For Immediate Release
Chicago, IL – November 10, 2017 – Zacks Equity Research highlights Groupon GRPN as the Bull of the Day and 3D Systems Inc. DDD as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Walt Disney Co. DIS, NVIDIA NVDA and Nordstrom JWN.
Here is a synopsis of all five stocks:
Bull of the Day:
Actor and comedian Tiffany Haddish recently stopped by Jimmy Kimmel Live, and hilariously described a time when she bought a Groupon for a Cajun swamp tour for her and Will & Jada Pinkett Smith—seriously, watch the interview, it will be the funniest thing you’ll see all day—giving Groupon a ringing endorsement it probably didn’t even know it needed.
The company is known for just that: random deal-of-the-day recommendations. You can score deals on restaurants, fitness, travel, and even Cajun swamp tours at bargain prices. Once deals are announced, they only remain active for 24 to 72 hours and are then no longer available for purchase.
Groupon is headquartered in Chicago, but you can find deals in cities across the U.S. and Canada; it is also quickly growing its footprint in Central and South America, Australia, the U.K., Europe, and parts of the Middle East.
Sitting at a Zacks Rank #1 (Strong Buy), Groupon has been on an impressive rebound lately. Despite posting mixed third-quarter results, the company’s gross profit and adjusted EBITDA guidance keep climbing.
Earnings per share of a penny came in line with the Zacks Consensus Estimate, marking the fourth consecutive quarter of positive EPS. Revenues, however, declined 8% year-over-year to $634.5 million.
Even though the hurricanes in late August and September negatively impacted North American gross profit, this metric managed to increase 3%, while international gross profit surged 11% year-over-year.
Looking ahead, Groupon raised both its gross profit and adjusted EBITDA guidance range.
It now expects gross profit in the range of $1.305 to $1.355 billion, up from the range of $1.30 billion to $1.35 billion, and adjusted EBITDA in the range of $225 million-$245 million, up from the range of $215 million-$240 million.
Strong Growth Outlook
Groupon is currently witnessing major growth on its bottom line.
Current quarter estimates anticipate earnings to increase over 24%, while the company’s bottom line is projected to rise almost 230% and 50% for the current year and next year, respectively.
And, more and more analysts are revising their earnings estimates upwards for Groupon. Right now, six have shifted their estimate higher in the last 30 days compared to two lower for the current year.
Looking at the long term, Groupon expects earnings to grow 10%.
Shares are Soaring
So far this year, GRPN stock has gained close to 70% compared to the S&P 500’s return of over 15%. Groupon has also performed better than its industry, Internet-Commerce, which is no underperformer by any means; it has returned about 60% year-to-date.
Bear of the Day:
A big name in the 3D-printing market for over 30 years, 3D Systems Inc. is a leading provider of 3D modeling, rapid prototyping, and manufacturing solutions.
The company’s systems and materials reduce the time and cost of designing products, and they facilitate direct and indirect manufacturing by creating parts directly from digital input.
3D Systems has a notable healthcare business, and its precision healthcare capabilities include simulation, Virtual Surgical Planning, and printing of medical and dental devices as well as patient-specific surgical instruments
Disappointing Q3 Earnings
When 3D Systems reported third-quarter results recently, it marked the company’s third consecutive earnings miss. DDD reported a loss of 34 cents per share, not even coming close to the Zacks Consensus Estimate of 5 cents per share; EPS also fell 78.9% year-over-year.
Revenues of $153 million also missed our consensus estimate and declined 2.2% from the prior year period.
Overall, there was steady demand for the company’s healthcare solutions and industrial offerings. Strength in the EMEA region was more than offset by softer revenues in the Americas and the Asia-Pacific region.
However, 3D Systems withdrew its full-year 2017 guidance in light of the company’s decision to conduct an extensive review of inventory based on year-to-date demand, customer data, and market trends.
The Road Ahead
Even though 3D Systems can boast steady momentum in its healthcare offerings, solid demand for its production printers and materials, and higher efficiency in “demand manufacturing services,” the road ahead is going to be a bumpy one.
After the company reported earnings, about five or so firms announced downgrades on DDD, cut their price targets, or both. DDD is currently a #5 (Strong Sell) on the Zacks Rank.
Current quarter estimates anticipate earnings to decrease over 86%. And for the current year, Zacks expects 3D Systems’ earnings to decline almost 110%. Eight analysts have revised their estimates downwards in the last 30 days compared to none higher.
The company has an average earnings surprise of -83.8%.
Disney, Nordstrom Down on Earnings, NVIDIA Up
The Walt Disney Co. missed expectations on both top and bottom lines, posting $1.07 per share on quarterly sales of $12.78 billion, below the estimates of $1.12 and $13.15 billion, respectively. Both figures are beneath Disney's year-ago results, as well. Shares have fallen more than 4% immediately upon the report hitting the tape.
Media Networks looks to have had the biggest shortfall of all the entertainment conglomerate's businesses. Broadcasting income fell 15% in the quarter, with flat results from ESPN. Parks and Resorts beat expectations. The upcoming conference call will likely have many questions pertaining to Disney's proposal to purchase 21st Century Fox's movie studio and TV assets. For more info on DIS' earnings, click here.
Nordstromroutinely outperformed earnings estimates for its fiscal Q3, bringing in 67 cents per share, above the 63 cents expected, on $3.63 billion in revenues, which also topped estimates. Online sales rose 14% year over year.
This marks at least the fifth straight quarter of a positive earnings surprise for the Zacks Rank #3 (Hold) department store retailer. Comps came in light of expectations, however, and the company lowered the high end of its earnings guidance. These results have sent the stock down in late trading today by 3.8%. For more on JWN's earnings, click here.
Chip-making giant NVIDIA also posted a typical big beat on its bottom line for fiscal Q3, with $1.33 per share easily surpassing the 94 cents in the Zacks consensus. Revenues of $2.64 billion were also well ahead of the anticipated $2.36 billion. The Zacks Rank #2 (Buy) company also upped its Q4 guidance, and shares have tiptoed into positive territory in the after-market following a slight sell-off during regular trading hours. NVDA is up 92% year to date. For more on NVDA's earnings, click here.
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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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3D Systems Corporation (DDD) : Free Stock Analysis Report
Walt Disney Company (The) (DIS) : Free Stock Analysis Report
Groupon, Inc. (GRPN) : Free Stock Analysis Report
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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