of 2.1%, while that for the QTL segment is pegged at $1.35 billion, down 11%.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $9.5 billion, indicating growth from the year-ago quarter’s tally of $9.45 billion. Adjusted earnings per share are pegged at $2.38, suggesting a marginal increase from $2.37 in the year-ago quarter.
Earnings Whispers
Our proven model predicts a likely earnings beat for Qualcomm 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 exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +3.45%. The Most Accurate Estimate is pegged at $2.46, while the Zacks Consensus Estimate stands at $2.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Qualcomm currently has a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these, too, 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 +0.79% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218174/will-top-line-growth-boost-qualcomms-qcom-q1-earnings?
| 2024-01-31T00:07:10Z
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The Cigna Group (CI - Free Report) is set to report its fourth-quarter 2023 results on Feb 2, before the opening bell. Increased pharmacy revenues and net investment income in the quarter are likely to be partially undone by higher benefits and expenses.
Where Do the Estimates Stand?
The Zacks Consensus Estimate for fourth-quarter earnings per share of $6.52 suggests a 31.5% increase from the prior-year figure of $4.96. The consensus mark remained stable over the past week. The consensus estimate for fourth-quarter revenues of $48.8 billion indicates a 6.7% increase from the year-ago reported figure.
Cigna beat the consensus estimate for earnings in all the prior four quarters, with the average being 2.5%. This is depicted in the graph below:
Before we get into what to expect for the to-be-reported quarter in detail, it’s worth taking a look at CI’s previous-quarter performance first.
Q3 Earnings Rewind
In the last reported quarter, the global health company’s adjusted earnings per share of $6.77 beat the Zacks Consensus Estimate by 1.7%, supported by the solid performance of the Evernorth Health Services and Cigna Healthcare businesses, partially offset by an elevated expense level, resulting from higher pharmacy and other costs.
Now, let’s see how things have shaped up before the fourth-quarter earnings announcement.
Q4 Factors to Note
Cigna's fourth-quarter results are expected to be positively influenced by enhanced performances in the Evernorth and Cigna Healthcare segments. The company is expected to have gained from an expanding customer base, especially in the Middle Market space and the growth in specialty pharmacy services during the quarter under review.
Both the Zacks Consensus Estimate and our model estimate for pharmacy revenues suggest a nearly 4% rise from the year-ago quarter’s actuals. Also, the consensus mark for fees and other revenues indicates 15.6% year-over-year growth, whereas our estimate suggests an almost 10% increase.
The consensus mark for Evernorth’s revenues indicates a 6.2% year-over-year jump, whereas our model predicts a more than 5% increase. Both the Zacks Consensus Estimate and our estimate for total medical customers signal a nearly 9% increase from the year-ago period’s reported number.
Moreover, the Zacks Consensus Estimate for net investment income suggests nearly 38% growth from the year-ago period. Both the consensus mark and our estimate for the fourth quarter medical care ratio indicate a 30 basis points year-over-year improvement. The factors stated above are likely to have positioned the company for year-over-year growth in the fourth quarter.
However, we expect total Benefits and Expenses in the quarter to have increased more than 5% year over year due to higher pharmacy and other service costs, medical costs and other benefit expenses and SG&A costs, partially offsetting the positives and making an earnings beat uncertain. We expect pharmacy and other service costs to rise above $33.3 billion in the fourth quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Cigna 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, as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.33%. This is because the Most Accurate Estimate currently stands at $6.50 per share, lower than the Zacks Consensus Estimate of $6.52.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cigna currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Cigna, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +15.91% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GoodRx’s bottom line for the to-be-reported quarter is pegged at 7 cents per share, which has remained stable over the past week. The consensus mark for GDRX’s revenues is pegged at $193.3 million, signaling 5% year-over-year growth.
Globus Medical, Inc. (GMED - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank #3.
The Zacks Consensus Estimate for Globus Medical’s bottom line for the to-be-reported quarter is pegged at 59 cents per share, which has witnessed four upward revisions over the past month against none in the opposite direction. GMED beat earnings estimates in each of the past four quarters, with an average surprise of 5.4%.
Arvinas, Inc. (ARVN - Free Report) has an Earnings ESP of +17.19% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Arvinas’ earnings per share for the to-be-reported quarter indicates an 18% year-over-year improvement. ARVN beat earnings estimates in two of the past four quarters and missed on the other occasions.
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https://www.zacks.com/stock/news/2218187/cigna-ci-to-report-q4-earnings-can-rising-expenses-hurt?
| 2024-01-31T00:07:16Z
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Aon plc (AON - Free Report) is set to report its fourth-quarter 2023 results on Feb 2, before the opening bell. A strong Reinsurance Solutions performance is expected in the quarter under review, along with increasing costs.
What Do the Estimates Say?
The Zacks Consensus Estimate for fourth-quarter earnings per share of $4.07 suggests a 4.6% increase from the prior-year figure of $3.89. The consensus mark remained stable over the past week. The consensus estimate for fourth-quarter revenues of $3.4 billion indicates a 7.1% increase from the year-ago reported figure.
AON beat the consensus estimate for earnings in two of the trailing four quarters and missed on the other two occasions, with the average surprise being 1.4%. This is depicted in the graph below:
Before we get into what to expect for the to-be-reported quarter in detail, it’s worth taking a look at AON’s previous-quarter performance first.
Q3 Earnings Rewind
In the last reported quarter, the leading global risk management services provider’s adjusted earnings per share of $2.32 beat the Zacks Consensus Estimate by 4%, primarily due to higher fiduciary investment income, strength in core property and casualty and strong segmental contributions. However, the upside was partly offset by an elevated operating expense level.
Now, let’s see how things have shaped up before the fourth-quarter earnings announcement.
Q4 Factors to Note
Commercial Risk Solutions’ performance in the fourth quarter is likely to have gained from new business growth, robust retention and skillful management of the renewal book portfolio. Strong growth in various geographical regions, including the Pacific and EMEA, is expected to have had a positive impact on their performance.
The Zacks Consensus Estimate for the Commercial Risk Solutions line’s revenues indicates 6.3% growth from $1.8 billion a year ago, whereas our model predicts a more than 5% increase. We expect the unit to witness 5% organic revenue growth in the quarter under discussion.
The consensus mark for the Health Solutions line’s fourth-quarter revenues suggests 8.3% growth from the year-ago level, while our projection anticipates an 8% increase. The segment's growth is likely to have been supported by an increase in core health and benefits brokerage. Additionally, the growing strength in Consumer Benefit Solutions and an enhanced data and advisory solutions suite are expected to have positively impacted the unit's results in the fourth quarter.
The Zacks Consensus Estimate for Reinsurance Solutions' revenues indicates growth of more than 11% compared with the $281 million from a year ago, while our model forecasts a 9% increase. It is expected to have witnessed growth in the to-be-reported quarter on the back of new business generation, strong retention and Strategy and Technology Group’s performance. Additionally, improvements in facultative placements are likely to have had a positive impact on the unit's performance.
The consensus estimate for fourth-quarter revenues in the Wealth Solutions segment suggests an almost 5% increase from the previous year, whereas our model foresees a 6% rise. The unit is likely to have been supported by heightened demand for advisory services, project-related activities and retirement growth during the quarter under review.
While the factors mentioned above are expected to contribute to the company's year-over-year growth, increased expenses from significant investments in priority areas for long-term growth, coupled with an uptick in certain discretionary and other costs, may have tempered the overall positive outlook. This is likely to have partially offset the upside, making an earnings beat uncertain.
Our model suggests the total operating costs in the fourth quarter to have increased nearly 5%, primarily attributed to increased expenses related to higher compensation and benefits. Specifically, the estimate for information technology expenses is set at more than $138 million, while compensation and benefits cost is pegged at more than $1.6 billion.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AON 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, as you will see below.
Earnings ESP: The company has an Earnings ESP of -3.54%. This is because the Most Accurate Estimate currently stands at $3.93 per share, lower than the Zacks Consensus Estimate of $4.07.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AON currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for AON, here are some companies from the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
CNO Financial Group, Inc. (CNO - Free Report) 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 Financial’s bottom line for the to-be-reported quarter suggests a 51.8% year-over-year jump to 85 cents per share. The estimate remained stable over the past week. The consensus mark for CNO’s revenues is pegged at $934.1 million.
Everest Group, Ltd. (EG - Free Report) has an Earnings ESP of +1.18% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Everest’s bottom line for the to-be-reported quarter indicates a 19.8% year-over-year increase. The estimate remained stable over the past week. Furthermore, EG beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 24.5%.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Arch Capital’s bottom line for the to-be-reported quarter is pegged at $1.94 per share, which increased by 4 cents in the past month. ACGL beat earnings estimates in all the past four quarters, with an average surprise of 35.2%.
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https://www.zacks.com/stock/news/2218190/can-higher-expenses-play-spoilsport-for-aons-q4-earnings?
| 2024-01-31T00:07:22Z
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Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Silicon Motion (SIMO - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this chip company a great growth pick right now.
Earnings Growth
Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Silicon Motion is 11.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 59.1% this year, crushing the industry average, which calls for EPS growth of 18.8%.
Impressive Asset Utilization Ratio
Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.
Right now, Silicon Motion has an S/TA ratio of 0.67, which means that the company gets $0.67 in sales for each dollar in assets. Comparing this to the industry average of 0.53, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Silicon Motion is well positioned from a sales growth perspective too. The company's sales are expected to grow 23.2% this year versus the industry average of 8.2%.
Promising Earnings Estimate Revisions
Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Silicon Motion have been revising upward. The Zacks Consensus Estimate for the current year has surged 3.3% over the past month.
Bottom Line
While the overall earnings estimate revisions have made Silicon Motion a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Silicon Motion is a potential outperformer and a solid choice for growth investors.
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https://www.zacks.com/stock/news/2218191/3-reasons-growth-investors-will-love-silicon-motion-simo
| 2024-01-31T00:07:29Z
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Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
K12 (LRN - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this online education company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings Growth
Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for K12 is 42.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 45.3% this year, crushing the industry average, which calls for EPS growth of 37.5%.
Cash Flow Growth
While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for K12 is 15.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of -35.4%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 18.3% over the past 3-5 years versus the industry average of 16.4%.
Promising Earnings Estimate Revisions
Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for K12. The Zacks Consensus Estimate for the current year has surged 7.8% over the past month.
Bottom Line
K12 has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions K12 well for outperformance, so growth investors may want to bet on it.
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https://www.zacks.com/stock/news/2218194/3-reasons-why-growth-investors-shouldnt-overlook-k12-lrn
| 2024-01-31T00:07:35Z
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Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Amphenol (APH - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this maker of fiber-optic products a great growth pick right now.
Earnings Growth
Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Amphenol is 14.4%, investors should actually focus on the projected growth. The company's EPS is expected to grow 8.1% this year, crushing the industry average, which calls for EPS growth of -39.5%.
Cash Flow Growth
While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Amphenol is 0.9%, which is higher than many of its peers. In fact, the rate compares to the industry average of -18.7%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 9% over the past 3-5 years versus the industry average of 3.5%.
Promising Earnings Estimate Revisions
Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Amphenol. The Zacks Consensus Estimate for the current year has surged 1.1% over the past month.
Bottom Line
While the overall earnings estimate revisions have made Amphenol a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Amphenol is a potential outperformer and a solid choice for growth investors.
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https://www.zacks.com/stock/news/2218195/3-reasons-why-growth-investors-shouldnt-overlook-amphenol-aph
| 2024-01-31T00:07:41Z
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Sally Beauty Holdings, Inc. (SBH - Free Report) is likely to register a decline in the top and the bottom line when it reports first-quarter fiscal 2024 earnings on Feb 1. The Zacks Consensus Estimate for net sales is pegged at $927.2 million, suggesting a drop of 3.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at 36 cents per share, indicating a decline of 30.8% from the figure reported in the prior-year quarter. The international specialty retailer and distributor of professional beauty supplies has a trailing four-quarter earnings surprise of 2.1%, on average.
Things To Note
Sally Beauty is operating amid a tough macroeconomic environment that continues to put pressure on consumer spending. Incidentally, the company has been witnessing soft customer traffic. This and inflationary pressures have been a concern. Also, the unfavorable impact owing to store closures from the Store Optimization Program has been hurting the company for a while.
For the first quarter of fiscal 2024, management expects a net sales decline of 2% to 4%, reflecting nearly 200 basis points headwinds from store closures. The company anticipates quarterly comparable sales of nearly flat to 2% decline.
That being said, Sally Beauty is on track with strategic initiatives like product innovation, expanded distribution and new concepts and services. Focus on the Fuel for Growth initiative is likely to have aided.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Sally Beauty 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.
Sally Beauty carries a Zacks Rank #2 and has an Earnings ESP of 0.00%.
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.
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +3.14% and sports a Zacks Rank #1. The Zacks Consensus Estimate for fourth-quarter fiscal 2023 earnings per share (EPS) is pegged at $2.71, sharply up from 81 cents registered in the year-ago period. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abercrombie & Fitch’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.43 billion, indicating an increase of 18.9% from the figure reported in the prior-year quarter. ANF has a trailing four-quarter earnings surprise of almost 713%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +0.41% and a Zacks Rank #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 EPS of $3.76 suggests a rise of 22.5% from the year-ago quarter.
Five Below’s top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $1.35 billion, indicating an increase of 19.9% from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 5.7%, 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 EPS of $7.48 suggests an increase of almost 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. ULTA has a trailing four-quarter earnings surprise of 5.8%, on average.
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https://www.zacks.com/stock/news/2218209/sally-beauty-sbh-q1-earnings-coming-up-factors-to-note
| 2024-01-31T00:07:48Z
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Brunswick Corporation (BC - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 1, 2024. In the last reported quarter, the company delivered an earnings surprise of 2.5%.
How are Estimates Placed?
The Zacks Consensus Estimate for Brunswick’s fourth-quarter earnings per share (EPS) is pegged at $1.66, indicating a decline of 16.6% from $1.99 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1.4 billion. The metric suggests a decline of 9.3% from the year-ago quarter’s figure.
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors to Note
Brunswick’s fourth-quarter performance is likely to have benefitted from strong high-horsepower outboard engine demand, new model introductions and marketing and promotional activities. This and strength in retailer stockings coupled with the positive reception of new product offerings are likely to have driven strong retail pull in the to-be-reported quarter.
The emphasis on the addition of Flite to its portfolio of brands (to tap into the emerging e-foiling market) and the rollout of Brunswick Finance (aimed at providing rapid customer finance approvals and supporting promotional financing) are likely to have aided the company’s performance in the fourth quarter.
However, lower order rates for Mercury engines and Navico Group OEM products (comprising of smaller, budget-friendly boats and lower horsepower engines) on account of production rate adjustments are likely to have affected the company’s top line in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter Engine Parts and Accessories sales is pegged at $239 million, indicating a fall of 49% from $467 million reported in the year-ago quarter. The consensus mark for Propulsion segment sales is pegged at $658 million compared with $670 million reported in the prior-year quarter.
Uncertain macroeconomic environment and consumer challenges on account of elevated prices, high interest rates, and limited credit availability are likely to have affected the company’s bottom line in the fourth quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Brunswick 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. But that's not the case here.
Earnings ESP: Brunswick 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 carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
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 5.9% 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 3.7% 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 13.1% 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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https://www.zacks.com/stock/news/2218210/brunswick-bc-to-post-q4-earnings-whats-in-the-cards?
| 2024-01-31T00:07:54Z
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Arcos Dorados Holdings, Inc. (ARCO - Free Report) released updates on its performance ahead of the scheduled quarterly earnings announcement in March 2024.
The company reported robust systemwide comparable sales growth in the fourth quarter of 2023 and for the full year ending Dec 31, 2023. ARCO also provided guidance for restaurant openings and total capital expenditures for 2024.
ARCO had a robust year-end, driven by its Three D’s Strategy of Digital, Delivery and Drive-thru. Digital channels contributed 53% to ARCO's systemwide sales in the fourth quarter. The company's mobile app transformed into an e-commerce platform, enhancing engagement with customers. This resulted in increased visit frequency and market share gains. The Loyalty Program also experienced growth, surpassing three million members by the end of 2023.
Systemwide Comparable Sales
During the fourth quarter of 2023, systemwide comparable sales increased 32.4% compared with 35.7% in the year-ago period. Total revenue also saw a substantial increase of 15.4% compared with the prior-year quarter.
Brazil’s systemwide comparable sales rose 6.2% year-over-year compared with a rise of 21.9% a year ago. Despite facing a challenging comparison in October, Brazil's sales rebounded strongly in November and December, achieving double-digit comparable sales growth.
North Latin American Division or NOLAD's systemwide comparable sales grew 5.4% year-over-year compared with a rise of 19.6% reported in the prior-year quarter. Mexico and the French West Indies contributed strongly to the quarter’s sales growth. This was partially offset by the impact of social unrest in Panama during the quarter.
Systemwide comparable sales at the South Latin American Division (SLAD) saw a significant 94.7% year-over-year increase compared with a surge of 75.3% a year ago. Digital sales, in constant currency, rose by almost 65%, including a notable 50% increase in Delivery sales for the quarter. Identifiable sales contributed 21% to total sales during the quarter.
Restaurants Opening
In 2023, the company opened 81 Experience of the Future (EOTF) restaurants, including 72 free-standing units. Notably, 50 of these openings were in Brazil and an even number of openings between NOLAD and SLAD.
For 2024, the company anticipates opening 80 to 90 EOTF restaurants, with about 90% being free-standing units.
Capital Expenditures
In 2023, the company's total capital expenditures aligned with the guidance of $350 million. This figure includes all openings, modernizations, optimizations, and maintenance in the restaurant portfolio, along with investments in the Digital platform and back-office systems.
The company expects total capital expenditures in the range of $300-$350 million for 2024. It plans to fund these expenditures with available cash and cash generated from operations.
Price Performance
Image Source: Zacks Investment Research
Arcos Dorados’ shares have surged 49.9% in the past year compared with the
Zacks Retail - Restaurants industry’s growth of 1.6%. The company has been benefiting from strong comparable sales growth across its systems, robust digital sales and new restaurant openings.
Zacks Rank & Key Picks
Arcos Dorados currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Retail-Wholesale sector are:
Abercrombie & Fitch Co. (ANF - Free Report) currently flaunts a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 713%, on average. Shares of ANF have surged 262.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s 2024 sales and earnings per share (EPS) suggests increases of 15.1% and 2,320%, respectively, from the year-ago period’s levels.
Fastenal Company (FAST - Free Report) sports a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 2.6%, on average. Shares of FAST have surged 35.7% in the past year.
The Zacks Consensus Estimate for FAST’s 2024 sales and EPS indicates 10.6% and 15.5% growth, respectively, from the year-ago period’s levels.
Chipotle Mexican Grill, Inc. (CMG - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 5.8%, on average. The stock has rallied 46% in the past year.
The Zacks Consensus Estimate for CMG’s 2024 sales and EPS suggests a rise of 13.2% and 19.6%, respectively, from the year-ago period’s levels.
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Abercrombie & Fitch Company (ANF) - free report >>
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https://www.zacks.com/stock/news/2218211/arcos-dorados-arco-unveils-strong-q4-comps-and-24-view
| 2024-01-31T00:08:00Z
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On Semiconductor (ON - Free Report) is slated to release its fourth-quarter 2023 results on Feb 5.
For fourth-quarter 2023, onsemi expects revenues between $1.95 billion and $2.05 billion. Earnings are expected in the range of $1.13-$1.27 per share.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.21 per share, unchanged in the past 30 days. The metric indicates a decline of 8.33% from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $2 billion, suggesting a decline of 4.83% from the year-ago quarter’s reported figure.
onsemi’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.73%.
Let us see how things are shaping up prior to this announcement.
Factors Likely to Have Influenced Q4 Performance
onsemi’s fourth-quarter performance is likely to have benefited from the increased adoption of its products in automotive and industrial end markets, particularly in areas such as electric vehicles (EVs), advanced driver-assistance systems (ADAS) and energy infrastructure.
The momentum in the silicon carbide segment, owing to its strong market position, is anticipated to have driven onsemi's top line in the to-be-reported quarter.
onsemi's strength across EliteSIC modules, which increase efficiency and lower the weight of the traction inverters to expand electric vehicle range, is likely to have driven its fourth-quarter top line.
In the to-be-reported quarter, onsemi expects substantial top-line growth driven by the innovative Hyperlux Family sensors for automotive and industrial applications, featuring low power consumption and 8-megapixel resolution.
However, ON Semiconductor's fourth-quarter top line is expected to have been affected by softness in European automotive demand and reduced silicon carbide shipments due to lower demand.
What Our Model Indicates
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 is not the case here.
onsemi has an Earnings ESP of -0.46% 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 25.9% 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 13% 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 36.2% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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ON Semiconductor Corporation (ON) - free report >>
Twilio Inc. (TWLO) - free report >>
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https://www.zacks.com/stock/news/2218212/onsemi-on-to-report-q4-earnings-whats-in-the-cards?
| 2024-01-31T00:08:07Z
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Nucor Corporation (NUE - Free Report) reported earnings of $3.16 per share in fourth-quarter 2023, down from earnings of $4.89 in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of $2.83.
The company recorded net sales of $7,704.5 million, down around 11.7% year over year. The figure topped the Zacks Consensus Estimate of $7,563.8 million.
Earnings declined in the fourth quarter primarily due to lower prices.
Operating Figures
Total sales tons to outside customers for steel mills in the fourth quarter were 5,513,000 tons, up 8% year over year. The figure beat our estimate of 4,525,000 tons.
The average sales price for steel mills was $1,015 per ton, down 15% year over year and around 8% sequentially and 15%. The metric is ahead of our estimate of $995 per ton.
Overall operating rates at the company’s steel mills fell to 74% in the fourth quarter of 2023 compared with 77% in the third quarter of 2023. It also compares to 70% in the fourth quarter of 2022.
Segment Highlights
Earnings of the company’s steel mills unit fell 33% sequentially in the reported quarter on lower pricing.
Earnings in the steel products division were lower by 19% sequentially in the fourth quarter due to reduced prices and a decline in shipments.
The raw materials segment’s earnings were down 120% sequentially on lower pricing and outages at DRI facilities.
Financial Position
Cash and cash equivalents were $6,383.3 million at the end of the quarter, up 49% year over year. The long-term debt was $6,648.9 million, flat year over year.
The company repurchased around 1 million shares of its common stock at an average price of $177.18 per share during the quarter.
FY23 Results
In 2023, Nucor reported net earnings of $4.52 billion or $18 per share. This contrasts with $7.61 billion in net earnings, translating to $28.79 per share in 2022.
Regarding net sales, Nucor recorded $34.71 billion for the full year 2023, down 16% from $41.51 billion reported in 2022. Total tons shipped to external customers in 2023 amounted to approximately 25,205,000 tons, down 1% from 2022 levels. The average sales price per ton in 2023 recorded a 15% fall from 2022 levels.
Outlook
Nucor anticipates a rise in earnings for the first quarter of 2024 compared with fourth-quarter 2023 figure. This upside can be attributed to an expected increase in earnings in the steel mills segment, driven by increased average selling prices and volumes, notably in sheet mills.
Earnings in the steel products segment are forecast to decline during the same period due to reduced average selling prices. However, Nucor expects a sequential rise in earnings within the raw materials segment for the first quarter of 2024, primarily stemming from improved profitability in DRI facilities alongside enhanced performance in scrap processing and brokerage operations.
Price Performance
Shares of Nucor have moved up 4.5% in a year compared with the industry’s 5.3% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
Some better-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 68.1% 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 34.6% 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 43.3% in the past year.
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The Andersons, Inc. (ANDE) - free report >>
Nucor Corporation (NUE) - free report >>
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https://www.zacks.com/stock/news/2218216/nucors-nue-earnings-and-revenues-top-estimates-in-q4
| 2024-01-31T00:08:18Z
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Charles River International Laboratories, Inc. (CRL - Free Report) recently launched Endosafe Trillium rCR cartridges, which combine its hallmark Endosafe cartridge technology with recombinant cascade reagent (rCR). The latest launch expanded the company’s robust bacterial endotoxin testing (BET) portfolio with a new animal-free testing solution.
The recent development will bolster the Charles River Microbial Solutions business.
More on the Launch
The latest launch, which expands Charles River's existing Trillium rCR vial product, improves testing efficiency and accelerates manufacturing timelines while also contributing to the 4Rs imperatives (Replacement, Reduction, Refinement and Responsibility) and furthering its clients' goals for sustainability and animal welfare.
Designed to provide speedy, quantifiable findings, the rCR cartridges are pre-loaded with all of the reagents needed to perform an endotoxin test, avoiding the need to prepare numerous reagents and lowering the possibility of technician error. The product is fully aligned and integrated with Charles River's existing Endosafe cartridge instrumentation and software, allowing current limulus amebocyte lysate (LAL) cartridge users to convert smoothly.
Charles River continues to use the highest scientific standards when introducing new and innovative items into its BET line. The Trillium cartridge was designed using a data-driven decision-making method to produce the highest quality results among recombinant technologies while also ensuring patient safety.
Significance of the Launch
Charles River's Endosafe Trillium cartridge transforms endotoxin testing and strengthens the industry's commitment to sustainability. The company is delighted to deliver a new animal-free option to customers that uses breakthrough technology while continuing to offer its LAL-based services for clients whose business necessitates them.
Image Source: Zacks Investment Research
With its first-ever animal-free cartridge, Charles River is proud to meet its clients' diverse BET needs. The Trillium cartridge, together with the company’s LAL-based cartridges, which use 95% less horseshoe crab raw material than a standard bacterial endotoxin test, expands Charles River’s portfolio to provide its clients with robust animal-free and animal-reduced options.
Industry Prospects
Going by ReportsandData, the Endotoxin Testing market is expected to reach $1,843.4 million by 2028, recording a CAGR of 11.5% and rising from $767.1 million in 2020. The factors impacting the market growth include booming demand for novel therapeutic Medical Devices and drugs due to increasing health standards and demand for disease-specific drugs.
Notable Developments
In January 2024, Charles River announced the launch of its off-the-shelf Rep/Cap plasmid offering. Per the company, it has been designed to streamline adeno-associated virus (AAV)-based gene therapy programs.
In December 2023, Charles River achieved an important milestone in its strategic collaboration with Vertex Pharmaceuticals to manufacture CASGEVY (exagamglogene autotemcel [exa-cel]). The company’s Memphis facility was approved to manufacture Vertex’s CASGEVY — the first-ever gene-edited therapy in the world that targets severe sickle cell disease.
The same month, Charles River entered into an agreement with German biotech company CELLphenomics. Through the partnership, Charles River clients will have access to CELLphenomics’ proprietary 3D tumor model platform, PD3D, expanding Charles River’s 3D in vitro testing services to optimize oncological approaches for its clients.
Price Performance
In the past year, CRL has dropped 7.7% compared with the industry’s fall of 5.2%.
Zacks Rank and Key Picks
Charles River 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 inched up 6.5% in the past year compared with the industry’s 11.8% rise.
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 54.8% in the past year against the industry’s 3.5% 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 7.5% in the past six months compared with the industry’s rise of 5.5%.
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Universal Health Services, Inc. (UHS) - free report >>
Charles River Laboratories International, Inc. (CRL) - free report >>
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https://www.zacks.com/stock/news/2218218/charles-river-crl-launches-animal-free-endotoxin-test
| 2024-01-31T00:08:24Z
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