For Immediate Release
Chicago, IL – June 19, 2017 –Zacks Equity Research Best Buy (NYSE: BBY – Free Report ) as the Bull of the Day, Vitamin Shoppe (NYSE: VSI – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple Inc (NASDAQ:AAPL). (NASDAQ: AAPL – Free Report ) and CBS (NYSE: CBS – Free Report ).
Here is a synopsis of all four stocks:
It has been a challenging environment for most retailers as more and more shoppers now prefer to shop online. Amazon (NASDAQ:AMZN) now accounts for more than half of every new dollar spent online in America and few retailers are able to compete with the e-commerce giant. Best Buy is one of those few retailers. The electronics giant continues to beat estimates, quarter after quarter, and shares continue to rise.
About the Company
Headquartered in Richfield, MN, Best Buy (NYSE: BBY – Free Report ) is a leading specialty retailer of technology products, services and solutions, with approximately 1,600 stores in North America. Domestic Operations accounted for 92% of FY17 total revenue.
According to the company, 70% of the U.S. population lives within 15 minutes of a Best Buy store. That has helped the retailer to improve its e-commerce operations as shoppers can purchase online and pick up from a nearby Best Buy store, within two days in most cases.
Strong Q1 Results and Upgraded Guidance
The retailer reported on May 25. Adjusted earnings came in at $0.60 per share handily beating the Zacks Conesus Estimate of $0.40.
Revenues were $8,528 million, ahead of the Zacks Consensus Estimate of $8,264 million. Strong performance of gaming and mobile drove the results higher. Online sales were up 23%.
“Compared to our expectations going into the quarter, our revenue was higher due to strong performance in gaming, a better-than-expected result in mobile, and the improvement of overall sales trends due to the arrival of delayed federal tax refund checks,” said the CEO.
After better-than-expected results, the retailer raised their guidance for the year. They now expect revenue to grow by 2.5%, up from its previous guidance of 1.5%.
Shares surged 21% after results, reaching their all-time high.
Returning Capital to Shareholders
Best Buy continues to boost shareholders’ value through dividends and share repurchases. In March, they announced a new $3 billion share repurchase plan expected to be completed over the next two years as well as a 21% increase in the quarterly dividend to $0.34 per share. During the reported quarter, they returned approximately $478 million via share repurchases and dividends.
Rising Estimates
The Zacks Consensus Estimate for current and next fiscal years have surged to $3.87 per share and $4.14 per share respectively, up from $3.71 and $3.99, before the results.The company has missed only once in the past twenty quarters. Their average quarterly beat for the last four quarters was 34%.
Founded in 1977, Vitamin Shoppe (NYSE: VSI – Free Report ) is a multi-channel specialty retailer and contract manufacturer of nutritional products. They are based in Secaucus, New Jersey and have approximately 800 stores throughout the US and Puerto Rico.
Shares Plunge After Weak Results
The company reported Q1 results on May 10. Total net sales in quarter were $316.9 million down 5.9% year over year.
Adjusted income came in at $0.37 per share, down from $0.67 in Q1 2016. Earnings were significantly short of the Zacks Consensus Estimate of $0.58 per share.
"Our overall performance in the quarter was disappointing due to lower comparable sales and ongoing challenges at Nutri-Force. Total comps were down 6.3% in the first quarter, primarily driven by an intensifying promotional environment in the Sports category, a trend that has continued into the second quarter.
Falling Estimates
Analysts have slashed their estimates for the company after weak guidance. Zacks Consensus Estimates for the current and next fiscal year have fallen to $1.56 per share and $1.62 per share from $2.04 and $2.23 respectively, before the results.
The company has missed in three out of past four quarters and just met in one. The average negative quarterly surprise for the past four quarters is 13.25%.
Additional content:
Apple Hires Sony Executives to Expand TV Programming
Apple Inc. (NASDAQ: AAPL – Free Report ) announced on Friday that it hired co-presidents of Sony Pictures Television, Jamie Erlicht and Zack Van Amburg, to jump-start its expansion into original television programming.
Erlicht and Van Amburg will be joining Apple in newly created positions responsible for all new video programming. They have been Sony Pictures Television presidents since 2005, overseeing the production of popular shows like Breaking Bad, The Blacklist, The Goldbergs, and even Netflix (NASDAQ:NFLX) shows such as The Crown.
“Jamie and Zack are two of the most talented TV executives in the world and have been instrumental in making this the golden age of television,” said Eddy Cue, Apple’s Senior Vice President of Internet Software and Services.
The departure of Erlicht and Van Amburg follows leadership change at Sony Pictures Entertainment. In May, Tony Vinciquerra took over as chairman and chief executive while the company works to expand its own television business.
Last week, Apple premiered its first original television series, called “Planet of the Apps.” This reality show follows developers of new apps as they try to obtain funding from celebrity judges that include Gwyneth Paltrow, Jessica Alba, will.i.am, and entrepreneur Gary Vaynerchuk. So far, the show has received poor reviews. According to Variety , the show is a “bland, tepid, barely competent knock-off of ‘Shark Tank.’”
Apple’s future programming will include an adaption of comedian James Corden’s “Carpool Karaoke” segment from his CBS (NYSE: CBS – Free Report ) show, which will air in August. The company is also set to produce documentaries about Sean Cobbs and Clive Davis in the next few months.
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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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
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Vitamin Shoppe, Inc (VSI): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
CBS Corporation (NYSE:CBS
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