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Wynn Resorts, Imax, Johnson & Johnson, Ford and Starbucks as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – January 22, 2018 – Zacks Equity Research highlights Wynn Resorts Ltd. (WYNN - Free Report) as the Bull of the Day and Imax Corporation (IMAX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onJohnson & Johnson, Inc. (JNJ - Free Report) , Ford Motor Company (F - Free Report) and Starbucks Corporation (SBUX - Free Report) .
A huge name in the gaming industry, Wynn Resorts Ltd. owns and operates Wynn Las Vegas and Encore in Las Vegas, Nevada, as well as Wynn Macau and the Wynn Palace located in the Special Administrative Region of Macau in the People's Republic of China.
The company is currently making headway on a new gaming resort, Wynn Boston Harbor, in Everett, MA, located adjacent to Boston along the Mystic River.
Boasting a hotel, a waterfront boardwalk, meeting and convention space, casino space, a spa, retail offerings, and food and beverage outlets, Wynn Boston Harbor is expected to open in mid-2019.
Coming off a hot 2017 and strong growth in the Macau gaming market, this Zacks Rank #1 (Strong Buy) stock’s run might not yet be over.
What’s Going on in Macau?
In 2017, Macau’s overall gaming revenue jumped 19.1% to $33 billion, and has helped lift casino stocks like Wynn.
In particular, the company was significantly helped from the growth seen in Macau’s VIP gaming market. According to the Macau Gaming Inspection and Coordination Bureau, VIP play was up 26.7%, while mass-market play was only up 9.6%.
Wynn, of course, is known for catering to high-end gamblers—when the VIP market took a hit a few years, the company severely felt the impact—and this boost is nothing but a good thing for its stock performance.
It’s also important to note that Wynn has benefitted from Wynn Palace, located in the Cotai region of Macau, operating for a full year.
Imax Corporationis an entertainment technology company that focuses on film and digital imaging technologies like giant-screen images, 3D presentations, post-production, and digital projection.
The company designs and manufactures projection and sound systems for giant-screen theaters, and produces and distributes films for these theaters as well.
Imax has also designed a virtual reality headset and motion-tracking technology that allows users to explore virtual space more, partnering with content and gaming producers like Star Wars and John Wick.
However, the Zacks Rank #5 (Strong Sell) stock has struggled to show consistent growth over the past few years.
Third Quarter Results
Last quarter actually wasn’t too bad for Imax.
Adjusted earnings of 8 cents per share beat the Zacks Consensus of 2 cents per share. Total revenues were $99 million, which also beat our consensus estimate.
Global box office during the quarter was Imax’s highest-grossing Q3 ever, growing 17% to $219 million.
Additionally, its domestic box office increased 18% year-over-year compared to the overall industry box office decline of 14%.
Imax also installed 51 theaters, 49 of which were for new locations and two were upgrades.
Bearish Outlook
Despite this strong quarter, analysts have become very bearish on the company, and its earnings growth trajectory is on the erratic side.
For the current quarter, Zacks expects IMAX’s earnings to grow about 63%, but five analysts have cut their estimates in the last 30 days. The consensus has fallen four cents, from $0.40 to $0.36 per share.
Earnings are expected to fall nearly 14% for fiscal 2017, and five analysts have revised their estimates downward in the last 30 days as well.
Even though fiscal 2018 could be a turnaround moment for Imax, as the company is anticipating over 56% earnings growth, the current consensus has dipped from $1.07 to $0.98 in the last 30 days. Here again, five analysts have slashed their estimates during this time period.
Additional content:
Upcoming Consumer Earnings Reports to Watch: JNJ, F, SBUX
Fourth-quarter earnings season is finally underway, and investors are already getting excited about the upcoming reports from market-moving tech companies. Nevertheless, we will see many major reports from noteworthy consumer-facing brands in other industries, so investors will want to be paying attention to all the news.
In the coming weeks, we will see reports from the world’s biggest and most relevant companies, meaning that investors need to be prepared for the ensuing movement that is likely to occur throughout the market.
According to the latest report from Sheraz Mian, the head of the Zacks Equity Research department and an acknowledged earnings expert, earnings growth is expected to be positive for 13 of the 16 Zacks sectors—and growth rates are projected to hit the double digits for our Energy, Technology, Construction, Industrial Products, Basic Materials, and Automotive groups.
Investors should remember that they can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
Today, we’ve made that task even easier for you. Using the Earnings Calendar, we looked ahead to next week and selected some of the biggest reports to watch. Make sure to keep an eye on these companies as they prepare to report during the week of January 22.
Personal healthcare and pharmaceuticals behemoth Johnson & Johnson is scheduled to release its latest quarterly results before the market opens on January 23. The company basically never missed earnings estimates, and shares have gained a respectable 29% over the past year. JNJ is currently sporting a Zacks Rank #3 (Hold) as it approaches its report date.
Based on our latest consensus estimates, we expect to see Johnson & Johnson report earnings of $1.72 per share and revenues of $20.22 billion. These results would represent year-over-year growth of 9% and 12%, respectively. We believe that new products in all segments, label expansion of drugs like Imbruvica and Darzalex, and contributions from recent acquisitions should support the company's top line.
Automotive manufacturing giant Ford is slated to announce its latest quarterly earnings results after the market closes on January 24. The company has met or surpassed estimates in three consecutive quarters, but the stock has dropped in the wake of management's warning that 2018 profits will be softer than expected. Still, Ford is currently a Zacks Rank #2 (Buy), primarily because of favorable near-term outlook.
Based on our current consensus estimates, Ford is expected to post earnings of $0.44 per share and revenues of $37.15 billion, which would mark growth of 47% and 3%, respectively, from the year-ago period. Nevertheless, an update on the company's forward-looking guidance will likely be what drives the stock in the wake of the report.
Coffee king Starbucks is scheduled to release its latest quarterly earnings report after the closing bell on January 25. Starbucks is a pretty consistent earnings performer, but year-over-year comparisons have tightened and the stock has gained just 6% over the past 52 weeks. SBUX is sporting a Zacks Rank #3 (Hold) as we approach the release of its report.
According to our latest consensus estimates, Starbucks is projected to post earnings of $0.57 per share and revenues of $6.15 billion. These results would represent year-over-year growth of 10% and 7%, respectively. Digital initiatives like mobile pay, delivery services, and third-party loyalty partnerships can stimulate stronger sales trends in the Americas, while China will remain a key growth market for the company.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
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 more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% 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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Wynn Resorts, Imax, Johnson & Johnson, Ford and Starbucks as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 22, 2018 – Zacks Equity Research highlights Wynn Resorts Ltd. (WYNN - Free Report) as the Bull of the Day and Imax Corporation (IMAX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onJohnson & Johnson, Inc. (JNJ - Free Report) , Ford Motor Company (F - Free Report) and Starbucks Corporation (SBUX - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
A huge name in the gaming industry, Wynn Resorts Ltd. owns and operates Wynn Las Vegas and Encore in Las Vegas, Nevada, as well as Wynn Macau and the Wynn Palace located in the Special Administrative Region of Macau in the People's Republic of China.
The company is currently making headway on a new gaming resort, Wynn Boston Harbor, in Everett, MA, located adjacent to Boston along the Mystic River.
Boasting a hotel, a waterfront boardwalk, meeting and convention space, casino space, a spa, retail offerings, and food and beverage outlets, Wynn Boston Harbor is expected to open in mid-2019.
Coming off a hot 2017 and strong growth in the Macau gaming market, this Zacks Rank #1 (Strong Buy) stock’s run might not yet be over.
What’s Going on in Macau?
In 2017, Macau’s overall gaming revenue jumped 19.1% to $33 billion, and has helped lift casino stocks like Wynn.
In particular, the company was significantly helped from the growth seen in Macau’s VIP gaming market. According to the Macau Gaming Inspection and Coordination Bureau, VIP play was up 26.7%, while mass-market play was only up 9.6%.
Wynn, of course, is known for catering to high-end gamblers—when the VIP market took a hit a few years, the company severely felt the impact—and this boost is nothing but a good thing for its stock performance.
It’s also important to note that Wynn has benefitted from Wynn Palace, located in the Cotai region of Macau, operating for a full year.
Bear of the Day:
Imax Corporationis an entertainment technology company that focuses on film and digital imaging technologies like giant-screen images, 3D presentations, post-production, and digital projection.
The company designs and manufactures projection and sound systems for giant-screen theaters, and produces and distributes films for these theaters as well.
Imax has also designed a virtual reality headset and motion-tracking technology that allows users to explore virtual space more, partnering with content and gaming producers like Star Wars and John Wick.
However, the Zacks Rank #5 (Strong Sell) stock has struggled to show consistent growth over the past few years.
Third Quarter Results
Last quarter actually wasn’t too bad for Imax.
Adjusted earnings of 8 cents per share beat the Zacks Consensus of 2 cents per share. Total revenues were $99 million, which also beat our consensus estimate.
Global box office during the quarter was Imax’s highest-grossing Q3 ever, growing 17% to $219 million.
Additionally, its domestic box office increased 18% year-over-year compared to the overall industry box office decline of 14%.
Imax also installed 51 theaters, 49 of which were for new locations and two were upgrades.
Bearish Outlook
Despite this strong quarter, analysts have become very bearish on the company, and its earnings growth trajectory is on the erratic side.
For the current quarter, Zacks expects IMAX’s earnings to grow about 63%, but five analysts have cut their estimates in the last 30 days. The consensus has fallen four cents, from $0.40 to $0.36 per share.
Earnings are expected to fall nearly 14% for fiscal 2017, and five analysts have revised their estimates downward in the last 30 days as well.
Even though fiscal 2018 could be a turnaround moment for Imax, as the company is anticipating over 56% earnings growth, the current consensus has dipped from $1.07 to $0.98 in the last 30 days. Here again, five analysts have slashed their estimates during this time period.
Additional content:
Upcoming Consumer Earnings Reports to Watch: JNJ, F, SBUX
Fourth-quarter earnings season is finally underway, and investors are already getting excited about the upcoming reports from market-moving tech companies. Nevertheless, we will see many major reports from noteworthy consumer-facing brands in other industries, so investors will want to be paying attention to all the news.
In the coming weeks, we will see reports from the world’s biggest and most relevant companies, meaning that investors need to be prepared for the ensuing movement that is likely to occur throughout the market.
According to the latest report from Sheraz Mian, the head of the Zacks Equity Research department and an acknowledged earnings expert, earnings growth is expected to be positive for 13 of the 16 Zacks sectors—and growth rates are projected to hit the double digits for our Energy, Technology, Construction, Industrial Products, Basic Materials, and Automotive groups.
Investors should remember that they can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
Today, we’ve made that task even easier for you. Using the Earnings Calendar, we looked ahead to next week and selected some of the biggest reports to watch. Make sure to keep an eye on these companies as they prepare to report during the week of January 22.
1. Johnson & Johnson, Inc. (JNJ - Free Report)
Personal healthcare and pharmaceuticals behemoth Johnson & Johnson is scheduled to release its latest quarterly results before the market opens on January 23. The company basically never missed earnings estimates, and shares have gained a respectable 29% over the past year. JNJ is currently sporting a Zacks Rank #3 (Hold) as it approaches its report date.
Based on our latest consensus estimates, we expect to see Johnson & Johnson report earnings of $1.72 per share and revenues of $20.22 billion. These results would represent year-over-year growth of 9% and 12%, respectively. We believe that new products in all segments, label expansion of drugs like Imbruvica and Darzalex, and contributions from recent acquisitions should support the company's top line.
2. Ford Motor Company (F - Free Report)
Automotive manufacturing giant Ford is slated to announce its latest quarterly earnings results after the market closes on January 24. The company has met or surpassed estimates in three consecutive quarters, but the stock has dropped in the wake of management's warning that 2018 profits will be softer than expected. Still, Ford is currently a Zacks Rank #2 (Buy), primarily because of favorable near-term outlook.
Based on our current consensus estimates, Ford is expected to post earnings of $0.44 per share and revenues of $37.15 billion, which would mark growth of 47% and 3%, respectively, from the year-ago period. Nevertheless, an update on the company's forward-looking guidance will likely be what drives the stock in the wake of the report.
3. Starbucks Corporation (SBUX - Free Report)
Coffee king Starbucks is scheduled to release its latest quarterly earnings report after the closing bell on January 25. Starbucks is a pretty consistent earnings performer, but year-over-year comparisons have tightened and the stock has gained just 6% over the past 52 weeks. SBUX is sporting a Zacks Rank #3 (Hold) as we approach the release of its report.
According to our latest consensus estimates, Starbucks is projected to post earnings of $0.57 per share and revenues of $6.15 billion. These results would represent year-over-year growth of 10% and 7%, respectively. Digital initiatives like mobile pay, delivery services, and third-party loyalty partnerships can stimulate stronger sales trends in the Americas, while China will remain a key growth market for the company.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
See This Ticker Free >>
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 more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
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Zacks Investment Research
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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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.