For Immediate Release
Chicago, IL – July 14, 2016 – Zacks Equity Research highlights Casella Waste (CWST) as the Bull of the Day and Valeant Pharma (VRX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Yum Brands Inc. (YUM) and CSX Corporation (CSX).
Here is a synopsis of all four stocks:
Bull of the Day :
Casella Waste (CWST) has met or beat the Zacks Consensus Estimate in three of the last four quarters. Over that span, there was one meet and more importantly to aggressive growth investors, each report saw solid beats on the top line. The stock is a Zacks Rank #1 (Strong Buy) and today it is the Bull of the Day.
The Numbers
CWST beat the Zacks Consensus Estimate of a loss of$0.24 by $0.05 for a 20% positive earnings surprise. The topline was equally as impressive with the company reporting revenues of $125M and that was $7M more than expected for a 6.3% positive revenue surprise.
Description
Casella Waste Systems is a regional, integrated solid waste services company that provides collection, transfer, disposal and recycling services, generates steam and manufactures finished products utilizing recyclable materials primarily throughout the eastern portion of the United States and parts of Canada. The Company also markets recyclable metals, aluminum, plastics, paper and corrugated cardboard all processed at its facilities and recyclables purchased from third parties.
Earnings History
As noted above the company has a solid recent history of beating the number. Two of the last four reports coming in ahead of the Zacks Consensus Estimate there is a clear signal here that company executives know how to manage Wall Street.
The Spetember 2015 quarter, the other beat in the last year, was also a big one. The company posted a beat of $0.01, but that was a strong penny as it was a 14% positive earnings surprise. Like each of the last 5 quarters, the company beat on top as well.
The company is slated to report earnings again on or around July 28.
Bear of the Day:
People tend to raise their eyebrows when they hear that a management team that has led a company into mounting troubles, decided to award $100 million in retention bonuses to the same people that got them into trouble in the first place. Especially, if that team has had some accounting problems, signed a distribution deal that has resulted in a negative average selling price (ASP), and lost $373.7 million dollars last quarter. These are a few reasons why Valeant Pharma (VRX) is the Zacks Bear of the Day.
This Zacks Rank #5 (Strong Sell) is a pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics. The Company produces medicines that meet the special health problems of patients. Valeant's development pipeline strategy comprises both new compounds as well as product life cycle management. Its early and late-stage drug candidates have unique formulations and mechanisms of action including retigabine for the treatment of epilepsy and pain, taribavirin of the treatment of chronic hepatitis C, and several dermatology candidates for the treatment of rosacea, acne, and dermatological fungus.
Earnings Results
In the first quarter 2016, the company saw total revenues of $2.4 billion, a 9% increase from Q1 15, but that was one of the very few bright spots. On a year over year basis, the company increased their cost of goods sold to 27% from 24%, SG&A expenses increased $239 or by 42%, investment in research and development rose $47 million or 42%. Further, the company posted a net loss of $373.7 million in Q1 16 compared to a net gain of $97.7 million in Q1 15. Adjusted net income was $442.6 million compared to $704.2 in the year ago quarter.
Management’s Take
According to Joseph Papa, Chairman and CEO, "The first quarter's results reflect, in part, the impact of significant disruption this organization has faced over the past nine months. This has been a difficult period for Valeant and its stakeholders, and while there are some challenges to work through in certain business operations in 2016, such as our U.S. dermatology unit, the majority of our businesses are performing according to expectations.
Additional content:
Yum! Brands (YUM) Beats, Stock Up 3.8%
Yum Brands Inc. (YUM) just released its Q2 2016 earnings results, posting earnings of $0.75 per share and revenue of $3.008 billion.
Currently, YUM has a Zacks Rank #3 (Hold), but it is subject to change following the release of the company’s latest earnings report. Here are 5 key statistics from this just announced report below.
YUM:
1. Beat earnings estimates . The company posted earnings of $0.75 per share (excluding $0.06 from non-recurring items), beating our Zacks Consensus Estimate of $0.74.
2. Missed revenue estimates . The company saw revenue figures of $3.008 billion, missing our estimate of $3.099 billion.
3. Greg Creed, CEO, said “Given our strong first-half results and current trends in China, I’m pleased to raise our full-year operating profit growth forecast to at least 14% from 12% previously.”
4. Creed was also pleased by continued sales momentum at KFC China, which delivered a higher than expected same-store sales growth of 3%. Creed continued stating that “This represents the fourth consecutive quarter of positive same-store sales at KFC China despite the second quarter being our most difficult of the year from a historical sales overlap standpoint.”
5. YUM was up $3.27, or 3.81%, to $89.01 as of 4:41 p.m. EDT in after-hours trading shortly after its earnings report was released.
CSX Corp. (CSX) Stock Rises on Q2 Earnings Beat
CSX Corporation (CSX) announced financial results for the second quarter of fiscal 2016, posting earnings of $0.47 per share and net sales of $2.7 billion (revenue figure per Seeking Alpha).
Currently, CSX has a Zacks Rank #3 (Hold), but it is subject to change following the release of the company’s latest earnings report. Here are 5 key statistics from this just announced report below.
CSX Corporation:
1. Beat earnings estimates : The company posted $0.47 per share, surpassing our Zacks Consensus Estimate of $0.44. The company’s EPS figure excludes $0.03 from non-recurring items.
2. Just misses revenue estimates : The company saw revenue figures of $2.7 billion, narrowly beating our estimate of $2.714 billion.
3. The logistics services company’s quarterly net earnings of $445 million are down from $553 million in the same period of last year, which is a decline of roughly 19.5%
4. “CSX continued to drive strong customer service and network efficiency in a challenging market, which is expected to persist throughout this year,” said Michael J. Ward, chairman and chief executive officer of the company. “In this environment, the company continues to right-size resources while making strategic investments to transform the company and capitalize on market opportunities to drive long-term value creation.”
5. Shares of CSX are up 4.63% as of 3:28 PM ET in light of this news, and may be subject to more fluctuation during after-hours trading.
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CASELLA WASTE (CWST): Free Stock Analysis Report
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YUM! BRANDS INC (YUM): Free Stock Analysis Report
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