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Air Products, Core-Mark Holding, Amazon.com, Edwards Lifesciences and Canada Goose as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – February 5, 2018 – Zacks Equity Research highlights Air Products (APD - Free Report) as the Bull of the Day and Core-Mark Holding as the Bear of the Day. In addition, Zacks Equity Research provides analysis onAmazon.com, Inc. (AMZN - Free Report) , Edwards Lifesciences Corporation (EW - Free Report) and Canada Goose Holdings Inc. (GOOS - Free Report) .
Air Products, a Zacks Rank #2 (Buy), is a world-leading Industrial Gases company. The Company's core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage.
Air Products is also the world's leading supplier of liquefied natural gas process technology and equipment. The Company is the world's largest supplier of hydrogen and has built leading positions in growth markets such as helium and natural gas liquefaction.
Earnings Data
Air Products recently reported earnings results where they easily beat both the Zacks consensus earnings and revenue estimates. The report showed that revenues improved by +17.7%, volumes were up +13%, and pricing increased by +2%. All three gas segments saw increases in total volume.
On a segment basis, sales improved in each segment; Americas +5% due to higher volumes, and strong hydrogen demand. EMEA +29%, with volumes rising by +17%, mostly due to its new hydrogen plant in India. Asia +47% due to new plants, strong merchant business, and increased pricing.
Air Products also has the best balance sheet in the industry which has enabled them to make several recent key acquisitions in China, India, and Korea.
Management Increases Guidance
Due to the strong earnings report, and high expectations for 2018, management issued upside guidance for Q2 18, and increased FY EPS guidance as well. Now APD expects Q2 18 EPS in a range of $1.65-1.70 per share, just above the Zacks consensus estimate of $1.67. For FY 18, management expects EPS to be in a range of $7.15-7.35 per share, well above the previous Zacks consensus estimate of $7.00.
Management’s Take
According to Seifi Ghasemi, Chairman, President, and CEO, “The committed and motivated team at Air Products delivered another excellent quarter of safety and financial results. Adjusted EPS of $1.79 was another quarterly record. This is also the 15th consecutive quarter that we have reported adjusted EPS growth. In addition, we are winning new projects and delivering on our growth strategy. We generated a significant amount of investable cash and announced a 16 percent increase to our quarterly dividend, making our annual dividend $4.40 per share.”
Core-Mark Holding, a Zacks Rank #5 (Strong Sell), .is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. Core-Mark Holding Company, Inc.is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. Core-Mark offers a full range of products, marketing programs, and technology solutions. Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry convenience products.
Recent Earnings Data
The company reported Q3 earnings data in early November where they missed the Zacks consensus earnings estimate for the fifth consecutive quarter, but beat on the top line. The earnings data was mostly positive where they saw year over year gains in Net sales +7.9%, Non-cigarette sales +18.8%, cigarette sales +3.6%, Candy sales +50%, and Food category +15.4%. The company also saw gross profits improve by +11.7%, and operating expenses fell by 11.4%.
But on January 5th, the company preannounced Q4 earnings data, and lowered expectations for FY 18. Management stated that fourth quarter EBITDA would be $41 million, down from the $56 million expected in November. The decline is attributed to cigarette carton sale slow down, cost overruns, and weak retail sales. Another factor in the decreased guidance was the loss of both Kroger, and Circle K customers (a loss of about 1,700 stores). To make matters worse, management also lowered FY 18 EBITDA guidance below the consensus estimate of $176 million to $162 million, a $14 million decline. This decreased guidance could become worse as the company is factoring in both the retail and cigarette segments to move back to a breakeven point. So this guidance could be viewed as high, with a potential of falling even further during the year.
Additional content:
Markets Down, but These Stocks Surged to All-Time Highs
Friday has been a rough day on Wall Street, with several major indexes—including the Dow, Nasdaq, and S&P 500—hovering deep in the red during early afternoon trading hours.
Through about 2 p.m. EST, the S&P 500 was down about 1.45%, while the Nasdaq Composite was about 1.22% lower. Meanwhile, the Dow Jones Industrial Average was down more than 400 points, or roughly 1.74%—putting the popular indicator on track for its worst week in two years.
Friday’s slump comes on the back of the Bureau of Labor Statistics’ first jobs report of 2018. According to the latest data, the U.S. added about 200,000 jobs in January, outpacing estimates that called for growth of 180,000 jobs. The report also noted that wages rose 2.9% on an annualized basis.
The new jobs info sent interest rates higher on Friday morning. The benchmark 10-year yield moved to 2.85%, a four-year high. The 30-year yield touched its highest level since March.
But it has not been all bad news today. According to BarCharts.com, at least 44 stocks surged to new all-time highs, with several positive moves stemming from strong earnings results.
Among these companies was Amazon.com, Inc. Shares of the e-commerce king gained as much as 5% to touch a new intraday peak of $1,498.00 in morning trading after the company posted robust earnings and revenue growth on Thursday.
Amazon surpassed analyst estimates on both the top and bottom line. The Jeff Bezos-led company notched revenue growth of 38%, while operating income soared 69%. Amazon said that sales in its budding Web Services division reached $5.11 billion in the quarter.
Another company that witnessed a strong post-earnings move was Edwards Lifesciences Corporation. Edwards posted its fourth-quarter 2017 report on Thursday afternoon, reporting adjusted earnings of $0.97 per share and revenues of $888.5 million. Both of these results beat the respective Zacks Consensus Estimates.
Edwards said that adjusted earnings grew 25.3% and total revenues expanded 15.7% on the back of strong sales growth in the company’s transcatheter heart valves business. Management also acknowledged strong performance from the Surgical Heart Valve Therapy and Critical Care product lines.
Shares of Edwards Lifesciences moved as much as 6% higher to touch a new all-time high of $138.48 in morning trading hours.
Finally, investors should note that popular recent IPO Canada Goose Holdings Inc. surged to a new peak of $37.10 per share in early afternoon trading. We will not see Canada Goose’s latest results until next week, but Wall Street is clearly getting excited about the trendy winter apparel maker.
Based on our current consensus estimates, we expect Canada Goose to report earnings of $0.36 per share and revenues of $188 million. The company said yesterday that it will release its latest results before the bell opens on Feb. 8.
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth.
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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Air Products, Core-Mark Holding, Amazon.com, Edwards Lifesciences and Canada Goose as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – February 5, 2018 – Zacks Equity Research highlights Air Products (APD - Free Report) as the Bull of the Day and Core-Mark Holding as the Bear of the Day. In addition, Zacks Equity Research provides analysis onAmazon.com, Inc. (AMZN - Free Report) , Edwards Lifesciences Corporation (EW - Free Report) and Canada Goose Holdings Inc. (GOOS - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Air Products, a Zacks Rank #2 (Buy), is a world-leading Industrial Gases company. The Company's core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage.
Air Products is also the world's leading supplier of liquefied natural gas process technology and equipment. The Company is the world's largest supplier of hydrogen and has built leading positions in growth markets such as helium and natural gas liquefaction.
Earnings Data
Air Products recently reported earnings results where they easily beat both the Zacks consensus earnings and revenue estimates. The report showed that revenues improved by +17.7%, volumes were up +13%, and pricing increased by +2%. All three gas segments saw increases in total volume.
On a segment basis, sales improved in each segment; Americas +5% due to higher volumes, and strong hydrogen demand. EMEA +29%, with volumes rising by +17%, mostly due to its new hydrogen plant in India. Asia +47% due to new plants, strong merchant business, and increased pricing.
Air Products also has the best balance sheet in the industry which has enabled them to make several recent key acquisitions in China, India, and Korea.
Management Increases Guidance
Due to the strong earnings report, and high expectations for 2018, management issued upside guidance for Q2 18, and increased FY EPS guidance as well. Now APD expects Q2 18 EPS in a range of $1.65-1.70 per share, just above the Zacks consensus estimate of $1.67. For FY 18, management expects EPS to be in a range of $7.15-7.35 per share, well above the previous Zacks consensus estimate of $7.00.
Management’s Take
According to Seifi Ghasemi, Chairman, President, and CEO, “The committed and motivated team at Air Products delivered another excellent quarter of safety and financial results. Adjusted EPS of $1.79 was another quarterly record. This is also the 15th consecutive quarter that we have reported adjusted EPS growth. In addition, we are winning new projects and delivering on our growth strategy. We generated a significant amount of investable cash and announced a 16 percent increase to our quarterly dividend, making our annual dividend $4.40 per share.”
Bear of the Day:
Core-Mark Holding, a Zacks Rank #5 (Strong Sell), .is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. Core-Mark Holding Company, Inc.is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. Core-Mark offers a full range of products, marketing programs, and technology solutions. Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry convenience products.
Recent Earnings Data
The company reported Q3 earnings data in early November where they missed the Zacks consensus earnings estimate for the fifth consecutive quarter, but beat on the top line. The earnings data was mostly positive where they saw year over year gains in Net sales +7.9%, Non-cigarette sales +18.8%, cigarette sales +3.6%, Candy sales +50%, and Food category +15.4%. The company also saw gross profits improve by +11.7%, and operating expenses fell by 11.4%.
But on January 5th, the company preannounced Q4 earnings data, and lowered expectations for FY 18. Management stated that fourth quarter EBITDA would be $41 million, down from the $56 million expected in November. The decline is attributed to cigarette carton sale slow down, cost overruns, and weak retail sales. Another factor in the decreased guidance was the loss of both Kroger, and Circle K customers (a loss of about 1,700 stores). To make matters worse, management also lowered FY 18 EBITDA guidance below the consensus estimate of $176 million to $162 million, a $14 million decline. This decreased guidance could become worse as the company is factoring in both the retail and cigarette segments to move back to a breakeven point. So this guidance could be viewed as high, with a potential of falling even further during the year.
Additional content:
Markets Down, but These Stocks Surged to All-Time Highs
Friday has been a rough day on Wall Street, with several major indexes—including the Dow, Nasdaq, and S&P 500—hovering deep in the red during early afternoon trading hours.
Through about 2 p.m. EST, the S&P 500 was down about 1.45%, while the Nasdaq Composite was about 1.22% lower. Meanwhile, the Dow Jones Industrial Average was down more than 400 points, or roughly 1.74%—putting the popular indicator on track for its worst week in two years.
Friday’s slump comes on the back of the Bureau of Labor Statistics’ first jobs report of 2018. According to the latest data, the U.S. added about 200,000 jobs in January, outpacing estimates that called for growth of 180,000 jobs. The report also noted that wages rose 2.9% on an annualized basis.
The new jobs info sent interest rates higher on Friday morning. The benchmark 10-year yield moved to 2.85%, a four-year high. The 30-year yield touched its highest level since March.
But it has not been all bad news today. According to BarCharts.com, at least 44 stocks surged to new all-time highs, with several positive moves stemming from strong earnings results.
Among these companies was Amazon.com, Inc. Shares of the e-commerce king gained as much as 5% to touch a new intraday peak of $1,498.00 in morning trading after the company posted robust earnings and revenue growth on Thursday.
Amazon surpassed analyst estimates on both the top and bottom line. The Jeff Bezos-led company notched revenue growth of 38%, while operating income soared 69%. Amazon said that sales in its budding Web Services division reached $5.11 billion in the quarter.
Another company that witnessed a strong post-earnings move was Edwards Lifesciences Corporation. Edwards posted its fourth-quarter 2017 report on Thursday afternoon, reporting adjusted earnings of $0.97 per share and revenues of $888.5 million. Both of these results beat the respective Zacks Consensus Estimates.
Edwards said that adjusted earnings grew 25.3% and total revenues expanded 15.7% on the back of strong sales growth in the company’s transcatheter heart valves business. Management also acknowledged strong performance from the Surgical Heart Valve Therapy and Critical Care product lines.
Shares of Edwards Lifesciences moved as much as 6% higher to touch a new all-time high of $138.48 in morning trading hours.
Finally, investors should note that popular recent IPO Canada Goose Holdings Inc. surged to a new peak of $37.10 per share in early afternoon trading. We will not see Canada Goose’s latest results until next week, but Wall Street is clearly getting excited about the trendy winter apparel maker.
Based on our current consensus estimates, we expect Canada Goose to report earnings of $0.36 per share and revenues of $188 million. The company said yesterday that it will release its latest results before the bell opens on Feb. 8.
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth.
Click here to access these stocks. >>
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.