For Immediate Release
Chicago, IL – August 22, 2017 – Zacks Equity Research highlightsYelp Inc. (NYSE:YELP – Free Report) as the Bull of the Day Chicago Bridge & Iron (NYSE:CBI – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Sony Corp (NYSE:(SNE - Free Report) – Free Report), Activision Blizzard Inc. (NASDAQ:(ATVI - Free Report) – Free Report) and Micron Technology (NASDAQ:(MU - Free Report) – Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Yelp Inc.(NYSE:(YELP - Free Report) – Free Report), a Zacks Ranked #1 (Strong Buy) is a website engaged in providing information through online community offering social networking. It covers restaurants, shopping, nightlife, financial services, health and a variety of services. The company serves customers in the United States, Canada, the United Kingdom, Ireland, France, Germany, Austria, the Netherlands, Spain, Italy, Switzerland and Belgium. Yelp, Inc. is headquartered in San Francisco, California.
Recent Earnings Report
The company reported Q2 earnings in early August where they handily beat both the Zack consensus earnings (-$0.03 estimate vs. $0.09 actual) and revenue ($205 million estimate vs. $209 million actual) estimates. The company saw year over year (YoY) growth in revenues +20%, GAAP net income +900%, adjusted EBITDA +52.7%, and non-GAAP net income +72.8%. On a segment basis, advertising revenues grew +19% YoY, Transactions revenues improved by +19% YoY, and Other services revenues were up +317% YoY.
Management also announced a stock repurchase program of up to $200 million
According to Jeremy Stoppelman, co-founder and CEO, “We performed well in the second quarter, growing revenue by 20% and driving strong growth in app usage and advertiser accounts. We generated strong profitability in the second quarter, even while investing for future growth. We are announcing the pending sale of Eat24 to Grubhub today as part of an important strategic partnership to expand online ordering capabilities on Yelp. The Eat24 team has been instrumental in Yelp’s success over the past two years and we are excited to continue to work with them as part of Grubhub.”
Also, Lanny Baker, CFO, commented, “Our second quarter financial performance reflects the overall health of our business. We are pleased to sell Eat24 at a price that we believe demonstrates the value we’ve created over the past two years. We are also announcing a share repurchase that reflects confidence in the business and commitment to efficient management of shareholder capital.”
Chicago Bridge & Iron(NYSE: – Free Report), a Zacks Ranked #5 (Strong Sell) designs, builds, repairs, and modifies steel tanks and other steel plate structures and associated systems. The Company designs and builds petroleum terminals, refinery pressure vessels, low temperature and cryogenic storage facilities and elevated water storage tanks for clients internationally.
Recent Earnings Report
The company recently reported Q2 2017 earnings where they significantly missed both the Zacks consensus earnings ($0.85 estimate vs. -$2.96 actual), and revenue ($2.44 billion estimate vs. $1.283 billion actual) estimates. The company saw revenues decline year over year (YoY) by -41%, reported a net loss of $304.1 million compared to a net gain of $115.6 million in Q2 16, net awards fell by -15.4% YoY, and backlogs were reduced by -7.5% YoY.
Due to the poor performance management has suspended their dividend payments, begun a $100 million dollar cost reduction program, and is in the process of attempting to sell their Technology business. Further, due to the issues facing the company management reduced their second half revenue guidance to a range between $3.7 and $4.0 billion and diluted earnings per share in the range of $1.00 to $1.25.
According to Patrick K. Mullen, President and CEO, “Although our second quarter results are disappointing, we are taking decisive actions to improve our operating performance and strengthen the company's financial position. We have initiated a comprehensive cost reduction program and suspended our dividend. We are injecting additional rigor and discipline into our execution and risk management processes, further strengthening the integration between our E&C and Fabrication Services operating groups, and accelerating the implementation of innovative practices and technologies. We remain committed to our integrated self-perform model, which we believe will enable us to generate attractive earnings and cash flows over time.”
The Sun Sets Over Grand Teton: Global Week Ahead
In the Global Week Ahead, the Kansas City Fed’s annual Jackson Hole, Wyoming symposium is on tap. This event may be the primary source for both U.S. and global macro news flow.
Fundamental macro data risk looks moderate. And second quarter earnings season has wrapped up in the USA.
From time to time, market risks do indeed emanate from this gathering. Here is what is known about the KC Fed’s gathering this year:
1. It starts with an opening dinner and arrivals on Thursday evening and ends on Saturday afternoon.
2. The program agenda will be released Thuraday (8 pm EST). This agenda – along with the possibility of surprise announcements on participation of attendees -- may set off traders.
3. The theme to this year’s symposium is “Fostering a Dynamic Global Economy.” 2013 was the last time the theme was global in nature. 10 of 41 Jackson Hole Symposiums since 1978 have had global themes -- either explicitly noted in the conference title or implied.
4. Among top foreign global central bankers, ECB President Mario Draghi has confirmed participation. He did so about a month ago. He speaks Friday at 3 pm EST. Expectations are de minimus. Unnamed ECB officials told newswires Draghi wouldn’t say much ahead of the September ECB meeting.
5. Brazil’s Central Bank President Ilan Goldfajn confirmed attendance.
6. Other central bankers including Bank of England Governor Mark Carney, Bank of Japan Governor Kuroda and Bank of Canada Governor Poloz have not confirmed attendance.
7. Fed Chair Yellen confirmed participation just one week ahead. That’s unusually short notice. She speaks on Friday morning at 10 am EST. Her topic is financial stability.
Top Zacks #1 Rank (STRONG BUY) Stocks—
Keep your eye of Tech stocks this week. They may rebound after last week’s selloff. Here are three I found in our ranking system.
Sony Corp (NYSE:(SNE - Free Report) – Free Report): This is the big Japanese consumer electronics giant. The $49 billion market cap stock also holds a Zacks long-term VGM score of B.
Activision Blizzard Inc. (NASDAQ:(ATVI - Free Report) – Free Report): This is a big U.S. Toys-Games-Hobby stock. Its electronic games are widely praised. The $46 billion market cap stock is overbought, though, as the long-term Zacks VGM score is D.
Micron Technology (NASDAQ:(MU - Free Report) – Free Report): This is a big U.S. memory chipmaker. Both DRAM and NAND memory chip prices are staying aloft. That is keeping the Zacks #1 Rank on for this $32 billion in market cap stock. The long-term Zacks VGM score is A.
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 >>.
Get the full Report on YELP – FREE
Get the full Report on CBI – FREE
Get the full Report on SNE – FREE
Get the full Report on ATVI – FREE
Get the full Report on MU – FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
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/performancefor information about the performance numbers displayed in this press release.