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:
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.
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.
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.
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.
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.
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.
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.”
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.
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