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SYNNEX, Apple, Disney and Snap highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL – February 6, 2018 – Zacks Equity Research SYNNEX Corporation (SNX - Free Report) as the Bull of the Day, Apple (AAPL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Walt Disney Co. (DIS - Free Report) and Snap Inc. (SNAP - Free Report) .

Here is a synopsis of all four stocks:

Bull of the Day:

SYNNEX Corporationis a hidden cheap stock which also pays a dividend. This Zacks Rank #1 (Strong Buy) trades with a forward P/E of just 8.3.

SYNNEX is a global business process services company which provides distribution, logistics and integration of services fo rthe technology industry.

It has two segments Technology Solutions and Concentrix. Concentrix which operates as a wholly-owned subsidiary and offers strategic solutions and end-to-end business services.

Another Beat in Fiscal Q4 2018

On Jan 10, SYNNEX reported its fiscal Q4 results and blew away the Zacks Consensus Estimate by 40 cents. Earnings were $3.65 compared to the consensus of $3.25.

It was another earnings surprise in a long line of them as the company has only missed once in the last 5 years and that was all the way back in 2015.

Total revenue was up 5.8% to $5.6 billion from $5.3 billion a year ago. While it saw strong demand in Technology Solutions, revenue actually fell 2.7% year-over-year.

However, Concentrix revenue jumped 82% to $972 million as a result of the Convergys acquisition completed on Oct 5.

The company generated cash from operations of $141 million in the quarter.

It also raised its quarterly dividend by 7%. It's now yielding 1.6%.

Full Year Estimates Raised

Analysts liked what they heard as full year estimates are on the move higher.

The fiscal 2019 Zacks Consensus Estimate hs jumped to $11.81 from $11.58 in the last 2 months with 2 estimates moving higher since the earnings report. That's earnings growth of 8.5%.

Analysts also expect revenue growth in fiscal 2019 of 9%.

The fiscal 2020 Zacks Consensus Estimate also ticked higher, jumping to $12.64 from $12.46 in the last month. That's another 7% earnings growth.

SYNNEX Shares Up Big to Start 2019

Like a lot of stocks, SYNNEX was sold off to end 2018. It has rebounded 21% to start 2019.

Bear of the Day:

Apple has fallen to a Zacks Rank #5 (Strong Sell). The lowered estimates tell the tale.

Apple is a global technology company which manufactures the iPhone, the Apple Watch, Mac, iPad and Apple TV. It also provides services through the App Store, Apple Music, Apple Pay and iCloud.

The Decline in iPhone Sales

For the first time since the iPhone was introduced, sales of Apple's flagship and iconic product have declined year-over-year.

In the fiscal first quarter, sales fell 15% year-over-year while revenue from other products and the services business grew at 19%. However, the iPhone continues to be the dominant revenue generating segment.

Services reached an all-time revenue high of $10.9 billion in the quarter, up 19% year-over-year. Mac revenue was up 9% while Wearables, Home and Accessories jumped 33%.

Operating cash flow came in at $26.7 billion.

Apple managed to beat the Zacks Consensus Estimate in the quarter by a penny, posting $4.18 versus the consensus of $4.17 but this was only after issuing a warning on the quarter several weeks before.

The Analysts Are Busy

Not only were some estimates cut after the early January 2019 warning was issued, but more cuts came after the actual earnings report.

5 estimates have been cut, and 1 raised, in the week since the earnings report for fiscal 2019.

There has been a dramatic decline in the fiscal 2019 full year estimates. The Zacks Consensus has plunged to $11.39 from $13.44 in the last 90 days. That's now an earnings decline of 4.4% compared to fiscal 2018 because the company made $11.91 that year.

Analysts are also bearish on fiscal 2020. 6 estimates have been cut, and none raised, in the last 7 days which has pushed the 2020 Zacks Consensus down to $12.96 from $14.90 just 90 days ago.

The Zacks Rank is a short-term 1-3 month recommendation based on changes to analyst estimates.

Right now, the analysts have spoken. They are cutting.

Disney (DIS - Free Report) Crushes, Snap (SNAP - Free Report) Surprises

 

The Walt Disney Co. vastly outperformed expectations for its fiscal Q1 2019 top and bottom lines after the closing bell Tuesday, with earnings of $1.84 per share beating the $1.57 in the Zacks consensus and sales of $15.30 billion surpassing the $15.18 billion we had been looking for. This is the fourth earnings beat in the last five quarters for the entertainment conglomerate. Shares were up 2% immediately upon the earnings release.

Some of the company's strength came from more unexpected areas in the quarter, including Media Networks (including ESPN) up 7%, and Parks +10% year over year in operating income. Increased ad revenues assisted Disney in the quarter, which carried a Zacks Rank #3 (Hold) rating ahead of the announcement. For more on DIS' earnings, click here.

One nice surprise yesterday afternoon came fromSnap Inc. which posted a lower-than-expected loss for its Q4 bottom line at -4 cents per share, on revenues of $390 million that beat the $375 million estimated. Average Revenue per User (ARPU) went to $2.09 versus the expected $2.05, and Daily Active Users stayed steady at 186 million as opposed to falling, as the analysts had expected. Shares shot up 15% in late trading following the results. For more on SNAP's earnings, click here.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

 

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