For Immediate Release
Chicago, IL – December 01, 2016 – Zacks Equity Research highlights JBT Corporation (NYSE:JBT – Free Report) as the Bull of the Day and Grupo Televisa, S.A. (NYSE:(TV - Free Report) – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on GoPro Inc. (NASDAQ:(GPRO - Free Report) –Free Report),Target (NYSE:(TGT - Free Report) –Free Report) and Walmart (NYSE:(WMT - Free Report) – Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Founded in 1884, JBT Corporation (NYSE:JBT – Free Report) is a global technology solutions provider to the food processing and air transportation industries. It was spun-off from FMC Technologies in 2008.
The Chicago based company operates through two segments--JBT FoodTech and JBT AeroTech. The FoodTech segment produces freezer, processing and related solutions while the AeroTech segment sells critical equipment and services to domestic and international air transportation customers.
Their large installed base of food processing systems and airport equipment provides the company with strong market positions within both these product lines.
Excellent Quarterly Results
The company reported Q3 results on October 26. Revenues of $349.6 million were up 28% from the same quarter a year ago, while earnings of $0.69 per share were up from $0.43. Adjusted earnings of $0.68 per share were significantly ahead of the Zacks Consensus Estimate of $0.53.
They have been consistently beating for the last 14 quarters. For the last four quarters, they delivered an average quarterly positive surprise of 18%.
Bear of the Day :
Grupo Televisa, S.A. (NYSE:(TV - Free Report) – Free Report) is the leading media company in the Spanish-speaking world. The company runs four television networks in Mexico. They also have interests in TV production, broadcasting, international distribution of television programming and direct-to-home (DTH) satellite services among others.
They export their programs to the US through Univision and to other TV networks in over 50 countries.
The company reported lackluster financial results for Q3 2016. Net income came in at approximately $70.8 million, down 79.6% year over year. Earnings per Global Depository Shares (GDS) were 12 cents, significantly short of the Zacks Consensus Estimate of 20 cents.
According to the management, the depreciation of the peso had an impact on their operations particularly on CapEx, which are primarily in the US dollars. The company plans to reduce CapEx for 2017, given the weakness of the peso.
The stock fell more than 4% after the report.
After weak results, analysts have slashed their estimates for the company. Zacks Consensus Estimates for the current and the next fiscal year are now $0.51 per share and $0.73 per share respectively, down from $0.66 per share and $0.85 per share, before the results.
The company had an average negative quarterly surprise of 49% for the last four quarters.
The Bottom Line
While the company has a leading position in Spanish language content and pay-TV industry in Mexico, there are growing headwinds for the company.
While consumption in Mexico had remained strong so far, growth estimates for the economy have been coming down. Further there is a lot of uncertainty surrounding the potential impact of US trade and immigration policy changes on the Mexican economy after the US presidential election.
The Mexican telecom regulator had identified Televisa as a dominant player in the broadcast TV market. Thus, the company may face more stringent regulatory measures, going forward.
Also, the new reform bill of the Mexican government will allow America Movil to enter the broadcasting market of Mexico, which has been dominated by Televisa for a long time. This would hurt Televisa’s advertisement revenues.
GoPro Slashes 15% of Workforce, Shuts Down Entertainment Biz
On Wednesday, wearable camera maker GoPro Inc. (NASDAQ:(GPRO - Free Report) –Free Report) announced that it will be cutting 15% of its total workforce as part of a broader, company-wide restructuring effort that also includes shutting down its entertainment division and reducing office space. GPRO stock, which has lost roughly half its value so far this year, has been in the green today, up almost 3% in afternoon trading on the news.
GoPro’s chief financial officer, Brian T. McGee said that through restructuring, the company hopes to reduce operating expenses by about $650 million. GoPro also announced that its president, Tony Bates, will be leaving the company at the end of the year.
Along with cutting jobs, the company decided to close its entertainment business. GoPro had made key hires from HBO, Hulu, and MTV in hopes of becoming a media company and to develop original content, but with the division’s shut down, it looks like this goal was unsuccessful.
Since it went public in 2014, GoPro has seemingly faced struggle after struggle, and this year has been particularly hard for the camera maker, as dwindling customer traction has deeply affected its sales. The company is hoping that its new line of products will help boost profit, despite some major malfunctions. Earlier this month, GoPro recalled 2,500 of its Karma drones because they were falling out of the sky.
Along with a new slate of products, GoPro is also setting its sights on software, showing how the company is slowly narrowing its core business focus “We are headed into 2017 with a powerful global brand, our best-ever products, and a clear road map for restored growth and profitability in 2017,” said founder and CEO Nicholas Woodman.
In addition to these major business announcements, GoPro gave a glimpse of its Black Friday sales. Camera sales climbed over 35% year-over-year at top U.S. retailers like Target (NYSE:(TGT - Free Report) –Free Report) and Walmart (NYSE:(WMT - Free Report) – Free Report), and cameras that were bought through GoPro’s website from Thanksgiving to Cyber Monday increased about 33% year-over-year.
Stocks that Aren't in the News…Yet
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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 nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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