For Immediate Release
Chicago, IL - February 23, 2017 - Zacks Equity Research highlights Xcerra (NASDAQ: XCRA - Free Report ) as the Bull of the Day Aaron (NYSE: AAN - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla Inc.(NASDAQ: TSLA-Free Report) .
Here is a synopsis of all three stocks:
Xcerra (NASDAQ: XCRA - Free Report ) just pulled off a triple play of sorts. The company reported earnings and beat on top, beat on bottom and raised guidance. I love to see stocks beat and raise as these stocks tend to outperform for the next several months. Normally when I see a stock beat and raise, it becomes a Zacks Rank #1 (Strong Buy), but this stock already held the coveted Rank before the report. Now it is the Bull of the Day.
Recent Earnings Report
XCRA beat the Zacks Consensus of a loss of $0.02 by $0.08 when they reported a gain of $0.06 for the most recent quarter. Revenues came in at $80.1M and that was ahead of the $78.9M estimate and represented growth of 10.8% from year ago levels.
Xcerra Corporation engages in designing, manufacturing, and marketing automatic test equipment for the semiconductor industry. Its product portfolio includes Diamond platform; X-Series platform; and ASL platform. The Company also offers various services, such as installation and maintenance of test systems, servicing of spare parts, parts and labor warranties on test systems and instruments, and training on the maintenance and operation of test systems. Xcerra Corporation, formerly known as LTX-Credence Corporation, is headquartered in Norwood, Massachusetts.
The company said the next three months are going to be better than what was previously expected. They guided EPS to a range of $0.10 - $0.14 compared to an $0.08 estimate. Revenues are expected to be $95M - $99M compared to the $89.75M estimate.
Further, in the press release the company noted they plan to ship a record number of Diamondx systems during the current quarter.
The beat is pretty fresh and all the reports are clearly not in yet. The Zacks Consensus Estimate for 2017 is holding still at $0.22 as is the estimate for 2018 at $0.56.
To me, this means that estimates have not yet moved and we could be in for a big surprise.
Aaron's (NYSE: AAN - Free Report ) recently beat the Wall Street estimate when the company reported earnings on February 17. The company earned $0.50 per share and that was $0.05 ahead of the Wall Street consensus estimate of $0.45.
Revenues came in at $795M, down 3.2% from the year ago period and below the consensus estimate of $814.8M.
Taken together, the revenue miss and earnings beat would probably be a forgivable sin and it certainly would not make it a Zacks Rank #5 (Strong Sell). So why did the Rank fall?
The company guided Wall Street below its expectations, and that means that estimates are going to fall. The company said they expect FY2017 EPS of between $2.15 - $2.40 when Wall Street was looking for $2.46.
The Zacks Consensus Estimate for 2017 slipped from $2.47 to $2.28 over the last seven days and there was also a big move lower for the 2018 number. It moved from $2.80 to $2.68.
Not all the estimates are in yet, with a few analysts yet to report back. This could mean that estimates move lower from their already beaten up position.
Aaron's is engaged in the sales and lease ownership and specialty retailing of residential and office furniture, consumer electronics, home appliances and accessories. It is engaged in the lease ownership, lease and retail sale of a variety of products, such as widescreen and LCD televisions, computers, living room and bedroom furniture, and refrigerators The company offers products of various brands, such as JVC, Mitsubishi, Philips, Panasonic, Sony, Dell, Hewlett-Packard, Simmons, Frigidaire, and Sharp. Aaron's, Inc. is based in Atlanta, Georgia.
The company noted that they closed 61 stores in the fourth quarter of 2016. On top of that they also see another 70 stores to close in 2Q17. Logically, the lower number of stores could lead to lower sales in the future.
Guidance for sales was inline, with the company projecting $3.1B - $3.31B when the Wall Street Estimate was calling for $3.26B.
Efficiency better increase per store if AAN is going to meet the sales goals.
Tesla Posts Strong Revenues Despite Q4 Loss, Global Net Orders Up 49%
Tesla Inc. (NASDAQ: TSLA - Free Report) just released its fourth quarter fiscal 2016 earnings results, posting earnings, before non-recurring items, of a loss of $1.25 per share and revenues of $2.28 billion. Currently, TSLA is a #4 (Sell) on the Zacks Rank, and is up 2.12% to $273.51 per share in trading shortly after its earnings report was released.
Missed earnings estimates. The company reported earnings of a loss $1.25 per share, beating the Zacks Consensus estimate of a loss of $1.19 per share. This number excludes 47 cents from non-recurring items.
Beats revenue estimates. The company saw revenues of $2.28 billion, topping our consensus estimate of $2.201 billion and gaining 88.4% year-over-year. Fiscal 2016 revenue came in at $7 billion, up 73% from fiscal 2015.
In Q4, Tesla received 49% more global net orders for Model S and Model X combined, compared to the same period in 2015. The company's Model 3 is on track for initial production to begin this July, and volume production by September.
Third-quarter to fourth-quarter cash grew by over $300 million to $3.4 billion.
Looking ahead, Tesla expects to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017, representing vehicle delivery growth of 61% to 71% compared to the yea-ago period.
Tesla is on track to generate $500 million in cash (including growth of non-recourse project financing) by 2019, and achieve the cost synergies they committed to upon acquiring SolarCity.
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.
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