Falling Earnings Estimates Signal Weakness Ahead for Five Star Quality Care (FVE)
Zacks By Zacks Equity Research
3 hours ago
Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is Five Star Quality Care Inc. (FVE), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in FVE.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared no upward revision. This trend has caused the consensus estimate to trend lower, going from 26 cents a share a month ago to its current level of 19 cents.
Also, for the current quarter, Five Star Quality Care has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 4 cents a share from 6 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 18.2% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.
GMI Ratings upgrades VICOR CORP from 4 to 5.
BY Investars Analyst Actions - public
— 7:10 PM ET 10/06/2014
On October 3, 2014 GMI Ratings upgraded VICOR CORP (VICR) from 4 to 5.
Very strange move with higher than average volume. Down more than 5% in day when market made highest move up for the year. Any word on the suit with Synqor? Any thoughts on the business in general?
Does anyone have any insights on deals?
For the three months ended September 30, 2014, 13.4% of SNH’s NOI came from 44 managed senior living communities with 7,051 living units. Occupancy at managed senior living communities was 88.2% during the quarter ended September 30, 2014, compared to 87.6% during the comparable period last year. Same property occupancy for managed senior living communities owned continuously since July 1, 2013 increased 0.8 percentage points to 88.1% during the quarter ended September 30, 2014, from 87.3% during the comparable period last year. Same property NOI remained unchanged for the quarter ended September 30, 2014 compared to the quarter ended September 30, 2013.
Trading Central upgrades VICOR CORP from NEUTRAL to BUY.
BY Investars Analyst Actions - public
— 7:12 AM ET 10/30/2014
On October 29, 2014 Trading Central upgraded VICOR CORP (VICR
from NEUTRAL to BUY.
Power Integrations Revolutionizes Switch-Mode Power-Supply Design by Launching the InnoSwitch Family of Switcher ICs
Using new FluxLinkTM safety-isolated communication technology, InnoSwitch™ combines primary- and secondary-switcher circuitry to reduce component count, eliminate slow and unreliable optocouplers, outperform primary-side controllers and slash manufacturing costs
Power Integrations Revolutionizes Switch-Mode Power-Supply Design by Launching the InnoSwitch Family of Switcher ICs .
SAN JOSE, Calif.--(BUSINESS WIRE)--
Power Integrations (Nasdaq:POWI), the leader in high-voltage integrated circuits for energy-efficient power conversion, today announced a new class of power-supply ICs. The InnoSwitch™ family of highly integrated switcher ICs combines primary, secondary and feedback circuits into a single, worldwide safety-rated, surface-mount package. With InnoSwitch ICs, designers can easily exceed all global regulatory standards for efficiency and no-load consumption, while minimizing component count and providing highly accurate constant voltage and constant current up to 25 W. The InnoSwitch family is ideal for smart mobile device chargers and adapters for a wide range of applications such as set-top boxes, networking equipment and computer peripherals.
2 Million Servers
"Amazon has 11 cloud regions across the world, said James Hamilton, an Amazon distinguished engineer, during a presentation at re:Invent. Each region has multiple sets of data centers, and there are 28 total sets across the world. Each of those has one or more data centers, with a typical facility containing 50,000 to 80,000 servers. A conservative estimate puts Amazon over 1.5 million servers globally. Lydia Leong, an analyst at research firm Gartner, puts it at 2 million or more.
By comparison, Rackspace Hosting has a little over 100,000 servers spread across six data centers. Google has three regions with eight total sets, and Microsoft has 17 regions. Got all that? Last year, Steve Ballmer, then Microsoft's CEO, said the company had over a million servers within its data center infrastructure and that Google had even more.
Amazon's cloud could soon get even bigger. Hamilton told me that he saw no reason why Amazon couldn't eventually have a data center in every U.S. state if companies adopt cloud computing as enthusiastically as people predict."
Power System Product of the Year - Sponsored by CUI
For this award category, the judges have selected a range of power components which impressed because of the way new materials, semiconductor technologies and packaging design have been applied to power efficient designs.
Linear Technology – LTC3350 supercapacitor backup controller
Vishay Siliconix – Si7157DP p-channel power mosfet
GaN Systems – GaN-on-silicon transistor with drive assist
TDK-Lambda UK – DRB DIN rail power supply
LEM – H0 series current transducers
Vicor – ChIP high voltage converter
Design Tools and Development Software Award – Sponsored by Swindon Silicon Systems
The finalists have introduced software design tools in the last 12 months which demonstrate technical capabilities which are changing the way designers approach hardware projects.
Altera – SDK for OpenCL
Altium Europe – Designer 14
Cadence – Voltus IC Power Integrity Solution
Mentor Graphics – MicReD Industrial Power Tester
Renesas Electronics Europe – YROTATE-IT motor control tool
Vicor – PowerBench Whiteboard Tool
AW, very nice article and here are some excerpts:
-Vicor's plan to triple revenue in 5 years is on track.
-Vicor had an outstanding Q3 and they expect their financial performance to continue to improve.
-Vicor's CHIP (Converter Housed In a Package) won product of the year award at Elektra 2014.
-Vicor is exploring additional manufacturing capacity in Asia.
-The CEO purchased an additional 26,000 shares during the previous quarter.
2014 $224,996,000 -$.40 N/A
2015 $254,200,000 $.10 N/A
2016 $304,000,000 $.42 310%
2017 $380,500,000 $.99 132%
2018 $485,000,000 $1.53 54%
2019 $548,000,000 $2.08 36%
Let's hope they can execute...
I don't think the stocking is full on this one:
Five Star Quality Care (NYSE:FVE):
FQ3 EPS of -$0.05
Revenue of $334.3M (+3.1% Y/Y).
FIVE STAR QUALITY CARE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, FIVE STAR QUALITY CARE INC reported lower earnings of $0.07 versus $0.20 in the prior year. For the next year, the market is expecting a contraction of 128.6% in earnings (-$0.02 versus $0.07).
The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has significantly decreased by 296.8% when compared to the same quarter one year ago, falling from -$0.76 million to -$3.01 million.
Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Providers & Services industry and the overall market, FIVE STAR QUALITY CARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
The gross profit margin for FIVE STAR QUALITY CARE INC is currently extremely low, coming in at 4.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.89% trails that of the industry average.
The share price of FIVE STAR QUALITY CARE INC has not done very well: it is down 15.36% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now,however, we believe that it is too soon to buy