For Immediate Release
Chicago, IL – May 17, 2018 – Zacks Equity Research highlights The Trade Desk (TTD - Free Report) as the Bull of the Day, Scotts Miracle-Gro Co. (SMG - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Cisco Systems, Inc. (CSCO - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
Trading publicly since 2016, The Trade Desk is a company that specializes in programmatic advertising. It utilizes a self-service, cloud-based computer platform where ad buyers create, manage, and optimize data-driven digital advertising campaigns; these campaigns include display, video, audio, native, and social, all across a multitude of devices like computers, cell phones, and connected TV.
The Trade Desk is headquartered in Ventura, CA, and operates primarily in the U.S., Europe, and Asia.
Blowout Earnings Send Shares Soaring
The Trade Desk absolutely crushed estimates across the board for its fiscal 2018 first quarter.
Revenues surged 61% year-over-year, hitting $86 million and soaring way past the consensus estimate of $73 million. Adjusted income came in at $15.3 million, which produced earnings of 34 cents per share, handily beating the Zacks Consensus Estimate of 10 cents per share.
The company noted that much of this quarter’s growth came from its key divisions: mobile, video, connected TV, and audio. In particular, growth in mobile video was up 160% year-over-year and mobile in-app revenue grew 110%, while connected TV ads skyrocketed 2,000%.
Additionally, customer retention rates were above 95% for the 18th consecutive quarter.
As a result, TTD stock rallied well over 46%, or up around $24, clearly suggesting investors loved this report.
The Trade Desk increased its 2018 full-year outlook, and is now expecting revenues of at least $433 million, with adjusted EBITDA of $133 million.
Both figures are up 40% year-over-year from fiscal 2017 levels.
As for Q2, the company anticipates revenue of $103 million and adjusted EBITDA of $30 million.
For TTD, its bottom line is trending upward for the foreseeable future.
While earnings are expected to decline about 17.3% for the current quarter, five analysts have revised estimates upwards recently; none have cut their outlook for the period during the same time period. The Zacks consensus has moved seven cents higher in the past 60 days.
Fiscal 2018 figures are looking pretty great, with five upwards estimates in the past two months. The Zacks consensus estimate trend has jumped from $1.67 per share to $1.97 per share.
Analysts are feeling optimistic for fiscal 2019 as well, with five moving their estimate higher in the last 60 days.
Bear of the Day:
Known for its popular lawn and garden care products, Scotts Miracle-Gro Co. is one of the most recognized names in the gardening industry. Its U.S. brands include Scotts, Miracle-Gro, Ortho, and Smith & Hawken. The company’s customers are wide-ranging, from home improvement centers and hardware chains to nurseries and specialty crop growers.
Over the years, Scotts has been making a name for itself in the marijuana industry. It has been developing potting soil specifically for growing marijuana, as well as acquiring key hydroponics companies.
Disappointing Q2 Results
The Zacks Rank #5 (Strong Sell) stock reported second quarter fiscal 2018 results a couple of weeks ago, and both earnings and revenues missed our consensus estimate.
EPS was $2.88 per share, falling way behind the Zacks Consensus of $3.42 per share.Revenues fell 7% year-over-year to $1.01 billion, while U.S. Consumer segment sales were down 6% and Hawthorne segment sales were down 29% to $41.8 million.
The decline in revenues was primarily due to a delayed start to the lawn and garden season in the U.S after a long winter. CEO Jim Hagedorn also noted that “consumer purchases entering May are down double digits from a year ago” but in markets like California and Florida, consumer purchases were in-line with last year’s results.
Company-wide gross margin declined 240 basis points to 40.4%.
Estimates took a hit in the days following the report.
For the current quarter, two analysts cut their outlook in the last 60 days, and the consensus has dipped nine cents from $2.77 to $2.98 per share. Earnings are only expected to grow around 1.9% for the quarter.
Five analysts have revised their estimates downward for the current fiscal year, and earnings are projected to increase a minimal 1%. The consensus has decreased from $4.68 to $3.98 per share.
Looking at the next fiscal year, earnings could grow about 20%, and the current consensus sits at $4.80 per share.
Can SMG Stock Turn Around?
Shares of Scotts Miracle-Gro are down 18% so far this year and have slipped about 2% in the past year. Compared to the S&P 500, the index has gained 1.9% and 15.6%, respectively.
The company is currently trading at a forward P/E of 21.2X.
Cisco Narrowly Beats Q3 Earnings, Revenue Estimates
Cisco Systems, Inc. just released its third quarter fiscal 2018 financial results, posting adjusted earnings of $0.66 per share and revenues of $12.46 billion.
Cisco is currently a Zacks Rank #2 (Buy), which is subject to change based on today’s results. Shares of Cisco are up nearly 32% over the last year. The company’s stock price did dip 0.70% on Wednesday to hit $45.16 per share prior to the release of its quarterly earnings results.
Cisco stock is currently down 3.32% to $43.66 in after-hours trading shortly after its earnings report was released.
Beat earnings estimates. The company posted adjusted earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.65 per share.
Beat revenue estimates. The company saw revenue figures of $12.46 billion, just topping our consensus estimate of $12.42 billion.
Cisco saw its quarterly revenues climb by roughly 4% from $11.94 billion in the year-ago period. Meanwhile, the company’s earnings surged 10% from $0.60 per share.
Looking ahead, Cisco expects to post adjusted fourth quarter earnings between $0.68 and $0.70 per share, which falls in line with our current Q4 estimate of $0.68 per share. The company also expects its Q4 revenues will climb between 4% and 6%. Our current estimate is calling for revenues to pop by 4.75% to hit $12.71 billion.
Here’s a graph that looks at CSCO’s Price, Consensus and EPS Surprise history:
Check back later for our full analysis on CSCO’s earnings report!
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About the Bull and Bear of the Day
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