For Immediate Release
Chicago, IL – August 11, 2017 – Zacks Equity Research highlights Johnson Outdoors Inc. (NASDAQ:JOUT – Free Report) as the Bull of the Day MicroStrategy Inc. (NASDAQ:MSTR – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Snap, Inc. (NYSE:SNAP – Free Report), NVIDIA (NASDAQ:(NVDA - Free Report) – Free Report) and Nordstrom (NYSE:JWN – Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Johnson Outdoors Inc.(NASDAQ:(JOUT - Free Report) – Free Report) is a leading global outdoor recreation company that turns ideas into adventure with innovative, top-quality products. The Company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft, Marine Electronics, Diving and Outdoor Equipment. Johnson Outdoors' familiar brands include, among others: Old Town canoes and kayaks; Ocean Kayak and Necky kayaks; Lendal paddles; Escape electric boats; Minn Kota motors; Cannon downriggers; Humminbird, Bottom Line and Fishin' Buddy fishfinders; Scubapro and UWATEC dive equipment; Silva compasses and digital instruments; and Eureka! tents.
Last week, management posted record high third quarter earnings with net sales improving by +11.5% year over year (YoY). Specifically the fishing segment saw sales improve by +18%, and diving sales rise by +17% YoY. Further, operating profits leaped up by +81.6% while gross margins were up 290 basis points YoY. Lastly, management was able to generate all of these impressive numbers and have their balance sheet show $94 million in cash with zero debt.
According to Helen Johnson-Leipold, Chairman and CEO, “This quarter’s outstanding results emphasize the importance of our continued focus and investment on delivering market-winning innovation driven by a deeper understanding of, and unique insights into outdoor recreation consumers. Exceptional new products and technologies are powering tremendous growth in Fishing. Likewise, innovation in core life-support categories has created positive marketplace momentum and improved performance in Diving. At the same time, our unique flux-ring technology in Jetboil6 and innovative Predator series of fishing boats from Old Town have helped us grow share in very challenging Camping and Watercraft Recreation markets. Overall, we are well-positioned to end the year strong with solid momentum heading into the next fiscal year. Looking ahead, we expect to see Fishing grow at a more normalized rate. We will continue to advance progress against our three key strategic plan priorities - richer consumer insights, enhanced innovation processes and digital sophistication the cornerstones of a foundation for success in delivering accelerated, sustained profitable growth long-term.”
MicroStrategy Inc.(NASDAQ:(MSTR - Free Report) – Free Report) is a leading worldwide provider of business intelligence software, today announced that GT Nexus has selected MicroStrategy to power the customer-facing analytics and reporting capabilities on its Global Logistics portal. The GT Nexus portal is an on demand technology platform that is used by importers, exporters, transportation carriers, suppliers, banks, and other partners to manage goods that are moving around the world. The GT Nexus system captures and stores hard-to-get data associated with global supply chains, and then fuels a range of Web applications that can be used by constituents to lower supply chain costs and improve control.
Recent Earnings Report
Management recently reported Q2 17 earnings where they significantly missed the Zacks consensus earnings estimate (actual of $0.96 vs consensus of $1.60), and missed the Zacks consensus revenue estimate ($121 million actual vs. consensus of $126 million).
On a year over year basis the company saw losses in the following; revenues -2.1%, product license and subscription services revenues -12.1%, product support revenues -1.0%, income from operations -25.6%, net income -41.3%, and non-GAAP income from operations -21.5%. The company also saw operating expenses increase by +3.3%.
The major drag on the company has been license sales. CEO Michael Taylor commented on the situation, “I'm disappointed with the license sales and the growth rate in the first two quarters of 2017. And we've got a hard time growing given the current level of noise in the marketplace combined with the expanding universe of customer requirements. And we're going to have a hard time growing if we continue to spend at our current rate on technology and marketing. The noise in the marketplace doesn't just come from our competitors, it's coming from just about all the mid-size and emerging enterprise software companies, they're all fighting for a share of wallet within the enterprise itself.”
CFO’s Take of the Quarter’s Results
According to Phong Le, CFO, “On to our financial results for second quarter. Overall, our product license revenue results in Q2 2017 were below our expectations. However, we continued to see strength in other areas of our business including cloud, maintenance renewal and consulting and education. A shortfall in product license revenue contributed to declines in overall revenue, operating income and diluted earnings per share. Product license revenues declined 19% year over year. Total revenues declined 2% year over year. Operating income declined 26% year over year and diluted earnings per share declined 41% year over year. Description services revenue grew 7%, services revenue increased 9% year over year and we continued to experience strong maintenance renewal rate.”
Snap, NVIDIA Down After Q2 Earnings Results
Snap, Inc. (NYSE:SNAP – Free Report) further advances into the turmoil of its publicly traded existence, further tumbling after-hours following its second-ever quarterly earnings report. A bottom-line loss of 36 cents per share (accounting for stock-based compensation and other BNRI) on sales of $181.7 million missed the -29 cents per share and $186.9 million, respectively, in the Zacks consensus estimate. Average revenue per user ($1.05) coming in lower than anticipated was a main reason for the miss. Global daily active users passed 172 million in Q2, but this wasn't enough to keep SNAP shares from sliding 11% in the after-market.
For more on SNAP's earnings results, click here.
Chip-maker and top S&P 500 outperformer NVIDIA (NASDAQ:NVDA – Free Report) reported Q2 earnings and revenues well ahead of expectations -- $1.01 per share beat the 69 cents expected (which was itself representative of +57% year over year) on revenues $2.23 billion, which far outpaced $1.96 billion (which represented 37% growth). Yet shares are selling off more than 7.7% in late trading -- the epitome of a "sell the news" situation; NVDA is up over 180% from this time a year ago.
Keeping with the Retail theme of late earnings season this week, Nordstrom (NYSE:JWN – Free Report) has outperformed expectations on both top and bottom lines after the bell today, posting 65 cents per share (beating the Zacks consensus by 3 cents) on $3.79 billion in quarterly sales ($3.73 billion had been expected). Comps were 1.7% year over year, much better than the -0.4% expected. Net sales were also above consensus. Bottom line, Retail has had a dicey Q2 earnings season guiding through the Amazon minefield, but Nordstrom looks to have survived without much damage.
For more on Nordstrom's earnings results, click here.
About the Bull and Bear of the Day
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