For Immediate Release
Chicago, IL – August 6, 2018 – Zacks Equity Research highlights BG Staffing, Inc. (BGSF - Free Report) as the Bull of the Day, Cedar Fair Entertainment Company (FUN - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Walt Disney Company (DIS - Free Report) , Twenty-First Century Fox (FOXA - Free Report) and Snap Inc. (SNAP - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
BG Staffing, Inc. posted yet another record quarter as the labor market remains tight. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by the double digits in both 2018 and 2019.
BG Staffing is a small cap staffing company headquartered in Plano, Texas, that is primarily a professional temporary staffing platform. It specializes in technology, accounting, light industrial, such as forklift drivers, and multifamily real estate staffing including front office staff for leasing offices and onsite engineers at apartment buildings.
In 2017, it was the 60th largest staffing company in the United States.
Another Beat in the Second Quarter
On July 27, BG Staffing reported its second quarter results and surprised on the Zacks Consensus Estimate by a whopping 24 cents. Earnings were $0.54 versus the consensus of $0.30.
It was the 7th consecutive earnings beat in a row.
Revenue rose 3.2% year-over-year to $70.9 million from $68.7 million.
Gross profit jumped 11.4%.
The company said the multifamily segment was especially strong.
Estimates Rise for 2018 and 2019
The analysts are already bullish with 1 estimate moving higher since the earnings report.
The 2018 Zacks Consensus Estimate has jumped to $1.49 from $1.36 over the last week. That's earnings growth of 47.5% as it only made $1.01 in 2017.
The Zacks Consensus Estimate for 2019 also rose to $1.82 from $1.70 since the report. That's another 22.2% earnings growth.
Bear of the Day:
Cedar Fair Entertainment Company missed second quarter estimates as attendance at its parks dropped. This Zacks Rank #5 (Strong Sell) also warned that it might not be able to meet its full year guidance.
Cedar Fair operates 11 amusement parks across the United States including Knott's Berry Farm, Kings Island and its flagship, Cedar Point. It also operates two outdoor water parks, one indoor water park and four hotels.
Big Miss in the Second Quarter
On Aug 1, Cedar Fair reported its second quarter results and missed on the Zacks Consensus Estimate by $0.53, or 57%. It reported $0.39 versus the consensus of $0.92.
Bad weather in the Mid-Atlantic region and a delayed ride opening at California's Great America, combined with a decrease in the number of season passes sold at Kings Island, impacted early season attendance which fell 2% to 8.7 million.
Cedar Fair did see an increase in the average in-ark per capita spending driven by more spending on food and beverage, merchandise and extra charge attractions.
Additionally, its four hotels are performing well with higher occupancy rates and higher average daily room rates.
Rising costs hurt though, as labor costs rose due to the rise in minimum wages in many locations.
July Looked Weak
The company gave an update on what was happening in July, through the first 7 months of the year, and revenue was still down 2% compared to 2017.
The decrease in revenue was attributable to a 3%, or 480,000-visit, decrease in attendance to 14.6 million guests.
Because they haven't seen any pickup in momentum in July, and it is the company's peak month, it's unclear if they will meet their full year revenue guidance.
The company will provide another update in the September conference call.
Estimates Being Lowered
Given the big second quarter miss and uncertainty about the full year, the analysts are already moving to lower their 2018 and 2019 estimates.
One estimate was lowered in the last week for 2018 which has pushed the Zacks Consensus Estimate down to 43.13 from $3.44 thirty days ago. That's a decline of 22.7% as the company made $4.05 in 2017.
2 estimates have also been lowered for 2019 in the last 7 days. That has pushed the Zacks Consensus down to $3.53 from $3.87.
Upcoming Earnings to Watch: DIS, FOXA, SNAP
The week of July 30 was another busy one during second-quarter earnings season. Apple blew investors away on its way to its historic $1 trillion market cap, while Tesla continued its polarizing ways. All of the FANG stocks have now reported, but the week of August 6 is full of big names as well.
Apple’s quarterly earnings soared by 40% to reach $2.34 per share, coming in above the Zacks Consensus Estimate. Apple’s fiscal Q3 revenues climbed 17% to hit $53.27 billion, also topping our estimate. Meanwhile, the electric car power posted a larger-than-expected quarterly loss but did surpass revenue estimates.
Many investors are also still sorting out what to do with Facebook and Netflix going forward, while Amazon and Alphabet seem poised for continued growth. But, there are still some major players set to report their quarterly earnings.
Luckily, investors can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. With that said, let’s take a look at three of the most important reports during the week of August 6.
The Walt Disney Company
Disney is set to officially purchase a huge chunk of 21st Century Fox’s business after Comcast bowed out of the race. The firm hopes its acquisition, which includes Fox’s film and TV studio, will help it better compete in the age of Netflix and Hulu. Furthermore, Disney will roll these key Fox assets into its own streaming service that is due out at some point in late 2019.
Shares of DIS are up roughly 12% over the last three months. And our current Zacks Consensus Estimate is calling for the company’s quarterly revenues to climb by 8.8% to hit $15.49 billion. Disney’s quarterly earnings are projected to surge by over 24% to reach $1.97 per share. However, our earnings estimate has fallen by $0.08 over the last 30 days, which means analysts are less positive about DIS than they were a few months ago.
The entertainment powerhouse is set to release its quarterly financial after the close of regular trading on Tuesday, August 7.
Twenty-First Century Fox
Now let’s move onto the media company that plans to sell a large portion of its business to Disney. FOXA has seen its stock price soar nearly 60% over the last year, with much of the gains coming on the back of last November’s initial news that Disney was in pursuit. Shares of Fox have cooled slightly recently, after a strong climb during the last three months.
The company is expected to see its quarterly earnings skyrocket by over 47% to $0.53 per share. FOXA’s revenues are projected to hit $7.75 billion, which would mark a nearly 15% climb from the year-ago period. This is rather impressive for a company of its age and size. Plus, Rupert Murdoch’s firm has topped quarterly earnings estimates in seven out of the last eight periods.
Fox is set to report its quarterly earnings results after the closing bell on Wednesday, August 8.
Snap has the unfortunate burden of following Facebook and Twitter, which both disappointed investors recently. This could turn into a positive for the struggling social media company since a strong report might look better by comparison, but shares of SNAP are down roughly 8% over the last six months.
Snapchat has failed to gain the traction that many investors hoped, and has fallen victim to Instagram’s growing popularity. Luckily, the company is expected to see its revenues soar over 38% to hit $251.71 million. Yet, at the other end of the income statement, SNAP is projected to post another quarterly loss, this time of $0.17 per share, which would mark over a 6% decline from the year-ago period.
Snap is set to report its Q2 financial results after market close on Tuesday, August 7.
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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.
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