Chicago, IL - May 14, 2015- Zacks Equity Research highlights AMC Networks ( AMCX ) as the Bull of the Day and Ultimate Software ( ULTI ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla Motors, Inc.(TSLA ), American Axle & Manufacturing Holdings Inc. ( AXL ) and PACCAR Inc. ( PCAR ).
Here is a synopsis of all five stocks:
Thanks in large part to the success of shows like 'Better Call Saul' and 'The Walking Dead' , AMC Networks ( AMCX ) delivered Q1 results that blew past expectations. This prompted analysts to revise their estimates significantly higher for both 2015 and 2016, sending the stock to a Zacks Rank #1 (Strong Buy).
While shares initially jumped on the report, they have given back those gains, providing investors with an attractive buying opportunity.
AMC Networks owns and operates the cable TV channel AMC, along with IFC, SundanceTV, WE tv, BBC AMERICA and IFC Films. It is headquartered in New York City and has a market cap of $5.4 billion.
AMC Networks delivered better-than-expected first quarter results on May 4. Adjusted earnings per share came in at $1.76, crushing the Zacks Consensus Estimate of $1.55. It was a 69% increase over the same quarter last year.
Net revenues surged 28% to $669 million, well ahead of the consensus of $649 million. This was driven by strong growth in advertising revenues as a result of strong demand for its original programming, particularly for 'Better Call Saul' and 'The Walking Dead' on AMC.
Profit margins expanded as the company leveraged its selling, general and administrative expenses. Meanwhile, adjusted operating cash flow soared 55% year-over-year to $259.2 million.
Earnings estimates have been falling for Ultimate Software ( ULTI ) after the company reported its first quarter results on April 28. The drop in consensus has been significant enough to send the stock to a Zacks Rank #5 (Strong Sell), putting it in the bottom 5% of all companies we rank based on earnings momentum.
Meanwhile, shares of Ultimate Software trade at a lofty 115x forward earnings as investors apparently still have very high expectations for the company.
Ultimate Software provides human resources, payroll, and talent management software through a cloud-based, software-as-a-service model. Its flagship product is UltiPro.
The company is headquartered in Weston, Florida and has a market of $4.7 billion.
Ultimate Software reported its first quarter results on April 28. Adjusted earnings per share (which excludes amortization of acquired intangibles but includes stock-based compensation expense) came in at $0.15, well below the consensus of $0.27. It was a 38% decrease from adjusted EPS in the same quarter last year.
Additional content:
Tesla (TSLA) Allowed to Sell Direct in Maryland
Tesla Motors, Inc.(TSLA ) will be able to directly sell cars to consumers in Maryland following the recent signing of a bill by the state's Governor. The bill, slated to be effective Oct 1, 2015, allows a manufacturer or distributor to be licensed as a vehicle dealer as long as it sells only electric or non-fossil-fuel-burning vehicles.
As Tesla manufactures only electric vehicles, it falls within the category specified in the bill. Hence, the automaker will be allowed to sell cars through its retail stores in Maryland. However, Tesla will be permitted to open a maximum of four stores in the state.
Tesla is facing opposition to its direct-selling model in some U.S. states such as Texas, Arizona, Michigan and West Virginia that have banned the direct sales of vehicles by any automaker. Many other states that had earlier imposed a ban on direct selling, have now allowed it.
Last week, the Governor of Georgia signed a bill that removed a sales cap of 150 cars per year. The bill also increased the limit on the number of Tesla's stores to five from three.
In March, the Governor of New Jersey signed a bill allowing direct selling by zero-emission vehicle manufacturers, provided they run a service center in the state. Connecticut is also considering permitting direct sales of Tesla's electric vehicles in the state.
Tesla currently carries a Zacks Rank #4 (Sell). Better-ranked automobile stocks include American Axle & Manufacturing Holdings Inc. ( AXL ) and PACCAR Inc. ( PCAR ), which sport a Zacks Rank #1 (Strong Buy).
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AMC NETWORKS- A (AMCX): Free Stock Analysis Report
ULTIMATE SOFTWR (ULTI): Free Stock Analysis Report
TESLA MOTORS (TSLA): Free Stock Analysis Report
AMER AXLE & MFG (AXL): Free Stock Analysis Report
PACCAR INC (PCAR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
