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Morgan Stanley Bats For Nike"s Outlook Cut Due To Unfavorable Environment

Latest Ratings for NKE DateFirmActionFromTo Mar 2022Cowen & Co.MaintainsOutperform Jan 2022Wells FargoUpgradesEqual-WeightOverweight Jan 2022Seaport GlobalInitiates Coverage OnBuy View More Analyst Ratings for NKE View the Latest Analyst Ratings read more.....»»

Category: blogSource: benzingaSep 22nd, 2022

Why Is PVH (PVH) Down 14.3% Since Last Earnings Report?

PVH (PVH) 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 PVH (PVH). Shares have lost about 14.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is PVH due for a breakout? 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 catalysts. PVH Corp Q2 Earnings Top Estimates, Dip Y/Y on InflationPVH Corp posted second-quarter fiscal 2022 results, wherein the bottom line surpassed the Zacks Consensus Estimate, while sales missed the same. Both metrics declined year over year.Despite the ongoing macroeconomic challenges, continued momentum in its core brands — Calvin Klein and Tommy Hilfiger — remained upsides. However, the North America unit was drab due to supply-chain issues.That said, management remains on track with its PVH+ Plan, which aims at product strength and consumer engagement, direct-to-consumer, digital enhancement and improving its supply-chain capabilities, which are likely to result in substantial cost efficiencies and better productivity.In sync with its plans, PVH intends to reduce 10% of its workforce in its global offices by the end of 2023. The move will generate savings of more than $100 million, which will then be reinvested in digital, supply chain and consumer engagement related to the PVH+ Plan.In a recent development, the company announced the departure of its existing chief executive officer, Trish Donnelly. For the time being, Stefan Larsson will act as its interim CEO.Q2 HighlightsPVH Corp reported adjusted earnings of $2.08 per share, down 23.5% from the year-ago quarter's $2.72. However, the bottom line beat the Zacks Consensus Estimate of $2.01. On a GAAP basis, the company reported earnings of $1.72 per share, reflecting a decline of 31.5% from $2.51 in the prior-year quarter.In the fiscal second quarter, revenues fell 8% year over year to $2,132 million. The top line also lagged the Zacks Consensus Estimate of $2,226 million. This can be attributable to strength in international businesses, particularly in Europe and Asia.On the flip side, the exit from the Heritage Brands Retail business and the impacts of the Ukraine war, including the shutdown of stores in Russia, the cessation of wholesale shipments to Russia and Belarus, and reduced wholesale shipments to Ukraine, remained concerns. Supply-chain headwinds in North America acted as another deterrent.Direct-to-consumer revenues fell 5% year over year in the quarter, while Wholesale revenues plunged 11%. Revenues in the digital channel declined roughly 7% in the quarter under review.The company's gross profit amounted to $1,118.6 million, down 10% year over year. The gross margin contracted 50 bps to 57.2%, including unfavorable currency impacts of 40 bps.Adjusted selling, general and administrative expenses decreased 2.6% year over year to $1,019.9 million. Adjusted earnings before interest and taxes totaled $211.4 million compared with $293.9 million in the prior-year quarter. This mainly resulted from reduced expenses in the prior-year period due to store closures in certain regions. The metric also included $29 million of adverse foreign currency impacts.Segmental AnalysisPVH Corp reports financial results under three segments — Calvin Klein, Tommy Hilfiger and Heritage Brands.Revenues from the Calvin Klein segment inched down 1% year over year. Sales from Calvin Klein North America fell 1% and Calvin Klein International decreased 2%.Revenues from the Tommy Hilfiger segment declined 5% year over year in the reported quarter. Revenues were up 6% at Tommy Hilfiger North America, while the metric declined 9% at Tommy Hilfiger International.The Heritage Brands segment's revenues plunged 44% year over year in the quarter under review.Financial DetailsPVH Corp ended the quarter with cash and cash equivalents of $699.3 million, long-term debt of $2,155.5 million, and stockholders' equity of $5,206.4 million. The company also bought back $124 million of shares under its existing $3-billion share repurchase program in the quarter under review.OutlookManagement lowered its fiscal 2022 outlook and issued the fiscal third-quarter view. The updated guidance reflects impacts of lower demand due to inflation and reduced discretionary expenses, along with higher promotions due to higher inventory. Also, unfavorably currency impacts, along with an uncertain macroeconomic environment, including supply-chain and logistics disruptions, inflationary pressures, the Ukraine war, and the COVID-19 pandemic impacts, remain concerning.For fiscal 2022, revenues are anticipated to decrease 3-4% year over year (up 3-4% on a cc basis), down from the earlier mentioned 1-2% increase. This is inclusive of a 2% reduction each for the exit of the Heritage Brands Retail business and the war in Ukraine.The bottom line is expected to be $8.00 for the year, down from the $9.20 per share mentioned earlier. Notably, the company reported $10.15 on a non-GAAP basis in the prior year. The fiscal 2022 operating margin is likely to be 9%, down from the earlier mentioned 10%.For third-quarter fiscal 2022, management expects a 4-5% year-over-year revenue decline. This is inclusive of a 2% decline from the war in Ukraine. The bottom line is likely to be $2.10-$2.15. Notably, the company reported $3.89 and $2.67 on a GAAP and non-GAAP basis, respectively, in the year-ago quarter. This includes unfavorable currency impacts of 35 cents, as well as 18 cents of adverse impacts of the Ukraine war.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -27.02% due to these changes.VGM ScoresAt this time, PVH has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PVH has a Zacks Rank #3 (Hold). 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Don't miss your chance to get your piece of this innovative $30 trillion opportunity - FREE.>>Yes, I want to know the top metaverse stocks for 2022>>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 PVH Corp. (PVH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 29th, 2022

Vail Resorts Reports Fiscal 2022 Fourth Quarter and Full Year Results, Provides Fiscal 2023 Outlook and Announces 2023 Capital Plan

BROOMFIELD, Colo., Sept. 28, 2022 /PRNewswire/ -- Vail Resorts, Inc. (NYSE:MTN) today reported results for the fourth quarter and fiscal year ended July 31, 2022, which was negatively impacted by COVID-19 and related limitations and restrictions, and reported results of season-to-date season pass sales. Vail Resorts also provided its outlook for the fiscal year ending July 31, 2023, announced its calendar year 2023 capital plan, and declared a dividend payable in October 2022. Highlights Net income attributable to Vail Resorts, Inc. was $347.9 million for fiscal 2022 compared to net income attributable to Vail Resorts, Inc. of $127.9 million for fiscal 2021. The increase is primarily due to the greater impact of COVID-19 and related limitations and restrictions on results in the prior year. Resort Reported EBITDA was $836.9 million for fiscal 2022, compared to Resort Reported EBITDA of $544.7 million for fiscal 2021. The increase is primarily due to the greater impact of COVID-19 and related limitations and restrictions on results in the prior year. Pass product sales through September 23, 2022 for the upcoming 2022/2023 North American ski season increased approximately 6% in units and approximately 7% in sales dollars as compared to the period in the prior year through September 24, 2021. Pass product sales are adjusted to include pass sales for the recently acquired Seven Springs, Hidden Valley and Laurel Mountain resorts (together, the "Seven Springs Resorts") in both periods and to eliminate the impact of changes in foreign currency exchange rates by applying current U.S. dollar exchange rates to both current period and prior period sales for Whistler Blackcomb. The Company provided its outlook for fiscal 2023 and expects Resort Reported EBITDA to be between $893 million and $947 million, including an estimated $4 million of acquisition and integration related expenses specific to the Seven Springs Resorts and Andermatt-Sedrun. Fiscal 2023 guidance, among other assumptions described below, assumes a continuation of the current economic environment, normal weather conditions, and no material impacts associated with COVID-19 for the 2022/2023 North American and European ski season or the 2023 Australian ski season. The Company declared a quarterly cash dividend of $1.91 per share of Vail Resorts' common stock that will be payable on October 24, 2022 to shareholders of record as of October 5, 2022. The Company announced details on its calendar year 2023 capital plan, which is expected to total approximately $180 million to $185 million, excluding $1 million of one-time investments related to integration activities and $10 million of deferred capital associated with the delayed Keystone and Park City lift projects. Including these one-time investments, the Company's total capital plan for calendar year 2023 is expected to be approximately $191 million to $196 million and is primarily focused on new and replacement lifts to further increase uphill capacity and elevate the guest experience. On August 3, 2022, the Company closed on its purchase of a majority stake in Andermatt-Sedrun, marking the Company's first strategic investment in, and opportunity to operate, a ski resort in Europe. Commenting on the Company's fiscal 2022 results, Kirsten Lynch, Chief Executive Officer, said, "We are pleased with our overall results for the year which highlight the stability and strength of our business model. As expected, results for the year significantly outperformed results from the prior year primarily due to the greater impact of COVID-19 and related limitations and restrictions on results in the prior year. "Despite the challenging early season conditions through the holiday period, staffing challenges, and impacts related to COVID-19, results exceeded our original expectations for the year driven by the stability from our advance commitment pass products with approximately 72% of skier visitation at our North American resorts coming from pass product holders, strong destination guest visitation including demand for lift tickets, and an improved guest experience from January through the remainder of the season, demonstrating strong underlying demand for the experience at our resorts. We had particularly strong destination visitation this year, and growth in visitation primarily occurred during off peak periods. Throughout the North American ski season, our ancillary businesses continued to be capacity constrained by staffing, and in the case of dining, by operational restrictions associated with COVID-19." Regarding the Company's fiscal 2022 fourth quarter results, Lynch said, "Performance in the fourth quarter of fiscal year 2022 improved significantly from the prior year driven by strong demand and visitation at our Australian resorts and the continued recovery in our North American summer operations following the start of the COVID-19 pandemic. Our Australian resorts experienced record visitation, driven by strong demand following two years of COVID-19 related disruptions, continued momentum in advance commitment pass product sales following the addition of Hotham and Falls Creek in April 2019, and favorable early season conditions that continued throughout the quarter." Operating Results A more complete discussion of our operating results can be found within the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the Company's Form 10-K for the fiscal year ended July 31, 2022, which was filed today with the Securities and Exchange Commission. The discussion of operating results below compares the results for the fiscal year ended July 31, 2022 to the fiscal year ended July 31, 2021, unless otherwise noted. The following are segment highlights: Mountain Segment Total lift revenue increased $233.6 million, or 21.7%, to $1,310.2 million primarily due to increased pass product sales for the 2021/2022 North American ski season, as well as an increase in non-pass lift ticket purchases. Ski school revenue increased $79.4 million, or 55.1%, dining revenue increased $71.5 million, or 77.6%, and retail/rental revenue increased $83.8 million, 36.7%, each primarily due to fewer COVID-19 related limitations and restrictions on our North American winter operations as compared to the prior year, as well as an increase in demand over the prior year. Operating expense increased $247.8 million, or 21.4%, which was primarily attributable to increased variable expenses associated with increases in revenue, and the impact of cost discipline efforts in the prior year associated with lower levels of operations, including limitations, restrictions and closures resulting from COVID-19. Mountain Reported EBITDA increased $258.4 million, or 46.8%, which includes $20.9 million of stock-based compensation for fiscal 2022 compared to $20.3 million in the prior year. Lodging Segment Lodging segment net revenue (excluding payroll cost reimbursements) increased $101.8 million, or 51.2%, primarily as a result of fewer COVID-19 related limitations and restrictions as compared to the prior year, as well as an increase in demand and average daily rates compared to the prior year and incremental revenue from the Seven Springs Resorts of $18.7 million. Lodging Reported EBITDA increased $33.8 million, or 418.0%, which includes $3.7 million of stock-based compensation expense in fiscal 2022 compared to $3.8 million in the prior year. Resort - Combination of Mountain and Lodging Segments Resort net revenue was $2,525.2 million for fiscal 2022, an increase of $617.3 million, or 32.4%, compared to resort net revenue of $1,907.9 million for fiscal 2021. Resort Reported EBITDA was $836.9 million for fiscal 2022, an increase of $292.3 million, or 53.7%, compared to fiscal 2021, and includes acquisition and integration related expenses, including expenses associated with the acquisition of Andermatt-Sedrun, of $7.7 million, which are recorded within Mountain other operating expense. Total Performance Total net revenue increased $616.2 million, or 32.3%, to $2,525.9 million. Net income attributable to Vail Resorts, Inc. was $347.9 million, or $8.55 per diluted share, for fiscal 2022 compared to net income attributable to Vail Resorts, Inc. of $127.9 million, or $3.13 per diluted share, in fiscal 2021. Net income attributable to Vail Resorts, Inc. for fiscal 2022 and fiscal 2021 included tax benefits of approximately $16.4 million and $17.9 million, respectively, related to employee exercises of equity awards (primarily related to the former CEO's exercise of SARs). Additionally, fiscal 2022 net income included the after-tax effect of acquisition and integration related expenses, as well as costs associated with the expected acquisition of Andermatt-Sedrun, which combined were approximately $5.8 million. Capital Structure and Return of Capital Commenting on capital allocation, Lynch said, "Our balance sheet and liquidity position remain strong. Our total cash and revolver availability as of July 31, 2022 was approximately $1.7 billion, with $1.1 billion of cash on hand, $417.4 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $220.0 million of revolver availability under the Whistler Credit Agreement. As of July 31, 2022, our Net Debt was 2.0 times trailing twelve months Total Reported EBITDA. On August 31, 2022, the Company entered into an amendment of the Vail Holdings Credit Agreement, to extend the maturity date by two years to September 2026. The Company declared a quarterly cash dividend of $1.91 per share of Vail Resorts' common stock that will be payable on October 24, 2022 to shareholders of record as of October 5, 2022. Including shares repurchased during the fourth quarter, for the year ended July 31, 2022, the Company repurchased 304,567 shares of common stock at an average price of $246.27 for a total of approximately $75.0 million. We intend to maintain an opportunistic approach to share repurchases. We will continue to be disciplined stewards of our capital and remain committed to continuous investment in our people, strategic, high-return capital projects, strategic acquisition opportunities such as the recent additions of Andermatt-Sedrun and the Seven Springs Resorts, and returning capital to our shareholders through our quarterly dividend and share repurchase program." Season Pass Sales Commenting on the Company's season pass sales for the upcoming 2022/2023 North American ski season, Lynch said, "Advance commitment continues to be the foundation of our strategy, shifting guests from short term refundable lift ticket purchases to nonrefundable pass commitment before the season starts, in exchange for value. We are very pleased with the results for our season pass sales to date, which demonstrate the strength of the guest experience, our network of mountains resorts, and commitment to continually investing in the guest experience. Through September 23, 2022, North American ski season pass sales increased approximately 6% in units and 7% in sales dollars as compared to the period in the prior year through September 24, 2021, including sales for the Seven Springs Resorts in both periods, and adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.76 between the Canadian dollar and U.S. dollar in both periods for Whistler Blackcomb pass sales. These results are particularly strong considering the Company achieved growth of approximately 42% in units and 17% in sales dollars last year through September 17, 2021 compared to the prior year through September 18, 2020, excluding sales for the Seven Springs Resorts in both periods. "Our pass sales growth was driven by renewing pass holders, with particular strength in renewing pass product holders that were new to advance commitment products last year, and we saw strong growth particularly in destination markets. The strongest product growth was from Epic Day Pass products, attracting lower frequency guests into advance commitment products including the new tier of products launched in 2022/2023 with access to select regional and local resorts. Pass sales dollars continue to benefit from the 7.5% initial price increase and subsequent incremental price increases relative to the 2021/2022 season, largely offset by the mix impact of the growth of new pass holders into Epic Day Pass products, including our new lower priced Epic Day Pass offerings. Following the strong trade-up results last year, we are pleased that net migration among renewing pass product holders remains near neutral, with minimal degradation relative to our spring pass sales. As we enter the final period for season pass sales, we expect our December 2022 growth rates to be relatively consistent with our September 2022 growth rates." Lynch continued, "We continue to prioritize advance commitment as the best way for guests to access our resorts. Similar to last year, lift ticket sales will be limited during the 2022/2023 season in order to prioritize guests committing in advance and to preserve the guest experience at each resort. We expect these lift ticket limitations will further support our resorts and communities on peak days, and we do not anticipate that the limitations will have a significant impact on our financial results." Investments Commenting on the Company's investments for the 2022/2023 North American ski season, Lynch said, "The experience of our employees and guests is the core of our business model, and the Company is using its financial resources and the stability it has created through its advance commitment pass program to aggressively reinvest and deliver on our Company mission of providing an Experience of a Lifetime. As previously announced, the Company is making its largest ever investment in both its employees and its resorts. The Company is investing approximately $175 million in our employees, making our frontline talent a strategic advantage, including an industry-leading minimum wage plus career and leadership differentials across all 37 of our North American resorts, leadership development for frontline talent to build their careers at Vail Resorts, investments in affordable housing for our employees, and expanding our human resources department to better serve our employees. The Company achieved full staffing levels for summer in North America and across our three Australian resorts for winter. While is it very early in our hiring process for North America winter season staffing, our hiring is currently on track for full staffing levels. "We remain dedicated to delivering an exceptional guest experience and will continue to prioritize reinvesting in the experience at our resorts. We are committed to consistently increasing capacity through lift, terrain and food and beverage expansion projects and are on track to complete 18 new or replacement lifts across 12 resorts in advance of the 2022/2023 North American ski season as part of our one-time incremental investment this year to accelerate that strategy, which will meaningfully increase lift capacity at those lift locations. At Vail Mountain, this includes the installation of a new four-person high speed lift in the Sun Down Bowl and the replacement of a four-person lift with a new six-person high speed lift in the Game Creek Bowl. At Whistler Blackcomb, this includes the replacement of the four-person high speed Big Red Express lift with a new six-person high speed lift and the replacement of the six-person Creekside Gondola with a new 10-person high speed gondola. As discussed in prior announcements, we are also installing new or replacement lifts at Breckenridge, Northstar, Heavenly, Stowe, Mount Snow, Attitash, Jack Frost, Big Boulder, Boston Mills and Brandywine. "While 18 lift projects are on track for the 2022/2023 season, three lift projects have been delayed and are expected to be completed in calendar year 2023, subject to approvals. In Park City, the Park City Planning Department approved a permit to upgrade the Eagle and Silverlode lifts at Park City Mountain in April 2022, and the Planning Commission subsequently revoked that permit in June 2022. While the Company is committed to resolving our permit to upgrade the Eagle and Silverlode lifts in Park City, the Company intends to install the two previously-purchased lifts at Whistler Blackcomb in calendar year 2023, replacing the four-person high speed Jersey Cream lift with a new six-person high speed lift and replacing the four-person high speed Fitzsimmons lift with a new eight-person high speed lift. The Whistler Blackcomb lift installations remain subject to approvals. The lift-served terrain expansion project in Bergman Bowl at Keystone is delayed due to a previously disclosed construction issue impacting an area where minimal construction was permitted. While Keystone's Bergman Bowl is planned to be open to guests for the 2022/2023 ski season, the lift installation is delayed with the goal for completion in advance of the 2023/2024 ski season. "Our capital plan for calendar year 2022 was previously expected to be approximately $327 million to $337 million. Due to the delays for the Park City and Keystone lift projects, we will be deferring approximately $10 million of capital from calendar year 2022 to calendar year 2023. We now expect our capital plan for calendar year 2022 to be approximately $323 million to $333 million, including one-time investments in real estate related projects, $4 million related to the addition of Andermatt-Sedrun, and integration activities associated with the Seven Springs Resorts. In addition to the $10 million of cost deferred from calendar year 2022, the Company expects to incur approximately $20 million in additional costs related to the Park City and Keystone lift projects, which is included in our calendar year 2023 capital plan." Regarding calendar year 2023 capital expenditures, Lynch said, "In addition to this year's significant capacity-expanding investments, we are excited to announce details of our calendar year 2023 capital plan. We expect our capital plan for calendar year 2023 to be approximately $180 million to $185 million, including $2 million of maintenance capital for Andermatt-Sedrun and excluding $1 million of one-time investments related to integration activities and $10 million of deferred capital associated with the Keystone and Park City projects. Including these one-time investments, our total capital plan for calendar year 2023 is expected to be approximately $191 million to $196 million. This calendar year 2023 capital plan currently excludes growth capital investments at Andermatt-Sedrun, which we expect to announce along with further details on our calendar year 2023 capital plan in December 2022. "At Breckenridge, we plan to upgrade the Peak 8 base area to enhance the beginner and children's experience and increase uphill capacity from this popular base area. The investment plan includes a new four-person high speed 5-Chair to replace the existing two-person fixed-grip lift as well as significant improvements, including new teaching terrain and a transport carpet from the base, to make the beginner experience more accessible. At Stevens Pass, we are planning to replace the two-person fixed-grip Kehr's Chair lift with a new four-person lift, which is designed to improve out-of-base capacity and guest experience. At Attitash, we plan to replace the three-person fixed-grip Summit Triple lift with a new four-person high speed lift to increase uphill capacity and reduce guests' time on the longest lift at the resort. These lift projects are subject to regulatory approvals and are currently planned to be completed in time for the 2023/2024 North American winter season. Additionally, the Company plans to expand parking across 4 resorts by more than 500 spaces, to improve the guest experience. "The Company is planning to introduce new technology for the 2023/2024 North American ski season that will allow guests to store their pass product or lift ticket directly on their phone, eliminating the need for carrying plastic cards, visiting the ticket window or waiting to receive a pass or lift ticket in the mail. Once loaded on their phones, guests can store their phone in their pocket, and get scanned, hands free, in the lift line using Bluetooth® Low Energy technology. In addition to the significant enhancement of the guest experience, this technology will also reduce waste of printing plastic cards for pass products and lift tickets, and RFID chips, as a part of the Company's Commitment to Zero. Even after launch, the Company will continue to make plastic cards available to any guests who cannot or do not want to use their phone to store their pass product or lift ticket. The Company is also investing in network-wide scalable technology that will enhance our analytics, e-commerce and guest engagement tools to improve our ability to target our guest outreach, personalize messages and improve conversion." Andermatt-Sedrun As previously announced, on August 3, 2022 the Company closed on its purchase of a majority stake in Andermatt-Sedrun, marking the Company's first strategic investment in, and opportunity to operate, a ski resort in Europe. Andermatt-Sedrun is a renowned destination ski resort in Central Switzerland, located less than 90 minutes from three of Switzerland's major metropolitan areas (Zurich, Lucerne and Lugano) and approximately two hours from Milan, Italy. The Company acquired a 55% ownership stake in Andermatt-Sedrun, which controls and operates all of the resort's mountain and ski-related assets, including lifts, most of the restaurants and a ski school operation. Vail Resorts' CHF 149 million investment is comprised of a CHF 110 million investment into Andermatt-Sedrun for use in capital investments to enhance the guest experience on the mountain and CHF 39 million paid to Andermatt Swiss Alps AG, which will be fully reinvested into the real estate developments in the base area. For the 2022/2023 season, Epic Pass holders will receive unlimited and unrestricted access to Andermatt-Sedrun (without Matterhorn Gotthard Bahn access). Epic Local Pass holders receive five days at the resort, and Epic Day Pass holders with All Resorts Access will be able to visit during any of their days. Guidance Commenting on guidance, Lynch said, "As we head into fiscal year 2023, we are encouraged by the strength in advance commitment product sales and our continued focus on enhancing the guest and employee experience while maintaining cost discipline. Our employee investment of approximately $175 million to return to full staffing levels and operational footprints, along with our expected capital investment of over $300 million in calendar year 2022, are expected to further elevate the guest experience this season and increase the capacity of our resorts. "Despite facing broad cost inflation and after incorporating our industry-leading wage investment, we expect meaningful growth for fiscal 2023 relative to fiscal 2022 and strong Resort EBITDA margin. Our guidance for net income attributable to Vail Resorts, Inc. is estimated to be between $321 million and $396 million for fiscal 2023. We estimate Resort Reported EBITDA for fiscal 2023 will be between $893 million and $947 million. We expect the operations of the Seven Springs Resorts and Andermatt-Sedrun to contribute approximately $22 million of Resort Reported EBITDA in fiscal year 2023, which is an incremental $4 million of Resort Reported EBITDA compared to fiscal year 2022, excluding acquisition and integration related expenses. Acquisition and integration related expenses are expected to be an estimated $4 million in fiscal year 2023 associated with the resort acquisitions. We estimate Resort EBITDA Margin for fiscal 2023 to be approximately 31.0% using the midpoint of the guidance range. The guidance assumes a continuation of the current economic environment, normal weather conditions, and no material impacts associated with COVID-19 for the 2022/2023 North American and European ski season or the 2022 and 2023 Australian ski seasons. The guidance also assumes a return to full staffing levels and operational footprints consistent with the expectations shared in the Company's March 2022 Investor Conference Presentation. The guidance assumes an exchange rate of $0.77 between the Canadian Dollar and U.S. Dollar related to the operations of Whistler Blackcomb in Canada, an exchange rate of $0.70 between the Australian Dollar and U.S. Dollar related to the operations of Perisher, Falls Creek and Hotham in Australia, and an exchange rate of $1.02 between the Swiss Franc and U.S. Dollar related to the operations of Andermatt-Sedrun in Switzerland." The following table reflects the forecasted guidance range for the Company's fiscal 2023 full year ending July 31, 2023 for Reported EBITDA (after stock-based compensation expense) and reconciles net income attributable to Vail Resorts, Inc. guidance to such Reported EBITDA guidance. Fiscal 2023 Guidance (In thousands) For the Year Ending July 31, 2023 (6) Low End High End Range Range Net income attributable to Vail Resorts, Inc. $          321,000 $          396,000 Net income attributable to noncontrolling interests 21,000 15,000 Net income 342,000 411,000 Provision for income taxes (1) 120,000 145,000 Income before income taxes 462,000 556,000 Depreciation and amortization 282,000 266,000 Interest expense, net 142,000 134,000 Other (2) 4,000 (6,000) Total Reported EBITDA $          890,000 $          950,000 Mountain Reported EBITDA (3) $          872,000 $          924,000 Lodging Reported EBITDA (4) 18,000 26,000 Resort Reported EBITDA (5) 893,000 947,000 Real Estate Reported EBITDA (3,000) 3,000 Total Reported EBITDA $          890,000 $          950,000 (1) The provision for income taxes may be impacted by excess tax benefits primarily resulting from vesting and exercises of equity awards. Our estimated provision for income taxes does not include the impact, if any, of unknown future exercises of employee equity awards, which could have a material impact given that a significant portion of our awards are in-the-money. (2) Our guidance includes certain known changes in the fair value of the contingent consideration based solely on the passage of time and resulting impact on present value. Guidance excludes any change based upon, among other things, financial projections including long-term growth rates for Park City, which such change may be material. Separately, the intercompany loan associated with the Whistler Blackcomb transaction requires foreign currency remeasurement to Canadian dollars, the functional currency of Whistler Blackcomb. Our guidance excludes any forward looking change related to foreign currency gains or losses on the intercompany loans, which such change may be material. (3) Mountain Reported EBITDA also includes approximately $21 million of stock-based compensation. (4) Lodging Reported EBITDA also includes approximately $4 million of stock-based compensation. (5) The Company provides Reported EBITDA ranges for the Mountain and Lodging segments, as well as for the two combined. The low and high of the expected ranges provided for the Mountain and Lodging segments, while possible, do not sum to the high or low end of the Resort Reported EBITDA range provided because we do not expect or assume that we will hit the low or high end of both ranges. (6) Guidance estimates are predicated on an exchange rate of $0.77 between the Canadian Dollar and U.S. Dollar, related to the operations of Whistler Blackcomb in Canada; an exchange rate of $0.70 between the Australian Dollar and U.S. Dollar, related to the operations of our Australian ski areas; and an exchange rate of $1.02 between the Swiss Franc and U.S. Dollar, related to the operations of Andermatt-Sedrun in Switzerland.   Earnings Conference Call The Company will conduct a conference call today at 5:00 p.m. eastern time to discuss the financial results. The call will be webcast and can be accessed at www.vailresorts.com in the Investor Relations section, or dial (800) 289-0720 (U.S. and Canada) or (323) 701-0160 (international). A replay of the conference call will be available two hours following the conclusion of the conference call through October 12, 2022, at 8:00 p.m. eastern time. To access the replay, dial (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (international), pass code 6897712. The conference call will also be archived at www.vailresorts.com. About Vail Resorts, Inc. (NYSE:MTN) Vail Resorts is a network of the best destination and close-to-home ski resorts in the world including Vail Mountain, Breckenridge, Park City Mountain, Whistler Blackcomb, Stowe, and 32 additional resorts across North America; Andermatt-Sedrun in Switzerland; and Perisher, Hotham, and Falls Creek in Australia. We are passionate about providing an Experience of a Lifetime to our team members and guests, and our EpicPromise is to reach a zero net operating footprint by 2030, support our employees and communities, and broaden engagement in our sport. Our company owns and/or manages a collection of elegant hotels under the RockResorts brand, a portfolio of vacation rentals, condominiums and branded hotels located in close proximity to our mountain destinations, as well as the Grand Teton Lodge Company in Jackson Hole, Wyo. Vail Resorts Retail operates more than 250 retail and rental locations across North America. Learn more about our company at www.VailResorts.com, or discover our resorts and pass options at www.EpicPass.com. Forward-Looking Statements Certain statements discussed in this press release and on the conference call, other than statements of historical information, are forward-looking statements within the meaning of the federal securities laws, including the statements regarding fiscal 2023 performance (including the assumptions related thereto), including our expected net income and Resort Reported EBITDA; our expectations regarding our liquidity; expectations related to our season pass products; our expectations regarding our ancillary lines of business; the payment of dividends; the effects of the COVID-19 pandemic on, among other things, our operations; and our calendar year 2022 and calendar year 2023 capital plan and expectations related thereto. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include but are not limited to the ultimate duration of COVID-19 and its short-term and long-term impacts on consumer behaviors, the economy generally and our business and results of operations, including the ultimate amount of refunds that we would be required to refund to our pass product holders for qualifying circumstances under our Epic Coverage program; prolonged weakness in general economic conditions, including adverse effects on the overall travel and leisure related industries; willingness or ability of our guests to travel due to terrorism, the uncertainty of military conflicts or outbreaks of contagious diseases (such as the ongoing COVID-19 pandemic), and the cost and availability of travel options and changing consumer preferences; unfavorable weather conditions or the impact of natural disasters; risks related to interruptions or disruptions of our information technology systems, data security or cyberattacks; risks related to our reliance on information technology, including our failure to maintain the integrity of our customer or employee data and our ability to adapt to technological developments or industry trends; the seasonality of our business combined with adverse events that occur during our peak operating periods; competition in our mountain and lodging businesses or with other recreational and leisure activities; high fixed cost structure of our business; our ability to fund resort capital expenditures; risks related to a disruption in our water supply that would impact our snowmaking capabilities and operations; our ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaSep 29th, 2022

Intel: Value Stock or Value Trap?

Semiconductor stocks have suffered mightily as the economic slowdown has shifted consumers' focus to necessities rather than spending on technology products. Still, the decline in Intel has been somewhat monumental. Semiconductor stocks have suffered mightily as the economic slowdown has shifted consumers’ focus to necessities rather than spending on technology products. Affordable food, clothing, and shelter become critically important during high inflationary periods with mortgage rates reaching their highest levels since the financial crisis in 2008.The semiconductor industry is very cyclical, making the current market environment more treacherous for these equities. Still, the decline in Intel INTC has been somewhat monumental. Investors have seen rival Advanced Micro Devices AMD grow up and rip away market share from Intel right in front of their eyes over the last five years.This poses the question, at current levels is Intel still a value stock, or is it now a value trap?Let’s take a closer look at INTC’s fundamentals and outlook to get a more elaborate answer to the question.Performance Intel stock has tumbled -47% year to date, almost double the S&P 500’s -24% decline. However, this has been the case for the Semi-General Market as a whole with Intel’s Zacks Subindustry down -48% YTD, with AMD down -52%.Image Source: Zacks Investment Research Despite the current unfavorable market environment for semiconductor stocks, Intel’s fall began some years prior. From the above chart, we can see the astonishing performance comparison to AMD. Over the last five years, AMD is up an impressive 434% vs. INTC’s subpar -29% decline.The price-performance chart also symbolizes AMD taking market share from Intel as they began competing for PC and server chips. AMD surpassed Intel in terms of market cap during the second quarter, which was well noted by investors and analysts, intensifying concerns that Intel is now a value trap.Intel posted poor earnings during the second quarter, which gave way to AMD officially passing INTC in terms of market cap. INTC missed second-quarter earnings expectations by 58% with earnings of $0.29 a share. This represented a 78% decrease from Q2 2021 with GAAP revenue down 22% as well.OutlookThird quarter earnings are expected to be down -80% from the year prior at $0.34 a share, based on Zacks estimates. Third quarter sales are also projected to fall-19% at $15.57 billion.Year over year INTC’s annual earnings are projected to drop -59% in 2022, but its FY23 earnings are expected to grow 16%. Top line growth is expected in FY23 with sales up 3% at $68.23 billion but this year’s sales are expected to be down 15%.During its second-quarter earnings release, Intel mentioned its Client Computing, Datacenter, and AI Groups were largely impacted by continued adverse market conditions. The company did highlight that its Network, Edge Group, and Mobileye units achieved record quarterly revenue.CEO Pat Gelsinger said second-quarter results were below company standards and that Intel must and will do better for its shareholders. Intel recently launched its 13th-Gen chip and expanded its developer cloud to have a better chance at competing with rivals AMD and Nvidia NVDA.  ValuationTrading around $27 a share, INTC has a forward P/E of 11.9X, which is still above the industry average of 10.6X. This is below the high of 16X over the last five years and near the median of 12.1X.Image Source: Zacks Investment ResearchDespite the low P/E, EPS estimate revisions have continued to trend down for INTC over the last 60 days. One thing that is favorable for INTC is its low forward EV/EBITDA at 4.81X vs the market average of 11.8X as shown in the above chart. This indicates Intel has an impressive balance sheet with access to cash and a strong total debt-to-asset ratio. This is also the lowest Intel’s EV/EBITDA has been over the last 20 years.The low EV/EBITDA is critical for Intel during economic uncertainty in the semiconductor industry.Bottom Line Unfortunately for Intel and its shareholders, the stock looks more like a value trap even at current levels. INTC currently lands a Zacks Rank #5 (Strong Sell) in correlation with the declining earnings estimate revisions and tough economic environment for semiconductor stocks. The Semiconductor-General Industry is currently in the bottom 15% of over 250 Zacks Industries. Increasing competition which has been evident in the loss of market share to AMD has also continued to weigh on Intel’s stock.This is not to say that Intel can’t eventually turn things around and regain its footing as a semiconductor power. INTC has a low EV/EBITDA and strong cash flow to help with the process. For now, investors may want to be cautious of INTC stock. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant 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 Intel Corporation (INTC): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 28th, 2022

Avient Updates Third Quarter and Full Year 2022 Forecast

Completed acquisition of DSM's Protective Materials business (including the Dyneema® brand) on September 1st and announced the agreement to sell the Distribution segment on August 12th. The Distribution segment will be reported as discontinued operations.  Adjusted EPS guidance reduced $0.30 for full year 2022 to reflect weaker demand conditions and unfavorable foreign exchange CLEVELAND, Sept. 27, 2022 /PRNewswire/ -- Avient Corporation (NYSE:AVNT), a leading provider of specialized and sustainable solutions, announced an update to its third quarter and full year forecast to reflect the company's recent acquisition and divestiture activity and current demand outlook. "During the third quarter we completed the acquisition of the protective materials business of DSM ("Dyneema") and announced that we reached an agreement to divest our Distribution segment.  These transactions represent the most recent steps in our multi-year portfolio transformation to becoming a pure play specialty formulator," said Robert M. Patterson, Chairman, President and Chief Executive Officer, Avient Corporation. The company has updated its projections to include Dyneema, present the Distribution segment as discontinued operations, and adjust its outlook to reflect current demand conditions and additional unfavorable currency exchange. Mr. Patterson continued, "The war in Ukraine and related energy supply concerns have further eroded consumer sentiment and demand in Europe, and we have not seen a recovery in Asia from the COVID-19 lockdowns in the first half of the year. The economic environment is further challenged by rapidly rising interest rates in the U.S., which have negatively impacted demand trends in the Americas.  In addition, and in the near term, we believe current global demand is likely further weakened by customer inventory destocking." The acquisition of Dyneema closed on September 1 and the Distribution sale is expected to be completed in the fourth quarter.  The company intends to use the net proceeds from its Distribution sale to pay down its 2023 Senior Notes and a portion of the term loan. The below table provides detail related to the company's updated guidance for adjusted EPS, which will now exclude intangible amortization from acquisitions.  Pro Forma adjusted EPS presents the full year 2022 as if the Dyneema acquisition and Distribution divestiture had happened as of January 1, 2022 and that net proceeds from the sale of Distribution were used to pay down the company's 2023 Senior Notes and a portion of the term loan, simultaneously. Q3 2022 FY 2022 FY 2022Pro Forma  Adjusted EPS - Prior Estimate $                         0.80 $                         3.50 $                         3.50 Discontinued Operations (0.25) (0.93) (0.93).....»»

Category: earningsSource: benzingaSep 27th, 2022

10 Best ETFs to Diversify Your Portfolio and Avoid Risks

In this article, we discuss 10 best ETFs to diversify your portfolio and avoid risks. If you want to see more exchange traded funds in this list, click 5 Best ETFs to Diversify Your Portfolio and Avoid Risks.  The importance of ETFs has redoubled in 2022 as the stock market takes a beating amid volatility, […] In this article, we discuss 10 best ETFs to diversify your portfolio and avoid risks. If you want to see more exchange traded funds in this list, click 5 Best ETFs to Diversify Your Portfolio and Avoid Risks.  The importance of ETFs has redoubled in 2022 as the stock market takes a beating amid volatility, inflation and rate hikes. ETFs are managed by professionals who closely monitor changes at the stock market, and adjust the underlying portfolios and asset weights accordingly. Most ETFs also offer attractive distribution yields, as well as exposure to the biggest names in the market like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Johnson & Johnson (NASDAQ:JNJ), at relatively affordable prices. A Bloomberg report dated September 9 reveals that Neuberger Berman, a private investment management firm, is planning to convert its only US commodity mutual fund into an exchange traded fund. Neuberger is the latest asset manager to jump on this ETF trend, and will likely pour around $1 trillion into the ETF universe with this move. The Neuberger Berman Commodity Strategy Fund, with $233 million in net assets, will be converted to an actively managed ETF in the fourth quarter of 2022. One of the primary reasons for the conversion is the lower-cost and more tax-efficient nature of ETFs.  Money managers have been exiting emerging market ETFs rapidly, fearing a strong US dollar. Investors withdrew $1.21 billion from US-listed ETFs that invest in developing economies and emerging countries in the week ended September 2, and this was the highest pull back since May 2020, according to data presented by Bloomberg. This is why it is important to assess new market dynamics frequently and invest accordingly when one wants to diversify portfolios and avoid risks.  Photo by Adam Nowakowski on Unsplash Our Methodology  We explored ETFs that offer exposure to multiple sectors of the economy, both value and growth plays, large and small-cap equities, and dividend stocks for a well-rounded outlook of some of the top funds listed on US exchanges. We have also discussed the top holdings of the ETFs to offer better insight to potential investors.  Best ETFs to Diversify Your Portfolio and Avoid Risks  10. Vanguard Real Estate Index Fund (NYSE:VNQ) Vanguard Real Estate Index Fund (NYSE:VNQ) invests primarily in real estate investment trusts (REITs) that own and operate office buildings, hotels, residential properties, and other real estate. The ETF tracks the total returns of the MSCI US Investable Market Real Estate 25/50 Index. As of May 27, Vanguard Real Estate Index Fund (NYSE:VNQ) offers an expense ratio of 0.12%, while the average expense ratio of similar funds is 1.05%. The ETF holds 167 stocks in its portfolio, and as of August 31, the median market cap stands at $26.6 billion. Vanguard Real Estate Index Fund (NYSE:VNQ)’s total net assets were $72 billion as of late August.  A top holding of Vanguard Real Estate Index Fund (NYSE:VNQ) is American Tower Corporation (NYSE:AMT), one of the largest global REITs that operates multi-tenant communications real estate. JPMorgan analyst Philip Cusick on September 8 reiterated an Overweight rating on American Tower Corporation (NYSE:AMT) with a $305 price target after meeting with CFO Rod Smith. The analyst had “incrementally positive views” on the U.S., Europe, and Asia-Pacific businesses of American Tower Corporation (NYSE:AMT), and he was “encouraged” by trends in Latin America and Africa as well. The U.S. services business appears “poised to remain strong” in the next year with the carriers benefiting from American Tower Corporation (NYSE:AMT)’s “value-added offerings,” the analyst tells investors in a bullish thesis. According to Insider Monkey’s data, 52 hedge funds were long American Tower Corporation (NYSE:AMT) at the end of Q2 2022, compared to 50 funds in the last quarter. Charles Akre’s Akre Capital Management is the biggest stakeholder of the company, with approximately 7 million shares worth $1.78 billion.  Like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Johnson & Johnson (NASDAQ:JNJ), elite hedge funds are bullish on American Tower Corporation (NYSE:AMT).  Here is what Baron Real Estate Fund has to say about American Tower Corporation (NYSE:AMT) in its Q2 2022 investor letter: “American Tower is a leading global tower company with 220,000 communication sites globally and over 40,000 in the U.S. We added to our position during the market dislocation and as it became increasingly clear that the company would put permanent equity financing in place at better-than-expected terms for its previously announced acquisition of CoreSite (thereby removing the “equity overhang”). In addition, the company stepped back from a large potential deal in Europe, which would have required significant incremental funding, due to unfavorable contract terms and price. This decision further reinforced our confidence in management’s capital allocation discipline knowing that these were highly sought-after assets.” 9. Invesco S&P 500 High Dividend Low Volatility ETF (NYSE:SPHD) Invesco S&P 500 High Dividend Low Volatility ETF (NYSE:SPHD) tracks the performance of the S&P 500 Low Volatility High Dividend Index. The fund invests at least 90% of its total assets in the 50 securities in the benchmark index that have historically offered high dividend yields and low volatility. As of September 21, the SEC 30 day yield of Invesco S&P 500 High Dividend Low Volatility ETF (NYSE:SPHD) is 4.58%, and the fund offers a total expense ratio of 0.30%. The ETF has an average market cap of $75.5 billion. The portfolio comprises stocks from the utilities, real estate, consumer staples, financials, materials, energy, and communications services sectors, among others. It is one of the best ETFs to diversify a portfolio, as investors are seeking refuge in low volatility yet high income stocks.  Altria Group, Inc. (NYSE:MO) is the biggest holding of the Invesco S&P 500 High Dividend Low Volatility ETF (NYSE:SPHD), representing 3.14% of the total portfolio. Altria Group, Inc. (NYSE:MO) is an American company that manufactures and sells smokable and oral tobacco products in the United States. On August 25, Altria Group, Inc. (NYSE:MO) declared a $0.94 per share quarterly dividend, a 4.4% increase from its prior dividend of $0.90. The dividend is distributable on October 11, to shareholders of record on September 15. The company delivered a dividend yield of 8.69% on September 22.  According to the second quarter database of Insider Monkey, 48 hedge funds held stakes worth $1.8 billion in Altria Group, Inc. (NYSE:MO), up from 47 funds the prior quarter worth $1.95 billion. Arrowstreet Capital is the leading position holder in the company, with 8.86 million shares valued at $370.3 million.  Here is what Broyhill Asset Management has to say about Altria Group, Inc. (NYSE:MO) in its Q2 2021 investor letter: “Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here. MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.” 8. Vanguard 500 Index Fund (NYSE:VOO) Vanguard 500 Index Fund (NYSE:VOO) is one of the best ETFs to diversify a portfolio and avoid risks. The fund invests in stocks in the S&P 500 Index, which represents 500 of the largest American companies. Vanguard 500 Index Fund (NYSE:VOO) offers an expense ratio of 0.03% as of the end of April. The ETF is a feasible investment for long-term investors who want to grow their money. On August 31, the median market cap stood at $168.5 billion. Apple Inc. (NASDAQ:AAPL) is the biggest holding of Vanguard 500 Index Fund (NYSE:VOO), with the stock representing 7.16% of the total portfolio. On September 20, Evercore ISI analyst Amit Daryanani raised the price target on Apple Inc. (NASDAQ:AAPL) to $190 from $185 and reiterated an Outperform rating on the shares, noting that demand for high-end iPhone models is “notably higher” compared to prior years.  According to Insider Monkey’s Q2 data, Apple Inc. (NASDAQ:AAPL) was part of 128 hedge fund portfolios, compared to 131 in the prior quarter. Warren Buffett’s Berkshire Hathaway is the leading stakeholder of the company, with a position worth more than $122 billion.  In its Q2 2022 investor letter, Alger Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said: “Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.” 7. Invesco S&P 500 GARP ETF (NYSE:SPGP) Invesco S&P 500 GARP ETF (NYSE:SPGP) seeks to track the investment results of the S&P 500 Growth at a Reasonable Price Index. The underlying index comprises roughly 75 stocks from the S&P 500 that have been categorized as having the largest “growth scores” and “quality and value composite scores”. Invesco S&P 500 GARP ETF (NYSE:SPGP) has an average market cap of roughly $138 billion as of the end of June 2022, and the total expense ratio on September 21 came in at 0.33%. It is one of the best ETFs to diversify a portfolio and avoid risks in this market environment.  Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a New York-based manufacturer of medicines for multiple diseases, holds the leading position in Invesco S&P 500 GARP ETF (NYSE:SPGP)’s portfolio. On September 16, Canaccord analyst John Newman raised the price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $750 from $700 and maintained a Buy rating on the shares, citing successful preliminary trial results from its collaboration with Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY).  Among the hedge funds tracked by Insider Monkey, Jim Simons’ Renaissance Technologies is the biggest stakeholder of the company, with 583,062 shares worth $344.6 million. Overall, 44 hedge funds were bullish on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) at the end of June 2022, with collective stakes worth $1.60 billion.  In addition to Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Johnson & Johnson (NASDAQ:JNJ), Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the stocks on the radar of smart investors.  Oakmark Funds shared its stance on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q2 2021 investor letter. Here is what the investment management firm said: “We restored Regeneron Pharmaceuticals from a rather trivial to a more normal position size. You may recall Regeneron performed well for the Fund during the Covid-19 crisis, so we significantly reduced our position as its price-value gap narrowed. During the past several quarters, however, the market has experienced the now infamous “reopening trade,” in which companies that performed well during the pandemic trailed as the economy reopened. Regeneron suffered a similar fate and its shares have lagged the S&P 500 by roughly 4000 basis points, despite the company’s strong fundamentals and robust pipeline of new products. The underperformance widened Regeneron’s price-value gap, so we restored it to a more normal position size.” 6. Invesco QQQ Trust (NASDAQ:QQQ) Invesco QQQ Trust (NASDAQ:QQQ) tracks the NASDAQ-100 Index and ranks in the top 1% of large-cap growth ETFs. Invesco QQQ Trust (NASDAQ:QQQ)’s performance has historically outperformed the S&P 500 Index. The fund exposes investors to long-term investment themes like augmented reality, cloud computing, big data, online streaming, electric vehicles, and more. As of September 21, Invesco QQQ Trust (NASDAQ:QQQ) reported $157.21 billion in assets under management.  Microsoft Corporation (NASDAQ:MSFT) is one of the premier holdings of Invesco QQQ Trust (NASDAQ:QQQ). On September 20, Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.68 per share, a 10% increase from its prior dividend of $0.62. The dividend is payable on December 8, to shareholders of record on November 17. In a recent interview with Bloomberg, Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella reiterated his confidence that the $69 billion deal to acquire Activision Blizzard will get approved by regulators in the United Kingdom. It is Microsoft’s largest acquisition ever. Among the hedge funds tracked by Insider Monkey, Microsoft Corporation (NASDAQ:MSFT) was part of 258 public stock portfolios, with collective stakes worth $56 billion. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with a stake valued at $7.36 billion.  In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said: “Shares of Microsoft Corporation (NASDAQ:MSFT), a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues. (read more…) Click to continue reading and see 5 Best ETFs to Diversify Your Portfolio and Avoid Risks.  Suggested articles: 10 Best ESG Stocks To Buy 10 Best Housing Stocks To Buy Now 10 Best Nuclear Energy Stocks To Buy Disclosure: None. 10 Best ETFs to Diversify Your Portfolio and Avoid Risks is originally published on Insider Monkey......»»

Category: topSource: insidermonkeySep 23rd, 2022

Steelcase Reports Second Quarter Fiscal 2023 Results

Revenue growth of 19% driven by strong backlog, including significant pricing benefits Gross margin improved 60 basis points compared to prior year despite continued significant inflationary pressure Third quarter outlook reflects continued revenue and earnings growth expectations driven by backlog and gross margin improvement Company announces additional reductions in planned spending and lower quarterly dividend due to uncertain demand environment GRAND RAPIDS, Mich., Sept. 21, 2022 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE:SCS) today reported second quarter revenue of $863.3 million, net income of $19.6 million, or $0.17 per share, and adjusted earnings per share of $0.21. In the prior year, Steelcase reported revenue of $724.8 million and net income of $24.7 million, or $0.21 per share, and had adjusted earnings per share of $0.23. Revenue and order growth (decline) compared to the prior year were as follows:     Q2 2023 vs. Q2 2022   RevenueGrowth (Decline)   Organic RevenueGrowth   Organic OrderGrowth (Decline)             Americas 25 %   21 %   7 % EMEA (1 )%   12 %   4 % Other 18 %   21 %   (8 )%   19 %   20 %   5 % The organic revenue growth in all segments was driven by a strong beginning backlog and included significant pricing benefits. Order growth in the Americas and EMEA was driven by pricing benefits, partially offset by a decline in volume in the Americas. The order decline in the Other category was driven by Asia Pacific with broad-based volume declines in all markets except India which continued its strong recovery from COVID-related restrictions in the prior year. "Our sales and dealer teams have delivered significantly higher order growth than our industry in the Americas over the past year and done an outstanding job implementing our necessary pricing actions," said Sara Armbruster, president and CEO. "I want to thank all of our employees for delivering better than expected earnings this quarter by remaining diligent in combating supply chain challenges and controlling operating expenses." Operating income (loss) and adjusted operating income (loss) were as follows:     Operating income (loss)   Adjusted operating income (loss)     (Unaudited)   (Unaudited)     Three months ended   Three months ended     August 26,2022   August 27,2021   August 26,2022   August 27,2021 Americas   $ 43.5     $ 44.7     $ 49.3     $ 47.3   EMEA     (6.8 )     (1.6 )     (5.7 )     (0.6 ) Other     (1.3 )     (4.2 )     (1.3 )     (4.2 ) Corporate     (6.5 )     (5.0 )     (6.5 )     (5.0 )     $ 28.9     $ 33.9     $ 35.8     $ 37.5   Operating income of $28.9 million in the second quarter represented a decrease of $5.0 million compared to the prior year, which included a $15.4 million gain from the sale of land. Excluding the land gain in the prior year, the increase in operating income was primarily driven by higher volume and higher pricing benefits which improved gross margin, partially offset by higher operating expenses. Gross margin of 29.1 percent in the second quarter represented an increase of 60 basis points compared to the prior year, with a 120 basis point improvement in the Americas, a 340 basis point decline in EMEA and a 90 basis point improvement in the Other category. Year-over-year pricing benefits of approximately $80 million exceeded year-over-year inflation by approximately $30 million. The improvement in the Americas was primarily due to higher volume (in part driven by the seasonal strength of Smith System), higher pricing benefits, net of inflation, and a favorable inventory adjustment, partially offset by higher fixed overhead costs and labor inefficiencies. The decline in EMEA was primarily due to higher inflation, net of pricing benefits, and labor inefficiencies. The improvement in the Other category was primarily due to higher volume and higher pricing benefits, net of inflation, partially offset by an unfavorable inventory adjustment. "Inflation continues to be significant and has aggregated to approximately $270 million over the last six quarters, but for the first time since fiscal 2021, our year-over-year pricing benefits exceeded inflation this quarter," said Dave Sylvester, senior vice president and CFO. "Over the coming quarters, although inflationary pressure is expected to remain, we anticipate the benefits from our pricing actions will continue to accumulate and more fully offset the cumulative inflationary costs we've incurred." Operating expenses of $221.4 million in the second quarter represented an increase of $48.5 million compared to the prior year, which included a $15.4 million gain on sale of land. The remaining increase was driven by $13.6 million of higher marketing, product development and sales expenses, $8.4 million of higher variable compensation, $7.9 million from acquisitions and $4.6 million of higher spending in other functional areas, partially offset by $4.9 million of favorable currency translation effects. "In response to inflation and supply chain challenges throughout this year, we have been pulling back on our planned level of incremental spending while staying invested in our most critical strategic initiatives," said Dave Sylvester.   "Due to the recent volume decline in our incoming orders and lower than expected return-to-office trends in the Americas, we are planning to implement additional actions in the third quarter which target further reduction of our planned level of spending.   These actions target approximately $20 million of annualized spending and are expected to include the elimination of up to 180 salaried positions across the Americas core business and Corporate functions." Interest expense of $7.2 million in the second quarter represented an increase of $0.8 million compared to the prior year, primarily due to borrowings under the company's global credit facility during the quarter. Total liquidity, comprised of cash and cash equivalents and the cash surrender value of company-owned life insurance, aggregated to $213.9 million at the end of the second quarter.   Total debt was $563.5 million.   Adjusted EBITDA for the trailing four quarters was $154.1 million. As previously announced, the company's acquisition of Halcon Furniture LLC was completed on June 10, 2022, and was funded using cash on hand and $68 million of borrowings under the company's global credit facility. The Board of Directors has declared a quarterly cash dividend of $0.10 per share, to be paid on or before October 17, 2022, to shareholders of record as of October 5, 2022. "Based on the recent order and return-to-office trends, we adjusted our dividend this quarter to strengthen our liquidity profile and support a higher allocation of capital to reinvestment in the business and pursuit of our longer-term strategy," said Dave Sylvester. Outlook At the end of the second quarter, the company's backlog of customer orders was approximately $946 million, which was 38 percent higher than the prior year. Consistent with recent quarters, the backlog includes a higher than historical percentage of orders scheduled to ship beyond the end of the next quarter, and supply chain disruptions are expected to continue. Orders through the first three weeks of the third quarter declined approximately 20% compared to the prior year. As a result, the company expects third quarter fiscal 2023 revenue to be in the range of $825 to $850 million. The company reported revenue of $738.2 million in the third quarter of fiscal 2022. The projected revenue translates to growth of 12 to 15 percent compared to the third quarter of fiscal 2022, or organic growth of 13 to 16 percent. The company expects to report earnings per share of between $0.08 to $0.12 for the third quarter of fiscal 2023 and adjusted earnings per share of between $0.17 to $0.21. The estimates includes: gross margin of between 29.0 to 29.5 percent, with projected pricing benefits, net of inflation, of approximately $55 million as compared to the prior year and sequentially unfavorable business mix and lower manufacturing efficiency due to decreased production volume, projected operating expenses of between $215 to $220 million, which includes $7 million of amortization of purchased intangible assets and an expected $7 million gain on sale of property, estimated restructuring charges of $8 million, projected interest expense, investment income and other income, net, of approximately $5 million and a projected effective tax rate of 27 percent. The company reported earnings per share of $0.08 and had adjusted earnings per share of $0.10 in the prior year.   "Our strategy remains unchanged, but we are shifting additional effort to prioritize improvement in our profitability to fund future investments and to add more diversification to the markets and customers we serve," said Sara Armbruster. "Looking forward, we continue to believe in the value of people coming together in person to imagine, create, and achieve, which we believe will drive investments to support new ways of working across all of the markets we serve."                           Business Segment Results                       (in millions)                                                 (Unaudited)       (Unaudited)       Three Months Ended       Six Months Ended       August 26,2022   August 27,2021   % Change   August 26,2022   August 27,2021   % Change                         Revenue                       Americas (1) $ 651.6   $ 523.3   25 %   $ 1,172.4   $ 899.6   30 % EMEA (2)   137.8     138.9   (1 )%     294.2     262.5   12 % Other (3)   73.9     62.6   18 %     137.4     119.3   15 %   $ 863.3   $ 724.8   19 %   $ 1,604.0   $ 1,281.4   25 % Revenue mix                       Americas 75.5 % 72.2 %   73.1 %   70.2 %   EMEA 16.0 % 19.2 %   18.3 %   20.5 %   Other 8.5 % 8.6 %   8.6 %   9.3 %   Operating income (loss)                 Americas $ 43.5     $ 44.7     $ 42.3     $ 29.7     EMEA   (6.8 )     (1.6 )     (5.5 )     (7.3 )   Other   (1.3 )     (4.2 )     (4.2 )     (9.5 )   Corporate (4)   (6.5 )     (5.0 )     (16.3 )     (10.8 )     $ 28.9     $ 33.9     $ 16.3     $ 2.1                       Operating income margin   3.3 %     4.7 %     1.0 %     0.2 %   Business Segment Footnotes The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America, with a comprehensive portfolio of furniture and architectural products marketed to corporate, government, healthcare, education and retail customers through the Steelcase, Coalesse, AMQ, Smith System, Orangebox, Viccarbe and Halcon brands. The EMEA segment serves customers in Europe, the Middle East and Africa primarily under the Steelcase, Coalesse, Orangebox and Viccarbe brands, with a comprehensive portfolio of furniture and architectural products. The Other category includes Asia Pacific and Designtex. Asia Pacific serves customers in Australia, China, India, Japan, Korea and other countries in Southeast Asia primarily under the Steelcase brand with a comprehensive portfolio of furniture and architectural products. Designtex sells textiles, wall coverings and surface imaging solutions specified by architects and designers directly to end-use customers through a direct sales force primarily in North America. Corporate expenses include unallocated portions of shared service functions such as information technology, corporate facilities, finance, human resources, research, legal and customer aviation, plus deferred compensation expense and income or losses associated with company-owned life insurance.     QUARTER OVER QUARTER ORGANIC REVENUE GROWTH BY SEGMENT Q2 2023 vs. Q2 2022               (Unaudited)                 Steelcase Inc.   Americas   EMEA   Other category                 Q2 2022 revenue $ 724.8     $ 523.3     $ 138.9     $ 62.6   Acquisitions   17.6       15.1       2.5       —   Currency translation effects   (20.3 )     (0.7 )     (18.1 )     (1.5 ) Q2 2022 revenue, adjusted   722.1       537.7       123.3       61.1                   Q2 2023 revenue   863.3       651.6       137.8       73.9   Organic growth $ $ 141.2     $ 113.9     $ 14.5     $ 12.8   Organic growth %   20 %     21 %     12 %     21 % ADJUSTED EARNINGS PER SHARE (Unaudited)             Three Months Ended     August 26,2022   August 27,2021 Earnings per share   $ 0.17     $ 0.21   Amortization of purchased intangible assets, per share     0.05       0.03   Income tax effect of amortization of purchased intangible assets, per share     (0.01 )     (0.01 ) Restructuring costs, per share     —       —   Income tax effect of restructuring costs, per share     —       —   Adjusted earnings per share   $ 0.21     $ 0.23   ADJUSTED EBITDA (Unaudited)   Three Months Ended   Trailing FourQuarters Ended   November 26,2021   February 25,2022   May 27,2022   August 26,2022   August 26,2022 Income (loss) before income tax expense $ 12.0     $ (1.0 )   $ (15.8 )   $ 26.4   $ 21.6 Interest expense   6.5       6.4       6.4       7.2     26.5 Depreciation and amortization   21.0       21.0       20.2       23.5     85.7 Share-based compensation   (2.0 )     2.5       12.0       3.1     15.6 Restructuring costs   —       —       4.2       0.5     4.7 Adjusted EBITDA $ 37.5     $ 28.9     $ 27.0     $ 60.7   $ 154.1 PROJECTED ORGANIC REVENUE GROWTH               Q3 2023 vs. Q3 2022               Steelcase Inc.                         Q3 2022 revenue $ 738.2           Acquisitions   20.1           Currency translation effects   (26.1 )         Q3 2022 revenue, adjusted $ 732.2                           Q3 2023 revenue, projected $ 825 - 850           Organic growth $ $ 93 - 118           Organic growth %   13% - 16%           PROJECTED ADJUSTED EARNINGS PER SHARE     Three Months Ended       November 25,2022   November 26,2021   Earnings per share   $ 0.08 - 0.12   $ 0.08     Amortization of purchased intangible assets, per share     0.06       0.03     Income tax effect of amortization of purchased intangible assets, per share     (0.02 )     (0.01 )   Restructuring costs, per share     0.07       —     Income tax effect of restructuring costs, per share     (0.02 )     —     Adjusted earnings per share   $ 0.17 - 0.21   $ 0.10     Steelcase Inc.   (Unaudited)   (Unaudited)   Three Months Ended  .....»»

Category: earningsSource: benzingaSep 21st, 2022

Charles River (CRL) Gains From Growing Demand Amid Macro Woes

Charles River (CRL) continues to expect that the growth rate will approach 20% in the second half of 2022. Charles River CRL gains on strong organic revenue growth and robust demand from biotech as well as pharmaceutical clients. The global business environment continues to be challenging. A dull Cell Supply business might dampen top-line growth. The stock carries a Zacks Rank #3 (Hold).Charles River exited the second quarter of 2022 with better-than-expected earnings. The results highlighted 9.5% organic revenue growth, driven by strength across the DSA and Research Models and Services RMS business segments.In the second quarter, RMS revenues increased 8.5% organically year over year, in line with the company’s high single-digit outlook for 2022. Organic revenue growth was driven by strong demand and meaningful price increases in the Research Models business in North America, as well as for Global Research Models Services, particularly Insourcing Solutions and GEMS. China continued to perform well but the growth rate was impacted by COVID-related restrictions in the Beijing and Shanghai region.This segment reported 12.9% organic revenue growth in the second quarter of 2022. The DSA organic growth rate improved nearly 340 basis points from the first-quarter level and reached the low double-digit range. This was driven by the Safety Assessment business, which continued to benefit from strong business trends such as higher pricing and increased demand. Based on demand and backlog trends, including working through higher pricing that is already booked, Charles River continues to expect that the growth rate will approach 20% in the second half of 2022, tracking to its initial plan. Higher demand and meaningful price increases led to sequential growth acceleration in the Safety Assessment business in the second quarter.Charles River Laboratories International, Inc. Price Charles River Laboratories International, Inc. price | Charles River Laboratories International, Inc. QuoteFor 2022, the company continues to expect the DSA segment to be the primary driver of modest operating margin improvement as leverage from the accelerated DSA growth rate offsets higher compensation costs.Operating margin expansion and meaningful cash flow generation were the other upsides. We expect the company to register a 4.8% improvement in adjusted net income in 2022 on 10.2% revenue growth.A revenue decline in the CDMO business, as well as a challenging prior-year comparison for the Biologics Testing and Microbial Solutions businesses in the second quarter, dragged Manufacturing Solutions revenues down. The Manufacturing segment's operating margin declined 460 basis points to 28.6% as a result of the expense escalation within the CDMO business.The significant slash in 2022 guidance reflects headwinds associated with the CDMO business, unfavorable foreign exchange due to the strengthening U.S. dollar and interest expense due to the rising interest rate environment, increases concern.In the pandemic period, the company’s Cell Supply business is facing issues related to donor access. The Cell Supply business, including the HemaCare and Cellero, continued to be impacted by donor availability constraints, which failed to recover from COVID-related restrictions completely.Over the past year, Charles River has been underperforming its industry. The stock has declined 51.7% compared with the industry’s 33.2% plunge.Key PicksA few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.AMN Healthcare has outperformed its industry in the past year. AMN has lost 4.2% compared with the industry’s 35.9% fall.ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.ShockWave Medical has outperformed its industry in the past year. SWAV has gained 33.4% against the industry’s 31.4% fall in the past year.McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2 (Buy).McKesson has outperformed its industry in the past year. MCK has gained 71.5% against the industry’s 15.1% fall. This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.>>Yes, I Want to Help Protect My Portfolio During the RecessionWant 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 McKesson Corporation (MCK): Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report ShockWave Medical, Inc. (SWAV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2022

Here"s how economies around the world are reacting to China"s economic slowdown.

A weaker Chinese economy could help and hurt the US economy and Latin America, whereas Europe is mainly dealing with Russia and an energy crunch. Welcome back, readers. I'm Phil Rosen, reporting from New York. Today, we're talking macro. China's growth slowdown is sending ripples across the world, though the repercussions are varied based on where you look. This morning, I'm breaking down what you want to know about how the world's second biggest economy moves the world's currency and commodity markets.Here we go.If this was forwarded to you, sign up here. Download Insider's app here.A paramilitary soldier patrols near visitors posing for souvenir pictures at Tiananmen Square in Beijing, November 1, 2013.REUTERS/Kim Kyung-Hoon1. China's economy is faltering and global markets have noticed. Beijing is navigating a slew of headwinds, including COVID-19 lockdowns and issues across property and labor markets, according to Bank of America. "Meanwhile, unfavorable demographics and a low return on investment after years of rapid infrastructure development pose structural challenges to growth," analysts wrote in a Friday note.For the US, China's economic weakness is a mixed bag. Thanks to an aggressive Fed, the yuan has weakened roughly 8% against the dollar over the past year — and that means it can help ease inflation in the US. BofA noted that a 10% appreciation in the dollar lowers personal consumption expenditures inflation by about 0.4%. But at the same time, if China's pandemic lockdowns persist for much longer, the US could see fresh supply-chain disruptions, which ultimately could add pressure to US goods inflation. Meanwhile, China's slowdown has less impact in Europe because the continent's focus remains on the energy crunch and Russia, analysts noted. But Latin America has significant exposure to China, with Chile sending 40% of its total exports there, while Brazil and Peru each send about 30% of their totals. "On the positive side, lower commodity prices are helping inflation to slow down this year from a peak around 12% to 6.5% by year-end," BofA said. "On the negative side, they affect Brazil's fiscal position and trade balance. Therefore, the lower growth in China is negatively impacting Brazilian exports and growth — recall that China represents almost a third of Brazilian total exports, the equivalent of around 5% of the country's GDP."What do you expect to happen next for China's economy? What would prolonged COVID-19 lockdowns mean for global economies? Email prosen@insider.com or tweet @philrosenn.  In other news:Federal Reserve Chair Jerome PowellWin McNamee/Getty Images2. US stock futures, cryptocurrencies, and oil prices fell early Monday, as investors brace for the Fed, Bank of Japan, and Bank of England's rate decisions this week. Meanwhile, the London Stock Exchange is closed for Queen Elizabeth II's funeral and will reopen on Tuesday. Here are the latest market moves.3. Earnings on deck: AutoZone Inc., FedEx Corp., and City of London Investment Group Plc, all reporting.4. A top stock picker at $10 trillion BlackRock shared where to put your money right now to beat soaring inflation and recession risks. Tony DeSpirito offered a two-pronged strategy for succeeding in today's environment — here are his three best investments right now.5. It's time to buy the dip in stocks after last Tuesday's rout, according to Fundstrat. The market bottomed months ago, the firm said, since the S&P 500 usually hits a low shortly after inflation peaks. Plus, the percentage of bearish stocks suggests this may be time to snap up deals. 6. Deutsche Bank said the Fed will raise rates to 5% to get a grip on inflation. The bank's economists said the central bank typically overshoots the inflation rate before starting to cut. Get the bank's outlook here.7. Fed moves and global growth fears have weighed on foreign exchange markets this year. From the dollar to yen to yuan, this is what to expect from the world's largest currencies looking ahead.8. An investment chief at Credit Suisse broke down why the bank cut its weighting to US stocks and said the chance of a recession is 35%. That bearish outlook pushed the firm to downgrade its stock indexes, Jack Siu explained to Insider. Here's how the bank is positioning its billions of dollars in client assets. 9. The Ethereum Merge just slashed 99% of its network's energy consumption. But there are a lot of moving parts and technicalities to note. These 10 podcasts will help you better understand the impact of one of the biggest events in crypto history. Madison Hoff and Andy Kiersz/Insider10. Consumers' expectations for long-term inflation dropped to the lowest level since July 2021. Over the next five to ten years, consumers see prices rising by 2.8% annually, according to the University of Michigan. And over the next year, consumers see prices jumping 4.6%.Keep up with the latest markets news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn).Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London. Read the original article on Business Insider.....»»

Category: worldSource: nytSep 19th, 2022

Bear of the Day: Shopify, Inc. (SHOP)

Once an investor favorite during the pandemic, the tide has shifted significantly for Shopify in 2022 amid facing one of the most challenging macroeconomic backdrops in recent history. Once an investor favorite during the pandemic, the tide has shifted significantly for Shopify SHOP in 2022 amid facing one of the most challenging macroeconomic backdrops in history.Shopify has an incredible story, providing a multi-tenant, cloud-based, multi-channel e-commerce platform for small and medium-sized businesses. It’s easy to see why it was such a loved stock during the pandemic.However, the Fed has become hawkish in 2022, creating an unfavorable environment for growth stocks that borrow capital at a higher rate.Analysts have undoubtedly taken note of the challenging business environment, pulling back their earnings estimates over the last several months, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).Image Source: Zacks Investment ResearchLet’s take a deeper dive into Shopify’s current state.Share Performance & ValuationIt’s been a fall from glory for Shopify shares in 2022, down nearly 80% and vastly underperforming the S&P 500.Image Source: Zacks Investment ResearchOver the last month, Shopify shares have continued to see adverse price action, down close to 20% and underperforming the S&P 500 in this timeframe also.Image Source: Zacks Investment ResearchShares can’t catch a break, with sellers winning the battle all year.In addition, SHOP’s valuation multiples appear a bit stretched, with the company carrying a Style Score of an F for Value. Its 8.1X forward price-to-sales ratio represents a 115% premium relative to its Zacks Sector.However, the value is a fraction of its five-year median of 22.7X.Image Source: Zacks Investment ResearchQuarterly PerformanceThe company’s earnings performance has left some to be desired as of late, with SHOP missing revenue and earnings estimates in three of its previous four quarters.Just in its latest print, Shopify recorded a wide 200% bottom line miss and a 3% revenue miss.Bottom LineSteep valuation levels and worse-than-expected quarterly reports paint a grim picture for the company in the short term.Shopify SHOP is a Zacks Rank #5 (Strong Sell), telling us it has a weak near-term earnings outlook.Instead, investors should pivot to stocks that either carry a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) – these stocks have a much stronger earnings outlook. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>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 Shopify Inc. (SHOP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 14th, 2022

Top Stock Reports for Eli Lilly, PepsiCo & IBM

Today's Research Daily features new research reports on 16 major stocks, including Eli Lilly and Company (LLY), PepsiCo, Inc. (PEP) and International Business Machines Corporation (IBM). Tuesday, September 13, 2022The 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 Eli Lilly and Company (LLY), PepsiCo, Inc. (PEP) and International Business Machines Corporation (IBM). 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 >>>Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+37.2% vs. +12.8%), reflecting the company's solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Trulicity, Taltz, and others.It is regularly adding promising new pipeline assets through business development deals. Lilly expects to launch five new medicines by 2023 end including Mounjaro for type II diabetes (already launched) and donanemab for early Alzheimer's disease. Both drugs have multibillion dollar sales potential.However, generic competition for several drugs, rising pricing pressure in the United States mainly on key drug, Trulicity, and price cuts in some international markets like China, Japan and Europe are some top-line headwinds.(You can read the full research report on Eli Lilly here >>>)PepsiCo’s shares have outperformed the Zacks Beverages - Soft drinks industry over the past year (+13.7% vs. +9.7%) on the back of continued momentum in the company's business as reflected in the 16th straight quarter of sales beat in the last quarterly release. It benefits from the resilience and strength of global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.However, PepsiCo witnessed margin pressures in the second quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022. Adverse currency rates also remain headwinds.(You can read the full research report on PepsiCo here >>>)IBM’s shares have outperformed the Zacks Computer - Integrated Systems industry over the past year (+4.8% vs. -6.4%). The company’s synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market. IBM’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul.A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability. However, IBM is facing stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure.Higher debt levels amid extensive restructuring activities pose a concern for the company. High integration risk from continuous acquisition spree is another headwind. Muted cash flow outlook for 2022 due to the impact of dollar strength and winding down of business operations in Russia remain another downside for the company.(You can read the full research report on IBM here >>>)Other noteworthy reports we are featuring today include Booking Holdings Inc. (BKNG), Northrop Grumman Corporation (NOC), and Illinois Tool Works Inc. (ITW).Sheraz Mian Director of ResearchNote: 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>>>Today's Must ReadLilly (LLY) Potential New Products Key to GrowthPepsiCo's (PEP) Business Investments to Bolster PerformanceIBM Rides on Hybrid Cloud & Analytics Growth OpportunitiesFeatured ReportsSolid Gross Bookings Momentum Aids Booking Holdings (BKNG)Per the Zacks analyst, robust merchant business, strengthening accommodation unit and rising booked room nights number are aiding Booking Holdings' gross bookings growth.Strong Demand Aids Northrop (NOC), Supply Chain Issue Woes Per the Zacks Analyst, strong demand for defense products tend to boost Northrop's long-term growth. Yet, it continues to see a prolonged impact of the pandemic, with ongoing supply-chain challenges.Dividends, Buybacks Aid Illinois Tool (ITW) Amid Cost Woes The Zacks analyst is encouraged by the company's measures to consistently reward shareholders through dividends and share buybacks. However, high raw material costs are hurting margin performance.Equity Residential (EQR) to Ride on Portfolio DiversificationPer the Zacks Analyst, portfolio diversification efforts to tap the suburban markets' renter demand will aid Equity Residential. However, rising supply in some markets makes us apprehensive.STERIS' (STE) Healthcare Arm Grows Amid Supply Chain IssuesThe Zacks analyst is encouraged by STERIS' robust Healthcare sales growth across consumables, capital equipments and services. Yet, supply chain disruptions continue to hamper business performance.Solid Liquidity Aid Interpublic (IPG), Adverse Forex AilThe Zacks analyst is positive about increasing current ratio that indicates Interpublic has no problem meeting its short-term obligations. However, unfavorable currency volatility are a headwind.Solid In-Force Business Aids Reinsurance Group (RGA)Per the Zacks analyst, Reinsurance Group is set to benefit from better pricing and expanding business in the pension risk transfer market. Solid in-force business ensures predictable long-term earningNew UpgradesStrong Demand, Growth in E-Commerce Sales Aid Grainger (GWW)Per the Zacks Analyst, Grainger is poised well to gain on strong demand in its end markets and efforts to strengthen customer relationships and investment in e-commerce and digital capabilities.Operational Excellence Plans Bode Well for Weyerhaeuser (WY)Per the Zacks analyst, Weyerhaeuser's focus on operational excellence plans, like merchandising for value, harvest & transportation efficiencies and more, are encouraging.Inorganic Moves, Innovation to Benefit UFP Industries (UFPI)Per the Zacks analyst, UFP Industries has been benefitting from its acquisition strategies for solidifying product portfolio new product innovation and an improved pricing model.New DowngradesDebt Loads Continue to Hurt Antero Midstream (AM)The Zacks analyst is concerned since Antero Midstream has a significant exposure to debt capital. Increasing direct operating expenses is also hurting the company.Zumiez (ZUMZ) Grapples With Supply-Chain Issues & InflationPer Zacks analyst, Zumiez is operating in a tough environment. Headwinds like supply-chain bottlenecks, higher logistics costs, a tight labor market, currency headwinds and inflation are deterrents.Supply-Chain Issues, Modernization Delay Hurt Mercury (MRCY)Per the Zacks analyst, modernization delays amid global economic slowdown concerns and supply-chain issues are likely to continue impacting Mercury Systems' organic revenue growth in the near-term. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Northrop Grumman Corporation (NOC): Free Stock Analysis Report Illinois Tool Works Inc. (ITW): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report PepsiCo, Inc. (PEP): Free Stock Analysis Report Booking Holdings Inc. (BKNG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 13th, 2022

3 Stocks to Watch From the Prospering Cable Television Industry

The Zacks Cable Television industry participants like Comcast (CMCSA), Charter Communications (CHTR) and Rogers Communication (RCI) are benefiting from growing demand for high-speed Internet and increased consumption of media amid significant cord-cutting. The Zacks Cable Television industry is benefiting from the consistent demand for high-speed broadband. Increased demand for WiFi devices and wireless Internet has been a growth factor. The increased consumption of media due to a hybrid working and learning environment has been a key catalyst for industry participants like Comcast CMCSA, Charter Communications CHTR and Rogers Communication RCI.The industry is witnessing a rise in cord cutting on pay-TV options, including cable TV and satellite TV, due to intensifying competition from over-the-top service providers’ innovative content offerings. The focus on providing bundled offerings and on-demand programming content that caters to changing consumer behavior bodes well for streaming players.Industry DescriptionThe Zacks Cable Television industry primarily comprises companies that provide integrated data, video and voice services. Industry participants offer pay-TV services, including Internet-based streaming content. These companies provide equipment such as satellite dish, digital set-top receivers and remote controls. Typically, cable companies either build their network backbone or lease physical access to the network backbone from telecommunication companies. These companies purchase licenses to provide subscribers access to cable television channels owned by programmers and distributed over the network backbone. Cable companies also sell advertising spots on their channels. The industry requires a high capital expenditure on infrastructure to enhance its services. The industry is highly regulated by the Federal Communications Commission (FCC).4 Trends Shaping the Future of the Cable IndustrySkinny Bundles, Original Content Driving Growth: Cable television’s ability to generate ad revenues outside traditional TV platforms, such as websites and any digitally-consumed platform, provides increased scope for target-based advertising. Nevertheless, consumers’ unfavorable disposition, particularly toward advertising, has hit industry participants hard. Further, the growing consumer preference for digital and subscription services instead of linear pay-TV and rental or outright purchase has compelled industry players to alter their business models. Cable television companies are now offering a variety of alternative packages, including skinny bundles, which are delivered at lower costs than traditional offerings. These companies are also innovating in terms of original content to be competitive against streaming service providers.High-Speed Internet Demand Key Catalyst: The growing demand for high-speed Internet, including broadband, has aided cable television industry participants like Comcast and Charter. Improving Internet speed is fueling the demand for high-quality video and the trend of binge viewing. Further, a strengthening broadband ecosystem in international markets, along with the proliferation of smart TVs, is anticipated to drive growth. Also, the surging work-from-home trend and online-learning practice owing to coronavirus-induced quarantines and lockdowns have boosted Internet usage, thus supporting industry participants.Cord Cutting and Matured PayTV Industry Hurting Prospects: The cable television industry is witnessing the rapid evolution of distribution platforms as well as embracing new players and advanced technologies. Declining profits of residential video services due to rising programming costs and retransmission fees have made survival difficult for traditional companies. Additionally, the heightened need for on-demand content has led to the mushrooming of streaming service providers, making it particularly tricky for traditional cable television companies to maintain a viewer base. Furthermore, the traditional pay-TV industry is maturing with widespread consolidation. Moreover, residential voice service revenues are declining on the rising shift to wireless voice services.Softness in Advertising Demand Impeding Business Growth: The challenge with TV ads is that marketers have difficulty getting actionable metrics and insights such as attribution data. At this time, marketers must look for outside-the-box solutions to extract conversion data from offline media. TV has taken a secondary role in most marketing strategies due to the growing influence of digital marketing. Many marketers are increasing ad spending on digital mediums due to their unmatched ability to deliver personalized messages that are easy to measure. Cable TV players are set to face competition for ad dollars from streaming service providers like Netflix and Disney, which are raising prices and introducing cheaper ad-supported packages now that their subscriber growth has slowed.Zacks Industry Rank Indicates Bright ProspectsThe Zacks Cable Television industry is housed within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #85, which places it in the top 34% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since Sep 30, 2021, the industry’s earnings estimate for 2022 has moved up 0.5%.Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.Industry Lags Sector, S&P 500The Zacks Cable Television industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 composite over the past year.The industry has declined 43% over this period against the broader sector’s decline of 39.8%. The S&P 500 has declined 12% during the same time frame.One-Year Price PerformanceIndustry's Current ValuationOn the basis of the trailing 12-month EV/EBITDA, a commonly used multiple for valuing cable companies, we see that the industry is currently trading at 7.35X compared with the S&P 500’s 12.27X and the sector’s 8.58X.Over the past five years, the industry has traded as high as 19.25X, as low as 7.3X and at the median of 10.72X, as the chart below shows.EV/EBITDA Ratio (TTM)3 Cable Stocks In FocusComcast: This Philadelphia, PA-based company is riding on an expanding broadband subscriber base and strong momentum in the wireless business apart from advertising revenue growth. Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience. Moreover, coronavirus-led increased media consumption and the work-from-home and online-learning wave bode well for Comcast’s Internet business. Its streaming service, Peacock, gained significant traction within a short span and is a key catalyst in driving broadband sales.Shares of this Zacks Rank #3 (Hold) company have declined 42% in the past year. The Zacks Consensus Estimate for Comcast’s ongoing-year earnings has increased 0.6% to $3.63 per share in 60 days’ time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Price and Consensus: CMCSACharter Communications: This Zacks Rank #3 company is benefiting from growth in Internet and mobile revenues and steady customer wins. Internet revenues grew owing to a fortified customer base, promotional roll-off and rate adjustments.Charter continues to witness solid Internet usage due to coronavirus-induced work-from-home and online-learning routine. The company’s broadband service has gained traction among SMBs and enterprises. Additionally, an expanding mobile-subscriber base is a key catalyst.Charter’s shares have declined 49.7% in the past year. The consensus mark for 2022 earnings has moved up 4.5% to $31.44 per share in the past 60 days. Price and Consensus: CHTRRogers Communication: This Zacks Rank #3 company continues to benefit from Internet subscriber additions and the shift of Internet users to higher-usage tiers. The company’s investments in the 5G spectrum and partnerships with leading real-estate companies to support 5G infrastructure deployment are catalysts. Moreover, it has expanded the Rogers 5G network to 1500 communities, which will be a major growth driver over the long haul. Further, the acquisition of Shaw Communications is expected to expand its user base.Shares of this Canada-based company have declined 13% in the past year. The consensus mark for 2022 earnings has moved down 3.7% to $2.89 per share in the past 60 days. Price and Consensus: RCI Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>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 Comcast Corporation (CMCSA): Free Stock Analysis Report Rogers Communication, Inc. (RCI): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 9th, 2022

Is it Wise to Retain Simon Property (SPG) Stock Right Now?

A portfolio of premium assets, focus on omni-channel retailing and strategic buyouts bode well for Simon Property (SPG). However, higher e-commerce adoption and interest rate hikes are worrisome. Given the recovery in the retail real estate industry, Simon Property Group’s SPG portfolio of premium assets in the United States and abroad, adoption of omni-channel retailing and balance-sheet strength position it well for growth.This retail REIT behemoth enjoys a wide exposure to retail assets across the United States. Additionally, its presence in the international markets is likely to encourage sustainable long-term growth compared with its domestically focused peers.Simon Property’s adoption of an omni-channel strategy and successful tie-ups with premium retailers paid off well, especially during the pandemic. Its online retail platform, coupled with an omni-channel strategy, is likely to be accretive to its long-term growth. Further, its efforts to explore the mixed-use development option, which has gained immense popularity in recent years, enables it to tap the growth opportunities in areas where people prefer to live, work and play.Going forward, an improving leasing environment is likely to benefit this retail REIT’s properties at premium locations. During the six months ended Jun 30, 2022, it signed 673 new leases and 814 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across its U.S. Malls and Premium Outlets portfolio.Also, the retailer’s sales per square foot for the malls and the outlets combined touched a record high during the second quarter. With the improving economy and healthy consumer confidence, this trend is expected to continue in the upcoming period.To enhance its portfolio, Simon Property has been focusing on premium acquisitions and transformative redevelopments and has invested billions for transforming its properties. Moreover, it capitalized on purchasing recognized retail brands in bankruptcy. With the brands generating a decent amount from digital sales, investments in them seem strategic for Simon Property.The company maintains a solid balance-sheet position with ample liquidity. It exited second-quarter 2022 with $8.5 billion of liquidity and a fixed-charge coverage ratio of 5.1, which is well ahead of the required level. SPG also enjoys investment-grade credit ratings, giving it favorable access to the debt market. With strong financial footing and enough financial flexibility, it is well-placed to capitalize on long-term growth opportunities.Shares of Simon Property have gained 9.0% in the quarter-to-date period compared with its industry’s growth of 3.2%.Image Source: Zacks Investment ResearchHowever, given the conveniences of online shopping, rising e-commerce adoption is still a concern for Simon Property. Online retailing will likely remain a popular choice among customers, thus adversely impacting the market share for brick-and-mortar stores.Further, higher interest rates might increase the company's borrowing costs, affecting its ability to purchase or develop real estate. More so, the dividend payout might become less attractive than the yields on fixed income and money market accounts.Analysts seem bearish on this Zacks Rank #3 (Hold) stock. The Zacks Consensus Estimate for the company’s 2022 funds from operations (FFO) per share has moved marginally downward over the past week, indicating an unfavorable outlook for SPG.Stocks to ConsiderSome better-ranked stocks in the retail REIT sector are STORE Capital STOR, Kite Realty Group Trust KRG and Tanger Factory Outlet Centers SKT, 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 STORE Capital’s 2022 FFO per share has moved 1.3% upward in the past week to $2.27.The Zacks Consensus Estimate for Kite Realty’s 2022 FFO per share has moved 1.1% upward in the past month to $1.84.The Zacks Consensus Estimate for Tanger Factory Outlet Centers’ ongoing year’s FFO per share has been raised marginally over the past month to $1.76.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs NowWant 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 Simon Property Group, Inc. (SPG): Free Stock Analysis Report Tanger Factory Outlet Centers, Inc. 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Category: topSource: zacksSep 8th, 2022

Newell Brands (NWL) Lowers View on Soft Demand & Inflation

Newell Brands (NWL) trims its 2022 guidance and lowers its Q3 view to reflect the impacts of inflation, tough macro environment, soft demand and unfavorable currency. Newell Brands Inc. NWL slashed its third-quarter and 2022 guidance due to continued inflationary pressure, the current challenging macro environment and fewer retail orders. However, it remains optimistic about its back-to-school season and continues to witness strength across its Commercial business.In order to mitigate the hurdles, the company is undertaking stringent cash and cost-management efforts, as well as adjusting its supply-chain network. Some other notable actions include accelerated FUEL productivity efforts, managing discretionary and overhead spending, optimizing advertising and promotion expenses, adjusting its demand forecast and supply plans, and improving working capital.For 2022, management expects sales of $9.37-$9.58 billion, down from the earlier stated $9.76-$9.98 billion. Core sales are anticipated to decline 2-4% compared with the prior mentioned flat to 2% growth. Normalized earnings are envisioned to be $1.56-$1.70, down from the aforementioned $1.79-$1.86.The normalized operating margin is likely to be 10-10.5% compared with the previously communicated 11.2-11.4%. Sales, core sales and normalized earnings for 2022 include the contributions from the divested Connected Home & Security business unit ("CH&S"). Meanwhile, the core sales guidance excludes the contribution from the CH&S sale.The company also revised its outlook for third-quarter 2022. Sales are anticipated to be $2.21-$2.32 billion, down from the prior mentioned $2.39-$2.50 billion. Core sales are likely to decline 8-12% compared with the earlier stated 1-5% dip. The bottom line is expected to be 46-51 cents, down from the last mentioned 50-54 cents. The normalized operating margin is forecast to be 8.7-9.4%, down from the previously communicated 10.7-11%.The sales view for the third quarter and 2022 reflects the adverse impacts of unfavorable foreign exchange movements, closures of Yankee Candle retail locations, and market and category exit, primarily in the Outdoor & Recreation and Home Appliances segments.Also, Newell Brands predicts an operating cash flow of $400-$500 million for 2022, down from the prior stated $700-$800 million. This includes the negative impacts of the sale of the CH&S business and a one-time cash tax payment on this divestiture. Image Source: Zacks Investment Research Shares of this Zacks Rank #4 (Sell) have plunged 17% in the past three months compared with the industry’s decline of 9.8%.Stocks to ConsiderSome better-ranked stocks to consider are The Chef's Warehouse CHEF, MGP Ingredients MGPI and General Mills GIS.Chef’s Warehouse, a distributor of specialty food products in the United States, currently flaunts a Zacks Rank #1 (Strong Buy). CHEF has a trailing four-quarter earnings surprise of 355.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Chef Warehouse’s current financial year’s sales suggests growth of 40.7% from the year-ago reported number.MGP Ingredients, which produces and markets ingredients and distillery products, currently sports a Zacks Rank of 1. MGPI has a trailing four-quarter earnings surprise of 76.8%, on average.The Zacks Consensus Estimate for MGP Ingredients’ current financial-year sales and earnings per share suggests growth of 22.4% and 10.4%, respectively, from the year-ago reported figures.General Mills, which manufactures and markets branded consumer foods worldwide, currently carries a Zacks Rank of 2. GIS has a trailing four-quarter earnings surprise of 6.5%, on average.The Zacks Consensus Estimate for General Mills’ current financial year sales and earnings per share suggests growth of 2% and 1.5%, respectively, from the year-ago reported figures. Want to Know the #1 Semiconductor Stock for 2022? Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries. This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most. Today, it's yours free with no obligation.>>Give me access to my free special report.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 Newell Brands Inc. (NWL): Free Stock Analysis Report General Mills, Inc. (GIS): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report MGP Ingredients, Inc. (MGPI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 7th, 2022

McCORMICK REPORTS PRELIMINARY THIRD QUARTER PERFORMANCE AND UPDATES 2022 OUTLOOK

HUNT VALLEY, Md., Sept. 7, 2022 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE:MKC), a global leader in flavor, today announced preliminary financial results for the third quarter ended August 31, 2022 and updated its financial outlook for fiscal year 2022. Preliminary Third Quarter 2022 Results Sales are expected to increase by approximately 3% in the third quarter from the year-ago period. In constant currency, sales are expected to increase by approximately 6% driven by growth in both the Consumer and Flavor Solutions segments. Both comparisons include an estimated 1% unfavorable impact from the divestiture of the Company's Kitchen Basics business. Operating income is expected to be approximately $223 million in the third quarter compared to $265 million in the year-ago period. Adjusted operating income is expected to be approximately $226 million compared to $272 million in the third quarter of 2021. Earnings per share is expected to be approximately $0.79 in the third quarter, comparable to the year-ago period. Adjusted earnings per share is expected to be approximately $0.65 as compared to $0.80 in the year-ago period. For fiscal year 2022, McCormick updated its sales, operating income, and earnings per share outlook. Chairman and CEO's Remarks Lawrence E. Kurzius, Chairman and CEO, stated, "Our third quarter sales were a record and while strong fell short of our own expectations. Our results were led by the continued growth momentum of our Flavor Solutions segment. We divested our Kitchen Basics business during the quarter which impacted our Consumer segment growth. Growth in the Consumer segment was also tempered by the moderation of elevated consumption trends that we anticipated in the second half of the year, which occurred earlier than expected. Broad pressure on consumers' cost of living from inflation has resulted in higher price elasticity than expected, although still below historical levels. We are increasing our brand marketing investments in our updated outlook and are focusing its messaging on value, which we are confident, combined with our innovation behind price pack architecture and category management initiatives, will continue to drive growth. Cooking at home remains higher than pre-pandemic levels, reinforcing our expectation that the shift in consumer demand to at-home-consumption will be sustained.  "During the third quarter, supply chain challenges continued, and supply recovery of certain constrained materials has taken longer than expected. We also continued to incur elevated costs to meet high demand in some parts of our business, while in other parts of our business, where demand has moderated, we are experiencing lower operating leverage. Across the supply chain, managing inventory levels and eliminating inefficiencies have been a focus. Overall, the normalization of our supply chain costs is taking longer than expected, pressuring gross margin. Over the coming months, we will be aggressively driving the elimination of supply chain inefficiencies. "We remain confident that we are well positioned for the long term and will successfully navigate this dynamic global environment with our strong global portfolio and proven track record of execution." Preliminary Third Quarter 2022 Results Third quarter sales are expected to increase approximately 3% from the year-ago period, including an expected approximate 3% unfavorable impact from currency. Sales growth is expected to be driven by pricing actions the Company has realized, partially offset by a decline in volume and product mix, including the impact of the Kitchen Basics divestiture. Third quarter sales are expected to grow at a constant currency three-year compounded annual growth rate of approximately 7% for the total Company off of a pre-pandemic baseline of 2019 showing the sustained momentum in the business across both the Consumer and Flavor Solutions segments. Operating income is expected to be approximately $223 million in the third quarter of 2022 compared to $265 million in the third quarter of 2021. Excluding special charges, as well as transaction and integration expenses, adjusted operating income is expected to be approximately $226 million compared to $272 million in the year-ago period. This decline is a result of gross margin compression, primarily in our Flavor Solutions segment, with higher brand marketing investments also contributing.  Earnings per share is expected to be approximately $0.79 in the third quarter of 2022, which is comparable to the third quarter of 2021. The net favorable impact of the gain on the sale of the Kitchen Basics business, special charges and transaction and integration expenses is expected to increase earnings per share by approximately $0.14 in the third quarter of 2022. Special charges and transaction and integration expenses lowered earnings per share by approximately $0.01 in the third quarter of 2021. Excluding these impacts, adjusted earnings per share is expected to be approximately $0.65 in the third quarter of 2022 compared to $0.80 in the year-ago period. This expected decrease is projected to primarily be driven by lower adjusted operating income. The Company has not yet completed its quarterly financial close process for the third fiscal quarter of 2022. This update does not present all necessary information for an understanding of McCormick's financial condition as of the date of this release, or its results of operations for the third quarter. As McCormick completes its quarterly financial close process and finalizes its financial statements for the quarter, it will be required to make significant judgments in a number of areas. It is possible that the Company may identify items that require adjustments to the preliminary financial information set forth above and those changes could be material. The Company intends to provide its full financial results for the third quarter on October 6, 2022. Until that time, the preliminary results described in this press release are estimates and remain subject to change based on management's ongoing review of results of the quarter and completion of its quarterly financial close process. Fiscal Year 2022 Financial Outlook For fiscal year 2022, McCormick updated its financial outlook to reflect its preliminary third quarter results, moderation of consumption trends earlier than expected, slower supply chain cost normalization, the divestiture of the Kitchen Basics business, and a more unfavorable impact of foreign currency rates. The Company expects foreign currency rates in 2022 to unfavorably impact net sales by 3%, as compared to 2% in its previous financial outlook, and continues to expect adjusted operating income and adjusted earnings per share to be impacted unfavorably by 2%. The Company expects 2022 sales to range from comparable to 2021 to an increase of 2%, which in constant currency is sales growth of 3% to 5%. These comparisons include an unfavorable impact from the divestiture of the Company's Kitchen Basics business. The Company previously expected to grow sales 3% to 5%, or 5% to 7% in constant currency. McCormick is projecting 2022 gross profit margin to be 330 to 280 basis points lower than 2021. In 2021, $11 million of special charges and transaction and integration expenses lowered the Company's gross margin. Excluding this impact, the Company is projecting 2022 gross profit margin to be 350 to 300 basis points lower than 2021, primarily driven by the Company's Flavor Solutions segment. This projection includes the Company's reaffirmation of its previous expectation of an increase in cost inflation in the high teens. Operating income in 2022 is expected to decline 10% to 8% from $1.02 billion in 2021. The Company expects approximately $46 million of special charges in 2022 that relate to previously approved organization and streamlining actions as well as integration expenses related to the FONA acquisition of approximately $2 million in 2022. Excluding the impact of special charges and transaction and integration expenses in 2022 and 2021, the Company projects adjusted operating income to decline 13% to 11%, which in constant currency is 11% to 9%. The revised guidance is driven by the updated sales and adjusted gross margin outlooks as well as a higher level of brand marketing investments, which is now projected to be a low single digit increase compared to 2021. The Company's projection also includes reaffirmation of its previous expectation of approximately $85 million of cost savings led by the Company's Comprehensive Continuous Improvement (CCI) program. The Company previously expected adjusted operating income to range from comparable to an increase of 2%, or 2% to ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaSep 7th, 2022

Top Analyst Reports for Visa, Broadcom & Medtronic

Today's Research Daily features new research reports on 16 major stocks, including Visa Inc. (V), Broadcom Inc. (AVGO) and Medtronic plc (MDT). Tuesday, September 6, 2022 The 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 Visa Inc. (V), Broadcom Inc. (AVGO) and Medtronic plc (MDT). 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 >>>Visa shares have declined -11.5% over the past year against the Zacks Financial Transaction Services industry’s decline of -28.6%. The stock has modestly outperformed the S&P 500 index over the past year, but has lagged rival Mastercard. While a number of near-headwinds will likely weigh on profitability, the company’s long-term outlook remains favorable. Numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon.The coronavirus vaccine rollouts and the gradual revival of consumer confidence will keep driving spending, expanding business volumes in turn. Backed by a strong cash position, the company remains committed to boosting its shareholder value through share buybacks and dividend payments.(You can read the full research report on Visa here >>>)Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+3.5% vs. -15.9%). The company’s top-line growth was driven by strength in cloud and service provider segments. Networking is riding on strong adoption of Broadcom’s next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers.Aggressive adoption of its next-generation server storage solutions by hyperscalers is expected to drive top-line growth. Broadcom expects fiscal fourth-quarter networking and server storage revenues to grow 30% and 45% on a year-over-year basis, respectively. An upbeat fourth-quarter fiscal 2022 guidance is encouraging.The VMware acquisition will aid prospects over the long term. However, increasing competition, along with high debt levels, are persistent overhangs.(You can read the full research report on Broadcom here >>>)Medtronic shares have declined -14.6% over the year-to-date basis against the Zacks Medical - Products industry’s decline of -45.2%. The Zacks analyst believes that the company’s 2023 adjusted earnings will dip 0.4% from the year-ago period on 4.2% revenue growth mostly due to high inflation and supply disruptions. However, in fiscal 2024, adjusted earnings are expected to grow 3.8% on 3.7% growth in revenues. Medtronic’s strong liquidity position should allow it to meet its near-term debt obligations. Nevertheless, Medtronic is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within Cardiovascular, the company is gaining market share, banking on recent product launches. Also within MedSurg, Medtronic is scaling production of Hugo RAS. Innovations and market expansion are the key factors that support our bullish stance on the stock.(You can read the full research report on Medtronic here >>>)Other noteworthy reports we are featuring today include The Walt Disney Company (DIS), American Tower Corporation (AMT), and BP p.l.c. (BP).Sheraz Mian Director of ResearchNote: 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>>>Today's Must ReadVisa (V) Rides on Improving Top Line & Solid Balance SheetStrong Demand for Networking Products Aids Broadcom (AVGO)Medtronic (MDT) Gains in Market Share amid Macro HeadwindsFeatured ReportsDisney+ Growth & Revival of Parks Business Aids Disney (DIS)Per the Zacks analyst, growing popularity of Disney+ makes it a key catalyst for Disney's growth prospects. Moreover, revival of the theme parks business bodes well for the company's prospects.American Tower (AMT) to Gain From 4G and 5G InvestmentsPer the Zacks Analyst, American Tower is expected to benefit from increased investments by wireless carriers in 4G and 5G networks, growing wireless penetration and spectrum auctions.Eylea, Dupixent Fuel Regeneron (REGN) Amid CompetitionPer the Zacks analyst, solid demand for Eylea and Dupixent maintain momentum for Regeneron amid competition. However, REGEN-COV sales have plunged due to lack of efficacy against the Omicron variant.E-Commerce Efforts Boost AutoZone (AZO) Amid Supply WoesAutoZone is riding on the success of its omni-channel and e-commerce efforts that aid growth. Yet, per the Zacks analyst, supply chain issues led by inflation and chip crunch weigh on its margins.Otis Worldwide (OTIS) to Gain From Innovations, Costs HighPer the Zacks analyst, Otis Worldwide is poised to gain from diversified portfolio of innovative space-saving and energy-efficient solutions. However, rising input costs raise concern.Solid Investments Boost Entergy (ETR), Weak Solvency WoesPer the Zacks analyst, Entergy's disciplined investment in grid upgrades should drive its earnings and add impetus to its growth trajectory. However, its weak solvency position remains a bottleneck.Expeditors (EXPD) Rides on Airfreight Revenues, Costs AilThe Zacks Analyst is impressed with the fact that Expeditors is being aided by the uptick in airfreight revenues. However, rising operating expenses are likely to keep the bottom line under pressure.New UpgradesBP to Benefit From Renewable Energy Project in AustraliaPer the Zacks analyst, BP is well-positioned to gain from Australia's renewable energy project. The project can be the world's leading producer of green hydrogen.Enterprise (EPD) Banks on $5.5B Major Midstream ProjectsThe Zacks analyst likes Enterprise since the partnership is well-positioned to generate additional cash flow from $5.5 billion of growth midstream projects currently under construction.ADTRAN (ADTN) Rides on Networking Solutions, DiversificationPer the Zacks analyst, ADTRAN is likely to benefit from healthy demand trends, end-to-end strong fiber broadband solutions, complementary assets from ADVA buyout and improved customer diversification.New DowngradesSemi- Conductor Shortage and Stiff Competition to Hurt FlexPer the Zacks analyst, Flex's performance is affected due to inefficiencies in the automotive business and health solutions owing to semi-conductor shortages. Stiff competition is an added concern.Pricing Pressure Hindering Stryker's (SYK) Topline GrowthPer the Zacks analyst, unfavorable pricing environment is likely to act as a hindrance to Stryker's top-line growth in the near term.Best Buy (BBY) Reports Soft Comparable Store Sales in Q2Per the Zacks analyst, Best Buy posted soft comparable sales in second-quarter fiscal 2023. The metric dropped 12.1% in the reported quarter and is projected to decline 11% in the current fiscal year. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention. See them 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 American Tower Corporation (AMT): Free Stock Analysis Report BP p.l.c. (BP): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report Medtronic PLC (MDT): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 6th, 2022

Haemonetics (HAE) Business Recovery Continues, Macro Issues Ail

Despite sluggish results of Haemonetics' (HAE) Blood Center business, Whole Blood revenues grow on favorable order timing among distributors in the Asia Pacific and EMEA. Haemonetics’ HAE top-line growth rides on drivers like Plasma, TEG, Hemostasis Management as well as the Vascular Closure business. However, a weakness in the Blood center franchise significantly affected Haemonetics’ results in the first quarter of fiscal 2023. The stock currently carries a Zacks Rank #3 (Hold).Over the past six months, Haemonetics has outperformed its industry. The stock has gained 13.8% against the industry's 51.5% fall. Haemonetics exited the first quarter of fiscal 2023 with better-than-expected earnings and revenues.The robust performance of the Hospital business, on continued strength in the Hemostasis Management product line, instills optimism. Robust contributions from the Vascular Closure business also seem promising. The expansion of both margins is an added advantage. The company-adjusted gross margin was 54.4%, up 712 basis points (bps) year over year. The primary drivers of this improvement were strong volume growth in Plasma and Hospital and, price and additional savings from the Operational Excellence Program.Haemonetics Corporation Price Haemonetics Corporation price | Haemonetics Corporation QuoteThe adjusted operating margin was 14.9%, up 1314 bps from the year-ago quarter. Haemonetics continued to make additional investments to expand its manufacturing footprint in the reported quarter, including its new facility in Clinton, PA. The raised full-year outlook for revenues and earnings per share indicates continued growth momentum.The fiscal first quarter saw encouraging performance by Haemonetics’ businesses. The Hospital business revenues grew 12.7% (up 14.9% on an organic basis) in the quarter amid staffing shortages and budgetary constraints in U.S hospitals, as well as continued lockdowns in China.Under the Hospital segment, revenue growth in the Hemostasis Management and Vascular Closure product lines was 4.1% and 35.9% on a year-over-year basis, respectively. Within Vascular Closure, the company strengthened its leadership in the growing electrophysiology and interventional cardiology markets. Plasma collections also rebounded in the reported quarter, as the company continued to convert its U.S Plasma customers to the Nexus Plasma collection technology. Haemonetics expects to convert all its U.S. customers to the latest Nexus PCS and NexLynk DMS platform by the end of the second quarter of fiscal 2023.Despite sluggish results in the Blood Center business, Whole Blood revenues grew 7%, led by favorable order timing among distributors in the Asia Pacific and EMEA, coupled with additional opportunities in North America.On the flip side, the sluggish performance of the Blood Center business in the first quarter of fiscal 2023 amid blood shortages in a difficult collection environment is concerning. Blood Center revenues declined 7% in the fiscal first quarter. Moreover, Apheresis revenues fell 13% due to unfavorable order timing, lower revenues from convalescent Plasma, collection center staffing shortages in the United States and geopolitical risk.A fall in short-term cash level raises apprehension. Weak solvency and stiff competition remain concerns. The company continues to be challenged by inflationary pressure in the global manufacturing and supply chain, including freight and raw material costs, previous divestitures and price adjustments.Key PicksA few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, Patterson Companies, Inc. PDCO and McKesson Corporation MCK.AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.AMN Healthcare has outperformed its industry in the past year. AMN has lost 11.2% against the industry’s 38.2% fall.Patterson Companies has an estimated long-term growth rate of 7.9%. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 16.5%. It currently carries a Zacks Rank #2 (Buy).Patterson Companies has underperformed its industry in the past year. PDCO has lost 17.4% compared with the industry’s 14.8% fall in the past year.McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2.McKesson has outperformed its industry in the past year. MCK has gained 77.5% against the industry’s 14.8% fall. Want to Know the #1 Semiconductor Stock for 2022? Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries. This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most. Today, it's yours free with no obligation.>>Give me access to my free special report.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 McKesson Corporation (MCK): Free Stock Analysis Report Haemonetics Corporation (HAE): Free Stock Analysis Report Patterson Companies, Inc. (PDCO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 2nd, 2022

Here"s Why You Should Retain Haemonetics (HAE) Stock Now

Investors are optimistic about Haemonetics' (HAE) better-than-expected results and strong Plasma sales. Haemonetics Corporation HAE is gaining from continued strength in the Hospital business, particularly across the Hemostasis Management and Vascular Closure product lines. The company posted better-than-expected results for the first quarter of fiscal 2023. The ongoing rebound in plasma collections buoys optimism. However, declining Blood Center revenues and persistent macroeconomic headwinds raise apprehension.In the past year, the Zacks Rank #3 (Hold) stock has gained 12.8% versus a 51.1% fall of the industry and a 13.8% decline of the S&P 500.The renowned medical device company has a market capitalization of $3.82 billion. In the past five years, the company registered earnings growth of 8.9% compared with the industry’s 9.7% rise and the S&P 500’s 13.4% increase. Its earnings surpassed estimates in the trailing four quarters and missed on one occasion, delivering an average surprise of 6.3%.Image Source: Zacks Investment ResearchLet’s delve deeper.Factors At PlayQ1 Upsides: Haemonetics exited the fiscal first quarter with better-than-expected earnings and revenues. The robust performance in the Hospital business, on continued strength in the Hemostasis Management product line, instills optimism. Robust contributions from the Vascular Closure business also seem promising. The expansion of both margins is an added advantage.Haemonetics continued to invest to expand its manufacturing footprint in the reported quarter, including its new facility in Clinton, PA. The raised full-year outlook for revenues and earnings per share indicates the continuity of this growth momentum.Recovery Across Businesses: We are upbeat about the impressive fiscal-first quarter results across Haemonetics’ businesses. The Hospital business revenues grew 12.7% in the quarter amid staffing shortages and budgetary constraints in U.S hospitals, as well as continued lockdowns in China. Under the Hospital segment, the Hemostasis Management and Vascular Closure product lines saw sales growth of 4.1% and 35.9%, respectively. Meanwhile, plasma collections continued to rebound as the company converted its U.S Plasma customers to the Nexus Plasma collection technology.Despite sluggish results in the Blood Center business, Whole Blood revenues increased 7% in the quarter under review.Potential Upsides of Plasma Franchise: Haemonetics has been witnessing strong growth in Plasma franchise for quite some time. During the fiscal first quarter, Plasma revenues grew 42.5% on a year-over-year basis. The business saw 47% growth in North America, the company’s largest market, which accounts for more than 90% of the total Plasma sales. The upside was driven by substantial contributions from both volume and price.Excluding CSL, U.S. plasma collection volume rose 40% year over year, as the company recorded robust growth in collections across most centers. Meanwhile, Europe plasma collections also registered strong double-digit growth in the fiscal first quarter.DownsidesBlood Center Results Dull: Haemonetics registered a sluggish performance by the Blood Center business amid blood shortages in a difficult collections environment. Revenues declined 7% on a year-over-year basis in the fiscal first quarter. Apheresis sales fell 13% due to unfavorable order timing, lower revenue from convalescent Plasma, collection center staffing shortages in the United States and geopolitical risk.Economic Uncertainty a Concern: Haemonetics continues to be faced with macroeconomic challenges related to inflationary pressure in the global manufacturing and supply chain, including freight and raw material costs. Unfavorable foreign exchange movements and pandemic-led disruptions are other headwinds trailing the company.Competitive Landscape: Haemonetics operates in a very competitive environment, both for manual and automated systems, which includes companies like MAK Systems, ROTEM analyzers, etc. Slower-than-expected product adoption by customers, especially the American Red Cross, might reduce the company’s revenues and profit.Estimate TrendIn the past 90 days, the Zacks Consensus Estimate for Haemonetics’ fiscal 2023 earnings moved up by 2.9% to $2.79.The Zacks Consensus Estimate for fiscal 2023 revenues is pegged at $1.09 billion, suggesting a 9.9% rise from the year-ago reported number.Key PicksA few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.AMN Healthcare has outperformed its industry in the past year. AMN has lost 12.8% against the industry’s 38.3% fall.ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.ShockWave Medical has outperformed its industry in the past year. SWAV has gained 31.1% against the industry’s 32.6% fall.McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2 (Buy).McKesson has outperformed its industry in the past year. MCK has gained 76% against the industry’s 14.5% fall. Want to Know the #1 Semiconductor Stock for 2022? Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries. This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most. Today, it's yours free with no obligation.>>Give me access to my free special report.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 McKesson Corporation (MCK): Free Stock Analysis Report Haemonetics Corporation (HAE): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report ShockWave Medical, Inc. (SWAV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 2nd, 2022

PVH Corp (PVH) Q2 Earnings Top Estimates, Dip Y/Y on Inflation

PVH Corp's (PVH) Q2 results are hurt by supply-chain issues and inflation. However, brand strength, particularly Calvin Klein and Tommy Hilfiger, and gains from the PVH+ Plan bode well. Shares of PVH Corporation PVH fell more than 3%, after market close on Aug 30, following second-quarter fiscal 2022 results, wherein the bottom line surpassed the Zacks Consensus Estimate, while sales missed the same. Both metrics declined year over year.Despite the ongoing macroeconomic challenges, continued momentum in its core brands — Calvin Klein and Tommy Hilfiger — remained upsides. However, the North America unit was drab due to supply-chain issues.That said, management remains on track with its PVH+ Plan, which aims at product strength and consumer engagement, direct-to-consumer, digital enhancement and improving its supply-chain capabilities, which are likely to result in substantial cost efficiencies and better productivity.PVH Corp. Price, Consensus and EPS Surprise  PVH Corp. price-consensus-eps-surprise-chart | PVH Corp. QuoteIn sync with its plans, PVH intends to reduce 10% of its workforce in its global offices by the end of 2023. The move will generate savings of more than $100 million, which will then be reinvested in digital, supply chain and consumer engagement related to the PVH+ Plan.In a recent development, the company announced the departure of its existing chief executive officer, Trish Donnelly. For the time being, Stefan Larsson will act as its interim CEO.Q2 HighlightsPVH Corp reported adjusted earnings of $2.08 per share, down 23.5% from the year-ago quarter's $2.72. However, the bottom line beat the Zacks Consensus Estimate of $2.01. On a GAAP basis, the company reported earnings of $1.72 per share, reflecting a decline of 31.5% from $2.51 in the prior-year quarter.In the fiscal second quarter, revenues fell 8% year over year to $2,132 million. The top line also lagged the Zacks Consensus Estimate of $2,226 million. This can be attributable to strength in international businesses, particularly in Europe and Asia.On the flip side, the exit from the Heritage Brands Retail business and the impacts of the Ukraine war, including the shutdown of stores in Russia, the cessation of wholesale shipments to Russia and Belarus, and reduced wholesale shipments to Ukraine, remained concerns. Supply-chain headwinds in North America acted as another deterrent.Direct-to-consumer revenues fell 5% year over year in the quarter, while Wholesale revenues plunged 11%. Revenues in the digital channel declined roughly 7% in the quarter under review.The company's gross profit amounted to $1,118.6 million, down 10% year over year. The gross margin contracted 50 bps to 57.2%, including unfavorable currency impacts of 40 bps.Adjusted selling, general and administrative expenses decreased 2.6% year over year to $1,019.9 million. Adjusted earnings before interest and taxes totaled $211.4 million compared with $293.9 million in the prior-year quarter. This mainly resulted from reduced expenses in the prior-year period due to store closures in certain regions. The metric also included $29 million of adverse foreign currency impacts.Segmental AnalysisPVH Corp reports financial results under three segments — Calvin Klein, Tommy Hilfiger and Heritage Brands.Revenues from the Calvin Klein segment inched down 1% year over year. Sales from Calvin Klein North America fell 1% and Calvin Klein International decreased 2%.Revenues from the Tommy Hilfiger segment declined 5% year over year in the reported quarter. Revenues were up 6% at Tommy Hilfiger North America, while the metric declined 9% at Tommy Hilfiger International.The Heritage Brands segment's revenues plunged 44% year over year in the quarter under review.Financial DetailsPVH Corp ended the quarter with cash and cash equivalents of $699.3 million, long-term debt of $2,155.5 million, and stockholders' equity of $5,206.4 million. The company also bought back $124 million of shares under its existing $3-billion share repurchase program in the quarter under review.OutlookManagement lowered its fiscal 2022 outlook and issued the fiscal third-quarter view. The updated guidance reflects impacts of lower demand due to inflation and reduced discretionary expenses, along with higher promotions due to higher inventory. Also, unfavorably currency impacts, along with an uncertain macroeconomic environment, including supply-chain and logistics disruptions, inflationary pressures, the Ukraine war, and the COVID-19 pandemic impacts, remain concerning.For fiscal 2022, revenues are anticipated to decrease 3-4% year over year (up 3-4% on a cc basis), down from the earlier mentioned 1-2% increase. This is inclusive of a 2% reduction each for the exit of the Heritage Brands Retail business and the war in Ukraine.The bottom line is expected to be $8.00 for the year, down from $9.20 per share mentioned earlier. Notably, the company reported $10.15 on a non-GAAP basis, in the prior year. The fiscal 2022 operating margin is likely to be 9%, down from the earlier mentioned 10%.For third-quarter fiscal 2022, management expects a 4-5% year-over-year revenue decline. This is inclusive of a 2% decline from the war in Ukraine. The bottom line is likely to be $2.10-$2.15. Notably, the company reported $3.89 and $2.67 on a GAAP and non-GAAP basis, respectively, in the year-ago quarter. This includes unfavorable currency impacts of 35 cents, as well as 18 cents of adverse impacts of the Ukraine war. Image Source: Zacks Investment Research In the past three months, this Zacks Rank #4 (Sell) stock has plunged 11.6% compared with the industry's decline of 3.1%.Stocks to ConsiderSome better-ranked stocks from the same industry are Target Hospitality TH, Snap-on SNA and Prestige Consumer Healthcare PBH.Target Hospitality is a builder, owner and operator of customized housing communities for hospitality solutions. It currently flaunts a Zacks Rank #1 (Strong Buy). TH has a trailing four-quarter earnings surprise of 135.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Target Hospitality’s current financial year’s sales and earnings suggests growth of 75% and 2,840%, respectively, from the year-ago period's reported numbers.Snap-on, a global provider of professional tools, equipment, and related solutions for technicians, vehicle service centers, original equipment manufacturers (OEMs) and other industrial users, currently carries a Zacks Rank #2 (Buy). SNA has a trailing four-quarter earnings surprise of 8.9%, on average.The Zacks Consensus Estimate for Snap-on’s current financial year’s sales and earnings per share suggests growth of 4.7% and 6.8%, respectively, from the year-ago period's reported numbers.Prestige Consumer Healthcare, a developer, manufacturer, marketer, seller and distributor of over-the-counter (“OTC”) healthcare and household cleaning products, presently has a Zacks Rank #2. PBH has a trailing four-quarter earnings surprise of 5.6%, on average.The Zacks Consensus Estimate for Prestige Consumer’s current financial-year sales and earnings suggests growth of 3.5% and 3.7% from the year-ago period’s reported numbers, respectively. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs NowWant 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 SnapOn Incorporated (SNA): Free Stock Analysis Report PVH Corp. (PVH): Free Stock Analysis Report Prestige Consumer Healthcare Inc. (PBH): Free Stock Analysis Report Target Hospitality Corp. (TH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 1st, 2022

Kraft Heinz (KHC) Gains on Pricing Efforts Amid Rising Costs

Kraft Heinz (KHC) benefits from solid pricing initiatives. It is committed to accelerating profit and enhancing shareholders' long-term value. The Kraft Heinz Company KHC is leaving no stone unturned to transform its business to unleash its full potential. In this regard, the company’s AGILE@SCALE strategy looks impressive. The iconic consumer packaged food and beverage company’s strategic pricing actions bode well amid rising inflationary environment.Management expects to deliver robust financial performance in 2022. During its second-quarter earnings release, Kraft Heinz raised its organic net sales view for 2022. It expects organic net sales to be up high-single-digit percent year over year. Earlier, it had expected the metric to be up mid-single-digit percent. The revised outlook can be attributed to higher pricing and favorable year-to-date elasticities, especially in the United Sates.Let’s delve deeper.Image Source: Zacks Investment ResearchPricing Actions: Key DriverSolid pricing initiatives have been aiding Kraft Heinz for a while now. In second-quarter 2022, the company’s pricing rose 12.4 percentage points year over year, reflecting growth in all segments. The upside can be attributed to measures undertaken to counter increasing input costs. During the quarter, pricing in North America moved up 13.1 percentage points. The International segment’s pricing moved up 10.3 percentage points. Management expects to see additional benefits from pricing actions in the third quarter.Growth Efforts on TrackKraft Heinz is committed to accelerating its profit and enhancing the long-term shareholders’ value. As part of its transformation phase, management unveiled AGILE@SCALE in February 2022. The strategy will help Kraft Heinz enhance its agile expertise and capabilities via partnerships with technology giants and cutting-edge innovators. The company will leverage its financial flexibility to take over other capabilities. Kraft-O-Matic, the company’s in-house proprietary software and data science model, aids in better analyzing consumer behavior for brands, utilizing integrated point-of-sale, panel and marketing data. On Feb 22, 2022, Kraft Heinz announced a joint venture with TheNotCompany, Inc. (“NotCo”) — a well-known food tech start-up. Through this venture, the parties will work to accelerate the adoption of plant-based foods. On Feb 23, 2022, Kraft Heinz and Simplot Food Group — a division of the J.R. Simplot Company — signed a long-term agreement to name Simplot as the exclusive manufacturer and supplier of Ore-Ida.  The move is in sync with Kraft Heinz’s intentions to manage its portfolio with agility and accelerate growth.The company’s top-line momentum is driven by three pillars of growth, including Consumer Platforms, Foodservice opportunities and further expansion in Emerging Markets. In its last earnings call, management highlighted that it witnessed solid growth across the portfolio, including the GROW platforms. With respect to growing the Emerging Markets, management is on track to expand its presence through a sustainable and repeatable Go-To-Market model. In April 2022, Kraft Heinz acquired a majority stake in a Brazil-based condiments and sauces company — Companhia Hemmer Indústria e Comercio ("Hemmer"). In January 2022, Kraft Heinz acquired 85% stake in Germany-based Just Spices GmbH (“Just Spices”). Management acquired sauces-focused business — Assan Foods — from privately-held Turkish conglomerate, Kibar Holding in October 2021.Hurdles on WayIn the second quarter of 2022, Kraft Heinz’s gross margin came in at 30.3%, down 430 basis points from 34.6% reported in the year-ago quarter. The downside was caused by the dilutive impact of pricing to counter dollar inflation. Adjusted EBITDA fell 10.9% to $1,520 million, reflecting the adverse impact of divestitures and unfavorable currency translation. Management highlighted that adjusted EBITDA reflected increased pricing and efficiency gains, offset by escalated commodity costs as well as supply chain costs and unfavorable volume/mix.For 2022, Kraft Heinz expects inflation to be in the high teens. In its last earnings call, management stated that while some costs like transportation have started to drop from peak levels, overall costs continue to remain high. That said, the Zacks Rank #3 (Hold) company is on track to undertake hedging and cost management strategy to counter rising costs.Kraft Heinz’s shares have increased 6.1% so far this year against the industry’s decline of 0.1%.Looking for Appetizing Food Bets? Check These OutSome top-ranked stocks are The Chef's Warehouse CHEF, General Mills, Inc. GIS and United Natural Foods UNFI.Chef’s Warehouse, a distributor of specialty food products in the United States, currently flaunts a Zacks Rank #1 (Strong Buy). CHEF has a trailing four-quarter earnings surprise of 355.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Chef Warehouse’s current financial year sales suggests growth of 40.7%from the year-ago reported numbers.General Mills, which manufactures and markets branded consumer foods worldwide, currently carries a Zacks Rank of 2 (Buy). GIS has a trailing four-quarter earnings surprise of 6.5%, on average.The Zacks Consensus Estimate for General Mills’ current financial year sales and earnings per share suggests growth of almost 2% and 1.5%, respectively, from the corresponding year-ago reported figures.United Natural Foods distributes natural, organic, specialty, produce and conventional grocery and non-food products. UNFI currently carries a Zacks Rank #2.The Zacks Consensus Estimate for UNFI’s current financial year sales suggests 7.6% growth from the year-ago period’s reported figures. United Natural Foods has a trailing four-quarter earnings surprise of 29.9%, on average. How to Profit from the Hot Electric Vehicle Industry Global electric car sales in 2021 more than doubled their 2020 numbers. And today, the electric vehicle (EV) technology and very nature of the business is changing quickly. The next push for future technologies is happening now and investors who get in early could see exceptional profits. See Zacks' Top Stocks to Profit from the EV Revolution >>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 General Mills, Inc. (GIS): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 31st, 2022

Abercrombie (ANF) Reports Q2 Loss, Provides Dull Outlook

Abercrombie's (ANF) Q2 results reflect the impacts of the current challenging environment and weakness in its Hollister brand due to inflation. It provides a soft view for Q3 and FY22. Shares of Abercrombie & Fitch Co. ANF plunged more than 12% before the start of the trading session on Aug 25, following the sluggish second-quarter fiscal 2022, wherein the top and bottom lines fell year over year.Results were hurt by the current challenging environment and weakness in its Hollister brand, stemming from inflation and the shift in consumer preference, which further led to lower-than-expected conversion and basket size. That said, this Zacks Rank #3 (Hold) company remains on track with its 2025 Always Forward plan.Going ahead, management expects the headwinds to persist. As a result, it has been making efforts to adjust receipts across brands, improve inventory levels and monitor sales volumes.Although year-over-year inventory growth peaked in the fiscal second quarter, it is likely to recover in the second half of fiscal 2022. In August, the company witnessed a steady improvement in the weekly sales trend, the uncertain environment is predicted to linger in the back half of fiscal 2022. It also revised its fiscal 2022 view and issued the third-quarter guidance, which seem drab.Shares of ANF have lost 22.9% in the past three months compared with the industry's decline of 1.4%. Image Source: Zacks Investment Research Sales & Earnings PictureAbercrombie has reported an adjusted loss of 30 cents per share in second-quarter fiscal 2022 that missed the Zacks Consensus Estimate of earnings of 23 cents and reflected a significant decline from earnings of $1.70 in the year-ago quarter.Net sales of $805.1 million declined 7% year over year and lagged the Zacks Consensus Estimate of $848 million. This marked the highest sales since 2015. The metric also fell 4% on a constant currency basis. Also, the company has noted that average unit retail (AUR) improved for the ninth consecutive quarter.Sales By Region and BrandsSales were strong in the United States, down 4% year over year to $578.1 million. International sales declined 14% year over year to $227 million. Sales in EMEA fell 13% year over year to $166.8 million. In APAC, sales declined 33% to $27.8 million.Brand-wise, net sales at Hollister declined 15% year over year to $436.9 million, while at Abercrombie, sales advanced 5% to $368.2 million.MarginsThe gross profit declined 17.3% year over year to $465.9 million. The gross margin contracted 730 bps to 57.9%. The decline can be attributed to 750 bps of higher product costs and 30 bps of unfavorable currency impact, partly offset by AUR growth.Operating expenses, excluding other operating income, increased 4% from the year-ago period. The year-over-year increase was mainly due to inflation and higher digital fulfillment expenses, which somewhat offset lower incentive-based compensation. As a percentage of sales, operating expenses of 58% rose 590 bps from 52.1% in the prior-year quarter.The adjusted operating loss was $21 million against an operating income of $116 million in the year-ago quarter.Other FinancialsAbercrombie has ended second-quarter fiscal 2022 with cash and cash equivalents of $370 million, long-term net borrowings of $308 million, and stockholders’ equity of $661.8 million, excluding non-controlling interests. The company had liquidity of $0.7 billion at the end of the fiscal second quarter and available borrowings of $359 million under the ABL Facility. Net cash used for operating activities was $260 million as of Jul 30, 2022.In the quarter under review, the company repurchased 1 million shares for $18 million. It has $240 million remaining under its share repurchase authorization announced in November 2021.Store UpdateIn the fiscal second quarter, the company opened eight stores, including seven Hollister and one Abercrombie store. The company closed two Hollister stores. As of Jul 30, 2022, its total store base was 734, including 530 stores in the United States and 204 stores internationally.Abercrombie & Fitch Company Price, Consensus and EPS Surprise   Abercrombie & Fitch Company price-consensus-eps-surprise-chart | Abercrombie & Fitch Company QuoteOutlookFor third-quarter fiscal 2022, management envisions a net sales decline in the high-single-digits from the third-quarter fiscal 2021 reported level of $905 million. The sales view includes a 220-bps impact from adverse currency rates. The company anticipates operating margin to be break-even in the fiscal third quarter mainly due to dismal sales and lower AURs.For fiscal 2022, the company anticipates a net sales decline in the mid-single digits compared with the prior mentioned flat to up 2%, whereas it reported $3.7 billion in fiscal 2021. The sales outlook assumes a negative impact of 200 bps from foreign currency.The company expects an operating margin of 1-3%, which reflects a decline from the prior mentioned 5-6%. This can be attributable to lower AURs, which are likely to be partly offset by reduced expenses, adjusted inventory receipt levels and cadence by region in response to current market forces.Capital expenditure is forecast to be $150 million.Stocks to ConsiderHere are three better-ranked stocks to consider — Dollar General DG, Costco COST and Dollar Tree DLTR.Dollar General, a discount retailer, currently carries a Zacks Rank #2 (Buy). DG has an expected EPS growth rate of 12.8% for three to five years. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Dollar General’s current financial-year revenues and EPS suggests growth of 10% and 13.4%, respectively, from the year-ago reported figure. Dollar General has a trailing four-quarter earnings surprise of 2.8%, on average.Costco, which is engaged in the operation of membership warehouses, carries a Zacks Rank #2. COST has an expected EPS growth rate of 9.2% for three to five years.The Zacks Consensus Estimate for Costco’s current financial-year sales and EPS suggests growth of 15.4% and 18.2%, respectively, from the year-ago period. COST has a trailing four-quarter earnings surprise of 9.7%, on average.Dollar Tree operates discount variety retail stores. The stock currently carries a Zacks Rank #2. DLTR has an expected EPS growth rate of 15.5% for three to five years.The Zacks Consensus Estimate for Dollar Tree’s current financial-year revenues and EPS suggests growth of 6.7% and 40.7%, respectively, from the year-ago reported figure. DLTR has a trailing four-quarter earnings surprise of 13.1%, on average. This Little-Known Semiconductor Stock Could Lead to Big Gains for Your Portfolio The significance of semiconductors can't be overstated. Your smartphone couldn't function without it. Your personal computer would crash in minutes. Digital cameras, washing machines, refrigerators, ovens. You wouldn't be able to use any of them without semiconductors. Disruptions in the supply chain have given semiconductors tremendous pricing power. That's why they present such a tremendous opportunity for investors. And today, in a new free report, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most. It's yours free and with no obligation. >>Give me access to my free special report.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 Dollar General Corporation (DG): Free Stock Analysis Report Dollar Tree, Inc. (DLTR): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 25th, 2022