We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape. Still, there is clearly plenty of strength in many core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company.
Through its John Deere brand, Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery. The company was founded in 1837 and is one of the most historic American corporations around, but management’s commitment to investment and innovation has kept it on the cutting edge through the years.
Deere & Company shares have surged about 45% over the past year, significantly outpacing its industry peers. And after another strong quarter, the company has witnessed a tidal wave of positive estimate revisions, earning it a Zacks Rank #1 (Strong Buy).
Latest Earnings Report
Deere reported its first-quarter fiscal 2018 results on Feb. 16. The company posted adjusted earnings of $1.31 per share, crushing the Zacks Consensus Estimate of $1.16 and improving a staggering 11% year over year. Total equipment revenues totaled $5.97 billion, up 27% from the year-ago period.
Region wise, equipment net sales increased 24% in the United States and Canada, and 33% in the rest of the world. Total net sales (including financial services) came in at $6.9 billion, up 23% year over year.
Looking at the company’s specific segments, Agriculture & Turf sales increased 18% to $4.3 billion, while operating profit at the segment climbed 78% to $387 million. Construction & Forestry sales surged 57% to $1.73 billion, mainly as a result of the Wirtgen acquisition—which added 5% to total net sales.
Deere also detailed its upbeat outlook for the remainder of the fiscal year. Management raised its total equipment sales growth outlook for fiscal 2018 to around 29%, up from prior guidance of about 22%. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion.
There have been plenty of winners to choose from in the tech sector recently, even over the past two months of increased volatility. However, we have started to see investors punish underperforming companies with slightly stretched valuations. Online travel booking giant Expedia is one such stock.
Expedia is a U.S.-based travel company that operates about 200 travel websites in about 75 countries. Its portfolio includes recognizable names like Expedia.com, Hotels.com, Hotwire.com, trivago, Travelocity, and Orbitz.
After a disappointing Q4 earnings report, Expedia witnessed a plethora of negative earnings estimate revisions, and the stock has failed to generate any positive momentum. This Zacks Rank #5 (Strong Sell) might be due for a recovery eventually, but for now, investors should look to avoid it.
Latest Earnings Report
Expedia reported its fourth-quarter results on Feb. 8. The company posted adjusted earnings per share of 84 cents, missing the Zacks Consensus Estimate by 32 cents and sliding more than 28% year over year. This was Expedia’s six-consecutive earnings miss. Quarterly revenues of $2.32 billion also lagged our consensus estimate of $2.37 billion.
Adjusted EBITDA plunged 9% to $402 million. Notably, trivago, Egencia and Home Away EBITDA decreased 164.3%, 9.5% and 26.2%, respectively, on a year-over-year basis. Adjusted gross margin contracted 80 basis points from the year-ago period. Operating expenses as percentage of revenues were 65.1% compared with 62.5% in the prior-year period.
This increase in marketing expenses can be attributed to higher adjusted selling and marketing expenses. This is concerning for investors and indicates that Expedia is being forced to spend more to fend off increased competition.
In the report, Expedia said that it expects cost of revenues to grow slightly faster than revenues. Management also expects that technology and content expenses will grow significantly faster than revenues this year.
Additional content:
Upcoming Earnings Reports to Watch: ORCL, NKE, MU
We have hit a lull as far as earnings reports go, and Wall Street’s attention has shifted from tax benefits and strong guidance to international trade debates and continued turnover at the White House. Still, Q4 earnings season was strong across the board, and as several major companies with non-traditional calendars report in the coming days, investors will hope that this trend continues.
With that said, investors can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
And today, we’ve made that task even easier for you. Using the Earnings Calendar, we looked ahead to next week and selected the biggest reports to watch. Make sure to keep an eye on these companies as they prepare to report during the week of March 19.
1. Oracle Corporation
Software giant Oracle is scheduled to release its latest quarterly financial results after the closing bell on March 19. Continued adoption of cloud infrastructure has been a growth catalyst for Oracle, but the company’s stock has proven to be much more volatile than many of its tech peers. Shares of ORCL are up just 15% over the past year, and patient investors have endured significant up-and-down swings over that time.
Based on our current Zacks Consensus Estimates, we expect Oracle to report revenues of $9.8 billion and adjusted earnings of 72 cents per share. These results would represent year-over-year growth rates of 5.5% and 4.4%, respectively. Last quarter, cloud revenues surged 44%, so investors will want to pay close attention to this segment when Oracle reports.
2. Nike, Inc.
Athletic apparel behemoth Nike is slated to announce its latest quarterly earnings details after the market closes on March 22. Headwinds at major retail partners and shifting consumer habits have put pressure on companies like Nike, but the company’s remarkable brand portfolio and market share should support results. NKE is carrying a Zacks Rank #3 (Hold) into its report date.
According our latest Zacks Consensus Estimates, Nike is projected to report adjusted earnings per share of 52 cents, down more than 23% from the year-ago period. However, expected revenues of $8.8 billion would mark an improvement of 4.7% year over year.
3. Micron Technology, Inc.
Red-hot semiconductor memory solutions company Micron is scheduled to release its latest quarterly earnings report after the closing bell on March 22. Micron has skyrocketed on the back of rising demand for its memory chips, as well as improvements to its own operations. The stock has gained more than 130% over the past year and is holding a Zacks Rank #2 (Buy) ahead of its report.
Our Zacks Consensus Estimates are calling for Micron to report adjusted earnings of $2.76 per share and total revenues of $7.23 billion, which would represent year-over-year growth of 206.7% and 55.5%, respectively.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Check back later for our full analysis on URBN’s earnings report!
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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.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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Deere & Company, Expedia, Oracle, Nike and Micron as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – March 19, 2018 – Zacks Equity Research highlights Deere & Company (DE - Free Report) as the Bull of the Day and Expedia (EXPE - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onOracle Corporation (ORCL - Free Report) , Nike, Inc. (NKE - Free Report) and Micron Technology, Inc. (MU - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape. Still, there is clearly plenty of strength in many core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company.
Through its John Deere brand, Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery. The company was founded in 1837 and is one of the most historic American corporations around, but management’s commitment to investment and innovation has kept it on the cutting edge through the years.
Deere & Company shares have surged about 45% over the past year, significantly outpacing its industry peers. And after another strong quarter, the company has witnessed a tidal wave of positive estimate revisions, earning it a Zacks Rank #1 (Strong Buy).
Latest Earnings Report
Deere reported its first-quarter fiscal 2018 results on Feb. 16. The company posted adjusted earnings of $1.31 per share, crushing the Zacks Consensus Estimate of $1.16 and improving a staggering 11% year over year. Total equipment revenues totaled $5.97 billion, up 27% from the year-ago period.
Region wise, equipment net sales increased 24% in the United States and Canada, and 33% in the rest of the world. Total net sales (including financial services) came in at $6.9 billion, up 23% year over year.
Looking at the company’s specific segments, Agriculture & Turf sales increased 18% to $4.3 billion, while operating profit at the segment climbed 78% to $387 million. Construction & Forestry sales surged 57% to $1.73 billion, mainly as a result of the Wirtgen acquisition—which added 5% to total net sales.
Deere also detailed its upbeat outlook for the remainder of the fiscal year. Management raised its total equipment sales growth outlook for fiscal 2018 to around 29%, up from prior guidance of about 22%. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion.
Bear of the Day:
There have been plenty of winners to choose from in the tech sector recently, even over the past two months of increased volatility. However, we have started to see investors punish underperforming companies with slightly stretched valuations. Online travel booking giant Expedia is one such stock.
Expedia is a U.S.-based travel company that operates about 200 travel websites in about 75 countries. Its portfolio includes recognizable names like Expedia.com, Hotels.com, Hotwire.com, trivago, Travelocity, and Orbitz.
After a disappointing Q4 earnings report, Expedia witnessed a plethora of negative earnings estimate revisions, and the stock has failed to generate any positive momentum. This Zacks Rank #5 (Strong Sell) might be due for a recovery eventually, but for now, investors should look to avoid it.
Latest Earnings Report
Expedia reported its fourth-quarter results on Feb. 8. The company posted adjusted earnings per share of 84 cents, missing the Zacks Consensus Estimate by 32 cents and sliding more than 28% year over year. This was Expedia’s six-consecutive earnings miss. Quarterly revenues of $2.32 billion also lagged our consensus estimate of $2.37 billion.
Adjusted EBITDA plunged 9% to $402 million. Notably, trivago, Egencia and Home Away EBITDA decreased 164.3%, 9.5% and 26.2%, respectively, on a year-over-year basis. Adjusted gross margin contracted 80 basis points from the year-ago period. Operating expenses as percentage of revenues were 65.1% compared with 62.5% in the prior-year period.
This increase in marketing expenses can be attributed to higher adjusted selling and marketing expenses. This is concerning for investors and indicates that Expedia is being forced to spend more to fend off increased competition.
In the report, Expedia said that it expects cost of revenues to grow slightly faster than revenues. Management also expects that technology and content expenses will grow significantly faster than revenues this year.
Additional content:
Upcoming Earnings Reports to Watch: ORCL, NKE, MU
We have hit a lull as far as earnings reports go, and Wall Street’s attention has shifted from tax benefits and strong guidance to international trade debates and continued turnover at the White House. Still, Q4 earnings season was strong across the board, and as several major companies with non-traditional calendars report in the coming days, investors will hope that this trend continues.
With that said, investors can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
And today, we’ve made that task even easier for you. Using the Earnings Calendar, we looked ahead to next week and selected the biggest reports to watch. Make sure to keep an eye on these companies as they prepare to report during the week of March 19.
1. Oracle Corporation
Software giant Oracle is scheduled to release its latest quarterly financial results after the closing bell on March 19. Continued adoption of cloud infrastructure has been a growth catalyst for Oracle, but the company’s stock has proven to be much more volatile than many of its tech peers. Shares of ORCL are up just 15% over the past year, and patient investors have endured significant up-and-down swings over that time.
Based on our current Zacks Consensus Estimates, we expect Oracle to report revenues of $9.8 billion and adjusted earnings of 72 cents per share. These results would represent year-over-year growth rates of 5.5% and 4.4%, respectively. Last quarter, cloud revenues surged 44%, so investors will want to pay close attention to this segment when Oracle reports.
2. Nike, Inc.
Athletic apparel behemoth Nike is slated to announce its latest quarterly earnings details after the market closes on March 22. Headwinds at major retail partners and shifting consumer habits have put pressure on companies like Nike, but the company’s remarkable brand portfolio and market share should support results. NKE is carrying a Zacks Rank #3 (Hold) into its report date.
According our latest Zacks Consensus Estimates, Nike is projected to report adjusted earnings per share of 52 cents, down more than 23% from the year-ago period. However, expected revenues of $8.8 billion would mark an improvement of 4.7% year over year.
3. Micron Technology, Inc.
Red-hot semiconductor memory solutions company Micron is scheduled to release its latest quarterly earnings report after the closing bell on March 22. Micron has skyrocketed on the back of rising demand for its memory chips, as well as improvements to its own operations. The stock has gained more than 130% over the past year and is holding a Zacks Rank #2 (Buy) ahead of its report.
Our Zacks Consensus Estimates are calling for Micron to report adjusted earnings of $2.76 per share and total revenues of $7.23 billion, which would represent year-over-year growth of 206.7% and 55.5%, respectively.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Check back later for our full analysis on URBN’s earnings report!
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.