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Anavex Life Sciences (AVXL - Free Report) closed the last trading session at $6.29, gaining 4.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $39.67 indicates a 530.7% upside potential.
The mean estimate comprises three short-term price targets with a standard deviation of $0.58. While the lowest estimate of $39 indicates a 520% increase from the current price level, the most optimistic analyst expects the stock to surge 535.9% to reach $40. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in AVXL. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in AVXL
There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 7.1%, as one estimate has moved higher compared to no negative revision.
Moreover, AVXL currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much AVXL could gain, the direction of price movement it implies does appear to be a good guide.
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https://www.zacks.com/stock/news/2218766/wall-street-analysts-believe-anavex-life-sciences-avxl-could-rally-53068-heres-is-how-to-trade
| 2024-01-31T16:59:28Z
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Shares of Keros Therapeutics, Inc. (KROS - Free Report) have gained 30.6% over the past four weeks to close the last trading session at $56.34, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $81.89 indicates a potential upside of 45.4%.
The mean estimate comprises nine short-term price targets with a standard deviation of $17.41. While the lowest estimate of $60 indicates a 6.5% increase from the current price level, the most optimistic analyst expects the stock to surge 86.4% to reach $105. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in KROS. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You May Not Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in KROS
There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 2.3%, as one estimate has moved higher compared to no negative revision.
Moreover, KROS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much KROS could gain, the direction of price movement it implies does appear to be a good guide.
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https://www.zacks.com/stock/news/2218767/wall-street-analysts-predict-a-4535-upside-in-keros-therapeutics-inc-kros-heres-what-you-should-know
| 2024-01-31T16:59:36Z
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FRANKFURT, Germany - Pop superstar Adele on Jan 31 announced four open-air concerts in Munich in August, her first shows in mainland Europe since 2016.
The British singer will perform at a specially-created, 80,000-capacity venue in the southern German city on Aug 2, 3, 9 and 10.
The 35-year-old said she had been on the last stage of her Las Vegas residency – “Weekends with Adele”, which runs until June – when she was approached about the Munich shows.
“A one off, bespoke pop-up stadium designed around whatever show I want to put on? Pretty much slap bang in the middle of Europe? In Munich?“ she wrote in an Instagram post.
“That’s a bit random, but still fabulous!”
The concerts will come right after Euro 2024, which Germany is hosting, and “with the Olympics next door”, said the singer, known for hits including Easy On Me and Someone Like You.
Paris is hosting the Olympics in July and August.
“I couldn’t think of a more wonderful way to spend my summer and end this beautiful phase of my life and career with shows closer to home during such an exciting summer,” she said.
“Guten Tag babes x”. AFP
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https://www.straitstimes.com/life/entertainment/guten-tag-babes-adele-announces-munich-concerts
| 2024-01-31T16:59:37Z
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JetBlue Airways (JBLU - Free Report) fourth-quarter 2023 loss (excluding 12 cents from non-recurring items) of 19 cents per share was narrower than the Zacks Consensus Estimate of a loss of 28 cents. In the year-ago quarter, JBLU reported earnings of 22 cents.
Operating revenues of $2.32 billion edged past the Zacks Consensus Estimate of $2.29 billion. However, the top line decreased 3.73% year over year.
Passenger revenues, accounting for the bulk of the top line (93.2%), declined to $2.17 billion from $2.27 billion a year ago. Passenger revenues were hurt due to air-traffic-control issues in the Northeast. The metric was just ahead of our projection of $2.13 billion. Other revenues rose 7.7% to $159 million, just short of our estimate of $159.9 million.
Other Q4 Details
All comparisons are presented on a year-over-year basis unless mentioned otherwise.
Revenue per available seat mile (RASM: a key measure of unit revenues) declined 6.8% to 13.67 cents. Passenger revenue per available seat mile fell 7.5% to 12.73 cents. Average fare at JetBlue decreased 12.3% to $201.73. Yield per passenger mile dipped 2%.
Consolidated traffic (measured in revenue passenger miles) declined 0.5%. Capacity (measured in available seat miles) increased 3.3%. Consolidated load factor (percentage of seats filled by passengers) contracted 310 basis points to 80.1% as traffic decreased while capacity improved. The actual value of the load factor was a tad less than our projection of 80.2%.
Total operating costs (on a reported basis) edged up 0.9% to $2.39 billion, mainly due to a 9% gain in expenses on salaries, wages and benefits. The average fuel price per gallon (including related taxes) was $3.08, up 4.8% sequentially, highlighting a rise in oil price. JBLU’s operating expenses per available seat mile (CASM) fell 2.4% year over year. Excluding fuel, CASM increased 7.6% to 9.82 cents.
JetBlue, currently carrying a Zacks Rank #3 (Hold), exited the quarter with cash and cash equivalents of $1.16 billion compared with $1.04 billion at the end of 2022. Total debt at the end of the December quarter was $4.72 billion compared with $3.65 billion at 2022-end. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In line with its cost-cutting efforts, JBLU reached agreements to defer $2.5 billion in planned aircraft spending to 2028 and later from original plans of incurring these expenses in the 2024-2027 time frame.
Bleak Outlook
While providing guidance for first-quarter 2024, management stated that all comparisons are made with respect to first-quarter 2023 figures.
Capacity is anticipated to decline in the 3-6% band. CASM, excluding fuel and special items, is predicted to climb 9-11%. Capital expenditures are expected to be roughly $250 million. Total revenues are forecast to tumble in the range of 5-9%. Average fuel cost per gallon is estimated to be between $2.87 and $3.02.
For full-year 2024, capacity is envisioned to be down in low single digits (percentage wise) from 2023 actuals. CASM, excluding fuel and special items, is predicted in the mid-to-high single-digit range (percentage-wise) from 2023 figures.
Total revenues for 2024 are anticipated to be flat from 2023 levels. Capital expenditures are expected to be roughly $1.6 billion in the current year. Management expects current-year earnings to approach breakeven. The Zacks Consensus Estimate is currently pegged at a loss of 54 cents.
Q4 Performances of Some Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.5% on a year-over-year basis due to high labor costs.
Revenues of $14.22 billion surpassed the Zacks Consensus Estimate of $14.07 billion and increased 5.9% 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 (UAL - Free Report) reported fourth-quarter 2023 earnings per share (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 $13.6 billion beat the Zacks Consensus Estimate of $13.5 billion. The top line increased 9.9% year over year due to upbeat air-travel demand. Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% year over year to $803 million.
J.B. Hunt Transport Services (JBHT - Free Report) fourth-quarter 2023 earnings per share of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
Total operating revenues of $3.3 billion surpassed the Zacks Consensus Estimate of $3.2 billion but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.
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https://www.zacks.com/stock/news/2218768/jetblues-jblu-q4-loss-narrower-than-expected-q1-view-weak
| 2024-01-31T16:59:42Z
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A22 Sports Management, formed to assist with creating the European Super League, made public on Wednesday a letter they sent to UEFA asking for the immediate cessation of anti-competitive behaviour.
The decision to publish the letter on social media platform X came after A22 say UEFA president Aleksander Ceferin "publicly talked about and miss-characterized a letter in which we demand UEFA to comply with EU rules and Court rulings and stop ongoing actions aimed to obstruct A22 activities".
Ceferin was speaking at the Spobis sport business congress in Hamburg on Wednesday.
In the letter, sent on Tuesday, A22 accuse UEFA of anticompetitive behaviour since April 2021, including denigration of their reputation and threatening European clubs to prevent them from considering projects involving A22.
In December, the European Court of Justice ruled that UEFA and FIFA contravened EU law by preventing the formation of a Super League, but A22 say UEFA have continued its anticompetitive behaviour.
"Consequently, we hereby demand that UEFA and its executives, with immediate effect, a) cease and desist from any form of anticompetitive action against A22, its business initiatives, its partners and directors," the letter said.
They also instructed third parties affiliated to UEFA to do the same. REUTERS
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https://www.straitstimes.com/sport/football/super-league-send-cease-and-desist-letter-to-uefa-over-anti-competitive-behaviour
| 2024-01-31T16:59:47Z
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The world's largest software maker — Microsoft (MSFT - Free Report) — reported strong second-quarter fiscal 2024 results, beating earnings and revenue estimates. The company posted the highest profit growth in more than two years and the strongest revenue growth since 2022 (see: all the Technology ETFs here).
Despite the robust results, shares of MSFT dipped 1% in after-market hours. Investors could tap the dip in this software leader through ETFs having double-digit exposure to Microsoft. These are Select Sector SPDR Technology ETF (XLK - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , iShares Global Tech ETF (IXN - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) and iShares Dow Jones US Technology ETF (IYW - Free Report) .
Earnings in Focus
Earnings per share came in at $2.93, beating the Zacks Consensus Estimate of $2.76 and were higher than $2.32 reported in the year-ago quarter. Revenues grew 18% year over year to $62 billion, edging past the consensus estimate of $61.03 billion. This marks the strongest revenue growth since 2022, driven by higher demand for its cloud computing services amid growing enthusiasm about artificial intelligence.
Intelligent Cloud revenues jumped 20% year over year. Sales of Office 365 Commercial and Dynamic 365 climbed 17% and 27%, respectively. Sales of the flagship Azure computing platform grew 30% year over year. Microsoft now has 53,000 Azure AI customers and one-third of them were new to Azure in the past year, CEO Satya Nadella said on the call.
The world’s largest software maker is optimistic about the long-term prospects of its Azure business. Azure has become Microsoft’s key growth engine in recent years and has helped revive the company’s brand among developers, according to CNBC (read: Microsoft Tops Apple Ahead of Q4 Earnings: 5 ETFs to Invest).
Microsoft expects revenues of $60-$61 billion for fiscal third-quarter 2024. The Zacks Consensus Estimate is pegged at $60.56 billion. Demand for generative AI will continue to fuel Microsoft's cloud business.
ETFs in Focus
Select Sector SPDR Technology ETF (XLK - Free Report)
Select Sector SPDR Technology ETF is the most popular and liquid ETF in the technology space, with AUM of $61.8 billion and an average daily volume of 7 million shares. It offers broad exposure to the technology sector and follows the Technology Select Sector Index. Select Sector SPDR Technology ETF holds about 64 securities in its basket, with Microsoft occupying the top position at 23%.
Select Sector SPDR Technology ETF charges 10 bps in fees per year from investors and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 5 Technology ETFs to Buy on a Rebound in PC Sales).
MSCI Information Technology Index ETF (FTEC - Free Report)
MSCI Information Technology Index ETF is home to 303 technology stocks with AUM of $8.7 billion. It follows the MSCI USA IMI Information Technology Index. Microsoft is the second firm with a 20.6% allocation.
MSCI Information Technology Index ETF has a 0.08% expense ratio, while volume is solid at 245,000 shares a day. It carries a Zacks ETF Rank #1 with a Medium risk outlook.
iShares Global Tech ETF (IXN - Free Report)
iShares Global Tech ETF provides exposure to electronics, computer software and hardware, and informational technology companies by tracking the S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index. Holding 115 stocks in its basket, Microsoft occupies the top spot with a 20.5% share.
iShares Global Tech ETF has amassed $4.6 billion in its asset base and trades in a good volume of 309,000 shares a day, on average. The expense ratio is 0.41%.
Vanguard Information Technology ETF (VGT - Free Report)
Vanguard Information Technology ETF manages about $63 billion in its asset base and provides exposure to 312 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, MSFT occupies the second position with a 19.7% share (read: Tech Leads S&P 500 to Highs: Does Further Rally Await ETFs?).
Vanguard Information Technology ETF has a 0.10% expense ratio, while volume is solid at nearly 494,000 shares. It has a Zacks ETF Rank #1 with a Medium risk outlook.
iShares U.S. Technology ETF (IYW - Free Report)
iShares U.S. Technology ETF provides exposure to U.S. electronics, computer software and hardware, and informational technology companies. It tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, holding 133 securities in its basket. Of these, Microsoft occupies the top position in the basket, with 17.1% of the assets.
iShares Dow Jones US Technology ETF has AUM of $14.9 billion and charges 40 bps in fees and expenses. Volume is good as it exchanges nearly 668,000 shares a day. IYW has a Zacks ETF Rank #1 with a Medium risk outlook.
See More Zacks Research for These Tickers
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Microsoft Corporation (MSFT) - free report >>
Technology Select Sector SPDR ETF (XLK) - free report >>
Fidelity MSCI Information Technology Index ETF (FTEC) - free report >>
iShares U.S. Technology ETF (IYW) - free report >>
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https://www.zacks.com/stock/news/2218770/ai-drives-microsofts-q2-earnings-top-etf-picks
| 2024-01-31T16:59:49Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when Steris (STE - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 medical products maker is expected to post quarterly earnings of $2.16 per share in its upcoming report, which represents a year-over-year change of +6.9%.
Revenues are expected to be $1.34 billion, up 10.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.14% 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 Steris?
For Steris, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.15%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Steris 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 Steris would post earnings of $2.05 per share when it actually produced earnings of $2.03, delivering a surprise of -0.98%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Steris doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Among the stocks in the Zacks Medical - Instruments industry, Idexx Laboratories (IDXX - Free Report) is soon expected to post earnings of $2.12 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +3.4%. This quarter's revenue is expected to be $890.61 million, up 7.5% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Idexx has been revised 0.8% down to the current level. Nevertheless, the company now has an Earnings ESP of 1.10%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Idexx will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218775/steris-ste-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-31T16:59:55Z
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ADDIS ABABA - At least 372 people have died in two northern Ethiopian regions from drought-induced hunger in the last six months, a senior government official said on Wednesday, adding to the regions' challenges arising from conflict.
Endale Haile, head of the Ethiopian Institution of the Ombudsman, which receives complaints from the public against government departments, said its investigations found that 351 people had died in the Tigray region, while another 21 had died in neighbouring Amhara.
Endale said the findings were from a 10-day assessment in the two regions, and it was possible there were more deaths.
"If we expand our sample the death figure may increase. But our main purpose is for the government to give the issue an attention and inform them how the issue is getting serious. So that they will take actions," he told Reuters.
Legesse Tulu, government spokesperson, Mengasha Fentaw, spokesperson of Amhara region and Redaei Halefom, spokesperson of Tigray, did not immediately respond to requests for comment on the deaths.
Ethiopia's food crisis has deepened in recent years as a result of war in the Tigray region and the Horn of Africa's worst drought in decades, with the United Nations World Food Programme (WFP) saying just over 20 million people are in need of assistance.
Thereafter, on and off fighting in Amhara, which has also experienced prolonged drought, between Amhara state forces and local militiamen became Ethiopia's biggest security crisis since the end of a two-year civil war in Tigray in 2022.
In late December, Getachew Reda, the president of Tigray region's interim administration, said 91% of the region's population was at risk of starvation and death and the situation was beyond the administration's capacity to handle.
At the time, government spokesperson Legesse rejected the report saying it lacked factual correctness.
Last May, the WFP suspended food aid to Tigray following reports of widespread theft of donations. It then suspended aid to all of Ethiopia in June, following the same action from the United States.
WFP resumed limited distribution in August, while the U.S. resumed in December. REUTERS
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https://www.straitstimes.com/world/ethiopian-official-at-least-372-deaths-due-to-hunger-in-two-regions-in-last-six-months
| 2024-01-31T16:59:58Z
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OTTAWA - Canadian Industry Minister François-Philippe Champagne played down Britain's suspension of trade talks with the country last week as he signed agreements with the UK to enhance cooperation on innovation, science and artificial intelligence (AI).
Champagne and Britain's Technology Secretary Michelle Donelan late on Tuesday signed two agreements in Ottawa to collaborate on creating processing and information handling technologies needed to develop AI-linked tools.
Britain suspended talks on a free trade deal with Canada last week, saying the pair could not find a common ground for access to agricultural markets.
"When it comes to how we are going to approach trade, I think that you have proof today... there may be a slight pause there, (but) we're doubling down in our key relationship," Champagne told Reuters in an interview after the agreements were signed.
"We have been trading for two centuries, so I have all confidence that we will overcome that," Champagne added, although he did not say when he thought talks could resume.
Donelan, speaking in the same interview, said the country is looking to deepen its relationship with Canada.
The signing of the two agreements "highlights the importance of our strategic relationship and the ability of us to work together to maximize potential," she said, also without indicating when talks might resume.
Total bilateral trade in goods and services between the two countries was 25.9 billion pounds ($32.9 billion) in the year ending June 30, 2023, with Canada the UK's 18th biggest trading partner. Britain accounts for 2.7% of Canada's total bilateral trade. REUTERS
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https://www.straitstimes.com/world/europe/canada-will-overcome-slight-pause-in-trade-talks-with-britain-minister-says
| 2024-01-31T17:00:08Z
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The market expects Central Garden (CENT - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 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 maker of products for the pet supply and lawn and garden markets is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -12.5%.
Revenues are expected to be $620.11 million, down 1.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.3% 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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Central Garden?
For Central Garden, 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 +6.85%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Central Garden 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 Central Garden would post earnings of $0.08 per share when it actually produced earnings of $0.10, delivering a surprise of +25%.
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.
Central Garden 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/2218776/earnings-preview-central-garden-cent-q1-earnings-expected-to-decline
| 2024-01-31T17:00:01Z
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Allstate (ALL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This insurer is expected to post quarterly earnings of $3.87 per share in its upcoming report, which represents a year-over-year change of +384.6%.
Revenues are expected to be $15.05 billion, up 11.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 2.12% 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 Allstate?
For Allstate, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Allstate will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Allstate would post earnings of $0.39 per share when it actually produced earnings of $0.81, delivering a surprise of +107.69%.
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.
Allstate doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Insurance - Property and Casualty industry, American Financial Group (AFG - Free Report) , is soon expected to post earnings of $2.81 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of -6%. Revenues for the quarter are expected to be $1.87 billion, down 1.8% from the year-ago quarter.
The consensus EPS estimate for American Financial has been revised 0.8% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.14%.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that American Financial will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218777/allstate-all-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:00:18Z
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BERLIN - Hans-Georg Maassen, who until five years ago was responsible for protecting Germany against violent and extremist threats to its democracy, is himself now being monitored by the security agency he ran, the bureaucrat-turned-politician said.
Maassen was dismissed as head of Germany's Office for the Protection of the Constitution (BfV) in 2018 after appearing to play down the threat of violence by right-wing extremists who at the time were rioting in an eastern German city.
Since, the lawyer has become known for his increasingly radical commentary on the supposed threat immigration poses to Germany, becoming a hero to far-right activists including some in the circles surrounding Heinrich XIII Prince Reuss, the aristocrat who led a foiled coup attempt in 2022.
"Germany is clearly afraid of me," he said on X, adding the country was using the internal security agency to monitor him and the party he has founded.
Asked about surveillance of Maassen, the BfV said privacy law meant it could not comment on individual cases. But Maassen published on his website a letter from the BfV, sent in response to a Freedom of Information request by his lawyer, confirming that he featured extensively in their databases tracking extremists.
Maassen did not immediately respond to Reuters' request for comment. Tichys Einblick, a blog that supports him, quoted him as saying: "The allegations are without substance and unjustified."
Last month, Maassen announced he was setting up a party, one of several new launches aiming to capture voters who polls say are increasingly disenchanted with Germany's dominant parties of the centre left and right.
Maassen's post-BfV career as a far-right icon has been a growing embarrassment to Germany's security services as they contend with a burgeoning far-right scene that is profiting from a lacklustre economy and stretched public services.
As BfV chief, he was in effect Germany's chief hunter of neo-Nazis. The documents released to him by the BfV show him being repeatedly praised by far-right figures.
"The right-wing extremist Bernhard Schraub, in a letter to Heinrich XIII Prince Reuss, described your client as an 'upstanding republican'," the BfV's first example reads. Only unclassified material features in freedom of information releases. REUTERS
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https://www.straitstimes.com/world/europe/germanys-former-top-neo-nazi-hunter-now-being-monitored-as-extremist
| 2024-01-31T17:00:19Z
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Wall Street expects a year-over-year decline in earnings on higher revenues when Coty (COTY - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 beauty products company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -9.1%.
Revenues are expected to be $1.67 billion, up 9.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 2.12% 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 Coty?
For Coty, 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 +9.65%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Coty will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Coty would post earnings of $0.17 per share when it actually produced earnings of $0.09, delivering a surprise of -47.06%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Coty appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Among the stocks in the Zacks Cosmetics industry, e.l.f. Beauty (ELF - Free Report) is soon expected to post earnings of $0.57 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +18.8%. This quarter's revenue is expected to be $237.05 million, up 61.8% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for e.l.f. Beauty has been revised 6.9% up to the current level. Nevertheless, the company now has an Earnings ESP of -0.89%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that e.l.f. Beauty will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218778/coty-coty-expected-to-beat-earnings-estimates-should-you-buy?
| 2024-01-31T17:00:24Z
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MADRID/BARCELONA - Discord between Spain's ruling Socialists and Catalan separatists over a controversial amnesty bill will not derail the government's budget plans, the budget minister said on Wednesday, amid fears of paralysis if a deal cannot be reached.
Hardline separatist party Junts on Tuesday blindsided the government by voting against the bill it had sought from the Socialists (PSOE) in return for backing them following inconclusive elections last July.
"We have to let things calm down," minister Maria Jesus Montero said in an interview on RTVE. "We are confident about reaching agreements with them, such as on the budget."
Junts said it would retract its support if the government failed to expand the scope of the bill.
"What we agreed with the PSOE was to resolve a political conflict and the foundation was an amnesty law," Junts' secretary general Jordi Turull told Catalan radio station RAC 1. "If that foundation breaks, then there is no need anymore to get to the rest of the issues."
The amnesty would cover people involved in Catalonia's failed independence bid that came to a head in 2017, including separatists but also police involved in clashes with activists.
The Socialists and Junts now have as much as a month to negotiate further but Tuesday's vote shows the fine line Prime Minister Pedro Sanchez must walk between making concessions to ensure the survival of his government and enraging a public already angry at his pact with the protagonists of Spain's most serious political crisis in the past three decades.
Judges have already warned the bill could imperil the rule of law and Spain's main business chamber said it risks the country's image abroad, while legal action threatened by the opposition conservative People's Party means the government must ensure its legislation can withstand such challenges.
'TSUNAMI DEMOCRATIC'
The PSOE and the separatists agreed last week to tweak definitions of what can be considered a terrorist act, but Junts now wants all references to terrorism removed since some of its politicians are under investigation over such crimes.
Judge Manuel Garcia-Castellon is weighing terrorism charges against pro-independence protest group Tsunami Democratic over a 2019 raid on Barcelona airport that could implicate Junts leader Carles Puigdemont.
Rejecting the bill strengthens Junts' hand, giving them more time to push further concessions, said Pablo Simon, a political science professor at Madrid's Carlos III University.
A Junts source said it would again vote down the bill if it did not protect key figures, but also rejected teaming up with the opposition in a confidence vote against Sanchez.
"We think they will budge and we will too. For us this is the red line in the legislature. If there's no amnesty, the pact no longer make sense," the source said. REUTERS
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https://www.straitstimes.com/world/europe/rift-with-catalan-separatists-will-not-threaten-budget-plans-madrid-says
| 2024-01-31T17:00:29Z
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Ceridian HCM (CDAY - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 7, 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 provider of human-resources software and services is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +39.1%.
Revenues are expected to be $400.13 million, up 19.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.22% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Ceridian?
For Ceridian, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.13%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Ceridian will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Ceridian would post earnings of $0.29 per share when it actually produced earnings of $0.37, delivering a surprise of +27.59%.
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.
Ceridian appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Fortinet (FTNT - Free Report) , another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $0.43 for the quarter ended December 2023. This estimate points to a year-over-year change of -2.3%. Revenues for the quarter are expected to be $1.41 billion, up 9.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Fortinet has been revised 2.3% down to the current level. Nevertheless, the company now has an Earnings ESP of 3.79%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Fortinet will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218779/ceridian-hcm-cday-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-31T17:00:30Z
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WASHINGTON - The United States imposed sanctions on three entities and one individual based in Turkey and Lebanon on Wednesday for giving "critical financial support" to a financial network used by Iran's Quds Force (IRGC-QF) and Lebanon's Hezbollah.
"These entities have generated hundreds of millions of dollars' worth of revenue from selling Iranian commodities, including to the Syrian government," the U.S. Treasury Department said in a statement.
"These commodity sales provide a key source of funding for the IRGC-QF and Hezbollah's continued terrorist activities and support to other terrorist organizations throughout the region," it added.
The Treasury Department said it had imposed sanctions on Turkey-based Mira Ihracat Ithalat Petrol, which purchases, transports, and sells Iranian commodities on the global market, and its chief executive and owner Ibrahim Talal al-Uwayr, who is also known under the alias Ibrahim Agaoglu.
It also targeted two Lebanon-based entities, Yara Offshore SAL, a company affiliated with Hezbollah which has facilitated large sales of Iranian commodities to Syria, and Hydro Company for Drilling Equipment Rental, which is involved in financing the IRGC-QF by facilitating the shipment of Iranian commodities worth hundreds of millions of dollars to Syria.
As a result of the sanctions, all property of those targeted in the United States or that fall under the control of U.S. persons is blocked.
U.S. regulations generally bar U.S. persons from dealing with property of designated or otherwise blocked persons. Further, non-U.S. financial institutions and others that engage in certain dealings with those sanctioned may expose themselves to sanctions or be subject to an enforcement action. REUTERS
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https://www.straitstimes.com/world/europe/us-targets-iranian-hezbollah-financial-network-with-sanctions
| 2024-01-31T17:00:40Z
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The market expects Annaly Capital Management (NLY - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This real estate investment trust is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of -28.1%.
Revenues are expected to be $296 million, up 119.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 3.79% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Annaly?
For Annaly, 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 -4.19%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Annaly will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Annaly would post earnings of $0.65 per share when it actually produced earnings of $0.66, delivering a surprise of +1.54%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Annaly doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Another stock from the Zacks REIT and Equity Trust industry, Apollo Commerical Finance (ARI - Free Report) , is soon expected to post earnings of $0.36 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +16.1%. Revenues for the quarter are expected to be $60.07 million, down 13.2% from the year-ago quarter.
The consensus EPS estimate for Apollo Commerical Finance has been revised 6.7% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 0.93%.
When combined with a Zacks Rank of #1 (Strong Buy), this Earnings ESP indicates that Apollo Commerical Finance will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218780/earnings-preview-annaly-capital-management-nly-q4-earnings-expected-to-decline
| 2024-01-31T17:00:46Z
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GENEVA - The head of the World Health Organization (WHO) on Wednesday warned that halting funding to the U.N. Palestinian refugee agency would entail "catastrophic consequences" for people in war-torn Gaza.
"No other entity has the capacity to deliver the scale and breadth of assistance that 2.2 million people in Gaza urgently need," Tedros Adhanom Ghebreyesus told a press conference.
"We appeal for these announcements to be reconsidered," he added, referring to decisions by several countries to pause funding for the U.N. agency following accusations that some agency staff took part in the Oct. 7 attack by Hamas militants.
Israel's bombardment and land offensive launched in the wake of that attack has displaced most of Gaza's population, left many homes and civilian infrastructure in ruins, and caused acute shortages of food, water and medicine.
Most hospitals in Gaza have already ceased functioning due to bombardments and shortages of fuel and supplies. The Nasser Hospital in Khan Younis in central Gaza is only minimally functional and finds itself surrounded by Israeli military, the United Nations has said.
"Decisions by various countries to pause funds for UNRWA, the largest supplier of humanitarian aid in this crisis, will have catastrophic consequences for the people of Gaza," Tedros said.
Tedros said WHO faced "extreme challenges" in delivering medical supplies in the enclave. It did manage, however, to deliver to supplies to the Nasser hospital on Monday, but mission to deliver fuel and food were denied.
"WHO has faced great difficulty even to reach hospitals in southern Gaza," he said. "Heavy fighting has been reported near hospitals in Khan Younis, severely impeding access to health facilities for patients, health workers, and supplies."
Tedros said WHO workers on the ground were reporting increasing food shortages among patients and health workers in the enclave.
"The risk of famine is high and increasing each day, with persistent hostilities and restricted humanitarian access," he said. "Every person our teams talk to asks for food and water." REUTERS
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https://www.straitstimes.com/world/europe/who-chief-says-defunding-unrwa-will-have-catastrophic-consequences
| 2024-01-31T17:00:50Z
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Everest Group (EG - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This reinsurance company is expected to post quarterly earnings of $14.63 per share in its upcoming report, which represents a year-over-year change of +19.8%.
Revenues are expected to be $4.01 billion, up 25.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.27% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Everest Group?
For Everest Group, 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 +1.18%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Everest Group 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 Everest Group would post earnings of $10.18 per share when it actually produced earnings of $14.14, delivering a surprise of +38.90%.
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.
Everest Group 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
Enact Holdings, Inc. (ACT - Free Report) , another stock in the Zacks Insurance - Multi line industry, is expected to report earnings per share of $0.90 for the quarter ended December 2023. This estimate points to no change from the year-ago quarter. Revenues for the quarter are expected to be $303.58 million, up 9.7% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Enact Holdings, Inc. has remained unchanged. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Enact Holdings, Inc. 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/2218781/everest-group-eg-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:00:52Z
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The market expects CVS Health (CVS - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 drugstore chain and pharmacy benefits manager is expected to post quarterly earnings of $2 per share in its upcoming report, which represents a year-over-year change of +0.5%.
Revenues are expected to be $90.46 billion, up 7.9% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.53% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for CVS Health?
For CVS Health, 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 +0.35%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that CVS Health 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 CVS Health would post earnings of $2.13 per share when it actually produced earnings of $2.21, delivering a surprise of +3.76%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CVS Health appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218782/cvs-health-cvs-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:00:58Z
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BAGHDAD -A powerful Iraqi faction that led dozens of attacks against U.S. forces since October was pushed to announce a suspension of attacks through pressure from Tehran and ruling Iraqi parties who felt the faction had crossed a red line, four sources said.
Washington has pointed to Iran-aligned armed group Kataib Hezbollah as the perpetrator of Sunday's drone attack on the Jordanian-Syrian border that killed three U.S. troops and injured dozens more, and has vowed to respond forcefully.
Kataib Hezbollah on Tuesday announced it was stopping all attacks on U.S. forces, citing unwillingness to embarrass the Iraqi government and making rare public note of disagreements with Iran and its so-called "Axis of Resistance".
The abrupt announcement was the clearest sign yet that Tehran and influential Iraqi groups want to avoid a regional conflict tied to the Gaza war, analysts and politicians said, drawing a line after dozens of attacks on U.S. forces since October.
"The groups in Baghdad's government are worried about Iraq becoming a playground in the wider regional conflict and have domestic reasons not to want to risk the status quo," said Renad Mansour, senior research fellow at London's Chatham House think tank.
Dozens of attacks on U.S. forces in Syria and Iraq by the Islamic Resistance in Iraq - an umbrella group of hardline factions including Kataib Hezbollah - ended a months-long truce between the groups and U.S. forces and upset the government's efforts to stabilize the country after decades of conflict.
Four sources, including a Shi'ite politician, an Iraqi official and a person who has met hardline factions in recent days, said killing U.S. troops in Jordan, a neighbouring Arab country and close U.S. ally, was a step too far.
Fearing a large-scale U.S. retaliation, Tehran publicly stated it was not involved and privately passed messages to Kataib Hezbollah to stand down, while ruling Iraqi Shi'ite factions helped broker an end to attacks, sources said.
A Kataib Hezbollah spokesperson could not be reached for comment. Iranian officials did not respond to requests for comment.
"This comes as a result of internal pressure and also a will by our neighbour (Iran) to de-escalate," a Shi'ite politician familiar with the matter said.
"It was a real team effort including with participation of the neighbour," another source said, adding that other Iraqi factions had also committed to stopping attacks but could resume if there was a forceful U.S. response.
"If the U.S. goes big in the next days, it may change things," the source said.
'PRECARIOUS EQUILIBRIUM'
In 2020, the U.S. killed Iran Quds Force commander Qassem Soleimani and Kataib Hezbollah leader Abu Mahdi al-Muhandis in a drone strike at Baghdad's international airport.
The strike came days after the U.S. blamed Kataib Hezbollah for the killing of a U.S. contractor, and some Iraqi officials fear a similarly powerful response could lead to a new cycle of violence.
Iraq's Shi'ite Coordination Framework, the government's main backer, includes Iraqi groups like Asaib Ahl al-Haq that fought U.S. forces after the 2003 U.S.-led invasion but have since turned their focus on gaining political and economic power.
These groups privately opposed recent attacks on U.S. forces, according to five people familiar with the matter, leading to rare public disagreement with hardline factions who felt their political cover was being undermined.
"They felt that they had their back against the wall," said a person familiar with the thinking of senior leaders of groups in the Islamic Resistance.
In announcing the end of their attacks, Kataib Hezbollah said Iran and other allies "often object to the pressure and escalation against the American occupation forces."
Mansour, of Chatham House, said: "It's always a balance of fighting and showing force but not wanting to escalate too far, so it's a very precarious equilibrium of violence they try to maintain."
"That balance is disrupted when you have the killing of American troops, such as in 2019 which prompted the US killing of Soleimani and Muhandis”. REUTERS
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https://www.straitstimes.com/world/how-an-iranian-ally-in-iraq-was-made-to-stand-down
| 2024-01-31T17:01:01Z
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The market expects Vishay Intertechnology (VSH - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 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 chipmaker is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -47.8%.
Revenues are expected to be $778.75 million, down 9% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.49% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Vishay?
For Vishay, 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 -4.67%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Vishay will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Vishay would post earnings of $0.56 per share when it actually produced earnings of $0.60, delivering a surprise of +7.14%.
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.
Vishay 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/2218783/analysts-estimate-vishay-intertechnology-vsh-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-31T17:01:05Z
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O'Reilly Automotive (ORLY - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 auto parts retailer is expected to post quarterly earnings of $9 per share in its upcoming report, which represents a year-over-year change of +7.5%.
Revenues are expected to be $3.83 billion, up 5.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for O'Reilly Automotive?
For O'Reilly Automotive, 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 +0.67%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that O'Reilly Automotive will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that O'Reilly Automotive would post earnings of $10.36 per share when it actually produced earnings of $10.72, delivering a surprise of +3.47%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
O'Reilly Automotive appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218784/oreilly-automotive-orly-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:01:11Z
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MEXICO CITY - Frustrated Mexico City residents have been protesting weeks of water shortages, with officials warning of "unprecedented" low levels in a main system that supplies millions of people.
The bustling capital of 21 million people - one of Latin America's largest cities - is struggling after years of low rainfall blamed on climate change, as well as chaotic urban growth and outdated infrastructure.
In the community of Acambay, about 80 miles (130 km) outside the Mexican capital, protesters forced open the gates of an office of Mexico's National Water Commission (Conagua), breaking windows and ripping shingles off the roof, local media reported.
In the Azcapotzalco neighborhood of Mexico City, residents lined up to fill buckets and trashcans with water piped from a truck.
Azcapotzalco resident Maribel Gutierrez said she had been without water at her home for more than a month. Neighbors have started fighting over the limited supplies, residents said.
"I think they should be empathetic," Gutierrez said of government officials. "We understand there was a serious water problem, but they must understand that water is vital for everyone."
The Mexican capital, situated in a high-altitude valley and built on a former lake-bed, has struggled to supply its residents for years. It relies mostly on water pumped from its underground aquifer and reservoirs outside the city to meet demand.
Officials from Mexico City's water utility SACMEX have said the Cutzamala System, a network of pumping plants, dams and other infrastructure that is the source of water for about 6 million people, is the most stressed it has ever been. They have asked residents to change habits in order to conserve as much water as possible.
"Due to ... the number of residents, plus the population that comes to work in our city, it is in an unprecedented condition. It is something that we had not experienced during this administration, nor in previous administrations," said Rafael Carmona, director of SACMEX.
The Cutzamala System was at 39.7% capacity on Jan. 29, down from about 41% in December and 54% this time last year, government data show.
Mexico City gets at least half its annual rainfall from the North American Monsoon between May and August. With recent seasons drier than usual, the city's reservoirs are now depleted with no chance at rebounding until the summer months, said Andreas Prein, an atmospheric scientist for the NSF National Center for Atmospheric Research in Boulder, Colorado.
"In Mexico, you have to wait until May or June until you can really get a significant boost of precipitation to have a chance to recover water in the reservoirs," Prein said.
The situation puts Mexico City and other major world capitals at risk for the so-called "whiplash effect," Prein said - when a city experiences a rapid swing to wet conditions that can spark flooding.
"The swings are getting more extreme due to climate change," Prein said. "This is what we see on a global scale." REUTERS
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https://www.straitstimes.com/world/mexico-city-residents-protest-unprecedented-water-shortages
| 2024-01-31T17:01:11Z
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Wall Street expects a year-over-year decline in earnings on lower revenues when Central Garden (CENTA - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 pet and lawn products maker is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -12.5%.
Revenues are expected to be $620.11 million, down 1.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.3% 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 an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Central Garden?
For Central Garden, 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 +6.85%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Central Garden 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 Central Garden would post earnings of $0.08 per share when it actually produced earnings of $0.10, delivering a surprise of +25%.
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.
Central Garden 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/2218785/earnings-preview-central-garden-centa-q1-earnings-expected-to-decline
| 2024-01-31T17:01:17Z
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OneMain Holdings (OMF - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This consumer finance company is expected to post quarterly earnings of $1.35 per share in its upcoming report, which represents a year-over-year change of -13.5%.
Revenues are expected to be $913.9 million, up 2.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.24% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that 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 OneMain?
For OneMain, 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 +1.29%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that OneMain will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that OneMain would post earnings of $1.51 per share when it actually produced earnings of $1.57, delivering a surprise of +3.97%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
OneMain appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218786/onemain-holdings-omf-expected-to-beat-earnings-estimates-can-the-stock-move-higher?
| 2024-01-31T17:01:21Z
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WASHINGTON -The United States added more than a dozen Chinese companies to a list created by the Defense Department that highlights entities that are alleged to work with Beijing's military, a U.S. official said on Wednesday.
New additions to the list include memory chip maker YMTC, artificial intelligence company Megvii, lidar maker Hesai Technology and tech company NetPosa.
While being placed on the "Section 1260H" list doesn't involve immediate bans, it carries significant reputational risk for the designated companies and represents a stark warning to U.S. entities about the risks of conducting business with them. It could also add pressure on the Treasury Department to sanction the companies.
In addition, the 2024 National Defense Authorization Act added some teeth to the list, prohibiting the Defense Department under Section 805 of the law in coming years from contracting with any of the designated companies.
The updated list is expected to be made public this afternoon, another U.S. official said.
Chinese embassy in Washington did not immediately respond to a request for comment.
“The Defense Department’s updated 1260H list underscores China’s unwavering commitment to its military-civil fusion strategy,” said Craig Singleton, a senior fellow at the non-partisan Foundation for Defense of Democracies.
“Being listed on 1260H poses major reputational risks to Chinese companies," he added, noting some Chinese firms have tried to be removed from the list.
Other firms added on Wednesday include China Three Gorges Corporation, China Construction Technology Co and Yitu Network Technology.
They join aviation company AVIC, BGI Genomics Co, China Mobile, energy company CNOOC and China Railway Construction Corporation Limited (CRCC). REUTERS
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https://www.straitstimes.com/world/pentagon-calls-out-chinese-companies-allegedly-helping-military-us-official-says
| 2024-01-31T17:01:22Z
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Axcelis Technologies (ACLS - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This semiconductor services company is expected to post quarterly earnings of $1.98 per share in its upcoming report, which represents a year-over-year change of +15.8%.
Revenues are expected to be $295.1 million, up 10.9% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. 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 Axcelis?
For Axcelis, 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 +0.88%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Axcelis will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Axcelis would post earnings of $1.73 per share when it actually produced earnings of $1.99, delivering a surprise of +15.03%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Axcelis 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/2218787/axcelis-technologies-acls-earnings-expected-to-grow-what-to-know-ahead-of-next-weeks-release
| 2024-01-31T17:01:27Z
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NEW YORK – What really matters anyway?
That is what Nia Holland, 24, thought after spending US$2,500 (S$3,300) on a vintage Chanel bag, draining her savings. Earning little money with campus research jobs during graduate school, she knew her money could be better spent, saved or invested.
But at the same time, she said it did not feel irresponsible. With traditional milestones – like home ownership and a life with children – so far out of reach, denying herself “little luxuries” was not going to make a difference. And if anything, the lambskin tote with a 24-carat chain made her feel better.
“The economy sucks, there’s global warming, there’s constant political and social unrest globally,” said Ms Holland, who is getting financial support from her family as she pursues a doctorate in education and psychology at the University of Michigan. “It’s just easier to spend money on things that will bring you immediate fulfillment.”
Typically, when people are on shaky ground economically, they pull back on spending. But, increasingly, younger generations are doing the opposite, figuring their financial futures are doomed no matter what. Higher student debt loads, an increased cost of living and shifts in the labour market have made it more difficult to achieve financial goals, like buying a house or saving for retirement.
As such, about 27 per cent of Americans admit to “doom spending” to cope with concerns about the economy and foreign affairs, according to Credit Karma, a personal finance company. And the rates are even higher among millennials and Generation Z, at 43 per cent and 35 per cent respectively.
“It’s a way to cope – albeit not the healthiest one,” said Ms Courtney Alev, a consumer financial advocate at Credit Karma.
Fatalistic tendencies
While doom spending may capture the economic zeitgeist of the day, the habit is hardly new. Economics professor Stephen Wu of Hamilton College in Clinton, New York, published research in 2004, writing that those who feel luck and other outside factors play a significant role in their financial success are less likely to save.
He argues feelings of fatalism and counterintuitive spending habits have become more common in recent years, particularly after the pandemic and Great Recession. That is when people began to realise that “a large part of their successes and failures were out of their control”, Prof Wu said.
How younger generations are able to swing big-ticket purchases may also come down to increased parental support. With nearly half of young people living at home, some are using the extra disposable income to treat themselves. It can be easy to think that is reasonable too when social media is littered with images of young people splashing out on lavish meals, glamorous vacations and designer goods.
If one is not careful, however, doom spending can be a self-fulfilling prophecy, where the risk of living pay cheque to pay cheque is much higher.
That is the case for Mr Adrian Siega, 26, who recently spent the last of his emergency savings to buy an imitation of a Burberry tote that was featured on the popular HBO show Succession.
Mr Siega moved to New York from the Philippines in 2019, with the goal of getting into college, finding a job and buying a home. But as time has gone by, he has felt his dreams of home ownership slipping out of reach. While he hopes to finally go to college in 2024, he is still living with his mother and receiving financial support.
“Thirty years ago, an apartment in Elmhurst was US$90,000, and now it’s US$400,000 for a one-bedroom; that’s insane,” said Mr Siega, a personal care assistant. So for now, he is focused on what is “needed for the moment” – skincare products, a pea coat and a knock-off Hermes 35cm Birkin Gold Togo bag for US$1,088.
A different path
Costly purchases can seem misguided. But if a person has given up on the dream of a suburban life with kids, that is not necessarily the case, said Ms Maria Melchor, a 27-year-old content creator focused on financial education for Gen Z.
In a TikTok video with more than 1.8 million views, the Yale graduate says that when older people ask how young people can afford things they never buy for themselves, she says it is because they cannot afford anything else.
“Home ownership or starting a family is so out of reach that we’re using that down payment or kid money on whatever it is we can afford that will bring us semblance of the kind of adulthood we were promised,” she says in the video.
In an interview, she said she would not classify Gen Z’s indulgence in luxury items as doom spending. Rather, it is a glimpse into what life could look like for more people, if not all their money was spent on real estate and children. Marriage and birth rates are in decline and remote work, at least for some, opened up the possibility of not being tied down to a single zip code.
“I think the ‘dream’ is changing,” she said. BLOOMBERG
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https://www.straitstimes.com/world/united-states/gen-z-is-splurging-on-luxury-goods-to-soothe-their-economic-despair
| 2024-01-31T17:01:32Z
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Wall Street expects a year-over-year decline in earnings on lower revenues when National Fuel Gas (NFG - 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 7, 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 energy company is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of -28.3%.
Revenues are expected to be $653.87 million, down 0.8% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 15.23% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for National Fuel Gas?
For National Fuel Gas, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that National Fuel Gas will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that National Fuel Gas would post earnings of $0.83 per share when it actually produced earnings of $0.78, delivering a surprise of -6.02%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
National Fuel Gas doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
New Jersey Resources (NJR - Free Report) , another stock in the Zacks Utility - Gas Distribution industry, is expected to report earnings per share of $0.82 for the quarter ended December 2023. This estimate points to a year-over-year change of -28.1%. Revenues for the quarter are expected to be $662.32 million, down 8.5% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for New Jersey Resources has been revised 0.4% down to the current level. Nevertheless, the company now has an Earnings ESP of -22.70%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that New Jersey Resources will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218788/analysts-estimate-national-fuel-gas-nfg-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-31T17:01:34Z
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The market expects ATS (ATS - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 automation services provider is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +29%.
Revenues are expected to be $530.13 million, up 11.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for ATS?
For ATS, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.41%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that ATS 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 ATS would post earnings of $0.48 per share when it actually produced earnings of $0.46, delivering a surprise of -4.17%.
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.
ATS doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Xylem (XYL - Free Report) , another stock in the Zacks Manufacturing - General Industrial industry, is expected to report earnings per share of $0.96 for the quarter ended December 2023. This estimate points to a year-over-year change of +4.4%. Revenues for the quarter are expected to be $2.06 billion, up 36.5% from the year-ago quarter.
The consensus EPS estimate for Xylem has been revised 0.9% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 1.40%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Xylem will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218789/ats-ats-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-31T17:01:40Z
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The U.S. National Center for Missing and Exploited Children (NCMEC) said it had received 4,700 reports last year about content generated by artificial intelligence that depicted child sexual exploitation.
The NCMEC told Reuters the figure reflected a nascent problem that is expected to grow as AI technology advances.
In recent months, child safety experts and researchers have raised the alarm about the risk that generative AI tech, which can create text and images in response to prompts, could exacerbate online exploitation.
The NCMEC has not yet published the total number of child abuse content reports from all sources that it received in 2023, but in 2022 it received reports of about 88.3 million files.
"We are receiving reports from the generative AI companies themselves, (online) platforms and members of the public. It's absolutely happening," said John Shehan, senior vice president at NCMEC, which serves as the national clearinghouse to report child abuse content to law enforcement.
The chief executives of Meta Platforms, X, TikTok, Snap and Discord testified in a Senate hearing on Wednesday about online child safety, where lawmakers questioned the social media and messaging companies about their efforts to protect children from online predators.
Researchers at Stanford Internet Observatory said in a report in June that generative AI could be used by abusers to repeatedly harm real children by creating new images that match a child's likeness.
Content flagged as AI-generated is becoming "more and more photo realistic," making it challenging to determine if the victim is a real person, said Fallon McNulty, director of NCMEC's CyberTipline, which receives reports of online child exploitation.
OpenAI, creator of the popular ChatGPT, has set up a process to send reports to NCMEC, and the organization is in conversations with other generative AI companies, McNulty said. REUTERS
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https://www.straitstimes.com/world/us-receives-thousands-of-reports-of-ai-generated-child-abuse-content-in-growing-risk
| 2024-01-31T17:01:42Z
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Wall Street expects a year-over-year increase in earnings on lower revenues when Walt Disney (DIS - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This entertainment company is expected to post quarterly earnings of $1 per share in its upcoming report, which represents a year-over-year change of +1%.
Revenues are expected to be $23.47 billion, down 0.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.44% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Disney?
For Disney, 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 +0.13%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Disney will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Disney would post earnings of $0.67 per share when it actually produced earnings of $0.82, delivering a surprise of +22.39%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Disney appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218790/walt-disney-dis-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-31T17:01:46Z
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The market expects RMR Group (RMR - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This real estate management services provider is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of -11.8%.
Revenues are expected to be $223.18 million, down 11% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.69% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for RMR Group?
For RMR Group, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.44%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that RMR Group 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 RMR Group would post earnings of $0.46 per share when it actually produced earnings of $0.48, delivering a surprise of +4.35%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RMR Group appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
FirstService (FSV - Free Report) , another stock in the Zacks Real Estate - Operations industry, is expected to report earnings per share of $1.14 for the quarter ended December 2023. This estimate points to a year-over-year change of -6.6%. Revenues for the quarter are expected to be $1.07 billion, up 5% from the year-ago quarter.
The consensus EPS estimate for FirstService has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -3.30%.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that FirstService 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/2218791/rmr-group-rmr-expected-to-beat-earnings-estimates-should-you-buy?
| 2024-01-31T17:01:52Z
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Emerson Electric (EMR - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This maker of process controls systems, valves and analytical instruments is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of +33.3%.
Revenues are expected to be $3.89 billion, up 15.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.09% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Emerson Electric?
For Emerson Electric, 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 +0.41%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Emerson Electric 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 Emerson Electric would post earnings of $1.30 per share when it actually produced earnings of $1.29, delivering a surprise of -0.77%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Emerson Electric appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218792/emerson-electric-emr-earnings-expected-to-grow-what-to-know-ahead-of-next-weeks-release
| 2024-01-31T17:01:59Z
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Kennametal (KMT - 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 7. 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 engineered products maker is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -7.4%.
Revenues are expected to be $495.23 million, down 0.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 2.35% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Kennametal?
For Kennametal, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.58%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Kennametal 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 Kennametal would post earnings of $0.35 per share when it actually produced earnings of $0.41, delivering a surprise of +17.14%.
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.
Kennametal 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/2218793/earnings-preview-kennametal-kmt-q2-earnings-expected-to-decline
| 2024-01-31T17:02:05Z
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The market expects Roblox (RBLX - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 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 online gaming platform is expected to post quarterly loss of $0.57 per share in its upcoming report, which represents a year-over-year change of -18.8%.
Revenues are expected to be $1.08 billion, up 19.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.37% 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 Roblox?
For Roblox, 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 +6.47%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Roblox 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 Roblox would post a loss of $0.52 per share when it actually produced a loss of $0.45, delivering a surprise of +13.46%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Roblox 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/2218794/analysts-estimate-roblox-rblx-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-31T17:02:11Z
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The market expects Regional Management (RM - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 financial services company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -31.5%.
Revenues are expected to be $140.68 million, up 6.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. 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 Regional Management?
For Regional Management, 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 +21.62%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Regional Management 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 Regional Management would post earnings of $0.82 per share when it actually produced earnings of $0.91, delivering a surprise of +10.98%.
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.
Regional Management 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/2218795/analysts-estimate-regional-management-rm-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-31T17:02:20Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when Equifax (EFX - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 credit reporting company is expected to post quarterly earnings of $1.74 per share in its upcoming report, which represents a year-over-year change of +14.5%.
Revenues are expected to be $1.31 billion, up 9.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.18% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Equifax?
For Equifax, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.45%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Equifax 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 Equifax would post earnings of $1.78 per share when it actually produced earnings of $1.76, delivering a surprise of -1.12%.
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.
Equifax doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Among the stocks in the Zacks Financial Transaction Services industry, Fiserv (FI - Free Report) is soon expected to post earnings of $2.15 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +12.6%. This quarter's revenue is expected to be $4.69 billion, up 7.5% from the year-ago quarter.
The consensus EPS estimate for Fiserv has been revised 0.8% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 0.05%.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Fiserv will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218796/equifax-efx-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:02:27Z
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Wall Street expects a year-over-year decline in earnings on lower revenues when Berry Global (BERY - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 packaging company is expected to post quarterly earnings of $1.29 per share in its upcoming report, which represents a year-over-year change of -0.8%.
Revenues are expected to be $2.99 billion, down 2.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Berry Global?
For Berry Global, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.13%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Berry Global 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 Berry Global would post earnings of $2.13 per share when it actually produced earnings of $2.28, delivering a surprise of +7.04%.
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.
Berry Global 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/2218797/earnings-preview-berry-global-bery-q1-earnings-expected-to-decline
| 2024-01-31T17:02:33Z
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The market expects Inter & Co. Inc. (INTR - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +600%.
Revenues are expected to be $269.81 million, up 156.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Inter & Co. Inc.
For Inter & Co. Inc.The Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.27%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Inter & Co. Inc. 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 Inter & Co. Inc. Would post earnings of $0.04 per share when it actually produced earnings of $0.05, delivering a surprise of +25%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Inter & Co. Inc. Appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218798/inter-co-inc-intr-reports-next-week-wall-street-expects-earnings-growth?-co.-inc.-(intr)-reports-next-week:-wall-street-expects-earnings-growth
| 2024-01-31T17:02:39Z
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The market expects Globe Life (GL - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This life and health insurance company is expected to post quarterly earnings of $2.74 per share in its upcoming report, which represents a year-over-year change of +22.3%.
Revenues are expected to be $1.4 billion, up 5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.06% 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 Globe Life?
For Globe Life, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.12%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Globe Life will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Globe Life would post earnings of $2.65 per share when it actually produced earnings of $2.71, delivering a surprise of +2.26%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Globe Life doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
StoneX Group Inc. (SNEX - Free Report) , another stock in the Zacks Financial - Miscellaneous Services industry, is expected to report earnings per share of $1.76 for the quarter ended December 2023. This estimate points to a year-over-year change of +2.3%. Revenues for the quarter are expected to be $781.8 million, up 19.4% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for StoneX Group Inc. has been revised 2.6% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that StoneX Group Inc. 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/2218799/globe-life-gl-earnings-expected-to-grow-what-to-know-ahead-of-next-weeks-release
| 2024-01-31T17:02:45Z
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The market expects McKesson (MCK - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 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 prescription drug distributor is expected to post quarterly earnings of $7.05 per share in its upcoming report, which represents a year-over-year change of +2.2%.
Revenues are expected to be $77.48 billion, up 9.9% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.03% 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 McKesson?
For McKesson, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.32%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that McKesson will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that McKesson would post earnings of $6.11 per share when it actually produced earnings of $6.23, delivering a surprise of +1.96%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
McKesson 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/2218800/mckesson-mck-earnings-expected-to-grow-what-to-know-ahead-of-next-weeks-release
| 2024-01-31T17:02:52Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when Paypal (PYPL - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 technology platform and digital payments company is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of +9.7%.
Revenues are expected to be $7.88 billion, up 6.8% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.39% 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 Paypal?
For Paypal, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.59%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Paypal 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 Paypal would post earnings of $1.22 per share when it actually produced earnings of $1.30, delivering a surprise of +6.56%.
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.
Paypal doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Internet - Software industry, Snap (SNAP - Free Report) , is soon expected to post earnings of $0.07 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of -50%. Revenues for the quarter are expected to be $1.39 billion, up 6.7% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Snap has been revised 10.9% up to the current level. Nevertheless, the company now has an Earnings ESP of 23.08%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Snap will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218801/paypal-pypl-earnings-expected-to-grow-what-to-know-ahead-of-next-weeks-release
| 2024-01-31T17:02:58Z
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Murphy USA (MUSA - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This gasoline station operator is expected to post quarterly earnings of $6.14 per share in its upcoming report, which represents a year-over-year change of +17.9%.
Revenues are expected to be $5.5 billion, up 2.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.11% 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 Murphy USA?
For Murphy USA, 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 -3.95%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Murphy USA 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 Murphy USA would post earnings of $6.08 per share when it actually produced earnings of $7.69, delivering a surprise of +26.48%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Murphy USA 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/2218802/murphy-usa-musa-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:03:02Z
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Hain Celestial (HAIN - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This organic and natural products company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -45%.
Revenues are expected to be $459.52 million, up 1.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.06% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Hain Celestial?
For Hain Celestial, 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 -12.50%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Hain Celestial 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 Hain Celestial would post a loss of $0.06 per share when it actually produced a loss of $0.04, delivering a surprise of +33.33%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Hain Celestial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Aramark (ARMK - Free Report) , another stock in the Zacks Food - Miscellaneous industry, is expected to report earnings per share of $0.35 for the quarter ended December 2023. This estimate points to a year-over-year change of -14.6%. Revenues for the quarter are expected to be $4.27 billion, down 7.2% from the year-ago quarter.
The consensus EPS estimate for Aramark has been revised 0.2% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -3.86%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Aramark will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218803/earnings-preview-hain-celestial-hain-q2-earnings-expected-to-decline
| 2024-01-31T17:03:09Z
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Penske Automotive (PAG - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 7, 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 auto dealership chain is expected to post quarterly earnings of $3.66 per share in its upcoming report, which represents a year-over-year change of -13.1%.
Revenues are expected to be $7.19 billion, up 2.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.45% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Penske?
For Penske, 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 -4.24%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Penske 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 Penske would post earnings of $4.04 per share when it actually produced earnings of $3.90, delivering a surprise of -3.47%.
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.
Penske 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/2218804/earnings-preview-penske-automotive-pag-q4-earnings-expected-to-decline
| 2024-01-31T17:03:15Z
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Red Rock Resorts (RRR - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -60%.
Revenues are expected to be $440.29 million, up 3.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Red Rock Resorts?
For Red Rock Resorts, 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 +11.07%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Red Rock Resorts will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Red Rock Resorts would post earnings of $0.38 per share when it actually produced earnings of $0.60, delivering a surprise of +57.89%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Red Rock Resorts appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218805/red-rock-resorts-rrr-expected-to-beat-earnings-estimates-should-you-buy?
| 2024-01-31T17:03:21Z
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Spirit (SAVE - 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 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This airline is expected to post quarterly loss of $1.48 per share in its upcoming report, which represents a year-over-year change of -1333.3%.
Revenues are expected to be $1.32 billion, down 5.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 2.06% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Spirit?
For Spirit, 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 +6.03%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Spirit will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Spirit would post a loss of $1.47 per share when it actually produced a loss of $1.37, delivering a surprise of +6.80%.
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.
Spirit appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Transportation - Airline industry, Frontier Group Holdings (ULCC - Free Report) , is soon expected to post loss of $0.24 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of -233.3%. Revenues for the quarter are expected to be $891.55 million, down 1.6% from the year-ago quarter.
The consensus EPS estimate for Frontier Group has been revised 29.2% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 10.39%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Frontier Group will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218806/spirit-save-expected-to-beat-earnings-estimates-should-you-buy?
| 2024-01-31T17:03:28Z
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The market expects Confluent (CFLT - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 data infrastructure software maker is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +155.6%.
Revenues are expected to be $204.62 million, up 21.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.39% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Confluent?
For Confluent, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Confluent will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Confluent would post a loss of $0.01 per share when it actually produced earnings of $0.02, delivering a surprise of +300%.
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.
Confluent doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Technology Services industry, Kyndryl Holdings, Inc. (KD - Free Report) , is soon expected to post earnings of $0.10 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +121.3%. Revenues for the quarter are expected to be $3.89 billion, down 9.7% from the year-ago quarter.
The consensus EPS estimate for Kyndryl Holdings, Inc. has remained unchanged over the last 30 days. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Kyndryl Holdings, Inc. will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218808/confluent-cflt-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-31T17:03:34Z
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The market expects Envista (NVST - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This maker of dental products is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of -34.6%.
Revenues are expected to be $632.7 million, down 4.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.45% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Envista?
For Envista, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.39%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Envista 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 Envista would post earnings of $0.46 per share when it actually produced earnings of $0.43, delivering a surprise of -6.52%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Envista 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/2218809/earnings-preview-envista-nvst-q4-earnings-expected-to-decline
| 2024-01-31T17:03:40Z
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The market expects Uber Technologies (UBER - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This ride-hailing company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -48.3%.
Revenues are expected to be $9.75 billion, up 13.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.86% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Uber?
For Uber, 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 +28.29%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Uber will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Uber would post earnings of $0.13 per share when it actually produced earnings of $0.10, delivering a surprise of -23.08%.
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.
Uber appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218810/uber-technologies-uber-expected-to-beat-earnings-estimates-can-the-stock-move-higher?
| 2024-01-31T17:03:46Z
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The market expects TechTarget (TTGT - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This operator of websites for information technology vendors is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of -44.1%.
Revenues are expected to be $56.73 million, down 22.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 6.67% 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 an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for TechTarget?
For TechTarget, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.44%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that TechTarget 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 TechTarget would post earnings of $0.39 per share when it actually produced earnings of $0.43, delivering a surprise of +10.26%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
TechTarget 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/2218811/analysts-estimate-techtarget-ttgt-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-31T17:03:53Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when Yum Brands (YUM - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 parent company of KFC, Taco Bell and Pizza Hut is expected to post quarterly earnings of $1.39 per share in its upcoming report, which represents a year-over-year change of +6.1%.
Revenues are expected to be $2.12 billion, up 4.9% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.65% 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 Yum?
For Yum, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.68%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Yum will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Yum would post earnings of $1.26 per share when it actually produced earnings of $1.44, delivering a surprise of +14.29%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Yum doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Yum China Holdings (YUMC - Free Report) , another stock in the Zacks Retail - Restaurants industry, is expected to report earnings per share of $0.13 for the quarter ended December 2023. This estimate points to no change from the year-ago quarter. Revenues for the quarter are expected to be $2.37 billion, up 13.5% from the year-ago quarter.
The consensus EPS estimate for Yum China has been revised 2.3% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 20.76%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Yum China will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218812/yum-brands-yum-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-31T17:03:59Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when FleetCor Technologies (FLT - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 provider of fuel card and payment products for businesses is expected to post quarterly earnings of $4.47 per share in its upcoming report, which represents a year-over-year change of +10.6%.
Revenues are expected to be $968.68 million, up 9.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.03% 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 FleetCor Technologies?
For FleetCor Technologies, 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 +0.37%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that FleetCor Technologies 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 FleetCor Technologies would post earnings of $4.49 per share when it actually produced earnings of $4.49, delivering no surprise.
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.
FleetCor Technologies appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218813/fleetcor-technologies-flt-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-31T17:04:05Z
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The market expects Paycom Software (PAYC - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This maker of human-resources and payroll software is expected to post quarterly earnings of $1.78 per share in its upcoming report, which represents a year-over-year change of +2.9%.
Revenues are expected to be $422.59 million, up 14% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.18% 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 Paycom?
For Paycom, 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 -2.70%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Paycom 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 Paycom would post earnings of $1.62 per share when it actually produced earnings of $1.77, delivering a surprise of +9.26%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Paycom 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/2218814/paycom-software-payc-earnings-expected-to-grow-what-to-know-ahead-of-next-weeks-release
| 2024-01-31T17:04:12Z
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Mattel (MAT - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 toy maker is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +77.8%.
Revenues are expected to be $1.68 billion, up 19.8% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 36.18% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Mattel?
For Mattel, 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 -27.56%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Mattel 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 Mattel would post earnings of $0.87 per share when it actually produced earnings of $1.08, delivering a surprise of +24.14%.
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.
Mattel 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/2218815/mattel-mat-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:04:18Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when Triumph Group (TGI - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 aircraft supplier is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +8.3%.
Revenues are expected to be $366.32 million, up 11.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Triumph Group?
For Triumph Group, 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 +13.64%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Triumph Group will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Triumph Group would post earnings of $0.01 per share when it actually produced earnings of $0.01, delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Triumph Group appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Aerospace - Defense Equipment industry, Spirit Aerosystems (SPR - Free Report) , is soon expected to post earnings of $1.33 per share for the quarter ended December 2023. This estimate indicates a year-over-year change of +191.1%. Revenues for the quarter are expected to be $1.74 billion, up 31.7% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Spirit Aerosystems has been revised 9.6% down to the current level. Nevertheless, the company now has an Earnings ESP of -32.21%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Spirit Aerosystems will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218816/triumph-group-tgi-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:04:24Z
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Performance Food Group (PFGC - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This food distributor is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of +10.8%.
Revenues are expected to be $14.25 billion, up 2.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Performance Food?
For Performance Food, 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 -2.59%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Performance Food 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 Performance Food would post earnings of $1.11 per share when it actually produced earnings of $1.15, delivering a surprise of +3.60%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Performance Food 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/2218817/performance-food-group-pfgc-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:04:30Z
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Wall Street expects a year-over-year decline in earnings on lower revenues when Moelis (MC - 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 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This investment bank is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -133.3%.
Revenues are expected to be $197.87 million, down 4.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 37.31% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Moelis?
For Moelis, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Moelis 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 Moelis would post earnings of $0.05 per share when it actually produced a loss of $0.15, delivering a surprise of -400%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
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.
Moelis doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Tradeweb Markets (TW - Free Report) , another stock in the Zacks Financial - Investment Bank industry, is expected to report earnings per share of $0.63 for the quarter ended December 2023. This estimate points to a year-over-year change of +28.6%. Revenues for the quarter are expected to be $368.08 million, up 25.6% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Tradeweb has been revised 2.9% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Tradeweb will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218818/earnings-preview-moelis-mc-q4-earnings-expected-to-decline
| 2024-01-31T17:04:37Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when Molina (MOH - 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 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This provider of Medicaid-related services is expected to post quarterly earnings of $4.31 per share in its upcoming report, which represents a year-over-year change of +5.1%.
Revenues are expected to be $8.3 billion, up 1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.18% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Molina?
For Molina, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.84%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Molina 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 Molina would post earnings of $4.87 per share when it actually produced earnings of $5.05, delivering a surprise of +3.70%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Molina doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Centene (CNC - Free Report) , another stock in the Zacks Medical - HMOs industry, is expected to report earnings per share of $0.43 for the quarter ended December 2023. This estimate points to a year-over-year change of -50%. Revenues for the quarter are expected to be $35.99 billion, up 1.2% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Centene has been revised 0.8% down to the current level. Nevertheless, the company now has an Earnings ESP of -11.38%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Centene will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218819/molina-moh-reports-next-week-wall-street-expects-earnings-growth
| 2024-01-31T17:04:43Z
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Hilton Worldwide Holdings Inc. (HLT - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This company is expected to post quarterly earnings of $1.55 per share in its upcoming report, which represents a year-over-year change of -2.5%.
Revenues are expected to be $2.57 billion, up 5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.43% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Hilton Worldwide Holdings Inc.
For Hilton Worldwide Holdings Inc.The Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.37%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Hilton Worldwide Holdings Inc. Will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Hilton Worldwide Holdings Inc. Would post earnings of $1.67 per share when it actually produced earnings of $1.67, delivering no surprise.
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.
Hilton Worldwide Holdings Inc. 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/2218820/analysts-estimate-hilton-worldwide-holdings-inc-hlt-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-31T17:04:49Z
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Neurocrine Biosciences (NBIX - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. 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 biopharmaceutical company is expected to post quarterly earnings of $1.13 per share in its upcoming report, which represents a year-over-year change of +28.4%.
Revenues are expected to be $521.57 million, up 26.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 4.32% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Neurocrine?
For Neurocrine, 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 +15.79%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Neurocrine will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Neurocrine would post earnings of $0.91 per share when it actually produced earnings of $0.82, delivering a surprise of -9.89%.
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.
Neurocrine appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218821/neurocrine-biosciences-nbix-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:04:56Z
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The market expects Copa Holdings (CPA - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 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 holding company for Panama's national airline is expected to post quarterly earnings of $3.88 per share in its upcoming report, which represents a year-over-year change of -13.6%.
Revenues are expected to be $893.57 million, up 0.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 6.6% 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 Copa Holdings?
For Copa Holdings, 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 -2%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination makes it difficult to conclusively predict that Copa Holdings will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Copa Holdings would post earnings of $3.74 per share when it actually produced earnings of $4.39, delivering a surprise of +17.38%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Copa Holdings 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/2218822/analysts-estimate-copa-holdings-cpa-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-31T17:05:02Z
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The market expects First American Financial (FAF - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 7, 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 financial services company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of -44.4%.
Revenues are expected to be $1.46 billion, down 13.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 9.8% 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 First American Financial?
For First American Financial, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that First American Financial will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that First American Financial would post earnings of $1.09 per share when it actually produced earnings of $1.22, delivering a surprise of +11.93%.
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.
First American Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Cincinnati Financial (CINF - Free Report) , another stock in the Zacks Insurance - Property and Casualty industry, is expected to report earnings per share of $1.85 for the quarter ended December 2023. This estimate points to a year-over-year change of +45.7%. Revenues for the quarter are expected to be $2.29 billion, up 9.8% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Cincinnati Financial has been revised 0.3% up to the current level. Nevertheless, the company now has an Earnings ESP of -2.70%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Cincinnati Financial 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/2218823/analysts-estimate-first-american-financial-faf-to-report-a-decline-in-earnings-what-to-look-out-for
| 2024-01-31T17:05:09Z
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Wall Street expects a year-over-year decline in earnings on higher revenues when Universal Technical Institute (UTI - 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 7, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This school for auto, motorcycle and marine technicians is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -40%.
Revenues are expected to be $168.19 million, up 40.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 14.29% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Universal Technical?
For Universal Technical, 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 +5.88%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that Universal Technical will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Universal Technical would post earnings of $0.12 per share when it actually produced earnings of $0.10, delivering a surprise of -16.67%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Universal Technical appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218824/universal-technical-institute-uti-expected-to-beat-earnings-estimates-should-you-buy?
| 2024-01-31T17:05:16Z
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Fox (FOXA - 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 7. 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 TV broadcasting company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -81.3%.
Revenues are expected to be $4.18 billion, down 9.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 2.55% 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 Fox?
For Fox, 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 +27.78%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Fox 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 Fox would post earnings of $0.96 per share when it actually produced earnings of $1.09, delivering a surprise of +13.54%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Fox appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218825/fox-foxa-expected-to-beat-earnings-estimates-can-the-stock-move-higher?
| 2024-01-31T17:05:22Z
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Wall Street expects a year-over-year increase in earnings on higher revenues when Adient (ADNT - Free Report) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This automotive seating and interiors supplier is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +35.3%.
Revenues are expected to be $3.72 billion, up 0.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 27.12% 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 Adient?
For Adient, 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 -3.85%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Adient 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 Adient would post earnings of $0.52 per share when it actually produced earnings of $0.51, delivering a surprise of -1.92%.
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.
Adient doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Lear (LEA - Free Report) , another stock in the Zacks Automotive - Original Equipment industry, is expected to report earnings per share of $3.04 for the quarter ended December 2023. This estimate points to a year-over-year change of +8.2%. Revenues for the quarter are expected to be $5.64 billion, up 5% from the year-ago quarter.
The consensus EPS estimate for Lear has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.63%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Lear will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218826/adient-adnt-earnings-expected-to-grow-should-you-buy?
| 2024-01-31T17:05:28Z
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For the quarter ended December 2023, Hess (HES - Free Report) reported revenue of $3.04 billion, down 0.6% over the same period last year. EPS came in at $1.63, compared to $1.78 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.77 billion, representing a surprise of +9.38%. The company delivered an EPS surprise of +13.99%, with the consensus EPS estimate being $1.43.
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 Hess performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average selling price-natural gas liquids-U.S: $20.92 versus $20.60 estimated by five analysts on average.
- Barrels of oil equivalent: 418 KBOE/D compared to the 408.8 KBOE/D average estimate based on five analysts.
- Average selling price - natural gas - Malaysia and JDA: $6.45 versus $5.69 estimated by four analysts on average.
- Average selling price - natural gas - Total United States: $1.65 compared to the $2.15 average estimate based on four analysts.
- Production per day - Crude oil - Total: 244 thousands of barrels of oil versus the four-analyst average estimate of 233.36 thousands of barrels of oil.
- Production per day - Natural gas - Total: 608 Mcf/D compared to the 625.8 Mcf/D average estimate based on four analysts.
- Production per day - Natural gas liquids - Total United States: 73 thousands of barrels of oil compared to the 71.03 thousands of barrels of oil average estimate based on four analysts.
- Average selling price - natural gas liquids - United States - Offshore: $19.26 versus $21.34 estimated by three analysts on average.
- Production per day - Natural gas - United States - Offshore: 42 Mcf/D compared to the 50 Mcf/D average estimate based on three analysts.
- Production per day - Natural gas - United States - North Dakota: 204 Mcf/D versus 197.47 Mcf/D estimated by three analysts on average.
- Production per day - Natural gas liquids - United States - Offshore: 2 thousands of barrels of oil versus the three-analyst average estimate of 2.38 thousands of barrels of oil.
- Revenues- Sales and other operating revenues: $3.01 billion versus the three-analyst average estimate of $2.79 billion. The reported number represents a year-over-year change of +2.6%.
Shares of Hess have returned -0.9% over the past month versus the Zacks S&P 500 composite's +3.3% 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/2218827/heres-what-key-metrics-tell-us-about-hess-hes-q4-earnings
| 2024-01-31T17:05:34Z
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For the quarter ended December 2023, Brinker International (EAT - Free Report) reported revenue of $1.07 billion, up 5.4% over the same period last year. EPS came in at $0.99, compared to $0.76 in the year-ago quarter.
The reported revenue represents a surprise of -0.36% over the Zacks Consensus Estimate of $1.08 billion. With the consensus EPS estimate being $0.94, the EPS surprise was +5.32%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Brinker International performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Comparable store sales - Chili's - YoY change: 5% versus 6.7% estimated by nine analysts on average.
- Franchise restaurants - Total: 474 compared to the 472 average estimate based on eight analysts.
- Comparable store sales - Maggiano's - YoY change: 6.7% versus the eight-analyst average estimate of 3.6%.
- Company owned restaurants - Maggiano's - Domestic locations: 50 versus the seven-analyst average estimate of 50.
- Franchise and other revenues: $10.40 million versus $10.37 million estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +8.3% change.
- Total Revenue- Company Restaurant Sales: $1.06 billion versus $1.07 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +5.4% change.
- Revenue- Company sales- Maggiano's: $146.80 million compared to the $142.72 million average estimate based on four analysts. The reported number represents a change of +4.8% year over year.
- Revenue- Company sales- Chili's: $916.90 million versus $918.34 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.5% change.
- Total Revenue- Maggiano's: $146.90 million versus the two-analyst average estimate of $142.44 million. The reported number represents a year-over-year change of +4.7%.
- Total Revenue- Chili's: $927.20 million compared to the $928.26 million average estimate based on two analysts. The reported number represents a change of +5.5% year over year.
- Franchise revenues- Maggiano's: $0.10 million compared to the $0.15 million average estimate based on two analysts.
- Franchise revenues- Chili?s: $10.30 million versus $10.44 million estimated by two analysts on average.
Shares of Brinker International have returned -3.3% over the past month versus the Zacks S&P 500 composite's +3.3% 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/2218828/heres-what-key-metrics-tell-us-about-brinker-international-eat-q2-earnings
| 2024-01-31T17:05:41Z
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Investors are always looking for stocks that are poised to beat at earnings season and Sanofi (SNY - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Sanofi is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for SNY in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 99 cents per share for SNY, compared to a broader Zacks Consensus Estimate of 94 cents per share. This suggests that analysts have very recently bumped up their estimates for SNY, giving the stock a Zacks Earnings ESP of +4.79% heading into earnings season.
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that SNY has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Sanofi, and that a beat might be in the cards for the upcoming report.
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https://www.zacks.com/stock/news/2218829/why-sanofi-sny-might-surprise-this-earnings-season
| 2024-01-31T17:05:44Z
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Electronic Arts (EA - Free Report) reported third-quarter fiscal 2024 earnings of $2.96 per share, which jumped 9.2% year over year.
Revenues increased 3.4% year over year to $1.94 billion, driven by new releases, continued live services growth and healthy engagement.
The Zacks Consensus Estimate for earnings was pegged at $2.92 per share. The consensus mark for revenues was pinned at $2.39 billion.
Net bookings for the third quarter were $2.36 billion, up 1% year over year or 2% in constant currency (cc). The figure missed the Zacks Consensus Estimate by 0.73%.
Live services net bookings were $1.71 billion, up 3% year over year or 5% in cc.
Quarter Details
EA’s full-game revenues (31.8% of total revenues) decreased 0.6% year over year to $618 million. The figure beat the Zacks Consensus Estimate by 15.22%.
Full-game download revenues increased 2% year over year to $431 million. The figure beat the Zacks Consensus Estimate by 18.7%.
Revenues from packaged goods remained flat year over year at $187 million. The figure beat the Zacks Consensus Estimate by 7.91%.
Live services and other revenues (68.2% of total revenues) increased 5.4% year over year to $1.33 billion. The figure beat the Zacks Consensus Estimate by 1.46%.
Based on platforms, revenues from consoles increased 7% year over year to $1.23 billion in the reported quarter. The figure beat the Zacks Consensus Estimate by 10.98%.
Revenues from PC & Other declined 3% year over year to $420 million. The figure missed the consensus mark by 4.16%.
Revenues from the mobile platform increased 1% year over year to $296 million. The figure missed the Zacks Consensus Estimate by 0.87%.
Gaming Metrics
EA SPORTS Madden NFL delivered a strong quarter, with net bookings up 5% year over year, as exciting new in-game innovations continued to drive growth across player acquisition and engagement.
EA SPORTS FC was a huge achievement for EA. In the third quarter, the total global football business significantly exceeded expectations. The franchise outperformed third-quarter expectations, delivering 7% net bookings growth compared with a prior year that included the World Cup.
New releases of EA SPORTS UFC, NHL and World Rally Championship contributed to further expanding the aggregate fandom and strength of the EA SPORTS community, creating additional value-added services in one of the largest sports brands and platforms in the world.
Apex Legends did not meet the company’s expectations, as the teams continued to learn and iterate with each new season and event. In the past few weeks, the recent cross-over promotion showed promising early signals, delivering two of the highest net bookings days over the fiscal year. With the launch of Season 20 in February, the teams will deliver more innovation as they continue to build for the long term.
Operating Details
EA’s GAAP gross profit rose 7.8% from the year-ago quarter’s levels to $1.42 billion. Gross margin expanded 300 basis points (bps) on a year-over-year basis to 72.8%.
Operating expenses increased 2.6% year over year to $1.051 billion. As a percentage of revenues, operating expenses contracted 40 bps on a year-over-year basis to 54%.
Operating income on a GAAP basis increased 26.3% year over year to $365 million. The operating margin expanded 340 bps year over year to 18.8% in the reported quarter.
Balance Sheet and Cash Flow
As of Dec 31, 2023, EA had $3.1 billion in cash and short-term investments compared with $2.3 billion as of Sep 30, 2023.
Net cash provided by operating activities for the quarter was $1.264 billion, up 13% year over year. For the trailing 12 months, net cash provided by operating activities was a record $2.352 billion.
EA repurchased 2.5 million shares for $325 million during the quarter, bringing the total for the trailing 12 months to 10.4 million shares for $1.300 billion.
EA has declared a quarterly cash dividend of 19 cents per share of the company’s common stock. The dividend is payable on Mar 20, 2024, to shareholders of record as of the close of business on Feb 28, 2024.
Guidance
For fourth-quarter fiscal 2024, EA expects GAAP revenues between $1.625 billion and $1.925 billion and diluted earnings in the range of 20-68 cents per share. Net bookings are expected between $1.625 billion and $1.925 billion.
For fiscal 2024, EA expects revenues in the range of $7.408-$7.708 billion and diluted earnings of $4.21-$4.68 per share.
The company expects net bookings guidance for the year between $7.389 billion and $7.689 billion.
Operating cash flow is estimated in the band of $1.95-$2.1 billion.
Zacks Rank & Other Stocks to Consider
EA currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Consumer Discretionary sector are Flexsteel Industries (FLXS - Free Report) , Universal Technical Institute (UTI - Free Report) and TakeTwo Interactive (TTWO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Flexsteel Industries, Universal Technical Institute and TakeTwo are scheduled to report the quarterly results on Feb 5, Feb 7 and Feb 8, respectively.
The Zacks Consensus Estimate for FLXS’ first-quarter 2024 earnings per share is pegged at 57 cents, up by 30 cents over the past 30 days.
The Zacks Consensus Estimate for UTI’s first-quarter 2024 earnings per share is pegged at 6 cents, which has remained unchanged over the past 30 days.
The Zacks Consensus Estimate for TTWO’s first-quarter 2024 earnings per share is pegged at 72 cents, down by 1 cent over the past 30 days.
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https://www.zacks.com/stock/news/2218830/electronic-arts-ea-q3-earnings-and-revenues-rise-yy
| 2024-01-31T17:05:50Z
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Microsoft (MSFT - Free Report) reported second-quarter fiscal 2024 earnings of $2.93 per share, which beat the Zacks Consensus Estimate by 6.16% and improved 33.2% on a year-over-year basis. At constant currency (cc), earnings increased 23% year over year.
Revenues of $62.02 billion increased 17.6% year over year and beat the Zacks Consensus Estimate by 1.6%. At cc, revenues grew 16% year over year.
In commercial business, the company witnessed strong demand for Microsoft Cloud offerings, including artificial intelligence (AI) services, which drove better-than-expected growth in large and long-term Azure contracts. Microsoft 365 suite strength contributed to ARPU expansion for Office Commercial business, while new business growth continued to be moderated for standalone products sold outside the Microsoft 365 suite.
Commercial bookings increased 17% and 9% at constant currency, ahead of expectations, primarily driven by strength in long-term Azure contracts and strong execution across core annuity sales motions.
Commercial remaining performance obligation increased 17% (16% at cc) to $222 billion. Roughly 45% will be recognized in revenues in the next 12 months, up 15% year over year. The remaining portion, which will be recognized beyond the next 12 months, increased 19%.
Microsoft Cloud revenues were $33.7 billion, up 24% (up 22% at cc) year over year, driven by strong execution by sales teams and partners.
In the consumer business, the personal computer (PC) and advertising markets were generally in line with the company’s expectations. PC market volumes continued to stabilize at pre-pandemic levels. The gaming console market was a bit smaller.
Microsoft completed the acquisition of Activision Blizzard on Oct 13, 2023.
Segmental Details
The Productivity & Business Processes segment, which includes the Office and Dynamics CRM businesses, contributed 31% to total revenues. Revenues increased 13% (up 12% at cc) on a year-over-year basis to $19.2 billion, primarily driven by better-than-expected results in LinkedIn, and beat the consensus mark by 1.42%.
Office commercial products and cloud services revenues grew 15% (up 13% at cc). Office 365 commercial revenues increased 17% (up 16% at cc). This rise continues to be driven by healthy renewal execution and ARPU growth as E5 momentum remains strong.
Paid Office 365 commercial seats grew 9% year over year to more than 400 million with installed base expansion across all customer segments. Seat growth was driven by small and medium business and frontline worker offerings, with continued impact from the growth trends in new standalone businesses.
Office commercial licensing declined 17% year over year (down 18% at cc), which was in line with the continued customer shift to cloud offerings.
Office Consumer products and cloud services revenues increased 5% (up 4% at cc). Microsoft 365 Consumer subscribers grew to 78.4 million in the reported quarter, up 16% year over year.
LinkedIn revenues increased 9% (8% at cc), ahead of expectations, driven by slightly better-than-expected performance across all businesses. In the Talent Solutions business, bookings growth was impacted by a weaker hiring environment in key verticals.
Dynamics products and cloud services revenues grew 21% (up 19% at cc) because of Dynamics 365, which increased 27% (up 24% at cc) with continued growth across all workloads.
Bookings growth was negatively impacted by weaker new business, primarily in Dynamics 365 ERP and CRM workloads.
The Intelligent Cloud segment, including server and enterprise products and services, contributed 41.7% to total revenues. The segment reported revenues of $25.9 billion, which increased 20% year over year (up 19% at cc) and beat the consensus mark by 2.38%.
Server products and cloud services revenues increased 22% (up 20% at cc), driven by Azure and other cloud services revenue growth of 30% (up 28% at cc), including roughly 6 points from AI services.
Azure offers the top performance for AI training and inference and the most diverse selection of AI accelerators, including the latest from AMD and NVIDIA, as well as the company’s first-party silicon, Azure Maia.
Microsoft witnessed solid adoption of Azure AI, which now has a clientele of more than 53,000 customers. Over one-third of customers are new to Azure over the past 12 months.
The company’s new models-as-a-service offering makes it easy for developers to use LLMs from partners like Cohere, Meta Platform (META - Free Report) and Mistral on Azure without having to manage underlying infrastructure.
Meta and Microsoft seek to provide an open approach to AI development, which benefits companies by enabling innovation, collaboration and transparency. They have been working together for more than a decade on various AI initiatives, such as PyTorch, the partnership on AI and the metaverse.
In the fiscal second quarter, the company added support for OpenAI’s latest models, including GPT-4 Turbo, GPT-4 with Vision, Dall-E 3, as well as fine-tuning. Over half of the Fortune 500 use Azure OpenAI today, including Ally Financial, Coca-Cola and Rockwell Automation.
Walmart (WMT - Free Report) is using Azure OpenAI Service, along with its own proprietary data and models, to streamline more than 50,000 associates’ work and transform customers’ digital shopping experience.
Vodafone (VOD - Free Report) will invest $1.5 billion in cloud and AI services over the next 10 years as it works to transform the digital experience of more than 300 million customers worldwide.
MSFT is integrating the power of AI across the entire data stack. Microsoft Intelligent Data Platform brings together operational databases, analytics, governance and AI to help organizations simplify and consolidate their data estate.
Cosmos DB is the go-to database to build AI-powered apps at any scale, powering workloads for companies in every industry, from AXA and Coles to Mitsubishi and TomTom. Cosmos DB data transactions increased 42% year over year.
Microsoft Fabric is also gaining momentum in unifying compute, storage and governance into one end-to-end analytical solution, with an all-inclusive business model.
In the fiscal second quarter, the company made Microsoft Fabric generally available, helping customers like Milliman and PwC. Data stored in Fabric’s multi-cloud data lake, OneLake, increased 46% quarter over quarter.
On the developer side, GitHub revenues increased more than 40% year over year, driven by all-up platform growth and the adoption of GitHub Copilot, the world’s most widely deployed AI developer tool. Microsoft now has more than 1.3 million paid GitHub Copilot subscribers, up 30% quarter over quarter.
More than 50,000 organizations use GitHub Copilot Business to supercharge the productivity of their developers, from digital natives like Etsy and HelloFresh to leading enterprises like Autodesk, Dell Technologies and Goldman Sachs. Accenture alone will roll out GitHub Copilot to 50,000 of its developers this year.
More than 230,000 organizations have already used AI capabilities in Power Platform, up more than 80% quarter over quarter. With Copilot Studio, organizations can tailor Copilot for Microsoft 365 or create their own custom copilots. It has already been used by more than 10,000 organizations, including An Post, Holland America and PG&E.
In Sales, Copilot has helped sellers at more than 30,000 organizations, including Lumen Technologies and Schneider Electric, to enrich their customer interactions using data from Dynamics 365 or Salesforce.
In healthcare, DAX Copilot is being used by more than 100 healthcare systems, including Lifespan, UNC Health and UPMC, to increase physician productivity and reduce burnout.
Copilot in Windows is already available on more than 75 million Windows 10 and Windows 11 PCs.
The company’s Unified Security Operations Platform brings together its SIEM Microsoft Sentinel, XDR Microsoft Defender and Copilot for Security to help teams manage an increasingly complex security landscape.
More than one million customers, including over 700,000 who use four or more of Microsoft’s security products, like Arrow Electronics, DXC Technology, Freeport-McMoRan, Insight Enterprises, JB Hunt and The Mosaic Company.
In per-user business, the enterprise mobility and security installed base grew 11% to more than 268 million seats. In the on-premises server business, revenues increased 3% (up 2% at cc), primarily driven by better-than-expected demand related to Windows Server 2012 end of support.
Enterprise Services revenues increased 1%, driven by growth in Enterprise Support Services and Industry Solutions.
More Personal Computing segment, which primarily comprises Windows, Gaming, Devices and Search businesses, contributed 27.2% to total revenues. Revenues increased 19% year over year (up 18% at cc) to $16.9 billion and beat the Zacks Consensus Estimate by 0.76%. The growth included 15 points of net impact from the Activision acquisition.
Windows OEM revenues increased 11% year over year, ahead of expectations, driven by slightly better performance in higher monetizing consumer markets.
Windows Commercial products and cloud services revenues grew 9% (up 7% at cc) due to lower in-period revenue recognition from the mix of contracts. Devices revenues decreased 9% (down 10% at cc).
Usage of cloud-delivered Windows increased more than 50% year over year. Windows 11 commercial deployments increased 2X year over year as companies like HPE and Petrobas rolled out the operating system to employees.
Search and news advertising revenues, excluding traffic acquisition costs, increased 8% (up 7% at cc), driven by higher search volume offset by the negative impact of a third-party partnership.
Gaming revenues grew 49% (up 48% at cc), with 44 points of net impact from the Activision acquisition. Total Gaming revenues were in line with expectations as stronger-than-expected performance from Activision was offset by the weaker-than-expected console market.
Xbox content and services revenues increased 60% (up 61% at cc), driven by 55 points of net impact from the Activision acquisition. Xbox hardware revenues increased 3% (up 1% at cc).
Operating Results
Gross profit increased 20.2% year over year to $42.3 billion. The gross margin expanded 150 basis points (bps) to 68.4% on a year-over-year basis. Microsoft Cloud’s gross margin percentage was 72%, relatively unchanged year over year.
Operating expenses rose 3.4% year over year to $15.3 billion, with 11 points from the Activision acquisition. The Activision impact includes $550 million from purchase accounting adjustments, integration and transaction-related costs.
Operating income of $27 billion increased 33% and 25% on a non-GAAP basis (up 23% at cc). The operating margin expanded 490 bps on a year-over-year basis to 43.6%.
Productivity & Business Process operating income rose 25.8% to $10.28 billion, beating the Zacks Consensus Estimate by 7.6%.
Intelligent Cloud operating income increased 39.9% to $12.46 billion, beating the consensus mark by 10.48%.
More Personal Computing’s operating income increased 29.1% to $4.28 billion, which missed the consensus mark by 16.82%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, Microsoft had total cash, cash equivalents and short-term investments balance of $81.01 billion compared with $143.9 billion as of Sep 30, 2023.
As of Dec 31, 2023, long-term debt (including the current portion) was $47.1 billion compared with $67.7 billion as of Sep 30, 2023.
Operating cash flow during the reported quarter was $18.9 billion compared with $30.5 billion in the previous quarter. Free cash flow during the quarter was $9.1 billion, up 86% year over year.
In the reported quarter, the company returned $8.4 billion to shareholders in the form of share repurchases ($4 billion) and dividends payouts ($5.57 billion).
Guidance
For the fiscal third quarter, Microsoft expects the cost of revenues between $18.6 billion and $18.8 billion and operating expenses to grow in the $15.8-$15.9 billion range. Other income and expenses are expected to be roughly $(600) million.
The company expects revenue growth in the productivity and business processes segment between $19.3 billion and $19.6 billion.
MSFT expects Office 365 Commercial revenue growth to be roughly 15% at cc. Office Commercial products revenues are expected to decline in the low 20s.
In Office Consumer products and cloud services, Microsoft expects revenue growth in the mid-to-high single digits. For LinkedIn, the company expects revenue growth in the mid-to-high single digits. In Dynamics, Microsoft expects revenue growth in the mid-teens.
For Intelligent Cloud, Microsoft anticipates revenues between $26 billion and $26.3 billion.
In Azure, Microsoft expects revenue growth at cc to remain stable in the fiscal second quarter. In Enterprise Services, revenues are expected to decline 10%. The company expects Server revenue growth in the mid-to-high single digits.
For More Personal Computing, the company projects revenues between $14.7 billion and $15.1 billion. It expects Windows OEM revenues to remain relatively flat year over year.
In Gaming, this Zacks Rank #3 (Hold) company expects revenue growth in the low 40s. This includes roughly 45 points of net impact from the Activision acquisition. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Microsoft expects Xbox content and services revenue growth in the mid to high 50s, driven by roughly 50 points of net impact from the Activision acquisition.
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https://www.zacks.com/stock/news/2218832/microsoft-msft-q2-earnings-revenues-beat-on-cloud-strength?-revenues-beat-on-cloud-strength
| 2024-01-31T17:05:57Z
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Cencora, Inc. (COR - Free Report) reported first-quarter fiscal 2024 adjusted earnings per share (EPS) of $3.28, which beat the Zacks Consensus Estimate of $2.86 by 14.7%. The bottom line also improved 21% year over year.
GAAP EPS was $2.98, up 27.9% from that reported in the year-ago period.
Revenue Details
Revenues totaled $72.3 billion, up 15% year over year. The top line beat the Zacks Consensus Estimate by 5.1%.
Segmental Analysis
U.S. Healthcare Solutions
Revenues in this segment totaled $65.2 billion, up 15.9% on a year-over-year basis. This improvement was due to overall market growth and increased specialty product sales. High demand for the recently approved GLP-1 drugs for diabetes and/or weight loss has helped accelerate growth during the quarter. A rising demand for COVID-19 vaccines also boosted sales.
Segmental operating income totaled $698.1 million, up 22% year over year. Higher gross profit (including fees earned from the distribution of government-owned COVID-19 treatments and gross profit on sales to specialty physician practices) contributed to the upside.
International Healthcare Solutions
This segment includes Alliance Healthcare, World Courier, Innomar and Profarma Specialty.
Revenues totaled $7.1 billion, up 6.9% year over year on the back of increased sales in its European distribution and Canadian businesses. The top line increased 8.7% at constant currency (cc).
Operating income totaled $187.6 million, up 16.3% reportedly and 20.2% at cc. The strong growth was driven by the addition of products, along with the acquisition of PharmaLex last year and strong Canadian business performance. The upside was partially offset by higher information technology expenses in COR’s European distribution business and loss of sales from its divested business in Egypt.
Margin Analysis
Cencora reported an adjusted gross profit of $2.39 billion, up 12.5% on a year-over-year basis. As a percentage of revenues, the adjusted gross margin was 3.31%, down 7 basis points (bps) year over year.
The company recorded an adjusted operating income of $885.7 million, up 20.7% year over year. The metric was up 21.6% at cc. As a percentage of revenues, the adjusted operating margin was 2.08%, which contracted 13 bps from the year-ago quarter’s number.
Financial Position
COR exited the fiscal first quarter with cash and cash equivalents worth $2.87 billion compared with $2.59 billion in the prior quarter.
Cumulative net cash used in operating activities totaled $885.2 million compared with $710.1 million in the year-ago period.
Dividend Update
During the quarter, Cencora's board of directors declared a quarterly dividend of 51 cents per share, payable on Feb 26, 2024, to shareholders of record at the close of business on Feb 9, 2024.
Fiscal 2024 Guidance
The company raised its outlook for fiscal 2024 earnings and revenues.
Adjusted EPS is now estimated in the range of $13.25-$13.50 (previously $12.70-$13.00), indicating growth of 10.5-12.6% over the fiscal 2023 level. The Zacks Consensus Estimate for the same is currently pegged at $12.88.
Revenues are now projected to increase 10-12%, reportedly as well as at cc, up from the previous guided range of 7-10%. The top line at the U.S. Healthcare Solutions segment is now expected to grow 11-13% (previously 7-10%). Revenues at the International Healthcare solutions business are estimated to be up 4-8%.
Adjusted operating income is expected to improve 8-10%, up from the previous expectation of 4-6%. Excluding contributions related to COVID-19 and currency fluctuations, the figure is projected to increase 11-13%, up from the previous guided range of 7-9%.
Operating income at the U.S. Healthcare Solutions segment is now anticipated to grow 9-11% (previously 4-7%). For the International Healthcare Solutions segment, the company's revised guidance for the metric is 5-8% (previously 1-4%).
Summing Up
Cencora exited the fiscal first quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark by a significant margin. Shares of Cencora rose 2.8% in pre-market trading following the results. Over the past year, the company has gained 30.5% against a 6% decline of the industry. The S&P 500 has witnessed 21.5% growth in the said time frame.
Image Source: Zacks Investment Research
The company continues to witness a strong segmental performance due to growth in all markets and strong demand for specialty products, especially GLP-1 drugs. A recovery in demand for COVID-19 vaccines buoys optimism.
Per management, Cencora delivered a solid performance by playing a crucial role in the healthcare system while maintaining efficiency throughout its business. The company remains focused on its strategic priorities and thoughtful capital deployment to deliver long-term growth.
However, COR’s gross margin is being hurt by lower-margin GLP-1 drugs. The company’s rising expenses to support business activities amid inflationary challenges are putting pressure on the operating margin. Cut-throat competition in the MedTech space remains a concern.
Zacks Rank
Cencora currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-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 at present, has an estimated growth rate of 4.4% for 2024. UHS’s earnings surpassed estimates in each of 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 risen 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 growth rate is 11.2%.
Acadia’s shares have risen 11.7% in the past six months against the industry’s decline of 5%.
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https://www.zacks.com/stock/news/2218833/cencora-cor-beats-on-q1-earnings-revenues-ups-2024-outlook?-revenues,-ups-2024-outlook-
| 2024-01-31T17:06:03Z
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The Boeing Company (BA - Free Report) incurred an adjusted loss of 47 cents per share in fourth-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 72 cents. The bottom line also improved from the year-ago quarter’s reported loss of $1.75 per share.
Including one-time items, the company reported a GAAP loss of 4 cents per share, narrower than the year-ago quarter’s reported loss of $1.06.
For 2023, the company reported an adjusted loss of $5.81 per share, which came in narrower than the Zacks Consensus Estimate of a loss of $5.99. The full-year bottom line also improved from the previous year’s reported loss of $11.06 per share.
Revenues
Boeing’s revenues amounted to $22.02 billion, which beat the Zacks Consensus Estimate of $21.23 billion by 3.7%. The top line also rose 10.2% from the year-ago quarter’s reported figure of $19.98 billion. This improvement was driven by higher year-over-year revenues registered by the company’s three business units.
For 2023, the company generated revenues of $77.79 billion, which surpassed the consensus estimate of $77 billion. The full-year revenues also improved 17% from the 2022 reported figure.
Total Backlog
Backlog at the end of the fourth quarter totaled $520.19 billion, up from $469.18 billion recorded at the end of third-quarter 2023.
Segmental Performances
Commercial Airplane: Revenues in this segment increased 13% year over year to $10.48 billion, driven by higher jet deliveries and a favorable mix. The segment generated an operating income of $41 million, indicating an improvement from the year-ago quarter’s reported operating loss of $603 million.
During the quarter under review, Boeing delivered 157 commercial planes, up 3.3% year over year.
The backlog for this segment remained healthy, with more than 5,600 airplanes valued at $441 billion.
Boeing Defense, Space & Security (BDS): The segment recorded revenues of $6.75 billion, indicating a year-over-year improvement of 9%. It incurred an operating loss of $101 million, indicating a deterioration from the year-ago quarter’s reported operating income of $112 million.
BDS recorded a backlog of $59 billion, 29% of which comprised orders from international clients.
Global Services: Revenues in this segment improved 6% year over year to $4.85 billion, driven by higher commercial volume. This unit generated an operating income of $842 million compared with $634 million in the prior-year quarter.
Boeing Capital Corporation (BCC): This segment reported negative quarterly revenues of $58 million compared with negative revenues of $39 million in the fourth quarter of 2022.
Financial Condition
Boeing exited fourth-quarter 2023 with cash and cash equivalents of $12.69 billion, and short-term and other investments of $3.27 billion. At the end of 2022, the company had cash and cash equivalents of $14.61 billion and short-term and other investments of $2.61 billion. Long-term debt amounted to $47.10 billion, down from $51.81 billion recorded at the end of 2022.
The company’s operating cash flow as of Dec 31, 2023, was $5,960 million compared with $3,512 million at the end of 2022.
Free cash flow totaled $4.43 billion at the end of 2023 compared with $2.29 billion at the end of 2022.
Zacks Rank
Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Q4 Defense Releases
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
The company’s net sales were $18.87 billion, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2023 adjusted earnings per share (EPS) of $1.29 beat the Zacks Consensus Estimate of $1.25 by 3.2%. The bottom line also improved 1.6% from the year-ago quarter’s level of $1.27.
RTX’s fourth-quarter adjusted sales totaled $19,824 million. The company reported GAAP sales of $19,927 million compared with $18,093 million in the fourth quarter of 2022.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 4.6%. The bottom line also improved 30.1% from the year-ago quarter’s recorded figure.
The company reported total revenues of $3,892 million, which missed the Zacks Consensus Estimate of $3,917.6 million by 0.7%. However, the reported figure increased 7% from the year-ago quarter’s level of $3,636 million.
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https://www.zacks.com/stock/news/2218834/boeings-ba-q4-earnings-beat-estimates-revenues-rise-yy
| 2024-01-31T17:06:09Z
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UDR Inc. (UDR - Free Report) , a premier multifamily real estate investment trust (REIT), is set to announce its fourth-quarter and full-year 2023 results after the closing bell on Feb 6. Its quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Denver, CO-based residential REIT came up with FFO as adjusted per share of 63 cents, in line with the consensus mark. Quarterly results reflected year-over-year growth in revenues. UDR also benefited from past accretive external growth investments. However, a rise in interest expenses acted as a dampener.
In the last four quarters, UDR’s FFO as adjusted per share met the Zacks Consensus Estimate on two occasions for as many misses, the average negative surprise being -0.81%. The graph below depicts the surprise history of the company:
Let’s see how things have shaped up before this announcement.
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
UDR owns a geographically diverse portfolio with a superior product mix of A/B quality properties in urban and suburban markets. The company’s portfolio comprises properties throughout the United States, including both coastal and Sunbelt locations, with a good mix of urban and suburban communities.
UDR’s technological investments and process enhancements are expected to have helped enhance cost control and aided margin expansion via its Next Generation Operating Platform. The platform allows the company to electronically interact with and provide service to residents, aiding its business prospects. Its healthy balance sheet position is likely to have boosted its growth endeavors.
However, the elevated supply of rental units in some of its markets may have increased competition and partly limited rent growth, casting a pall on the company’s quarterly performance to a certain extent. In addition, a high interest rate environment is likely to have acted as a spoilsport.
Per the company’s November Investor Presentation, UDR noted that it enjoyed 96.8% average occupancy in October, up from 96.7% in the third quarter of 2023. UDR experienced blended lease rate growth of around 0.5% through Nov 10, while the resident turnover was lower on a year-over-year basis for the sixth consecutive month in October.
The Zacks Consensus Estimate for quarterly revenues is currently pegged at $409.41 million. This indicates a 2.76% year-over-year rise.
For the fourth quarter, we estimate same-store physical occupancy at 96.6%. Moreover, our estimate for same-store net operating income growth is currently pegged at 2.8%. We expect interest expenses to grow 8.9% year over year in the fourth quarter.
UDR projected fourth-quarter 2023 FFO as adjusted per share in the range of 62-64 cents.
Before the fourth-quarter earnings release, the company’s activities were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO as adjusted per share has remained unchanged at 63 cents in the past month. However, this suggests year-over-year growth of 3.28%.
For the full year 2023, UDR expected FFO as adjusted per share in the range of $2.46-$2.48. This is based on the company’s projection of year-over-year growth in same-store cash revenues of 5.4-5.9% and same-store NOI growth in the range of 6-6.5%.
For the full year, the Zacks Consensus Estimate for FFO as adjusted per share is pegged at $2.47. The figure indicates a 6.01% increase year over year on 6.93% year-over-year growth in revenues to $1.62 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for UDR 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.
UDR currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are three stocks from the broader REIT sector — Welltower Inc. (WELL - Free Report) , VICI Properties Inc. (VICI - Free Report) and Kimco Realty Corporation (KIM - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Welltower is slated to report quarterly numbers on Feb 13. WELL has an Earnings ESP of +0.80% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
VICI Properties, scheduled to report quarterly numbers on Feb 22, has an Earnings ESP of +2.16% and carries a Zacks Rank of 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.
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United Dominion Realty Trust, Inc. (UDR) - free report >>
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https://www.zacks.com/stock/news/2218835/udr-readies-to-report-q4-earnings-whats-in-the-offing?
| 2024-01-31T17:06:15Z
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Hawaiian Holdings (HA - Free Report) posted fourth-quarter 2023 loss (excluding 41 cents from non-recurring items) of $2.37 per share, wider than the Zacks Consensus Estimate of a loss of $2.35. In the year-ago quarter HA posted a loss of $1.06.
Quarterly revenues of $669.1 million fell 8.5% year over year but met the Zacks Consensus Estimate. Quarterly revenues were hurt by a devastating wildfire in Lahaina in West Maui, which, in turn, affected traffic.
Notably, passenger revenues accounted for 89.9% of the top line in fourth-quarter 2023.
Scheduled airline traffic (measured by revenue passenger miles) increased 5.9% year over year, lower than our anticipation of 16.2%. Scheduled capacity (measured in available seat miles or ASM) rose 3.4% year over year to 5.1 billion, lower than our projection of 4.2%. Passenger load factor (percentage of seats filled by passengers) improved to 82.7% from 80.8% reported a year ago. The actual jump was smaller than our forecast of 90.1%.
Passenger revenue per ASM or PRASM decreased to 11.79 cents, witnessing a year-over-year fall of 10.7%. Operating revenue per ASM (RASM) fell by 11.4% on a year-over-year basis.
Average fuel cost per gallon (economic) decreased 10% year over year to $2.98 in the fourth quarter. Operating cost per ASM or CASM, excluding aircraft fuel and non-recurring items, inched down 1% year over year to 15.30 cents at fourth-quarter 2023 end.
Liquidity
As of Dec 31, 2023, the company had unrestricted cash, cash equivalents and short-term investments of $0.9 billion, and outstanding debt and finance lease obligations of $1.7 billion.
Q1 2024 Outlook
RASM is expected to go down to 1-2% from first-quarter 2023 figures.
Capacity is anticipated to increase 2.5-5.5% from the year-ago levels.
Costs per ASM (excluding fuel & non-recurring items) are suggested to climb 8-11% (non-GAAP figures) from the prior-year levels.
Gallons of jet fuel consumed are forecast to rise 4-7% from the year-earlier levels.
The effective tax rate is envisioned to be around 21%.
Fuel price per gallon is expected to be $2.71 by the end of first-quarter 2024.
2024 Outlook
The below expectations are in comparison with full-year 2023 actuals.
Gallons of jet fuel consumed are now suggested to increase 4-7%.
Fuel price per gallon is anticipated to be $2.59.
ASMs are now expected to improve 6-9%.
Capital Expenditure is still projected in the range of $500-$550 million.
Hawaiian Holdings currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 earnings of $1.47 per share 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 revenues, fell 6% year over year.
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, 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.
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https://www.zacks.com/stock/news/2218836/hawaiian-holdings-ha-reports-wider-than-expected-loss-in-q4
| 2024-01-31T17:06:22Z
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Cboe Global Markets, Inc. (CBOE - Free Report) is slated to report fourth-quarter 2023 earnings on Feb 2, before the opening bell. CBOE beat earnings in each of the last four quarters, the average surprise being 4.07%.
Factors to Consider
Higher volumes and increased demand for data and access solutions are likely to have aided the fourth-quarter performance of Cboe Global.
Improved transaction fees, driven by higher volumes traded, market data fees, access and capacity fees and regulatory fees, as well as the contribution from acquisitions, are likely to have favored the company’s top line in the fourth quarter. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $505 million, indicating an increase of 10.5% from the year-ago reported figure.
Data and access revenues are likely to have benefited from an increase in access and capacity fees and proprietary market data fees.
Market data revenues are likely to have been aided by increases in proprietary market data fees in the Options and Europe and Asia Pacific segments.
Access and capacity fees are likely to have been aided by a rise in physical port fees in the North American Equities, Options and Europe and Asia Pacific segments and increased logical port fees in the Europe and Asia Pacific and North American Equities segments, both driven by increases in subscribers and pricing.
The Zacks Consensus Estimate for fourth-quarter market data fees and access and capacity fees is pegged at $77 million and $90 million, indicating growth of 7% and 8.4%, respectively, from the prior-year quarter’s reported figure. Our estimate for market data revenues is pegged at $72.3 million, while the same for access and capacity fees is pegged at $89 million.
Cboe Global is likely to have benefited from strong proprietary products, VIX futures, VIX and SPX options. Also, the company expects to witness solid growth in multi-listed options trading.
CBOE estimates interest expense in the range of $11-$12 million in the to-be-reported quarter.
Continued share buybacks are likely to have aided the bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $2.02, indicating an increase of 12.2% from the prior-year quarter’s reported figure.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Cboe Global Markets 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.
Earnings ESP: Cboe Global has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at $2.02. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CBOE carries a Zacks Rank of 2 at present.
Stocks to Consider
Some stocks worth considering from the finance sector with the perfect combination of elements to surpass estimates this reporting cycle are as follows:
CME Group Inc. (CME - Free Report) has an Earnings ESP of +0.01% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for CME’s fourth-quarter 2023 earnings is pegged at $2.27 per share, indicating an increase of 18.2% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
CME’s earnings beat estimates in each of the four trailing quarters.
Coinbase Global, Inc. (COIN - Free Report) has an Earnings ESP of +166.67% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 loss per share is pegged at 6 cents per share, indicating an increase of 97.5% from the year-ago reported figure.
COIN’s earnings beat estimates in three of the last four quarters and missed in the one.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94 per share, indicating a decline of 9.3% from the year-ago reported figure.
ACGL’s earnings beat estimates in each of the four trailing quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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https://www.zacks.com/stock/news/2218837/whats-in-store-for-cboe-global-cboe-this-earnings-season?
| 2024-01-31T17:06:28Z
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Vale S.A. (VALE - Free Report) reported iron ore production of 89.4 million tons (Mt) for the fourth quarter of 2023, which was up 11% year over year. The overall iron ore production for 2023 was around 321 Mt in 2023, marking a 4.3% rise from the 2022 figure. Surpassing the company's projected range of 310-320 Mt, this improvement can be attributed to Vale's persistent efforts to enhance asset reliability at the S11D mine, strong performances at the Itabira and Vargem Grande complexes, and increased third-party purchases.
Pellets production rose 19% year over year to 9.9 Mt in the fourth quarter. Iron ore fines and pellet sales were flat compared with the year-ago quarter at 88.2 Mt in the fourth quarter.
The average realized iron ore fines price was $118.3 per ton in the fourth quarter, up 23.7% year over year and 12.6% sequentially, mainly due to higher benchmark iron ore prices and a positive impact from forward price adjustments.
Copper Output Up, Nickel Lags
In the fourth quarter of 2023, Vale produced 99.1 kt of copper, which marked a 49.5% year-over-year growth, thus benefiting from the steady ramp-up of Salobo III as well as better performance of Sossego’s plant. Production at the Salobo complex surged 87% year over year in the quarter. Vale sold 97.5 kt of copper, which was up 36.2% from the year-ago quarter.
Copper production for 2023 was up 29% year over year to 326.6 kt. Vale’s copper production guidance for 2023 was 315-325 kt. Copper sales recorded for the year were 307.8 kt, up 26% from 2022.
Production of nickel declined 5.3% year over year to 44.9kt in the October-December period. This was due to the ongoing transitioning of Voisey’s Bay mine to underground operations as well as the planned furnace rebuild at Onça Puma. Nickel sales were recorded at 47.9 kt, down 17.7% from the year-ago comparable quarter’s figure.
In 2023, the total production of nickel was recorded at 164.9 kt, which was down 7.9% year over year. VALE had expected nickel production in 2023 to be between 160 kt and 175 kt. Nickel sales were down 7% year over year to 167.9 kt.
Guidance for 2024
The company’s iron ore production guidance for 2024 is 310-320 Mt. The copper production guidance is 320-355 kt. VALE expects nickel production in 2023 to be between 160 kt and 175 kt. Pellets production is projected to be between 38 Mt and 42 Mt for 2024.
Peer Performance
Rio Tinto Group (RIO - Free Report) recently reported a 2% decrease in fourth-quarter 2023 iron ore production to 87.5 Mt. Iron production was 331.8 Mt in 2023, up 2% from the prior year, aided by its efforts to improve productivity, supported by the ongoing implementation of the Safe Production System and the ramp up at Gudai-Darri. Copper output for the year was 620 Kt, up 2% year over year.
RIO expects Pilbara iron ore shipments (100% basis) between 323 Mt and 338 Mt in 2024. The midpoint of the range indicates a year-over-year dip of 0.4%.
BHP Group’s (BHP - Free Report) iron ore production dipped 2% year over year to 65.8 Mt in the quarter ended Dec 31, 2023. In the six-month ended Dec 31, 2023 iron ore production was down 2% to 129 Mt. The company witnessed lower production at Western Australia Iron Ore (WAIO), due to the continued tie-in activity for the Rail Technology Program and the impacts of the ongoing ramp-up of the Central Pilbara hub.
BHP witnessed year-over-year improvement in the output for copper, nickel and energy coal, while metallurgical coal was down in the first half of fiscal 2024.
BHP’s iron ore production guidance for fiscal 2024 is 254 – 264.5 Mt. WAIO's production is expected between 250 Mt and 260 Mt (282 Mt and 294 Mt on a 100% basis).
Price Performance
Shares of Vale have declined 25% in a year compared with the industry's 24.4% fall.
Image Source: Zacks Investment Research
Zacks Rank & a Stock to Consider
Vale currently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the Basic Materials space is Cameco Corporation (CCJ - Free Report) , which sports 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 12.5% upward in the past 60 days. The stock is up around 68.1% in a year.
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https://www.zacks.com/stock/news/2218849/vales-vale-q4-iron-ore-copper-output-up-yy-nickel-lags?-copper-output-up-y/y,-nickel-lags
| 2024-01-31T17:06:34Z
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Heartland Express (HTLD - Free Report) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of a loss of $0.10 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 160%. A quarter ago, it was expected that this trucking and logistics company would post earnings of $0.07 per share when it actually produced a loss of $0.14, delivering a surprise of -300%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Heartland Express
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.
Heartland Express shares have lost about 7.2% since the beginning of the year versus the S&P 500's gain of 3.3%.
What's Next for Heartland Express?
While Heartland Express 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 Heartland Express: unfavorable. 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 #5 (Strong Sell) for the stock. So, the shares are expected to underperform 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 -$0.05 on $287.34 million in revenues for the coming quarter and $0.18 on $1.25 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, Transportation - Truck is currently in the bottom 6% 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.
Saia (SAIA - 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 February 2.
This trucking company is expected to post quarterly earnings of $3.19 per share in its upcoming report, which represents a year-over-year change of +20.4%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level.
Saia's revenues are expected to be $746.26 million, up 13.8% from the year-ago quarter.
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https://www.zacks.com/stock/news/2218850/heartland-express-htld-tops-q4-earnings-estimates
| 2024-01-31T17:06:40Z
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January Jobs Week continues this morning, even as we’re only just closing out the month today. Private-sector payrolls reported by Automatic Data Processing (ADP - Free Report) came in below estimates: 107K versus 150K expected, and beneath the previous month’s downwardly revised 158K. We’ve now spent a full six months sub-200K private-sector job gains per month. Typically, the breakdown was 30K new private-sector jobs in goods producing and 77K in services.
Based on company size, small firms (fewer than 50 employees) gained +25K new jobs in the private sector this month, while large companies (500 or more employees) grew +31K. Medium-sized employers led the month with 61K new private-sector hires. Unsurprisingly, Leisure & Hospitality led all industries with +28K new jobs filled (many times lower than we were seeing from this sector a couple years ago), followed by Trade/Transportation/Utilities at +23K and Construction +22K. Interestingly, Info Tech dropped -9K for the month — though this aligns with reported layoffs at Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Salesforce (CRM - Free Report) , among others.
Another aspect of this ADP data is in its recent tracking of wage growth among employees who stay at their current jobs versus those who find employment elsewhere: these figures are +5.2% and +7.2%, the lowest they’ve been since the waning months of the Covid pandemic. These are the kinds of data points the Fed is looking for, by the way, when it decides on whether to cut interest rates based on disinflationary economic data.
Speaking of the Fed, its latest Federal Open Market Committee (FOMC) meeting concludes this afternoon, with a new statement released on interest rate policy. Virtually no one expects to see a move from the 5.25-5.50% Fed funds rate that has been in effect since late July 2023. This will be followed by a press conference and Q&A with Fed Chair Jerome Powell in the 1pm hour ET. It will be interesting to hear the Fed’s forecast based on this modestly shrinking labor market results from ADP this morning.
Meanwhile, Boeing (BA - Free Report) outperformed expectations in its Q4 earnings report this morning, to -$0.47 per share from -$0.72 expected (and the -$1.75 per share reported in the year-ago quarter). However, the aerospace major has suspended forward guidance for 2024, based on the fate of its 737 MAX fleet, which saw a fuselage panel blowout on a recent flight. We’re also four years into the tenure of CEO Dave Calhoun (who took over following two 737 MAX crashes in late 2018 and early 2019), where Boeing has reported 10 earnings misses in the past 14 quarters. Shares are up nearly +2% on the Q4 news.
Diabetes and weight-loss drug specialist Novo Nordisk (NVO - Free Report) , the Denmark-based maker of Ozempic, Rybelsus, Wegovy and many others, also outperformed expectations on both top and bottom lines: earnings of 71 cents per share outpaced the Zacks consensus by 5 cents (and well above the 42 cents per share reported in the year-ago quarter), while revenues of $9.51 billion swept past the $9.14 billion analysts were looking for. Ozempic rose +85% in the quarter, while weight-loss treatments Saxenda and Wegovy together grew +114% in the quarter. Shares are up +2.3% on the news in today’s pre-market. For more on NVO’s earnings, click here.
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https://www.zacks.com/stock/news/2218851/adp-cools-to-107k-private-sector-jobs-ba-nvo-beat-in-q4
| 2024-01-31T17:06:46Z
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Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein both earnings and revenues beat their respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago quarter’s reading on a reported basis as well as at cc.
Segments
Employer Services’ revenues of $2.9 billion increased 8% on a reported basis and 7% at cc. The figure met our estimate. Pays per control increased 2% from the year-ago quarter’s reading.
PEO Services’ revenues were up 3% year over year to $1.54 billion and beat our estimate of $1.53 billion for the first quarter. Average worksite employees paid by PEO Services were 725,000, up 2% from the year-ago quarter’s figure.
Interest on funds held for clients increased 20% to $225 million and beat our estimate of $222 million. ADP’s average client funds balance decreased 2% to $32.6 billion. Average interest yield on client funds expanded 50 basis points to 2.8%.
Margins
Adjusted EBIT increased 7% from the year-ago quarter’s reading to $1.1 billion. Adjusted EBIT margin grew 20 basis points (bps) to 24.6%.
The margin of Employer Services increased 170 bps while PEO Services declined 50 bps.
Balance Sheet and Cash Flow
ADP exited second-quarter fiscal 2024 with cash and cash equivalents of $1.64 billion compared with $2.08 billion in the prior quarter. Long-term debt of $2.99 billion was flat sequentially.
Automatic Data Processing generated $1.03 billion in cash from operating activities in the quarter. Capital expenditures amounted to $54.8 million.
Fiscal 2024 Outlook
ADP still expects revenues to register 6-7% growth. Adjusted EPS is expected to register 10-12% growth. The adjusted effective tax rate is estimated to be approximately 23%. Adjusted EBIT margin is expected to grow 60-70 bps, down from the previously guided 60-80 bps.
Automatic Data Processing expects Employer Services revenues to grow at a rate of about 7-8%, while PEO Services revenues are expected to grow 3-4%.
Currently, ADP carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter's figure 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, totaled $1.77 billion, up 13% year over year.
Xerox Holdings Corporation (XRX - Free Report) reported lower-than-expected fourth-quarter 2023 results, wherein both earnings and revenues declined from the year-ago quarter's level. Despite the earnings miss, the stock rose 5% since the company’s earnings release on Jan 25.
Adjusted EPS of 43 cents missed the Zacks Consensus Estimate by 15.7% and decreased 51.7% year over year. Total revenues of $1.77 billion lagged the consensus mark by 1.6% and decreased 9.1% year over year on a reported basis. Revenues declined 7.4% at cc.
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https://www.zacks.com/stock/news/2218852/automatic-data-processing-adp-q2-earnings-beat-estimates
| 2024-01-31T17:06:53Z
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LCNB (LCNB - Free Report) came out with quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -5.56%. A quarter ago, it was expected that this holding company for LCNB National Bank would post earnings of $0.40 per share when it actually produced earnings of $0.37, delivering a surprise of -7.50%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
LCNB
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.
LCNB shares have lost about 0.8% since the beginning of the year versus the S&P 500's gain of 3.3%.
What's Next for LCNB?
While LCNB 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 LCNB: 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 $0.40 on $20.8 million in revenues for the coming quarter and $1.67 on $89.2 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 - Northeast is currently in the top 40% 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.
Isabella Bank Corporation (ISBA - Free Report) , another stock in the same industry, has yet to report results for the quarter ended December 2023.
This company is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -16.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Isabella Bank Corporation's revenues are expected to be $20.8 million, up 6.5% from the year-ago quarter.
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https://www.zacks.com/stock/news/2218856/lcnb-lcnb-q4-earnings-miss-estimates
| 2024-01-31T17:06:59Z
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For the quarter ended December 2023, Boston Scientific (BSX - Free Report) reported revenue of $3.73 billion, up 14.9% over the same period last year. EPS came in at $0.55, compared to $0.45 in the year-ago quarter.
The reported revenue represents a surprise of +3.77% over the Zacks Consensus Estimate of $3.59 billion. With the consensus EPS estimate being $0.51, the EPS surprise was +7.84%.
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 Boston Scientific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net Sales- Cardiovascular- Interventional Cardiology Therapies- United States: $188 million versus $176.49 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.8% change.
- Geographic Revenue- U.S. $2.21 billion versus $2.13 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change.
- Net Sales- Cardiovascular- Peripheral Interventions- United States: $292 million versus $282.94 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9.8% change.
- Net Sales- Cardiovascular- Peripheral Interventions- International: $242 million compared to the $248.69 million average estimate based on four analysts. The reported number represents a change of +15.2% year over year.
- Net Sales- MedSurg- Worldwide: $1.44 billion versus $1.40 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +11.1% change.
- Net Sales- Cardiovascular- Worldwide: $2.29 billion versus $2.19 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +14% change.
- Net Sales- Cardiovascular- Cardiology- Worldwide: $1.75 billion compared to the $1.66 billion average estimate based on seven analysts. The reported number represents a change of +14.5% year over year.
- Net Sales- Cardiovascular- Peripheral Interventions- Worldwide: $533 million versus $529.05 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +12% change.
- Net Sales- MedSurg- Endoscopy- Worldwide: $645 million versus $637.11 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +13% change.
- Net Sales- MedSurg- Neuromodulation- Worldwide: $269 million versus $257.49 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +8% change.
- Net Sales- MedSurg- Urology- Worldwide: $527 million compared to the $506.68 million average estimate based on seven analysts. The reported number represents a change of +10.5% year over year.
- Net Sales- Cardiovascular- Interventional Cardiology Therapies- Worldwide: $614 million versus $584.77 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +9.5% change.
Shares of Boston Scientific have returned +6.2% over the past month versus the Zacks S&P 500 composite's +3.3% 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/2218857/boston-scientific-bsx-q4-earnings-taking-a-look-at-key-metrics-versus-estimates
| 2024-01-31T17:07:05Z
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For the quarter ended December 2023, Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) reported revenue of $4.46 billion, up 14.8% over the same period last year. EPS came in at $1.00, compared to $0.71 in the year-ago quarter.
The reported revenue represents a surprise of +12.36% over the Zacks Consensus Estimate of $3.97 billion. With the consensus EPS estimate being $0.75, the EPS surprise was +33.33%.
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 Teva Pharmaceutical Industries Ltd. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Geographic Revenue- International Markets: $502 million compared to the $475.60 million average estimate based on four analysts. The reported number represents a change of +4.2% year over year.
- Geographic Revenue- North America: $2.37 billion versus $2.04 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +18.1% change.
- Geographic Revenue- North America- COPAXONE: $78 million versus the four-analyst average estimate of $75.07 million. The reported number represents a year-over-year change of -22.8%.
- Geographic Revenue- North America- BENDEKA / TREANDA: $53 million versus the four-analyst average estimate of $49.38 million. The reported number represents a year-over-year change of -29.3%.
- Geographic Revenue- North America- AUSTEDO: $408 million versus the four-analyst average estimate of $422.38 million. The reported number represents a year-over-year change of +18.6%.
- Geographic Revenue- North America- Anda: $394 million versus the four-analyst average estimate of $450.39 million. The reported number represents a year-over-year change of -12.4%.
- Geographic Revenue- Europe- COPAXONE: $56 million compared to the $45.16 million average estimate based on four analysts. The reported number represents a change of -8.2% year over year.
- Geographic Revenue- Europe- Respiratory products: $70 million versus the four-analyst average estimate of $72.11 million. The reported number represents a year-over-year change of -6.7%.
- Geographic Revenue- International Markets- Generic products: $420 million versus the four-analyst average estimate of $405.90 million. The reported number represents a year-over-year change of +2.2%.
- Revenue- Other- Total: $913 million compared to the $194.26 million average estimate based on two analysts. The reported number represents a change of +293.5% year over year.
- Revenue- API sales to third parties: $153 million versus $159.44 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -8.9% change.
- Revenue- COPAXONE- Total: $141 million compared to the $139.08 million average estimate based on two analysts. The reported number represents a change of -16.6% year over year.
Shares of Teva Pharmaceutical Industries Ltd. have returned +9.9% over the past month versus the Zacks S&P 500 composite's +3.3% 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/2218858/teva-pharmaceutical-industries-ltd-teva-q4-earnings-taking-a-look-at-key-metrics-versus-estimates
| 2024-01-31T17:07:11Z
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For the quarter ended December 2023, MasterCard (MA - Free Report) reported revenue of $6.55 billion, up 12.6% over the same period last year. EPS came in at $3.18, compared to $2.65 in the year-ago quarter.
The reported revenue represents a surprise of +1.39% over the Zacks Consensus Estimate of $6.46 billion. With the consensus EPS estimate being $3.08, the EPS surprise was +3.25%.
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 MasterCard performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Switched transactions: 38,058 million compared to the 37,553.45 million average estimate based on four analysts.
- Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - Worldwide: $2,352 billion versus $2,368.11 billion estimated by three analysts on average.
- Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - United States: $727 billion versus the three-analyst average estimate of $738.7 billion.
- Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - Latin America: $208 billion versus the three-analyst average estimate of $197.4 billion.
- Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - Europe: $761 billion versus the three-analyst average estimate of $767.88 billion.
- Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - Canada: $68 billion versus the three-analyst average estimate of $69.77 billion.
- Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - Worldwide less United States: $1,625 billion compared to the $1,629.41 billion average estimate based on three analysts.
- Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - APMEA: $587 billion versus the three-analyst average estimate of $594.36 billion.
- Gross dollar volume - All MasterCard Credit and Charge Programs - United States: $382 billion versus the two-analyst average estimate of $389.63 billion.
- Purchase transactions - All MasterCard Credit, Charge and Debit Programs - Worldwide: 35,089 million compared to the 45,129.16 million average estimate based on two analysts.
- Gross dollar volume - All MasterCard Debit Programs - Worldwide: $1,237 billion versus $1,199.01 billion estimated by two analysts on average.
- Gross dollar volume - All MasterCard Debit Programs - Worldwide less United States: $892 billion compared to the $851.1 billion average estimate based on two analysts.
Shares of MasterCard have returned +5.5% over the past month versus the Zacks S&P 500 composite's +3.3% 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/2218859/mastercard-ma-reports-q4-earnings-what-key-metrics-have-to-say
| 2024-01-31T17:07:18Z
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Navient (NAVI - Free Report) reported $193 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 16.8%. EPS of $0.70 for the same period compares to $0.76 a year ago.
The reported revenue represents a surprise of -8.42% over the Zacks Consensus Estimate of $210.76 million. With the consensus EPS estimate being $0.77, the EPS surprise was -9.09%.
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 Navient performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net interest margin, Consumer Lending segment: 2.9% compared to the 2.8% average estimate based on two analysts.
- Net interest margin, Federal Education Loan segment: 0.9% versus the two-analyst average estimate of 0.9%.
- Asset recovery and business processing revenue: $81 million compared to the $86.81 million average estimate based on four analysts.
- Servicing revenue: $16 million versus the four-analyst average estimate of $15.59 million.
- Other income: $6 million versus the four-analyst average estimate of $5.09 million.
- Net interest income (loss)- Federal Education Loans: $88 million compared to the $110.33 million average estimate based on two analysts.
- Non-interest income (loss) / Total other income- Other: -$6 million versus the two-analyst average estimate of $1.04 million.
- Non-interest income (loss) / Total other income- Consumer Lending: $3 million versus the two-analyst average estimate of $3.60 million.
- Non-interest income (loss) / Total other income- Business Processing: $81 million versus $83.13 million estimated by two analysts on average.
- Non-interest income (loss) / Total other income- Federal Education Loans: $17 million compared to the $18.23 million average estimate based on two analysts.
- Total Non Interest Income / Total other income: $62 million versus the two-analyst average estimate of $113.23 million.
- Net Interest Income: $160 million versus the two-analyst average estimate of $209.98 million.
Shares of Navient have returned -2.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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https://www.zacks.com/stock/news/2218860/navient-navi-q4-earnings-how-key-metrics-compare-to-wall-street-estimates
| 2024-01-31T17:07:24Z
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CommScope Holding Company, Inc. (COMM - Free Report) recently upgraded its SYSTIMAX portfolio to launch SYSTIMAX 2.0 to provide improved solutions to better handle the evolving network infrastructure challenges. The portfolio improvement is likely to give the company an edge over other players in the market.
SYSTIMAX solutions have been known for providing high-performance connectivity solutions for data centers, enterprise networks and telecommunications over the past four decades. The brand offers a wide range of structured cabling solutions, including copper and fiber-optic cabling systems for applications such as Ethernet networking. These products, such as fiber-optic cables, connectors and other components, are useful for long-distance high-speed data transmission.
The technology has gained the trust of business enterprises by supporting the critical networking infrastructure. SYSTIMAX 2.0 solutions are expected to carry this legacy forward. The new solutions include copper, fiber, intelligent management, edge architecture and extended reach solutions, all of which are programmed to address the biggest connectivity disruptions faced by core customers.
Apart from featuring SYSTIMAX legacy solutions, the upgraded version has incorporated a few other additions, such as GigaSPEED XL5, VisiPORT, Propel, Constellation and SYSTIMAX Assurance.
GigaSPEED XL5, which is likely to be available in the second quarter of 2024, is a premium solution that supports 2.5/5 GbE applications up to 100 meters. It is ideally designed for multigigabit applications like backhaul for next-gen wireless access points. The VisiPORT patch panels, which are available for immediate installation, are an easy-to-manage solution that monitors the status and capacity of all copper and fiber ports in real time. Intelligent panels and port sensors automatically detect port activity, alerting users to issues such as insufficient capacity, unauthorized patching, device availability and more.
SYSTIMAX Assurance, available immediately, is a 360-degree customer care program that includes all current SYSTIMAX support and adds online training, project installation and onsite design support, 24/7 tech support, monthly newsletters and more.
CommScope is developing additional solutions for the SYSTIMAX portfolio and is planning to launch them in 2024 and 2025, closer to their target availability dates. The company values its partners’ contribution to the success of SYSTIMAX 2.0 solutions and continued portfolio evaluation.
SYSTIMAX 2.0 can serve as a ground-breaking development for CommScope in the technology market. Upon the launch of the new solution, it is expected to witness revenue growth through increased sales, upgrades and expansion of customer base as more and more customers invest in advanced solutions.
The stock has lost 71.5% over the past year compared with the industry’s decline of 54.4%.
Image Source: Zacks Investment Research
CommScope presently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Juniper Networks Inc. (JNPR - Free Report) , sporting a Zacks Rank #1, is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help to build network infrastructure used for services and applications based on a single Internet protocol network worldwide. Juniper offers a broad range of routing, switching and security products.
It delivered an earnings surprise of 6.5%, on average, in the trailing four quarters. Juniper has a long-term earnings growth expectation of 9.9%. It has a VGM Score of A.
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%.
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.
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 cloud experience. Arista delivered an average earnings surprise of 12% 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. It 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/2218862/commscope-comm-augments-portfolio-to-boost-connectivity
| 2024-01-31T17:07:30Z
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Shares of Equity Residential (EQR - Free Report) witnessed a 4.5% gain in the after-hours trading session on Jan 30 after it reported fourth-quarter 2023 normalized funds from operations (FFO) per share of $1.00, which was in line with the Zacks Consensus Estimate. The rental income of $727.5 million narrowly missed the consensus mark of $727.6 million.
Results reflect healthy same-store revenue performance.
On a year-over-year basis, the normalized FFO per share grew 6.4% from 94 cents, with rental income climbing 4%.
According to Mark J. Parrell, Equity Residential’s president and CEO, “We enter 2024 well-positioned to post solid results on the operations side despite expectations of a slowing economy with continuing high employment levels in our target affluent renter demographic and a manageable apartment supply backdrop in our existing predominantly coastal footprint versus oversupplied Sunbelt markets. We are optimistic that in 2024 we will see a variety of favorable opportunities to deploy capital and have a team and a balance sheet well-prepared to do so.”
For the full-year 2023, the normalized FFO per share came in at $3.78, higher than the prior-year tally of $3.52 and beat the Zacks Consensus Estimate of $3.77. This was backed by 5.1% growth in total revenues to $2.87 billion, in line with the Zacks Consensus Estimate.
Quarter in Detail
Same-store revenues were up 3.9% year over year. Same-store expenses flared up 1.3%, and consequently, same-store net operating income (NOI) climbed 5% year over year.
The average rental rate increased 4% year over year to $3,073 in the quarter ended December. Meanwhile, the physical occupancy remained unchanged at 95.8% for the same-store portfolio. Our estimate for the metric was 95.9%.
Same-store residential revenues were up 4% year over year, while expenses increased 1.1%. Consequently, same-store residential NOI expanded 5.4% year over year.
The new lease change for its residential same-store properties was down 4.5%, while the renewal rate achieved by EQR was 5.1% for the fourth quarter. The blended rate for the quarter was 0.8%. The physical occupancy for this portfolio was 95.8%, down 20 basis points sequentially.
In the fourth quarter, Equity Residential did not acquire any operating property. However, it sold three properties in West Coast markets (San Francisco, Seattle and Los Angeles) comprising 499 apartment units for $184.5 million.
Balance Sheet
Equity Residential exited the fourth quarter of 2023 with cash and cash equivalents of $50.7 million, down from the $53.9 million recorded at the end of 2022.
The net debt to normalized EBITDAre was 4.12X, which decreased from 4.24X in the previous quarter. The unencumbered NOI as a percentage of the total NOI was 89.8% in the quarter, which remained unchanged from the prior quarter.
Guidance
For the full-year 2024, Equity Residential projects normalized FFO per share in the band of $3.80-$3.90. The Zacks Consensus Estimate for the same is currently pegged at $3.87.
The company’s full-year guidance incorporates projections for same-store revenue growth of 2.0-3.0%, an expense increase of 3.5-4.5% and an NOI expansion of 1.0-2.6%. Also, physical occupancy is expected at 95.9%.
For the first quarter of 2024, the company projects normalized FFO per share in the band of 88-92 cents. The Zacks Consensus Estimate for the same is currently pegged at 91 cents.
Equity Residential currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Earnings Releases
We now look forward to the earnings releases of residential REITs like AvalonBay Communities, Inc. (AVB - Free Report) , Essex Property Trust, Inc. (ESS - Free Report) and Mid-America Apartment Communities, Inc. (MAA - Free Report) .
While AvalonBay Communities are slated to report results today after market close, Essex Property Trust and Mid-America Apartment Communities are scheduled to come up with their results on Feb 6 and Feb 7, respectively.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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https://www.zacks.com/stock/news/2218864/equity-residential-eqr-q4-ffo-meets-2024-guidance-issued
| 2024-01-31T17:07:36Z
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Swiss pharma giant Novartis AG (NVS - Free Report) reported lower-than-expected results in the fourth quarter of 2023. Core earnings (excluding one-time charges) of $1.53 per share missed the Zacks Consensus Estimate of $1.64. Higher expenses pulled down the bottom line. The figure was, nevertheless, up from $1.39 recorded a year ago.
Revenues of $11.4 billion climbed 8% from the year-ago quarter's level. On a constant currency basis, sales increased 10%, driven by momentum in Entresto, Kesimpta, Kisqali, Cosentyx and Pluvicto. However, sales missed the Zacks Consensus Estimate of $11.7 billion.
Shares are trading down in the pre-market following the results.
Shares of Novartis have risen 2.8% in the past six months compared with the industry’s growth of 11%.
Image Source: Zacks Investment Research
In October 2023, Novartis completed the spin-off of its generic and biosimilar unit, Sandoz, following which the latter became an independent company.
Quarter in Detail
All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.
With the successful spin-off of the Sandoz business, Novartis, a focused, innovative medicines company, operates as a single global operating segment. It is now concentrating on four core therapeutic areas (cardiovascular, renal and metabolic, immunology, and neuroscience and oncology).
Entresto’s sales rose 26% from the year-ago quarter's level to $1.63 billion due to sustained, robust demand-led growth on the back of increased patient share across all geographies. Entresto’s sales beat both the Zacks Consensus Estimate and our estimate of $1.62 billion.
Kesimpta (multiple sclerosis) sales came in at $641 million, up 73% on increased demand and strong access. Sales beat both the Zacks Consensus Estimate and our estimate of $611 million.
Kisqali’s stellar performance continued, with sales soaring 76% to $610 million. The figure beat the Zacks Consensus Estimate of $608 million and came in line with our estimate. Sales grew across all regions, based on increasing recognition of consistently reported overall survival in HR+/HER2- advanced breast cancer.
Cosentyx’s sales increased 21% to $1.30 billion, primarily benefiting from a lower prior-year base level. Sales missed the Zacks Consensus Estimate of $1.34 billion and our estimate of $1.33 billion.
Strong performances by Jakavi (up 14% to $444 million), Promacta/Revolade (up 4% to $563 million) and Tafinlar + Mekinist (up 7% to $486 million) also boosted the top line.
Pluvicto raked in sales of $273 million on the back of a solid launch in the United States. Novartis received approval for Pluvicto's expanded manufacturing capacity at Millburn, NJ and demand picked up. Novartis is now focused on initiating new patients. Sales, however, missed the Zacks Consensus Estimate of $336 million and our estimate of $333 million.
Zolgensma sales of $286 million were down 4% due to fewer incident patient treatments. Sales, missed the Zacks Consensus Estimate of $311 million and our estimate of $304 million.
Ilaris sales came in at $376 million, up 29% year over year as sales grew across all regions.
Xolair sales grew 16% year over year to $378 million. Novartis has a collaboration agreement with Roche (RHHBY - Free Report) for Xolair. Novartis and Roche co-promote Xolair in the United States.
Scemblix generated sales of $125 million driven by its strong launch uptake, demonstrating the high unmet need in chronic myelogenous leukemia.
However, generic competition affected sales, mainly for Gleevec/Glivec (down 25% to $128 million) and Gilenya (declined 55% to $154 million). Also, Lucentis’ sales plunged 25% to $301 million.
The results of the Sandoz division and selected portions of corporate activities attributable to Sandoz business are reported discontinued operations from the third quarter.
2023 Results
Sales came in at $45.4 billion, up 8% year over year. The figure missed the Zacks Consensus Estimate of $47.5 billion. Core earnings (excluding one-time charges) of $6.47 per share missed the Zacks Consensus Estimate of $6.59.
In 2023, Novartis repurchased a total of 87.5 million shares for $8.4 billion.
2024 Guidance
Novartis expects net sales for 2024 to grow in mid-single digits.
Core operating income is now projected to grow in the high single-digits.
Key Updates
In December 2023, the FDA approved iptacopan as the first oral monotherapy for the treatment of adults with paroxysmal nocturnal hemoglobinuria under the brand name Fabhalta.
Our Take
Novartis’ performance in the fourth quarter missed expectations and the guidance for 2024 was not encouraging as well. Pluvicto sales missed estimates in the fourth quarter.
Novartis completed its strategic transformation into a pure-play innovative medicines company in 2023. While higher expenses impacted the quarterly results, key growth drivers should fuel growth in the mid-term.
Zacks Rank
Novartis currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
A couple of better-ranked stocks in the healthcare industry are Novo Nordisk (NVO - Free Report) and Regeneron Pharmaceuticals (REGN - Free Report) . NVO currently sports a Zacks Rank #1 (Strong Buy) and REGN carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Novo Nordisk’s 2024 earnings per share have increased from $3.20 to $3.32. Shares of NVO have surged 56.8% in the past year.
Novo Nordisk’s earnings beat estimates in two of the last four quarters, met in one and missed in the other, delivering an average surprise of 0.58%. In the previously reported quarter, Novo Nordisk’s earnings beat estimates by 5.80%.
In the past 60 days, estimates for Regeneron’s 2024 earnings have risen from $41.60 per share to $44.17. REGN’s shares have risen 26.6% in the past year. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 12.34%.
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https://www.zacks.com/stock/news/2218865/novartis-nvs-q4-earnings-miss-on-higher-costs-sales-lag
| 2024-01-31T17:07:42Z
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Synchrony Financial (SYF - Free Report) recently announced its partnership with PatientNow to simplify processes for cosmetic practices and the medical spa industry by combining the products and technology of both companies. SYF has made its CareCredit health and wellness credit card available to 4,800 cosmetic and aesthetic businesses through PatientNow as the primary financing option.
PatientNow offers practice management solutions based on the cloud to its customers through innovative solutions that help providers manage their costs while providing quality service. This partnership with Synchrony bodes well for both companies as they will be able to enhance their offerings. Moreover, SYF, through PatientNow, will be able to venture into this new space and increase the footprint of its CareCredit card.
This move bodes well for Synchrony, as wider adoption of CareCredit is anticipated to fuel the top line in the future. With SYF’s CareCredit expansion, it is evident that the company is focused on expanding the business with attention paid to health systems. Health and Wellness purchase volume improved 10.4% in the fourth quarter of 2024 due to growing active accounts in Cosmetic, Dental and Pet. This move will also lead to increased contributions from this segment and a rise in the loan receivables portfolio, paving the way for higher interest income and fees on loans. The company expects loan receivables growth of around 6-8% in 2024.
This partnership will aid providers by reducing their administrative costs and modernizing their practice. They will also benefit from a boost in revenues due to a wider customer reach. Patients will benefit from financing options that are not heavy on their pocket. Synchrony is also including new features like its quick screen, self-service options for customers and personalized URLs, further solidifying its value proposition.
Shares of Synchrony have gained 8.1% in the past year compared with the industry’s 5.3% growth. SYF currently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks in the Finance space are Artisan Partners Asset Management Inc. (APAM - Free Report) , Euronet Worldwide, Inc. (EEFT - Free Report) and Trinity Capital Inc. (TRIN - Free Report) . Artisan Partners currently sports a Zacks Rank #1 (Strong Buy), while Euronet and Trinity Capital carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Artisan Partners outpaced estimates in each of the last four quarters, the average surprise being 22.3%. The Zacks Consensus Estimate for APAM’s 2024 earnings suggests an improvement of 6.4%, while the consensus mark for revenues suggests growth of 4.6% from the respective 2023 estimate. The consensus mark for APAM’s 2024 earnings has moved 4.8% north in the past 30 days.
Euronet’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 4.7%. The Zacks Consensus Estimate for EEFT’s 2024 earnings suggests an improvement of 12.8%, while the consensus mark for revenues suggests growth of 7.8% from the corresponding 2023 estimate. The consensus mark for EEFT’s 2024 earnings has moved 0.1% north in the past 30 days.
The bottom line of Trinity Capital outpaced estimates in two of the last four quarters, matched the mark once and missed the same in the remaining one occasion, the average surprise being 4.2%. The Zacks Consensus Estimate for TRIN’s 2024 earnings suggests an improvement of 1.1%, while the consensus mark for revenues suggests growth of 10.2% from the respective 2023 estimate. The consensus mark for TRIN’s 2024 earnings has moved 0.9% north in the past 30 days.
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https://www.zacks.com/stock/news/2218866/synchrony-syf-expands-carecredit-network-with-patientnow
| 2024-01-31T17:07:49Z
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Hess Corporation (HES - Free Report) reported fourth-quarter 2023 earnings per share of $1.63, which beat the Zacks Consensus Estimate of $1.43. However, the bottom line declined from the year-ago quarter’s level of $1.78.
Total quarterly revenues decreased to $3,035 million from $3,054 million in the year-ago period. The figure, however, beat the Zacks Consensus Estimate of $2,775 million.
Better-than-expected quarterly results have been driven by higher oil equivalent production volumes. The positives were partially offset by higher total costs and expenses.
Key information
Hess is being acquired by Chevron Corporation (CVX - Free Report) for $53 billion in an all-stock transaction. This deal, projected to be finalized in early 2024, marks the second-largest acquisition in the history of the oil and gas industry.
For Chevron, this acquisition represents a significant achievement, granting the company entry to Hess' valuable assets in Guyana and the Bakken Formation in North Dakota. In addition to the Guyana and Bakken assets, Chevron will gain access to Hess’ assets in the Gulf of Mexico and Southeast Asia.
Operational Update
Exploration and Production
For the quarter under review, the Exploration and Production business reported adjusted earnings of $512 million, down from $641 million reported a year ago. The business was negatively impacted by a dip in realized natural gas and natural gas liquids (NGL) prices.
Quarterly hydrocarbon production totaled 418 thousand barrels of oil equivalent per day (MBoe/d), up from 386 MBoe/d in the year-ago period, primarily due to higher production in Guyana and the Bakken. The reported figure also beat our estimate of 405.7 MBoe/d.
Crude oil production increased from 228 thousand barrels per day (MBbls/d) in fourth-quarter 2022 to 244 MBbls/d in the quarter under review. The reported figure also beat our estimate of 229.6 MBbls/d.
NGL production totaled 73 MBbls/d, up from 62 MBbls/d in the prior-year quarter. The reported figure beat our estimate of 70.8 MBbls/d.
Natural gas production totaled 608 thousand cubic feet per day (Mcf/d), up from 576 Mcf/d recorded a year ago. The reported figure missed our estimate of 632 Mcf/d.
Worldwide crude oil realization per barrel of $78.95 (excluding the impacts of hedging) significantly declined from $83.50 in the year-ago period. Also, global natural gas price fell to $4.51 per Mcf from the year-ago figure of $5.17. The average global NGL selling price declined to $20.92 per barrel from $26.93 reported a year ago.
Midstream
The company generated adjusted net earnings of $63 million, down from $64 million registered a year ago.
Operating Expenses
Operating expenses for the fourth quarter totaled $473 million compared with the year-ago level of $385 million. The reported figure outpaced our estimate of $423.2 million.
Exploration expenses increased to $87 million from $74 million recorded in the year-ago period. Marketing costs increased to $886 million from $821 million a year ago.
Total costs and expenses increased to $2,350 million from $2,180 million in the prior-year period.
Financials
Net cash provided by operating activities amounted to $1,344 million. Hess’ capital expenditure for exploration and production activities totaled $1,480 million.
As of Dec 31, 2023, the company had $1,688 million in cash and cash equivalents. Its long-term debt was $8,302 million at the end of the fourth quarter.
Outlook
Hess expects to continue operating four drilling rigs in 2024. It expects to receive leases for these rigs in the first quarter of 2024. Hess forecasts a total capital and exploratory expenditure of $4.2 billion for full-year 2024. This includes the recent acquisition of leases from the Gulf of Mexico Lease Sale 261.
Zacks Rank & Stocks to Consider
Hess currently carries a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector may look at some better-ranked companies like Vaalco Energy (EGY - Free Report) and Oceaneering International, Inc. (OII - Free Report) , which presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vaalco Energy 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.
Oceaneering International 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.
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https://www.zacks.com/stock/news/2218867/hess-hes-q4-earnings-surpass-estimates-revenues-fall-yy
| 2024-01-31T17:07:55Z
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Stryker Corporation (SYK - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $3.46, which beat the Zacks Consensus Estimate of $3.27 by 5.81%. The bottom line also improved 15.3% year over year.
GAAP EPS was $2.98, up 102.7% from the year-ago quarter.
Price Performance
SYK’s shares have gained 13.4% in the past six months compared with the industry's gain of 0.8%. The S&P 500 Index increased 7.6% in the same period.
Image Source: Zacks Investment Research
Revenue Details
Revenues totaled $5.8 billion, which beat the Zacks Consensus Estimate of $5.6 billion by 3.81%. The top line also improved 11.8% on a year-over-year basis and 11.5% at constant currency (cc).
Revenues by Geography
Revenues in the United States amounted to $4.36 billion, up 12.8% from the prior-year quarter’s actual. International sales increased to $1.46 billion and grew 8.9% year over year reportedly, and up 7.8% excluding the negative impact of currency.
Segmental Analysis
MedSurg and Neurotechnology:This segment reported sales of $3.43 billion, up 12.3% year over year and 12.0% at cc. Sales growth was driven by increased unit volume as well as higher prices.
Orthopedics and Spine:Sales in the segment amounted to $2.4 billion, up 11.0% year over year and 10.7% at cc. This growth was driven by increased unit volume, partially offset by lower prices.
Margins
Adjusted gross profit totaled $3.71 billion in the reported quarter, up 13.8% from the year-ago quarter. Adjusted gross margin was 63.9%, up 120 basis points (bps).
Total operating expenses were $2.45 billion, up 1.0% from the year-ago quarter’s level.
Adjusted operating income totaled $1.58 billion, up 14.3% from the year-ago quarter. Adjusted operating margin was 27.2%, up 60 bps.
Full-Years Results
Stryker recorded total revenues of $20.5 billion in 2023, up 11.1% year over year. Adjusted EPS for 2023 was $10.60, up 13.5% from the prior year.
Financial Update
Strykerexited the fourth quarter of 2023 with cash and cash equivalents of $3.02 billion compared with $1.93 billion in the third quarter.
Cumulative net cash provided by operating activities in the fourth quarter totaled $3.7 billion compared with $2.6 billion a year ago.
2024 Guidance Issued
Stryker announced its guidance for 2024. The company expects organic growth for total revenues in the range of 7.5-9.0% compared with 2023-end. The Zacks Consensus Estimate for total revenues is pegged at $21.81 billion. Based on the steady progress of the company’s pricing actions, it is expecting the full-year impact of price to be roughly flat.
SYK expects adjusted EPS in the band of $11.70-$12.00, implying growth of 10.8% at the midpoint of the range. The Zacks Consensus Estimate is pegged at $11.54.
In 2024, the company expects unfavorable currency movement to hurt its top-line growth more in the first half of the year and EPS by 5-10 cents.
Wrapping Up
Stryker exited fourth-quarter 2023 on a strong note, wherein both earnings and revenues beat their respective Zacks Consensus Estimate. The company surpassed $20 billion in sales for 2023 while witnessing strong performance across its segments in the United States. Strong International sales also buoy optimism. SYK expects the momentum to continue in 2024 on the back of ongoing procedural recovery, a strong order book for capital equipment, and an improvement in price along with a strong pipeline of innovation.
The company is adopting several cost-cutting measures, including restructuring plans. Stryker’s prospects in 2024 seem promising on the back of strong customer demand for its existing products as well as new launches. Its guidance for 2024 earnings and revenues appears encouraging.
Moreover, the expansion in both gross and operating margins is reassuring. However, stiff competition in the MedTech space is a concern.
Zacks Rank
Stryker currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Some other top-ranked stocks 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 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/2218868/strykers-syk-q4-earnings-revenues-surpass-estimates?-revenues-surpass-estimates
| 2024-01-31T17:08:01Z
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Ashland Global Holdings Inc. (ASH - Free Report) recorded first-quarter fiscal 2024 (ending Dec 31, 2023) adjusted earnings of 45 cents per share, down from 97 cents in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 21 cents.
Sales declined by 9.9% year over year to $473 million, falling short of the Zacks Consensus Estimate of $478.4 million. The decline is attributed to weaker volumes, partly offset by improved pricing within the Life Sciences and Personal Care segments.
Segment Highlights
Life Sciences: Sales in the segment fell 3% from the prior year to $200 million in the reported quarter, missing the Zacks Consensus Estimate of $203 million. Sustained pricing gains were offset by normalized supply in the pharmaceutical market amidst declining demand, while nutrition end-market volumes continued to face challenges.
Personal Care: Sales in the division fell 7% year over year to $129 million, missing Zacks Consensus Estimate of $131 million. Higher volumes in hair care were more than offset by lower volumes in skin care and oral care, resulting in an overall offset to sustained pricing.
Specialty Additives: Sales in the segment fell 15% year over year to $122 million, missing the Zacks Consensus Estimate of $127 million, attributed to the continued impacts of decreased volumes in fiscal 2023 and lower pricing in architectural coatings.
Intermediates: Sales in the segment dropped 39% year over year to $33 million, below the Zacks Consensus Estimate of $36.1 million, driven by reduced pricing and volumes for both merchant and captive sales.
Financials
Operating activities generated $201 million in cash flows in the first quarter. Ongoing free cash flow was $66 million in the quarter.
Outlook
Ashland forecasts adjusted EBITDA between $115 million and $125 million for the second quarter of fiscal 2024, with anticipated sales ranging from $565 million to $585 million. For the year 2024, sales are expected to be between $2.15 billion and $2.25 billion, while adjusted EBITDA is projected in the range of $460-$500 million.
Price Performance
Shares of Ashland have lost 26.1% in the past year against a 15.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Ashland 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 71.3% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 31.2% in the past year.
ANDE beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 32.8%. The company’s shares have increased 47.7% in the past year.
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https://www.zacks.com/stock/news/2218871/ashlands-ash-q1-earnings-beat-estimates-revenues-miss
| 2024-01-31T17:08:07Z
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Avery Dennison Corporation (AVY - Free Report) has delivered adjusted earnings of $2.16 per share in fourth-quarter 2023, beating the Zacks Consensus Estimate of $2.15. The bottom line increased 31% year-over-year.
Including one-time items, the company has reported earnings per share (EPS) of $1.77 compared with the year-ago quarter’s $1.51.
Total revenues moved up 4.2% year over year to $2.11 billion, beating the Zacks Consensus Estimate of $2.09 billion. Volumes in both segments were up sequentially.
The cost of sales in the quarter dipped 0.7% year over year to $1.51 billion . The gross profit rose 19.2% year over year to $596 million.
Marketing, general and administrative expenses were $335 million compared with the $312 million incurred in the year-ago quarter. The adjusted operating profit was around $261 million compared with the prior-year quarter’s $188 million. The adjusted operating margin was 12.4% compared with 9.3% in the prior-year quarter.
Segmental Highlights
Revenues in the Materials Group segment declined 1.6% year over year to $1.42 billion in the reported quarter. The reported figure missed our estimate of $1.49 billion . On an organic basis, sales were down 3.9%. We predicted organic sales to rise 1.2%. The segment’s adjusted operating profit increased 31.9% year over year to $198 million.
Revenues in the Solutions Group were up 18.3% year over year to $692 million. We estimated revenues of $605 million for this segment. On an organic basis, sales improved 13.9% year over year. Our model predicted a rise of 0.9%. The variance was driven by a sequential improvement in Apparel Solutions volume. The segment’s adjusted operating income rose 51.6% year over year to $80.5 million.
Financial Updates
The company returned $394 million in cash to shareholders through share repurchases and dividend payments in 2023. AVY repurchased 0.8 million shares throughout the year.
Avery Dennison ended 2023 with cash and cash equivalents of $215 million compared with $167 million at the end of the prior year.
The company’s long-term debt was $2.62 billion at the end of 2023, up from $2.50 billion at the end of 2022. The company’s net debt to adjusted EBITDA ratio was 2.4X.
AVY realized approximately $69 million in pre-tax savings from restructuring (net of transition costs) in 2023. The company also incurred pre-tax restructuring charges of around $79 million.
2023 Performance
Adjusted EPS decreased 14% year over year to $7.90 in 2023 but topped the Zacks Consensus Estimate of $7.87. Including one-time items, EPS was $6.20 in 2023, down 33% from the $9.21 reported in 2022.
Total revenues declined 7.5% year over year to $8.36 billion. The top line figure topped the Zacks Consensus Estimate of $8.34 billion.
Guidance for 2024
Avery Dennison expects adjusted EPS between $9.00 and $9.50 for 2024.
Price Performance
Shares of AVY have gained 6.8% in the past year compared with the industry’s growth of 15%.
Image Source: Zacks Investment Research
Zacks Rank and Other Stocks to Consider
Avery Dennison currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are AZZ Inc. (AZZ - Free Report) , Applied Industrial Technologies (AIT - Free Report) and A. O. Smith Corporation (AOS - Free Report) . AZZ currently sports a Zacks Rank #1 (Strong Buy), and AIT and AOS carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 51.8% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 26.1% in a year.
The Zacks Consensus Estimate for A. O. Smith’s 2024 earnings is pegged at $4.03 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 6.8%. The company has a trailing four-quarter average earnings surprise of 14%. AOS shares have gained 16% in the past year.
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https://www.zacks.com/stock/news/2218872/avery-dennison-avy-q4-earnings-beat-estimates-rise-yy
| 2024-01-31T17:08:14Z
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Starbucks Corporation (SBUX - Free Report) reported first-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line increased year over year.
Starbucks' first-quarter performance showcased strength across key metrics. CEO Laxman Narasimhan highlighted the loyalty of the customer base, growth in rewards program membership and spending per member. Despite challenges, Narasimhan emphasized the brand's resilience, attributing it to innovation and a focus on supporting green apron partners. The management stated optimism and that the factors along with the Triple Shot Reinvention initiative, will propel sustained earnings growth in the upcoming periods.
Following the announcements, shares of the company gained 3.7% during after hour trading session on Jan 30.
Discussion on Earnings, Revenues & Comps
During the fiscal first quarter, the company reported adjusted earnings per share (EPS) of 90 cents, missing the Zacks Consensus Estimate of 92 cents by 2.2%. The bottom line jumped 20% year over year from adjusted EPS of 75 cents reported in the prior-year quarter.
Quarterly revenues of $9.4 billion missed the Zacks Consensus Estimate of $9.5 billion. The top line rose 8.2% on a year-over-year basis, primarily driven by growth in comparable store sales and net new stores. Also, solid performances in licensed store businesses added to the positives. Global comparable store sales rose 5% year over year. The upside was backed by growth of 2% and 3% in average tickets and comparable transactions, respectively.
In the fiscal first quarter, Starbucks opened 549 net new stores worldwide, bringing the total store count to 38,587.
Overall Margin Expands in Q1
On a non-GAAP basis, the operating margin was 15.8%, up from 14.5% in the prior-year quarter’s levels. The positive outcome was mainly propelled by operational efficiencies within the stores and increased sales leverage. However, growth was somewhat mitigated by investments committed to store partner wages and elevated general and administrative costs associated with the reinvention Plan.
Segmental Details
Starbucks has three reportable operating segments — North America, International and Channel Development.
North America: During the fiscal first quarter, segmental net revenues were $7.1 billion, up 9% year over year. The segment benefited from a 5% rise in comparable store sales and new store growth. Average ticket and transaction moved upward by 4% and 1%, respectively.
Operating margin was 21.4% compared with 18.5% in the prior-year quarter. The upside was backed by sales leverage and in-store operational efficiencies.
International: Segmental net revenues of $1.8 billion ascended 10% year over year. An improvement of 7% in comparable store sales and net company-operated new store growth of 12% resulted in the uptick. This was marginally offset by an unfavorable impact of nearly 2% from foreign currency translation.
Operating margin contracted 120 basis points (bps) year over year to 13.1%. The downside can be attributed to investments in store partner wages and benefits, business mix shift and strategic investments.
In the fiscal first quarter, comps in China rose 10% year over year. The metric fell 29% in the prior-year quarter. A 21% rise in transactions drove the upside. However, average tickets declined 9%.
Channel Development: Net revenues in the segment fell 6% year over year to $448 million. The dismal performance of the global ready-to-drink and Global Coffee Alliance added to the downside.
During the quarter, the segment’s operating margin contracted 50 bps year over year to 46.8%. This was mainly driven by product costs related to the Global Coffee Alliance.
Financial Details
The company ended the fiscal first quarter with cash and cash equivalents of $3 billion compared with $3.6 billion as of Oct 1, 2023. As of Dec 31, long-term debt totaled $13.6 billion compared with $13.5 billion as of Oct 1, 2023.
Meanwhile, management declared a quarterly cash dividend of 57 cents per share. The dividend is payable on Feb 23 to shareholders of record as of Feb 9.
Other Updates
The Starbucks Rewards loyalty program’s 90-day active members in the United States increased to 34.3 million, up 13% year over year.
2024 Guidance
Transitioning to the fiscal 2024 guidance, SBUX affirmed that business challenges encountered in the first quarter are temporary. Consequently, the guidance remains consistent with the reinvention update provided in November concerning global store growth, operating margin and EPS. However, adjustments are made to the full-year outlook for revenue and comparable sales (comp) due to the cumulative impact of first-quarter revenue and recent trends (including a softer January) that are expected to affect second-quarter performance.
In the fiscal 2024, the company anticipates global revenue growth in the range of 7-10% compared with the previous projection of 10-12%. Full-year global and U.S. comp growth is forecast to be in the range of 4-6%, down from the previous range of 5-7%. The company anticipates China's comp growth to be in the low single digits for the remainder of the year.
Management forecasts global net store growth to be approximately 7%. In fiscal 2024, both GAAP and non-GAAP EPS earnings per share are expected to improve in the range of 15-20%.
Zacks Rank & Key Picks
Starbucks has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Retail – Restaurants industry include:
Carrols Restaurant Group, Inc. (TAST - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 102% on average. Shares of TAST have rallied 333.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TAST’s 2024 sales and EPS indicates 3.8% and 14.3% growth, respectively, from the year-ago period’s levels.
Darden Restaurants, Inc. (DRI - Free Report) carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 4.2%, on average. Shares of DRI have increased 11.4% in the past year.
The Zacks Consensus Estimate for DRI’s 2024 sales and EPS indicates 9.9% and 10.9% growth, respectively, from the year-ago period’s levels.
Chipotle Mexican Grill, Inc. (CMG - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 5.8%, on average. The stock has gained 46.4% in the past year.
The Zacks Consensus Estimate for CMG’s 2024 sales and EPS suggests rises of 13.2% and 19.6%, respectively, from the year-ago period’s levels.
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https://www.zacks.com/stock/news/2218873/starbucks-sbux-q1-earnings-lag-estimates-margins-rise-yy
| 2024-01-31T17:08:20Z
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Vishay Intertechnology (VSH - Free Report) is continuously making concerted efforts to strengthen its position in the booming optoelectronics market, which, per a Mordor Intelligence report, is expected to hit $47.6 billion in 2024 and reach $62.9 billion by 2029, witnessing a CAGR of 5.7% between 2024 and 2029.
In this regard, the company launched VCNL36828P, a compact, fully integrated proximity sensor featuring a vertical-cavity surface-emitting laser.
The proximity sensor offers a 20% smaller package, 20% lower idle current and 40% higher sunlight cancellation, enhancing efficiency in space-constrained, battery-powered applications.
It is designed for use in smartphones and smartwatches, enabling automatic screen wake-up and turn-off functions, detecting wearer status, and reducing costs by enabling two sensors without a multiplexer.
The device also boasts features like intelligent cancellation and a smart persistence scheme for efficient communication, reducing cross-talk and ensuring accurate sensing and faster response times.
Vishay is expected to gain solid traction across consumer applications like smartphones and smartwatches on the back of its latest move.
Strengthening Optoelectronics Offerings
Apart from the launch of VCNL36828P, Vishay upgraded its family of infrared receiver (IR) modules, namely TSOP18xx, TSOP58xx and TSSP5xx, with its latest in-house integrated circuit technology.
These devices, which include a photodetector, preamplifier circuit and IR filter, enhance battery life in mobile devices and offer robustness for outdoor applications, ensuring long-term availability and cost savings.
Vishay also unveiled five 10 MBd high-speed optocouplers with a wide voltage supply range and open collector output, enabling low power consumption in industrial applications.
The company introduced three new IR sensor modules, namely TSMP95000, TSMP96000 and TSMP98000, to boost its optoelectronics offerings.
These new devices used for remote control systems offer features like pin-to-pin compatibility, wider supply voltage range, smaller bandwidth, higher ESD withstand capability and robust performance under strong DC light.
Overall Portfolio Strength Aids Growth
The company’s growing endeavors to bolster its opto offerings align with Vishay’s increasing efforts to strengthen its overall product portfolio.
Notably, Vishay introduced synchronous buck regulator modules, namely, SiC931, SiC951 and SiC967, to ensure ultrafast transient response, tight ripple regulation and loop stability, regardless of output capacitor type.
Further, the company debuted R3T2FPHM3, a two-in-one standard rectifier and transient voltage suppressor device for automotive applications.
Strength in the overall product portfolio will, in turn, continue to aid the company’s overall financial performance in the near term.
However, geopolitical tensions, inflationary pressures and a softening demand environment remain major concerns for the company. Vishay’s shares have lost 0.3% in the past year, underperforming the Zacks Computer & Technology sector’s growth of 50%.
The Zacks Consensus Estimate for 2024 total revenues stands at $3.21 billion, indicating a year-over-year decline of 5.7%.
The consensus mark for 2024 earnings is pegged at $1.84 per share, indicating a 24.3% decline from the year-ago figure.
Zacks Rank & Stocks to Consider
Currently, Vishay carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Logitech International (LOGI - Free Report) and Itron (ITRI - Free Report) , each 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 108.4% over the past year. The long-term earnings growth rate for ANET is pegged at 19.77%.
Shares of Logitech International have returned 42.4% over the past year. The long-term earnings growth rate for LOGI is currently projected at 15.75%.
Shares of Itron have gained 24.7% over the past year. The long-term earnings growth rate for ITRI is currently projected at 23%.
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https://www.zacks.com/stock/news/2218874/vishay-vsh-boosts-opto-offerings-with-new-proximity-sensor
| 2024-01-31T17:08:26Z
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For the quarter ended December 2023, Phillips 66 (PSX - Free Report) reported revenue of $-999 million, down 102.4% over the same period last year. EPS came in at $3.09, compared to $4.00 in the year-ago quarter.
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For the quarter ended December 2023, Phillips 66 (PSX - Free Report) reported revenue of $-999 million, down 102.4% over the same period last year. EPS came in at $3.09, compared to $4.00 in the year-ago quarter.
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https://www.zacks.com/stock/news/2218876/phillips-66-psx-reports-q4-earnings-what-key-metrics-have-to-say
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Shares of 2seventy bio, Inc. (TSVT - Free Report) were up 14.9% on Tuesday after the company announced a new strategic re-alignment of its ongoing business operations.
As part of the re-alignment, the company entered into an asset purchase agreement (“APA”) with Regeneron Pharmaceuticals, Inc. (REGN - Free Report) wherein the latter will acquire 2seventy bio’s oncology and autoimmune research and development (“R&D”) pipeline and related platform technologies.
Per the terms of the APA, 2seventy bio is eligible to receive an upfront payment of $5 million from Regeneron as well as milestone payment for the first approved product under this agreement and royalties on net sales of the same. Also, around 160 employees of 2seventy bio will be joining Regeneron as part of the APA.
Based on this agreement with 2seventy bio, Regeneron is looking to make a new company — Regeneron Cell Medicines. It would be an R&D unit that will advance cell therapies in oncology and immunology.
The transaction is expected to close in the first half of 2024, subject to certain customary closing conditions.
Shares of 2seventy bio have plunged 69.6% in the past year compared with the industry’s decline of 12%.
Image Source: Zacks Investment Research
Meanwhile, upon closing of the APA with REGN, Chip Baird will become the new chief executive officer (CEO) of 2seventy bio. Nick Leschly will serve as the chairman of the company’s board of directors.
Importantly, as part of the strategic re-alignment, 2seventy bio will now exclusively focus on the commercialization and development of its BCMA-targeted CAR T therapy, Abecma (idecabtagene vicleucel). The drug is approved for treating adult patients with triple-class exposed relapsed or refractory multiple myeloma after four or more prior lines of therapy.
2seventy bio and Bristol Myers (BMY - Free Report) are jointly developing and commercializing Abecma in the United States.
In November 2023, BMY and TSVT faced a major setback when the FDA informed the companies that it would not be able to give a decision on a supplemental biologics license application (sBLA) for Abecma by the original target date of Dec 16, 2023.
The sBLA sought approval for expanded Abecma for third-line treatment of relapsed or refractory multiple myeloma, which is a much larger indication than the currently approved use.
The FDA’s Oncologic Drugs Advisory Committee (“ODAC”) will now meet to review data from the phase III KarMMa-3 study supporting the sBLA for Abecma.
2seventy bio, along with Bristol Myers, remains focused on supporting a potential third-line launch of Abecma later this year.
2seventy bio is now looking to reduce its existing workforce to lower costs and overall expenses. The company now expects to make annual savings of almost $150 million in 2024 and around $200 million in 2025, which, in return, are likely to extend its cash runway beyond 2027.
Zacks Rank & Another Key Pick
2seventy bio currently carries a Zacks Rank #2 (Buy).
A top-ranked stock in the healthcare sector is Puma Biotechnology, Inc. (PBYI - 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.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 62 cents to 69 cents. In the past year, shares of PBYI have risen 9.5%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.
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https://www.zacks.com/stock/news/2218877/2seventy-bio-tsvt-divests-rd-assets-to-regeneron-stock-up?d-assets-to-regeneron,-stock-up
| 2024-01-31T17:08:38Z
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CGI (GIB - Free Report) recently announced that it has forged a ten-year strategic partnership with Posti Group, the premier delivery and logistics services provider in Finland, Sweden and the Baltics.
This partnership focuses on the development and delivery of digital multichannel messaging services, a critical component in an era where customer expectations and cybersecurity demands are evolving at an unprecedented pace.
As part of this collaboration, Posti will leverage CGI's digital service production expertise to enhance its messaging capabilities. A key aspect of this strategic alliance involves the transfer of 88 professionals based in Finland, Poland, Latvia and Estonia from Posti to CGI.
The agreement also outlines CGI’s role in modernizing Posti's digital messaging technology. This initiative aims to equip Posti with the tools needed to respond effectively to the dynamic expectations of its customers while addressing the ever-growing challenges of cybersecurity and operational security.
This strategic partnership aligns with CGI's global mission to help logistics firms undergo business transformation through IT modernization, the Internet of Things, digital insights and cybersecurity. By leveraging advanced technologies, CGI enables companies like Posti to not only meet customer demands but also drive operational efficiencies and cost savings, propelling them into the digital age.
CGI’s Growth Prospects Remain Bright
CGI Group’s shares have returned 9.5% in the past six months compared with the Zacks Computer & Technology sector’s increase of 12.6%.
Its expanding customer base and portfolio strength are expected to drive CGI’s top-line growth. GIB’s strong partner base, which includes Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) , has been a key catalyst.
In December 2023, CGI partnered with Alphabet’s Google Cloud to launch the UNIDO Sustainability Planet Platform, leveraging AI and geospatial data to address global sustainability challenges and promote inclusive industrial development.
In November 2023, CGI announced its membership in the Microsoft Intelligent Security Association, fortifying its cybersecurity services through access to Microsoft's comprehensive security product portfolio.
GIB recently entered a collaboration with Korber aimed at transforming pharmaceutical and life sciences production processes. The collaboration will help CGI leverage Korber's advanced Werum PAS-X Manufacturing Execution System Suite. It also enables CGI to offer end-to-end services that empower pharmaceutical companies to enhance efficiency, accuracy and safety in their product manufacturing.
CGI also announced the availability of its flexible cloud-ready enterprise payments solution, CGI All Payments, on Amazon's cloud computing platform, Amazon Web Services, to streamline payment procedures for banks and offer scalability, ISO 20022 standards compliance and cloud-based delivery.
Moreover, in a move toward technological innovation, CGI recently launched CGI Machine Vision, an AI-powered computer vision solution revolutionizing asset and infrastructure monitoring across industries, enhancing operational efficiency and safety through real-time data analysis and predictive models.
CGI currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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/2218878/cgi-gib-partners-posti-to-offer-improved-messaging-services
| 2024-01-31T17:08:45Z
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