Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0799
    +0.0006 (+0.05%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2637
    +0.0015 (+0.12%)
     
  • USD/JPY

    151.1850
    -0.1870 (-0.12%)
     
  • Bitcoin USD

    70,441.38
    -735.34 (-1.03%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

KLA-Tencor, Shoe Carnival and Cisco Systems highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – May 18, 2017 –Zacks Equity Research KLA-Tencor (NASDAQ: KLAC – Free Report ) as the Bull of the Day, Shoe Carnival (NASDAQ: SCVL – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Cisco Systems Inc. (NASDAQ: CSCO – Free Report ).

Here is a synopsis of all three stocks:

Bull of the Day :

Headquartered in Milpitas, CA, KLA-Tencor (NASDAQ: KLAC – Free Report ) is one of the largest semiconductor equipment companies in the world. They provide process control and yield management solutions for the semiconductor, LED and related nanoelectronics industries.

The company was founded in 1997 with the merger of two companies--KLA Instruments and Tencor Instruments. They have customer operations and service centers around the world.

Impressive Results

The company reported third-quarter fiscal 2017 earnings of $1.62 per share, ahead of the Zacks Consensus Estimate of $1.54. Revenues surged more than 28% year-over-year to $913.8 million, also better than the Zacks Consensus Estimate.

"KLA-Tencor delivered excellent results in Q3 of fiscal 2017, thanks to another outstanding performance by our employees in executing the Company's growth strategies in an exciting and dynamic period for the Company, and for the semiconductor industry," said the CEO.

Returning Capital to Shareholders

The company continues to boost shareholders’ value through dividends. They have a track record of consistently increasing their dividend payout with the growth in free cash flow. They have maintained a payout ratio of ~40 to 50%. The stock has a dividend yield of 2.11% currently.

Rising Estimates

The Zacks Consensus Estimate for FY 2017 and FY 2018 have surged to $5.88 per share and $6.62 per share respectively, up from $5.71 and $6.29, before the results.The company has an impressive record of beating estimates; they have missed only twice in the past 20 quarters.

Bear of the Day :

Headquartered in Evansville, IN, Shoe Carnival (NASDAQ: SCVL – Free Report ) is a retailer of family footwear. Their stores offer both name brand and private label shoes in a carnival like atmosphere with games, neon signs, flashing lights and up-tempo music.

The company operates more than 400 stores in 35 states and Puerto Rico, and offers online shopping on their website.

Weak Guidance Reflects Rising Challenges

Earlier this month, the retailer provided comparable stores sales results for Q1 ended April 29, and an updated outlook for FY 2017 net sales and earnings per share.

Comparable store sales in the quarter declined 3.9% due to a slower start to the fiscal year. The retailer now expects FY 2017 net sales to be in the range of $1.002 billion to $1.018 billion and EPS in the range of $1.30 to $1.45. This was down from earlier outlook for net sales of $1.028 billion to $1.040 billion and EPS of $1.45 to $1.54.

The stock plunged about 12% after the release. The company will report Q1 results on May 24.

Falling Estimates

Analysts have slashed their estimates for the company after weak guidance. Zacks Consensus Estimates for the current and next fiscal year have fallen to $1.43 per share and $1.58 per share from $1.53 and $1.65 respectively, 30 days back.

Additional content:

Cisco (CSCO) Beats, Shares Fall on Weak Guidance

Cisco Systems Inc. (NASDAQ:CSCO – Free Report ) just released its third quarter fiscal 2017 financial results, posting earnings of 60 cents per share and revenues of $11.9 billion. Currently, CSCO is a #4 (Sell) on the Zacks Rank, and is down 5.38% to $32.01 per share in trading shortly after its earnings report was released.

Cisco:

Beat earnings estimates. The company reported non-GAAP earnings of 60 cents per share, topping the Zacks Consensus Estimate of 53 cents per share. This number excludes 10 cents from non-recurring items.

Beat revenue estimates. The company saw revenues of $11.9 billion, just edging past our consensus estimate of $11.88 billion but decreasing 1% year-over-year. Product revenue performance was led by Wireless and Security, which increased by 13% and 9%, respectively.

Non-GAAP total gross margin and product gross margin were 64.4% and 63.2%, respectively. This was a decrease from the prior-year period, primarily due to pricing and product mix that was partially offset by continued productivity improvements.

Looking ahead to Q4, Cisco expects revenues to decline (6)% to (4)% year-over-year, with non-GAAP earnings per share in the range of 60 cents to 62 cents.

"I am pleased with the progress we are making on the multi-year transformation of our business," said Chuck Robbins, CEO, Cisco. "The Network is becoming even more critical to business success as our customers add billions of new connections to their enterprises. We are laser focused on delivering unparalleled value through highly secure, software-defined, automated and intelligent infrastructure."

Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

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.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on KLAC - FREE

Get the full Report on SCVL - FREE

Get the full Report on CSCO - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Click for Free KLA-Tencor Corporation (KLAC) Stock Analysis Report >>
 
Click for Free Cisco Systems, Inc. (CSCO) Stock Analysis Report >>
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement