For Immediate Release
Chicago, IL – April 03, 2017 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includesAcuity Brands (NYSE: AYI – Free Report ), Monsanto (NYSE: MON – Free Report ), Constellation Brands (NYSE: STZ – Free Report ), Walgreens-Boots (NASDAQ: WBA – Free Report ) and CarMax (NYSE: KMX – Free Report ).
To see more earnings analysis, visithttp://ift.tt/1OITq86.
Every day, Zacks.com makes their Bull Stock of the Day available, free of charge. To see it, click here .
Handicapping Q1 Earnings Season
The Q1 earnings season has gotten underway with earnings reports from 17 S&P 500 members already out. All of these initial Q1 earnings reports are from companies that have their fiscal quarters ending in February, which form part of our Q1 earnings tally. The results thus far are tracking better than what we have been seeing from this same group of 17 index members, but it’s premature to draw any firm conclusions from the unrepresentative sample at this stage.
This Week’s Key Reports include:
Acuity Brands (NYSE:AYI – Free Report ) – Acuity Brands, the maker and distributor of lighting fixtures, reports results before the market’s open on Tuesday, April 4th, with the company expected to earn $1.70 per share on $825 million in revenues. Acuity shares have struggled lately, with the stock losing ground following each of the last two quarterly earnings releases. Estimates have been coming down in the run up the Q1 earnings release, with the current $1.70 per share estimate down from $1.99 per share three months ago. The stock is down -11.4% in the year-to-date period, underperforming the Zacks Construction sector (up +7.8%) and the S&P 500 index (up +5.7%).
Monsanto (NYSE:MON – Free Report ) – Monsanto reports results before the market’s open on Wednesday, April 5th, with company expected to earn $2.76 per share on $4.82 billion in revenues, up +14.1% and +6.3% from the year-earlier period, respectively. The stock has been a strong performer lately, up +8% this year on a steadily improving earnings outlook, outperforming the Zacks Basic Materials sector (up +7.1%) and the S&P 500 Index (+5.7%) in the same time period. The stock was up following positive surprises in each of the last three quarters. The revisions trend has been positive, with the current $2.76 per share EPS estimate for Q1 up +10.8% over the last three months.
Constellation Brands (NYSE:STZ – Free Report ) – Spirits maker Constellation Brands reports results on Thursday, April 6th. The company is expected to earn $1.37 per share on $1.59 billion in revenues, up +14.9% and +2.8% from the year-earlier period, respectively. The stock was down following the last earnings release when it beat on the top- and bottom-lines, but guided lower. Year to date, the stock is up +6.1% vs. +7% gain for the Zacks Consumer Staples sector.
Other notable reports this week include Walgreens-Boots (NASDAQ:WBA – Free Report ) on Wednesday and CarMax (NYSE: KMX – Free Report ) on Thursday.
Expectations for Q1
Total Q1 earnings are expected to be up +6.5% from the same period last year on +6.4% higher revenues. This would follow +7.4% earnings growth in 2016 Q4 on +4.7%, the highest growth pace in all most two years.
Estimates for Q1 have come down as the quarter has unfolded, with the current +6.5% growth down from +10.4% at the end of December.
Please note that while Q1 estimates have followed well traversed path that we have been seeing consistently over the last few years, the magnitude of negative revisions compares favorably to other periods, particularly in the first half of last year and all of 2015. In other words, Q1 estimates have come down, but they haven’t come down by as much.
Please note that the Q1 earnings season would follow the strong showing on the earnings front in the preceding reporting cycle. Not only did 2016 Q4 growth reach the highest in two years, but total earnings for the quarter also reached a new quarterly record. The strong Q4 performance came after the first positive earnings growth in 2016 Q3, having declined in each of the preceding 5 quarters.
Expectations Beyond Q1
Please note that the earnings backdrop has not changed in any meaningful way since the November elections, notwithstanding the market’s strong gains since then. The only exception to this comment is the Finance sector whose earnings outlook has improved as a result of the uptrend in interest rates since November 8th. It is reasonable to expect that earnings estimates will move favorably once the new administration’s growth-friendly policies get enacted. For now, however, estimates are following the long-established trend of coming down.
Note: Sheraz Mian manages the Zacks equity research department. He is an acknowledged earnings expert whose commentaries and analyses appear on Zacks.com and in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He manages the Zacks Top 10 and Focus List portfolios and writes the Weekly Market Analysis article for Zacks Premium subscribers.
Our Best Private Investment Ideas
If you’d like to see specific recommendations to capitalize on current market conditions, there is a way you can follow all Zacks' private buys and sells in real time. Our experts cover everything from earnings surprises and insider buys to stocks under $10 and ETFs. Starting today, for the next month, you can have unrestricted access to all of our exclusive portfolios. Click here for Zacks' private trades >>
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Click to subscribe to this free newsletter today .
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros .
Get the full Report on AYI - FREE
Get the full Report on MON - FREE
Get the full Report on STZ - FREE
Get the full Report on WBA - FREE
Get the full Report on KMX - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: http://ift.tt/1OIT6Go
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
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. http://ift.tt/O9dQvd .
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://ift.tt/1NQALJw for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Acuity Brands Inc (AYI): Free Stock Analysis Report
Monsanto Company (MON): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report
CarMax Inc (KMX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
April 03, 2017 at 07:24PM
http://ift.tt/2nSrUkA
from Zacks Equity Research
http://ift.tt/2nSrUkA
No comments:
Post a Comment