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Exelixis, Applied Optoelectronics and Nvidia as Zacks Bull and Bear of the Day

Zacks Equity Research
Vanda (VNDA) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

For Immediate Release         

Chicago, IL – May 11, 2018 – Zacks Equity Research highlights Exelixis EXEL as the Bull of the Day and Applied Optoelectronics AAOI as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Nvidia Corporation NVDA.

Here is a synopsis of all three stocks:

Bull of the Day:                                              

Exelixisis a $6 billion biotechnology company focused on cancer R&D and the producer of cabozantinib (sold under the brand names Cabometyx and Cometriq), a treatment approved by the FDA for several indications: medullary thyroid cancer, a second line treatment for renal cell carcinoma (RCC), and clinical activity in several other types of metastatic cancer.

Unique among small biotech companies, EXEL is a profitable mid-cap cancer fighter with projected 58% revenue growth and 68% EPS growth this year. The stock just became a Zacks #1 Rank this week after a very strong Q1 of big top and bottom line surprises reported on 5/2.

Here's how Oppenheimer analysts summed up the quarter and outlook, reiterating their $40 PT...

Cabometyx sales of $128.9 million were 34.5% higher than our estimated $95.9 million and 20.6% higher than consensus of $106.9 million. Based on Cabometyx demand increases and the strong start to the frontline RCC launch, we are increasing our sales estimate for 2018 by 16.8% to $510.5 million. Our outlook for 2019 – 2022 revenue is basically unchanged. While being partially offset by a small increase in estimated expenses, the sales estimate increase and milestone payments are leading us to raise our estimated 2018 EPS to $0.74 from our prior $0.37.

And Oppy is still $200 million under consensus for projected 2018 sales of $716M. I almost wonder if they made a typo given their high Street PT of $40, which was shared by SunTrust until today (more on this coming up).

Bear of the Day:

Optical networking equipment companies like Applied Optoelectronics are no stranger to the cellar of the Zacks Rank lately as a slowdown in Chinese datacenter demand and heated competition erode their sales and earnings power.

AAOI, in fact, has spent all of 2018 as a Zacks #5 Rank Strong Sell, since it was trading above $38 and fell to $22. And this week's earnings report gave analysts no reason to turn that trend around.

My colleague Ryan McQueeny wrote about the AAOI report on Tuesday and had this to say...

Currently, AAOI is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have gained about 38% over the past month, including a 4.4% gain during regular trading hours today.

The stock is currently down 9.3% to $32.00 per share in after-hours trading shortly after its earnings report was released.

Missed earnings estimates. The company posted adjusted earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.33 per share. Investors should note that this consensus projection has trended downward over the duration of the quarter.

Missed revenue estimates. The company saw revenue figures of $65.2 million, missing our consensus estimate of $69.3 million. Total revenue was down 32% from the year-ago period.

3 Tech Stocks Under $10 to Buy Now

Nvidia Crushes Q1 Earnings Estimates, Revenues Surge 66%

Nvidia Corporation just released its latest quarterly financial results, posting non-GAAP earnings of $2.05 per share and revenues of $3.21 billion.

Currently, NVDA is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have gained about 13% over the past month, including a 1.7% gain during regular trading hours today.

The stock is currently down 2.2% to $254.63 per share in after-hours trading shortly after its earnings report was released.


Beat earnings estimates. The company posted adjusted earnings of $2.05 per share, crushing the Zacks Consensus Estimate of $1.65. Investors should note that this consensus projection has remained flat over the duration of the quarter. Non-GAAP earnings per diluted share improved 141% year over year.

Beat revenue estimates. The company saw revenue figures of $3.2 billion, topping our consensus estimate of $2.91 billion. Total revenue gained 66% from the year-ago period.

Gaming revenue increased 68% to touch $1.72 billion. Datacenter revenue surged 71% to reach a quarterly record of $701 million. Professional Visualization and Automotive revenues gained 22% and 4%, respectively.

“We had a strong quarter with growth across every platform,” said Jensen Huang. Our datacenter business achieved another record and gaming remained strong.”

Nvidia said it returned $746 million to shareholders during the quarter through a combination of $655 million in share repurchases and $91 million in quarterly cash dividends. It expects to return a total of $1.25 billion in fiscal 2019.

Nvidia said it expects revenue for the second quarter of fiscal 2019 to be $3.10 billion, plus or minus 2%. Prior to the report, our consensus estimate was calling for Q2 revenue to be $2.97 billion.

Nvidia Corporation is a worldwide leader in graphics processors and media communications devices. The company designs graphics processing units for the gaming, professional, and cryptocurrency markets, as well as system on a chip units for the mobile computing and automotive markets. Nvidia has shifted toward a platform-based model, with focuses on gaming, professional visualization, datacenters, and auto.

Check back later for our full analysis on NVDA’s earnings report!

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

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