We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Markit (MRKT) Reeling Under Weak Results: Time to Dump It?
Read MoreHide Full Article
On Jun 28, Zacks Investment Research downgraded Markit Ltd. to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Markit has been witnessing declining earnings estimates on the back of weak first-quarter 2016 results. This securities exchange reported earnings of 26 cents, missing the Zacks Consensus Estimate by 16.13%. Earnings also declined 21% year over year primarily due to higher expenses. Shares lost about 9% over the last six weeks following the underperformance.
With respect to the surprise trend, the company missed expectations in the last four quarters by average of 9.87%.
Operating expenses increased 9.3% owing to higher personnel costs and acquisitions. EBITDA margin contracted 150 basis points attributable to lower revenues in the Processing segment, and the dilutive impact of acquisitions in 2015.
Though revenues improved, adverse forex movement lowered revenue growth by 1.8% attributable to a stronger U.S. dollar against the sterling and the euro.
Cash generated from operations decreased 18% in the first quarter leading to a decline of about 39% in cash and cash equivalents.
For the second quarter, the company expects interest expense to be about $8.3 million, in line with the first-quarter level.
The Zacks Consensus Estimate moved down 5.2% to $1.27 per share for 2016 and 11.6% to $1.30 for 2017 in the last 60 days.
Though we prefer to avoid Markit presently, stocks from the finance sector worth considering are Bats Global Markets , Markel Corp. (MKL - Free Report) and National General Holdings Corp . While Markel and National General sport a Zacks Rank #1 (Strong Buy), Bats Global Markets carries a Zacks Rank #2 (Buy).
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Markit (MRKT) Reeling Under Weak Results: Time to Dump It?
On Jun 28, Zacks Investment Research downgraded Markit Ltd. to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Markit has been witnessing declining earnings estimates on the back of weak first-quarter 2016 results. This securities exchange reported earnings of 26 cents, missing the Zacks Consensus Estimate by 16.13%. Earnings also declined 21% year over year primarily due to higher expenses. Shares lost about 9% over the last six weeks following the underperformance.
With respect to the surprise trend, the company missed expectations in the last four quarters by average of 9.87%.
Operating expenses increased 9.3% owing to higher personnel costs and acquisitions. EBITDA margin contracted 150 basis points attributable to lower revenues in the Processing segment, and the dilutive impact of acquisitions in 2015.
Though revenues improved, adverse forex movement lowered revenue growth by 1.8% attributable to a stronger U.S. dollar against the sterling and the euro.
Cash generated from operations decreased 18% in the first quarter leading to a decline of about 39% in cash and cash equivalents.
For the second quarter, the company expects interest expense to be about $8.3 million, in line with the first-quarter level.
The Zacks Consensus Estimate moved down 5.2% to $1.27 per share for 2016 and 11.6% to $1.30 for 2017 in the last 60 days.
MARKIT LTD Price and Consensus
MARKIT LTD Price and Consensus | MARKIT LTD Quote
Stocks to Consider
Though we prefer to avoid Markit presently, stocks from the finance sector worth considering are Bats Global Markets , Markel Corp. (MKL - Free Report) and National General Holdings Corp . While Markel and National General sport a Zacks Rank #1 (Strong Buy), Bats Global Markets carries a Zacks Rank #2 (Buy).
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 >>