For Immediate Release
Chicago, IL – November 16, 2018 – Zacks Equity Research Shoe Carnival (SCVL - Free Report) as the Bull of the Day, Dean Foods (DF - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Salesforce (CRM - Free Report) , VMware, Inc. (VMW - Free Report) and HP Inc. (HPQ - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Based in Evansville, IN, Shoe Carnival is one of the biggest footwear retailers in the country. In its stores, Shoe Carnival offers a wide variety of dress, casual, and athletic shoes for men, women, and children, and the company emphasizes national and regional name brands throughout its selection.
Better-Than-Expected Q3 Earnings
Shoe Carnival’s third quarter results showed nice growth overall for this retailer.
Earnings of 76 cents per share easily beat the Zacks Consensus Estimate of 61 cents, and marks the company’s sixth consecutive earnings beat.
Revenues totaled $269 million also beat our consensus estimate, and same-store sales growth of 4.5% came ahead of the analyst estimate of 4.1%.
Cliff Sifford, President and CEO, commented in the earnings release, “We are pleased with our strong third quarter sales results, which reflect growth in all geographic regions and virtually all of our product categories.”
As a result, Shoe Carnival raised its fiscal 2018 sales and EPS guidance.
The retailer now expects sales in the range of $1.020 billion and $1.022 billion, up from $1.016 billion to $1.020 billion. EPS is now projected to fall between $2.36 and $2.38, up from previous guidance of $2.07 to $2.15. Same-store sales growth is expected at 3.5%.
Bear of the Day:
Dean Foods is one of the largest processors and direct-to-store distributors of milk in the U.S., and markets their products under more than 50 local and regional dairy brands and private labels. Besides milk, Dean Foods distributes ice cream, cultured products, juices, teas, and bottled water.
Its brand portfolio includes DairyPure, TruMoo, Land O’ Lakes, Country Fresh, Meadow Gold, Dean’s, and many others.
Shares of Dean Foods have experienced volatile stretches throughout 2018, and the stock is down over 50% since the start of the year.
Disappointing Q3 Earnings
The stock took an especially big hit, falling 10%, after the company reported results for its third quarter.
Earnings swung to a loss, coming in at an adjusted loss of 28 cents per share and missing the Zacks Consensus Estimate if a loss of 6 cents.
Revenues of $1.89 billion managed to beat our consensus but was down from $1.94 billion last year.
One of the biggest factors affecting Q3 results was plant closures. Dean Foods closed and consolidated seven plants, and redistributed that volume into 23 other facilities.
Dean Foods also lowered its outlook for 2018, cutting EPS and cash flow guidance.
Upcoming Tech Earnings to Watch: CRM, VMW, HPQ
Third quarter earnings season is wrapping up, with reports out from nearly all of the S&P 500 members. With that said, we are still waiting on some potentially significant results from some major tech companies. So let’s see what to expect from Salesforce, VMware, Inc. and HP Inc.
At this point, 484 S&P 500 members, or 96.8% of the index’s total membership, have reported their quarterly financial results. Total earnings for these companies are up 25.6% from the same period last year on the back of 8.4% higher revenues. Plus, 78.9% have topped EPS estimates and 64.7% have come in above revenue estimates. Despite these strong results and solid reports from the likes of Walmart, Macy’s and other retailers recently, tech stocks have continued to drag down the market as a whole, fueled by Apple, Amazon and other FAANG stock selloffs.
Therefore, understanding what to expect from some tech companies during the week of November 26 is vital as they could help bring about a small turnaround. With some help from the Zacks Earnings Calendar let’s take a closer look at a few important tech stocks and what to expect from their earnings announcements.
Salesforce boasts over 150,000 business clients, including giants like U.S. Bancorp. The cloud-based customer relationship management firm’s stock had been cruising along until the recent selloff. In fact, CRM stock was down roughly 1% through mid-morning trading Friday to $122.40 per share, which marked a roughly 24% downturn from its 52-week high of $161.19.
Looking ahead, Salesforce’s third-quarter revenues are projected to jump 25.6% to reach $3.37 billion, based on our current Zacks Consensus Estimate. The company’s revenues grew 27% in Q2 and 25% in the year-ago quarter. Meanwhile, Salesforce’s adjusted quarterly earnings are projected to climb by 28.2% to hit $0.50 per share.
Salesforce is currently a Zacks Rank #3 (Hold) based on its earnings estimate revision trends. The company is scheduled to release its Q3 financial results on Tuesday, November 27.
VMware stock has trended upward over the last month amid the broader market downturn. The cloud computing company’s shares were up 1.7% through morning trading Friday at $152.10 per share. Still, VMW stock is down 8% from its year-long high of $165.00 per share.
The Palo Alto-based tech firm is expected to post adjusted quarterly earnings of $1.50 per share, which would mark a nearly 12% jump from the year-prior quarter. VMware’s revenues are projected to climb 9.7% to reach $2.17 billion. We should also note that the company hasn’t seen any earnings estimate revisions over the last 90 days and it is currently a Zacks Rank 3# (Hold).
VMware plans to release its third quarter financial results after the market closes on Thursday, November 29.
Shares of HPQ hovered at around $22.60 per share through morning trading Friday, down roughly 16% from their 52-week high of $27.08. We should note that HP stock has been hit relatively hard since early November. HP, which sells printers, PCs, and mobile devices, is expected to see its quarterly revenues surge 9.3% from the year-ago quarter to reach $15.22 billion.
At the bottom end of the income statement, HP is projected to report adjusted quarterly earnings of $0.54 per share, which would represent a 22.7% climb. HPE, like its fellow tech firms that we have discussed, is currently a Zacks Rank #3 (Hold) that sports an “A” VGM score.
HP is scheduled to report its fiscal Q4 results on after the closing bell on Thursday, November 29.
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