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ETFs to Tap As Cloud Powers Microsoft Fiscal Q1 Earnings

Microsoft (MSFT) continued a long track of beating earnings estimates and topped the revenue estimate driven by the demand for its software and cloud computing services for remote work and study. After the closing bell on Tuesday, the world's largest software maker — Microsoft MSFT —delighted investors with better-than-expected first-quarter fiscal 2022 results. It continued a long track of beating earnings estimates and topped the revenue estimate driven by the demand for its software and cloud computing services for remote work and study (see: all the Technology ETFs here).Earnings per share came in at $2.71, outpacing the Zacks Consensus Estimate of $2.06 and improving 25% from the year-ago quarter. Investors should note that Microsoft has not missed on quarterly earnings since the third quarter of fiscal 2016. Revenues grew 22% year over year to $45.3 billion, topping the consensus estimate of $43.87 billion. This marks the fastest pace of revenue growth since 2018.Growing demand for cloud computing services and software tools that support at-home workers led to the robust performance. Microsoft Cloud generated $20.7 billion in revenues for the first time in the quarter, up 36% year over year, suggesting a good start to fiscal 2022. Growth of the flagship Azure computing platform rose 50% in the fiscal first quarter, just shy of 51% growth in the fiscal fourth quarter. Sales of Office 365 Commercial and Dynamic 365 climbed 23% and 48%, respectively. Microsoft’s gaming revenues jumped 16% year over year.The robust earnings results pushed shares of Microsoft higher as much as 2% in after-market hours. The stock currently has a Zacks Rank #2 (Buy) and Growth Score of B.ETFs to BuyInvestors seeking to invest in this software leader could tap ETFs with a lower level of risk. While several ETF options are available, we have highlighted six with double-digit exposure to Microsoft that could be compelling choices.Select Sector SPDR Technology ETF XLKThis most-popular technology ETF follows the Technology Select Sector Index and has $46.7 billion in AUM. The fund charges 12 bps in fees per year from investors and trades in a heavy volume of around 9.7 million shares a day, on average. It holds about 75 securities in its basket, with Microsoft occupying the second position at 21.5%. XLK has a Zacks ETF Rank #1 with a Medium risk outlook (read: 4 ETF Areas for Investors to Make the Most of Q4).iShares Dow Jones US Technology ETF IYWThis ETF tracks the Dow Jones U.S. Technology Capped Index, giving investors exposure to 151 U.S. electronics, computer software and hardware, and informational technology companies. Of these, Microsoft occupies the second position in the basket with 16.3% of the assets. The fund has AUM of $9 billion and charges 41 bps in fees and expenses. Volume is good as it exchanges nearly 507,000 shares a day. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.Vanguard Information Technology ETF VGTThis fund manages about $52.5 billion in its asset base and provides exposure to 342 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, MSFT occupies the second position with a 16.8% share. The ETF has 0.10% in expense ratio, while volume is solid at nearly 598,000 shares. It has a Zacks ETF Rank #1 with a Medium risk outlook.MSCI Information Technology Index ETF FTECThis fund is home to 350 technology stocks with AUM of $6.6 billion. It follows the MSCI USA IMI Information Technology Index. MSFT is the second firm with a 16.8% allocation. The ETF has 0.08% in expense ratio, while volume is solid at 237,000 shares a day. It carries a Zacks ETF Rank #1 with a Medium risk outlook.iShares Global Tech ETF IXNThis product provides exposure to electronics, computer software and hardware, and informational technology companies by tracking the S&P Global 1200 Information Technology Sector Index. Holding 130 stocks in its basket, Microsoft occupies the second spot with 17.1% share. The ETF has amassed $5.6 billion in its asset base and trades in a good volume of 350,000 shares a day on average. The expense ratio is 0.43%.iShares Evolved U.S. Technology ETF IETCThis is an active ETF, having accumulated $149.6 million in its asset base. It employs data science techniques to provide exposure to 240 technology stocks. Microsoft is the top firm with a 15% allocation. IETC trades in a light volume of 14,000 shares and charges 18 bps in annual fees (read: 5 Tech ETFs Outperforming the Market This Year). Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports iShares Evolved U.S. Technology ETF (IETC): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 27th, 2021

Rapid Cloud Migration to Drive Salesforce (CRM) Q3 Earnings

Salesforce's (CRM) Q3 results are likely to reflect gains from the accelerated adoption of SaaS-based platforms amid the pandemic-led accelerated digital transformation. Salesforce's CRM third-quarter fiscal 2022 results, slated for a Nov 30 release, are likely to reflect the benefits from a robust demand environment as organizations are undergoing a major digital transformation.The increased adoption of cloud-based solutions amid business disruptions caused by the COVID-19 pandemic is expected to have driven demand for Salesforce’s products. Its ability to provide an integrated solution for customers’ business problems is the key driver.Click here to know how CRM’s overall fiscal third-quarter results are likely to be.Increased Cloud Adoption to Have Aided Q3 PerformanceThe rapid adoption of the software-as-a-service (SaaS)-based platforms amid the ongoing work-from-home and online learning trend is expected to have spurred demand for Salesforce’s cloud-based solutions. Salesforce’s diverse cloud offerings are likely to have helped expand its clientele, fueling the top line.salesforce.com, inc. Price and EPS Surprise salesforce.com, inc. price-eps-surprise | salesforce.com, inc. QuoteThe company’s Customer 360 Truth platform that helps connect all the data from sales, service, marketing, commerce and build a single Salesforce ID for each customer is likely to have boosted its performance.Also, Salesforce’s initiatives to capitalize on overseas demand for the cloud-based applications are anticipated to have bolstered the top line during the period in discussion. Further, the improved customer experience is anticipated to have aided the cloud segment. Also, CRM’s focus on AI and the substantial progress in its Einstein Analytics platform make it optimistic about the upcoming quarterly results.However, a decline in software spending by small & medium businesses amid the macroeconomic uncertainty due to the pandemic might have affected Salesforce’s fiscal third-quarter performance. Also, increasing investments in International expansions and data centers might have eroded the company’s profitability during the to-be-reported quarter.Partnerships and Acquisitions to Have Fueled GrowthSalesforce’s focus on building partnerships is anticipated to have fueled the top line. These strategic partnerships have not only helped it grab new deals but also expanded the firm’s operations internationally.Further, partnership agreements with the likes of Apple, Amazon, Google parent Alphabet, Microsoft, HP, Dell, International Business Machines and others for the firms’ cloud services are likely to have aided Salesforce’s performance during the fiscal third quarter.Additionally, CRM’s strategic acquisitions over the past 12 months are anticipated to have brought incremental revenues in the quarter under review. On Jul 21, 2021, Salesforce announced completing the buyout of Slack, which has positioned it as a leader in the enterprise team collaboration solution space.Salesforce bought Acumen Solutions, a McLean, Virginia-based professional services firm, in February 2021. Salesforce anticipates revenue contributions from the newly acquired Slack and Acumen businesses to be approximately $530 million and $200 million, respectively in fiscal 2022.Zacks Rank & Other Stocks to ConsiderSalesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some better-ranked stocks from the broader technology sector include Google-parent Alphabet GOOGL, Diodes DIOD and PTC Inc. PTC, each sporting a Zacks Rank #1.The Zacks Consensus Estimate for Alphabet’s fourth-quarter 2021 earnings has been revised downward by a penny to $26.71 per share over the past seven days. For 2021, earnings estimates have moved upward by 43 cents to $108.29 per share in the last seven days.Alphabet’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 41.5%. The GOOGL stock has rallied 66.9% in the year-to-date (YTD) period.The Zacks Consensus Estimate for Diodes’ fourth-quarter 2021 earnings has been revised upward by 23.9% to $1.45 per share over the past 30 days. For 2021, earnings estimates of Diodes have moved upward by 6.3% to $5.06 per share over the last 30 days.Diodes’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10%. Shares of DIOD have rallied 53.6% YTD.The consensus mark for PTC Inc.’s first-quarter fiscal 2022 earnings has been raised to $1.00 per share from 90 cents 30 days ago. For fiscal 2022, earnings estimates have been revised upward by 28 cents to $4.19 per share in the last 30 days.PTC Inc.’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 47.8%. Shares of PTC have gained 0.7% YTD. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report salesforce.com, inc. (CRM): Free Stock Analysis Report Diodes Incorporated (DIOD): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report PTC Inc. (PTC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks13 hr. 13 min. ago

Hewlett Packard (HPE) to Report Q4 Earnings: What"s in Store?

Hewlett Packard's (HPE) Q4 results are likely to reflect higher demand for its cloud services on the ongoing digital transformation. However, supply-chain constraints are likely to have hurt sales. Hewlett Packard Enterprise Company HPE is scheduled to report fourth-quarter fiscal 2021 results on Nov 30.For the quarter, Hewlett Packard projects non-GAAP earnings between 44 cents and 52 cents per share. The Zacks Consensus Estimate for earnings is pegged at 49 cents, indicating a year-over-year jump of 32.4%.The consensus mark for quarterly revenues is pinned at $7.40 billion, suggesting an increase of 2.6% from the year-ago period.Hewlett Packard’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 15.1%.In the last reported quarter, HPE delivered non-GAAP earnings of 46 cents per share, which beat the Zacks Consensus Estimate by 11.9% and were higher than the prior-year quarter’s earnings of 36 cents.Net revenues of $6.9 billion were up 1% on a year-over-year basis and beat the Zacks Consensus Estimate.Let’s see how things have shaped up before the upcoming announcement.Hewlett Packard Enterprise Company Price and EPS Surprise  Hewlett Packard Enterprise Company price-eps-surprise | Hewlett Packard Enterprise Company QuoteFactors at PlayHewlett Packard’s fiscal fourth-quarter performance is likely to have gained from the ongoing digital transformation and higher demand for cloud networking owing to the pandemic-induced remote working wave.Increased investments in data-center infrastructure, modernization of business applications and IT operations are also expected to have driven fourth-quarter revenues. The projected year-over-year rise is likely to reflect favorable comparison from the pandemic-hit year-ago quarter’s performance.Hewlett Packard’s top line is likely to have gained from the strong momentum in the as-a-service platform and significant contributions from growth businesses, such as high-performance computing & modular cooling systems and Intelligent Edge. Moreover, higher demand for HPE’s edge-to-cloud and software-as-a-service data storage solutions in the pandemic-induced remote-working environment is anticipated to have been a key growth driver.Furthermore, the solid adoption of Aruba ESP (Edge Services Platform), which provides edge-to-cloud connectivity as a service and its cloud services arm, HPE GreenLake, is expected to have driven revenues. On its second-quarter fiscal 2021 earnings conference call, Hewlett Packard stated that  Aruba ESP has been adding 150 new customers every day and the total number of customers have crossed the 100,000 mark.In the fourth quarter, Hewlett Packard’s acquisition of Silver Peak is likely to have added enhancements to the Aruba ESP cloud solutions and driven the expansion of its enterprise clientele. Silver Peak contributed about 700 basis points toward the growth of Intelligent Edge revenues in the third quarter.Hewlett Packard’s  gross margin is likely to have further improved during the fourth quarter, driven by a strong pricing discipline, benefits from a positive mix shift toward high-margin software-rich businesses, cost takeouts and automation. Also, the savings from its cost-optimization plan and a continued focus on improving productivity are anticipated to have boosted the company’s operating margin in the quarter under review.However, continued supply-chain constraints are likely to have hurt Hewlett Packard’s sales growth in the quarter under review. On its third-quarter fiscal 2021 earnings call, the company stated that the industry will continue to witness supply-chain constraints for at least the first half of 2022. Thus, manufacturing partners will not be able to spring back to the pre-pandemic level for the next two to three quarters.A persistent decline in the tier-1 server shipments might have been a downside for Hewlett Packard  during the to-be-reported quarter. Also, foreign-exchange headwinds are expected to have been concerns along with the several organizations shifting to cloud computing due to their maintenance-free and cost-effective structure compared with standalone servers. This trend is likely to have negatively impacted HPE’s financial performance during the quarter in discussion.What Our Model SaysOur proven model does not predict an earnings beat for Hewlett Packard this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.Though Hewlett Packard currently sports a Zacks Rank of 1, it 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 With Favorable CombinationsPer our model, PVH Corporation PVH, AutoZone AZO and Lululemon Athletica LULU have the right combination of elements to post an earnings beat in their upcoming releases.PVH Corporation is slated to report third-quarter fiscal 2022 results on Dec 1. The PVH stock sports a Zacks Rank #1 and has an Earnings ESP of +1.61% at present. PVH Corporation’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 177.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for its quarterly earnings is pegged at $2.07 per share, suggesting a year-over-year improvement of 56.8%. PVH Corporation’s quarterly revenues are estimated to increase 13.4% year over year to $2.40 billion.AutoZone carries a Zacks Rank #2 and has an Earnings ESP of +2.78%. The company is scheduled to report first-quarter fiscal 2022 results on Dec 7. AutoZone’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 18.6%.The Zacks Consensus Estimate for AZO’s first-quarter earnings is pegged at $20.65 per share, indicating a year-over-year decline of 11%. The consensus mark for revenues is pinned at $3.33 billion, calling for a year-over-year decrease of 5.6%.Lululemon currently carries a Zacks Rank #2 and has an Earnings ESP of +1.44%. It is set to report third-quarter fiscal 2022 results on Dec 9. Lululemon’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 25.2%.The Zacks Consensus Estimate for Lululemon’s third-quarter earnings is pinned at $1.39 per share, suggesting year-over-year growth of 19.8%. LULU is estimated to report revenues of $1.43 billion, which suggests an increase of 28.1% from the year-ago quarter. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report PVH Corp. (PVH): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks17 hr. 13 min. ago

Factors to Note Ahead of Verint"s (VRNT) Q3 Earnings Release

Verint's (VRNT) fiscal third-quarter performance is likely to reflect strength in the cloud business. Verint  Systems VRNT is slated to release third-quarter fiscal 2022 earnings on Dec 2.For the fiscal third quarter (ending on Oct 31, 2021), the company projects non-GAAP revenues in the range of $215-$220 million. The Zacks Consensus Estimate for revenues is pegged at $218.1 million, suggesting a decline of 34.2% from the year-ago quarter’s reported figure.The company expects earnings to be 53 cents per share. The Zacks Consensus Estimate for earnings is also pegged at 53 cents per share, suggesting a decline of 48.04% year over year.The company beat estimates in all of the last four quarters. It has a trailing four-quarter earnings surprise of 25.2%, on average.Shares of Verint have declined 16.4% in the past year compared with the industry's return of 44.4%.Verint Systems Inc. Price and EPS Surprise  Verint Systems Inc. price-eps-surprise | Verint Systems Inc. Quote Factors to NoteContinued momentum in the cloud business is likely to drive the company’s top line in the fiscal third quarter. Steady traction for bookings, particularly new perpetual license equivalent or PLE bookings, is likely to act as a tailwind. Strength in recurring revenues also bodes well.In the last reported quarter, the company’s PLE bookings soared 17.4% year over year to $73.1 million. The percentage of new PLE bookings from software as a service or SaaS stood at 52.6% in the fiscal second quarter compared with 43.1% reported in the prior-year quarter.Globally, business enterprises are rapidly adopting “digital-first engagement” tactics. This is likely to have driven demand for Verint’s cloud offerings in the to-be-reported quarter. The company is adding new functionalities to its cloud platform to help clients power their staff with bots and personnel.Increasing customer acquisitions bodes well. The company is gaining new clients through its robust customer and partner ecosystem. Also, the company’s agnostic cloud platform is helping its existing clientele to implement other Verint applications/offerings. In the last reported quarter, the company won 20 SaaS deals with a total contract value (“TCV”) greater than $1 million.Muted growth in perpetual revenues, higher expenses and stiff competition in the SaaS space might have limited margin expansion in the to-be-reported quarter.What Our Model SaysAccording to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.Verint has an Earnings ESP of 0.00 % and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:AutoZone AZO has an Earnings ESP of +2.78% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.AutoZone is set to report first-quarter fiscal 2022 results on Dec 7. The Zacks Consensus Estimate for earnings is pegged at $20.65 per share, which suggests an increase of 11% from the prior-year quarter’s reported figure.Shares of AutoZone have rallied 59.4% in the past year compared with the Zacks Automotive- Retail and Wholesale -parts industry’s rise of 50%.Lululemon Athletica LULU has an Earnings ESP of +1.44% and a Zacks Rank of 2.Lululemon Athletica is scheduled to release third-quarter fiscal 2021 results on Dec 9. The Zacks Consensus Estimate for earnings is pegged at $1.39 per share, suggesting an increase of 19.8% from the prior-year quarter’s levels.Shares of Lululemon Athletica have rallied 23.3% in the past year compared with the Zacks Textile Apparel industry’s rise of 22.8%.PVH Corporation PVH has an Earnings ESP of +1.61% and a Zacks Rank of 2.PVH is scheduled to release third-quarter fiscal 2021 results on Dec 1. The Zacks Consensus Estimate for earnings is pegged at $2.07 per share, indicating an increase of 56.8% from the year-ago quarter’s tally.Shares of PVH have soared 38.5% in the past year compared with the Zacks Textile Apparel industry’s rise of 22.8%. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report PVH Corp. (PVH): Free Stock Analysis Report Verint Systems Inc. (VRNT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks17 hr. 13 min. ago

Marvell (MRVL) to Report Q3 Earnings: What"s in the Offing?

Marvell (MRVL) Q3 results are likely to reflect gains from solid demand for its networking and storage products. Also, the acquisition of Inphi Corporation might have contributed to the quarterly performance. Marvell Technology Group Ltd. MRVL is slated to report third-quarter fiscal 2022 results on Dec 2.The company anticipates revenues of $1.145 billion (up or down up to 3%) for the fiscal third quarter. The Zacks Consensus Estimate for revenues is pegged at $1.15 billion, suggesting growth of 53% from the year-ago period.Marvell expects non-GAAP earnings per share to be approximately 38 cents (+/- 3 cents). The Zacks consensus mark of 38 cents is in line with Marvell’s forecast. The figure indicates a 52% increase year over year.Marvell surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.3%.Marvell Technology, Inc. Price and EPS Surprise Marvell Technology, Inc. price-eps-surprise | Marvell Technology, Inc. QuoteFactors to NoteMarvell’s third-quarter performance is likely to have benefited from solid demand for its networking products, primarily across the data-center and 5G infrastructure end markets.During its second-quarter conference call, Marvell stated that it anticipates strong sequential revenue growth driven by the substantial contribution from cloud data-center end market, accelerated 5G adoptions in the United States and other regions, and broad growth across multiple products.Marvell expects sequential revenue growth from the carrier end market to be driven by strong growth from wireless, partially offset by a decline from wired. It projects 20% year-over-year growth from this end market.Additionally, 5G and Cloud product ramp-ups, and revenue contributions from the recently-acquired Inphi Corporation business might have favored Marvell’s networking segment performance during the quarter under review. The consensus mark for networking revenues is pegged at $759 million, suggesting a jump of approximately 71% year over year.Record bookings and ramp-up of multiple Ethernet design wins in upcoming vehicles are anticipated to have driven revenue growth significantly in the fiscal third quarter. The automotive and industrial businesses are likely to have put up an impressive show in the quarter under review.Marvell estimates its non-GAAP gross margin to be 64-65% in the fiscal third quarter. Its non-GAAP operating expenses are estimated between $365 and $370.The company’s Storage business is expected to display year-over-year growth in the mid-teen range for the fiscal third quarter. The Zacks Consensus Estimate for storage business revenues is pegged at $373 million, indicating an improvement from the year-ago quarter’s $276 million.During its last quarterly conference call, Marvell noted that beginning from the third quarter it will discontinue reporting revenues on product group basis. Instead, the company will categorize revenues on an end-market basis enabling better transparency of key business growth drivers.However, certain ongoing supply-chain challenges are anticipated to have acted as headwinds, which in turn might have curbed Marvell’s ability to fully meet the increase in demand for some of its networking offerings.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Marvell this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.Marvell currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks With Favorable CombinationsPer our model, Lululemon Athletica LULU, Snowflake SNOW and Bank of Nova Scotia BNS have the right combination of elements to post an earnings beat in their upcoming releases.Lululemon is set to report third-quarter fiscal 2022 results on Dec 9. The stock has a Zacks Rank #2 and an Earnings ESP of +1.44%. Lululemon’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 25.2%.The Zacks Consensus Estimate for quarterly earnings is pegged at $1.39 per share, suggesting year-over-year improvement of 19.8%. LULU’s quarterly revenues are estimated to increase 28.1% year over year to $1.43 billion.Snowflake has a Zacks Rank #3 and an Earnings ESP of +1.82%. The company is scheduled to report third-quarter fiscal 2022 results on Dec 1. SNOW’s earnings have surpassed the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, the average negative surprise being 2.5%.The Zacks Consensus Estimate for Snowflake’s third-quarter bottom line is pegged at a loss of 6 cents per share, suggesting an improvement from the year-ago quarter’s loss of 28 cents. The consensus mark for revenues stands at $304 million, suggesting year-over-year growth of 90.5%.Bank of Nova Scotia has a Zacks Rank #3 and an Earnings ESP of +1.48%. The company is scheduled to report fourth-quarter 2021 results on Nov 30. BNS’ earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14.9%.The Zacks Consensus Estimate for Bank of Nova Scotia’s fourth-quarter bottom line is pegged at $1.52 earnings per share, indicating year-over-year improvement of 38.2%. The consensus mark for revenues stands at $6.24 billion, suggesting year-over-year growth of 9.9%. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Bank of Nova Scotia The (BNS): Free Stock Analysis Report Snowflake Inc. (SNOW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks17 hr. 13 min. ago

Splunk (SPLK) to Report Q3 Earnings: What"s in the Cards?

Splunk's (SPLK) second-quarter fiscal 2022 performance will likely reflect software revenue growth and customer wins. High demand for cloud-based solutions is expected to drive subscription revenues. Splunk SPLK is set to report its third-quarter fiscal 2022 results on Dec 1.For the to-be-reported quarter, the Zacks Consensus Estimate has remained steady at a loss of 53 cents per share in the past 30 days.For the fiscal third quarter, Splunk expects total revenues between $625 million and $650 million. The Zacks Consensus Estimate for total revenues is at $659.3 million, indicating 18% year-on-year growth.The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missing the same in the other two. Splunk has a trailing four-quarter earnings surprise of 878.4%, on average. Splunk Inc. Price, Consensus and EPS Surprise  Splunk Inc. price-consensus-eps-surprise-chart | Splunk Inc. Quote Factors to ConsiderSplunk witnessed a robust demand for its security, enterprise and cloud solutions, which is expected to drive the top line in the fiscal third quarter.Splunk launched a new partner program — Splunk Partnerverse Program — in October 2021, to empower its wide network of more than 2,200 partners. The program will help the partners to expand their expertise, demonstrate core competencies and showcase joint customer success.In the to-be-reported quarter, Splunk expects total annual recurring revenues between $3.10 billion and $3.14 billion. Cloud ARR is anticipated in the range of $1.31 billion-$1.33 billion.The company’s ever-expanding portfolio contributes immensely to customer growth. It revealed its latest enhancements to the Splunk observability portfolio, which includes advanced product innovations for Splunk Application Performance Monitoring (APM), Splunk Synthetic Monitoring, Splunk Real User Monitoring (RUM), Splunk Infrastructure Monitoring, Splunk Log Observer and Splunk IT Service Intelligence.Splunk announced the addition of the latest enhancements to Splunk Enterprise and the Splunk Cloud Platform. The new additions will help customers to make radical data transformations to manage data better and accelerate their cloud-driven initiatives.Splunk expanded its partner base by teaming up with Accenture ACN in October 2021. The integration of its products in partner solutions is estimated to enhance the company’s exposure, particularly among enterprise customers.What Our Model SaysPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.Splunk has an Earnings ESP of 8.89% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderPer our model, PVH Corp. PVH and AutoZone AZO also have the right combination of elements to post an earnings beat in their upcoming releases.PVH Corp. is slated to report third-quarter fiscal 2022 results on Dec 1. PVH carries a Zacks Rank #2 and has an Earnings ESP of +1.61%. You can see the complete list of today’s Zacks #1 Rank stocks here.PVH’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters, while missing on one occasion. PVH has a trailing four-quarter earnings surprise of 177.5%, on average.The Zacks Consensus Estimate for its quarterly earnings is pegged at $2.07 per share, suggesting a year-over-year improvement of 56.8%. PVH’s quarterly revenues are estimated to increase 13.4% year over year to $2.40 billion.AutoZone carries a Zacks Rank #2 and has an Earnings ESP of +2.68%. AutoZone is scheduled to report first-quarter fiscal 2022 results on Dec 7. AZO’s earnings have surpassed the Zacks Consensus Estimate in all the last four quarters. AutoZone has a trailing four-quarter earnings surprise of 18.6%, on average.The Zacks Consensus Estimate for AutoZone’s first-quarter earnings is pegged at $20.65 per share, suggesting a year-over-year decline of 11%. The consensus mark for revenues is pegged at $3.33 billion, indicating a year-over-year decline of 5.6%. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report PVH Corp. (PVH): Free Stock Analysis Report Splunk Inc. (SPLK): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks17 hr. 13 min. ago

C3.ai (AI) to Report Q2 Earnings: What"s in the Offing?

C3.ai's (AI) Q2 results are expected to reflect increased demand for the company's expanding AI product suite. C3.ai AI is set to report second-quarter fiscal 2022 results on Dec 1.For the quarter, C3.ai expects revenues between $56 million and $58 million. The Zacks Consensus Estimate for revenues currently stands at $56.8 million.For the quarter, the consensus mark for loss has remained steady at 32 cents per share over the past 30 days.Q1 at a GlanceC3.ai reported first-quarter fiscal 2022 adjusted loss of 23 cents per share, which beat the Zacks Consensus Estimate by 28.1%. The company had reported break-even earnings in the year-ago period. C3.ai, Inc. Price and EPS Surprise C3.ai, Inc. price-eps-surprise | C3.ai, Inc. Quote Revenues of $52.4 million beat the consensus mark by 2.68% and increased 29.5% year over year, driven by the rapid adoption of its model-driven AI architecture and services.C3.ai’s subscription revenues (88% of revenues) increased 29.2% year over year to $46.1 million.Let’s see how things have shaped up for C3.ai for the upcoming announcement.Factors to ConsiderC3.ai’s fiscal second-quarter results are expected to reflect strong demand for its Enterprise AI software, driven by accelerated digital modernization across major industries in response to changes in the economic environment.C3.ai is benefiting from an increasing adoption of its services, including C3 AI Suite, C3 AI Ex Machina and C3 AI CRM.Partnerships with the likes of Snowflake SNOW, Microsoft MSFT and Google is expected to have driven top-line growth in the to-be-reported quarter.C3.ai’s partnership with data cloud company Snowflake resulted in integrating the latter’s unique architecture that enables customers to run their data platforms seamlessly across multiple clouds and regions at scale with C3.ai’s robust enterprise AI development suite and its family of industry-specific enterprise AI applications.With Microsoft, C3.ai has closed business worth more than $200 million, and their joint team is working on a pipeline of projects worth more than $350 million. In partnership with Microsoft, this Zacks Rank #3 (Hold) company has won deals from the United States Missile Defense Agency, Cargill, Ball, Cummins and the United States Air Force Rapid Sustainment Office. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Q2 HighlightsDuring the to-be-reported quarter, C3.ai announced that Ball Corporation BLL has selected a couple of its solutions — C3 AI Energy Management and C3 AI Ex Machina — to help the latter achieve its sustainability targets.Ball aims to achieve 100% renewable electricity globally by 2030, with an interim target of 75% by 2025. This supplier of metal packaging also plans to achieve net zero carbon emission prior to 2050.C3.ai’s solutions will help Ball identify new opportunities that will boost energy efficiency in its operations. Ball aims to reduce absolute carbon emissions within its own operations by 55% by 2030, against a 2017 baseline. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Ball Corporation (BLL): Free Stock Analysis Report C3.ai, Inc. (AI): Free Stock Analysis Report Snowflake Inc. (SNOW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks17 hr. 13 min. ago

Top Stock Reports for Microsoft, JPMorgan Chase & Chevron

Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corporation (MSFT), JPMorgan Chase & Co. (JPM) and Chevron Corporation (CVX). Friday, November 26, 2021The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corp. (MSFT), JPMorgan Chase & Co. (JPM) and Chevron Corporation (CVX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today’s research reports here >>>Shares of Microsoft have outperformed the Zacks Computer – Software industry year-to-date (+51.9% vs. +41.7%). The Zacks analyst believes that Microsoft’s performance is benefiting from strength in its Azure cloud platform amid accelerated global digital transformation.Teams’ user growth is gaining from continuation of remote work and mainstream adoption of hybrid/flexible work model. Recovery in advertising and job market boosted LinkedIn and Search revenues. Solid uptake of new Xbox consoles is aiding the gaming segment performance. The company is also witnessing growth in user base of its different applications including Microsoft 365 suite, Dynamics and Power Platform.However, Microsoft expects Surface revenues to decline in the fiscal second quarter owing to supply chain disruptions. Increasing spend on Azure enhancements amid stiff competition in the cloud space from Amazon is likely to dent margins.(You can read the full research report on Microsoft here >>>)Shares of JPMorgan have gained +1.5% in the past six months against the Zacks Banks - Major Regional industry’s gain of +4.3%. The Zacks analyst believes that the company’s third-quarter 2021 results reflected solid capital markets performance, modest loan growth, and reserve releases.Opening new branches, strategic buyouts, global expansion and digitization initiatives, and decent mortgage banking business are expected to continue aiding financials. However, lower interest rates and the Federal Reserve’s decision to not change the same in the near term are expected to keep hurting the company’s margins and interest income. Normalization of the trading business is likely to somewhat hamper fee income growth. Steadily rising expenses also pose a concern.(You can read the full research report on JP Morgan here >>>)Shares of Chevron have underperformed the Zacks Oil and Gas - Integrated - International industry in the year to date period (+38.8% vs. +39.1%), however the Zacks analyst believes that the company is poised for capital appreciation based on a slew of tailwinds.The supermajor is considered one of the best placed global integrated oil firms to achieve sustainable production ramp-up. America’s No. 2 energy company’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin.In shareholder friendly moves, the integrated major recently hiked its dividend by 3.9% and revived the stock repurchase program. Consequently, Chevron is viewed as a preferred energy major to own now.(You can read the full research report on Chevron here >>>)Other noteworthy reports we are featuring today include Medtronic plc (MDT), Texas Instruments (TXN) and Danaher Corp. (DHR).Mark VickerySenior EditorNote: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>> Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Texas Instruments Incorporated (TXN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Medtronic PLC (MDT): Free Stock Analysis Report Danaher Corporation (DHR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 26th, 2021

BOX Gears Up to Report Q3 Earnings: What"s in the Cards?

BOX is likely to have gained from new integrations, product launches and the expanding client base in third-quarter fiscal 2022. Box, Inc. BOX is scheduled to report third-quarter fiscal 2022 results on Nov 30.For the third quarter, the company expects revenues in the range of $218-$219 million. The Zacks Consensus Estimate for the same is pegged at $218.6 million, indicating growth of 11.6% from the year-ago reported value.Further, the company anticipates non-GAAP earnings per share in the range of 20-21 cents. The consensus mark for earnings per share is pegged at 21 cents, suggesting an improvement of 5% from the previous-year reported figure.It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 25.4%.Box, Inc. Price and EPS Surprise Box, Inc. price-eps-surprise | Box, Inc. QuoteKey Factors to NoteBox’s fiscal third-quarter performance is likely to have benefited from continuous efforts to strengthen the remote workforce and digital capabilities, which provide high-level security and governance.Go-to-market strategies including price optimization and packaging, marketing initiatives, improvement in sales segmentation and territory planning might have aided its performance in the quarter under review.Further, the growing adoption of content cloud solutions by new and existing customers is expected to have remained a major tailwind.During the third quarter, Box was selected by the U.S. Air Force Reserve Command to help airmen, government civilians and contractors to access critical electronic content seamlessly. It was also picked by Lotte Corporation to make an advancement in the latter’s Digital Transformation program and strengthen collaboration infrastructure. These might have supported the quarterly performance.In addition, new integrations and product launches are anticipated to have continued aiding BOX’s to-be-reported quarter’s performance.In the third quarter, Box introduced the all-new Box Notes, an updated Box Mobile app, and deeper integrations with Microsoft 365, Slack, and Zoom. It also introduced new features to Box Shield for providing users with improved security without disruption in business workflows. These initiatives are likely to have been positives.Yet, rising cloud competition from players like Google and Dropbox is expected to have remained a concern in the quarter under discussion.Further, mounting expenses related to research & development and sales & marketing might have dented margins and profits in the quarter to be reported.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Box this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Box has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.Stocks to ConsiderHere are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.Bank of Montreal BMO has an Earnings ESP of +1.31% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Bank of Montreal is scheduled to release fourth-quarter fiscal 2021 results on Dec 3. The Zacks Consensus Estimate for BMO’s earnings is pegged at $2.49 per share, which suggests an increase of 37.6% from the prior-year reported figure.CrowdStrike CRWD has an Earnings ESP of +0.92% and a Zacks Rank of 3 at present.CrowdStrike is scheduled to release third-quarter fiscal 2022 results on Dec 1. The Zacks Consensus Estimate for its earnings is pegged at 10 cents per share, suggesting an improvement of 25% from the prior-year reported figure.Semtech Corporation SMTC, carrying a Zacks Rank #3, has an Earnings ESP of +0.28% currently.Semtech is also set to release third-quarter fiscal 2022 results on Dec 1. The Zacks Consensus Estimate for Semtech’s earnings is pegged at 72 cents per share, indicating a 53.2% rise from the year-ago reported value. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Semtech Corporation (SMTC): Free Stock Analysis Report Bank Of Montreal (BMO): Free Stock Analysis Report Box, Inc. (BOX): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 26th, 2021

What"s in the Cards for NetApp"s (NTAP) Q2 Earnings Release?

NetApp's (NTAP) fiscal second-quarter performance is likely to reflect strength in Public Cloud Services and all-flash storage business. NetApp NTAP is slated to release second-quarter fiscal 2022 earnings on Nov 30.The company anticipates non-GAAP earnings for second-quarter fiscal 2022 between $1.14 and $1.24 per share. The Zacks Consensus Estimate for earnings is at $1.22 per share, suggesting an improvement of 16.2% from the year-ago quarter’s reported figure.The company expects net revenues in the range of $1.49-$1.59 billion. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.55 billion, suggesting growth of 9.2% year over year.The company beat estimates in all of the last four quarters. It has a trailing four-quarter earnings surprise of 20%, on average.Shares of NetApp have surged 68.6% in the past year compared with the industry's return of 49.8%.NetApp, Inc. Price and EPS Surprise  NetApp, Inc. price-eps-surprise | NetApp, Inc. Quote Factors to NoteGlobally, rapid cloud migration and digital transformation initiatives by enterprises are fueling demand for cloud-based storage. Continuation of work from home, hybrid work innovation and recovery in enterprise markets are other driving factors.These factors are likely to have driven the adoption of NetApp’s hybrid multi-cloud offerings, cloud data services and private cloud offerings as well as positively impacted the top line.Strength in the company’s all-flash business is expected to have contributed to the Hybrid Cloud segment’s revenues in the to-be-reported quarter. Software product revenues are likely to have gained from the favorable mix shift to all-flash portfolio.Increasing clout of Spot by NetApp portfolio — which facilitates enterprises to make multi-cloud management easier and lower expenses— might have aided Public Cloud services business. Cloud Volumes and Cloud Insights services are also likely to have driven the company’s Public Cloud services business.Healthy uptake of Azure NetApp Files is anticipated to have bolstered Public Cloud Services business’ annualized recurring revenues (ARR) in the fiscal second quarter. Public Cloud Services recorded an ARR of $337 million, up 89% year over year and 12% quarter over quarter in the last reported quarter.Continued momentum witnessed in the company’s HCI (or hyper converged infrastructure) and cloud collaborations with the likes of Azure platform and Google Cloud might have acted as tailwinds.Synergies from the buyouts of Data Mechanics, Cloud Jumper and Talon are likely to have driven the company’s performance.Incremental gains from an uptick in the company’s NetApp Astra solution and NetApp ONTAP data management software might have had favored the top line. In the fiscal first quarter, the company unveiled ONTAP 9.9 with advanced security features along with integrated data protection functionalities among others.NetApp Astra provides application-aware data management designed for Kubernetes workloads, while NetApp ONTAP data management software helps organizations accelerate digital transformation, optimize costs and improve security.In the last reported quarter, NetApp rolled out Keystone Flex Subscription 2.1 to boost its uptake of its Storage-as-a-Service solution and streamline hybrid cloud consumption and operations.Increasing expenditures amid competition from fellow storage peers might have limited margin expansion in the to-be-reported quarter.What Our Model SaysAccording to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.NetApp has an Earnings ESP of 0.00 % and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:AutoZone AZO has an Earnings ESP of +2.68% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.AutoZone is set to report first-quarter fiscal 2022 results on Dec 7. The Zacks Consensus Estimate for earnings is pegged at $20.65 per share, which suggests an increase of 11% from the prior-year quarter’s reported figure.Shares of AutoZone have rallied 65.7% in the past year compared with the Zacks Automotive- Retail and Wholesale -parts industry’s rise of 51.5%.Lululemon Athletica LULU has an Earnings ESP of +1.44% and a Zacks Rank of 2 at present.Lululemon Athletica is scheduled to release third-quarter fiscal 2021 results on Dec 9. The Zacks Consensus Estimate for earnings is pegged at $1.39 per share, which suggests an increase of 19.8% from the prior-year quarter’s levels.Shares of Lululemon Athletica have surged 25.3% in the past year compared with the Zacks Textile Apparel industry’s rise of 24.1%.PVH Corporation PVH has an Earnings ESP of +1.61% and a Zacks Rank of 2.PVH is scheduled to release third-quarter fiscal 2021 results on Dec 1. The Zacks Consensus Estimate for earnings is pegged at $2.07 per share, indicating an increase of 56.8% from the year-ago quarter’s tally.Shares of PVH have rallied 41% in the past year compared with the Zacks Textile Apparel industry’s rise of 24.1%. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NetApp, Inc. (NTAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report PVH Corp. (PVH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 26th, 2021

Snowflake (SNOW) to Report Q3 Earnings: What"s in the Cards?

Snowflake's (SNOW) third-quarter fiscal 2022 results are likely to benefit from strong demand for the Data Cloud platform and expanded clientele. Snowflake SNOW is set to release third-quarter fiscal 2022 results on Dec 1.The Zacks Consensus Estimate for the top line is currently pegged at $304 million, up 90.5%. The consensus mark for the bottom line has been unchanged at loss of 6 cents per share over the past 30 days.Snowflake’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, beating once, with the average negative earnings surprise being 2.45%.Let’s see how things have shaped up for Snowflake prior to this announcement: Snowflake Inc. Price and EPS Surprise Snowflake Inc. price-eps-surprise | Snowflake Inc. Quote Factors to ConsiderSnowflake’s third-quarter fiscal 2022 results are expected to reflect the ongoing transition from cloud-based repositories and on-premise data centers to the Data Cloud.Strong adoption of its cloud-native solutions from Media and telecom, technology, financial services and health care customers is expected to have aided Snowflake’s top-line growth in the to-be reported quarter. Moreover, growth in exposure to the data warehousing market and an expanding enterprise customer base are expected to have driven top-line growth.At the end of the fiscal second quarter, the company had 4,990 total customers and 116 customers with trailing 12-month product revenues greater than $1 million, an increase from 104 customers in the previous quarter. The momentum is expected to have continued in the to-be-reported quarter.Key Developments in Q3In the fiscal third quarter, Snowflake and Citi C announced a strategic initiative to provide a frictionless solution for post-trade processes across the industry.The partnership combines Snowflake’s powerful and secure data sharing and multi-party permissioning capabilities, and Citi’s extensive market expertise with the industry-leading proprietary custody network spanning over 60 markets and its top global markets franchise, in Snowflake’s Data Cloud provider-agnostic cloud environment.    Snowflake announced the Financial Services Data Cloud solutionin the reported quarter.What Our Model IndicatesPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.Snowflake has an Earnings ESP of 1.82% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Other Stocks to ConsiderHere are a few other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:CrowdStrike CRWD has an Earnings ESP of +0.92% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.CrowdStrike shares have returned 9% year to date compared with the Zacks Internet Software industry’s decline of 15%. CrowdStrike has underperformed the Computer & Technology sector’s return of 26.2% year to date.Coupa Software COUP has an Earnings ESP of +41.18% and a Zacks Rank of 3.Coupa shares have declined 40.1% year to date compared with the Zacks Internet Software  industry’s decline of 15%. Coupa has underperformed the Computer & Technology sector’s return of 26.2% year to date. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Coupa Software, Inc. (COUP): Free Stock Analysis Report Snowflake Inc. (SNOW): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 26th, 2021

Microsoft (MSFT) Up 4.6% Since Last Earnings Report: Can It Continue?

Microsoft (MSFT) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Microsoft (MSFT). Shares have added about 4.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Microsoft due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Microsoft Q1 Earnings Beat, Azure Drives Top LineMicrosoft reported first-quarter fiscal 2022 earnings of $2.27 per share, which beat the Zacks Consensus Estimate by 10.2%. The bottom line also surged 25% on a year-over-year basis (up 23% at constant currency or cc).Revenues of $45.3 billion increased 22% from the year-ago quarter’s levels (up 20% at cc). The top line surpassed the Zacks Consensus Estimate by 3.3%.Robust adoption of Azure cloud offerings drove the top line. Continued momentum in Teams app and strong performances from Power Platform, LinkedIn business and the gaming segment were other tailwinds.Commercial bookings climbed 11% year over year (up 14% at cc), courtesy of consistent execution across new, add-on and renewal sales motions, noted the company.Commercial remaining performance obligation amounted to $137 billion, up 28% year over year (up 29% at cc). Commercial revenue annuity mix was 95%, up 2% year over year owing to the ongoing shift to cloud infrastructure.Microsoft cloud revenues were $20.7 billion, up 36% (up 34% at cc) year over year.Segmental DetailsThe Productivity & Business Processes segment, which includes the Office and Dynamics CRM businesses, contributed 33.2% to total revenues. Revenues increased 22% (up 20% at cc) on a year-over-year basis to $15.039 billion.Office Commercial products and cloud services revenues rose 18% (up 16% at cc) on a year-over-year basis. Office 365 commercial revenues rallied 23% (up 21% at cc). The upside can be attributed to strong installed base growth and average revenues per user (ARPU) expansion.E5 revenue growth was driven by strength in the advanced security, compliance, and voice components.Paid Office 365 Commercial seats increased 17% year over year, driven by growth across small- and medium-sized businesses as well as front-line worker offerings.Office Consumer products and cloud services revenues rose 10% (up 8% at cc), driven by growth in Microsoft 365 subscription revenues.  Microsoft 365 Consumer subscribers totaled 54.1 million at the end of the fiscal first quarter.Dynamics products and cloud services business increased 31% (up 29% at cc) year on year. Dynamics 365 revenues surged 48% (45% at cc) and the same from Power Apps was up 202% (up 197% at cc), noted Microsoft.LinkedIn revenues advanced 42% from the year-ago quarter’s levels (up 39% at cc). The better-than-expected performance was driven by strength in the Marketing solutions and Talent Solutions along with an improvement in the job market scenario.Microsoft is gaining from expanding user base of different applications including Microsoft 365 and Teams. Both solutions continue to witness record adoption. The uptick can be attributed to the continuation of work-from-home trend and mainstream adoption of hybrid work policies. The company noted that Microsoft Teams has 138 customers with more than 100,000 users of Teams and more than 3,000 clients with over 10,000 users.Microsoft’s Power Platform reported a monthly active user base of 20 million, up 76% year over year in the quarter under review.In October 2021, Microsoft rolled out the latest iteration of its Windows operating system — Windows 11.  The system features a Start Button at the center along with Teams Integration and a overhauled Microsoft Store among others.The Intelligent Cloud segment, including server and enterprise products and services, contributed 37.4% to total revenues. The segment reported revenues of $16.964 billion, up 31% (up 29% at cc) year over year.Server product and cloud services revenues rallied 35% year over year (up 33% at cc). The high point was Azure and other cloud services’ revenues, which surged 50% year over year (up 48% at cc). The upside was driven by robust growth in consumption-based business.On-premises server products revenues increased 14% (up 13% at cc) year over year, on strong demand for hybrid offerings.Enterprise mobility and security installed base revenues rallied 30% to more than 196 million seats.Enterprise service revenues increased 9% (up 8% at cc) in the reported quarter, owing to growth in Microsoft Consulting Services and Enterprise Support Services.More Personal Computing segment, which primarily comprises Windows, Gaming, Devices and Search businesses, contributed 29.4% to total revenues. Revenues were up 12% (up 11% at cc) year over year to $13.314 billion, driven by strength in gaming and Windows OEM.Windows commercial products and cloud services revenues increased 12% year over year (up 10% at cc), on the back of higher customer adoption of Microsoft 365 offerings.Windows OEM revenues was up 10% on a year-over-year basis owing to strength in the PC market.Search advertising revenues, excluding traffic acquisition costs (TAC), increased 40% (up 39% at cc) on recovering advertising market.Surface revenues fell 17% (down 19% at cc) from the year-ago quarter’s levels due to tougher year-over-year comparisons.Gaming revenues increased 16% (up 14% at cc) driven by increased engagement levels. Revenues from Xbox hardware soared 166% (up 162% at cc), driven by the new consoles.Xbox content and services revenues was up 2% year over year (relatively unchanged at cc), owing to higher Game Pass subscriptions and demand for first party titles. The uptick was partly offset by tougher year-over-year comparisons and a decline in third party titles.Operating ResultsGross margin increased 21% (up 19% in cc) to $31.7 billion. This can be attributed to revenue growth across the Productivity & Business Processes, Intelligent Cloud and More Personal Computing segments.Non-GAAP gross margin (in percentage terms) of 70% declined slightly on a year-over-year basis, due to change in accounting estimate, noted the company. Microsoft cloud gross margin was 71%, also slightly down year over year.Operating margin expanded 200 bps on a year-over-year basis to 45%.Productivity & Business Process operating income rose 33% (up 29% at cc) to $7.58 billion. Intelligent Cloud operating income surged 39% (up 37% at cc) to $7.56 billion.More Personal Computing operating income rallied 7% (up 5% at cc) to $5.1 billion. Gross margin (as a percentage of segment income) declined on a year-over-year basis, as sales mix moved to Gaming.Balance Sheet & Free Cash FlowAs of Sep 30, 2021, Microsoft had total cash, cash equivalents and short-term investments balance of $130.6 billion compared with $130.3 billion as of Jun 30, 2021. As of Sep 30, 2021, long-term debt (including current portion) was $53.29 billion compared with $58.15 billion as of Jun 30, 2021.Operating cash flow during the reported quarter was $24.5 billion compared with $22.7 billion in the previous quarter. Free cash flow during the quarter was $18.7 billion compared with $16.3 billion in the prior quarter.In the reported quarter, the company returned $10.9 billion to shareholders in the form of share repurchases ($6.2 billion) and dividends payouts ($4.7 billion).GuidanceFor second-quarter fiscal 2022, Productivity and Business Processes revenues are anticipated between $15.7 billion and $15.95 billion. Strong upsell opportunity for Microsoft E5 and momentum in Office 365 is expected to drive growth in Office commercial.On-premises business is anticipated to decline in high-teens due to customers’ shift to cloud.LinkedIn revenue growth is anticipated to be in mid-30% range driven by improving ad and jobs market and increasing engagement levels. Revenue growth for Dynamics is expected to be similar as in the fiscal first quarter driven by continued Dynamics 365 momentum and Power Apps.Office consumer revenues are expected to witness growth in mid teens’ range driven by increases in Microsoft 365 subscription revenues.Intelligent Cloud revenues are anticipated between $18.1 billion and $18.35 billion. Azure's revenue growth is likely to reflect continued strength in the consumption-based services.Gains from Microsoft 365 suite adoption is expected to boost growth in per-user business. However, the company noted that it was expecting some moderation in growth given the large size of the installed base.For Enterprise Services business, management expects revenues to be up in high-single digits. On-premises server business is projected to grow in the mid-single digits range driven by demand for hybrid offerings.More Personal Computing revenues are expected between $16.35 billion and $16.75 billion. The company expects overall Windows OEM revenues to increase in the low to mid-teens’ range.Windows commercial products and cloud services are expected to grow in low double-digit range driven by demand for Microsoft 365 and advanced security solutions.Search advertising revenues, excluding TAC, are anticipated to grow in the low to mid-20% range on improving advertising market. The company noted that persistent supply chain disruptions likely to affect ad budgets and might put a dent on the performance.Surface revenues are anticipated to decline in the single digits on a year-over-year basis, due to supply chain disruption.Gaming revenues are anticipated to be up in high-single digits marred by tougher year over year comparisons. Xbox content and services revenues are projected to increase in the mid-teens range owing to higher engagement levels on the Xbox platform and the launch of new AAA titles. Demand for Xbox Series X and S will continue to be negatively impacted by supply issues.Management expects COGS between $17 billion and $17.2 billion. Operating expenses are anticipated in the range of $12.7-$12.8 billion.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in fresh estimates.VGM ScoresCurrently, Microsoft has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Microsoft has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksNov 25th, 2021

Why Is F5 (FFIV) Up 7.4% Since Last Earnings Report?

F5 (FFIV) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for F5 Networks (FFIV). Shares have added about 7.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is F5 due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. F5 Networks Q4 Earnings Top Estimates, Outlook ImpressiveF5 Networks reported better-than-expected fourth-quarter fiscal 2021 results. The company posted fiscal fourth-quarter non-GAAP earnings per share of $3.01, beating the Zacks Consensus Estimate of $2.77.Moreover, the quarterly earnings came in higher than management’s guidance of $2.68-$2.80 per share. Also, the non-GAAP earnings increased 23.9% from the year-ago quarter, mainly on solid revenues and efficient cost management.Non-GAAP revenues climbed 11% year on year to $682 million, surpassing the Zacks Consensus Estimate of $673.6 million on robust software and system growth. The top-line figure also comes in higher than the company’s guided range of $660-$680 million.Revenue DetailsProduct revenues (50% of total revenues), which comprise Software and Systems sub-divisions, went up 21%, year on year, to $340 million. Software sales jumped 35% year over year to $152 million, accounting for approximately 45% of the total Product revenues. System revenues climbed 12% to $188 million and accounted for the remaining 55% of the total Product revenues.Global Service revenues (50% of total revenues) increased 2% to $342 million.Additionally, the company noted that it is moving ahead with its strategy of transitioning the business into a subscription-based model. During the fiscal fourth quarter, subscriptions represented 80% of Software revenues, up from the previous quarter’s 78%.Furthermore, F5 Networks registered sales growth across all regions, with the Americas, EMEA and APAC witnessing year-over-year increase of 11%, 11% and 9%, respectively. Revenue contributions from the Americas, EMEA and APAC regions were 59%, 24% and 17%, respectively.Customer-wise, Enterprises, Service providers and Government represented 69%, 13% and 18%, respectively, of product bookings.MarginsThe GAAP gross margin contracted 70 basis points (bps) to 81.1%. The non-GAAP gross margin shrunk 70 bps to 83.7%.The GAAP operating expenses flared up 5.7% year on year to $427 million, while the non-GAAP operating expenses rose 4.5% to $350 million. The company’s GAAP operating margin expanded 250 bps to 18.5%, while the non-GAAP operating margin improved 230 bps to 32.4%.Balance Sheet & Cash FlowF5 Networks exited the July-September quarter with cash and investments of $911 million compared with the previous quarter’s $863 million.During the fiscal fourth quarter, the company generated $197 million of operating cash flow. During the reported quarter, it repurchased shares worth $100 million through Accelerated Share Repurchase transaction.During fiscal 2021, the company generated operating cash flow of $645 million and bought back $500 million worth of its common stock.OutlookThe company issued an upbeat business outlook for the first quarter of fiscal 2022.For the fiscal first quarter, F5 Networks projects non-GAAP revenues at $665-$685 million (mid-point $675 million). The Zacks Consensus Estimate for revenues is pegged at $667.8 million.The company anticipates non-GAAP earnings per share in the $2.71-$2.83 band (mid-point $2.77). The Zacks Consensus Estimate is pinned at $2.73.For fiscal 2022, F5 Networks expects revenues to grow 8-9% on a year-over-year basis, including a 35-40% increase in software sales.We believe surging demand for multi-cloud application services will be a key growth driver during the fiscal first quarter. In addition, solid demand for software solutions is a tailwind. Rising traction from subscription and Enterprise License Agreement (ELA) offerings is another driving factor.Apart from this, F5 Networks and NGINX’s first combined solution — Controller 3.0 — will likely boost the total addressable market and deal sizes by spending more use cases across the DevOps and Super-NetOps customer profiles.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates review.VGM ScoresAt this time, F5 has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, F5 has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report F5, Inc. (FFIV): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksNov 25th, 2021

Salesforce (CRM) Set to Report Q3 Earnings: What"s in Store?

Salesforce's (CRM) Q3 performance is likely to reflect the benefits from strategic acquisitions and an accelerated digital transformation, boosting demand for cloud-based solutions. Salesforce CRM is scheduled to release third-quarter fiscal 2022 results on Nov 30.For the fiscal third quarter, the company projects total revenues between $6.78 billion and $6.79 billion. Also, non-GAAP earnings are expected between 91 cents and 92 cents per share.The Zacks Consensus Estimate for revenues is pegged at $6.79 billion, indicating an increase of 25.3% from the year-ago quarter’s reported figure.The consensus mark for earnings has remained unrevised at 92 cents per share for the past 60 days. The bottom line is expected to decrease 47.1% year over year.Salesforce’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 68.5%.Let’s see how things have shaped up before this announcement.salesforce.com, inc. Price and EPS Surprise salesforce.com, inc. price-eps-surprise | salesforce.com, inc. QuoteFactors to ConsiderSalesforce’s third-quarter performance is likely to have benefited from the robust demand environment as customers have been undergoing a major digital transformation. The customer relationship management software provider’s focus on introducing more aligned products per customer needs is expected to have boosted its top line in the quarter under review.Salesforce’s ability to offer integrated solutions for customers’ business problems is likely to have been a key growth driver. The firm’s products like Trailhead and myTrailhead are helping companies through their transformation processes along with an increasing business scale with modern technology.Growth across its four major cloud service offerings, Sales Cloud, Service Cloud, Platform and other plus Marketing & Commerce Cloud, is anticipated to have boosted Salesforce’s subscription and supported its revenue stream, a major catalyst.The company’s quarterly performance is also likely to have gained from its firm focus on building and expanding relationships with the leading brands across industries and geographies. Also, significant growth opportunities in the public sector are expected to have been a tailwind during the quarter under review.The acquisitions of the likes of Slack, Mobify and Vlocity are anticipated to have aided the company’s top-line growth during the to-be-reported quarter.However, a decline in software spending by small & medium businesses amid the macroeconomic uncertainty due to the COVID-19 pandemic might have affected Salesforce’s fiscal third-quarter performance.Further, stiff competition from Oracle and Microsoft is a concern along with the forex headwinds. Also, increasing investments in International expansions and data centers might have eroded the company’s profitability during the to-be-reported quarter.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Salesforce this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.Though Salesforce currently carries a Zacks Rank #2, it has an Earnings ESP of -0.40%.You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks With Favorable CombinationsPer our model, PVH Corporation PVH, AutoZone AZO and Lululemon Athletica LULU have the right combination of elements to post an earnings beat in their upcoming releases.PVH Corporation is slated to report third-quarter fiscal 2022 results on Dec 1. Shares of PVH Corp. sport a Zacks Rank #1 and have an Earnings ESP of +1.61% at present. PVH’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 177.5%.The Zacks Consensus Estimate for quarterly earnings is pegged at $2.07 per share, suggesting a year-over-year improvement of 56.8%. PVH’s quarterly revenues are estimated to increase 13.4% year over year to $2.40 billion.AutoZone carries a Zacks Rank #2 and has an Earnings ESP of +2.68%. The company is scheduled to report first-quarter fiscal 2022 results on Dec 7. AutoZone’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 18.6%.The Zacks Consensus Estimate for AZO’s first-quarter earnings is pegged at $20.65 per share, representing a year-over-year decline of 11%. The consensus mark for revenues is pinned at $3.33 billion, reflecting a year-over-year decrease of 5.6%.Lululemon currently carries a Zacks Rank #2 and has an Earnings ESP of +1.44%. Lululemon is expected to report its third-quarter fiscal 2022 results on Dec 9. LULU’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 25.2%.The Zacks Consensus Estimate for Lululemon’s third-quarter earnings is pinned at $1.39 per share, reflecting year-over-year growth of 19.8%. LULU is estimated to report revenues of $1.43 billion, which suggests an increase of 28.1% from the year-ago quarter. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report salesforce.com, inc. (CRM): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report PVH Corp. (PVH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 25th, 2021

Here"s How Five Below (FIVE) is Placed Ahead of Q3 Earnings

Five Below's (FIVE) third-quarter results are likely to reflect favorable pricing strategy, enhanced merchandise assortment and improved digital capabilities. Five Below, Inc. FIVE is likely to register an increase in the top line when it reports third-quarter fiscal 2021 results on Dec 1, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $562.7 million, suggesting an improvement of 18.1% from the prior-year reported figure.Meanwhile, the Zacks Consensus Estimate for third-quarter earnings per share has been stable at 29 cents over the past 30 days. The figure indicates a decline of 19.4% from the prior-year quarter.Notably, the bottom line of this extreme-value retailer for tweens, teens and beyond has surpassed the Zacks Consensus Estimate by a margin of 3.6% in the last reported quarter.Factors to NoteFive Below’s third-quarter performance is likely to have benefited from its focus on providing trend-right products, strengthening digital capabilities and delivering better WOW products. The company has been enhancing in-store experience to draw traffic and expand the customer base.Without doubt, the company’s favorable pricing strategy, and commitment toward improvising merchandise assortment and achieving efficient cost structure have been commendable. It has been digitizing vendor transactions, implementing core merchandizing platform and applying cloud-based data and analytics to analyze demand, and accordingly manage inventory.On its last earnings call, management guided net sales in the range of $550 million to $565 million for the third quarter, which suggests an increase from $476.6 million in the year-ago period. It forecast mid-single digit growth in comparable sales.Clearly, aforementioned factors raise optimism about the outcome of the results. However, margins still remain an area to watch. Impact of costs associated with digital fulfilment and supply chain cannot be ruled out.The company is navigating through a tight supply chain environment across the retail landscape, resulting in higher inbound freight costs. These are likely to put pressure margins, and in turn the bottom line. The company had projected earnings between 23 cents and 30 cents a share for the quarter under discussion, which is down from 36 cents reported in the year-ago period.Five Below, Inc. Price, Consensus and EPS Surprise Five Below, Inc. price-consensus-eps-surprise-chart | Five Below, Inc. QuoteWhat the Zacks Model UnveilsOur proven model does not conclusively predict an earnings beat for Five Below this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.Five Below has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks With Favorable CombinationHere are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:PVH Corp. PVH currently has an Earnings ESP of +1.61% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings of $2.07 per share suggests growth of 56.8% from the year-ago quarter’s reported figure.PVH Corp.’s top line is expected to rise year over year. The consensus mark for revenues is pegged at $2.40 billion, indicating an increase of 13.4% from the figure reported in the year-ago quarter. PVH has a trailing four-quarter earnings surprise of 177.5%, on average.G-III Apparel GIII currently has an Earnings ESP of +8.14% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.79, which suggests growth of 36.6% from the year-ago quarter’s reported figure.G-III Apparel’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, which indicates an improvement of 22.4% from the figure reported in the prior-year quarter. GIII has a trailing four-quarter earnings surprise of 180.5%, on average.Costco COST currently has an Earnings ESP of +1.00% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.59 per share suggests growth of 13.1% from the year-ago quarter’s reported figure.Costco’s top line is also expected to rise year over year. The consensus mark for revenues stands at $49.6 billion, indicating an increase of 14.8% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Costco Wholesale Corporation (COST): Free Stock Analysis Report PVH Corp. (PVH): Free Stock Analysis Report GIII Apparel Group, LTD. (GIII): Free Stock Analysis Report Five Below, Inc. (FIVE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 25th, 2021

VMware (VMW) Q3 Earnings And Revenues Surpass Estimates

VMware's (VMW) third-quarter fiscal 2022 results reflect strong top-line growth, driven by solid Subscription & SaaS revenues. VMware’s VMW third-quarter fiscal 2022 non-GAAP earnings of $1.72 per share beat the Zacks Consensus Estimate by 11.7% and increased 3.6% on a year-over-year basis.Revenues of $3.188 billion surpassed the consensus mark by 2.1% and increased 11.3% on a year-over-year basis.Following the announcement, shares are down 2% in the premarket trading on Nov 24. In the past year, shares have declined 17.8% compared with industry’s rally of 48.8%.VMware, Inc. Price, Consensus and EPS Surprise  VMware, Inc. price-consensus-eps-surprise-chart | VMware, Inc. Quote Top-Line DetailsRegion-wise, U.S. revenues (49.6% of revenues) increased 7.9% year over year to $1.582 billion. International revenues (50.4%) rose 14.9% from the year-ago quarter’s levels to $1.606 billion.Services revenues (52% of revenues) rose 7% year over year to $1.658 billion. Software Maintenance revenues (81.7% of Services revenues) moved up 5.6% to $1.354 billion. Professional Services revenues (18.3% of Services revenues) were $304 million, up 13.9% year over year.Total License and Subscription & SaaS revenues (48% of revenues) increased 16.3% from the year-ago quarter’s levels to $1.53 billion.License revenues (46.4% of License and Subscription & SaaS revenues) increased 11.1% year over year to $710 million.Subscription & SaaS revenues (53.6% of segment revenues) increased 21% year over year to $820 million, driven by strong growth in VCPP, Tanzu, end-user computing, Carbon Black and VMware Cloud on AWS.At the end of the third quarter, ARR for Subscription & SaaS was $3.31 billion, up 25% from the year-ago quarter’s figures.VMware continued to witness momentum in the Tanzu platform across key verticals, including financial services.Operating DetailsResearch & development (R&D) expenses, as a percentage of revenues, increased 10 basis points (bps) year over year to 20.1%.Sales & marketing (S&M) expenses, as a percentage of revenues, increased 70 bps on a year-over-year basis to 28.7%.General & administrative (G&A) expenses, as a percentage of revenues, increased 30 bps to 6.3%.Non-GAAP operating margin contracted 170 bps on a year-over-year basis to 29.3% in the reported quarter.Balance Sheet & Cash FlowAs of Oct 29, 2021, VMware’s cash & cash equivalents were $12.5 billion compared with $5.86 billion as of Jul 30, 2021.Total debt (including the current portion of long-term debt) was $10.67 billion as of Oct 29, 2021.Operating cash flow was $1.09 billion compared with $864 million reported in the previous quarter.Free cash flow was $984 million compared with $777 million reported in the previous quarter.Revenue Performance Obligation increased 9% year over year to $11.12 billion.Some of the Q3 HighlightsIn October 2021, at VMworld 2021 event, VMWare rolled out VMware Edge product portfolio to aid enterprises to deploy, manage and safeguard edge-native apps across several cloud environments at the edge and far edge locations.On the same day, VMware debuted VMware Cross-Cloud services to facilitate customers with the ability to build, run and extend tight security to apps across multiple cloud locations with ample flexibility. The company also announced the addition of new functionalities to the Tanzu Platform.VMware also added several advancements made to its Telco Cloud Platform to help service providers accelerate their multi-cloud transformation. The company unveiled several updates for its Radio Access Network (RAN) portfolio and debuted the VMware RAN Intelligent Controller solution.VMware announced that it was adjudged as a leader by research firm IDC in its latest Worldwide Cloud System and Service Management Software Market Shares, 2020: Growth Continues for Top Vendors report.GuidanceFor fourth-quarter fiscal 2022, VMware expects revenues of nearly $3.51 billion. The projection suggests 7% year-over-year growth. Subscription & SaaS and License revenues are expected to be $1.875 billion, indicating nearly 9% growth year over year.Non-GAAP operating margin is anticipated to be 30.4%, while non-GAAP earnings are expected to be $1.96 per share for the fiscal fourth quarter.For fiscal 2022, VMware expects revenues of nearly $12.83 billion, suggesting 9% year-over-year growth.Subscription & SaaS and License revenues are now expected to be $6.305 billion, indicating nearly 12% growth year over year. The company had projected Subscription & SaaS and License revenues to be $6.27 billion, indicating nearly 11.5% growth year over year.Non-GAAP operating margin is now anticipated to be 30%, while non-GAAP earnings are expected to be $7.19 per share for fiscal 2022. The company had projected non-GAAP operating margin to be 29% and non-GAAP earnings to be $6.90 per share.Cash flow from operations, capital expenditures and free cash flow is expected to be $4.10 billion, $380 million and $3.72 billion, respectively.Zacks Rank & Stocks to ConsiderCurrently, VMware carries a Zacks Rank #3 (Hold).Some better-ranked stocks worth consideration in the broader technology space includes Arrow Electronics ARW, Alphabet GOOGL and Monolithic Power Systems MPWR.While Alphabet sport a Zacks Rank #1 (Strong Buy), Arrow Electronics and Monolithic carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Arrow Electronics’ shares have gained 33.2% on a year-to-date basis. The long-term earnings growth rate for the company is currently projected at 27.4%.Alphabet’s shares have surged 66.4% on a year-to-date basis. The long-term earnings growth rate for the company is currently projected at 25.8%.Monolithic’s shares have rallied 49.1% on a year-to-date basis. The long-term earnings growth rate for the company is currently projected at 25%. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VMware, Inc. (VMW): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2021

IDEX (IEX) Enters Into Deal to Acquire Nexsight for $120M

IDEX's (IEX) acquisition of Nexsight will enable it to strengthen its iPEK and ADS business units in the wastewater inspection market. IDEX Corporation IEX yesterday announced that it has entered into a deal to buy Nexsight, LLC and its WinCan, Envirosight, MyTana and Pipeline Renewal Technologies businesses. The deal is valued at $120 million in cash.IDEX's shares inched up 0.5% yesterday, eventually closing the trading session at $236.37.Headquartered in Randolph, NJ, Nexsight, through its business units, specializes in providing a comprehensive line of wastewater inspection solutions to several sectors, including utility, engineering, municipality and transportation. The company’s innovative technology is also utilized in the sewer rehabilitation market.Acquisition RationaleThe deal is in sync with IDEX’s policy of acquiring businesses for expanding its presence and customer base in the intelligent water technologies market. The inclusion of Nexsight’s expertise in wastewater inspection space supported by its strong product portfolio and innovative capabilities will augment and boost IDEX’s iPEK and ADS business units.The buyout will enable IDEX to expand its presence in North America and include iPEK’s major channel partner and its advanced wastewater video inspection software platform. This is also likely to enhance the capabilities of the cloud-based wastewater system monitoring and predictive analytics platform at ADS.Upon completion of the deal, Nexsight will be integrated into the water group of IDEX’s Fluid & Metering Technology segment. The segment provides displacement pumps, injectors, flow meters and related controls for the movement of liquids and gases in various end markets, including general industrial, chemical, agricultural and water & wastewater. The segment contributed 35.3% to IDEX’s total revenues in the third quarter of 2021.Other Notable AcquisitionsIn March 2021, IDEX acquired Abel Pumps L.P., which has been strengthening its pump platform. Also, it added Airtech Group and US Valve Corporation and other entities to its portfolio in June. Acquisitions contributed 1% and 7% to revenue growth in the second and third quarters of 2021, respectively.Zacks Rank, Estimates and Price PerformanceThe company, with $17.9-billion market capitalization, currently carries a Zacks Rank #3 (Hold). It is poised to benefit from a diversified business structure, strengthening end markets and buyouts in the quarters ahead. However, weakness in the energy, chemical, automotive, and fire-rescue markets might affect its performance.The Zacks Consensus Estimate for IDEX’s earnings is pegged at $6.35 for 2021 and $7.10 for 2022, suggesting growth of 0.2% and 0.7% from the respective 30-day-ago figures.Image Source: Zacks Investment ResearchThe company’s shares have gained 5.3% against a 0.4% decline recorded by the industry in the past three months.Key PicksSome better-ranked companies from the Zacks Industrial Products sector are discussed below.SPX FLOW, Inc. FLOW presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 40.42%, on average.In the past 30 days, SPX FLOW’s earnings estimates have increased 8% for 2021 and 17.9% for 2022. Its shares have gained 9.2% in the past three months.Welbilt, Inc. WBT presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 172.50%, on average.Welbilt’s earnings estimates have increased 3.2% for 2021 and 5.9% for 2022 in the past 30 days. Its shares have gained 1.3% in the past three months.Applied Industrial Technologies, Inc. AIT presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 26.71%, on average.Applied Industrial’s earnings estimates have increased 1.9% for fiscal 2022 (ending June 2022) and 2.2% for fiscal 2023 (ending June 2023) in the past 30 days. Its shares have gained 20.4% in the past three months. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report IDEX Corporation (IEX): Free Stock Analysis Report SPX FLOW, Inc. (FLOW): Free Stock Analysis Report Welbilt, Inc. (WBT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2021

Veeva Systems (VEEV) to Post Q3 Earnings: What"s in Store?

Veeva Systems' (VEEV) fiscal third-quarter results are likely to reflect solid show by its segments and robust product portfolio. Veeva Systems Inc. VEEV is scheduled to release third-quarter fiscal 2022 results on Dec 1, after the closing bell.In the last reported quarter, the company delivered an earnings surprise of 9.3%. It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 13.9%.Q3 EstimatesThe Zacks Consensus Estimate for the company’s fiscal third-quarter earnings is pegged at 88 cents, suggesting an improvement of 12.8% from the year-ago quarter. The same for revenues stands at $465.3 million, indicating growth of 23.3% from the prior-year reported figure.Factors to NoteVeeva Systems unique product portfolio, comprising Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData, might have driven the fiscal third-quarter performance.The company’s first cloud-based content management system, built specifically for life sciences — Veeva Vault — is likely to have added new Vault customers in the quarter to be reported.Strength across each Vault application area, including continued momentum in more established products and early success for new products, may have favored the to-be-reported quarter’s performance.Veeva Systems Inc. Price and EPS Surprise Veeva Systems Inc. price-eps-surprise | Veeva Systems Inc. QuoteVeeva Commercial Cloud and Veeva Vault are likely to have contributed to Professional Service and Other segment’s revenues in the fiscal third quarter.Strong performance across Veeva Systems’ segments — Subscription Service and Professional Service and Others — is likely to get reflected in the to-be-reported quarter’s revenues. The company expects revenues between $464 million and $466 million in third-quarter fiscal 2022.In September 2021, Veeva Systems entered into a strategic technology deal with Leo Pharma to facilitate scalable digital trials that are paperless and focus on patients. In the same month, the company announced a new cloud application — Veeva Vault LIMS — with the aim of modernizing quality control lab operations. Vault LIMS, which is expected to be available in the second half of 2022, is part of the Vault Quality Suite that includes Vault QMS, Vault QualityDocs and Vault Training.Further in September, the company announced that Emmes is standardizing on Veeva Development Cloud applications throughout functional areas to drive better speed and compliance.These positive developments are likely to get reflected in the fiscal third-quarter results.However, escalating expenses on the operational side might have weighed on Veeva Systems’ margins.What Our Quantitative Model SuggestsPer our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.Earnings ESP: Veeva Systems has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.Zacks Rank: It carries a Zacks Rank #3.Peer ReleasesSome better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. TMO, Medpace Holdings, Inc. MEDP, and AngioDynamics, Inc. ANGO.Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.Thermo Fisher has an estimated long-term growth rate of 14%. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%.Medpace, currently carrying a Zacks Rank #1, reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%.Medpace has an estimated long-term growth rate of 16.4%. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 11.9%.AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%. Presently, the company sports a Zacks Rank #1.AngioDynamics’ earnings yield of 0.1% compares favorably with the industry’s (2.8%). The company surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 125.6%. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngioDynamics, Inc. (ANGO): Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report Veeva Systems Inc. (VEEV): Free Stock Analysis Report Medpace Holdings, Inc. (MEDP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2021

Nutanix (NTNX) Q1 Loss Narrower Than Expected, Revenues Beat

Nutanix (NTNX) delivers record revenue growth and highest ACV billings in the first quarter of fiscal 2022, primarily benefiting from strong demand for its hybrid multi-cloud software solutions. Nutanix NTNX reported first-quarter fiscal 2022 non-GAAP loss of 22 cents per share, significantly narrower than the Zacks Consensus Estimate of a loss of 76 cents per share. The figure was narrower than the year-ago quarter’s loss of 44 cents per share.Nutanix reported revenues of $378.5 million beating the Zacks Consensus Estimate of $368 million. The top line improved 21% from the year-earlier quarter’s $312.8 million. The company noted that the average contract term length declined to 3.1 year from 3.5 years in the year-ago quarter primarily due to higher federal business, which usually have shorter contract term length.During the fiscal first-quarter, Nutanix’s Annual Contract Value (“ACV”) billings jumped 33% to $183.3 million. ACV billings witnessed the highest year-over-year growth rate over the past two and a half years.Nutanix Price, Consensus and EPS Surprise Nutanix price-consensus-eps-surprise-chart | Nutanix QuoteTop-Line DetailsProduct revenues (47.6% of revenues) increased 15.6% year over year to $180.1 million. Support, entitlements & other services revenues (52.4% of revenues) grew 26.4% to $198.4 million.The top line witnessed the highest growth rate in over three years. It was primarily driven by growth in the company’s core hyper-converged infrastructure software and the solid adoption of its new capabilities. Nutanix continues to witness strong adoption of its hybrid multi cloud solutions across Fortune 100 and Global 2000 companies.Additionally, Nutanix benefited from strong adoption of its hybrid cloud solution on Amazon’s AMZN cloud platform, Amazon Web Services (“AWS”). Large customers like a federal civilian agency, a national retailer and a Europe-based multinational pharmaceutical company utilized clusters on Amazon’s AWS through the company's cloud platform.Subscription revenues (89.3% of revenues) rose 21.5% from the year-ago quarter to $337.9 million. Professional services revenues (6.4% of revenues) jumped 74.5% to $24.1 million.Non-Portable Software revenues (3.8% of revenues) plunged 28.5% year over year to $14.3 million. Hardware revenues (0.6% of revenues) soared 196.7% to $2.2 million.Billings were up 18.8% year over year to $398 million. The company’s run-rate ACV grew 23% year over year to $1.59 billion. Annual Recurring Revenue (“ARR”) climbed 67% to $952.6 million.During the fiscal first quarter, the company added 570 customers, bringing the total number of clients to 20,700. New ACV bookings from Emerging Products witnessed year-over-year growth of 11%.Operating DetailsDuring the fiscal first quarter, Nutanix’s non-GAAP gross margin expanded 20 basis points (bps) year over year to 82.1%.Non-GAAP operating expenses increased 3% year over year to $352.6 million.Balance Sheet & Cash FlowAs of Oct 31, 2021, cash and cash equivalents plus short-term investments were $1.28 billion, up from $1.21 billion at the end of fourth-quarter fiscal 2021.During the first quarter fiscal 2022, cash used in operating activities was $6.9 million and free cash outflow was $1.9 million.OutlookFor second-quarter fiscal 2022, Nutanix expects ACV billings between $195 million and $200 million. Revenues are estimated between $400 million and $410 million.Non-GAAP gross margin is estimated to be approximately 82% to 82.5%. Non-GAAP operating expenses are expected in the range $360 million to $365 million.For full fiscal 2022, Nutanix expects ACV billings between $740 million and $750 million. Revenues are estimated in the range of $1.62 billion to $1.63 billion for the full year.Non-GAAP gross margin is estimated to be approximately 82%, while non-GAAP operating expenses are expected in the range $1.48-$1.49 billion during fiscal 2022.Zacks Rank & Stocks to ConsiderNutanix currently carries a Zacks Rank #3 (Hold), while Amazon has a Zacks Rank #5 (Sell). Shares of NTNX and AMZN have appreciated 2.2% and 9.9% in the year-to-date (“YTD”) period, respectively.Some better-ranked stocks in the broader technology sector are Advanced Micro Devices AMD and Qualcomm QCOM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 8 cents to 76 cents per share over the past 30 days. For 2021, earnings estimates have moved north by 15 cents to $2.65 per share in the last 30 days.Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 63.5% in the YTD period.The consensus mark for Qualcomm’s first-quarter fiscal 2022 earnings has been raised to $3.01 per share from $3 in the past seven days. For fiscal 2022, earnings estimates have been revised upward by 5 cents to $10.49 per share in the past seven days.Qualcomm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%. Shares of QCOM stock have gained 18.8% YTD. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Nutanix (NTNX): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksNov 24th, 2021

Pinduoduo (PDD) to Report Q3 Earnings: What"s in Store?

Pinduoduo's (PDD) third-quarter results are expected to reflect gains from e-commerce and agriculture strength. However, uncertainties related to the pandemic are likely to have been headwinds. Pinduoduo Inc. PDD is scheduled to report third-quarter 2021 results on Nov 26.For the third quarter, the Zacks Consensus Estimate for sales is pegged at $4.31 billion, indicating a jump from $2.09 billion reported in the prior-year quarter.The consensus mark for earnings per share stands at 2 cents, whereas Pinduoduo reported a loss of 10 cents in the year-ago quarter.Pinduoduo’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 119.32%.Pinduoduo Inc. Sponsored ADR Price and EPS Surprise Pinduoduo Inc. Sponsored ADR price-eps-surprise | Pinduoduo Inc. Sponsored ADR QuoteFactors to NotePinduoduo’s strength across the e-commerce business is likely to have contributed significantly to its third-quarter performance.A strong momentum across its online marketing services and growing merchandise sales are expected to have continued driving top-line growth in the quarter under review.Additionally, an improving scenario in the agriculture sector is expected to have remained a major tailwind during the to-be-reported quarter.A growing momentum across PDD’s Duo Duo Grocery service is likely to have contributed well.Pinduoduo’s strengthening efforts toward integrating online traffic with offline retail experiences are likely to have benefited the third-quarter results.Increasing advertising demand from merchants on PDD’s platform is anticipated to have continued benefiting its performance in the quarter under review.However, accelerating costs related to the coronavirus pandemic are anticipated to have negatively impacted the margin expansion in the to-be-reported quarter.Moreover, increasing payment processing fees, and higher costs for cloud services and expenses associated with online marketing services, are expected to have been concerning.What Our Model SaysOur proven model doesn’t conclusively predict an earnings beat for Pinduoduo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Pinduoduo currently has an Earnings ESP of 0.00% and a Zacks Rank #3.Stocks to ConsiderHere are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.Bank of Montreal BMO has an Earnings ESP of +0.51% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Bank of Montreal is scheduled to release fourth-quarter fiscal 2021 results on Dec 3. The Zacks Consensus Estimate for BMO’s earnings is pegged at $2.47 per share, which suggests an increase of 36.5% from the prior-year reported figure.Costco Wholesale COST has an Earnings ESP of +1.00% and a Zacks Rank of 3 at present.Costco is scheduled to release first-quarter fiscal 2022 results on Dec 9. The Zacks Consensus Estimate for COST’s earnings is pegged at $2.59 per share, suggesting an increase of 13.1% from the prior-year reported figure.Bank of Nova Scotia BNS has an Earnings ESP of +1.48% and is Zacks #3 Ranked at present.Bank of Nova Scotia is set to report fourth-quarter fiscal 2021 results on Nov 30. The Zacks Consensus Estimate for BNS’ earnings is pegged at $1.52 per share, which suggests an increase of 38.2% from the prior-year reported figure. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Costco Wholesale Corporation (COST): Free Stock Analysis Report Bank Of Montreal (BMO): Free Stock Analysis Report Bank of Nova Scotia The (BNS): Free Stock Analysis Report Pinduoduo Inc. Sponsored ADR (PDD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2021

2 Great Stocks to Buy in December for Long-Term Growth

Investors likely want to remain on the hunt for strong stocks to buy as we approach December. And why not consider two stocks trading well off their highs that are poised to grow within vital areas of the economy... The market pulled back slightly ahead of the Thanksgiving holiday. But the S&P 500, the Dow, and the Nasdaq all still trade within touching distance of their records, driven higher recently by mega-cap technology stocks. And the benchmark index popped 0.23% on Wednesday, while the tech-heavy index climbed 0.44%, with the Dow barely in the red.The brief drop to start the week was likely driven by profit-taking and some sell the news moves after President Biden officially said he will nominate Jay Powell for a second term. The slight decline hasn’t cooled things off too much and there could clearly be more near-term selling because the confluence of economic headwinds remain.Despite continued supply chain bottlenecks, rising prices, and difficulty filling millions of open jobs, the bulls keep on winning. The ability to remain positive has been boosted by strong October consumer spending data. And the Labor Department said on Wednesday that jobless claims last week fell to their lowest level in 52 years at 199,000.On top of that, the bulls can hang their hats on the fact that interest rates will remain historically low for the foreseeable future no matter when the Fed starts to lift its core rate. And the S&P 500 earnings picture remains strong, despite near-term margin pressures.With this in mind, investors likely want to remain on the hunt for strong stocks to buy as we approach December. And why not consider two stocks trading well off their highs that are poised to grow within vital areas of the economy…Dollar General DGDollar General is a true discount retailer that sells everything from food to motor oil for “everyday low prices,” unlike Dollar Tree’s $1 for everything pitch. DG recently opened its 18,000 smaller-format store. The company mostly operates in more rural and working-class areas and it has far more locations than Target’s TGT roughly 2,000 and Walmart’s WMT approximately 5,000. DG has thrived by carving out its own lane, while also embracing e-commerce more heavily in the last few years.Dollar General has grown its sales by at least high single-digits for a decade, including a 22% covid-boosted climb last year. Zacks estimates call for its revenue to pop by 1.5% in fiscal 2021 and then jump another 7% higher in FY22 to reach $36.71 billion. Its adjusted earnings are projected to slip 4% this year against a hard-to-compare period and then pop 9% in FY22 to $11.14 a share.Image Source: Zacks Investment ResearchDG shares have surged 180% in the last five years to beat its industry’s average and Walmart’s 106%. The stock has cooled down, having moved roughly sideways in the last year (up 2.5%) vs. its industry’s 27% climb. Dollar General also trades at a 20% discount to its industry and 10% beneath its own year-long highs at 20.5X forward 12-month earnings. At around $223 a share, Dollar General trades around 7% below its highs right now.Dollar General’s 0.75% dividend yield nearly matches its industry’s 0.82% average. Plus, Wall Street remains largely bullish on the stock despite its recent underperformance, with 14 of the 19 brokerage recommendations Zacks has at “Strong Buys.” DG lands a Zacks Rank #3 (Hold) heading into its Q3 financial release on December 2. And investors with long-term outlooks might want to consider DG because of its ability to grow for years to come within a key retail niche.DocuSign DOCU DocuSign’s cloud-based suite offers over a dozen apps for e-signature, document generation, contract lifecycle management, and more. DocuSign also sells industry and department-specific solutions and it has over 350 pre-built integrations with applications such as Salesforce CRM and other huge technology players.At a time when banking is done online, hospital records are stored electronically, and mortgages documents are signed digitally, DocuSign appears increasingly valuable. DocuSign’s revenue climbed 50% last year (its fiscal 2021) to reach $1.45 billion and roughly 40% in FY20. Zacks estimates currently call for its FY22 sales to surge over 43% to $2.1 billion and then climb another 30% in FY23. Meanwhile, its adjusted EPS are set to soar 91% to $1.72 a share this year and then jump 25% higher next year. Plus, it’s crushed our earnings estimates by an average of 60% in the trailing four quarters.Image Source: Zacks Investment ResearchDOCU went public in 2018 and it climbed from around $40 a share to $90 prior to the pandemic. It then soared to $200 a share by July of 2020, amid the stay-at-home boom, before moving roughly sideways for nearly a year until DOCU surged to over $300 this summer. Overall, DocuSign has skyrocketed 490% in the past three years to blow away Salesforce and its industry. But at $243 a share, it trades 22% below its records heading into its Q3 financial release on December 2.  Investors should know that DocuSign, which grabs a Zacks Rank #3 (Hold) right now, slipped below its 200-day moving average recently. This is a place it’s rarely stayed for long in the last few years. The recent downturn also pushed the stock near oversold RSI levels (30 or below) at 33, even as the broader tech space hovers near overbought. And 11 of the 14 brokerage recommendations Zacks has for DOCU are “Strong Buys.” Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report salesforce.com, inc. (CRM): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report DocuSign (DOCU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2021