Movado, Signet, Children???s Place and Alphabet as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 24, 2018 – Zacks Equity Research highlights Movado Group MOV as the Bull of the Day and Children’s Place PLCE as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet Inc. GOOGL.
Here is a synopsis of all three stocks:
Movado Group is a leading global watchmaker that designs, manufactures, and distributes watches from some of the most recognized and respected names in time: Movado, Concord, Ebel, Olivia Burton, Coach, Hugo Boss, Lacoste, Tommy Hilfiger, Scuderia Ferrari, Rebecca Minkoff, and Uri Minkoff. Collectively, their timepieces are sold throughout North and South America, Europe, and Asia.
Movado, the flagship brand within the Movado Group portfolio, was founded in Switzerland in 1881 and acquired by the parent company in 1983.
Q4 Results Send Shares Soaring
Last month, the Zacks Rank #1 (Strong Buy) Movado knocked it out of the park when it released results for its fiscal 2018 fourth quarter.
Earnings of 52 cents surged past the Zacks Consensus of 26 cents per share, while revenues of $149 million also beat our consensus estimate and grew 14.1% year-over-year. The company also saw a solid 6.4% increase in comparable-store sales.
As a result, shares of MOV shot up nearly 16% in response to this beat on both the top and bottom line.
Chairman and CEO Efraim Grinberg credited the company’s outperformance last quarter to strong momentum within its owned and licensed brands, and this includes the $84 million acquisition of Olivia Burton from last year. Movado also saw accelerated growth in the UK, France, and Germany.
Management expects net sales in the range of $605 million to $615 million, compared to Wall Street’s estimates for full fiscal-year sales of just $571 million.
Additionally, Movado increased its quarterly dividend by 54% to $0.20 per share, an outcome of the company’s strong balance sheet; Movado ended Q4 with $214.8 million in cash at the end of the quarter and expects benefits from the recent tax reform.
“As we focus on expanding our online presence given an evolving retail landscape, we are encouraged by the progress made in the quarter with our digital initiatives in support of our global portfolio,” notes Grinberg.
For MOV, its bottom line is trending upward for the foreseeable future.
Earnings are expected to grow an astounding 1,100% for the current quarter. While no analysts have revised estimates upwards recently, the Zacks consensus has moved from $0.11 to $0.12 in the past 30 days.
Fiscal 2019 figures are also looking pretty great, with 2 estimates moving higher in the past two months. The Zacks consensus estimate trend has jumped from $1.92 per share to $2.24 per share.
Earnings estimates for fiscal 2020 are on the rise as well. The current consensus sits at $2.39 per share, and earnings are expected to grow almost 7% from this year.
Based in Secaucus, NJ, The Children’s Place (PLCE)is one of the largest pure-play children’s specialty apparel retailers in the market today. It designs, contracts to manufacture, sells, and licenses to sell fashionable, high-quality merchandise at value prices, primarily under the proprietary The Children’s Place, Place and Baby Place brand names.
The Children’s Place operates over 1,000 stores in the U.S., Canada, and Puerto Rico, in addition to its online store and 190 international points of distribution, which are operated by seven franchise partners in 19 countries.
PLCE reported decent fourth quarter results, but analysts didn’t seem too impressed with guidance, and the stock is currently sitting at a #5 (Strong Sell) on the Zacks Rank. What’s next for this children’s apparel stock?
Shares Fall Despite Q4 Beat
Last month, The Children’s Place reported earnings of $2.52, which was its sixth-straight quarter of positive earnings surprise.
Revenues were up 9.4% year-over-year to $570 million, and this number came in line with the consensus mark. Comparable retail sales increased 8.2% thanks to robust sales in all geographies and channels.
Adjusted gross profit grew 12.3% year-over-year to $211.1 million, while gross margin expanded 90 basis points (bps) to 37%.
However, shares of PLCE declined nearly 8% after the report was released, which was primarily due to soft Q1 and fiscal 2018 guidance.
Management projects adjusted EPS in the range of $7.95 to $8.20 for the year and a band of $2.21 to $2.22 for the quarter, well below the Zacks Consensus of $8.95 per share and $2.53 per share at the time, respectively.
Earnings Outlook Lowered
As a result, estimates took a hit in the days following the report.
For the current quarter, three analysts cut their outlook in the last 60 days (though one has changed course during that same time period), and the consensus has dipped from $2.47 to $2.22 per share. But, earnings are expected to grow about almost 14% for the quarter
Five analysts have revised their estimates downward for the current fiscal year, and earnings are expected to only grow 3%. The consensus has fallen from $9.02 to $8.15 per share.
Alphabet (GOOGL) Post Earnings Beat, Other Revenues Climb 35%
Alphabet Inc.just released its latest quarterly financial results, posting diluted earnings of $13.33 per share and total revenues of $31.15 billion.
Currently, GOOGL is a Zacks Rank #4 (Sell), but that could change based on today’s results. Shares of the internet behemoth have climbed nearly 24% over the past year but closed the trading day about 0.8% lower.
The stock is currently flat in after-hours trading shortly after its earnings report was released.
Beat earnings estimates. The company posted diluted earnings of $13.33 per share. This figure includes a $3.40 per share benefit from a new accounting standard that changes the way companies account for equity security investments. Taking out this benefit, Alphabet reported earnings of $9.93 per share, beating the Zacks Consensus Estimate of $9.21. Investors should note that this consensus projection has trended lower over the duration of the quarter.
Beat revenue estimates. The company reported total revenues of $31.15 billion. Taking out revenues from Google Network Members, the company saw revenue figures of $26.5 billion, surpassing our consensus estimate of $24.29 billion.
Total revenue was up 26% on a year-over-year basis and 23% on a constant-currency basis. Operating income reached $7.00 billion, while operating margin was 22%. Free cash flow reached $4.34 billion in the quarter.
“Our ongoing strong revenue growth reflects our momentum globally, up 26% versus the first quarter of 2017 and 23% on a constant currency basis to $31.1 billion. We have a clear set of exciting opportunities ahead, and our strong growth enables us to invest in them with confidence,” said CFO Ruth Porat.
Alphabet now includes Nest in its Google other revenues segment. Adjusting for this change, revenue in this unit climbed about 35.5% to touch $4.35 billion. Google other revenues also includes the company’s growing hardware business, which features products like the Pixel and Home.
Alphabet Inc. is engaged in technology business. The company provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce and hardware products through its subsidiaries. Alphabet Inc., formerly known as Google Inc., is headquartered in Mountain View, California.
Check back later for our full analysis on GOOGL’s earnings report!
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