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Micron Technology, Greenhill and Yum! Brands highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL – October 2, 2017 – Zacks Equity Research Micron Technology (Nasdaq: (MU - Free Report)  – Free Report) as the Bull of the Day, Greenhill & Co (NYSE:  – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Yum! Brands (NYSE: (YUM - Free Report)  – Free Report).

Here is a synopsis of all three stocks:

Bull of the Day:

Micron Technology (Nasdaq: (MU - Free Report) – Free Report), a Zacks Rank #1 (Strong Buy) operates through four segments. Its business segments include Computer and Networking Business Unit (CNBU), which includes memory products sold into computers, networking, graphics and cloud server markets; Mobile Business Unit (MBU), which includes memory products sold into smartphone, tablet and other mobile-device markets; Storage Business Unit (SBU), which includes memory products sold into enterprise, client, cloud and removable storage markets, and SBU also includes products sold to Intel through its Intel/Micron Flash Technology (IMFT) joint venture; and Embedded Business Unit (EBU), which includes memory products sold into automotive, industrial, connected home and consumer electronics markets.

Recent Strong Earnings Report

On September 26th, MU reported Q4 17 results which easily beat both the Zacks consensus earnings and revenue estimates. In the earnings report, the company produced revenues that showed a +91% increase compared to Q4 16.  On a sequential basis, revenues were up +10% with NAND sales volumes up +3%, and DRAM sales volumes improving by +5%.  Further, both DRAM and NAND average selling prices for the quarter increased by 8% and 5% respectively.  Moreover, gross margins improved by +3.8% to +50.7 when compared to Q3 17 results.  

Future Outlook

During the earnings call, management gave Q1 18 sales guidance of $6.1-6.5 billion which was ahead of Zacks consensus estimate of $6.04 billion.  Further, management now expects non-GAAP earnings per share in the range of $2.09-2.23, ahead of the Zacks consensus estimate of $1.83 per share.  

Management’s Take

According to Sanjay Mehrotra, President and CEO, “Micron delivered exceptional fourth quarter and fiscal year results, reflecting solid execution and robust demand for our memory and storage solutions. We expect healthy industry fundamentals to continue into 2018, supported by increasingly diverse end markets and applications. We believe our focus on accelerating the deployment of advanced technologies and solutions will address our customers' evolving requirements, further strengthen our financial foundation, and enhance shareholder value.”

Bear of the Day:

Greenhill & Co (NYSE: – Free Report), a Zacks Rank #5 (Strong Sell), is a leading independent investment bank that provides financial advice on significant mergers, acquisitions and restructurings; assists private funds in raising capital from investors; and manages merchant banking funds. It acts for clients located throughout the world from its offices in New York, London, Frankfurt, Toronto, Dallas and San Francisco.

Recent Earnings

Due to weakness in the M&A market, and a decline in total deal announcements GHL missed the Zacks consensus earnings estimate for Q2 17.  Specifically, total global deal volumes were down -12% even when compared to a soft market last year.  Initial expectations were that deal volumes would pick up in the second half of 2017, but this optimism has been pushed back until the first half of 2018.

GHL saw total quarterly revenues fall by -26%, and total year to date revenues decline by -21%.  Management stated that quarterly revenues were down due to “fewer large transaction completion fees, and that the fall in year to date revenues were due to reduced merger and acquisition revenues outside of the U.S.

Management’s Take

According to Robert F. Greenhill, Chairman, “While our level of engagement with clients globally has remained high, and we have seen a meaningful increase in year to date revenue from U.S. clients, our pace of deal announcements globally has been slower than expected, resulting in reduced total revenue, higher cost ratios and lower profitability. Our results are, in part, a function of softness in the M&A market, where global deal volume is currently on pace to be down 12% compared to last year, even though last year itself was a relatively quiet year in which the global advisory fee pool declined slightly.

 

“A second contributing factor to our results is our historic mix of business, with a heavy international component, a focus on larger transactions and a smaller focus on restructuring than our closest peers. Firms more weighted toward the domestic market, smaller M&A transactions and restructuring have done better in the recent environment, though we remain confident that our strategy leads to strong profitability and cash flow over the course of cycles. Lastly, our results are a function of a transaction-oriented business where transaction timing is out of our control, such that last year we hugely outperformed our competitors with a 29% increase in advisory revenue, and this year we have essentially seen a reversal of part of that relative gain.”

Additional content:

Taco Bell and Forever 21 to Launch New Fashion Collection

As New York and Paris Fashion Weeks have showcased the best fashion trends to look forward to next spring and summer, one of the most, ahem, interesting collections debuted in Los Angeles: fast fashion giant Forever 21 and fast food leader Taco Bell, owned by Yum! Brands (NYSE: YUMFree Report), are collaborating on a limited-edition fashion line.

Set to launch in the U.S. on October 11, the Forever 21 x Taco Bell collection will demonstrate a "unique spin on traditional fashion labelling,” and the line will include tops, bodysuits, and cropped hoodies for ladies, and sweatshirts, hoodies, and anorak jackets for guys. The clothes will feature some of Taco Bell’s iconic graphics, as well as pops of color inspired by both brands.

Forever 21 x Taco Bell will be previewed the night before its launch in downtown LA’s fashion district; curious shoppers can also follow the hashtag #F21xTacoBell on social media. This is true fast fashion form, when design and production are expedited to bring emerging trends to the retail market as quickly—and cheaply—as possible. Other fast fashion houses include H&M and Zara.

“Food, like fashion, is driven by trends and culture,” said Linda Chang, Forever 21 Vice President of Merchandising in a statement. “Merging fashion and food in this collection gives our customers a new way to experience both our brands.”

Additionally, the collection will be available internationally through Forever 21’s website.

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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.

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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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