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These 3 Companies Recently Provided Rosy Guidance

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Positive guidance commonly injects positivity into shares, with investors scrambling to get in and ride the momentum. Companies provide favorable outlooks when business is fruitful, sending a bullish message to shareholders.

And throughout the current earnings cycle, several companies – Ford (F - Free Report) , Uber Technologies (UBER - Free Report) , and Cigna (CI - Free Report) – have provided positive outlooks, with shares moving higher following the announcements.

For those interested in recent bullish activity, let’s take a closer look at each.

Ford

Concerning headline figures, titan automaker Ford exceeded the Zacks Consensus EPS estimate by a sizable 140% and reported sales 14% above expectations, with earnings falling from the year-ago period while revenue climbed higher.  

The company provided a rosy outlook for its FY24, expecting full-year adjusted EBIT in a band of $10 - $12 billion and $6 - $7 billion in adjusted free cash flow. Shares got a solid boost post-earnings, with investors pleased with the results and outlook.

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Income-focused investors could be attracted to Ford shares, currently yielding a sizable 4.8% annually paired with a sustainable payout ratio sitting at 30% of its earnings. As shown below, the current yield crushes the respective Zacks Autos sector average of 0.9%.

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Image Source: Zacks Investment Research

Uber Technologies

Uber exceeded the Zacks Consensus EPS estimate by more than 300% and posted sales 2% ahead of the consensus. The stock sports a Zacks Rank #2 (Buy), with earnings expectations drifting higher across the board.

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Image Source: Zacks Investment Research

Uber provided a bullish outlook for its Q1 2024 following the results, expecting Gross Bookings in a band of $37 - $38.5 billion and adjusted EBITDA of $1.26 - $1.34 million. The company has regularly exceeded our consensus expectations concerning Gross Bookings, with the most recent beat totaling a nice $500 million.

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Image Source: Zacks Investment Research

The stock remains a prime consideration for growth investors, with earnings and revenue for its current fiscal year (FY24) forecasted to climb 28% and 15%, respectively. Peeking ahead, expectations for FY25 allude to an additional 65% improvement in earnings on 16% higher sales.

Uber carries a Style Score of ‘A’ for Growth.

Cigna

Cigna posted a notably strong quarter, exceeding our consensus EPS estimate by 4% and posting a 5% revenue beat. The company raised its FY24 adjusted EPS outlook and boosted its quarterly payout by 14%, reflecting its successful operations.

Shares could also entice value-focused investors, with the current 11.9X forward earnings multiple (F1) sitting well beneath five-year highs of 14.7X and just modestly above the five-year median. The stock sports a Style Score of ‘A’ for Value.

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Image Source: Zacks Investment Research

Bottom Line

Positive guidance is one of the most bullish announcements shareholders can hear, injecting confidence in the long-term picture.

And recently, all three companies above – Ford (F - Free Report) , Uber Technologies (UBER - Free Report) , and Cigna (CI - Free Report) – have provided rosy outlooks.


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Ford Motor Company (F) - free report >>

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