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Hilton Grand, j2, Vale and Urban Outfitters as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL - March 7, 2018 - Zacks Equity Research highlights Hilton Grand Vacations Inc. HGV as the Bull of the Day and j2 Global, Inc. JCOM as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Urban Outfitters, Inc.URBN .

Here is a synopsis of all three stocks:

Bull of the Day :

Hilton Grand Vacations Inc. is riding the wave in travel. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth in 2018.

Hilton Grand Vacations is a global timeshare company in vacation destinations around the world. It manages two club membership programs: Hilton Grand Vacations Club and The Hilton Club for 285,000 Club Members.

Another Beat in the Fourth Quarter

On Mar 1, Hilton Grand Vacations reported its fourth quarter 2017 results and beat the Zacks Consensus for the fourth straight quarter.

It reported earnings of $0.52 which was a penny better than the Zacks Consensus Estimate of $0.51.

The company only went IPO in January 2017 so it recently celebrated its first year as a publicly traded company even though it has been operating in the timeshare business for 25 years.

Contract sales are a key metric in the industry. Hilton Grand Vacations saw an increase of 8.3% in the fourth quarter to $339 million from the year ago quarter. Tours also increased 10.7% to 83,910 in the quarter.

For the year, contract sales jumped 8.8% to $1.3 billion.

The Resort Operations and Club Management division also saw solid results in the fourth quarter, as revenue rose 10.2% year-over-year to $97 million. For the year, it saw revenue gain of 8.3% to $367 million.

Guided Above Consensus

The company is bullish on 2018.

In the fourth quarter, it announced its first ever timeshare resort in Japan. The 132-unit purpose-built development will be on Sesokojima Island, Okinawa.

It expects contract sales for the year between 6% and 8%.

Bear of the Day :

j2 Global, Inc. is in a hot area of the market with cloud services and digital media, but this Zacks Rank #5 (Strong Sell) has missed on earnings the last four quarters.

j2 Global is a mid-cap technology company with a market cap of $3.9 billion. It has two business segments: Cloud Services and Digital Media.

Cloud Services is its legacy business and offers Internet fax, virtual phone, hosted email, email marketing and online backup among other services.

The Digital Media end of the business offers technology, gaming, lifestyle and healthcare content through a range of digital properties including PCMagazine, IGN, AskMen, Offers.com, Geek.com, Everyday Health and others.

Another Miss in the Fourth Quarter of 2017

On Feb 6, j2 Global reported its fourth quarter results and missed on the Zacks Consensus Estimate by 2 cents. It reported earnings of $1.79 versus the consensus of $1.81.

It was the fourth miss in a row.

However, given its size, there are fewer analysts covering the company so the consensus tends to be based on just a few estimates.

The company saw record fourth quarter revenue which jumped 25.7% to $316.4 million from $251.8 million in the year ago quarter.

Cloud Services rose just 2.7% to $146.9 million from $143 million a year ago. Digital Media, however, jumped 55.8% to $169.5 million from $108.8 million.

The company deploys an acquisition strategy, so most of the growth comes from M&A.

j2 Global ended the quarter with $408.7 million in cash and investments even after deploying $149.4 million in the quarter.

It's a rare mid-cap company that pays a dividend, which it just raised. That dividend is currently yielding a healthy 2.1%.

Full Year Estimates Cut

The reason the stock is now a Zacks Rank #5 (Strong Sell) is the cut in the full year 2018 estimate over the last month.

The 2018 Zacks Consensus has fallen to $6.02 from $6.11 over the prior 30 days. It's still earnings growth of 6.7% compared to 2017 but it's the falling estimates that are giving it the Strong Sell rank.

Shares Stalled Out in 2017

Despite the strong cash flow and record revenue, Wall Street turned its back on the shares last year. They've fallen 2.7% over the last year.

Additional content:

Urban Outfitters Slumps Despite Q4 Earnings Beat, Positive Comps

Urban Outfitters, Inc. just released its latest quarterly financial results, posting adjusted earnings of 69 cents per share and revenues of $1.09 billion.

Currently, URBN is a Zacks Rank #3 (Hold), but that could change based on today's results. The stock is currently down 8.2% to $33.95 per share in after-hours trading shortly after its earnings report was released.

Urban Outfitters:

Beat earnings estimates . The company posted adjusted earnings of $0.69 per share, surpassing the Zacks Consensus Estimate of $0.63.

Matched revenue estimates . The company saw revenue figures of $1.09 billion, meeting our consensus estimate of $1.09 billion.

Comparable Retail segment sales increased 4% from the year-ago period, driven by double-digit growth in the digital channel and partially offset by negative retail store sales. Comps at Free People increased 8%, while Anthropologie comps gained 5% and Urban Outfitters comps increased 2%.

"I am pleased to announce that URBN produced record Q4 sales primarily driven by positive 'comps' at all three brands," said CEO Richard A. Hayne. "We are particularly pleased with how well the brands transitioned in January. Positive customer reaction to the new spring fashion offerings at all our brands has been strong and makes us optimistic regarding the first half of the year."

Urban Outfitters, Inc. Price, Consensus and EPS Surprise | Urban Outfitters, Inc. Quote

Urban Outfitters, Inc. is an innovative specialty retailer and wholesaler which offers a variety of lifestyle merchandise to highly defined customer niches through stores in the United States. The company owns and operates stores and websites under the Urban Outfitters, Anthropologie, and Free People brands.

Check back later for our full analysis on URBN's earnings report!

Want more market analysis from this author? Make sure to follow @ Ryan_McQueeney on Twitter!

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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://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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j2 Global, Inc. (JCOM): Free Stock Analysis Report

Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report

Urban Outfitters, Inc. (URBN): 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.

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