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Twitter"s (TWTR) Q3 Earnings Miss Estimates, Ad Revenues Rise

Twitter's (TWTR) third-quarter 2021 results benefit from strength in advertising revenues, driven by solid brand advertiser demand in the global market. Twitter TWTR reported third-quarter 2021 adjusted loss of 54 cents per share in contrast to the Zacks Consensus Estimate of earnings of 17 cents per share. The company had reported earnings of 19 cents per share in the year-ago quarter.Revenues increased 37% year over year to $1.28 billion that missed the Zacks Consensus Estimate by 0.3%. The year-over-year top-line growth was driven by strong performance across all major products and geographies. Strength in brand advertising as well as accelerating year-over-year growth in Mobile App Promotion (MAP) revenues aided growth.Twitter’s stock price was up about 4% in extended trading on Oct 26. Per the company, the impact of Apple’s AAPL iOS 14.5 privacy change was less than expected in the third quarter and will be modest in the fourth quarter.Earlier this year, Apple introduced a major privacy feature called App Tracking Transparency (ATT) that allowed users to opt out of third-party app tracking. This means apps can no longer collect data about users from third parties and use that data to better target them with ads unless a user specifically gives the app permission to do so.Other tech giants including Snap Inc. SNAP and Facebook FB cited Apple’s new privacy features as the key factor that made ad-targeting difficult in the latest quarter.Twitter, Inc. Price, Consensus and EPS Surprise Twitter, Inc. price-consensus-eps-surprise-chart | Twitter, Inc. QuoteAdvertising Revenue DetailsAdvertising revenues increased 41% year over year to $1.14 billion driven by strong demand in the United States and continued momentum across key markets around the world, fueled by revenue product improvements, strong sales execution, and increased demand for digital ads in general.U.S. advertising revenues totaled $647.4 million, up 51% year over year. International ad revenues increased 30% to $493 million.This Zacks Rank #3 (Hold) company’s advertising revenues witnessed strong contributions from SMB customers, with revenues accelerating in double digits. This reflected increased investments across sales and products with higher spending per advertiser. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Twitter benefited from strong advertiser demand as it looked to launch products and services across a number of key verticals, including technology, retail, media & entertainment, and financial services.Total ad engagements increased 6%, driven by steady growth in ad impressions due to growing audience and increased demand for ads.Cost per engagement (CPE) increased 33%, primarily driven by the mix shift to lower funnel ad formats and like-for-like price increases across most ad formats.Twitter launched a new brand measurement service for third-party partners in the third quarter that provides real-time ad impressions, engagements, and viewability data to support Viewability Verification and Audience Verification for ads.The company also more than doubled the available language targeting options, making 25 new languages available for targeting in the Twitter Ads Manager and through Ads API.Besides, for Website Clicks, Twitter introduced Multi-Destination Carousels, enabling advertisers to market and drive traffic to multiple products inside the same ad.For MAP advertisers, Twitter released an updated Learning Period model in the third quarter. The model delivers more consistent campaign performance, leading to a 36% increase in the number of campaigns that achieved the minimum viable threshold for campaign performance and advertiser retention.User DetailsAverage monetizable daily active users (mDAU) grew 13% year over year to 211 million, driven by global conversation around current events and ongoing product improvements. Average mDAU grew 5 million sequentially.The average U.S. mDAU was 37 million, up 4% from the year-ago quarter and 2% from the previous quarter. The average international mDAU was 174 million, rising 15% year over year and 3% from the previous quarter.In the third quarter, Twitter launched more than 2,300 new Topics, bringing the total number of Topics that people can follow up to 11,800 across 11 languages. Markedly, 230 million accounts now follow at least one Topic.Twitter made it easier for new customers to sign up in the third quarter, with a single sign-on, allowing people to sign up or log into Twitter with their Google Account or Apple ID.The company launched three new monetization products for creators in the third quarter, including Tips, Super Follows, and Ticketed Spaces. Tip Jar enables people to directly support creators through tipping. Ticketed Spaces allows people to pay for access to exclusive live audio experiences and other exclusive content is available via monthly subscription through Super Follows. These features helped Twitter gain subscribers in the reported quarter.The company also started to roll out Communities, an easy way to find and connect with people who have similar interests.Twitter continued to enhance the global conversation on its platform with live and on-demand video content. The company extended its existing partnership with Dow Jones Corporation to include a renewal of the successful WSJ What’s Now series, as well as new Barrons, Investor’s Business Daily, and MarketWatch content on its platform.The company also signed a deal with Fox Sports to bring the best of college football content to its platform with real-time highlights.In the third quarter, Twitter also introduced Safety Mode to protect user privacy. This new feature aims to reduce disruptive interactions by temporarily blocking accounts for using potentially harmful language (such as insults or hateful remarks) or sending repetitive and uninvited replies or mentions.Revenue DetailsU.S. revenues (58% of revenues) surged 45% year over year to $741.8 million. International revenues (42% of revenues) increased 28% to $541.9 million.Japan remained the company’s second-largest market in the reported quarter. Revenues from the country (12% of total revenues) increased 20% to $159 million.Data licensing and other revenues increased 12% from the year-ago quarter to 43 million, driven by MoPub.Operating DetailsTwitter’s total costs and expenses were $2.03 billion, up 130% on a year-over-year basis, driven by a one-time litigation-related net charge of $766 million, as well as higher sales-related expenses, headcount growth, and infrastructure costs.Research and development expenses jumped 55% year over year to $324 million, primarily due to higher personnel-related costs. Sales and marketing expenses increased 40% to $301 million, primarily due to higher sales-related expenses. General and administrative expenses rose 60% to $151 million, primarily due to higher personnel-related costs offset by a decrease in supporting overhead expenses.Adjusted EBITDA loss was $444.8 million against the year-ago quarter’s adjusted EBITDA of $294 million.Twitter incurred operating loss of $743 million, which included a one-time litigation-related net charge of $766 million against the year-ago quarter’s operating income of $56 million. Adjusted operating income, which excludes the $766 million litigation-related net charge, was $23 million, reflecting an adjusted operating margin of 2%.Balance SheetAs of Sep 30, 2021, Twitter had $7.41 billion in cash, cash equivalents and marketable securities, reflecting the repayment of an aggregate principal amount of $954 million in senior convertible notes due in September 2021. The company had $8.61 billion in cash, cash equivalents and marketable securities as of Jun 30, 2021.Net cash provided by operating activities in the reported quarter was $389 million, up from $382 million in the previous quarter.In the third quarter, adjusted free cash flow was $20 million compared with $105.8 million in the previous quarter.The company repurchased $169 million of stock during the third quarter, bringing the total repurchase amount to $915 million to date.OutlookFor the fourth quarter of 2021, Twitter expects total revenues between $1.5 billion and $1.6 billion. GAAP operating income is expected between $130 million and $180 million.For 2021, Twitter expects headcount, along with total costs and expenses, to grow 30% or more with a focus on engineering and products. The company continues to expect total revenues to grow faster than expenses in 2021. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report Snap Inc. (SNAP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 27th, 2021

Is a Beat in Store for Copa Holdings (CPA) in Q3 Earnings?

A rise in passenger revenues is likely to have aided Copa Holdings' (CPA) third-quarter results. Copa Holdings CPA is scheduled to report third-quarter 2021 earnings on Nov 17, after market close.The Zacks Consensus Estimate for third-quarter loss has narrowed to 17 cents from a loss of 37 cents 60 days ago. The carrier has a trailing four-quarter earnings surprise of 14.5% (two miss and two beat), on average.Let’s take a look at the factors that are expected to have influenced the company’s performance in the September quarter.Copa Holdings, S.A. Price and EPS Surprise  Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. Quote An improvement in air-travel demand in Latin America (owing to increased inoculation programs) is expected to get reflected in Copa Holdings’ passenger revenues. The Zacks Consensus Estimate for third-quarter passenger revenues indicates more than a 100% rise from the third-quarter 2020’s reported number.With this anticipated surge in passenger revenues, the company’s top line is likely to reflect a surge  on a year-over-year basis. The company anticipates third-quarter total revenues to be at $415 million. The Zacks Consensus Estimate for the same is pegged at $421 million, indicating growth of more than 100% from the year-ago quarter’s reported number.Capacity, measured in available seat miles/ASMs and traffic, measured in revenue passenger miles/RPM indicates a rise of more than 100% from its year-ago quarter’s reported figures, per the consensus mark. Consequently, load factor for the third quarter is estimated to be at 78%, up from 60% reported in the year-ago-quarter.A rise in fuel cost is expected to have hurt the carrier’s third-quarter bottom line. Per the Zacks Consensus Estimate, average fuel price per gallon for the to-be-reported quarter is pegged at $2.15, suggesting a surge of 63% year over year.What Does the Zacks Model Say?Our proven model conclusively predicts an earnings beat for Copa Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is exactly the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.Earnings ESP: Copa Holdings has an Earnings ESP of +11.77% as the Most Accurate Estimate is pegged at a loss of 15 cents, while the Zacks Consensus Estimate is at a loss of 17 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Copa Holdings carries a Zacks Rank #3.Highlights of Q2 EarningsCopa Holdings incurred a loss (excluding $1.04 from non-recurring items) of 38 cents per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.08. In the year-ago quarter, the company reported a loss of $2.70. Quarterly revenues of $304.3 million surpassed the Zacks Consensus Estimate of $268.4 million and increased 3.5% year over year.Sectorial SnapshotsLet’s look into some of the already released third-quarter 2021 earnings reports from companies within the Zacks Transportation sector.CH Robinson CHRW third-quarter 2021 earnings of $1.85 per share surpassed the Zacks Consensus Estimate of $1.41. The bottom line surged 85% year over year. Total revenues of $6,263.7 million also outperformed the Zacks Consensus Estimate of $5,377.9 million.The top line increased 48.3% year over year owing to higher pricing and volumes across most of the company’s service lines. The stock has moved up 1.7% in the past year. CH Robinson sports a Zacks Rank #1, at present.J.B. Hunt Transportation Services JBHT reported third-quarter earnings of $1.88 per share, surpassing the Zacks Consensus Estimate of $1.77. Total operating revenues of $3144.8 million outperformed the Zacks Consensus Estimate of $3002.1 million.The company exited the third quarter with cash and cash equivalents of $529.6 million compared with $313.3 million at the end of 2020. Long-term debt at J.B. Hunt was $944.9 million compared with $1.31 billion at 2020 end. The stock has soared 50.2% in the past year. J.B. Hunt currently carries a Zacks Rank of 2.Old Dominion Freight Line’s ODFL third-quarter 2021 earnings per share of $2.47 outpaced the Zacks Consensus Estimate by 10 cents. The bottom line surged 44.4% year over year. The upside was driven by an improvement in the operating ratio (operating expenses, as a percentage of revenues) on the back of higher revenues.Revenues at Old Dominion, currently a Zacks #2 Ranked stock, came in at $1400 million. The top line surpassed the Zacks Consensus Estimate of $1,360.3 million and rose 32.3% year over year. The uptick was backed by a 13.7% increase in LTL (Less-Than-Truckload) tons and a 15.7% rise in LTL revenue per hundredweight. Shares of Old Dominion have soared 73.4% in the past year. 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 J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Old Dominion Freight Line, Inc. (ODFL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksNov 15th, 2021

Pacira"s (PCRX) Q3 Earnings Beat Estimates, Revenues Miss Mark

Pacira's (PCRX) earnings beat estimates in the third quarter of 2021 while revenues miss the same. Its flagship product Exparel's sales rise year over year. Pacira BioSciences, Inc. PCRX reported third-quarter 2021 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 66 cents. The company reported earnings of 68 cents per share in the year-ago quarter.Total revenues increased 8.7% to $127.7 million in the third quarter of 2021 from the year-earlier figure of $117.5 million owing to a continuous strong uptake of Exparel. The top line, however, missed the Zacks Consensus Estimate of $130 million.Shares of Pacira have declined 10.3% so far this year compared with the industry’s decrease of 14.1%.Image Source: Zacks Investment ResearchQuarter in DetailPacira’s top line mainly comprises product revenues, other product sales and royalty revenues.Exparel net product sales were $121.9 million, up 7.2% from $113.7 million generated in the year-ago quarter. However, sale of the drug decreased 6.3% on a sequential basis.Exparel/bupivacaine liposome injectable suspension sales came in at $0.7 million in the reported quarter compared with $0.4 million in the year-ago quarter. Exparel is a liposome injection of bupivacaine, indicated for a single-dose administration into the surgical site to produce postsurgical analgesia.Iovera system generated sales worth $4.2 million in the third quarter of 2021, reflecting a sequential increase of 10.5% and a year-over-year rise of 55.5%.Royalty revenues came in at $0.9 million in the reported quarter compared with $0.6 million in the year-ago period.Research and development (R&D) expenses (excluding stock-based compensation) declined 21.3% to $10.4 million.Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) decreased 10.9% year over year to $39.7 million in the reported quarter.2021 OutlookPacira is not providing guidance for 2021 due to the COVID-19 pandemic still negatively impacting sales. As a result, it is reporting monthly intra-quarter unaudited net product sales until the company gains enough visibility around the impacts of COVID-19.Recent UpdatesLast month, Pacira entered into a definitive agreement to acquire Flexion Therapeutics, Inc. FLXN for $8.50 per share in cash plus one non-tradeable contingent value right worth up to $8 per share in cash. With this acquisition, Pacria is looking to strengthen its position in the non-opioid pain management market. The transaction is expected to close later in the fourth quarter of 2021.Flexion’s only marketed drug Zilretta (triamcinolone acetonide extended-release injectable suspension) was approved in 2017 as the first and the only extended-release intra-articular therapy providing relief to osteoarthritis (OA) patients with knee pain.In October 2021, Pacira received a Paragraph IV Certification notice letter, which stated that New Jersey-based eVenus Pharmaceutical Laboratories, Inc. submitted an abbreviated new drug application (ANDA) to the FDA, seeking authorization for the manufacturing and marketing of a generic version of Pacira’s flagship product Exparel in the United States.Pacira BioSciences, Inc. Price, Consensus and EPS Surprise Pacira BioSciences, Inc. price-consensus-eps-surprise-chart | Pacira BioSciences, Inc. QuoteZacks Rank & Stocks to ConsiderPacira currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Enanta Pharmaceuticals, Inc. ENTA and Endo International plc ENDP, both carrying a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Enanta Pharmaceuticals’ loss per share estimates have narrowed 10.2% for 2021 and 16.3% for 2022 over the past 60 days. The stock has skyrocketed 104.7% year to date.Endo International’s earnings estimates have been revised 1.3% upward for 2021 and 0.4% upward for 2022 over the past 60 days. 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. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a 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 Endo International plc (ENDP): Free Stock Analysis Report Pacira BioSciences, Inc. (PCRX): Free Stock Analysis Report Enanta Pharmaceuticals, Inc. (ENTA): Free Stock Analysis Report Flexion Therapeutics, Inc. (FLXN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 3rd, 2021

Stock Market News for Oct 22, 2021

Benchmarks closed mixed on Thursday, with the S&P 500 and the Nasdaq being lifted by upbeat third-quarter corporate earnings reports, while setbacks in White House's efforts to raise corporate tax grabbed investors' attention. Benchmarks closed mixed on Thursday, with the S&P 500 and the Nasdaq being lifted by upbeat third-quarter corporate earnings reports, while setbacks in White House’s efforts to raise corporate tax grabbed investors’ attention. The Dow was weighed by steep decline in International Business Machines after it missed earnings estimates.How Did the Benchmarks Perform?The Dow Jones Industrial Average (DJI) fell 6.26 points, or less than 0.1%, to close at 35,603.08, weighed down by 9.6% decline in shares of International Business Machines Corporation IBM. IBM carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The S&P 500 rose 13.59 points higher, or 0.3%, to close at a record high of 4,549.78 on Thursday. Seven of the 11 major sectors of the broader index closed in the green led by 1.4% gain in the consumer discretionary sector. The energy sector’s 1.8% loss capped gains for the index. The Nasdaq Composite Index closed at 15,215.70, after adding 94.02 points, or 0.6%, led by 10.3% rise in share of Match Group, Inc. MTCH.On Thursday, the fear-gauge CBOE Volatility Index (VIX) decreased 3.1%, to close at 15.01. Declining issues outnumbered advancing ones on the NYSE by a 1.22-to-1 ratio. A total of 10.07 billion shares were traded yesterday, lower than the last 20-session average of 10.27 billion.Q3 Earnings Report ContinuesOn Thursday, business houses continue to report third-quarter 2021 earnings report, while some better-than-expected reports boosted the S&P 500 and the Nasdaq, some earnings miss capped gains.Tesla, Inc. TSLA reported third-quarter 2021 earnings on Wednesday after market close, and the upbeat results helped the share prices to jump 3.3% yesterday. The electric vehicle giant reported earnings of $1.86, which surpassed the Zacks Consensus Estimate of $1.39. Total revenues came in at $13,757 million, beating the consensus mark of $13,163 million. (Read More)Another tech giant, International Business Machines also reported earnings on Wednesday after market close. While the company reported third-quarter 2021 earnings of $2.52 per share, surpassing the Zacks Consensus Estimate of $2.49, IBM missed revenue estimates by 0.8%, which caused its shares to tumble yesterday. (Read More)Similarly, yesterday, AT&T Inc. T reported third-quarter 2021 earnings of 87 cents per share, beating the Zacks Consensus Estimate of 76 cents, but missed on the revenue estimates. Shares dipped 0.6% after the company reported that revenues were down 5.7% year over year. (Read More)Tax on Billionaires Hit a SnagInvestors on Thursday kept a close watch on developments around President Joe Biden’s proposed spending bills. According to a Washington Post’s report, Biden’s advisers are floating new plans, which include a tax on billionaires’ assets, a minimum tax on corporations and a tax on companies issuing stock buybacks, potentially raising hundreds of billions of dollars. Earlier on Wednesday Democratic Senator Kyrsten Sinema of Arizona had underlined that she would oppose any increases in the tax rates for businesses, the rich or capital gains.Initial Claims Hits Post-Pandemic Era LowOn Thursday, the government reported that initial jobless claims for the week ending Oct 16, fell to 290,000, lower than the consensus estimate of 299,000. However, the figures for the week ending Oct 9 were upwardly revised to 296,000. The Labor Department’s report also states that continuing claims also dropped to a new pandemic low, falling to 2.48 million for the week ending Oct 9. For the week, companies held on to existing employees amid the acute shortage of labor in the country. Initial claims fell in the states of Virginia, Pennsylvania and Michigan.Existing Home Sales Jump in SeptemberThe National Association of Realtors reported yesterday that existing-home sales rose 7% to a seasonally adjusted rate of 6.29 million in September, higher than the consensus estimate of 6.07 million. The median existing-home price for all houses last month was $352,800, up 13.3% from the same period last year and unsold inventory sits at a 2.4-month supply, down 7.7% from August, at the present sales pace. 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. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a 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 AT&T Inc. (T): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Match Group Inc. (MTCH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 22nd, 2021

Texas Capital (TCBI) Q3 Earnings Miss Estimates, Revenues Fall

Texas Capital's (TCBI) third-quarter earnings and revenues miss estimates on lower net interest and non-interest income amid a low-rate economy. Texas Capital Bancshares, Inc. TCBI reported adjusted earnings per share of 76 cents per share in third-quarter 2021, missing the Zacks Consensus Estimate of $1.12. Results compare unfavorably with the prior-year quarter’s earnings of $1.08.Lower expenses were a positive. The firm’s credit quality witnessed an improvement. However, a fall in total revenues, along with margin pressure, were deterrents.Net income available to common stockholders for the reported quarter was $39.1 million compared with the prior-year quarter’s $54.7 million.Revenues Decline, Costs FallTotal revenues (net of interest expense) fell 19.7% year over year to $215.32 million in the third quarter on decline in both non-interest income and net interest income. Revenues lagged the Zacks Consensus Estimate of $222.3 million.Texas Capital’s net interest income came in at $194.1 million, down 6.5% year over year, as fall in total average loans and earning asset yields were partially offset by increases in average investment securities and loan fees and decline in cost of funds. Net interest margin contracted 7 basis points (bps) year over year to 2.15%.Non-interest income plummeted 65% to $21.2 million. This decline primarily resulted from a drop in net gain/(loss) on the sale of loans held for sale as well as brokered loan fees and servicing income.Non-interest expenses decreased 8% to $153 million from the prior-year quarter. This mainly resulted from decreases in the communication and technology expenses and servicing-related expenses, partially offset by an increase in salaries and employee benefits.As of Sep 30, 2021, total loans increased marginally on a sequential basis to $23.75 billion, while deposits increased 3.4% to $29.8 billion.Credit Quality StrengthensNon-performing assets totaled 0.37% of the loan portfolio plus other real estate-owned assets compared with the prior-year quarter’s figure of 0.64%. Total non-performing assets plunged 46% to $87.5 million compared with the prior-year quarter.Provision for credit losses aggregated $5 million compared to the year-ago quarter’s $30 million. The company’s net charge-offs were $3.1 million compared with $1.6 million as of Sep 30, 2020.Capital Ratios ImproveThe company’s capital ratios improved in the third quarter. Tangible common equity to total tangible assets came in at 7.8% compared with the year-earlier quarter’s 6.9%.Common equity Tier 1 ratio was 10.7%, up from the prior-year quarter’s 9.1%. Leverage ratio was 9% compared with 7.6% as of Sep 30, 2020.Stockholders’ equity was up 12% year over year to $3.2 billion as of Sep 30, 2021.ConclusionTexas Capital’s controlled expenses and a solid balance sheet during the September-end quarter look impressive. Apart from this, an improving economic situation is anticipated to help the company decrease the provision for credit losses and drive its performance in the days to come. However, lower revenues and margin pressure might erode its near-term profitability.Currently, Texas Capital carries a Zacks Rank #5 (Strong Sell).Texas Capital Bancshares, Inc. Price, Consensus and EPS Surprise Texas Capital Bancshares, Inc. price-consensus-eps-surprise-chart | Texas Capital Bancshares, Inc. QuoteYou can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksBank of America’s BAC third-quarter 2021 earnings of $1.03 per share handily beat the Zacks Consensus Estimate of 77 cents. The bottom line compared favorably with the 37 cents earned in the prior-year quarter.PNC Financial PNC pulled off a third-quarter earnings surprise of 42.4% on substantial reserve release. The adjusted earnings per share of $4.50 exceeded the Zacks Consensus Estimate of $3.16.Large reserve releases, solid investment banking performance and modest rise in loan demand drove JPMorgan’s JPM third-quarter 2021 earnings of $3.78 per share. The bottom line comfortably outpaced the Zacks Consensus Estimate of $3.05.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 Bank of America Corporation (BAC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report Texas Capital Bancshares, Inc. (TCBI): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksOct 21st, 2021

New Intraday High for the Dow and a Six-Day Rally for the S&P

New Intraday High for the Dow and a Six-Day Rally for the S&P We got our first taste of new highs in nearly two months on Wednesday, as the strong start to earnings season keeps stocks grinding mostly higher. The Dow didn’t join its counterparts in the week-long winning streak, but it was the first to return to new highs… at least momentarily. The index moved well past 35,631.19 at its best point today, which makes a new intraday high for the first time since mid-August. By the close, though, the Dow’s advance was 0.43% (or about 152 points) to 35,609.34, leaving it a little more than 16 points away from a new closing high.   Speaking of the that winning streak, the S&P is still going! The index advanced 0.37% to 4536.19, stretching this impressive rally to six days and leaving it less than a point away from its own history. However, money flowed out of tech on Wednesday, which sent the NASDAQ lower by 0.05% (or about 7 points) to 15,121.68. It was a minor slip, but unfortunately it ended the index’s five-day run. It probably didn’t help that shares of Netflix (NFLX) dropped more than 2% in the first session after last night’s quarterly report. The streaming pioneer reported a solid quarter, including an earnings surprise of nearly 25% and better-than-expected subscriber growth of 4.4 million.    “For the 69 S&P 500 members that have reported Q3 results through Wednesday, October 20th, total earnings and revenues are up +35.3% and +12.9%, respectively from the same period last year, with 87.0% beating EPS estimates and 72.5% beating revenue estimates,” according to our Director of Research Sheraz Mian in his new article called “A Strong Earnings Picture Amid Global Headwinds”. These strong results are helping to calm investor concerns that rising inflation and global supply chain issues would stunt corporate results and the pace of the economic recovery. One of the bigger reports of the day came after the bell when EV trailblazer Tesla (TSLA) beat the Zacks Consensus Estimates on both the top and bottom lines. In fact, the EPS surprise was nearly 34% as the company reported record deliveries. Shares are down approximately 1% afterhours, as of this writing. Some of tomorrow’s major reports include Intel (INTC), Danaher (DHR), AT&T (T), Union Pacific (UNP) and Snap (SNAP), among dozens of others. Today's Portfolio Highlights: Home Run Investor: Oil appears headed to $100 a barrel, so Brian wants each of his portfolios to have a few names from the space. This service had only one this morning, so the editor “drilled down for another play”. He picked up Ranger Oil Corp. (ROCC), a Zacks Rank #1 (Strong Buy) oil & gas company that operates primarily in the Eagle Ford Shale in South Texas and Oklahoma. The company topped the Zacks Consensus Estimate three times over the past four quarters, amassing an average surprise of 32% over that time (which includes a miss). Furthermore, ROCC’s valuation is “super low” considering topline growth of 174% in the most recent quarter and operating margins that could “easily” rise to the 32% to 35% range from its current spot at 25%. Read the full write-up for a lot more on today’s addition of ROCC. TAZR Trader: Less than a week after buying Pinterest (PINS), shares of this social media platform spiked 12.8% on Wednesday due to rumors that Paypal (PYPL) is interested in buying it out with a $70 offer. Whether or not the deal happens, PINS was the best performer among all ZU names today. Ford (F) also made the top five with a rise of 4%. In other news, Kevin added a small, starter position in Fastly (FSLY), which plunged to earth after investors “loved it too much” last year. However, the editor decided to “nibble” on the name since that selloff seemed to be a capitulation-type move. Plus, FSLY may be partnered with Apple (AAPL) on the new iCloud+ Private Relay service. Kevin thinks the stock has “definitely” hit bottom and might add more after the Q3 report on Nov 3. Read the complete commentary for a lot more on FSLY and PINS. Surprise Trader: The new addition to the portfolio on Wednesday is Tech Resources (TECK), a mining and mineral development company with units focused on steelmaking, coal, copper, zinc and energy. This Zack Rank #1 (Strong Buy) will be going for its sixth straight positive surprise when it reports again on Tuesday, October 26 after the bell. TECK has a positive Earnings ESP of 9.86% heading into the print. Dave added TECK today with a 12.5% allocation and also sold Heartland Express (HTLD) for 2.2% in a week. Learn more about today’s action in the full write-up. By the way, this portfolio had a top performer today as Fulton Financial (FULT) rose 6.7%. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksOct 21st, 2021

Futures Flat As Bitcoin Nears All-Time High, Yen Tumbles To 4 Year Low

Futures Flat As Bitcoin Nears All-Time High, Yen Tumbles To 4 Year Low US index futures were little changed as investors weighed the start of the earnings season against growing stagflation, tightening, energy crisis, China property and supply risks. S&P 500 futures were flat after the cash index edged closer to a record on Tuesday, rising above 4,500. Contracts on the Nasdaq 100 were also unchanged after the main index rallied for the past five days. At 7:30 a.m. ET, Dow e-minis were down 8 points, or 0.02%, S&P 500 e-minis were down 1 point, or 0.03%, and Nasdaq 100 e-minis were up 5 points, or 0.03%. Oil was down and the dollar steadied. Bitcoin traded just shy of its all time high overnight, and was last seen around $64,000. The S&P closed higher on Tuesday with the biggest boosts from the technology and healthcare sectors amid optimism about solid third-quarter earnings season. The index is just 0.4% below its early September record close, while the Dow Jones Industrials average is 0.5% below its all-time high reached in mid-August. "Earlier this month, stagflation was the buzzword on Wall Street. But now excessive pessimism is receding, especially after strong U.S. retail sales data on Friday," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities. "Tech shares and other high-growth shares that would have been sold on rising bond yields are rallying, which clearly shows that there is now strong optimism on upcoming earnings." The positive mood saw U.S. bond yields rising further, with the 10-year U.S. Treasuries yield climbing to 1.67% , a high last seen in May. Shorter yields dipped, however, with the two-year yield slipping to 0.404% from Monday's peak of 0.448% as traders took profits for now from bets that the U.S. Federal Reserve will turn hawkish at its upcoming policy meeting in early November. Investors expect the Fed to announce tapering of its bond buying and money markets futures are pricing in one rate hike later next year. "The Fed is likely to become more hawkish, probably tweaking its language on its assessment that inflation will be transient. While the Fed will maintain tapering is not linked to a future rate hike, the market will likely try to price in rate hikes and flatten the yield curve," said Naokazu Koshimizu, senior strategist at Nomura Securities. In premarket trading, Tesla edged 0.4% lower in the run up to its quarterly results after markets close, with investors awaiting details on its performance in China. Anthem rose 0.6% as the second largest health U.S. insurer raised its profit outlook for 2021 after beating third-quarter profit estimates. United Airlines Holdings gained 1.6% after the carrier reported a smaller quarterly loss than a year ago on travel rebound. Ford gained 1.9% after Credit Suisse upgraded the U.S. automaker’s stock to ‘outperform’ on EV transition. Oil majors Exxon Mobil and Chevron Corp slipped 0.7% and 0.6%, respectively, tracking crude prices. Meanwhile, Chinese technology ADRs climbed as jitters in the wake of President Xi Jinping’s regulatory crackdowns fade. Netflix’s global sensation “Squid Game” helped lure more customers than expected, the world’s largest streaming service said as it predicted a packed lineup would further boost signups through the end of the year. Its shares, however, fell 2.7% after hitting a record high earlier this month and gaining 18.2% year-to-date. Here are some of the other biggest U.S. movers today: Chinese tech stocks listed in the U.S. rally in premarket with Hong Kong peers as jitters in the wake of President Xi Jinping’s regulatory crackdowns fade; Pinduoduo (PDD US) +1.7%; Didi (DIDI US) +1.3% Alibaba (BABA US) jumped 6.7% in Hong Kong after reports that founder Jack Ma has traveled abroad for the first time in a year United Airlines (UAL US) gains 2% in U.S. premarket trading after the airline posted a narrower loss than expected despite the impact of the coronavirus delta variant. Cowen notes that 3Q was better than expected and also ahead of management’s last guidance from early September Novavax (NVAX US) shares fall as much as 25% in U.S. premarket trading after Politico reported a potential delay in registering its Covid-19 vaccine candidate with the U.S. Food and Drug Administration in connection with inadequate purity levels Vinco Ventures (BBIG US) shares slump 15% in premarket trading after the company reported the resignations of Chief Executive Officer Christopher Ferguson and Chief Financial Officer Brett Vroman Ford (F US) shares gain 1.7% premarket after Credit Suisse upgrades to outperform with joint Street-high target of $20 following a significant turnaround over the past year Stride (LRN US) gained 7.9% Tuesday postmarket after the education company forecast revenue for the full year that beat the highest analyst estimate WD-40 (WDFC US) sank 10% in postmarket trading after forecasting earnings per share for 2022 that missed the average analyst estimate Omnicom (OMC US) fell 3% in postmarket trading after third quarter revenue fell short of some analyst estimates Canadian National (CNI US) U.S.-listed shares rose 4.6% in postmarket trading after reporting adjusted earnings per share for the third quarter that beat the average analyst estimate Akero Therapeutics (AKRO US) shares rose as much as 12% in Tuesday extended trading after co. said the U.S Verizon Communication, Abbott Laboratories, Tesla Inc, Kinder Morgan and IBM are set to report their earnings later in the day.  Analysts expect S&P 500 earnings to rise 32.4% from a year earlier, according to Refinitiv data, while also keeping a close eye on growth outlook from companies that are faced with rising costs, labor shortages and supply chain disruptions. “Investor response to the latest set of earnings reports has been a touch hit and miss with supply chain issues dogging both Procter and Gamble and Philip Morris,” wrote Danni Hewson, financial analyst at AJ Bell in a client note. “After six quarters of beating earnings expectations, the focus may now shift to forward guidance for 2022 and away from the likely better than expected results for this quarter,” Clive Emery, a multi asset fund manager at Invesco said in a note. “If CEOs are more conservative, this could dent market pricing – especially after such strong moves in equity markets over the last 18 months.” In Europe, stocks were also little changed as gains in food and beverage stocks offset losses in miners which are some of the region’s steepest decliners as base metals slip after China launched a blitz of measures to tackle the energy crisis. The Stoxx Europe 600 basic resources index drops 2% as of 10:56am in London, worst performance among Stoxx 600 sectors. Here are some of the biggest European movers today: Falck Renewables shares rise as much as 15% after Infrastructure Investments Fund agreed to buy Falck SpA’s 60% stake in the company at EU8.81/share. IIF will launch a mandatory cash tender offer for Falck Renewables’ remaining share capital after the transaction. Husqvarna shares advance as much as 7.7%, the most intraday since May 2020, after reporting 3Q operating profit that Pareto Securities says is “substantially” stronger than expected. Getinge shares jump as much as 8.1% to a record high, leading the OMX Stockholm 30 index, after 3Q earnings which Handelsbanken (hold) says showed “impressive” order intake and operating leverage. Deliveroo shares jump as much as 4.9% to their highest level since Sept. 30, after the U.K. online food delivery firm hikes its growth forecast, which Jefferies says is an “aspiration” for players in the sector. Nestle shares advance as much as 3.9% after the world’s largest food company increased its sales outlook for the year. This along with the lack of a negative margin update “should be enough to reassure,” according to Citigroup. AutoStore Holdings shares jumped as much as 15% in its Oslo trading debut after pricing shares at the top end of the marketed range as an online shopping boom and labor shortages drive up demand for its automated warehouse robots. Kering SA shares tumbled as much as 5.8% after slowing growth at Gucci, its biggest brand, put more pressure on the label’s new collection to deliver a strong holiday season. Antofagasta shares slump as much as 6.3%, most intraday for two months, after the miner guides for lower copper production next year. Citi and Morgan Stanley analysts say 2022 outlook came in below expectations Kuehne + Nagel shares fall as much as 4.7% to their lowest level in five months after working- capital concerns outweighed a 3Q earnings beat for Swiss logistics operator. Earlier in the session, Asian stocks advanced with Hong Kong-listed tech shares extending their rally to a fourth day, buoyed by encouraging U.S. earnings and growing optimism that the strictest of China’s new regulations on tech firms may already be announced.  The MSCI Asia Pacific Index rose as much as 0.7%, powered by Alibaba Group Holding Ltd., which closed up 6.7%. The equity gauge also climbed after Johnson & Johnson raised its profit forecast and Netflix Inc. reported a jump in subscribers. Hong Kong and Australia were among the top-performing markets.  “Asian stocks appear to be taking their cue from the U.S. earnings season and are being bought on the back of the nascent technical confirmation,” said Justin Tang, the head of Asian research at United First Partners. The regional benchmark has gained 5% over the past two weeks as the earnings season progresses and inflation and supply chain worries ease. The measure is close to surpassing its 100-day moving average. Coal stocks listed in mainland China slumped after the nation’s top economic planner said it’s studying ways to intervene in the coal market as the government tries to rein in rising prices and curtail shortfalls. Meanwhile, expectations are falling that China’s central bank will ease monetary policy by cutting the amount of cash banks have to hold in reserve, according to a front-page story from the central bank’s own newspaper. Japanese equities eked out a second day of gains, driven by advances in telecommunications providers. Banks were also among the biggest boosts to the Topix, which rose less than 0.1%. SoftBank Group and Fast Retailing were the largest contributors to a 0.1% gain in the Nikkei 225. U.S. equities extended a rally on Tuesday as solid corporate results helped counter concerns stemming from elevated inflation. In Australia, the S&P/ASX 200 index rose 0.5% to 7,413.70, its highest close since Sept. 16. Banks boosted the index as a subgauge of financials hit a four-year peak. Kogan.com rallied after the company reported gross sales for the first quarter of A$330.5 million vs. A$273 million y/y. Whitehaven plunged after China’s top economic planner said it is studying ways to intervene in the coal market as the government tries to rein in rising prices and curtail shortfalls. In New Zealand, the S&P/NZX 50 index rose 0.4% to 13,114.24 In FX, the Bloomberg dollar index is little changed in London trade following yesterday’s slide and the greenback traded mixed against its Group-of-10 peers. The Treasury curve held on to yesterday’s steepening as the 2-year yield fell a second day, while the 10- year yield was steady after earlier rising to 1.67% for the first time since May. Norway’s krone was the worst G-10 performer as it fell from the European open, after yesterday reaching a four-month high versus the dollar. The pound slipped, reversing modest gains, after the U.K.’s September inflation reading came in lower than expectations; still, it’s well beyond the Bank of England’s target and it’s the last before the rate decision in November. Australia’s led G-10 gains and the sovereign bond curve bear steepened, tracking yesterday’s Treasury moves. The yen fell to weakest level in almost four years as traders added to bets on Fed rate hikes and rising oil prices boosted concern about the Japanese trade deficit. China’s offshore yuan extends its overnight softness after a weaker than expected fixing, with USD/CNH 0.25% higher. In rates, treasuries were narrowly mixed and off lows reached during Asia session after being led higher during European morning by gilts, where short maturities outperform. The 10-year TSY yield touched 1.67%, the highest level since May. The treasury futures rally stalled after a block sale in 10-year contracts, apparently fading strength. Treasury curve pivots around a little-changed 10-year sector, with front-end yields slightly richer on the day, long-end slightly cheaper; 5s30s, steeper by 2bp, extends rebound from Monday’s multimonth low; U.K. 10-year yield is lower by nearly 4bp. U.S. session includes 20-year bond auction.   Bunds and gilts ground higher in quiet trade, with curves having a small steepening bias. Long end USTs cheapen 1bp, gilts richen ~2.5bps at the short end. Peripheral spreads are marginally tighter to Germany. Italy’s green BTP syndication is well received with final books over EU48b. European equities fade a small opening dip to trade little changed. Price action is quiet, V2X drops toward 16 In commodities, crude futures drift lower. WTI drops 0.9% near $82.20, Brent is 1% lower holding above $84. Spot gold slowly extends Asia’s gains, rising $9 to trade near $1,780/oz. Most base metals are under pressure with LME copper and aluminum underperforming peers. In cryptocurrencies, bitcoin stood at $64,068, near its all-time peak of $64,895 as the first U.S. bitcoin futures-based exchange-traded fund began trading on Tuesday Looking at the day ahead now, and data releases include the UK and Canadian CPI readings for September, alongside the German PPI reading for the same month. From central banks, the Fed will be releasing their Beige Book, and we’ll hear from the Fed’s Bostic, Kashkari, Evans, Bullard and Quarles, as well as the ECB’s Villeroy, Elderson, Holzmann and Visco. Finally, today’s earnings releases include Tesla, Verizon Communications, Abbott Laboratories, NextEra Energy and IBM. Market Snapshot S&P 500 futures little changed at 4,509.50 MXAP up 0.4% to 200.82 MXAPJ up 0.5% to 661.79 Nikkei up 0.1% to 29,255.55 Topix little changed at 2,027.67 Hang Seng Index up 1.4% to 26,136.02 Shanghai Composite down 0.2% to 3,587.00 Sensex down 0.6% to 61,343.39 Australia S&P/ASX 200 up 0.5% to 7,413.67 Kospi down 0.5% to 3,013.13 STOXX Europe 600 little changed at 468.88 German 10Y yield rose 8.5 bps to -0.115% Euro little changed at $1.1628 Brent Futures down 0.9% to $84.32/bbl Gold spot up 0.5% to $1,777.33 U.S. Dollar Index little changed at 93.80 Top Overnight News from Bloomberg Business Secretary Kwasi Kwarteng said there won’t be a fresh lockdown of the U.K. economy even as Covid-19 cases tick upwards and Prime Minister Boris Johnson warns of a difficult winter ahead The recovery in France and in Europe “remains very strong,” Bank of France Governor Francois Villeroy de Galhau says on Wednesday during a National Assembly finance committee hearing The yen’s tough year is only going to get tougher as a rising tide of oil prices and global yields threatens to send Japan’s currency past 115 per dollar for the first time since 2017 PBOC Deputy Governor Pan Gongsheng says financial activities by China’s property sector and financial market prices are gradually becoming normal, China Business News reports, citing a speech at a forum in Beijing Sinic Holdings Group Co. became the latest Chinese real estate firm to default as investors wait to see whether China Evergrande Group Inc. will meet overdue interest payments on dollar bonds this week A more detailed look at global markets from Newsquawk Asian equity markets traded mostly positive as the region took its cue from the extended gains on Wall Street where sentiment was underpinned amid encouraging earnings results and with some hopes for a breakthrough on reconciliation as the White House and Democrats continued deliberations. ASX 200 (+0.5%) was led higher by outperformance in tech and with nearly all of its sectors in the green, while there were also gains seen in some of the blue-chip miners and across the big four banks. Nikkei 225 (+0.1%) was lifted by the weaker currency and following better than expected Exports and Imports data, although the index stalled just shy of the 29.5k level, while KOSPI (-0.5%) failed to hold on to opening gains with confirmation from North Korea that it fired a new submarine launched ballistic missile on Tuesday. Hang Seng (+1.4%) and Shanghai Comp. (-0.1%) were varied whereby Hong Kong was boosted by tech and health care with Alibaba leading the advances after it recently unveiled China’s most advanced chip and with its founder Jack Ma travelling abroad for the first time in over a year who is currently on a study tour in Spain. Conversely, the mainland was subdued alongside weakness in domestic commodity prices and despite a firmer liquidity effort by the PBoC, while the central bank provided no surprises in maintaining its benchmark Loan Prime Rates unchanged for the 18th consecutive month and a PBoC-backed paper also noted that expectations for a RRR cut during Q4 have eased. Finally, 10yr JGBs were lower amid spillover selling from global peers and recent curve steepening in US which desks attributed to positioning and upcoming supply, although the downside for JGBs was limited by the presence of the BoJ in the market for nearly JPY 1.4tln of JGBs heavily concentrated in 1yr-10yr maturities. Top Asian News Abu Dhabi’s Top Fund Backs Indonesia’s Largest Internet Firm Singapore Category E COE Price Rises to Highest Since Oct. 2013 China’s Liu He Says Property Market Risks Are Controllable: 21st Rio’s New CEO Starts Turnaround With $7.5 Billion Climate Pledge It’s been a choppy start to the session for European equities (Euro Stoxx 50 flat; Stoxx 600 flat) as opening losses were quickly trimmed after the cash open. Stocks in Europe were unable to benefit from the constructive APAC handover, which itself benefitted from a strong Wall St close as stocks in the US gained for a fifth consecutive session. As it stands, US equity index futures are relatively flat as indices succumb to the choppy price action with events on Capitol Hill not providing much guidance for price action as lawmakers strive to reach a deal on spending by the end of the week. Back to Europe and sectoral performance is somewhat mixed with clear outperformance in the Food & Beverage sector as earnings from Swiss heavyweight Nestle (+3.2%) provides support and prompts upside in the SMI (+0.7%). Nestle reported a beat on 9M revenues and raised FY guidance amid performance of coffee and pet food sales, whilst noting that it increased pricing in a “responsible manner” during Q3. Elsewhere in Switzerland, Roche (-1.0%) also beat on revenues and raised guidance but was unable to benefit from a lift in its share price. To the downside, Basic Resources lag amid softness in some base metals prices as well as a production update from Antofagasta (-4.2%) and a broker downgrade for Rio Tinto (-4.0%). Retail names are also trading on a softer footing after Q3 earnings from Kering (-4.0%) saw the Co. report a decline in consolidated revenues and note that performance for Gucci was hit by a resurgence of COVID-19 cases in Asia. H&M (-2.7%) is also weighing on the sector after a broker downgrade at Morgan Stanley. Elsewhere, Deliveroo (+3%) is seeing upside today after the Co. upgraded Gross Transaction Value (GTV) growth guidance. Additionally, in what has been a tough week for the Co., IAG (-3.6%) is seeing further losses after being downgraded at Peel Hunt. Finally, updates from the likes of materials name Akzo Nobel (supply chain woes) and semiconductor ASML (revenues fell short of expectations) have sent their shares lower by 1.5% and 1.7% respectively. Top European News Weidmann to to Step Down as Bundesbank Chief at End of Year Credit Suisse Dodges Bigger Fine With Debt-Forgiveness Vow Vinci Up After Reporting Higher 9m Sales; Guidance Confirmed Covid Tests Boost Roche Growth Once Again, Lifting Outlook In FX, the Index has recovered from yesterday's decline, which saw a base at 93.500 – matching the 32.8% Fib retracement of the September move, with the Index now eyeing the 21 DMA at 93.917 ahead of 94.000. The main stateside development has been on the fiscal front, where President Biden told Democrat lawmakers he believed they could secure an agreement for a tax and spending proposal valued at USD 1.75tln-1.90tln, whilst US progressive Democratic Rep. Jayapal said she feels even more optimistic after the White House meeting. As Republicans fully opposed Biden's plans, all Democrat votes are needed in the Senate, whilst only a few can be spared in the House. As a reminder, Congress set an Oct 31st deadline for the passage. Negotiations are expected to wrap up as soon as this week. Ahead, the stateside docket is quiet aside from several Fed regulars after the European close. NZD, AUD, CAD - The Kiwi stands as the current outperformer in a continuation of the strength seen as bets mount for a steeper RBNZ OCR hike at the upcoming meeting in light of the CPI metrics earlier this week. The NZD/USD pair also sees some technical tailwinds after failing to convincingly breach 0.7150 to the downside overnight. AUD/USD meanwhile eyes 0.7500 to the upside from a 0.7466 base with some potential support seen as China taps into Aussie coal amid surging demand. USD/CAD dips below 1.2350 but remains within yesterday's 1.2309-76 range ahead of Canadian CPI later – with headline Y/Y expected to tick higher to 4.3% from 4.1%. EUR, GBP - Both flat vs the Dollar and against each other. Sterling saw some mild weakness as UK CPI narrowly missed expectations at 3.1% vs exp. 3.2% for the headline Y/Y, in turn prompting market pricing to ease a touch as the dust settled – with the implied rate for the 4th Nov meeting modestly under 25bps vs 25.71bps heading into the release. That being said, the slight miss is likely not to provide enough ammunition for the BoE doves, whilst the hawks will likely continue to warn the dangers of persistently high inflation – ultimately not settling the debate on the MPC regarding how soon it should raise rates. GBP/USD fell back under its 100 DMA (1.3805) from a 1.3814 high. From a technical standpoint, aside from yesterday's 1.3833 peak, the pair sees the 200 DMA at 1.3846. EUR/USD meanwhile rebounded off its 21 DMA (1.1615) but remains under 1.1669 high, having seen little reaction to the unrevised Y/Y final EZ CPI metrics, although the M/M metrics were revised slightly higher as expected. Elsewhere, it is worth noting that ECB-hawk Weidmann has submitted his resignation to the Bundesbank and the ECB ahead of next week's Governing Council confab. JPY - The JPY is relatively flat intraday, but overnight price action was interesting as USD/JPY drifted to a high of 114.69, with participants recently flagging barriers just ahead of 115.00. Some have also cited Gatobi demand, where accounts In commodities, WTI and Brent Dec futures are marginally softer on the day in a continuation of the downward trajectory during US hours yesterday. WTI has dipped below USD 82/bbl (vs high USD 82.60/bbl) while its Brent counterpart hovers around USD 84.50/bbl (vs high USD 85.20/bbl). The subdued prices come amid a larger-than-expected build in Private inventories, although the internals were bullish, with the DoEs headline expected to print a build of some 1.8mln bbls. Elsewhere, the Iraqi energy minister has been vocal throughout the session, saying he expects oil prices to reach USD 100/bbl in Q1 and Q2 2022 – in contrast to comments he made last week which suggested that oil price is unlikely to increase further; whilst he also recently noted oil prices between USD 75-80/bbl is a fair price for producers and consumers. The Iraqi minister today said it is preferable for long-term oil prices between USD 75-85/bbl, and OPEC+ is now discussing ways to balance oil prices but no decision has yet been made to add more production above the agreed levels. Elsewhere, following India’s call on OPEC yesterday to lower prices, India’s HPCL executive says current oil prices are high for India; USD 60-70/bbl is comfortable and high oil prices may impact demand growth. Over to metals spot gold resides around its 50 DMA at USD 1,778/oz while spot silver eyes USD 24/bbl to the upside. Overnight, China’s coal intervention saw prices slump – with thermal coal futures hitting limit down and coke futures opening lower by 9%. LME copper prices are also softer, with the contract briefly dipping under USD 10k/t overnight. US Event Calendar 7am: Oct. MBA Mortgage Applications, prior 0.2% Oct. 20-Oct. 22: Sept. Monthly Budget Statement, est. -$59b, prior -$124.6b 2pm: U.S. Federal Reserve Releases Beige Book DB's Jim Reid concludes the overnight wrap Whilst inflation concerns are still very much bubbling under the surface of markets, risk appetite strengthened further yesterday thanks in no small part to decent earnings reports. There are no signs of widespread erosions of margins at the moment. Perhaps there is so much money sloshing about that for now prices are broadly being passed on. We’ll get a better picture of this as the earnings season develops. Indeed, the selloff from September feels like an increasingly distant memory now, with the S&P 500 (+0.74%) advancing for a 5th consecutive session to leave the index just 0.38% beneath all-time closing high from early September. Earlier Europe’s STOXX 600 (+0.33%) also moved higher. In the US, earnings supported sentiment yet again. 10 of the 11 companies reporting during New York trading beating estimates, whilst all 4 of the after-hours reporting beat as well. That brings the total number of reporters for the season thus far to 57, 50 of whom have beat earnings expectations. Most sectors were higher yesterday, with health care (+1.31%), utilities (+1.26%), and energy (+1.14%) leading the way; only consumer discretionary (-0.29%) lagged. We even saw the FANG+ index (+1.56%) of megacap tech stocks hit a new record ahead of Tesla’s earnings today, whilst the NASDAQ (+0.72%) was also up for a 5th consecutive session. Equities may be brushing off the inflation stories for now but they are hardly going away, as yesterday saw oil prices climb to fresh multi-year highs. Brent Crude was up +0.89% to close above $85/bbl for the first time since 2018, whilst WTI (+0.63%) similarly advanced to close just shy of $83/bbl, a mark not reached since 2014. And investor expectations of future inflation are still moving higher in many places, with the Euro Area 5y5y forward inflation swap up +4.0bps to 1.90%, also the highest level since 2014. Against this backdrop, sovereign bonds continued to selloff on both sides of the Atlantic, even though investors slightly pared back some of their Monday bets on near-term rate hikes by the Fed and the BoE. 10yr yields moved higher across the board, with those on Treasuries up +3.7bps to 1.64%, their highest closing level since early June, just as those on bunds (+4.3bps), OATs (+4.3bps) and BTPs (+4.8bps) similarly moved higher. It was a more divergent picture at the 2yr horizon however, with those on 2yr Treasuries down -3.0bps after five days of increases, whereas those on gilts were up +1.0bps. Watch out for UK inflation numbers shortly after this hits your inboxes although this may be the calm (due to base effects) before the inflationary storm in the coming months. From central banks, we had the latest global hike yesterday in Hungary, where the base rate was raised by 15bps to 1.80%, in line with consensus expectations, with Deputy Governor Virag saying afterwards that this monetary tightening was set to carry on into next year. However, we did get some pushback to recent market pricing from ECB chief economist Lane, who said that “If you look at market pricing of the forward interest rate curve, I think it’s challenging to reconcile some of the market views with our pretty clear rate forward guidance”. This didn’t really hit fixed income but it did see the euro pare back some of its gains against the US dollar yesterday, ending the session up just +0.08%, down from an intraday high of +0.51%. Asian equities have followed those moves higher overnight, with the Hang Seng (+1.71%), Nikkei (+0.27%), CSI (+0.08%) and Shanghai Composite (+0.03%) all trading higher, although the KOSPI (-0.11%) has lost ground. China’s property market continues to be in focus after home prices fell -0.08% in September, which is their first monthly decline since April 2015. Separately, Chinese coal futures (-8.00%) have snapped a run of 8 consecutive gains this morning after the country’s National Development and Reform Commission said that it wanted to ensure a rise in coal output to 12m tons per day, and that they would also be looking at other measures to intervene in the market. Outside of Asia, equity futures are pointing slightly lower, with those on the S&P 500 down -0.03%. The pandemic hasn’t been a major influence on markets in recent weeks but there may be some initial signs that the global decline in cases that we’ve seen since late August has stopped. Looking at data from John Hopkins University, the rolling weekly change in confirmed cases has ticked up on each of Saturday, Sunday and Monday. And although we shouldn’t over-interpret a few days’ numbers, we had already seen the rate of decline slow for 3 successive weeks now, which was probably to be expected given the time of year. We’re certainly coming up to a key period where a more indoor northern hemisphere life will combine with waning vaccine effectiveness to test the resolve of the authorities to maintain relatively restriction-free economies. Boosters may be key here. Once we get past this winter things may get easier particularly with new medicines in the pipeline like the viral pill from Merck that trials showed reduced hospitalisations and deaths by around half. On the data front, US housing starts fell to an annualised rate of 1.555m in September (vs. 1.615m expected), whilst building permits also fell to an annualised rate of 1.589m (vs. 1.680m expected). The previous month’s numbers were also revised down for both. Finally in the US, after an acrimonious weekend, Senators Sanders and Manchin expressed optimism they could agree on a framework for the next reconciliation bill by the end of the week in bilateral negotiations, which is set to contain a number of President Biden’s key legislative goals. To the day ahead now, and data releases include the UK and Canadian CPI readings for September, alongside the German PPI reading for the same month. From central banks, the Fed will be releasing their Beige Book, and we’ll hear from the Fed’s Bostic, Kashkari, Evans, Bullard and Quarles, as well as the ECB’s Villeroy, Elderson, Holzmann and Visco. Finally, today’s earnings releases include Tesla, Verizon Communications, Abbott Laboratories, NextEra Energy and IBM. Tyler Durden Wed, 10/20/2021 - 07:59.....»»

Category: smallbizSource: nytOct 20th, 2021

Dow, S&P Slip 1% as Covid Cases Continue to Rise

Dow, S&P Slip 1% as Covid Cases Continue to Rise SPECIAL ALERT: Remember, the November episode of the Zacks Ultimate Strategy Session is now available for viewing! Don’t miss your chance to hear:   ▪ Sheraz Mian and David Bartosiak Agree to Disagree on the sectors best positioned to perform in 2021 and beyond   ▪ Kevin Matras discusses what investors should do now that the election is over in Zacks Mailbag ▪ Sheraz and Dr. John Blank choose one portfolio to give feedback for improvement ▪ Market conditions from both fundamental and technical views ▪ The full list of top-performing stocks over the past 30 days ▪ New stocks added to the Zacks Ultimate portfolio ▪ And much more Simply log on to Zacks.com and view the November episode here. And please let us know what you think of these monthly episodes. Email all feedback to mailbag@zacks.com. The major indices all moved in the same direction on Thursday, but unfortunately that direction was lower as the vaccine euphoria waned amid a rise in coronavirus cases. You really can’t blame the market for getting a little bit ahead of itself earlier this week. The Pfizer (PFE)/BioNTech announcement on Monday was the best news we’ve heard in the pandemic era. However, we’re still months away from the vaccine being available to the public… and that’s IF everything goes smoothly from here on out. The problem right now, though, is the sharp rise in cases across the country and the possibility of more lockdowns. That’s what the market was focused on today. The Dow moved lower for a second straight session, but this time the drop was much more severe at 1.08%. The index lost approximately 317 points to finish at 29,080.17. But it’s still up more than 2.5% for the week heading into Friday, which isn’t too surprising after soaring just under 1100 points on Monday and Tuesday. The S&P slipped 1% to 3537.01 and is now up 0.8% over the past four days. The NASDAQ outperformed its counterparts by declining only 0.65% (or about 76 points) to 11,709.59. The latter index is still down by well over 1% heading into Friday. The NASDAQ lost about 3% in the first two days of the week after money rotated out of tech, but soared 2% yesterday. Meanwhile, jobless claims came in at 709,000 last week, which beat expectations and was 48K better than the previous week. This marks the fourth straight reading below 800K. Hopefully, we’ll be talking about “below 700K” moving forward. Today's Portfolio Highlights: Stocks Under $10: Money is finally returning to the market from the sidelines, so Brian sees a great opportunity to get exposure levels back up in all his portfolios. For this service, the editor picked up Immersion Corp. (IMMR) on Thursday. This Zacks Rank #2 (Buy) develops hardware and software technologies that enable users to interact with computers using their sense of touch. Earnings beat the Zacks Consensus Estimate by 25% in the most recent report, which makes three positive surprises in the past four quarters. Margins are also showing a “dramatic improvement”. IMMR was a $10 stock back in early September, but it slipped approximately 35% from there. Brian thinks it’s about time for the stock to begin climbing again. Read the complete commentary for more on this addition, and don’t be surprised if there's another buy tomorrow. In other news, this portfolio had a top performer today as Avid Bioservices (CDMO) advanced 6.1%.  Counterstrike: The vaccine news on Monday sent shares of Penn National Gaming (PENN) sharply higher, but it didn’t last long. The stock pulled right back to its 50-day. Jeremy sees “a lot of meat on the bone” for this owner and manager of gaming and racing facilities. The editor is especially intrigued by its relationship with Barstool sports. The spike in coronavirus cases could be a problem for PENN if the country locks down again, but the Barstool betting app is very popular and will be a tailwind moving forward. Due to such unpredictability, the portfolio added PENN with a smaller 4% allocation and will buy more if necessary. Jeremy also thinks PENN will move along with DraftKings, which he believes will detail strong monthly players and revenue per player when it reports tomorrow. Read the full write-up for more. Healthcare Innovators: Only nine companies from the giant medical sector have Zacks Rank #1 (Strong Buy) status. On Thursday, Kevin added one of them. He picked up Hologic (HOLX), which is a medical diagnostics provider that specializes in women’s health under normal circumstances. But these days, it's also a major provider of Covid testing products. In fact, the company serviced about 32% of all testing volumes in the fourth quarter with more expected in the future. As a result, HOLX had a fantastic “beat-and-raise” quarter recently, which led earnings estimates higher and convinced several analysts to raise their price targets. Read the complete commentary for more on this addition, including specifics on what the firms are saying. Meanwhile, the portfolio sold bluebird bio (BLUE) after losing patience with the company, but also had two of the biggest winners among all ZU names today with Global Blood Therapeutics (GBT, +6.85%) and Moderna (MRNA, +6.51%). Home Run Investor: The shipping names have seen some big moves lately. Meanwhile, this portfolio needs to increase exposure. Therefore, it was a no-brainer for Brian to add Echo Global Logistics (ECHO) on Thursday. This Zacks Rank #2 (buy) trucking/transportation name has beaten earnings estimates three times and matched once in the past four quarters. The editor also likes its valuation and thinks its chart looks “really good”. Read the complete commentary for more on this buy.    Marijuana Innovators: It hasn’t even been a week yet since Dave added GrowGeneration (GRWG) to the portfolio, but this company is already a top performer for the day. The stock jumped more than 16% on Thursday, which more than doubled the runner up. GRWG reported another quarter of record revenues yesterday. The editor added this operator of specialty retail hydroponic and organic gardening stores last Friday. So far, it’s up a little more than 5% in the portfolio. Technology Innovators: The Electronics – Manufacturing Machinery space is in the top 9% of the Zacks Industry Rank, so Brian thought this was a good place to make today’s addition. The editor picked up Axcelis Technologies (ACLS), which makes ion implantation equipment used in the fabrication of semiconductors. The company has beaten the Zacks Consensus Estimate in each of the past four quarters with an average surprise of 43% in that time. Rising earnings estimates have lifted the stock to Zacks Rank #1 (Strong Buy) status. Brian also likes its valuation, and loves that operating margins are on the rise. He thinks that ACLS could be a real winner moving forward as it gets better and better at executing its business. Read the full write-up for more. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Overcome GDP, Jobless Claims Disappointments

Stocks Overcome GDP, Jobless Claims Disappointments After two straight sessions of sluggish returns, the major indices fought past weak data on Thursday to finish in the green and with a chance for a positive weekly performance. Meanwhile, shares of Amazon (AMZN) are getting shellacked afterhours due to a revenue miss from the e-commerce giant. The Dow was up 0.44% (or about 153 points) today to 35,084.53, while the S&P advanced 0.42% to 4419.15. These indices both go into Friday’s session with slight gains for the week so far. The NASDAQ rose 0.11% (or more than 15 points) to 14,778.26, but is down about 0.4% over these four days. The day certainly had its challenges. GDP in the second quarter rose only 6.5%, which was far beneath expectations of more than 8%. The result was only barely better than the first quarter’s advance of 6.3%. In addition, jobless claims came to 400,000 last week, which was better than the previous week’s 424K but above expectations of around 385K. So how did stocks manage to rise amid such headwinds? Perhaps it’s some holdover from yesterday’s Fed statement that concluded the two-day policy meeting. The economy is improving (which means we’re getting closer to the inevitable tapering), but the Committee says we’ve still got some ground to recover before making any changes. “Powell’s ‘stay the course’ attitude really put the market at ease regarding tapering,” said Jeremy Mullin in Counterstrike. “We likely have smooth sailing with the Fed until the end of the year and we won’t have to worry about Jackson Hole.” Another positive factor at the moment is the solid earnings season, though it may be difficult to see if you’re judging by the market’s reaction. For example, shares of Facebook (FB) dropped 4% in its first session since reporting last night, as the social media giant beat by double digits on the top and bottom lines but warned of a sales slowdown moving forward. Unfortunately, it looks like the FAANGs saved the worst for last, as shares of retail giant Amazon (AMZN) are down approximately 7% afterhours. The company’s second-quarter earnings topped the Zacks Consensus Estimate by more than 23% as revenue again eclipsed $100 billion by rising 27% to $113.1 billion. However, revenue missed expectations and the third-quarter outlook was sluggish. It’ll be interesting to see how much AMZN’s report impacts Friday’s session, which is not only the final day of the week but also the last day of July. Today’s Portfolio Highlights: Options Trader: For the second day in a row, this portfolio pulled profits on a premium that doubled and then repositioned into a new option. The focus today is fast food company Yum Brands (YUM), which reported strong quarterly results before the open that included positive surprises of more than 22% for earnings and over 9% for sales. Specifically, Kevin sold to close the October 115.00 Call in YUM for a nearly 106% return and then bought to open a January 130.00 Call with the original dollars committed. As with Floor & Décor (FND) yesterday, the principal is now protected and the service can continue making money on YUM. Read the full write-up for more. Commodity Innovators: Shares of AGCO Corp. (AGCO) were on the rise today after this agriculture equipment manufacturer reported earnings this morning. It announced big beats on both the top and bottom lines, while also raising its guidance. With the stock trading just under its 50-day moving average, Jeremy decided to add AGCO on Thursday before the bulls make a push higher over the next month. He sees this new pick as a mid-term holding. Get more specifics in the complete commentary. Surprise Trader: Today’s addition of Kennametal (KMT) provides yet another example of Dave’s favorite type of divergence, as the stock’s price is on the decline while the earnings estimates are on the rise. This Zacks Rank #2 (Buy) is a manufacturer, marketer and distributor of high-speed metal cutting tools, tooling systems and wear-resistant parts. It has beaten the Zacks Consensus Estimate for five straight quarters now and has a positive Earnings ESP of 6.78% heading into the next print on Monday, August 2 after the bell. The editor added KMT on Thursday with a 12.5% allocation, while also getting out of Trustmark (TRMK) with a slight loss. Read the complete commentary for more. Counterstrike: It looks like Salesforce (CRM) is about to breakout, and Jeremy wants to get into this cloud computing solutions company before it does. This Zacks Rank #2 (Buy) just needs a catalyst, and then it could rally past $300. The editor is getting into the name today with an 11% allocation. He also picked up Sleep Number (SNBR), the Zacks Rank #1 (Strong Buy) mattress innovator that was really hot during the pandemic. It has since faded by 35% from its highs, but the stock just reported a strong quarter with a big beat and raised guidance. Nonetheless, shares sold off and opened up a classic counterstrike play. Jeremy thinks SNBR will break above its 200-day, so he added the stock with a 4% allocation. The portfolio also sold Gibraltar Industries (ROCK) for a slight loss. Read the full write-up for more. Home Run Investor: Chip stocks are likely to see a rebound in the second half, according to Brian. That point-of-view was backed up recently through a solid beat-and-raise quarterly report from MaxLinear (MXL), which provides radio-frequency analog and mixed signal semiconductor SoC solutions. The company reported a positive surprise of 6%, while revenues soared year over year and inched past the Zacks Consensus Estimate. Shares of MXL jumped 12.3% on Thursday, which was the best performer among all ZU names. The stock is now up 41.6% in the portfolio since being added back on February 10. Have a Good Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Incyte (INCY) Misses on Q3 Earnings & Revenues, Updates View

Incyte (INCY) third-quarter earnings and revenues miss estimates but rise year over year. Incyte Corporation INCY reported disappointing results for the third quarter o.....»»

Category: personnelSource: nytOct 30th, 2018

Academy Sports and Outdoors, Inc. (ASO) Reports Next Week: Wall Street Expects Earnings Growth

Academy Sports and Outdoors, Inc. (ASO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations. The market expects Academy Sports and Outdoors, Inc. (ASO) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2021. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on December 10. On the other hand, if they miss, the stock may move lower.While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.09 per share in its upcoming report, which represents a year-over-year change of +19.8%.Revenues are expected to be $1.49 billion, up 10.3% from the year-ago quarter.Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.81% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.Price, Consensus and EPS SurpriseEarnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).How Have the Numbers Shaped Up for Academy Sports and Outdoors, Inc.For Academy Sports and Outdoors, Inc.The Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -25.52%.On the other hand, the stock currently carries a Zacks Rank of #2.So, this combination makes it difficult to conclusively predict that Academy Sports and Outdoors, Inc. Will beat the consensus EPS estimate.Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.For the last reported quarter, it was expected that Academy Sports and Outdoors, Inc. Would post earnings of $1.54 per share when it actually produced earnings of $2.34, delivering a surprise of +51.95%.Over the last four quarters, the company has beaten consensus EPS estimates four times.Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.Academy Sports and Outdoors, Inc. Doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Academy Sports and Outdoors, Inc. (ASO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

PhenixFIN (PFX) to Report Q4 Results: Wall Street Expects Earnings Growth

PhenixFIN (PFX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations. The market expects PhenixFIN (PFX) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2021. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.Zacks Consensus EstimateThis investment firm is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +115.6%.Revenues are expected to be $2.92 million, down 33.9% from the year-ago quarter.Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.Price, Consensus and EPS SurpriseEarnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).How Have the Numbers Shaped Up for PhenixFIN?For PhenixFIN, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.On the other hand, the stock currently carries a Zacks Rank of #3.So, this combination makes it difficult to conclusively predict that PhenixFIN will beat the consensus EPS estimate.Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.For the last reported quarter, it was expected that PhenixFIN would post earnings of $0.03 per share when it actually produced earnings of $2.02, delivering a surprise of +6,633.33%.Over the last four quarters, the company has beaten consensus EPS estimates two times.Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.PhenixFIN doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PhenixFIN Corporation (PFX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

Quest Diagnostics (DGX) Expands Testing Suite With NGS Test

Quest Diagnostics (DGX) offers Targeted Lung Panel Test at 2,200 conveniently located patient service centers across the United States. Quest Diagnostics Incorporated DGX recently announced that the company is now offering the liquid biopsy-based Target Selector NGS Lung Panel test developed by Biocept BIOC. The addition of this blood-based panel to Quest Diagnostics' advanced diagnostic testing suite allows the company to offer actionable insights in a more accessible and less invasive manner, supplementing its services in tissue biopsy.For investors’ note, Biocept offers molecular diagnostic assays that provide physicians with clinically actionable information to aid in diagnosing, treating, and monitoring patients with cancer.The recent development is likely to expand Quest Diagnostics’ Diagnostics Solutions arm.More on the NGS Lung Panel TestThe lab-developed liquid biopsy Target Selector, NGS Lung Panel test, supports genomic profiling in patients with advanced non-small cell lung cancer (NSCLC), thereby helping physicians spot potential targeted therapies and monitor the effectiveness of treatment.Biocept's multi-gene, tumor-specific NGS Lung Panel enables physicians and researchers to use a simple blood sample to access actionable biomarkers associated with specific solid tumor types. The Target Selector NGS Lung Panel enables better patient outcomes by offering physicians direction on therapeutic options for those battling NSCLC.Image Source: Zacks Investment ResearchIndividuals can now provide a blood specimen for testing at Quest Diagnostics’ 2,200 conveniently located patient service centers across the United States. Collected specimens will be sent to Biocept's CLIA-certified, CAP-accredited laboratory in San Diego for testing.Significance of the TestPer Quest Diagnostics’ management, by providing Biocept's Target Selector NGS Lung Panel test under Quest Diagnostics’ advanced diagnostics portfolio, the company will allow more physicians and patients to receive insights necessary to provide the appropriate treatment for NSCLC.The Target Selector NGS Lung Panel offers vital information to support creating more personalized treatment plans for patients with NSCLC and help oncologists provide the best care possible. The launch of a new lung cancer test enables the companies to expand in oncology diagnostics. It allows serving more patients nationwide to improve care for lung cancer patients.Industry ProspectsPer a report by Fortune Business Insights, the global lung cancer screening market is projected to rise from $2.80 billion in 2021 to $4.85 billion in 2028, at a CAGR of 8.1%.The rise in lung cancer cases due to the expanding smoking population, technological advancement in screening, and increasing government support for the early detection of cases are factors driving the market.Recent DevelopmentsIn the third-quarter earnings update, Quest Diagnostics noted that despite COVID-19 resurgence, the base business registered sequential growth. The company noted that base business volumes rebounded in September following a modest softening in August, partially caused by the rise of the Delta variant and the timing of summer vacations. Base Diagnostic Information Services revenues grew approximately 6% in the third quarter (up nearly 2% excluding acquisitions). Compared to the third-quarter 2019 baseline, total base testing volumes increased 9%. Excluding acquisitions, total base testing volumes grew approximately 4% and benefited from the company’s new professional lab services (PLS) contracts that have ramped over the last year.Moreover, Quest Diagnostics reported approximately 7.6 million molecular tests and nearly 700,000 serology tests in the third quarter.Price PerformanceShares of the company have gained 25.1% in a year against the industry’s fall of 45.3%.Zacks Rank and Key PicksQuest Diagnostics currently carries a Zacks Rank #3 (Hold).A couple of better-ranked stocks from the broader medical space are Chemed Corporation CHE and Laboratory Corporation of America Holdings, or LabCorp LH.Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings per share (EPS) estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average. Chemed currently carries a Zacks Rank #2 (Buy).Chemed has outperformed its industry over the past year. CHE has gained 3.7% against a 35.6% industry decline.LabCorp reported third-quarter 2021 adjusted EPS of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%. LabCorp currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report Biocept, Inc. (BIOC): Free Stock Analysis Report Chemed Corporation (CHE): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 3rd, 2021

GoPro (GPRO) Expects to Record Solid Sales in Holiday Season

Much of GoPro's (GPRO) renewed optimism regarding healthy holiday revenues is driven by the solid traction in GoPro Plus subscription service and uptrend in the premium category sales. GoPro, Inc. GPRO expects to ring in the upcoming holiday season with solid sales undeterred by the coronavirus-induced adversities and chip shortages due to supply-chain disruptions. Backed by a direct-to-consumer and subscription-centric strategy, the company expects to generate healthy revenues during this period. This growth momentum is likely to continue in 2022 as well.GoPro revealed that it has collaborated with its suppliers to ensure an uninterrupted supply of essential raw materials. This, in turn, is likely to safeguard a steady flow of replenished items in the retail stores and online shopping platforms. The company has witnessed an uptrend in the premium category sales, with approximately 98% of about 800,000 cameras sold in the third quarter being above the $300 price tag. The new Hero10 Black camera is also selling incredibly well despite a high price of $499.Much of the renewed optimism regarding healthy holiday revenues is driven by the solid traction in GoPro Plus subscription service that offers unlimited original quality cloud storage of GoPro footage, no-questions-asked camera replacement and discounts on various mounts and accessories.In addition, the company is developing various types of software solutions and hardware to curtail the complexity of managing, editing and sharing content on different media platforms. GoPro’s app Quik enables users to instantly edit their GoPro footage on their phones and create short videos for networking sites. The company also launched QuikStories, a new GoPro App feature that automatically copies footage to create a ready-to-share video. Additionally, the company is marketing the combined GoPro and smartphone experience to its existing community, which is focused on out-of-home, paid search and rich media, OTT (over-the-top) videos designed to funnel conversions. These initiatives will likely go a long way toward opening GoPro to a broader audience and expanding its user base.Moreover, GoPro intends to transform itself from the ‘camera maker’ to ‘content maker’ and has taken proactive steps to solidify its position in the burgeoning virtual reality (VR) market. Its products seem well-positioned to dominate the trending VR market. GoPro has also been focusing on offering its immersive imagery video experience to millions of people worldwide through its GoPro Channel. It has been diligently working toward spreading its popularity across the spectrum through concentrated and successful marketing efforts. At the same, it is making investments in merchandising and retail advertising to drive a more significant brand presence while continuing to innovate. It intends to expand its footprint in emerging markets like India and remains focused on scaling its CRM (customer relationship management) efforts to augment its customer base.Over the past year, the stock has gained 26.4% compared with the industry’s rise of 21%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold). Image Source: Zacks Investment ResearchA better-ranked stock in the industry is Sonos, Inc. SONO, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Sono has a long-term earnings growth expectation of 17%. It delivered an earnings surprise of 177.9%, on average, in the trailing four quarters.Clearfield, Inc. CLFD sports a Zacks Rank #1. It delivered an earnings surprise of 50.8%, on average, in the trailing four quarters.Earnings estimates for the current year for the stock have moved up 68.2% since January 2021. Over the past year, Clearfield has gained a solid 168.1%.Sierra Wireless, Inc. SWIR carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 34.2%, on average, in the trailing four quarters.Over the past year, Sierra Wireless has gained 9.4%. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sierra Wireless, Inc. (SWIR): Free Stock Analysis Report GoPro, Inc. (GPRO): Free Stock Analysis Report Sonos, Inc. (SONO): Free Stock Analysis Report Clearfield, Inc. (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

lululemon (LULU) to Report Q3 Earnings: Is a Beat in Store?

lululemon's (LULU) Q3 results are expected to reflect gains from store traffic revival, continued digital momentum, improved store productivity, and robust gross margin. lululemon athletica inc. LULU is likely to witness top and bottom-line growth when it reports third-quarter fiscal 2021 results on Dec 9, after market close. The Zacks Consensus Estimate for fiscal third-quarter sales is pegged at $1.43 billion, indicating a 28.1% increase from the prior-year quarter's reported figure.The Zacks Consensus Estimate for the company's fiscal third-quarter earnings stands at $1.39, suggesting a 19.8% rise from $1.16 reported in the year-ago quarter. Earnings estimates have moved up by a penny in the past 30 days.The company delivered an earnings surprise of 25.2% in the last reported quarter. LULU's bottom line beat estimates by 36.4%, on average, in the trailing four quarters.lululemon athletica inc. Price and EPS Surprise  lululemon athletica inc. price-eps-surprise | lululemon athletica inc. QuoteKey Factors to Notelululemon's quarterly performances have been benefiting from a positive response for its products, improved store productivity and continued digital momentum. Strength across all categories, channels and geographies has been aiding results. A rebound in brick-and-mortar sales, driven by an increase in store traffic as consumers return to stores for shopping, as well as continued expansion in the e-commerce channel have been the drivers. The factors are expected to have aided the company's top and bottom lines in the to-be-reported quarter.On the last reported quarter's earnings call, management noted that its strong business momentum continued in the second half of fiscal 2021. For third-quarter fiscal 2021, the company predicted net sales of $1.4-$1.43 billion, indicating two-year CAGR growth of 24-25%. Adjusted earnings are anticipated to be $1.33-$1.38 per share, whereas LULU reported $1.16 in the prior-year quarter and 96 cents in third-quarter fiscal 2019.Continued investments to enhance the in-store experience are likely to have bolstered sales and earnings in the fiscal third quarter. lululemon is leveraging its stores to facilitate omni-channel capabilities, including the buy online pickup in store and ship-from-store. It has implemented several strategies to improve the guest experience and reduce wait time, including virtual waitlist, mobile POS and appointment shopping. The functionalities have enabled reducing the time of waiting in line to enter stores as well as allowing customers to complete some transactions like returns, exchanges and purchase of gift cards without entering stores.Management anticipates gross margin expansion of 50-100 bps for the fiscal third quarter from that reported in third-quarter fiscal 2019. Gross margin growth from the fiscal 2019 comparable period can be attributed to higher e-commerce penetration, and occupancy and depreciation cost leverage.The company's fiscal third-quarter gross margin is likely to have reflected continued gains from leverage in occupancy, product team costs and depreciation. On the last reported quarter's earnings call, management expected third-quarter fiscal 2021 gross margin to expand 50-100 bps from that reported in third-quarter fiscal 2019. Gross margin growth from the fiscal 2019 comparable period can be attributed to higher e-commerce penetration, and occupancy and depreciation cost leverage.However, industry-wide supply-chain challenges, stemming from the pandemic-led factory closures, congestion at ports and reduced airfreight capacity, remain concerning. On the last reported quarter's earnings call, management expected supply-chain challenges, driven by the pandemic-led factory closures, congestion at ports and reduced airfreight capacity, to impact its business in the second half of fiscal 2021. The company's gross margin guidance for third-quarter fiscal 2021 includes a 200-bps impact of higher airfreight costs, owing to port congestion and capacity constraints.lululemon is also facing SG&A deleverage on a two-year basis, which is likely to have continued in the fiscal third quarter. The company expected SG&A expenses for the third quarter of fiscal 2021 to deleverage 300-350 bps from the pre-pandemic levels. The deleverage mainly relates to higher depreciation due to accelerated investments to support the e-commerce business in 2020 and 2021, consolidation of MIRROR's results this year, and increased investments in brand-building for its growth initiative.What the Zacks Model UnveilsOur proven model conclusively predicts an earnings beat for lululemon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.lululemon has a Zacks Rank #2 and an Earnings ESP of +1.44%.Other Stocks Likely to Beat Earnings EstimatesHere are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.Costco Wholesale COST currently has an Earnings ESP of +0.88% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for COST's quarterly revenues is pegged at $49.6 billion, which suggests growth of 14.8% from the prior-year quarter's reported figure.You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Costco's quarterly earnings moved up 2% in the last 30 days to $2.59 per share, suggesting 13.1% growth from the year-ago reported number. COST has delivered an earnings beat of 7.7%, on average, in the trailing four quarters.Vail Resorts MTN currently has an Earnings ESP of +5.46% and a Zacks Rank #3. MTN is anticipated to register top-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for the quarterly revenues is pegged at $195.1 million, indicating an improvement of 48.1% from the figure reported in the prior-year quarter.The Zacks Consensus Estimate for Vail Resorts' bottom line has improved significantly in the past 30 days to a loss of $3.66 per share. However, the consensus estimate suggests wider loss per share compared with $3.63 reported in the year-ago quarter. MTN has delivered an earnings beat of 17.3%, on average, in the trailing four quarters.Dave & Buster's Entertainment PLAY currently has an Earnings ESP of +13.04% and a Zacks Rank #3. PLAY is likely to register top and bottom-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $320.5 million, which suggests growth of 193.9% from the figure reported in the prior-year quarter.The Zacks Consensus Estimate for Dave & Buster's quarterly earnings has moved up 20% in the past seven days to 12 cents per share, suggesting substantial growth from a loss of $1.01 reported in the year-ago quarter. PLAY has delivered an earnings beat of 201.8%, on average, in the trailing four quarters. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Costco Wholesale Corporation (COST): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Vail Resorts, Inc. (MTN): Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

Dave & Buster"s (PLAY) to Post Q3 Earnings: What"s in Store?

Dave & Buster's (PLAY) fiscal third-quarter performance is likely to have benefited from technological upgrades, entertainment offerings and menu innovations. Dave & Buster’s Entertainment, Inc. PLAY is scheduled to report third-quarter fiscal 2021 results on Dec 7, after market close. In the last reported quarter, the company delivered an earnings surprise of 87.7%.Q3 ExpectationsThe Zacks Consensus Estimate for the fiscal third-quarter bottom line is pegged at 12 cents per share, indicating an improvement of 111.9% from a loss of $1.01 reported in the year-ago quarter.For revenues, the consensus mark is pegged at $320.5 million. The metric suggests an increase of 193.9% from the year-ago quarter’s figure.Dave & Buster's Entertainment, Inc. Price and EPS Surprise  Dave & Buster's Entertainment, Inc. price-eps-surprise | Dave & Buster's Entertainment, Inc. Quote Factors at PlayDave & Buster's fiscal third-quarter performance is likely to have benefited from technological upgrades, entertainment offerings and menu innovations. A rise in mobile web adoption coupled with the rollout of new technology and upgradation in WiFi capability and equipments is likely to have boosted the fiscal third-quarter top line. This along with reductions in pre-opening expenses and operating costs, is likely to have aided margins in the to-be-reported quarter.Increased investments, in terms of entertainment offerings, are expected to have benefitted the company in the fiscal third quarter. In the previous quarter, the company onboarded new creative and media buying agencies and revamped its brand message and media strategy. The initiative coupled with the rollout of new menu and games is likely to have extended its reach and increased visit frequency in the fiscal third quarter.Robust performance of food and beverage, and amusement and other is likely to get reflected in the company’s quarterly numbers. The Zacks Consensus Estimate for food and beverage revenues is likely to witness an improvement of 186.8% year over year to $110 million. Amusement and other revenues are likely to record a surge of 193% year over year to $208 million.What the Zacks Model UnveilsOur proven model predicts an earnings beat for Dave & Buster’s this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates.Earnings ESP: Dave & Buster’s has an Earnings ESP of +13.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Peer ReleasesPapa John’s International, Inc. PZZA reported robust third-quarter fiscal 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. During the fiscal third quarter, the company reported adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents by 20.3%. The bottom line surged 137.1% from 35 cents in the prior-year quarter. Quarterly revenues of $512.8 million beat the consensus mark of $501 million by 2.3%. The top line increased 8.4% on a year-over-year basis.Papa John’s benefited from solid comparable sales in North America, driven by strong customer retention and innovation strategies. The company witnessed a rise in company-owned restaurant revenues, franchise royalties and commissary sales. International revenues benefited from higher franchise royalties and unit growth. This Zacks Rank #2 company’s shares have gained 47.4% so far this year compared with the industry’s 4.3% growthThe Cheesecake Factory Incorporated CAKE reported drab third-quarter fiscal 2021 results, with earnings and revenues missing the Zacks Consensus Estimate. Adjusted earnings per share (EPS) was 65 cents, lagging the Zacks Consensus Estimate of 70 cents. In the prior-year quarter, the company had reported an adjusted loss of 33 cents per share. This was primarily due to a rise in labor and other operating expenses.Cheesecake Factory gained from a solid off-premise sales growth. Quarter-to-date (through Nov 2), the off-premise model contributed 28% to total sales. Shares of the company have gained 5.4% so far this year. Cheesecake Factory carries a Zacks Rank #3.YUM! Brands, Inc. YUM reported strong third-quarter 2021 results, with earnings and revenues topping the Zacks Consensus Estimate. Both metrics improved year over year. During third-quarter 2021, the company’s adjusted earnings of $1.22 beat the Zacks Consensus Estimate of $1.06. In the prior-year quarter, the company had reported adjusted earnings of $1.01. Quarterly revenues of $1,606 million outpaced the consensus mark of $1,584 million. The top line rose 11% year over year.YUM! Brands’ results in the quarter benefited from strong digital sales, robust unit development and a diverse global business model. The company strengthened its digital capabilities with the acquisition of Dragontail, which provides AI-based integrated kitchen order management and delivery technologies. The initiative paves the path for strengthening store operations and enhancing customer experience. During the third quarter, YUM reported digital sales of more than $5 billion. Shares of this Zacks Rank #3 company have gained 16.6% so far this year. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yum Brands, Inc. (YUM): Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE): Free Stock Analysis Report Papa John's International, Inc. (PZZA): Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 3rd, 2021

3 Reasons to Add Accuray (ARAY) Stock to Your Portfolio

Investors continue to be optimistic about Accuray (ARAY) owing to its slew of software upgrades. Accuray Incorporated ARAY has been gaining on the back of its suite of software upgrades. A solid first-quarter fiscal 2022 performance, along with its global reach, is expected to contribute further. However, overdependence on technologies and reimbursement uncertainties persist.Over the past year, this Zacks Rank #2 (Buy) stock has gained 15.6% compared with 3.1% growth of the industry and 22.6% rise of the S&P 500 composite.The renowned radiation oncology company has a market capitalization of $452.8 million. Accuray projects 285.7% growth for fiscal 2023, in which it expects to maintain its strong performance. The company surpassed estimates in two of the trailing four quarters, missed the same one and broke even in the other one, the average earnings surprise being 141.67%.Image Source: Zacks Investment ResearchLet’s delve deeper.Strong Q1 Results: Accuray’s robust first-quarter fiscal 2022 revenues buoy optimism. The company registered upticks in both its overall top line and its revenue sources during the period, which is encouraging. Receipt of the FDA’s 510(k) clearance for the VOLO Ultra enhancement to the Accuray Precision treatment planning system for the Radixact System, followed by its full commercial launch, is impressive. Strong demand for the ClearRT Helical kVCT Imaging for the Radixact System and new integration with the RayStation treatment planning system for the CyberKnife M6 and S7 Systems raise our optimism on the stock.Suite of Software Upgrades: We are optimistic about Accuray’s series of software upgradations that has been a growth driver for the company. In recent times, Accuray announced the VOLO Optimizer software upgrade for CyberKnife, which reduces treatment time by up to 50%, thus allowing CyberKnife treatments to be performed in 15 to 30 minutes. The company, in October, showcased its new VOLO Ultra for the Radixact System.Global Reach: Accuray has been fortifying its foothold globally, thereby raising our optimism. The company, during its fiscal 2022 first-quarter earnings call in November, confirmed that its gross order volume from its China business for the fiscal first quarter represented a huge growth year over year, whereas revenues generated represented a stupendous year-over-year growth. Additionally, Accuray confirmed making continued impressive progress on its Tianjin-produced Type B product.The company also performed impressively in the Americas, EMEA and the APAC regions (especially Japan).DownsidesOverdependence on Technologies: Achieving consumer and third-party payor acceptance of the CyberKnife and TomoTherapy platforms as preferred methods of tumor treatment is crucial to Accuray’s continued success. Physicians will not begin to use or increase the use of the CyberKnife or TomoTherapy platforms unless they determine, based on experience, clinical data and other factors, that the two platforms are safe and effective alternatives to traditional treatment methods.Reimbursement Uncertainties: Accuray’s customers rely significantly on reimbursement from public and private third-party payors for the CyberKnife and TomoTherapy platform procedures. The company’s ability to commercialize its products successfully and increase market acceptance of the same will significantly depend on the extent to which public and private third-party payors provide coverage and reimbursement for procedures performed with Accuray’s products and the extent to which patients who are treated by its products continue to be covered by health insurance. Third-party payors may establish or change the reimbursement for medical products and services that could significantly influence the purchase of the same.Estimate TrendAccuray is witnessing a positive estimate revision trend for fiscal 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 250% north to 7 cents.The Zacks Consensus Estimate for the company’s second-quarter fiscal 2022 revenues is pegged at $104.9 million, suggesting a 7.6% rise from the year-ago quarter’s reported number.Other Key PicksA few other top-ranked stocks in the broader medical space are Laboratory Corporation of America Holdings LH or LabCorp, Thermo Fisher Scientific Inc. TMO and AMN Healthcare Services AMN.LabCorp, carrying a Zacks Rank #2, reported third-quarter 2021 adjusted EPS of $6.82, which beat the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the consensus mark by 13.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.LabCorp has an estimated long-term growth rate of 10.6%. The company surpassed estimates in the trailing four quarters, the average surprise being 25.73%.Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #2.Thermo Fisher has an estimated long-term growth rate of 14%. The company surpassed estimates in the trailing four quarters, the average surprise being 9.02%.AMN Healthcare reported third-quarter 2021 adjusted EPS of $1.73, which surpassed the Zacks Consensus Estimate by 29.1%. Third-quarter revenues of $877.8 million outpaced the Zacks Consensus Estimate by 12.3%. It currently sports a Zacks Rank #1.AMN Healthcare has an estimated long-term growth rate of 16.2%. The company surpassed estimates in the trailing four quarters, the average surprise being 19.51%. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report Accuray Incorporated (ARAY): Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO): 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: zacksDec 3rd, 2021

Whiting Petroleum Corporation (WLL) Down 2% Since Last Earnings Report: Can It Rebound?

Whiting Petroleum Corporation (WLL) 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 Whiting Petroleum Corporation (WLL). Shares have lost about 2% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Whiting Petroleum Corporation 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 drivers. Whiting Petroleum Q3 Earnings and Revenues Beat EstimatesWhiting Petroleum reported third-quarter 2021 adjusted net income per share of $3.57, beating the Zacks Consensus Estimate of $2.93 and the sequential quarter’s earnings of $3.01, attributable to a significant increase in production and oil price realizations.Total operating revenues came in at $401.01 million, ahead of the Zacks Consensus Estimate of $311 million. Moreover, the top line improved 13.9% from the quarter-ago level of $352 million.On an encouraging note, the upstream energy operator’s free cash flow of $127.7 million was higher than the second-quarter 2021 figure of $111.3 million.Production & PricesWhiting Petroleum’s total oil and gas production reported a sequential increase of 0.5% to 8,472 thousand barrels of oil equivalent/ MBOE (comprising 79% liquids). Oil volumes at 4,763 thousand barrels (MBbl) slid 2% from the level achieved in second-quarter 2021 while natural gas output inched up 0.74% to reach 10,745 thousand cubic feet. Daily production averaged 92.1 MBOE, surpassing the Zacks Consensus Estimate of 90 MBOE.The average realized crude oil price during the third quarter was $66.54 per barrel, reflecting a 4.9% rise from the quarter-ago realization of $63.46.Balance Sheet & Capital ExpenditureAs of Sep 30, Whiting Petroleum had $12.9 million in cash, cash equivalents and restricted cash. The oil explorer’s long-term debt of $72 million represented a debt-to-capitalization of 5%. In the reported quarter, WLL spent $67 million on its capital program.2021 GuidanceWhiting Petroleum aims to support its operations entirely from operating cash flow in the future. Based on this, WLL expects to be in a positive net cash position by the end of 2021 with no outstanding debt under its credit facility.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 22.06% due to these changes.VGM ScoresCurrently, Whiting Petroleum Corporation has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Whiting Petroleum Corporation has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Whiting Petroleum Corporation (WLL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

ITT (ITT) Down 4.1% Since Last Earnings Report: Can It Rebound?

ITT (ITT) 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 ITT (ITT). Shares have lost about 4.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is ITT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. ITT Beats Q3 Earnings Estimates, Increases '21 ProjectionsITT reported better-than-expected results for third-quarter 2021. Its earnings surpassed estimates by 6.45% and sales beat the same by 2.65%.The company’s adjusted earnings in the reported quarter were 99 cents per share, surpassing the consensus estimate of 93 cents. Also, the bottom line improved 20.7% from the year-ago figure of 82 cents on improved sales and margin generation. Share buybacks and low taxes aided the results (by 3 cents per share).However, inflation in raw material and supply-chain woes had adverse impacts.Revenue DetailsIn the quarter under review, ITT’s net sales were $689.6 million, reflecting year-over-year growth of 16.6%. The results benefitted 15.6% from growth in organic sales. Segmental results flourished in the quarter.Also, the company’s revenues surpassed the Zacks Consensus Estimate of $672 million.Organic sales in the quarter increased 27.6% year over year, with organic orders representing growth of 26.8%.It currently reports under three business segments — Industrial Process, Motion Technologies, and Connect and Control Technologies. The segmental information is briefly discussed below:Revenues from Industrial Process totaled $210.7 million, rising 8.6% year over year. The results gained 8.1% from growth in organic sales. Business related to valves, short cycle parts, and service flourished in the quarter. Orders increased 25.5% year over year.Revenues from Motion Technologies totaled $332.3 million, reflecting year-over-year growth of 22.3%. The results gained from a 20.3% contribution from organic sales growth on the back of a rise in the automotive aftermarket business, the Friction aftermarket and sealing, and other tailwinds. Orders grew 23.6% from the year-ago quarter.Revenues from Connect and Control Technologies totaled $147.1 million, increasing 16.8% year over year and up 17% organically. Results benefitted from strength in the industrial market, partially offset by the softness in the commercial aerospace market. Orders expanded 40.8% year over year.Margin ProfileIn the quarter under review, ITT’s cost of revenues increased 16.7% year over year to $467.6 million. It represented 67.8% of the quarter’s sales compared with 67.8% in the year-ago quarter. Gross profit increased 16.5% year over year to $222 million and as a percentage of sales, it was 32.2%.General and administrative expenses expanded 18.7% year over year to $55.9 million, while sales and marketing expenses increased 12% to $37.4 million. Research and development expenses grew 14.2% to $22.5 million.Adjusted segmental operating income in the quarter increased 21.2% year over year to $115.7 million. Margin expanded 60 basis points (bps) to 16.8%. Results benefitted from sales growth, and gains from productivity and commercial actions. However, supply-chain woes, inflation in raw material costs, woes related to growth investments, and other headwinds played spoilsport.Balance Sheet and Cash FlowExiting the third quarter, ITT had cash and cash equivalents of $585.8 million, up 1.2% from $578.8 million in the previous quarter. Its total non-current liabilities were down 2.8% sequentially to $410 million.In the first three quarters of 2021, ITT used $127.9 million for its operating activities against net cash generation of $318.1 million in the year-ago period. Capital expenditure was $52.6 million, up from $47.6 million in the year-ago quarter. Free cash outflow was $180.5 million against an inflow of $270.5 million in the year-ago period.In the first nine months of 2021, the company paid out dividends of $57 million, up from $29.7 million in the year-ago period. Share repurchases were $111.7 million, up from shares worth $83.9 bought back in the year-ago period.OutlookSolid results for the third quarter motivated ITT to increase its projections for 2021. Supply-chain woes are prevalent headwinds.For 2021, the company anticipates adjusted earnings of $4.01-$4.06 per share, up from $3.90-$4.05 per share mentioned earlier. The revised projection suggests year-over-year growth of 25-27%.Revenues are expected to increase 11-13% year over year and 8-10% organically. Adjusted segmental operating margin is predicted to increase 170-220 bps year over year to 16.9-17.4%.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates review.VGM ScoresAt this time, ITT has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ITT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ITT Inc. (ITT): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 3rd, 2021

Why Is Agios Pharmaceuticals (AGIO) Down 24.6% Since Last Earnings Report?

Agios Pharmaceuticals (AGIO) 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 Agios Pharmaceuticals (AGIO). Shares have lost about 24.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Agios Pharmaceuticals 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 drivers. Agios Reports Narrower-Than-Expected Q3 LossAgios reported a loss of $1.48 per share from continued operations for the third quarter, narrower than the Zacks Consensus Estimate of a loss of $1.61 but wider than the year-ago quarter’s loss of $1.15.Following the sale of the oncology portfolio to Servier in March, the company recorded zero revenues for the third quarter. The Zacks Consensus Estimate for the metric was $2.3 million. In the year-ago quarter, the company recorded $34.7 million in total revenues.Quarter in DetailResearch & development expenses increased 23.2% year over year to $64 million due to a rise in cost related to the planned initiation of late-stage studies of mitapivat for SCD and thalassemia.Selling, general and administrative expenses were down 4.2% year over year to $27.2 million.At the end of September 2021, cash, cash equivalents and marketable securities were $1.4 billion compared with $1.7 billion at June 2021-end.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 7.12% due to these changes.VGM ScoresAt this time, Agios Pharmaceuticals has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Agios Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Agios Pharmaceuticals, Inc. (AGIO): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 3rd, 2021

Why Is Nu Skin (NUS) Up 3.7% Since Last Earnings Report?

Nu Skin (NUS) 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 Nu Skin Enterprises (NUS). Shares have added about 3.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Nu Skin due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Nu Skin Q3 Earnings Beat Estimates, Revenues DownNu Skin posted third-quarter 2021 results, wherein quarterly earnings came in at 97 cents a share, which beat the Zacks Consensus Estimate of 86 cents. However, the metric declined 10% from $1.08 per share reported in the year-ago quarter.Revenues of $641.2 million fell 9% year over year on a reported basis. Revenues included a positive impact of 2% from foreign-currency fluctuations. On a constant-currency (cc) basis, revenues declined 11%. Management highlighted that revenues were lower than anticipated owing to the disruptions caused by the spread of the COVID delta variant. This led to unexpected government restrictions hindering selling as well as promotional activities across various markets, especially Mainland China and Southeast Asia. That said, the company was impressed by continued growth in the United States on the back of the Beauty Focus Collagen+ launch. Also, double-digit growth in Korea driven by product promotions and sales leader initiatives were a breather. The top line surpassed the Zacks Consensus Estimate of $639.2 million.Sales leaders were down 15% year over year to 58,565. Nu Skin’s customer base dropped 9% to 1,395,271.Gross profit of $482.2 million decreased from almost $520 million reported in the year-ago quarter. Gross margin expanded year over year from 73.9% to 75.2%. Nu Skin business’ gross margin expanded to 78.6% from 76.3% driven by favorable product mix, product cost declines as well as supply chain efficiencies.Selling expenses declined from $280.7 million in the prior-year quarter to $255.7 million. As a percentage of sales, the metric came in at 39.9% and remained flat year over year. Nu Skin business’ selling expenses were 42.7% of sales, up from 42.4% in the year-ago quarter.General and administrative expenses of $161.1 million decreased from $165.1 million in the year-ago quarter. The company’s effective expenses management contributed to the upside. As a percentage of sales, general and administrative expenses expanded from 23.5% to 25.1%.Operating income of $65.4 million declined from $74.2 million in the year-ago quarter. Further, operating margin was 10.2%, down from 10.6% reported in the year-ago quarter.Segmental ResultsSegment-wise, revenues (at cc) declined 26% in Mainland China, 2% in Americas, 23% in Southeast Asia/Pacific, 11% in EMEA, 5% in Japan and 8% in Hong Kong/Taiwan. The same increased 8% in South Korea at cc. Total Nu Skin revenues of $598.6 million fell 11% at cc from the prior-year quarter’s figure of $662.4 million.The company benefited from impressive revenue growth in the Grow Tech business at cc. Revenues in the Manufacturing business increased 2% at cc.Other Financial DetailsNu Skin ended the quarter with cash and cash equivalents of $282.4 million, long-term debt of $278.6 million and total stockholders' equity of $936.5 million.During the reported quarter, the company paid out dividends of $19 million and repurchased $10 million worth of shares. With this, it currently has $255.4 million remaining under the current share repurchase authorization.In a separate press release, Nu Skin announced a dividend of 38 cents per share payable on Dec 8, 2021, to shareholders of record as of Nov 26.GuidanceBased on the third-quarter results, management adjusted its 2021 guidance downward. The company now anticipates 2021 revenues in the range of $2.67-$2.70 billion, which calls for an increase of 3-5% year over year. The metric was previously expected in the range of $2.81-$2.87 billion, suggesting an increase of 9-11% year over year. The company envisions a favorable currency impact of 2-3% on 2021 revenues. Management now expects 2021 earnings per share (EPS) in the range of $3.93-$4.03, indicating an increase of 8-11%. Earlier, the company had projected EPS within $4.30-$4.50, suggesting a rise of 18-14%. For the fourth quarter of 2021, the company projects revenues of $645-$675 million that includes unfavorable currency impacts of nearly 1%. The projection suggests a decline of 10-14% from the year-ago quarter’s level. Quarterly EPS is anticipated between 90 cents and $1.00, indicating 29-36% slump from the year-ago quarter’s levels.How Have Estimates Been Moving Since Then?It turns out, estimates review flatlined during the past month. The consensus estimate has shifted 12.43% due to these changes.VGM ScoresCurrently, Nu Skin has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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.OutlookNu Skin has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 3rd, 2021