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NVIDIA Corporation, Mattel and Urban Outfitters highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – August 16, 2017 – Zacks Equity Research highlights NVIDIA Corporation (NASDAQ:NVDA – Free Report) as the Bull of the Day Mattel (NASDAQ:MAT – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Urban Outfitters Inc. (NASDAQ: (URBN - Free Report) – Free Report).
Founded in 1993 and headquartered in Santa Clara, CA, NVIDIA Corporation (NASDAQ:(NVDA - Free Report) – Free Report) is a worldwide leader in visual computing technologies and the inventor of the graphic processing unit (GPU).
The company has successfully transformed from graphics chip to a GPU computing company and benefits from four multi-billion dollar GPU computing growth drivers —gaming, virtual reality (VR), artificial intelligence (AI), and self-driving cars.
Excellent Second Quarter Results, Upgraded Guidance
The company reported excellent results, beating on both top and bottom lines and also raising guidance. Record revenues of $2.23 billion were up 56% from a year ago and also ahead of the management’s guidance.
GAAP earnings for the quarter were $0.92 per share up 124% from $0.41 a year ago and up 16% from $0.79 in the previous quarter.
"Adoption of NVIDIA GPU computing is accelerating, driving growth across our businesses," said the CEO. "Datacenter revenue increased more than two and a half times. A growing number of car and robot-taxi companies are choosing our DRIVE PX self-driving computing platform. And in Gaming, increasingly the world's most popular form of entertainment, we power the fastest growing platforms - GeForce and Nintendo Switch.
"Nearly every industry and company is awakening to the power of AI. This is the era of AI, and the NVIDIA GPU has become its brain. We have incredible opportunities ahead of us," he said.
Despite impressive beat and raise, shares fell nearly 7% in but more than recovered all those losses on Monday as many analysts issues bullish notes on the company.
Estimates Soaring
After impressive results and upgraded guidance, Zacks Consensus Estimates for the current and next year have surged to $3.56 per share and $3.88 per share from $3.08 and $3.47 respectively.
The company has an excellent record of beating estimates, having missed only once in the past 20 quarters
Bear:
Headquartered in El Segundo, CA Mattel (NASDAQ:(MAT - Free Report) – Free Report) is one of the world’s largest manufacturers of toys. Their portfolio includes Barbie, Hot Wheels, Monster High, American Girl, Thomas & Friends and Fisher-Price brands. They employ approximately 30,000 people in 40 countries and sell products in more than 150 countries.
Weak Results Lead to Falling Estimates
Mattel’s adjusted loss of 14 cents per share was worse than the Zacks Consensus Estimate of a loss of 8 cents. Also, revenues of $974.5 million while up 2% year over year missed our estimate.
While worldwide gross sales were up 1%, North American gross sales declined 2%. Worldwide sales for Mattel Girls & Boys Brands were up 10%, but Fischer-Price sales were down 3%, and American Girl doll sales declined 6%.
Estimates have also plunged after the report. Zacks Consensus Estimates for the current and the next year have fallen to $0.79 per share and $1.00 per share from $0.95 and $ 1.16 respectively before the results. The company has missed in three out of last four quarters, with an average negative quarterly surprise exceeding 47%.
Shares fell after the report and are now down over 39% year-to-date.
In June, the company announced that it is slashing its quarterly dividend to $0.15 per share from $0.38 per share earlier.
The Bottom Line
Mattel has seen weak sales for the past many quarters as they struggle with kids’ rising preference for videogames and smartphone applications.
Additional content:
Urban Outfitters Surges on Big Earnings Revenue Beats
Urban Outfitters Inc. (NASDAQ: (URBN - Free Report) – Free Report) just released its second quarter fiscal 2018 financial results, posting earnings of 44 cents per share and revenues of $873 million. Currently, URBN is a #4 (Sell) on the Zacks Rank, and is surging 13.8% to $19.15 per share in trading shortly after its earnings report was released.
Urban Outfitters:
Beat earnings estimates.The company reported earnings of 44 cents per share, soaring past the Zacks Consensus Estimate of 37 cents per share. Net income was $50 million for the quarter.
Beat revenues estimates.The company saw revenues of $873 million, topping our consensus estimate of $863.87 million but declining 2% year-over-year.
Comparable Retail segment net sales, which includes Urban’s comparable direct-to-consumer channel, decreased 4.9% during Q2. Breaking it down by division, comps increased 2.9% at Free People, but decreased 4% at Anthropologie and 7.9% at Urban Outfitters.
The company said the decline in comps was due to negative retail store sales, which was partially offset by continued sales growth in our direct-to-consumer channel.
"While we are disappointed in our second quarter performance, we have a number of initiatives underway including: speed to customer, international growth, wholesale expansion and digital investments,” said Richard A. Hayne, Chief Executive Officer. “We believe these initiatives combined with encouraging fashion apparel trends could lead to improved topline performance in future quarters,” finished Mr. Hayne.
Urban Outfitters, Inc. operates two business segments consisting of a lifestyle-oriented general merchandise retailing segment and a wholesale apparel business. The retailing segment operates through retail stores and direct response, including a catalog and two web sites. The company's wholesale business designs and markets young women's casual wear which it provides to the company's retail operations and sells to specialty retailers worldwide.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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NVIDIA Corporation, Mattel and Urban Outfitters highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 16, 2017 – Zacks Equity Research highlights NVIDIA Corporation (NASDAQ:NVDA – Free Report) as the Bull of the Day Mattel (NASDAQ:MAT – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Urban Outfitters Inc. (NASDAQ: (URBN - Free Report) – Free Report).
Here is a synopsis of all three stocks:
Bull of the Day:
Founded in 1993 and headquartered in Santa Clara, CA, NVIDIA Corporation (NASDAQ:(NVDA - Free Report) – Free Report) is a worldwide leader in visual computing technologies and the inventor of the graphic processing unit (GPU).
The company has successfully transformed from graphics chip to a GPU computing company and benefits from four multi-billion dollar GPU computing growth drivers —gaming, virtual reality (VR), artificial intelligence (AI), and self-driving cars.
Excellent Second Quarter Results, Upgraded Guidance
The company reported excellent results, beating on both top and bottom lines and also raising guidance. Record revenues of $2.23 billion were up 56% from a year ago and also ahead of the management’s guidance.
GAAP earnings for the quarter were $0.92 per share up 124% from $0.41 a year ago and up 16% from $0.79 in the previous quarter.
"Adoption of NVIDIA GPU computing is accelerating, driving growth across our businesses," said the CEO. "Datacenter revenue increased more than two and a half times. A growing number of car and robot-taxi companies are choosing our DRIVE PX self-driving computing platform. And in Gaming, increasingly the world's most popular form of entertainment, we power the fastest growing platforms - GeForce and Nintendo Switch.
"Nearly every industry and company is awakening to the power of AI. This is the era of AI, and the NVIDIA GPU has become its brain. We have incredible opportunities ahead of us," he said.
Despite impressive beat and raise, shares fell nearly 7% in but more than recovered all those losses on Monday as many analysts issues bullish notes on the company.
Estimates Soaring
After impressive results and upgraded guidance, Zacks Consensus Estimates for the current and next year have surged to $3.56 per share and $3.88 per share from $3.08 and $3.47 respectively.
The company has an excellent record of beating estimates, having missed only once in the past 20 quarters
Bear:
Headquartered in El Segundo, CA Mattel (NASDAQ:(MAT - Free Report) – Free Report) is one of the world’s largest manufacturers of toys. Their portfolio includes Barbie, Hot Wheels, Monster High, American Girl, Thomas & Friends and Fisher-Price brands. They employ approximately 30,000 people in 40 countries and sell products in more than 150 countries.
Weak Results Lead to Falling Estimates
Mattel’s adjusted loss of 14 cents per share was worse than the Zacks Consensus Estimate of a loss of 8 cents. Also, revenues of $974.5 million while up 2% year over year missed our estimate.
While worldwide gross sales were up 1%, North American gross sales declined 2%. Worldwide sales for Mattel Girls & Boys Brands were up 10%, but Fischer-Price sales were down 3%, and American Girl doll sales declined 6%.
Estimates have also plunged after the report. Zacks Consensus Estimates for the current and the next year have fallen to $0.79 per share and $1.00 per share from $0.95 and $ 1.16 respectively before the results. The company has missed in three out of last four quarters, with an average negative quarterly surprise exceeding 47%.
Shares fell after the report and are now down over 39% year-to-date.
In June, the company announced that it is slashing its quarterly dividend to $0.15 per share from $0.38 per share earlier.
The Bottom Line
Mattel has seen weak sales for the past many quarters as they struggle with kids’ rising preference for videogames and smartphone applications.
Additional content:
Urban Outfitters Surges on Big Earnings Revenue Beats
Urban Outfitters Inc. (NASDAQ: (URBN - Free Report) – Free Report) just released its second quarter fiscal 2018 financial results, posting earnings of 44 cents per share and revenues of $873 million. Currently, URBN is a #4 (Sell) on the Zacks Rank, and is surging 13.8% to $19.15 per share in trading shortly after its earnings report was released.
Urban Outfitters:
Beat earnings estimates.The company reported earnings of 44 cents per share, soaring past the Zacks Consensus Estimate of 37 cents per share. Net income was $50 million for the quarter.
Beat revenues estimates.The company saw revenues of $873 million, topping our consensus estimate of $863.87 million but declining 2% year-over-year.
Comparable Retail segment net sales, which includes Urban’s comparable direct-to-consumer channel, decreased 4.9% during Q2. Breaking it down by division, comps increased 2.9% at Free People, but decreased 4% at Anthropologie and 7.9% at Urban Outfitters.
The company said the decline in comps was due to negative retail store sales, which was partially offset by continued sales growth in our direct-to-consumer channel.
"While we are disappointed in our second quarter performance, we have a number of initiatives underway including: speed to customer, international growth, wholesale expansion and digital investments,” said Richard A. Hayne, Chief Executive Officer. “We believe these initiatives combined with encouraging fashion apparel trends could lead to improved topline performance in future quarters,” finished Mr. Hayne.
Urban Outfitters, Inc. operates two business segments consisting of a lifestyle-oriented general merchandise retailing segment and a wholesale apparel business. The retailing segment operates through retail stores and direct response, including a catalog and two web sites. The company's wholesale business designs and markets young women's casual wear which it provides to the company's retail operations and sells to specialty retailers worldwide.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.