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Earnings Scheduled For May 26, 2021

  Companies Reporting Before The Bell • Boqii Holding (NYSE:BQ) is expected to report quarterly loss at $0.14 per share on revenue of $35.05 million. read more.....»»

Category: blogSource: benzingaMay 26th, 2021

4 Stocks to Watch as the Gaming Space Continues to Boom

The gaming space has been maintaining momentum and investors should keep a close watch on Microsoft (MSFT), JAKKS Pacific (JAKK), Electronic Arts (EA) & Activision Blizzard (ATVI). The gaming space has stood strong through the pandemic, experiencing exponential growth as lockdowns and social-distancing measures limited people’s entertainment options. The global gaming market reached $162.32 billion last year. Major trends like the boom in women gamers, competitive gaming, cloud gaming, a shift in game payment/subscription models and cutting-edge technology (augmented reality & virtual reality) are altering the gaming landscape completely.Even over the past few months as lockdowns eased and people somewhat returned to normal life, the gaming space maintained its solid momentum.Momentum in Video Game Sales StrongPer the NPD Group’s report, consumers in the United States spent $14 billion in the second quarter of 2021, with an increase in sales across PC, cloud and non-console VR content, mobile games and subscription. Gaming content purchases and subscriptions reached $12.57 billion in the quarter.Though sales of gaming consoles, hardware, accessories have slowed down as compared to the peak of the pandemic, the holiday season holds tremendous potential. Several companies have already lined up tiles and series that will be available on newer versions of Xbox, PlayStation and Switches. For October, the Battlefield 2042, Back 4 Blood, Far Cry 6 and Marvel's Guardians of the Galaxy game releases caught the attention of gamers. Some gamers have already signed up/pre-purchased the Jurassic World Evolution 2, scheduled for release in November on PC, PS5, Xbox Series X|S, PS4, and Xbox One.Additionally, the NPD Group reported that in August, gamers in the United States spent $4.37 billion, highlighting 7% year-over-year growth on demand for new hardware and a strong month for software.Cloud Transforming the Gaming SpaceWhile gaming consoles and Switch continue to remain gamers’ favorite gadgets, cloud is transforming the gaming space completely. Undeniably, the cloud is the future of gaming. This server-based gaming trend allows gamers to access the latest games from any device without having to spend as much money on hardware. The cloud platforms allow the same games to be played on phones, tablets and PCs. The only drawback here is the speed of the Internet connection, which again can be solved with the deployment of 5G.Google’s cloud gaming platform, Stadia, allows users to instantly play video games on compatible devices. Gamers can choose to buy games directly or subscribe to Stadia Pro for $9.99 per month for a library of games where new ones are added regularly. Similarly, Nvidia offers cloud gaming service through GeForce Now on platforms like Microsoft Windows, ChromeOS, Android and iOS, which are Nvidia Shield devices. Xbox maker Microsoft Corporation MSFT has also kept up with the trend and offers Xbox Game Pass.Per a Research and Markets forecast, the cloud gaming market is estimated to be valued at $2.3 billion in 2020 and is projected to reach $4.98 billion by 2024, at a CAGR of 16.7%.4 Stocks to Keep an Eye onGaming has transitioned from a hobby to one’s favorite source of entertainment during the pandemic. Meanwhile, the rise in digitalization, increasing global online gaming competitions, surge in mobile gaming, and the introduction of cloud gaming will help the space grow further in 2021 and beyond. Hence, we have shortlisted four stocks that investors might want to keep a close watch on.JAKKS Pacific, Inc. JAKK offers an array of video games with hits like Mortal Kombat and SpongeBob SquarePants: Snowball Showdown. The company has an expected earnings growth rate for the current year of more than 100% against the Zacks Toys - Games - Hobbies industry’s projected earnings decline of 4.4%.The Zacks Consensus Estimate for the company’s current-year earnings has been revised 80% upward over the past 60 days. JAKKS Pacific currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Microsoft, a Zacks Rank #2 company, offers cloud gaming with Xbox Game Pass Ultimate. The company’s expected earnings growth rate for the current year is 8.4% compared with the Zacks Computer - Software industry’s projected earnings growth of 1%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 3.9% upward over the past 60 days.Electronic Arts Inc. EA offers an array of video games that can be played on PlayStation, Xbox, tablets, smartphones and PC. Madden NFL 22, a new release by the company, topped the charts while Assassin’s Creed: Valhalla climbed to the ninth position last month from 20.The company has an expected earnings growth rate for the current year of 15.8% against the Zacks Toys - Games - Hobbies industry’s projected earnings decline of 4.4%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 80% upward over the past 60 days. Electronic Arts currently carries a Zacks Rank #3 (Hold).Activision Blizzard, Inc. ATVI, known for its Call of Duty franchise, is set to release Diablo II: Resurrected during the holiday season this year. This Zacks Rank #3 company has an expected earnings growth rate for the current year of 10.4% against the Zacks Toys - Games - Hobbies industry’s projected earnings decline of 4.4%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.3% upward over the past 60 days. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 24th, 2021

Cheniere (LNG) to Introduce Feed Gas to Sabine Pass Train 6

Cheniere (LNG) to introduce feed gas to commission certain portions of Train 6 at the Sabine Pass facility, with a production capacity of 30 million metric tons per year of liquefied natural gas. Cheniere Energy Inc. LNG obtained permission from the Federal Energy Regulatory Commission to introduce feed gas to commission certain portions of Train 6 at the Sabine Pass liquefied natural gas export facility in Louisiana.The approval was in response to Cheniere’s request to introduce gas and enable the Train 6 fuel gas system. Feed gas is processed natural gas from pipelines, which will be converted into liquefied natural gas.The company expects Train 6 to complete in the first half of 2022. However, most analysts opine that the facility will start producing liquefied natural gas in test mode later this year. Once Train 6 is completed, the facility will have a production capacity of about 30 million metric tons per year of liquefied natural gas.Cheniere is a major liquefied natural gas exporter and the largest buyer of natural gas in the United States. Notably, feed gas deliveries to the company's Sabine Pass facility hit their highest level since May, when the terminal was allowed to begin flows to Train 6 as part of commissioning.Beside Sabine Pass, Cheniere also owns the Train 3 at its Corpus Christi liquefied natural gas export plant in Texas. With scheduled facility or pipeline maintenance affecting two other export terminals, the company’s Sabine Pass and Corpus Christi facilities combined for more than 60% of the total 10.2 billion cubic feet per day of feed gas demand in the United States.Once fully operational, Cheniere's ninth overall liquefaction unit across its two terminals in Sabine Pass and Corpus Christi will bring its total capacity to 45 million metric tons per year. The company expects to make a final investment decision in 2022 on a 10-million-metric-ton year expansion with the help of mid-scale units at the site of its Texas facility.Company ProfileHeadquartered in Houston, TX, Cheniere primarily engages in businesses related to liquefied natural gas.Zacks Rank & Other Stocks to ConsiderThe company currently carries a Zack Rank #2 (Buy).Some other top-ranked players in the energy space are Earthstone Energy, Inc. ESTE, Phillips 66 Partners LP PSXP and Schlumberger Limited SLB, each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earthstone’s earnings for 2021 are expected to increase 52.6% year over year.Phillips 66’s earnings for 2021 are expected to rise 51.6% year over year.Schlumberger’s earnings for 2021 are expected to increase 45.1% year over year. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schlumberger Limited (SLB): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis Report Phillips 66 Partners LP (PSXP): Free Stock Analysis Report Earthstone Energy, Inc. (ESTE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 24th, 2021

Ball Corp (BLL) to Build Can Plant in Nevada to Meet Demand

Ball Corp's (BLL) latest investment supports its focus on expanding the company's capacity to meet customers' surging demand for beverage cans. Ball Corporation BLL recently announced that it intends to build a new multi-line aluminum beverage-can packaging plant in North Las Vegas, NV, in an effort to boost its capacity to meet customers’ heightening demand for beverage cans. This plant is scheduled to commence production in the end of 2022. The company plans to invest roughly $290 million in this facility over several years. The plant will supply a variety of innovative can sizes to diverse beverage customers.Given its proximity to customer can-filling investments, rising beverage can packaging demand in the region, proper infrastructure and regional labor base, North Las Vegas is an appropriate choice. Once it gets fully operational, the new facility will likely add 180 jobs in the state.The can industry has been witnessing a rising demand for the past few years, as customers now prefer cans over plastic packaging owing to environmental concerns. Changing lifestyle choices, population growth and increasing disposable income have led to this shift. An estimated 75% of new beverage product launches are now in cans. These aluminum cans, bottles and cups are infinitely recyclable and economically valuable beverage packaging option, with an 82% recycling rate in the U.K. and 76% across Europe. On top of this, the COVID-19 pandemic provided a boost to the beverage can industry, as customers are opting to buy multiple packs of beverages and packaged products that can be consumed on-the-go. The global beverage-can industry is expected to grow by approximately 100 billion units by 2025. Of this, the company sees an opportunity to add as much as 45 billion units.To capitalize on this demand trend, Ball Corp has been investing significantly in projects across North America, South America and EMEA, which are expected to add at least 25 billion units of contracted beverage-can capacity by the end of 2023 (off a 2019 base of 100 billion units). The company has been witnessing stellar growth in its top and bottom lines for the past few quarters thanks to the solid global beverage-can demand. The company’s constant focus on rolling out new products and efforts to cut down costs will continue to aid its performance.The investments also align with Ball Corp’s “Drive for 10 vision”, which comprises five strategic levers that are key to growing its business and driving long-term growth. A key lever among these is to maximize the value of the existing businesses by improving efficiencies in its facilities and expanding production across the company’s global plant network to meet the current demand.The company maintains its expectation to deliver long-term diluted earnings per share growth of at least 10-15% and achieve EVA (economic value added) dollars growth of 4-8% per year in 2021 and beyond.Price PerformanceThe stock has gained 11.4% over the past six months, outperforming the industry’s growth of 8.8%.Image Source: Zacks Investment ResearchZacks Rank & Stocks to ConsiderBall Corp currently carries a Zacks Rank #3 (Hold).Better-ranked stocks in the Industrial Products sector include Encore Wire Corporation WIRE, Alcoa Corporation AA and Lincoln Electric Holdings, Inc. LECO, each carrying a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Encore Wire has a projected earnings growth rate of 332.6% for fiscal 2021. So far this year, the company’s shares have gained 45%.Alcoa has an estimated earnings growth rate of 573.2% for 2021. The company’s shares have rallied 108%, so far this year.Lincoln Electric has an expected earnings growth rate of 45.1% for 2021. The stock has appreciated 22%, year to date. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa Corp. (AA): Free Stock Analysis Report Ball Corporation (BLL): Free Stock Analysis Report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Encore Wire Corporation (WIRE): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 24th, 2021

Here"s Why Shell (RDS.A) Bids Goodbye to Permian Basin

Shell (RDS.A) will use $7 billion of the transaction's proceeds to aid additional shareholder dividends following completion of the divestment. The remaining amount will be spent on debt servicing. Royal Dutch Shell plc (RDS.A) recently announced an agreement to sell all its assets in the Permian, the most prolific basin in the United States, to competitor ConocoPhillips COP. The cash transaction is valued at $9.5 billion.This deal with ConocoPhillips unlocks a significant value for Shell after examining numerous strategies and portfolio choices for its Permian assets. Upon closure, proceeds worth $7 billion from the transaction will be utilized to support additional shareholder dividends with the balance going toward debt reduction.What’s in the Deal for ConocoPhillips?The transaction is highly accretive and involves the acquisition of roughly 225,000 net acres in the heart of the core Delaware basin, a sub-basin of the broader Permian. The accord also includes the buyout of operated crude, gas and water pipelines and infrastructure, covering a vast area of approximately 600 miles.The aforementioned major acquisition is expected to add 200,000 barrels of oil equivalent per day (Boe/d) of production to ConocoPhillips’ portfolio, putting it just behind Exxon Mobil Corporation XOM, which is likely to produce around 1 million Boe/d from the Lower 48 in 2021. Also, the combined production of ConocoPhillips and Shell’s Permian assets in the second quarter came a close second after Pioneer Natural Resources, beating Chevron Corporation CVX, per Bloomberg.Why Did Shell Exit America’s Hottest Shale Play?Even as late as last year, the Anglo-Dutch oil supermajor had named the Permian as one of its key oil and gas-producing locations. However, it is under tremendous pressure to expedite its departure from fossil fuels.In May, the District Court in The Hague issued a major verdict on a climate dispute brought forth by environmentalists that might set precedents for other oil firms. It ordered the currently Zacks Rank #2 (Buy) Shell to trim its carbon emissions by 45% within 2030 from its 2019 baseline. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Permian asset divestment underlines the growing divide between the European oil firms like Shell, BP and TotalEnergies, which are striving to shift toward renewable energy and low-carbon power, and their American counterparts, who continue to rely on oil and gas as a long-term investment.Shell belongs to a global group of energy and petrochemical companies. It is involved in all phases of the petroleum industry, right from exploration to final processing and delivery. The company is scheduled to release third-quarter earnings results on Oct 28, 2021. The current Zacks Consensus Estimate for earnings is pegged at $1.39 per share for the to-be-reported quarter.Image Source: Zacks Investment ResearchShell has seen its shares surge 61.2% in a year’s time compared with the industry's growth of 59.4%. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 23rd, 2021

Scholastic Reports Fiscal 2022 First Quarter Results

NEW YORK, Sept. 23, 2021 /PRNewswire/ -- Scholastic Corporation (NASDAQ:SCHL), the global children's publishing, education and media company, today reported financial results for the Company's fiscal first quarter ended August 31, 2021. Scholastic typically reports an operating loss and high cash utilization in its first fiscal quarter when most U.S. schools are not in session, however the Company recorded positive net operating cash flow in the current quarter. Fiscal First Quarter 2022 Review (In $ Millions) First Quarter $ % Fiscal 2022 Fiscal 2021 Change Change Revenues $ 259.8 $ 215.2 $ 44.6 21 % Operating income (loss) $ (32.0) $ (57.0) $ 25.0 44 % One-time items (4.2) 12.0 Operating income (loss), ex. one-time items* $ (36.2) $ (45.0) * Please refer to the non-GAAP financial tables attached Company Commentary "We executed successfully against our annual operating plan in the first fiscal quarter of 2022, leveraging the momentum and strong results achieved in the last three months of the prior fiscal year, with our strategic growth platforms in Trade and Education Solutions performing ahead of plan," said Peter Warwick, President and Chief Executive Officer. "Although the first quarter is typically a quiet quarter with most schools closed for summer recess, all of the Company's major domestic businesses realized solid double-digit top-line growth year-over-year, while the international businesses, primarily Australia and New Zealand, were adversely affected by new COVID restrictions." "We are seeing increased bookings of our premium case book fairs when compared to both prior year and this past spring season. Although still well below pre-COVID levels, the current back-to-school period looks favorable as students return to in-classroom instruction this fall. With schools re-opening their doors, we also saw higher sales of both curriculum and supplemental reading materials, such as our classroom libraries and leveled bookrooms. Subscriptions to the Company's education digital programs, including BookFlix®, Scholastic Literacy Pro®, and Scholastic F.I.R.S.T.® also continued to grow in the period. In trade publishing, we ended the quarter with 16 of the top 25 children's fiction books on the Publishers' Weekly Bestseller List — a testament to the deep commitment we have to creating titles and series that resonate with children and parents from all backgrounds and with varied interests. And, we are excited about our new fall frontlist that includes Cat Kid Comic Club®: Perspectives, the second title in the bestselling series by Dav Pilkey, as well as J.K. Rowling's The Christmas Pig." Mr. Warwick concluded, "We remain optimistic for continued growth through the post-COVID recovery and expect strong operating leverage and free cash flow generation given the success of our recent cost savings initiatives and solid execution, even as we are seeing inflationary pressures in our supply chain and labor pools. I am confident that we remain on a path to generate sustainable value for all of our stakeholders in the current fiscal year and beyond." Revenues Consolidated revenues increased 21% to $259.8 million in the first quarter versus the prior year period, primarily driven by the U.S. trade and education channels. Trade publishing revenues grew on the strength of the Company's series publishing and strong backlist titles. Higher sales in the education channels were driven by the Company's new early childhood program, PreK On My Way™, and summer learning product offerings bolstered by federal government funding for K-12 schools in the U.S. Partially offsetting the revenue improvements was a reduction in sales in the International segment as certain countries around the world continue to struggle with the pandemic-related disruptions in their local markets.  Operating Profit / Loss First quarter operating loss improved 44% to $32.0 million versus the prior year period. The first quarter's improved operating loss was directly attributable to the higher sales volume as the Company is beginning to recover from the pandemic, coupled with the continued benefits of the restructuring program executed in the prior fiscal year, as well as the proceeds from first tier insurance coverage related to the settlement of an intellectual property legal matter, partially offset by the prior period employee furlough and reduced work week programs which did not reoccur in the current period. Excluding one-time items in both periods, the Company had operating loss of $36.2 million in the first quarter of 2022, versus $45.0 million in the first quarter of 2021. Capital Position and Liquidity Net cash provided by operating activities was $63.6 million in the first quarter compared to net cash used in operating activities of $26.0 million in the prior year period, an increase of $89.6 million. The Company had free cash flow (a non-GAAP liquidity measure defined in the accompanying tables and reconciled to net cash provided) of $49.1 million in the first quarter compared to a free cash use of $34.9 million in the prior year period. As of August 31, 2021, the Company's cash and cash equivalents exceeded total debt by $219.1 million, compared to $135.6 million a year ago. The higher net cash position and the $84.0 million increase in free cash flow was primarily driven by the receipt of a $63.1 million federal income tax refund, higher customer remittances, and a $6.6 million insurance reimbursement related to the settlement of an intellectual property matter. The $20.0 million settlement was accrued for in the prior fiscal year and paid in September 2021. The Company is still in the process of filing claims with secondary and tertiary insurance carriers for the remaining settlement amount. During the quarter, the Company paid down $100.0 million of the outstanding borrowings under its domestic revolving credit facility, resulting in $75.0 million in outstanding revolving credit loans at quarter-end. The Company will continue to evaluate its borrowing position and capital allocations based on the performance of the school-based channels during the course of the current fiscal year.  The Company is also in dialogue with its banks on the renewal of its multi-year domestic committed credit facility, which is scheduled to mature on January 5, 2022. Overall Results In $ millions First Quarter Fiscal 2022 Fiscal 2021 Earnings (loss) before taxes $ (33.3) $ (51.8) One-time items* (4.2) 12.0 Earnings (loss) ex. one-times $ (37.5) $ (39.8) Interest (income) expense 1.3 1.2 Depreciation and amortization 16.4 16.4 Prepublication amortization 6.8 6.3 Adjusted EBITDA* $ (13.0) $ (15.9) * Please refer to the non-GAAP financial tables attached Loss before taxes for the first quarter was $33.3 million, compared to a loss before taxes of $51.8 million in the prior year period, an $18.5 million improvement. Adjusted EBITDA (a non-GAAP performance measure defined in the accompanying tables and reconciled to earnings (loss) before taxes) for the first quarter was a loss of $13.0 million, compared to a loss of $15.9 million in the prior year period. Adjusted EBITDA improved over the prior period due to the increase in revenues, which was partially offset by a $6.6 million benefit from the sale of the Danbury, CT facility in the prior year period. Fiscal 2022 Outlook  The Company is currently experiencing strong demand for its products and programs as schools begin to re-open this fall with rising book club sponsorship and increased book fair bookings and expects  sequential improvements in its school-based distribution channels in each quarter of the current fiscal year. The Company is well-positioned to meet expected demand in these channels, especially in its book fairs businesses in the U.S., Canada and UK. Scholastic's properties and titles continue to lead the market and occupy spots on the New York Times bestsellers list and are being leveraged for streaming services such as the recent announcement of Puppy Place, a live-action series based on the Company's best-selling books, premiering on October 15th on AppleTV+. In the education solutions channel, the Company continues to closely monitor how federal stimulus funds will impact the overall K‒12 education landscape and expects to benefit from a portion of this new spending. Internationally, the Company expects the lockdowns in Australia to lift and continues to explore growth through the expansion of Scholastic's range of English language learning digital product offerings in Asia. The Company faces certain headwinds in fiscal 2022 with higher labor costs, the discontinuation of certain COVID-related government subsidies and inflationary pressures that could impact paper, freight and other operating costs. Supply chain issues and potential labor shortages could adversely impact operating income through higher costs and/or revenue shortfalls. The Company is taking actions, when available, to help mitigate these potential increases and still expects stronger operating leverage and positive free cash flows. Additionally, the Company continues to identify further opportunities for incremental cost savings through process improvements and automation, consolidation of functions, and increased utilization of the Company's international shared services resources. Segment Results All comparisons detailed in this section refer to operating results for the first quarter ended August 31, 2021 versus the first quarter ended August 31, 2020.  Children's Book Publishing and Distribution (CBP&D) In $ millions First Quarter $ % Fiscal 2022 Fiscal 2021 Change Change Revenues Books Clubs $ 6.8 $ 5.8 $ 1.0 17 % Book Fairs 16.0 13.2 2.8 21 % Trade 93.0 73.3 19.7 27 % Total Revenue $ 115.8 $ 92.3 $ 23.5 25 % Operating income (loss) (21.7) (29.0) 7.3 25 % Operating income (loss) ex. one-time items* (21.7) (29.0) * Please refer to the non-GAAP financial tables attached First quarter segment revenues were $115.8 million, an increase of $23.5 million, or 25%, versus the prior year period primarily driven by trade channel sales. Marketing and publicity activities drove higher sales of Harry Potter® box sets and limited edition foil covers for Dog Man®. New releases from the Company's popular series, The Baby-sitters Club® Graphix™ and Baby-sitters Little Sisters® Graphix, Five Nights at Freddy's™, The Bad Guys™, and Nat Enough™ coupled with the continued success of Alan Gratz's Refugee and Ground Zero and Pam Munoz Ryan's Esperanza Rising also resulted in increased sales. The Company's specialty products performed well both from the Klutz® division and the Make Believe Ideas™ business, which included the launch of a plush product line, Sensory Snuggables™. The fully illustrated MinaLima edition of Harry Potter continued to perform well with the second book to be released at the end of October and The Official Harry Potter Baking book was a bestseller. While the first quarter is not traditionally a significant quarter for the Company's school-based distribution channels, the book clubs channel experienced an increase in the number of teacher sponsors and the book fairs channel had higher revenue per fair when compared to the prior period. Education Solutions In $ millions First Quarter $ % Fiscal 2022 Fiscal 2021 Change Change Revenue $ 80.1 $ 53.6 $ 26.5 49 % Operating income (loss) 7.3 (2.4) 9.7 NM Operating income (loss) ex. one-time items* 7.3 (2.4) * Please refer to the non-GAAP financial tables attached NM - Not meaningful First quarter segment revenues were $80.1 million, an increase of $26.5 million, or 49%, versus the prior year period. Demand for the Company's summer learning product offerings drove an increase in revenues as educators tried to help students recover lost ground before starting the new school year. In addition, the Company experienced higher sales for its supplemental and core instruction products, especially in the new early childhood program, PreK On My Way, as more schools began to open for in-classroom learning. Digital product subscriptions increased when compared to the prior year period, continuing to support the trend digital solutions will play in the education market. Although not yet at pre-COVID levels, the Company's classroom magazine products experienced improvement with a 13% increase in subscriptions which will benefit the Company in future quarters. The first quarter was also positively impacted by the consolidation of the multiple education channels into a single Education Solutions segment allowing the Company to be well positioned to meet the needs of an ever changing market. International In $ millions First Quarter $ % Fiscal 2022 Fiscal 2021 Change Change Revenue $ 63.9 $ 69.3 $ (5.4) (8) % Operating income (loss) (1.7) 4.8 (6.5).....»»

Category: earningsSource: benzingaSep 23rd, 2021

Toll Brothers (TOL) Down 5.1% Since Last Earnings Report: Can It Rebound?

Toll Brothers (TOL) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Toll Brothers (TOL). Shares have lost about 5.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Toll Brothers due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Toll Brothers Q3 Earnings & Revenues Top, Margin UpToll Brothers, Inc. reported strong third-quarter fiscal 2021 (ended Jul 31, 2021) results. Both the top and bottom lines topped the Zacks Consensus Estimate and increased significantly on a year-over-year basis. The company has been benefiting from its strategy of broadening the product lines, price points and geographies.Douglas C. Yearley, Jr., chairman and chief executive officer, said, “Demand continues to be very strong. Net signed contracts were up 35% in dollars to approximately $3 billion compared to the prior year period. The housing market is being driven by many strong fundamentals, including low mortgage rates, favorable millennial-driven demographics, a decade of pent-up demand, low new home supply, and a tight resale market. We expect strong and sustainable demand for our homes in the years to come.”He continued, “Our record backlog, our focus on capital and operating efficiency, and the continued strength of the housing market give us confidence that our full FY 2022 margins will significantly exceed the strong margins we project for our FY 2021 fourth quarter and that our return on beginning equity will exceed 20% in FY 2022 and beyond.”On Aug, 24, 2021, Toll Brothers announced a strategic partnership with Equity Residential to selectively acquire and develop sites for new rental apartment communities in Metro Boston, MA; Atlanta, GA; Austin, TX; Denver, CO; Orange County/San Diego, CA; Seattle, WA, and Dallas-Fort Worth, TX.Earnings & Revenue DiscussionThe country’s leading luxury homebuilder reported earnings of $1.87 per share, surpassing the Zacks Consensus Estimate of $1.52 by 23%. Also, the said figure grew 74.4% from the year-ago figure of 90 cents per share as a result of higher revenues and margins.Revenues of $2.26 billion topped the consensus mark of $2.22 billion by 1.7% and increased 26.8% year over year, backed by solid demand during the quarter.Segment DetailToll Brothers operates under two reportable segments, namely Traditional Home Building and Urban Infill ("City Living").Revenues from Traditional Home Building totaled $2.15 billion, up 28.1% year over year, and that of City Living increased more than 594% to $184 million.Inside the Headline NumbersHome sales revenues grew 37% from the prior year to $2.23 billion. Homes delivered grew 28% year over year to 2,597 units. Deliveries increased in all regions served by the company. The average price of homes delivered was $806,600 for the quarter, up 1.7% from the year-ago level of $793,100.The number of net signed contracts for the reported quarter was 3,154 units, up 11% year over year. The value of net signed contracts was $2.98 billion, reflecting a rise of 35% from the year-ago quarter. These marked record third-quarter numbers.At fiscal third quarter-end, Toll Brothers had a backlog of 10,661 homes, representing a 47% year-over-year increase. Also, potential revenues from backlog improved 55% year over year to $9.44 billion. Backlog for the quarter, in both dollars and units, marked an all-time record high. The average price of homes in backlog totaled $885,200, up from $840,600 at the end of the comparable period of fiscal 2020.Cancellation rate for the reported quarter was 3.1% compared with 8% in the prior-year period.MarginsThe company’s home sales adjusted gross margin was 25.6%, expanding 170 basis points (bps) for the quarter.SG&A expenses — as a percentage of home sales revenues — were 10.5%, which decreased from 11.9% in the year-ago quarter.FinancialsToll Brothers had $946 million cash and cash equivalents as of Jul 31, 2021 compared with $1.37 billion at fiscal 2020-end. At fiscal third quarter-end, it had $1.79 billion available under the $1.905-billion bank revolving credit facility, scheduled to mature in November 2025.Total debt at fiscal third quarter-end was $3.59 billion, down from $3.96 billion at fiscal 2020-end. Debt to capital was 41.6% at fiscal third quarter-end versus 44.8% a year ago.During the quarter, the company repurchased nearly 1.7 million shares of its common stock at an average price of $57.66 per share for approximately $95.4 million.Fiscal Fourth-Quarter GuidanceToll Brothers expects home deliveries of 3,450 units (indicating an improvement from 2,940 units delivered in the prior-year quarter) at an average price of $840,000 (suggesting a rise from $805,000 a year ago).Adjusted home sales gross margin is now expected to be 25.6% (up from prior projection of 24.8), implying an increase from 21.9% in the year-ago period. SG&A expenses are estimated to be 9.8% of home sales revenues (pointing to fall from 9.9% a year ago). The projection has improved from prior expectation of 11.6%. The company expects effective tax rate to be 26%.Fiscal 2021 GuidanceFor full-year fiscal 2021, home deliveries are now anticipated to be 10,100 units (indicating an improvement from 8,496 units reported in fiscal 2020) at an average price of $830,000. Average price in the year-ago quarter was $816,500.Toll Brothers expects adjusted home sales gross margin of 24.9% (reflecting a marginal increase from 24.6% projected earlier). The current projection implies growth from 23.5% recorded in the year-ago period. SG&A expenses, as a percentage of home sales revenues, for full-year fiscal 2021 are projected to be 11.3% (suggesting fall from 12.5% in fiscal 2020). The current estimate reflects a decrease from the prior projection of 11.8%.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 5.27% due to these changes.VGM ScoresAt this time, Toll Brothers has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. 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. Notably, Toll Brothers has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Toll Brothers Inc. (TOL): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 23rd, 2021

What"s in the Offing for Micron Technology"s (MU) Q4 Earnings?

Micron's (MU) Q4 results likely to reflect benefits from significant memory chip demand from data-center operators and PC manufacturers amid the pandemic-induced work-and-learn-from-home wave. Micron Technology MU is scheduled to report fourth-quarter fiscal 2021 results on Sep 28.The company projects fiscal fourth-quarter adjusted earnings to be $2.30 (+/- 10 cents) per share. The Zacks Consensus Estimate for the quarterly earnings is pinned at $2.31 per share, having been revised upward by 16 cents over the past 90 days. The consensus mark indicates a 113.9% surge from the year-ago quarter.Meanwhile, Micron estimates revenues to be $8.2 billion (+/- $200 million). The consensus mark for revenues is currently pegged at $8.19 billion, suggesting a 35.3% increase from the year-earlier period.The company’s earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 7.7%.Let’s see how things have shaped up prior to this announcement.Micron Technology, Inc. Price and EPS Surprise Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. QuoteFactors to ConsiderThe stay-at-home situation has spurred significant chip demand from PC manufacturers and data-center operators, which is anticipated to have driven Micron’s fiscal fourth-quarter earnings. The global quarantine situation has fueled significant demand for PCs and notebooks, with the surge in workers and students working and learning from homes.The remote-working and online-learning trend amid the coronavirus crisis has also stoked demand for cloud storage. Furthermore, lockdowns have fueled the usage of online and e-commerce services globally, compelling data-center operators to enhance their capacities in order to accommodate the demand spike for cloud services. All these factors are likely to have aided Micron’s top line during the quarter under review.A solid uptick in the DRAM bit shipments for the cloud, graphics, PC and notebook, 5G and automotive markets is anticipated to have been a positive during the quarter to be reported.Nonetheless, Micron’s heavy dependence on China is a headwind due to the ongoing tit-for-tat trade spat between the United States and China. Restrictions on exports to Huawei might have hurt top-line growth of the memory chip maker.Additionally, a higher mix of lower-margin NAND, coupled with low memory prices and minimal decline in manufacturing costs, is expected to have strained margins.Furthermore, higher prequalification and labor expenses are likely to have negatively impacted Micron’s fourth-quarter bottom-line performance. During the fiscal second-quarter conference call, the company noted that it expects a rise in operating expenses during the second half of fiscal 2021 due to the higher prequalification and labor expenses.Moreover, operating expenses are expected to have flared up during the fiscal fourth quarter due to the resumption of the previously-delayed fiscal 2021 salary hikes in the fiscal third quarter. This might have hurt the company’s margins and profitability during the quarter under review.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Micron this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.Micron currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%.Stocks With Favorable CombinationsHere are some companies, which, per our model, have the right combination of elements to post earnings beats in their upcoming releases:Alcoa AA has an Earnings ESP of +33.55% and sports a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.McCormick & Company MKC has an Earnings ESP of +0.28% and currently carries a Zacks Rank of 3.CarMax KMX has an Earnings ESP of +0.18% and holds a Zacks Rank of 3, currently. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Alcoa Corp. (AA): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report CarMax, Inc. (KMX): Free Stock Analysis Report McCormick & Company, Incorporated (MKC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 23rd, 2021

Steelmakers Capitalize Record Prices to Spend Big on New Mills

The recently announced multi-billion projects from major U.S. steel producers reflect the underlying strength in the domestic steel industry underpinned by strong demand and record-high prices. Record-high steel prices and an upswing in demand in the manufacturing sector have ushered in boom time for the steel industry. Some of the biggest names in this space are making big investment to establish new mega mills to leverage the industry’s bull run.Steel Boom Driving Spending SplurgeMajor American steel producers, Nucor Corp. NUE and United States Steel Corp. X recently announced plans to set up new mills in the United States.Nucor, on Monday, announced its plans to construct a state-of-the-art sheet mill having an annual capacity of 3 million tons. It is looking at locations in Ohio, Pennsylvania and West Virginia to build the mill.The company is spending roughly $2.7 billion on the new mill that will be able to produce hot-rolled sheet products with downstream processing. The construction is expected to take two years after the required regulatory approvals are obtained. The geographic position of the mill will allow it to serve Midwestern and Northeastern customers and ensure a significantly lower carbon footprint than nearby competitors.Nucor noted that the new mill will allow it to meet the growing need of many of its customers, especially in the automotive market. The sheet mill is the latest in a series of investments made by the Charlotte-based steel giant that are expected to contribute to profitable growth and strengthen its position as a low-cost producer. The company is on track with its other significant growth projects — the Brandenburg plate mill, the Generation 3 flexible galvanizing line at the Hickman sheet mill and the modernization and expansion of the Gallatin sheet mill in Kentucky.U.S Steel, last week, also said that it plans to spend $3 billion to build a new, three-million-ton mini mill flat-rolled facility in the United States. The planned mini mill will integrate two state-of-the-art electric arc furnaces (“EAF”) with differentiated steelmaking and finishing technology, including purchased equipment owned by the company. The continued adoption of mini mill technology will enhance the company’s ability to produce the next generation of highly-profitable proprietary sustainable steel solutions, including Advanced High Strength Steels.U.S. Steel expects to start construction of the mini mill in the first half of 2022 and commence production in 2024. The planned investment is a key step toward achieving the company's 2030 goal of reducing global greenhouse gas emissions intensity by 20% from the 2018 baseline.The newly announced multi-billion projects from these major steel producers reflect the underlying strength in the steel industry underpinned by solid demand and pricing fundamentals. Steel Dynamics, Inc. STLD is also progressing with the construction of its 3 million-ton state-of-the-art EAF flat roll steel mill in Sinton, TX with production expected to commence in fourth-quarter 2021.The U.S. steel industry came roaring back in 2021 after bearing the brunt of the pandemic last year, thanks to a strong revival in domestic demand and zooming steel prices.Coronavirus hurt demand for steel across major end-use markets such as construction and automotive during the first half of 2020. However, demand for steel started to pick up from the third quarter last year with the resumption of operations across major steel-consuming sectors, following the loosening of restrictions.American steel makers are seeing healthy order booking in automotive, notwithstanding the semiconductor crunch. Demand in the non-residential construction market and equipment also remains resilient.The demand rebound has contributed to the significant uptick in U.S. steel industry capacity utilization on the restart of idled capacity. U.S. steel prices are also on an upswing, driven by an upturn in demand and supply shortages partly due to the pandemic.The benchmark hot-rolled coil (“HRC”) prices are shooting higher on U.S. steel mills’ price hike actions, tight supply conditions, low steel imports and solid pent-up demand. Prices are hitting fresh highs, having shot up more than four-fold from the lows witnessed in August 2020 and also nearly doubled since the start of 2021. HRC prices have cruised above the $1,900 per short ton level as the upward momentum continues.The price rally is expected to continue in the coming months on solid demand and supply constraints, which is likely to be exacerbated by a series of planned mill outages and scheduled maintenance.U.S. Steel Industry Looks Set for A Solid Q3 Earnings SeasonRobust domestic demand and the price surge helped U.S. steel companies deliver strong results in the second quarter. These companies are benefiting from spread expansion as a significant spurt in HRC prices has more than offset higher ferrous scrap costs. Higher demand and a favorable pricing environment are likely to help U.S. steel producers to continue the momentum in the third quarter.Some of the prominent U.S. steel producers recently came up with an upbeat guidance for the September quarter. Nucor said that it expects to log record quarterly earnings in the third quarter, driven by strong demand across most of its end-markets and higher average selling prices. Steel Dynamics also sees record quarterly performance, supported by strong underlying steel demand and significant metal spread expansion, especially within the flat roll steel operations.U.S. Steel expects record third-quarter results driven by its Best for All business model, strong reliability and quality performance, persistent customer demand as well as sustained rise in steel selling prices. Olympic Steel, Inc. ZEUS, last month, said that it expects a strong third quarter on strong market dynamics and record-high prices.Nucor, Steel Dynamics and U.S. Steel each sports a Zacks Rank #1 (Strong Buy), while Olympic Steel has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank stocks here. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Steel Dynamics, Inc. (STLD): Free Stock Analysis Report United States Steel Corporation (X): Free Stock Analysis Report Nucor Corporation (NUE): Free Stock Analysis Report Olympic Steel, Inc. (ZEUS): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 23rd, 2021

5 Stocks to Watch as EV Adoption Revs Up

EV adoption has witnessed significant growth this year. Thus, investors should keep an eye on Nikola (NKLA), Hyliion (HYLN), Tesla (TSLA), Ford (F) & General Motors (GM). Electric vehicles (EV) are rapidly gaining in terms of reliability and a way to reduce the global carbon footprint. Longest-lasting, farthest-driving and affordable batteries are the key parameters of the race in the EV market.The automobile industry is moving toward electrification and the U.S. government is providing aid through the promotion of EV infrastructure and consumer rebates. Regardless of the government’s boost and the infrastructure bill scheduled to be passed on Sep 27, the industry is poised to witness tremendous growth.Consumer enthusiasm has been a key to EV growth, as can be seen from the boom in sales. In the first quarter of 2021, global EV sales surged 160% from the same quarter last year to 2.6 million units, according to a report by Canalys. Sales have been spectacular despite several supply-side constraints, especially the pandemic and chip shortage.China is the largest EV market while Europe has the highest EV adoption, with Norway leading with more than 80% of new car sales. Meanwhile, the United States is trying to catch up and the Biden administration hopes 40% to 50% of all new cars sales to be EVs by 2030.Recent technological developments are also boosting the EV space, starting from carmakers to battery producers and charging networks. In fact, batteries are the linchpin of any EV and this segment has especially witnessed exponential growth. Companies like Hyliion Holdings Corp. HYLN are developing electric powertrains that are compatible with renewable natural gas and hydrogen fuel cells. Meanwhile, QuantumScape announced a major breakthrough in solid-state lithium metal batteries that can totally change the way consumers view EVs.The EV market has also created several niches like battery recycling and disposal of old batteries. Companies like Li-Cycle Holdings, founded only in 2016, estimates that the EV industry will produce more than 15 million tons of discarded lithium-ion batteries by 2030. Li-Cycle, a battery recycling firm, plans to capture this segment by offering an outlet for used batteries and a sustainable source for materials to be used in recycled batteries. It aims to recover usable materials from thrown-away batteries and touts that up to 95% of the battery materials can be processed for recovery, which in turn will reduce waste.Automobile bigwigs are also investing millions into EVs. On Sep 22, Ford Motor Company F reported that it is investing $50 million in Redwood Materials to recycle EV batteries. Redwood, which is well known for recycling batteries for e-bike, will expand its manufacturing facilities and cater to make EVs more sustainable and affordable. This deal is part of the $22-billion plan that Ford earlier announced to up its game in the EV market. The company also has the Mach-E, the e-Transit commercial van, and an electric F-150 line-up, set to be launched this year and the next.5 Stocks to WatchGlobal administration bodies are increasing regulations to phase out fossil fuel-powered vehicles and promoting EV infrastructure. Additionally, the decline in the cost of batteries and the luxury that EVs provide are also attracting buyers. Per a Meticulous Market Research forecast, the global EV market is expected to reach $2.5 trillion by 2027, at a CAGR of 33.6% from 2020. The company estimates the sale of 233.9 million units by 2027, at a CAGR of 21.7%.Given the positives, we have shortlisted five stocks covering EV manufacturers (pure-play & traditional), battery makers and charging networks that are poised to grow and investors should look out for.Nikola Corporation NKLA develops and commercializes battery-electric (BEV) and fuel cell electric (FCEV) Class 8 trucks for the short, medium, and long-haul trucking sector and also offers hydrogen EVs, EV drivetrains, vehicle components, and energy storage systems. Earlier in September, Nikola inaugurated a joint-venture manufacturing facility with CNH Industrial dedicated to the development of the Nikola Tre electric heavy-duty trucks.The company’s expected earnings growth rate for the current quarter is 16.1% against the Zacks Automotive - Domestic industry’s projected decline of 48.7%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 18.5% upward over the past 60 days. Nikola currently holds a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Hyliion Holdings designs, develops, and sells electrified powertrain solutions and also provides battery management systems for hybrid and fully EV applications. This Zack Rank #2 company that belongs to the Zacks Automotive - Original Equipment industry has an expected earnings growth rate of 50% for the current quarter. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 9.4% upward over the past 60 days.Tesla, Inc. TSLA designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems.The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Automotive - Domestic industry’s projected growth of 15.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 19.1% upward over the past 60 days. Tesla carries a Zack Rank #3 (Hold).Ford, a Zack Rank #3 company, designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles. The company plans to add F-150 Lightning with four series and two battery options to the range of Mustang Mach-E catalog by spring 2022.The auto giant has an expected earnings growth rate for the current year of more than 100% compared with the Zacks Automotive - Domestic industry’s projected growth of 15.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 28.2% upward over the past 60 days.General Motors Company GM designs, builds, and sells cars, trucks, crossovers, and automobile parts. The company recently unveiled the Cadillac LYRIQ show car and the GMC HUMMER EV, which joined the Chevrolet Bolt EV, and is currently on the market. The auto giant will invest $27 billion in EVs and associated products between 2020 and 2025.This Zack Rank #3 company’s expected earnings growth rate for the current year is 25.7% compared with the Zacks Automotive - Domestic industry’s projected growth of 15.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 0.7% upward over the past 90 days. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Nikola Corporation (NKLA): Free Stock Analysis Report Hyliion Holdings Corp. (HYLN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 23rd, 2021

IHS Markit (INFO) to Post Q3 Earnings: What"s in the Cards?

IHS Markit Ltd.'s (INFO) third-quarter fiscal 2021 earnings and revenues are likely to reflect strong segmental performance. IHS Markit Ltd. INFO is scheduled to release third-quarter fiscal 2021 results on Sep 28, before the bell.The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the last four quarters. It has a trailing four-quarter earnings surprise of 5.4%, on average.IHS Markit Ltd. Price and EPS Surprise  IHS Markit Ltd. price-eps-surprise | IHS Markit Ltd. Quote Expectations This Time AroundThe Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.17 billion, indicating year-over-year growth of 9.2%. The top line is likely to have gained from strong performance in the Financial Services and Transportation segments.In the transportation segment, the dealer-facing part of IHS Markit’s automotive offerings is likely to have experienced robust growth across CARFAX and automotive Mastermind in the quarter. Demand for products supporting OEMs, banking and insurance clients as well as parts manufacturers is expected to have increased significantly.The Financial Services segment’s revenues are expected to have benefited from organic growth, driven by growth in demand for the company’s pricing, reference data and valuation offerings, strong growth in the equities regulatory reporting as well as trade and analytics platforms. The segment is likely to have benefitted from strong activity in equities and loan markets, combined with strength in customers in software solutions, corporate actions, regulatory and compliance offerings.The consensus mark for earnings per share in the to-be-reported quarter is pegged at 83 cents per share, indicating year-over-year growth of 7.8%.  The bottom line is projected to have benefited from improvement in operating performance.What Our Model SaysOur proven model does not conclusively predict an earnings beat for IHS Markit this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.IHS Markit has an Earnings ESP of 0.00% and a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks to ConsiderHere are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Booz Allen Hamilton BAH has an Earnings ESP of +1.98% and a Zacks Rank #3.Fidelity National Information Services FIS has an Earnings ESP of +0.81% and a Zacks Rank #3.Trane Technologies TT has an Earnings ESP of +0.73% and a Zacks Rank #3.  More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report Trane Technologies plc (TT): Free Stock Analysis Report IHS Markit Ltd. (INFO): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 23rd, 2021

RBC Bearings (ROLL) Prices Stock Offerings, To Offer Notes

RBC Bearings (ROLL) offers common and convertible preferred stocks to the public and intends on offering senior notes privately. Proceeds are to be primarily used for funding the DODGE buyout. RBC Bearings Incorporated ROLL announced the pricing of public offerings of its common shares and 5.00% Series A mandatory convertible preferred stock. Concurrently, the company communicated that its wholly-owned subsidiary, Roller Bearing Company of America, Inc., intends on issuing $500 million of senior notes.Yesterday, RBC Bearings’ shares gained 5.43%, ending the trading session at $199.57.Inside the HeadlinesFor 3 million common share offerings, RBC Bearings priced each share at $185.00. Underwriters have been given the option to purchase additional 0.45 million common stocks. Discount offered to the underwriters totals $27.8 million (at the rate of $9.25 per common stock for 3 million shares) or $31.9 million (at the rate of $9.25 per common stock for 3.45 million shares). The net proceeds from the common stock offering are expected to be $526.4 million (for 3 million share offering) or $605.5 million if the underwriters exercise their options entirely.For a $400-million preferred stock offering, the company priced each stock at $100.00. At this price, its offerings are for 4 million preferred stocks or 4.6 million stocks, including underwriters’ option to buy additional 0.6 million stocks. Notably, each preferred stock has a liquidation preference of $100.The annual dividend rate for the preferred stock is 5%. Payouts will be made quarterly on Jan 15, Apr 15, Jul 15 and Oct 15. The first disbursement is scheduled for Jan 15, 2022, and the last payment is on Oct 15, 2024.Notably, the preferred stocks will be converted into the company’s common shares on Oct 15, 2024. The initial minimum and maximum conversion rates are 0.4413 and 0.5405, respectively, while the initial minimum and maximum conversion prices are $185.00 per share and $226.63 per share, respectively.The underwriters’ discount totals $12 million (at the rate of $3.00 per preferred stock for 4 million shares) or $13.8 million (at the rate of $3.00 per preferred stock for 4.6 million shares). Net proceeds are expected to be 387.2 million (for 4 million shares) or $445.4 million if the underwriters exercise their options entirely.The option for underwriters in both offerings is valid for 30 days. Also, net proceeds are after adjusting discounts for underwriters, commissions, and expenses related to the offerings. The settlement date for both offerings is set at Sep 24, 2021.RBC Bearings anticipates using the net proceeds from the common stock and preferred stock offerings to fund the acquisition of Asea Brown Boveri Ltd’s DODGE mechanical power transmission division. The deal, valued at $2.9 billion, was announced by RBC Bearings in July and is anticipated to be complete in third-quarter fiscal 2022 (ending December 2021). In addition, the company plans on using the proceeds for paying fees and expenses related to the DODGE acquisition and satisfy general corporate purposes.Regarding the senior notes offering, RBC Bearings’ subsidiary proposes to offer senior notes due to mature in 2029. The private offering of notes is subject to the satisfaction of the market and other necessary conditions. The proceeds raised from the offerings will be used for financing the acquisition of Asea Brown Boveri Ltd’s DODGE mechanical power transmission division. Also, buyout-related expenses and other costs will be financed.It is worth mentioning here that RBC Bearings’ shares outstanding at the end of first-quarter fiscal 2022 (ended Jul 3, 2021) were 25.3 million, while its long-term debts are $10.8 million.We believe that the above-mentioned common stock offering along with preferred stocks, when converted into common stock, will increase the company’s common stock outstanding balance. A rise in shares outstanding will likely have adverse impacts on the company’s earnings per share. Also, the issuance of senior notes will inflate the debts.Zacks Rank, Price Performance and Estimate TrendWith a market capitalization of $4.8 billion, RBC Bearings currently carries a Zacks Rank #3 (Hold). Strength in industrial markets, healthy backlog and favorable shareholder-friendly policies are beneficial. However, the persistence of weakness in the aerospace markets is concerning.In the past three months, the company’s shares have decreased 2.3% compared with the industry’s decline of 3.9%. Image Source: Zacks Investment Research In the past 60 days, the Zacks Consensus Estimate for its earnings has decreased 3.7% to $1.05 per share for the second quarter of fiscal 2022 (ending September 2021). The consensus estimate for fiscal 2022 (ending March 2022) at $4.49 and for fiscal 2023 (ending March 2023) at $5.14 reflects 0.2% and 0.8% increases from the 60-day-ago figures, respectively.RBC Bearings Incorporated Price and Consensus  RBC Bearings Incorporated price-consensus-chart | RBC Bearings Incorporated QuoteStocks to ConsiderThree better-ranked stocks in the industry are Kadant Inc. KAI, Nordson Corporation NDSN and EnPro Industries, Inc. NPO. While Kadant and Nordson presently sport a Zacks Rank #1 (Strong Buy), EnPro Industries carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.In the past 60 days, earnings estimates for these companies have improved for the current year. Further, positive earnings surprise for the last reported quarter was 33.11% for Kadant, 14.15% for Nordson and 25.81% for EnPro Industries. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Nordson Corporation (NDSN): Free Stock Analysis Report Kadant Inc (KAI): Free Stock Analysis Report EnPro Industries (NPO): Free Stock Analysis Report RBC Bearings Incorporated (ROLL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 23rd, 2021

General Dynamics (GD) Wins Deal to Support Abrams Tank System

General Dynamics (GD) is going to provide technical support services for the Abrams tank system. General Dynamics Corporation’s GD Land Systems business unit recently secured a $13.7-million modification contract to provide technical support services for the Abrams tank system. The contract has been awarded by the U.S. Army Contracting Command, Warren, MI.Work related to the deal will be performed in Sterling Heights, MI, and is scheduled to be completed by Sep 30, 2022.Solid Demand for MBTsNations are developing advanced new generation main battle tanks (MBTs) to equip their militaries amid rising geopolitical tensions. General Dynamics’ Abrams battle tank is one such tank and thus its demand continues to soar.Apart from the solid demand on the domestic front, it has a robust customer base overseas. Major international militaries of nations like Egypt, Kuwait, Saudi Arabia, Australia, and Iraq are the primary customers of Abrams battle tanks. Therefore, General Dynamics witnesses solid contract flow for Abrams from Pentagon and other U.S. allies.The company won a $4.62 billion worth contract for manufacturing Abrams M1A2 SEPv3 tanks, last year. The latest contract win is yet another bright example of the solid demand that this tank enjoys.The fiscal 2022 U.S. defense budget included an allotment of $70 million for Abrams battle tank modifications. Such budgetary provisions should usher in more contract wins for the Abrams system and its associated technical upgrades from Pentagon. Such contract wins are likely to boost the company’s profit margin, going ahead.ProspectsPer a report by Mordor Intelligence, the MBT market is expected to register a CAGR of more than 3% during 2020-2025, which bodes well for manufacturers of such battle tanks like General Dynamics, BAE Systems Plc BAESY, and Hyundai Rotem - part of Hyundai Motor Group HYMLF.Price PerformanceShares of General Dynamics have gained 41.5% in a year against the industry’s decline of 5.6%.Image Source: Zacks Investment ResearchZacks Rank & A Key PickGeneral Dynamics currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Textron Inc. TXT, which holds a Zacks Rank #2 (Buy) You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Textron delivered an earnings surprise of 37.41%, on average, in the last four quarters. The Zacks Consensus Estimate for 2021 earnings indicates growth of 58.5%. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Dynamics Corporation (GD): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Bae Systems PLC (BAESY): Free Stock Analysis Report Hyundai Motor Co. (HYMLF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 23rd, 2021

Steelcase Reports Second Quarter Fiscal 2022 Results

Orders grew 24% compared to prior year and 12% compared to first quarter Second quarter revenue impacted by supply chain disruptions, which are expected to persist into third quarter Third price increase of fiscal 2022 announced in response to continued significant inflationary pressures Outlook for third quarter reflects revenue growth of 22% to 27% over prior year GRAND RAPIDS, Mich., Sept. 22, 2021 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE:SCS) today reported second quarter revenue of $724.8 million and net income of $24.7 million, or $0.21 per share. In the prior year, Steelcase reported revenue of $818.8 million and net income of $55.5 million, or $0.47 per share and adjusted earnings of $0.55 per share. In the prior year, revenue benefited from a stronger beginning backlog due to pandemic-related restrictions on manufacturing and delivery activities during the previous quarter, and net income benefited from significant temporary cost reduction actions. Revenue decreased 11 percent in the second quarter compared to the prior year, or 14 percent on an organic basis. Revenue declined 17 percent in the Americas, while revenue grew 10 percent in EMEA and 1 percent in the Other category. Revenue in the prior year benefited from the stronger beginning backlog, and the company estimates revenue in the Americas in the current quarter was negatively impacted by at least $40 million due to shipment delays caused by supply chain disruptions. On an organic basis, revenue declined 19 percent in the Americas and 1 percent in the Other category, while revenue grew 5 percent in EMEA. Orders (adjusted for the impact of an acquisition and currency translation effects) grew 24 percent in the second quarter compared to the prior year, and 12 percent compared to the first quarter. Orders grew 26 percent in the Americas driven by strong growth across all geographic regions and quote types. Orders grew 23 percent in EMEA against the prior year or 43 percent excluding a $19 million project in the prior year. Orders grew 15 percent in the Other category compared to the prior year driven by very strong growth across all regions in Asia Pacific except India, which was negatively impacted by the COVID-19 pandemic.   Q2 2022 vs. Q2 2021   Q2 2022 vs. Q1 2022     Revenue Growth (Decline)   Organic Revenue Growth (Decline)   Organic OrderGrowth   Organic Order Growth                     Americas (17 )%   (19 )%   26 %   10 %   EMEA 10 %   5 %   23 %   17 %   Other category 1 %   (1 )%   15 %   20 %   Steelcase Inc. (11 )%   (14 )%   24 %   12 %                             "Our second quarter order growth of 24 percent was better than we expected, and in some parts of our business, orders approached or exceeded fiscal 2020 levels," said Jim Keane, president and CEO. "A significant number of industry-wide supply chain disruptions have caused us to extend lead times and delay some shipments, which negatively impacted our second quarter revenue. We have not experienced any significant order cancellations as a result of these delays." Second quarter operating income of $33.9 million represented a decrease compared to operating income of $88.6 million and adjusted operating income of $104.2 million in the prior year, excluding the impact of restructuring costs in the Americas. The Americas reported operating income of $44.7 million, which compares to operating income of $94.6 million and adjusted operating income of $110.2 million in the prior year, with the decrease primarily attributable to lower revenue and gross margin. EMEA reported an operating loss of $1.6 million compared to an operating loss of $3.5 million in the prior year due to higher revenue in the current year. The Other category reported an operating loss of $4.2 million compared to $1.1 million of operating income in the prior year due to lower gross margin and higher operating expenses in the current year. Gross margin of 28.5 percent in the second quarter represented a decrease of 440 basis points compared to the prior year, which included $6.9 million restructuring costs in the Americas. Gross margin declined by 550 basis points in the Americas, improved by 120 basis points in EMEA and declined by 420 basis points in the Other category. The decline in the Americas was due to the impact of lower revenue, approximately $17 million of higher inflation, net of pricing, and approximately $5 million of higher freight cost inefficiencies associated with the supply chain disruptions. The decline in the Other category was due to inefficiencies associated with pandemic-related disruptions and approximately $1 million of higher inflation, net of pricing. "The extraordinary inflation in steel, logistics and many other commodities impacted our gross margins more significantly than we expected in the second quarter, and we now project inflation will have a more significant impact on our results over the remainder of this fiscal year than we had previously expected," said Dave Sylvester, senior vice president and CFO.  "The industry forecasts for steel costs have been revised upward and projected to last longer as they have been updated each month over the last year. Last week, in response to these unprecedented levels of inflation, we announced our third price increase of this year. We expect it will take until the second quarter of fiscal 2023 for the benefits from these three price increases to offset the current level of inflation." Operating expenses of $172.9 million in the second quarter represented an increase of $0.6 million compared to the prior year. The prior year included approximately $22 million of lower employee costs as a result of temporary hour and pay reductions and gains of $4.1 million from the sale of land. The current year included a $15.4 million gain from the sale of land, approximately $10 million of benefits related to workforce reductions in the prior year and $12.4 million of lower variable compensation, partially offset by approximately $6 million of higher discretionary spending and $3.2 million from an acquisition. Income tax expense of $4.7 million in the second quarter reflected an effective tax rate of approximately 16 percent, which included $3.8 million of discrete tax benefits. In the prior year, income tax expense was $27.3 million and reflected an effective tax rate of approximately 33 percent. Total liquidity, comprised of cash and cash equivalents and the cash surrender value of company-owned life insurance, aggregated to $530.5 million at the end of the second quarter. Total debt was $484.5 million. During the second quarter, the company repurchased a total of 1.9 million shares of its Class A Common Stock for a total cost of $26.6 million. A total of $29.9 million remained under the company's share repurchase authorization at the end of the second quarter. The Board of Directors has declared a quarterly cash dividend of $0.145 per share, to be paid on or before October 15, 2021, to shareholders of record as of October 4, 2021. Outlook At the end of the second quarter, the company's backlog of customer orders was approximately $715 million, which was approximately 22 percent higher than the prior year, and approximately 15 percent higher than at the end of the first quarter, on an organic basis. The backlog includes a higher than historical percentage of orders scheduled to ship beyond the third quarter. As a result, the company expects third quarter fiscal 2022 revenue to be in the range of $755 to $785 million. The company reported revenue of $617.5 million in the third quarter of fiscal 2021 which was impacted by shipment delays of approximately $60 million due to a temporary global operations shutdown. The projected revenue translates to growth of 22 to 27 percent compared to the third quarter of fiscal 2021, or organic growth of 20 to 25 percent, adjusted for an acquisition and currency translation effects. The company expects to report earnings per share of between $0.07 to $0.11 for the third quarter of fiscal 2022. The estimate includes: (1) projected inflation, net of pricing benefits, of approximately $28 million as compared to the prior year, (2) continued supply chain disruptions and related costs similar to the second quarter, (3) projected operating expenses of between $195 to $200 million, (4) projected interest expense, investment income and other income, net, of approximately $5 million, and (5) a projected effective tax rate of approximately 28 percent. Steelcase reported earnings per share of $0.02, and adjusted earnings per share of $0.08, in the third quarter of fiscal 2021. For the fourth quarter of fiscal 2022, the company continues to target double-digit revenue growth compared to fiscal 2021, based on the expected economic strength in most markets and the return of workers to offices around the world. "The rise of the Delta variant has caused some U.S. customers to delay their return-to-office plans and has led to temporary uncertainty that may explain recent softening we have seen in our pipeline of project opportunities and requests for proposals in the Americas," said Jim Keane. "Nevertheless, our orders were quite strong throughout the second quarter and remained strong in recent weeks, which is reflected in our third quarter revenue outlook. As the U.S. implements vaccine and testing mandates, businesses may see a more certain path to bringing people back to the office." Business Segment Results                       (in millions)                                                 (Unaudited)       (Unaudited)       Three Months Ended       Six Months Ended       August 27,2021   August 28,2020   % Change   August 27,2021   August 28,2020   % Change                         Revenue                       Americas (1) $ 523.3     $ 631.2     (17 )%   $ 899.6     $ 965.1     (7 )% EMEA (2) 138.9     125.9     10 %   262.5     225.4     16 % Other (3) 62.6     61.7     1 %   119.3     111.1     7 % Consolidated revenue $ 724.8     $ 818.8     (11 )%   $ 1,281.4     $ 1,301.6     (2 )% Operating income (loss)                           Americas $ 44.7      $ 94.6            $ 29.7      $ 71.1          EMEA (1.6 )   (3.5 )         (7.3 )   (28.1 )       Other (4.2 )   1.1            (9.5 )   (0.5 )       Corporate (4) (5.0 )   (3.6 )         (10.8 )   (6.2 )       Consolidated operating income $ 33.9      $ 88.6            $ 2.1      $ 36.3                                      Operating income as a percentage of revenue 4.7  %   10.8  %         0.2  %   2.8  %       Revenue mix                           Americas 72.2 %   77.1 %         70.2 %   74.1 %       EMEA 19.2 %   15.4 %         20.5 %   17.3 %       Other 8.6 %   7.5 %         9.3 %   8.6 %       Business Segment Footnotes The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America, with a comprehensive portfolio of furniture, architectural and technology products marketed to corporate, government, healthcare, education and retail customers through the Steelcase, Coalesse, Smith System, AMQ and Orangebox brands. The EMEA segment serves customers in Europe, the Middle East and Africa primarily under the Steelcase, Orangebox and Coalesse brands, with a comprehensive portfolio of furniture, architectural and technology products. The Other category includes Asia Pacific and Designtex. Asia Pacific serves customers in Australia, China, India, Japan, Korea and other countries in Southeast Asia primarily under the Steelcase brand with a comprehensive portfolio of furniture, architectural and technology products. Designtex primarily sells textiles, wall coverings and surface imaging solutions specified by architects and designers directly to end-use customers through a direct sales force primarily in North America. Corporate costs include unallocated portions of shared service functions such as information technology, corporate facilities, finance, human resources, research, legal and customer aviation, plus deferred compensation expense and income or losses associated with company-owned life insurance.   QUARTER OVER QUARTER ORGANIC REVENUE GROWTH (DECLINE) BY SEGMENT Q2 2022 vs. Q2 2021                 Steelcase Inc.   Americas   EMEA   Other category                 Q2 2021 revenue $ 818.8     $ 631.2     $ 125.9   $ 61.7   Dealer acquisition 13.1     13.1     —   —   Currency translation effects* 9.8     2.1     6.3   1.4   Q2 2021 revenue, adjusted 841.7     646.4     132.2   63.1                   Q2 2022 revenue 724.8     523.3     138.9   62.6   Organic growth (decline) $ $ (116.9 )   $ (123.1 )   $ 6.7   $ (0.5 ) Organic growth (decline) %   (14 )%     (19 )%     5%     (1 )%                 * Currency translation effects represent the estimated net effect of translating Q2 2021 foreign currency revenues using the average exchange rates during Q2 2022. PROJECTED ORGANIC REVENUE GROWTH Q3 2022 vs. Q3 2021       Steelcase Inc.       Q3 2021 revenue $ 617.5 Dealer acquisition   11.8 Currency translation effects*   0.6 Q3 2021 revenue, adjusted $ 629.9       Q3 2022 revenue, projected $ 755 - 785 Organic growth $ $ 125 - 155 Organic growth %   20% - 25%       * Currency translation effects represent the estimated net effect of translating Q3 2021 foreign currency revenues using the exchange rates at the end of Q2 2022. ADJUSTED EARNINGS (LOSS) PER SHARE                   (Unaudited)   (Unaudited)   Three Months Ended   Six Months Ended   August 27,2021   August 28,2020   August 27,2021   August 28,2020 Diluted earnings (loss) per share $ 0.21     $ 0.47     $ (0.03 )   $ 0.15   Goodwill impairment charge, per share —     —     —     0.15   Restructuring costs, per share —     0.13     —     0.13   Income tax effect of restructuring costs, per share —     (0.05 )   —     (0.05 ) Adjusted earnings (loss) per share $ 0.21     $ 0.55     $ (0.03 )   $ 0.38   PROJECTED ADJUSTED EARNINGS PER SHARE               (Unaudited)     Three Months Ended   November 26, 2021(Projected)   November 27, 2020 Diluted earnings per share $ 0.07 - 0.11   $ 0.02   Restructuring costs, per share   —   0.10   Income tax effect of restructuring costs, per share   —   (0.04 ) Adjusted earnings per share $ 0.07 - 0.11   $ 0.08   Steelcase Inc.                                 (Unaudited)   (Unaudited)   Three Months Ended   Six Months Ended   August 27,2021   August 28,2020   August 27,2021   August 28,2020 Revenue $ 724.8     100.0 %   $ 818.8     100.0 %   $ 1,281.4     100.0 %   $ 1,301.6     100.0 % Cost of sales 518.0     71.5     542.3     66.3     919.9     71.8     902.4     69.4   Restructuring costs —     —     6.9     0.8     —     —     6.9    .....»»

Category: earningsSource: benzingaSep 22nd, 2021

Seagen (SGEN) Gets Early FDA Nod for Tivdak in Cervical Cancer (Revised)

The FDA grants accelerated nod to Seagen (SGEN) and Genmab's Tivdak for treating adult patients with recurrent/metastatic cervical cancer with disease progression on or after chemotherapy. Seagen Inc. SGEN, along with its Danish partner Genmab A/S GMAB, announced that the FDA has granted accelerated approval to their investigational antibody drug conjugate (“ADC”), Tivdak (tisotumab vedotin-tftv), for the treatment of recurrent/metastatic cervical cancer in adult patients whose disease progressed on or after chemotherapy.Following the FDA nod, Tivdak became the first and only approved ADC to address the given indication.We note that the approval of Tivdak comes before the scheduled Prescription Drug User Fee Act action date of Oct 10, 2021.In April 2021, the FDA accepted and granted priority review to the biologics license application (“BLA”) for Tivdak. In February 2021, the BLA was submitted to the FDA for the accelerated approval of Tivdak.The BLA was based on data from the pivotal phase II innovaTV 204 study, which evaluated Tivdak as a monotherapy for the treatment of recurrent/metastatic cervical cancer. The FDA has approved Tivdak under its Accelerated Approval Program based on tumor response and the durability of the response.However, the approval for Tivdak came with a boxed warning for ocular toxicity.Shares of Seagen have declined 9.2% so far this year against the industry’s rise of 0.9%.Image Source: Zacks Investment ResearchPer the company, over 14,480 new cases of invasive cervical cancer are expected to be diagnosed in the United States in 2021 with 4,290 women dying from the disease. Hence, the approval for Tivdak should offer a new treatment option for the given patient population.Seagen’s portfolio currently comprises of three marketed drugs, namely, Adcetris, Padcev and Tukysa, which are approved for different cancer indications. The company generated net product revenues of $649.9 million in the first six months of 2021, reflecting 48% growth year over year. The latest approval for Tivdak has now added a fourth drug to Seagen’s portfolio, which should drive growth for the company in 2021 and beyond.Zacks Rank & Stocks to ConsiderSeagen currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include Vertex Pharmaceuticals Incorporated VRTX and Spero Therapeutics, Inc. SPRO, 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.Vertex’s earnings estimates have been revised 10.2% upward for 2021 and 7.3% upward for 2022 over the past 60 days.Spero Therapeutics’ loss per share estimates have narrowed 8.2% for 2021 and 10.6% for 2022 over the past 60 days.(We are reissuing this article to correct a mistake. The original article, issued on September 21, 2021, should no longer be relied upon.) Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>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 Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Seagen Inc. (SGEN): Free Stock Analysis Report Spero Therapeutics, Inc. (SPRO): Free Stock Analysis Report Genmab AS Sponsored ADR (GMAB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

What"s in the Cards for Accenture (ACN) in Q4 Earnings?

Accenture's (ACN) fourth-quarter fiscal 2021 earnings and revenues are expected to have improved year over year. Accenture plc ACN is scheduled to report fourth-quarter fiscal 2021 results on Sep 23, before market open.Let’s check out the expectations in detail.Q4 Expectations in DetailThe Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $13.48 billion, implying 24.4% growth from the year-ago reported figure. The consensus estimate lies within the guided range of $13.1-$13.5 billion.Going by segments, the consensus estimate for Communications, Media & Technology revenues stands at $2.73 billion, indicating growth of 23.9% from the year-ago reported number. The consensus mark for Financial Services revenues is pegged at $2.52 billion, indicating year-over-year increase of 19.7%. The consensus estimate for Health & Public Service revenues stands at $2.58 billion, indicating year-over-year growth of 23.3%. The consensus estimate for Products revenues is pegged at $3.69 billion, indicating year-over-year increase of 27.3%. The consensus mark for Resources revenues stands at $1.84 billion, indicating year-over-year growth of 19.7%.The consensus mark for earnings stands at $2.19 per share, implying 28.8% growth from the year-ago reported figure. The bottom line is expected to have benefited from higher revenues and operating numbers, lower non-operating expenses and lower effective tax rate.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Accenture this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Accenture has an Earnings ESP of 0.00% and a Zacks Rank #3.Accenture PLC Price and EPS Surprise Accenture PLC price-eps-surprise | Accenture PLC QuoteStocks to ConsiderHere are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Booz Allen Hamilton BAH has an Earnings ESP of +1.98% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Fidelity National Information Services FIS has an Earnings ESP of +0.81% and a Zacks Rank #3.Trane Technologies TT has an Earnings ESP of +0.73% and a Zacks Rank #3. 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 Accenture PLC (ACN): Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report Trane Technologies plc (TT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Seagen (SGEN) Gets Early FDA Nod for Tivdak in Cervical Cancer

The FDA grants accelerated nod to Seagen (SGEN) and Genmab's Tivdak for treating adult patients with recurrent/metastatic cervical cancer with disease progression on or after chemotherapy. Seagen Inc. SGEN, along with its Danish partner Genmab A/S GMAB, announced that the FDA has granted accelerated approval to their investigational antibody drug conjugate (“ADC”), Tivdak (tisotumab vedotin-tftv), for the treatment of recurrent/metastatic cervical cancer in adult patients whose disease progressed on or after chemotherapy.Following the FDA nod, Tivdak became the first and only approved ADC to address the given indication.We note that the approval of Tivdak comes before the scheduled Prescription Drug User Fee Act saction date of Oct 10, 2021.In April 2021, the FDA accepted and granted priority review to the biologics license application (“BLA”) for Tivdak. In February 2021, the BLA was submitted to the FDA for the accelerated approval of Tivdak.The BLA was based on data from the pivotal phase II innovaTV 204 study, which evaluated Tivdak as a monotherapy for the treatment of recurrent/metastatic cervical cancer. The FDA has approved Tivdak under its Accelerated Approval Program, based on tumor response and the durability of said response.However, the approval for Tivdak came with a boxed warning for adverse reactions such as, ocular toxicity, peripheral neuropathy, hemorrhage, pneumonitis and embryo-fetal toxicity.Shares of Seagen have declined 9.2% so far this year against the industry’s rise of 0.9%.Image Source: Zacks Investment ResearchPer the company, over 14,480 new cases of invasive cervical cancer are likely to be diagnosed in the United States in 2021 with an expected 4,290 women dying from the disease. Hence, the approval for Tivdak should offer a new treatment option for the given patient population.Seagen’s portfolio currently comprises of three marketed drugs, namely, Adcetris, Padcev and Tukysa, which are approved for different cancer indications. The company generated net product revenues of $649.9 million in the first six months of 2021, reflecting 48% growth year over year. The latest approval for Tivdak has now added a fourth drug to Seagen’s portfolio, which should drive growth for the company in 2021 and beyond.Zacks Rank & Stocks to ConsiderSeagen currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include Vertex Pharmaceuticals Incorporated VRTX and Spero Therapeutics, Inc. SPRO, 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.Vertex’s earnings estimates have been revised 10.2% upward for 2021 and 7.3% upward for 2022 over the past 60 days.Spero Therapeutics’ loss per share estimates have narrowed 8.2% for 2021 and 10.6% for 2022 over the past 60 days. 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 Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Seagen Inc. (SGEN): Free Stock Analysis Report Spero Therapeutics, Inc. (SPRO): Free Stock Analysis Report Genmab AS Sponsored ADR (GMAB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Factors Setting the Tone for Carnival"s (CCL) Q3 Earnings

Carnival's (CCL) fiscal third-quarter performance is likely to have been positively influenced by the phased resumption of operations and portfolio-optimization initiatives. Carnival Corporation CCL is scheduled to report third-quarter fiscal 2021 business update on Sep 24. In the last reported quarter, the company reported a negative earnings surprise of 7.1%.How are Estimates Placed?The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at a loss of $1.44 per share, indicating an improvement of 34.3% from a loss of $2.19 reported in the year-ago quarter.For revenues, the consensus mark is pegged at nearly $713.9 million. The metric suggests an increase of 2,202.8% from the year-ago quarter’s figure.Carnival Corporation Price and EPS Surprise  Carnival Corporation price-eps-surprise | Carnival Corporation Quote Let's take a look at how things have shaped up in the quarter.Factors to NoteCarnival’s fiscal third-quarter performance is likely to have benefited from the phased resumption of operations. Given the advancement in vaccine treatments along with efforts to mitigate the spread of the virus, the company anticipates positive cash flow from the 27 ships (with guest cruise operations) in the to-be-reported quarter. Focus on cost reductions and streamlining of shoreside operations are likely to have boosted the company’s fiscal third-quarter bottom line.Despite capacity constraints, the company continues to focus on rebalancing its portfolio through ship exits, transfer and modifications to newbuilds. Initiatives toward capitalizing on pent-up demand coupled with structurally lower costs (resulting from the replacement of less-efficient vessels with more-efficient vessels) are likely to have benefited the company in the to-be-reported quarter.However, decline in occupancy levels due to social-distancing protocols coupled with restricted deployment options is likely to have negatively impacted the company’s performance in the fiscal third quarter. This along with a rise in capital expenditures in terms of restarting operations as well as progress payments on future newbuilds is likely to have dented the company’s fiscal third-quarter bottom line.What the Zacks Model UnveilsOur proven model predicts an earnings beat for Carnival this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.Earnings ESP: Carnival has an Earnings ESP +9.27%. 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.Other Stocks Poised to Beat Earnings EstimatesHere are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:Roku, Inc. ROKU has a Zacks Rank #1 and an Earnings ESP of +152%.Crocs, Inc. CROX sports a Zacks Rank #2 and has an Earnings ESP of +1.20%.Camping World Holdings Inc. CWH has a Zacks Rank #3 and an Earnings ESP of +10.55%. 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 Carnival Corporation (CCL): Free Stock Analysis Report Crocs, Inc. (CROX): Free Stock Analysis Report Camping World Holdings Inc. (CWH): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Vail Resorts (MTN) to Post Q4 Earnings: What"s in the Offing?

Vail Resorts' (MTN) fiscal fourth-quarter performance is likely to reflect strong contributions from the 2021-2022 North American ski season. Vail Resorts, Inc. MTN is scheduled to report fourth-quarter fiscal 2021 results on Sep 23, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 0.8%.How are Estimates Placed?The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at a loss of $3.57 per share, indicating an improvement of 6.5% from a loss of $3.82 reported in the year-ago quarter.Vail Resorts, Inc. Price and EPS Surprise  Vail Resorts, Inc. price-eps-surprise | Vail Resorts, Inc. Quote For revenues, the consensus mark is pegged at nearly $188.8 million. The metric suggests an increase of 144.5% from the year-ago quarter’s figure.Let's take a look at how things have shaped up in the quarter.Factors at PlayVail Resorts’ fourth-quarter fiscal 2021 performance is likely to reflect solid contributions from the 2021-2022 North American ski season. During the previous quarter’s earnings call, the company reported solid pass product sales (through Jun 1, 2021), up 50% in units and 33% in sales dollars from 2019 levels. The company expects the momentum to continue in the fiscal fourth quarter, primarily on the back of 20% price reduction in all pass products. This will likely lead to a stronger unit growth in new pass holders, higher pass renewals and increased trade up to higher-value passes. The Zacks Consensus Estimate for fiscal fourth-quarter resort revenues is pegged at $194 million, indicating growth of 152% year over year.Investments related to resources and technology (including staffing increases in call centers and self-service technology) along with infrastructure maintenance are likely to have benefitted the company in the to-be-reported quarter.However, pandemic-related capacity constraints and limitations — particularly in food and beverage and ski school — are likely to have negatively impacted the company’s ancillary lines of business in the fiscal fourth quarter. This along with a rise in wages is expected to have hurt the company’s fiscal fourth-quarter bottom line.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Vail Resorts 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 earnings. But that's not the case here.Earnings ESP: Vail Resorts has an Earnings ESP of -9.03%. 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 #4 (Sell).Stocks Poised to Beat Earnings EstimatesHere are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:Crocs, Inc. CROX, sports a Zacks Rank #1, and has an Earnings ESP of +1.20%. You can see the complete list of today’s Zacks #1 Rank stocks here.Roku, Inc. ROKU, has a Zacks Rank #1, and an Earnings ESP of +152%.Camping World Holdings Inc. CWH, has a Zacks Rank #3, and an Earnings ESP of +10.55%. 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 Crocs, Inc. (CROX): Free Stock Analysis Report Camping World Holdings Inc. (CWH): Free Stock Analysis Report Vail Resorts, Inc. (MTN): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Factors Setting the Tone for Darden"s (DRI) Q1 Earnings

Darden's (DRI) fiscal first-quarter fiscal 2022 results are likely to reflect sequential improvement in same-restaurant sales across its brands. Darden Restaurants, Inc. DRI is scheduled to report first-quarter fiscal 2022 results on Sep 23, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 11.5%.Q1 EstimatesThe Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $1.63 per share, indicating growth of a whopping 191.1%, from the prior-year quarter. The consensus mark for revenues stands at $2.24 billion, suggesting an improvement of 46.5% from the year-ago reported figure.Factors to NoteDarden’s fiscal first-quarter performance is likely to have benefited from sequential improvement in same-restaurant sales across its brands on ramped-up vaccinations and increased dining room capacity. The company continues to gain from technological enhancements with regards to online ordering, introduction of To Go capacity management and Curbside I'm Here notification.Focus on sales-building initiatives, menu modifications, and streamlining of order pick-up process and payment methods might have favored the to-be-reported quarter's top line. However, rise in hourly wage rates and marketing expenses may have weighed on margins in the fiscal first quarter.The Zacks Consensus Estimate for sales at Olive Garden, Fine Dining, and LongHorn Steakhouse is pegged at $1,120 million, $136 million and $508 million, suggesting year-over-year growth of 42.1%, 63.9% and 34.7%, respectively. The same for Other business stands at $433 million, suggesting an improvement of 55.2% from the prior-year quarter.Darden Restaurants, Inc. Price and EPS Surprise Darden Restaurants, Inc. price-eps-surprise | Darden Restaurants, Inc. QuoteWhat the Zacks Model UnveilsOur proven model predicts an earnings beat for Darden 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.The company has an Earnings ESP of +1.69% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.You can see the complete list of today’s Zacks #1 Rank stocks here.Peer ReleasesBJ's Restaurants, Inc. BJRI reported second-quarter fiscal 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Both the metrics increased year over year. The company’s adjusted earnings per share (EPS) of 26 cents beat the Zacks Consensus Estimate of 16 cents. In the prior-year quarter, the company had reported an adjusted loss of 99 cents per share. Quarterly revenues of $290.3 million outpaced the consensus mark of $285 million. The top line improved 126.7% year over year. The upside can primarily be attributed to the lifting of capacity and social-distancing restrictions, which boosted dining room capacity.McDonald's Corporation MCD reported second-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. The company reported adjusted EPS of $2.37, which outpaced the Zacks Consensus Estimate of $2.12. The bottom line soared 259.1% year over year. Quarterly revenues of $5,887.9 million beat the Zacks Consensus Estimate of $5,629 million. The figure surged 56.5% year over year. The top line benefited from an increase in global comparable sales.Starbucks Corporation SBUX reported solid third-quarter fiscal 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. The company reported adjusted EPS of $1.01, which beat the Zacks Consensus Estimate of 77 cents. In the prior-year quarter, the company had reported adjusted loss per share of 46 cents. Meanwhile, quarterly revenues of $7,496.5 million outpaced the Zacks Consensus Estimate of $7,243 million. The top line increased 77.6% from the year-ago quarter’s levels. The uptick was driven by growth in comparable store sales. 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 BJs Restaurants, Inc. (BJRI): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report McDonalds Corporation (MCD): Free Stock Analysis Report Darden Restaurants, Inc. (DRI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Taking It Easy Before Earnings

Taking It Easy Before Earnings With a fresh earnings season about to begin, stocks took a small step back from record highs on Monday as trading volume remains muted. The S&P ended three straight sessions of all time highs today, but it was only off by 0.02% to 4127.99. The Dow declined 0.16% (or about 55 points) to 33,745.40. Both of these indices established record highs last Friday. The NASDAQ slipped 0.36% (or about 50 points) to 13,850. One of the stocks going against the malaise today was graphics chip pioneer NVIDIA (NVDA), which jumped more than 5.6% after announcing its first CPU and an encouraging revenue outlook. Other big news on Monday was Microsoft (MSFT) making its second-biggest acquisition ever by picking up AI & speech technology company Nuance Communications (NUAN) for nearly $20 billion in an all-cash transaction. MSFT was only up 0.02%, but NUAN soared nearly 16%. But overall it was another quiet session. The slow trade we’ve been seeing for the past several sessions continued, though it didn’t keep the indices from securing solid performances last week. The NASDAQ jumped 3.1% in the previous five sessions, while the S&P was up 2.7% and the Dow increased 2%. Now it’s finally time to start earnings season. Investors are feeling pretty good after the recent jobs report and really appreciate Fed Chair Powell’s continued promises of super accommodation. And this feeling of optimism includes expectations for the first quarter. As Sheraz Mian said in his recent article titled “Looking Ahead to Big Banks’ Q1 Earnings”; he sees earnings growth of 20.4% for the quarter and revenue growth of 5.6%. The season, unofficially, gets started on Wednesday, when JPMorgan (JPM) goes to the plate, along with Wells Fargo (WFC) and Goldman Sachs (GS). Other major financial names will be reporting in the following two days before earnings season really picks up the pace next week. Today's Portfolio Highlights: Technology Innovators: It’s always fun when one of your portfolio positions becomes profitable, because Wall Street will suddenly pay it a lot more attention. That’s why Brian added Upwork (UPWK) on Monday. This provider of online recruitment services topped the Zacks Consensus Estimate in the past two quarters. Most importantly though, the recent beat was a penny profit that topped expectations by nearly 115%. Rising earnings estimates for this year and next made UPWK a Zacks Rank #2 (Buy). Estimates for 2021 are still at a loss, but it has narrowed significantly in the past several weeks. The editor was most encouraged by expectations for topline growth of 25% this year and more than 22% for next. Read the full write-up for a lot more on this new addition, including an overview of all positions in the portfolio. By the way, this service had a couple of the biggest performances on Monday with Criteo S.A. (CRTO, +4.5%) and Tesla (TSLA, +3.7%). Surprise Trader: Usually Dave doesn’t like buying huge household names for this portfolio, since smaller-cap stocks have more room to run. But he’s making an exception for Goldman Sachs (GS)... and it’s easy to see why. The financial powerhouse is a Zacks Rank #1 (Strong Buy) that’s part of a space (Financial – Investment Bank) in the top 2% of the Zacks Industry Rank. It has a VGM Composite Score of “A”, as well. In addition to this trifecta, GS also has a positive Earnings ESP of 3.83% for the quarterly report scheduled before the bell on Wednesday, April 14. The editor added GS on Monday with a 12.5% allocation, while also selling the rest of Rent-A-Center (RCII) for a 12.5% return in under six weeks. See the complete commentary for more. Income Investor: You might think that a pharma giant like AbbVie (ABBV) doesn’t have many opportunities for significant growth... but Maddy begs to differ. The company’s Humira arthritis drug continues finding new revenue flows, while there are promising drugs in the pipeline like Rinvoq and Skyrizi. However, the editor was most impressed with its “enticing” yield of 4.8% and a valuation that’s “too cheap to ignore”. Maddy added ABBV on Monday and sold Johnson & Johnson (JNJ) for 14.5%. JNJ is still a great name, but it doesn’t have as “juicy” of a dividend. See the full write-up for more. Options Trader: April options expire this Friday, so Kevin made several moves on Monday to give a few positions more time. First of all, the portfolio sold to close the April 100.00 Call in Yum! (YUM) for a 135.6% return. Having doubled the premium as planned, the editor bought to open an October 115.00 Call. He also sold to close April options in SS&C (SSNC) and Arthur J. Gallagher (AJG) for losses, but is giving them more opportunities by buying to open October Calls for each. Finally Lennox (LII) doesn’t have to worry about an impending expiration since it has a June Call, but the premium has doubled. Therefore, Kevin sold to close that June 310.00 Call for a 153.7% return and reinvested by buying to open a September 360.00 Call. Read the full write-up for specifics on all of today’s moves. Black Box Trader: The portfolio cashed in a huge winner as part of this week's adjustment, which included three changes in total and two double-digit profits. The stocks that were sold today included: • Abercrombie & Fitch (ANF, +54.3%) • Timken Steel (TMST, +12%) • Santander Consumer USA (SC, +8.6%) The new buys that replaced these names were: • ConocoPhillips (COP) • Dow (DOW) • ExxonMobil (XOM) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Headline Trader: "There is an extreme amount of optimism baked into this market right now, and this week we will begin to find out if the market's euphoric valuations are justified. I have no doubt that we will get mixed results between sectors with disappointments and elation being balanced through the next month of quarterly results, either confirming optimistic price action or catalyzing a correction in the seemingly stretched markets. "There is so much positivity in the equity markets today that it makes me nervous. The primary thing to focus on during this upcoming earnings season is going to be forward guidance. Many companies will likely continue to abstain from providing this because of the still-elevated levels of uncertainty in the economy. When it is provided, I suspect it will be market moving for those stocks. "Earnings beats are expected as a bare minimum, with market euphoria peaking going into Q1 earnings. Any misses could be devastating for share prices. A beat may not even be enough, with investors & traders ready to pull the sell trigger at the first sign of weakness at these stretched levels. Don't be surprised if you see some profit-pulling on earnings beats, especially from this week's financial reports, with the big banks having had a glorious rally over the past 6 months." -- Dan Laboe Until Tomorrow, 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