For Immediate Release
Chicago, IL – June 05, 2017 –Zacks Equity Research Deere & Co (NYSE: DE – Free Report ) as the Bull of the Day, Hertz Global Holdings (NYSE: HTZ – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Canada Goose Holdings Inc. (NYSE:GOOS – Free Report ).
Here is a synopsis of all three stocks:
A strong management team can guide a company through difficult periods and prepare the business for better times. This is what Deere & Co.’s management’s team has done. The past several years have been difficult for the agricultural business, but the team made some prudent cost cutting measures and shifted their focus towards other segments within the company. These moves have begun to bear fruit and nowDeere & Co (NYSE: DE – Free Report ) is our Zacks Bull of the Day.
This Zacks Ranked #1 (Strong Buy) company is the one world's foremost producers of agricultural equipment as well as a leading manufacturer of construction, forestry, and commercial and consumer equipment. The company, in addition, provides credit, special technology, and managed health-care products and services.
Recent Earnings
The company recently announced Q2 17 earnings where they easily beat both the Zacks consensus earnings and revenue estimates. On a year over year basis the company saw gains in net income +62%, worldwide net sales +5%, worldwide revenues +5%, and net sales of equipment operations +2.2%.
Also, due to the strong performance and expected continuation of this trend, management increased FY 17 guidance in several segments; Equipment sales +9% (was +4%), Agricultural & Turf sales +8% (was +3%), and Construction & Forestry sales +13% (was +7%).
Management’s Take
According to Samuel R. Allen, chairman and chief executive officer, " John Deere reported strong results in the second quarter as market conditions showed signs of further stabilization. We are seeing modestly higher overall demand for our products, with farm machinery sales in South America experiencing a strong recovery. Deere's performance also reflects the sound execution of our operating plans, the strength of a broad product portfolio, and the impact of our actions to develop a more agile cost structure. As a result, we have raised our forecast and are now calling for significantly higher earnings for the full year ."
Mr. Allen went on further to state, “ Deere is demonstrating a continuing ability to produce impressive results through all phases of the business cycle. This resilience illustrates our success driving improved operating efficiencies and developing a wider range of revenue sources. It also shows the impact of the company's consistent investments in advanced technology, new products and additional markets. These actions are leading to strong performance in 2017, and they reinforce our conviction that Deere is well-positioned to deliver significant value to customers and investors over the long term .”
An unanticipated issue can cause a turnaround plan to stall or even make the plan virtually impossible to implement. This is what is happening to our Zacks Bear of the Day, Hertz Global Holdings (NYSE: HTZ – Free Report ). In January HTZ hired their third CEO in less than three years, and now the new CEO is forced to deal with higher costs for new cars combined with a lower resale value of their used cars. This new issue is causing their debt levels to skyrocket, and is pushing back their turnaround table to 2018 at the earliest.
This Zacks Ranked #5 (Strong Sell) company operates car rental business. The company's product and services consists of Hertz Gold Plus Rewards, NeverLost, Carfirmations, Mobile Wi-Fi and unique vehicles offered through the Adrenaline, Dream, Green and Prestige Collections. It operates primarily in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. Hertz Global Holdings, Inc. is based in FL, United States.
Recent Earnings Results
In the company’s most recent earnings report, HTZ missed the Zacks consensus earnings estimate for the third consecutive quarter, but they did beat the Zacks consensus revenue estimate after missing the previous two quarters. The company reported year over year losses in the following; U.S. Rental Car segment, total revenues fell -4%, with income from continuing operations before income taxes dropping by 500%. On the International Rental Car Segment, total revenues were down -5%, and income from continuing operations before income taxes were down 400%.
Management’s Take
According to Kathryn Marinello, President and CEO, “As previously outlined, we are executing on a turnaround plan that puts our customers at the center of everything we do. Our goal is to strengthen the business to drive predictable, sustainable growth over the long term. While we are mindful of today's headwinds related to used car residual values, our commitment to investing in the business remains steadfast. In particular, we are placing significant emphasis on fleet quality, the customer experience, brand development and systems transformation. These investments are critical to rebuilding our position as a leader in the global rental car market. While our performance doesn't yet reflect our investments and may continue to be uneven, we are seeing signs of progress."
Additional content:
Canada Goose (GOOS) Shares Pop After 1st Earnings Post-IPO
On Friday, shares of luxury parka makerCanada Goose Holdings Inc. (NYSE: GOOS – Free Report ) are popping, up over 9% to $20.41 per share after the company reported a smaller-than-expected fourth-quarter loss.
For Q4, earnings were a loss of 12 cents per share (this number excludes 6 cents from non-recurring items), beating the Zacks Consensus Estimate of a loss of 15 cents per share. Adjusted net loss was $14.7 million for the quarter.
Total revenues increased 21.9% to $38.6 million, also beating our consensus estimate of $23.1 million. Gross margin expanded 950 basis points to 54.4%.
During the quarter, Canada Goose opened its first retail stores in Toronto and New York, in addition to e-commerce sites in France and the United Kingdom. Speaking of it online sales, Canada Goose’s direct-to-consumer (DTC) revenue, which includes e-commerce sales and company-owned retail store sales, increased C$115.2 million from $33 million in fiscal 2016.
“I believe our strong performance in fiscal 2017 clearly demonstrates the tremendous power of the Canada Goose brand and continued demand for our best-in-class products around the globe, as well as our ability to deliver products of the highest quality, craftsmanship and functionality,” said Dani Reiss, President and CEO.
Looking ahead at fiscal 2018, Canada Goose expects revenue growth on a percentage basis in the mid-to-high teens. The company also expects adjusted earnings per share to grow an average of over 25% per year from fiscal 2016 through fiscal 2018.
Canada Goose, known for $900 parkas with fur-trimmed hoods, hit the market with a bang back in March, and its IPO was a huge win for the company.
About the Bull and Bear of the Day
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Deere & Company (NYSE:DE): Free Stock Analysis Report
Hertz Global Holdings, Inc (HTZ): Free Stock Analysis Report
Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report
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