For Immediate Release
Chicago, IL - October 25, 2017 - Zacks Equity Research highlights PayPal HoldingsPYPL as the Bull of the Day and General ElectricGE as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Chipotle Mexican GrillCMG , AT&TT and Advanced Micro DevicesAMD .
Here is a synopsis of all five stocks:
Headquartered in San Jose, CA, PayPal Holdings is a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The company was spun-off from eBay in 2015.
They facilitate customers to pay and get paid, withdraw funds from their bank accounts and hold balances in their PayPal accounts in various currencies.
They also provide ways for businesses to accept payments from merchant websites, mobile devices and applications, and at offline retail locations through a wide range of payment solutions. Their payments platforms include PayPal, PayPal Credit, Venmo and Braintree products.
The company reported excellent Q3 2017 results, beating the Zacks Consensus Estimates on both the top and bottom lines. The management also raised the guidance for the year.
Adjusted earnings of 46 cents per share were ahead of our consensus by 2 cents and up 31.4% year over year. Net revenue of $3.24 billion also beat the Zacks Consensus Estimate by $66 million and was up 21.4% on a year-over-year basis. It was also ahead of the company's own guidance.
"PayPal delivered one of its strongest quarters since becoming an independent company. Putting our customers first in everything we do, enhancing our suite of products and services, and partnering with some of the world's most popular brands are delivering tangible results," said the CEO. "As the world rapidly accelerates to digital payments, we have a tremendous opportunity in front of us."
Rising Earnings Estimates
Analysts have raised their estimates for the company after excellent earnings. Zacks Consensus Estimates for the current and next fiscal year have increased to $1.85 per share and $2.25 per share from $1.84 and $2.20, before the results.
General Electric is one of the largest and the most diversified technology and financial services companies in the world. Its products and services range from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, and industrial products.
The company reported adjusted earnings of 29 cents per share, missing the Zacks Consensus Estimate of 50 cents by 41%. Revenues were however ahead of our estimate.
The company also significantly lowered its guidance for FY 2017. The company currently expects operating earnings of $1.05-$1.10 per share, significantly down from earlier guidance of $1.60-$1.70.
Analysts have lowered their estimates for the company after weak earnings. Zacks Consensus Estimates for the current and the next fiscal year have fallen to $1.44 per share and $1.47 per share from $1.56 and $1.66 respectively, 30 days back.
Chipotle, AT&T Miss Q3 Earnings, AMD Beats
Chipotle Mexican Grill , while posting big earnings growth numbers year over year, missed the Zacks consensus estimates on both top and bottom lines in its fiscal Q3 2017. Earnings of $1.33 per share missed the $1.56 expected, whereas quarterly sales of $1.13 billion came in lower than the $1.33 billion estimate.
Same-store comps year over year only grew 1%, beneath the 1.2% anticipated, reportedly on losses due to last month's Hurricanes Harvey and Irma in Texas and Florida. The Zacks Rank #5 (Strong Sell) company is selling off more than 7% at this hour in late trading. For more info on Chipotle's Q3 earnings, click here.
The second-largest telecom provider in the U.S., AT&T , posted a Q3 earnings miss after the closing bell today, missing the Zacks consensus estimate of 75 cents per share by a penny. Revenues were also lighter than expected, raking in $39.67 billion as opposed to the $40.27 billion we had expected. Shares are down just modestly in after-market trading.
Peeking beneath the headline numbers, AT&T reported it had its best wireless results ever. The company totaled 3 million net subscriber adds, while the telecom major experienced lower churn rates in the quarter, another positive development. For more info on AT&T's Q3 earnings, click here.
On the other hand, Silicon Valley's Advanced Micro Devices easily outperformed expectations on both earnings and sales for its Q3 results: earnings of 10 cents per share topped the 8 cents in the Zacks consensus (as well as more than tripling the year-ago quarter's 3 cents per share), while $1.64 billion in revenues in the quarter beat the $1.51 billion expected, which was already a 15% improvement from the year-ago quarter. However, Q4 revenue guidance is expected to drop 15% quarter over quarter, and AMD shares are down 6% in late trading, as well.
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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