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MCBC, B&G and Oracle as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – March 20, 2018 – Zacks Equity Research highlights MCBC Holdings Inc. (MCFT - Free Report) as the Bull of the Day and B&G Foods Inc. (BGS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onOracle Corporation (ORCL - Free Report) .
MCBC Holdings Inc. is a company that designs, manufactures, and markets the MasterCraft brand of premium performance sport boats; it also owns boat company Nautic Star. Headquartered in Vonore, TN, it also offers skiing, wakeboarding, and luxury performance powerboats.
MCBC has been making since 1968, and sells its products in over 30 countries, with more than 130 domestic and international dealers.
MasterCraft has a huge presence in the tournament ski boat market, and thanks to its unique design, produces thousands of tournament ski, wakeboarding, and luxury and performance boats per year to keep up with demand.
Solid Second Quarter Results
MCBC beat the Zacks Consensus Estimate on both the top and bottom line, reporting revenues of 78.4 million and diluted earnings of 43 cents per share.
Revenues surged over 53% year-over-year primarily due to the inclusion of Nautic Star—MCBC acquired the company back in October 2017—as well as an increase in MasterCraft unit sales volume, favorable product mix, and price increases.
However, gross margin declined 250 basis points to 25.4%, from 27.9% in the prior year period, due to the addition of Nautic Star; its gross margin was in the high teens.
Outlook
MCBC expects the Tax Cuts and Jobs Act to add 20 cents per share to its full-year fiscal 2018 adjusted EPS guidance.
Net sales growth should now be in the high 30-percent range for the year, while adjusted EBTDA margins are expected to be in the high 17-percent range.
For the upcoming third quarter, MCBC expects net sales growth in the low 50-percent range and adjusted EBITDA margin to be above 17 percent.
Estimates on the Rise
For MCBC, its bottom line is trending upward for the foreseeable future.
Earnings are expected to grow nearly 68% for the current quarter. Six analysts have revised their estimates upwards in the last 60 days, and none have cut their outlook in the same time period.
Fiscal 2018 figures are also looking pretty promising, with seven estimates moving higher in the past two months. The Zacks consensus estimate trend has jumped from $1.61 per share to $1.83 per share.
Earnings estimates for 2019 are on the rise as well, jumping from $1.84 per share to $2.22 per share in the last 60 days.
Can MCFT Push Higher?
Shares of MCBC have gained about 15% since the start of the year, and 60% in the past one-year period. In comparison, the S&P has returned roughly 1.5% and 14%, respectively.
Based in Parsippany, NJ, B&G Foods Inc. is a small, but widely-followed food company that manufactures, sells, and distributes high-quality branded shelf-stable and frozen foods across the U.S., Canada, and Puerto Rico.
Its diverse portfolio includes brands like B&G, B&M, Cream of Wheat, Green Giant, Las Palmas, Mrs. Dash, Pirate’s Booty, Spice Islands, Back to Nature, and SnackWell’s, among many others.
B&G currently sits at a #5 (Strong Sell) on the Zacks Rank after a disappointing fourth quarter and some hard-hitting analyst downgrades that sent estimates in the wrong direction. What’s next for BGS?
Q4 Results
Even though earnings and revenues missed the Zacks Consensus—the bottom line came in at 57 cents versus 59 cents, while the top line hit $473.3 million versus $490.4 million—both metrics managed to increase year-over-year. Earnings increased 96.6%, while revenues grew 14.5% from the prior-year period.
Net sales at B&G’s Base business totaled $380.9 million, declining just 0.3% year-over-year. Sales in the company’s Green Giant frozen products segment increased 23.4%, and its Pirate Brands grew 11.4% thanks to efficient promotional events and distribution gains.
But, growth seen in these brands was somewhat offset by weak consumption trends in shelf-stable and maple syrup products; heightened competition also hurt B&G’s revenues last quarter.
Additionally, gross profit margin declined 440 basis points year-over-year to 21.4% due to increased expenses in warehousing and distribution.
2018 Guidance
B&G expects net sales to be in the range of $1.72 billion to $1.755 billion, with adjusted EPS in the range of $2.05 and $2.25 per share. Adjusted EBITDA is projected to fall between $347.5 million and $365 million.
Credit Suisse Downgrade
Soon after the company reported its results, Credit Suisse analyst Robert Moskow downgraded the food stock to ‘Underperform’ from ‘Neutral’ on expectations that the company’s management will issue more downward guidance revisions.
"The EBITDA guidance for 2018 relies too heavily, in our view, the core business’s ability to increase pricing to offset freight inflation and the distribution losses in Green Giant’s canned vegetables. As has been the case historically, we expect a highly elastic response to volume when these brands raise prices,” he writes.
Moskow also noted that B&G’s recet acquisitions of complex businesses like Back to Nature Foods and Victoria Fine Foods is adding a risk to its stock, especially as the company competes with larger firms who already have an advantage in the market.
Earnings Estimates Lowered
For the current quarter, one analyst cut their outlook in the last 30 days, and the consensus has dipped from $0.56 to $0.51. Earnings are expected to decline about 12% for this time period.
Three analysts have revised their estimates downward for the current fiscal year, and earnings are expected to remain flat as of right now.
Looking at the next fiscal year, earnings could grow 7.5%, and the current consensus sits at $2.28 per share.
Can B&G Get Back on Track?
Shares of B&G are down about 23% so far this year and have declined 34% in the past one year.
Oracle Corporationjust released its latest quarterly financial results, posting non-GAAP earnings of $0.83 per share and revenues of $9.8 billion.
Currently, ORCL is a Zacks Rank #3 (Hold), but that could change based on today’s results. The stock is currently down 2% to $50.92 per share in after-hours trading shortly after its earnings report was released.
Oracle:
Beat earnings estimates. The company posted adjusted earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.72. Quarterly GAAP earnings came in at -$0.98 per share due to one-charges related to the 2017 Tax Cuts and Jobs Act.
Matched revenue estimates. The company saw revenue figures of $9.77 billion, basically in line with our consensus estimate of $9.79 billion.
Total revenues were up 6%. Cloud and On-Premise Software Revenues climbed 8%. Cloud Software as a Service revenues soared 33%. Total Cloud Revenues gained 32%.
“During FY17, I forecast double-digit non-GAAP earnings per share growth for FY18,” said Oracle CEO Safra Catz. “With non-GAAP earnings per share up 20% in Q3, our year-to-date earnings per share growth is now up to 16%. At this point, I feel quite confident that we will comfortably deliver on my original forecast of double-digit non-GAAP earnings per share growth for FY18.”
Here’s a graph that looks at Oracle’s recent earnings performance:
Oracle Corporation is a global provider of enterprise cloud computing and is empowering businesses of all sizes on their journey of digital transformation. Oracle's application suites, platforms, and infrastructure leverage both the latest technologies and emerging ones, including artificial intelligence (AI), machine learning, blockchain, and Internet of Things (IoT).
Check back later for our full analysis on ORCL’s earnings report!
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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.
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MCBC, B&G and Oracle as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – March 20, 2018 – Zacks Equity Research highlights MCBC Holdings Inc. (MCFT - Free Report) as the Bull of the Day and B&G Foods Inc. (BGS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onOracle Corporation (ORCL - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
MCBC Holdings Inc. is a company that designs, manufactures, and markets the MasterCraft brand of premium performance sport boats; it also owns boat company Nautic Star. Headquartered in Vonore, TN, it also offers skiing, wakeboarding, and luxury performance powerboats.
MCBC has been making since 1968, and sells its products in over 30 countries, with more than 130 domestic and international dealers.
MasterCraft has a huge presence in the tournament ski boat market, and thanks to its unique design, produces thousands of tournament ski, wakeboarding, and luxury and performance boats per year to keep up with demand.
Solid Second Quarter Results
MCBC beat the Zacks Consensus Estimate on both the top and bottom line, reporting revenues of 78.4 million and diluted earnings of 43 cents per share.
Revenues surged over 53% year-over-year primarily due to the inclusion of Nautic Star—MCBC acquired the company back in October 2017—as well as an increase in MasterCraft unit sales volume, favorable product mix, and price increases.
However, gross margin declined 250 basis points to 25.4%, from 27.9% in the prior year period, due to the addition of Nautic Star; its gross margin was in the high teens.
Outlook
MCBC expects the Tax Cuts and Jobs Act to add 20 cents per share to its full-year fiscal 2018 adjusted EPS guidance.
Net sales growth should now be in the high 30-percent range for the year, while adjusted EBTDA margins are expected to be in the high 17-percent range.
For the upcoming third quarter, MCBC expects net sales growth in the low 50-percent range and adjusted EBITDA margin to be above 17 percent.
Estimates on the Rise
For MCBC, its bottom line is trending upward for the foreseeable future.
Earnings are expected to grow nearly 68% for the current quarter. Six analysts have revised their estimates upwards in the last 60 days, and none have cut their outlook in the same time period.
Fiscal 2018 figures are also looking pretty promising, with seven estimates moving higher in the past two months. The Zacks consensus estimate trend has jumped from $1.61 per share to $1.83 per share.
Earnings estimates for 2019 are on the rise as well, jumping from $1.84 per share to $2.22 per share in the last 60 days.
Can MCFT Push Higher?
Shares of MCBC have gained about 15% since the start of the year, and 60% in the past one-year period. In comparison, the S&P has returned roughly 1.5% and 14%, respectively.
Bear of the Day:
Based in Parsippany, NJ, B&G Foods Inc. is a small, but widely-followed food company that manufactures, sells, and distributes high-quality branded shelf-stable and frozen foods across the U.S., Canada, and Puerto Rico.
Its diverse portfolio includes brands like B&G, B&M, Cream of Wheat, Green Giant, Las Palmas, Mrs. Dash, Pirate’s Booty, Spice Islands, Back to Nature, and SnackWell’s, among many others.
B&G currently sits at a #5 (Strong Sell) on the Zacks Rank after a disappointing fourth quarter and some hard-hitting analyst downgrades that sent estimates in the wrong direction. What’s next for BGS?
Q4 Results
Even though earnings and revenues missed the Zacks Consensus—the bottom line came in at 57 cents versus 59 cents, while the top line hit $473.3 million versus $490.4 million—both metrics managed to increase year-over-year. Earnings increased 96.6%, while revenues grew 14.5% from the prior-year period.
Net sales at B&G’s Base business totaled $380.9 million, declining just 0.3% year-over-year. Sales in the company’s Green Giant frozen products segment increased 23.4%, and its Pirate Brands grew 11.4% thanks to efficient promotional events and distribution gains.
But, growth seen in these brands was somewhat offset by weak consumption trends in shelf-stable and maple syrup products; heightened competition also hurt B&G’s revenues last quarter.
Additionally, gross profit margin declined 440 basis points year-over-year to 21.4% due to increased expenses in warehousing and distribution.
2018 Guidance
B&G expects net sales to be in the range of $1.72 billion to $1.755 billion, with adjusted EPS in the range of $2.05 and $2.25 per share. Adjusted EBITDA is projected to fall between $347.5 million and $365 million.
Credit Suisse Downgrade
Soon after the company reported its results, Credit Suisse analyst Robert Moskow downgraded the food stock to ‘Underperform’ from ‘Neutral’ on expectations that the company’s management will issue more downward guidance revisions.
"The EBITDA guidance for 2018 relies too heavily, in our view, the core business’s ability to increase pricing to offset freight inflation and the distribution losses in Green Giant’s canned vegetables. As has been the case historically, we expect a highly elastic response to volume when these brands raise prices,” he writes.
Moskow also noted that B&G’s recet acquisitions of complex businesses like Back to Nature Foods and Victoria Fine Foods is adding a risk to its stock, especially as the company competes with larger firms who already have an advantage in the market.
Earnings Estimates Lowered
For the current quarter, one analyst cut their outlook in the last 30 days, and the consensus has dipped from $0.56 to $0.51. Earnings are expected to decline about 12% for this time period.
Three analysts have revised their estimates downward for the current fiscal year, and earnings are expected to remain flat as of right now.
Looking at the next fiscal year, earnings could grow 7.5%, and the current consensus sits at $2.28 per share.
Can B&G Get Back on Track?
Shares of B&G are down about 23% so far this year and have declined 34% in the past one year.
Additional content:
Oracle (ORCL - Free Report) Posts Earnings Beat on Cloud Revenues +32%
Oracle Corporationjust released its latest quarterly financial results, posting non-GAAP earnings of $0.83 per share and revenues of $9.8 billion.
Currently, ORCL is a Zacks Rank #3 (Hold), but that could change based on today’s results. The stock is currently down 2% to $50.92 per share in after-hours trading shortly after its earnings report was released.
Oracle:
Beat earnings estimates. The company posted adjusted earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.72. Quarterly GAAP earnings came in at -$0.98 per share due to one-charges related to the 2017 Tax Cuts and Jobs Act.
Matched revenue estimates. The company saw revenue figures of $9.77 billion, basically in line with our consensus estimate of $9.79 billion.
Total revenues were up 6%. Cloud and On-Premise Software Revenues climbed 8%. Cloud Software as a Service revenues soared 33%. Total Cloud Revenues gained 32%.
“During FY17, I forecast double-digit non-GAAP earnings per share growth for FY18,” said Oracle CEO Safra Catz. “With non-GAAP earnings per share up 20% in Q3, our year-to-date earnings per share growth is now up to 16%. At this point, I feel quite confident that we will comfortably deliver on my original forecast of double-digit non-GAAP earnings per share growth for FY18.”
Here’s a graph that looks at Oracle’s recent earnings performance:
Oracle Corporation is a global provider of enterprise cloud computing and is empowering businesses of all sizes on their journey of digital transformation. Oracle's application suites, platforms, and infrastructure leverage both the latest technologies and emerging ones, including artificial intelligence (AI), machine learning, blockchain, and Internet of Things (IoT).
Check back later for our full analysis on ORCL’s earnings report!
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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 >>
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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.