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Nutrien, Fiverr International, Walmart, Home Depot and Target highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – August 17, 2021 – Zacks Equity Research Shares of Nutrien Ltd. (NTR - Free Report) as the Bull of the Day, Fiverr International Ltd. (FVRR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Walmart Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Target Corporation (TGT - Free Report) .
Nutrien recently raised full year earnings guidance as the agriculture market remains strong. This Zacks Rank #1 (Strong Buy) is expected to grow its earnings by 125% this year.
Nutrien is the world's largest provider of crop inputs and services. It produces around 27 million tonnes of potash, nitrogen and phosphate products world-wide.
It also has a significant agribusiness, including its retail segment, Nutrien Ag Solutions.
A Rare Earnings Miss in the Second Quarter
On Aug 9, Nutrien reported its second quarter results and actually missed on the Zacks Consensus by a penny.
Earnings were $2.08 versus the Consensus of $2.09.
It had beat 4 quarters in a row prior to this earnings miss.
But it still saw record earnings for the second quarter, and the first half of the year.
Potash production and sales drove the quarter and first half of the year with sales volumes of nearly 7 million tonnes in the first six months of the year.
Retail Digital Platform Sales Soar Again
Nutrien Ag Solutions, its retail segment, saw record results due to organic growth supported by strong demand for grains and oilseeds.
Sales on the company's digital platform, which launched in 2019, continued to soar. Sales came in at $1.6 billion in the first half of 2021, which was more than the ENTIRE 2020's sales of $1.2 billion.
Sales on the digital platform were 19% of total sales in the first half of the year, up from 10% in the first six months of 2020.
Record first half crop nutrient sales volumes, and higher crop nutrient prices, helped push gross margins higher in the second quarter and the first half of the year.
In the first half of 2021, crop nutrients sales rose 23% to $4.06 billion from $3.31 billion with gross margins moving up to 23% from 22%.
Crop Protection products sales were up 9%, Seed was up 9% and Merchandise was up 6%.
Raised Full Year Earnings Guidance
After posting a strong second quarter, it's not surprising that Nutrien provided higher guidance for the rest of the year.
However, its new full year guidance range of $4.60 to $5.10 per share was well above what the analysts were looking for.
As a result, the analysts have been raising estimates to match.
The 2021 Zacks Consensus has jumped to $4.06 from $3.84 in the last week. That's earnings growth of 125% but it's still below the $4.60 range given by Nutrien, so it may go higher still.
2 estimates were also revised higher for 2022, pushing up next year to $4.39, which is another 8% growth.
Shares Up, But Still Cheap
Shares have surged over the last year, gaining 62% in that time.
In 2021, they are up 29.2%, beating the S&P 500 which is up about 19%.
Because the earnings are on the rise, the forward P/E is still attractive at 15.7.
Nutrien is shareholder friendly and has raised its dividend 3 times since 2018. It currently pays a dividend yielding 2.9%.
For those investors interested in owning in the agriculture sector, Nutrien is one to keep on the short list.
Fiverr International grew quickly during the pandemic. However, this Zacks Rank #5 (Strong Sell) is seeing a slowdown as the economy reopens and people spend less time on their screens.
Fiverr operates a platform that connects businesses with skilled freelancers offering digital services in more than 500 categories, across 9 verticals including graphic design, digital marketing, programming, video and animation.
Through June 30, 2021, 4 million customers bought services from freelancers across more than 160 countries.
Another Beat in the Second Quarter
On Aug 5, Fiverr reported its second quarter results and beat on the Zacks Consensus by $0.06. Earnings were $0.19 compared to the Zacks Consensus of $0.13.
It hasn't missed since its 2019 IPO.
That's an impressive track record, especially during a pandemic.
But Fiverr was a pandemic "winner" as work-from-home exploded.
Revenue rose 60% year-over-year in the second quarter to $75.3 million.
Active buyers jumped 43% to 4 million as of June 30, 2021, from 2.8 million as of June 30 a year ago.
Those buyers were also spending more. Spend per buyer rose to $226 from $184 in the prior year's quarter, a gain of 23%.
Third Quarter Guidance Disappoints
Despite a strong second quarter, Fiverr said it saw a change in behavior at the start of the third quarter as the restrictions were lifted and the economy reopened.
People were spending more time outside of the house.
It translated into more modest new customer cohorts and less activity for older cohorts.
Fiverr guided revenue in the range of $68 million to $72 million, a sequential quarterly decline.
The analysts never like hearing that.
As a result, they have cut their 2021 and 2022 earnings estimates.
The Zacks Consensus Estimate for 2021 has fallen to a loss of $0.13 from $0.21 just a month ago. That's an earnings decline of 145% as the company made $0.29 last year.
The 2022 Zacks Consensus Estimate has declined to $0.77 from $1.05 during the last month.
Sales are still expected to rise to $285 million, up 51% year-over-year.
Shares Plunge in the Last Month
Fiverr shares soared during 2020 as revenue grew but 2021 has been a rocky road.
Over the last year, shares have gained 55%. But in 2021, they have fallen 14.5% and have lost 21% over the last month, since it warned about the slowdown.
But if you are an investor who is buying the analysts' belief that the company could return to positive earnings in 2022, then could this be a buying opportunity?
Revenue is expected to be up 51% this year and another 34% in 2022.
Investors interested in the "future of work" and the creator economy, might want to keep an eye on Fiverr for further weakness and a change in the Zacks Rank.
It could be a chance to get it for much cheaper.
Additional content:
Big-Box Retailers to Watch for Earnings This Week
Second-quarter earnings reports from big-box retail players are on deck this week. From child tax credit to an array of government stimulus measures in recent times, all have undoubtedly put more money in consumers' wallets. The big-box retailers are, thus, expected to have made the most of consumers' spending spree in the second quarter. Of course, these companies must have performed well in the second quarter since the SPDR S&P Retail ETF is already up more than 50% so far this year.
Big-box retailers, in particular, have been able to utilize their abundant financial resources in handling the surge in online orders during the said quarter. In fact, big-box retailers introduced strategies like curbside pickup services to boost sales. Shoppers also remained cautious amid the coronavirus pandemic, reduced multiple visits to stores, and instead favored single stops at big-box retailers. No doubt, such moves boosted sales of the big-box retailers, which should get reflected in their second-quarter earnings results.
The improved macroeconomic backdrop in the second quarter has certainly been a tailwind to year-over-year sales of big-box retailers. After all, reopening of the economy increased consumers' mobility in the second quarter, something that bodes well for big-box retailers, known for having large physical stores across the country.
Let us, thus, keep an eye on three of the big-box retailers whose earnings are about to roll out this week. Notably, the companies in discussion are Walmart, Home Depot and Target, and there isn't any better group to judge the strength of U.S. consumers at the moment.
Walmart
The world's largest retailer is set to report fiscal second-quarter results on Aug 17, before the market opens. The company's sales in the second quarter are widely expected to outdo the figures raked in by rivals like Amazon.com Inc (AMZN), thanks to federal stimulus measures, same-day delivery offers as well as added merchandise.
However, compared to the year-earlier period, Walmart's sales figures might take a hit. This is because last year's stay-in-place order immensely boosted its online sales, which may not be the case this time around due to the reopening of the economy.
The Zacks Consensus Estimate for Walmart's fiscal second-quarter revenues is pegged at $136 billion, indicating a drop of nearly 1.3% year over year. The Zacks Consensus Estimate for earnings is at $1.56 a share, which by the way suggests no change in comparison to the year-ago period.
Home Depot
The home improvement retailer is poised to report fiscal second-quarter results on Aug 17, before the market opens. The pandemic, no doubt, has been a blessing in disguise for Home Depot. Mostly stuck at home, many Americans spent on home improvements, which has likely been a major plus for Home Depot in the second quarter. Needless to say, even if the economy recently reopened, many Americans stayed at home in the said quarter and maintained the work-from-home trend.
Nevertheless, the housing market has been more or less hot in the said quarter, and with more money in hand, consumers invested in new houses. This has certainly boosted Home Depot's second-quarter performance.
The Zacks Consensus Estimate for Home Depot's fiscal second-quarter revenues is projected at $40.68 billion, indicating a rise of 6.9% year over year. Similarly, the Zacks Consensus Estimate for earnings is pinned at $4.41 a share, calling for 9.7% year-over-year growth.
Target
The Minneapolis-based retailer is set to report fiscal second-quarter results on Aug 18, before the market opens. Target is expected to have performed much better than bigger players like Walmart in the second quarter.
This is because consumers are believed to have spent more on home furnishing products, apparel, and electronic devices in the second quarter, banking on an improvement in their financial well-being. And these products are mostly sold at Target stores across the country. On the contrary, consumers are thought to have spent less on staple products, mostly found at Walmart stores.
Reopening of the economy, in the meantime, increased foot traffic in the second quarter, which undoubtedly bodes well for Target. Thus, the Zacks Consensus Estimate for Target's fiscal second-quarter revenues is pegged at $24.97 billion, indicating a rise of almost 8.7% year over year. Similarly, the Zacks Consensus Estimate for earnings is pinned at $3.48 a share, indicating a rise of nearly 3% year over year.
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/performance for information about the performance numbers displayed in this press release.
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Nutrien, Fiverr International, Walmart, Home Depot and Target highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 17, 2021 – Zacks Equity Research Shares of Nutrien Ltd. (NTR - Free Report) as the Bull of the Day, Fiverr International Ltd. (FVRR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Walmart Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Target Corporation (TGT - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Nutrien recently raised full year earnings guidance as the agriculture market remains strong. This Zacks Rank #1 (Strong Buy) is expected to grow its earnings by 125% this year.
Nutrien is the world's largest provider of crop inputs and services. It produces around 27 million tonnes of potash, nitrogen and phosphate products world-wide.
It also has a significant agribusiness, including its retail segment, Nutrien Ag Solutions.
A Rare Earnings Miss in the Second Quarter
On Aug 9, Nutrien reported its second quarter results and actually missed on the Zacks Consensus by a penny.
Earnings were $2.08 versus the Consensus of $2.09.
It had beat 4 quarters in a row prior to this earnings miss.
But it still saw record earnings for the second quarter, and the first half of the year.
Potash production and sales drove the quarter and first half of the year with sales volumes of nearly 7 million tonnes in the first six months of the year.
Retail Digital Platform Sales Soar Again
Nutrien Ag Solutions, its retail segment, saw record results due to organic growth supported by strong demand for grains and oilseeds.
Sales on the company's digital platform, which launched in 2019, continued to soar. Sales came in at $1.6 billion in the first half of 2021, which was more than the ENTIRE 2020's sales of $1.2 billion.
Sales on the digital platform were 19% of total sales in the first half of the year, up from 10% in the first six months of 2020.
Record first half crop nutrient sales volumes, and higher crop nutrient prices, helped push gross margins higher in the second quarter and the first half of the year.
In the first half of 2021, crop nutrients sales rose 23% to $4.06 billion from $3.31 billion with gross margins moving up to 23% from 22%.
Crop Protection products sales were up 9%, Seed was up 9% and Merchandise was up 6%.
Raised Full Year Earnings Guidance
After posting a strong second quarter, it's not surprising that Nutrien provided higher guidance for the rest of the year.
However, its new full year guidance range of $4.60 to $5.10 per share was well above what the analysts were looking for.
As a result, the analysts have been raising estimates to match.
The 2021 Zacks Consensus has jumped to $4.06 from $3.84 in the last week. That's earnings growth of 125% but it's still below the $4.60 range given by Nutrien, so it may go higher still.
2 estimates were also revised higher for 2022, pushing up next year to $4.39, which is another 8% growth.
Shares Up, But Still Cheap
Shares have surged over the last year, gaining 62% in that time.
In 2021, they are up 29.2%, beating the S&P 500 which is up about 19%.
Because the earnings are on the rise, the forward P/E is still attractive at 15.7.
Nutrien is shareholder friendly and has raised its dividend 3 times since 2018. It currently pays a dividend yielding 2.9%.
For those investors interested in owning in the agriculture sector, Nutrien is one to keep on the short list.
Bear of the Day:
Fiverr International grew quickly during the pandemic. However, this Zacks Rank #5 (Strong Sell) is seeing a slowdown as the economy reopens and people spend less time on their screens.
Fiverr operates a platform that connects businesses with skilled freelancers offering digital services in more than 500 categories, across 9 verticals including graphic design, digital marketing, programming, video and animation.
Through June 30, 2021, 4 million customers bought services from freelancers across more than 160 countries.
Another Beat in the Second Quarter
On Aug 5, Fiverr reported its second quarter results and beat on the Zacks Consensus by $0.06. Earnings were $0.19 compared to the Zacks Consensus of $0.13.
It hasn't missed since its 2019 IPO.
That's an impressive track record, especially during a pandemic.
But Fiverr was a pandemic "winner" as work-from-home exploded.
Revenue rose 60% year-over-year in the second quarter to $75.3 million.
Active buyers jumped 43% to 4 million as of June 30, 2021, from 2.8 million as of June 30 a year ago.
Those buyers were also spending more. Spend per buyer rose to $226 from $184 in the prior year's quarter, a gain of 23%.
Third Quarter Guidance Disappoints
Despite a strong second quarter, Fiverr said it saw a change in behavior at the start of the third quarter as the restrictions were lifted and the economy reopened.
People were spending more time outside of the house.
It translated into more modest new customer cohorts and less activity for older cohorts.
Fiverr guided revenue in the range of $68 million to $72 million, a sequential quarterly decline.
The analysts never like hearing that.
As a result, they have cut their 2021 and 2022 earnings estimates.
The Zacks Consensus Estimate for 2021 has fallen to a loss of $0.13 from $0.21 just a month ago. That's an earnings decline of 145% as the company made $0.29 last year.
The 2022 Zacks Consensus Estimate has declined to $0.77 from $1.05 during the last month.
Sales are still expected to rise to $285 million, up 51% year-over-year.
Shares Plunge in the Last Month
Fiverr shares soared during 2020 as revenue grew but 2021 has been a rocky road.
Over the last year, shares have gained 55%. But in 2021, they have fallen 14.5% and have lost 21% over the last month, since it warned about the slowdown.
But if you are an investor who is buying the analysts' belief that the company could return to positive earnings in 2022, then could this be a buying opportunity?
Revenue is expected to be up 51% this year and another 34% in 2022.
Investors interested in the "future of work" and the creator economy, might want to keep an eye on Fiverr for further weakness and a change in the Zacks Rank.
It could be a chance to get it for much cheaper.
Additional content:
Big-Box Retailers to Watch for Earnings This Week
Second-quarter earnings reports from big-box retail players are on deck this week. From child tax credit to an array of government stimulus measures in recent times, all have undoubtedly put more money in consumers' wallets. The big-box retailers are, thus, expected to have made the most of consumers' spending spree in the second quarter. Of course, these companies must have performed well in the second quarter since the SPDR S&P Retail ETF is already up more than 50% so far this year.
Big-box retailers, in particular, have been able to utilize their abundant financial resources in handling the surge in online orders during the said quarter. In fact, big-box retailers introduced strategies like curbside pickup services to boost sales. Shoppers also remained cautious amid the coronavirus pandemic, reduced multiple visits to stores, and instead favored single stops at big-box retailers. No doubt, such moves boosted sales of the big-box retailers, which should get reflected in their second-quarter earnings results.
The improved macroeconomic backdrop in the second quarter has certainly been a tailwind to year-over-year sales of big-box retailers. After all, reopening of the economy increased consumers' mobility in the second quarter, something that bodes well for big-box retailers, known for having large physical stores across the country.
Let us, thus, keep an eye on three of the big-box retailers whose earnings are about to roll out this week. Notably, the companies in discussion are Walmart, Home Depot and Target, and there isn't any better group to judge the strength of U.S. consumers at the moment.
Walmart
The world's largest retailer is set to report fiscal second-quarter results on Aug 17, before the market opens. The company's sales in the second quarter are widely expected to outdo the figures raked in by rivals like Amazon.com Inc (AMZN), thanks to federal stimulus measures, same-day delivery offers as well as added merchandise.
However, compared to the year-earlier period, Walmart's sales figures might take a hit. This is because last year's stay-in-place order immensely boosted its online sales, which may not be the case this time around due to the reopening of the economy.
The Zacks Consensus Estimate for Walmart's fiscal second-quarter revenues is pegged at $136 billion, indicating a drop of nearly 1.3% year over year. The Zacks Consensus Estimate for earnings is at $1.56 a share, which by the way suggests no change in comparison to the year-ago period.
Home Depot
The home improvement retailer is poised to report fiscal second-quarter results on Aug 17, before the market opens. The pandemic, no doubt, has been a blessing in disguise for Home Depot. Mostly stuck at home, many Americans spent on home improvements, which has likely been a major plus for Home Depot in the second quarter. Needless to say, even if the economy recently reopened, many Americans stayed at home in the said quarter and maintained the work-from-home trend.
Nevertheless, the housing market has been more or less hot in the said quarter, and with more money in hand, consumers invested in new houses. This has certainly boosted Home Depot's second-quarter performance.
The Zacks Consensus Estimate for Home Depot's fiscal second-quarter revenues is projected at $40.68 billion, indicating a rise of 6.9% year over year. Similarly, the Zacks Consensus Estimate for earnings is pinned at $4.41 a share, calling for 9.7% year-over-year growth.
Target
The Minneapolis-based retailer is set to report fiscal second-quarter results on Aug 18, before the market opens. Target is expected to have performed much better than bigger players like Walmart in the second quarter.
This is because consumers are believed to have spent more on home furnishing products, apparel, and electronic devices in the second quarter, banking on an improvement in their financial well-being. And these products are mostly sold at Target stores across the country. On the contrary, consumers are thought to have spent less on staple products, mostly found at Walmart stores.
Reopening of the economy, in the meantime, increased foot traffic in the second quarter, which undoubtedly bodes well for Target. Thus, the Zacks Consensus Estimate for Target's fiscal second-quarter revenues is pegged at $24.97 billion, indicating a rise of almost 8.7% year over year. Similarly, the Zacks Consensus Estimate for earnings is pinned at $3.48 a share, indicating a rise of nearly 3% year over year.
While Walmart has a Zacks Rank #2 (Buy), Home Depot and Target at present have a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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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/performance for information about the performance numbers displayed in this press release.