Las Vegas Sands, Ethan Allen Interiors and Weight Watchers highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – May 4, 2018 – Zacks Equity Research highlights Las Vegas Sands Corp. LVS as the Bull of the Day, Ethan Allen Interiors Inc. ETH as the Bear of the Day. In addition, Zacks Equity Research provides analysis onWeight Watchers Inc. WTW.
Here is a synopsis of all three stocks:
Bull of the Day:
A big player in the gaming and casino industry, Las Vegas Sands Corp. started from just one property back in 1990 and now has many locations in Las Vegas; Bethlehem, PA; Macao; and Singapore.
Guests not only enjoy gaming at a Las Vegas Sands resort, but a luxury hotel experience; dining and entertainment; Meetings, Incentive, Convention and Exhibition (MICE) facilities; and many other business and leisure amenities.
Blowout Q1 Earnings
A few weeks ago, Zacks Rank #1 (Strong Buy) Las Vegas Sands delivered another great quarterly performance, with the top and bottom line surpassing the Zacks Consensus Estimate for the fifth straight quarter.
Overall, the company’s results were driven by robust performance across Macao, Singapore, and Las Vegas.
Adjusted earnings of $1.04 per share and net revenues of $3.58 billion grew 57.6% and 16.7% year-over-year, respectively. Net income surged nearly 180% to $1.62 billion.
Consolidated adjusted property EBITDA increased 30.7% to $1.5 billion, while in Macao, adjusted property EBITDA improved 26% to $789 million.
Additionally, Las Vegas Sands paid its shareholders a quarterly dividend of 75 cents per share and repurchased $75 million of common stock.
Earnings Outlook
For LVS, its bottom line is trending upward for the foreseeable future.
Earnings are expected to grow about 8% for the current quarter. Three analysts have revised estimates upwards recently, but two have cut their outlook for the period during the same time period. The Zacks consensus has moved from $0.78 to $0.79 in the past 60 days.
Fiscal 2018 figures are looking pretty great, with seven estimates moving higher in the past two months. The Zacks consensus estimate trend has jumped from $3.36 per share to $3.82 per share.
Analysts are feeling optimistic for fiscal 2019 as well, with six moving their estimate higher in the last 60 days.
LVS has an average earnings surprise of 17.5%
What’s Next for LVS?
Looking ahead, the company remains focused on a convention-based Integrated Resort business model that will help generate a diversified cash flow, as well as profit from non-gaming segments. It should also bring in economic and diversification benefits to the regions in which it operates.
Shares of Las Vegas Sands have gained around 7.8% since the start of the year, as well as 26.5% in the past one-year period. In comparison, the S&P 500 has lost roughly 2.6% and gained 9%, respectively.
Bear of the Day:
Founded in 1932, Ethan Allen Interiors Inc. is an interior design company and manufacturer and retailer of quality home furnishings. Through its website and network of design center locations in the U.S. and abroad, the company offers free interior design services to customers and sells a full range of furniture products and decorative accessories.
Last year, Ethan Allen struck up a partnership with online retail giant Amazon where Ethan Allen product would be sold on Amazon.com in its own unique part of the shopping platform. This marked the first time the company’s furniture and accessories were sold outside of Ethan Allen locations.
Q3 Results
The Zacks Rank #5 (Strong Sell) stock reported third-quarter fiscal 2018 results a few weeks ago, and while the top and bottom line fell in-line with the Zacks Consensus Estimates, analysts weren’t too impressed with the quarterly performance.
Adjusted earnings were 11 cents per share compared to 23 cents in the prior year quarter, while consolidated net sales grew just 0.5% to $181 million.
Adjusted net income was $3 million, down by over half when compared to last year. Looking at adjusted operating income, this metric was $4.4 million, or 2.4% of sales.
Retail written orders increased 2.6% year-over-year, and backlogs increased 15% in its retail division and 70% in its wholesale division.
Additionally, the company’s total debt of $1.7 million decreased $12.6 million from last June thanks to an early payoff. This reduced borrowings to zero.
Earnings Outlook Lowered
As a result, estimates took a hit in the days following the report.
For the current quarter, three analysts cut their outlook in the last 60 days, and the consensus has dipped 10 cents from $0.53 to $0.43 per share. Earnings are only expected to grow around 2.4% for the quarter.
Five analysts have revised their estimates downward for the current fiscal year, and earnings are projected to fall over 8%. The consensus has decreased from $1.58 to $1.33 per share.
Looking at the next fiscal year, earnings could grow about 25%, and the current consensus sits at $1.67 per share.
Can ETH Get Back on Track?
Shares of Ethan Allen are down 19% so far this year and down well over 27% in the past one year. Compared to the S&P 500, the index has lost about 2.6% and gained 9%, respectively.
Additional content:
Weight Watchers Inc. just released its latest quarterly financial results, posting earnings of 56 cents per fully diluted share—31 cents per share when you take out a tax benefit—and revenues of $408.2 million.
Currently, WTW is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have gained about 9.7% over the past month but was down 4.15% during regular trading hours today.
The stock is currently up about 7.6% to $75.00 per share in after-hours trading shortly after its earnings report was released.
Weight Watchers:
Beat earnings estimates. The company posted earnings of 56 cents per share. Investors should note that Q1 EPS results include a 25 cent per fully diluted share tax benefit from Oprah Winfrey’s exercise of a portion of her stock options. Taking this out, EPS for the quarter comes to 31 cents per share, surpassing the Zacks Consensus Estimate of 6 cents per share.
Beat revenue estimates. The company saw revenue figures of $408.2 million, easily beating our consensus estimate of $375.05 million and growing 19.5% year-over-year.
Total subscribers hit a record 4.6 million, up 29% year-over-year thanks to growth in all major geographic markets.
Services revenues came in at $328.7 million, while WTW’s Product Sales and Other division hit $79.6 million.
As a result, Weight Watchers raised its fiscal 2018 earnings guidance to an EPS range of $3.00 to $3.20 per share.
"Driven by the enthusiastic, global response to our new WW Freestyle™ program, we ended the first quarter with 4.6 million subscribers – the highest level in the history of Weight Watchers and an increase of 1 million compared to a year ago. Member engagement has been incredible with members staying longer than ever before. Average retention is now well over 9 months," said Mindy Grossman, the Company's President and CEO.
Weight Watchers is the largest provider of weight control programs in the world. The core of their business is weekly meetings, in which they present their scientifically designed program, incorporating group support and education about healthy eating patterns, behavior modification and physical activity.
Check back later for our full analysis on WTW’s earnings report!
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About the Bull and Bear of the Day
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Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
Ethan Allen Interiors Inc. (ETH) : Free Stock Analysis Report
Weight Watchers International Inc (WTW) : Free Stock Analysis Report
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