For Immediate Release
Chicago, IL – August 24, 2016 – Zacks Equity Research highlights Urban Outfitters (NASDAQ:URBN) (URBN) as the Bull of the Day and Fogo de Chao (FOGO) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Oclaro Inc (OCLR), ANI Pharmaceuticals Inc ( ANIP) and FormFactor Inc (FORM).
Here is a synopsis of all five stocks:
Urban Outfitters ( URBN ) is a specialty retail company that engages in the retail and wholesale of general consumer products. The company retails women’s and men’s fashion apparel, intimates, footwear, beauty and accessories, home goods, active wear and gear, and electronics that cater to the 18 to 28-year-old age group under the Urban Outfitters brand. Items featured under the Anthropology brand include women’s casual apparel and accessories, intimates, shoes, beauty, home furnishings, and various gifts and decorative items for women aged 28 to 45. Other brands include Free People, Terrain and BHLDN. The company was founded in 1970, employs over 9,000 and is headquartered in Philadelphia, Pa. The stock is Zacks Rank #1 (Strong Buy) and todays Bull of the Day after an impressive earnings beat and multiple price upgrades.
Urban Outfitters has a market cap of $4.3 Billion with a Forward PE of 18. The stock sports Zacks Style Scores of “A” in Value and “B” in both Growth and Momentum. In addition, the company also sits in an industry that is ranked 95 out of 265 (Top 36%) in the Zacks Industry Rank.
Q2 Earnings
Q2 was reported on August 16th with the company seeing $0.66 versus the $0.56 expected. Revenue came above expectations at $890.6 Million verse $889 Million. Total retail sales were up 1% year over year, with Free People flat, Anthropologies down 3% and Urban Outfitter stores up 5%. Gross margins were up to 38.5% verse 36.7% a year ago.
CEO Richard Hayne had some comments on the quarter: “I am pleased to announce our teams delivered record second quarter sales and earnings per share. These results were driven by a positive Retail segment 'comp' and substantial improvement in merchandise margins.”
Fogo de Chao ( FOGO ) owns and operates full-service Brazilian steakhouses in the United States and Brazil. It operates 31 restaurants in the United States, 10 restaurants in Brazil, and 1 joint venture restaurant in Mexico. The stock is the Bear of the Day after being downgraded to a Zacks Rank #5 (Strong Sell) and after poor earnings results last week.
Fogo has a market cap of $350 Million and a Forward PE of 14.74 The stock sports pretty good Zacks Style Scores, with an “B” in Value “B” in Growth, but a “D” in Momentum. However, a miss on EPS and a guidance cut to fiscal year 2016 has the stock trending lower.
Q2 results
The company reported Q2 EPS on August 9thth, with the numbers coming in at $0.22 versus the $0.25 expected. Revenue came in lower than expected at $69.6 Million against the $73.3 Million expected. The company also cut their fiscal year 2016 outlook to $0.85-0.89 verse the $0.94 expected. In addition, revenue and same store sales were guided lower.
CEO Lawrence Johnson had some comments on the quarter: “In today’s softening sales environment, guests are placing greater emphasis on value, customization, variety and speed of service and we believe that our strategies are designed to deliver on these needs.”
Investors weren’t buying the comment that strategies are delivering and have sold the stock down 10% since the report. Analysts aren’t buying the story either and have been cutting estimates.
Estimate Revisions
Over the last 30 days, estimates have been revised lower for all time frames. For fiscal year 2016, the numbers have been taken down 8%, from $0.94 to $0.86. For 2017, estimates are now seen at $0.97, down from $1.11 or 13%.
Additional content:
3 Small-Cap Stocks with Sky-High Growth Potential
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Oclaro Inc-(OCLR)
Oclaro Inc. provides high performance optical components, modules, and subsystems to the telecommunications market. The company leverages proprietary core technologies and vertically integrated product development to sell customers cost-effective products. Oclaro has a market cap of $827.65 million, and it gets a grade of “A” for growth in our Style Scores.
OCLR trades at a reasonable forward PE of 19.73, and it also has a pretty low PEG of 1.2. With valuations like these, the stock does not look too expensive. The company is expected to see significant growth this year, with sales and EPS projected to grow by 30.45% and 367.5% respectively.
Analysts covering OCLR have been revising their earnings estimates upwards. In the last 30 days, our current year EPS consensus has increased by 117%, going from $0.17 to $0.37. Oclaro could very well surpass this estimate since it has beaten estimates in each of the last four quarters. Over that time span, the company has topped our consensus by an average of 101% per quarter.
OCLARO INC Revenue (TTM) | OCLARO INC Quote
ANI Pharmaceuticals Inc-(ANIP)
ANI Pharmaceuticals is a special pharmaceutical company that develops and sells branded and generic prescription drug products. Through various forms of drug delivery, the corporation sells cough and cold products, antacids, laxatives, stomach remedies, and more. ANIP, like every other stock in this article, is a Zacks Rank #1 (Strong Buy).
ANI Pharmaceuticals has a forward PE of 18.22. The firm has seen high sales growth over the last few years, and since 2013, sales have grown by over 150%. Top line growth is expected to be realized this year, and sales are forecasted to increase by 68%. Earnings should see significant growth as well, with EPS expected to grow by 55%. Unlike many small pharmaceutical companies, ANI has a nice capital structure. ANIP has a current ratio and debt-to-capital of 3.23 and 0.41 respectively.
ANI PHARMACEUT Revenue (Quarterly) | ANI PHARMACEUT Quote
FormFactor Inc-(FORM)
FormFactor Inc. develops and manufactures high performance advanced semiconductor wafer probe cards. Their technology, such as its MicroSpring interconnect technology, enables FormFactor to produce wafer probe cards for test applications that require reliability, speed, precision, and signal integrity. FORM has a market cap of $766 million, and shares have picked up 43% in value since June.
Over the last five years, sales have grown by 66.86%. This year is expected to be an especially momentous one for FormFactor, as the company’s revenues and EPS are projected to grow by 35% and 52.94% respectively. FORM has a trailing twelve month net margin of 7.27%, and this is way ahead of the industry’s average net margin of 2.16%. FormFactor has topped our EPS estimate in three of the last four quarters. In its most recent quarterly beat, EPS came in at $0.10, and this topped our consensus by 42.86%. FormFactor is expected to release its next quarterly earnings results in late October.
FORMFACTOR INC Revenue (TTM) | FORMFACTOR INC Quote
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URBAN OUTFITTER (URBN): Free Stock Analysis Report
FOGO DE CHAO (FOGO): Free Stock Analysis Report
OCLARO INC (OCLR): Free Stock Analysis Report
ANI PHARMACEUT (ANIP): Free Stock Analysis Report
FORMFACTOR INC (FORM): Free Stock Analysis Report
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