Monthly Archives: November 2016

Artic Cat: Zacks’ Bear of the Day Play

Arctic Cat (ACATFree Report) recently missed the Zacks Consensus Estimate and is now a Zacks Rank #5 (Strong Sell) and is the Bear of the Day. Let’s take a look at why this is the case.

Description

Arctic Cat makes and sells snowmobiles and all-terrain vehicles (ATVs), and recreational off-highway vehicles under the Arctic Cat and MotorFist brand names. Arctic Cat Inc. was founded in 1982 and is headquartered in Minneapolis, Minnesota.

Recent Earnings

ACAT missed the Zacks Consensus Estimate of $0.35 by $1.23 for a negative earnings surprise of 351%. Revenue came in at $165M while the Zacks Consensus Estimate was looking for $197M.

Estimates

The Zacks Consensus Estimate has been falling over the last few months. The FY16 estimate stood at $0.53 in March and then fell to a loss of $0.92 in September. The estimate currently states at -$1.36.

The decline in estimates is the main reason this is a Zacks Rank #5 (Strong Sell) and the Bear of the Day.

Chart

Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color-coded lines represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving higher.

ARCTIC CAT INC Price and Consensus

ARCTIC CAT INC Price and Consensus | ARCTIC CAT INC Quote

More Stocks to Sell. Now.

Beyond our Bear Stock of the Day, today’s list of 220 Zacks Rank #5 Strong Sells demand even more urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. Many appear to be sound investments but, since 1988, such stocks have actually performed more than 11X worse than the S&P 500.

See today’s Zacks “Strong Sells” absolutely free >>.

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ARCTIC CAT INC (ACAT) – FREE report >>

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FutureFuel: Zacks’ Bull of the Day Play

FutureFuel (FFFree Report) is a name that is flying under the radar for most investors, so let’s take a look at the most recent earnings report and why I like this Zacks Rank #1 (Strong Buy) which happens to be the Bull of the Day.

Why I Like It

This is a small-cap stock, and small caps have been running lately.

A good earnings history when compared to the Zacks Consensus Estimate.

Recent jump of 8% in earnings estimates.

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The Recent Numbers

I like to do a review of the most recent quarter for stocks that I highlight as Bulls of the Day. FF reported the September 2016 quarter last week and beat handily on the bottom line.

The company posted EPS of $0.29 when the Zacks Consensus Estimate was calling for $0.24. Revenue came in $17M below expectations for a 19% negative revenue surprise. As a result, the stock was bid up by more than 4.3% in the session following the report.

Description

FutureFuel is a special purpose acquisition vehicle to acquire companies that are could make a notable impact in the biofuel and fuel industries. FF was previously known as the Chemicals Division of Eastman Kodak Company from 1976—1993.

Earnings History

The company has a good history of beating the Zacks Consensus Estimate. There have been two miss and five beats in the last seven reports.

Estimates

The estimate picture looks really good, with the Zacks Consensus Estimate for 2016 moving from $1.00 in October to $1.08 in November. The single analyst estimate was as low as $0.90 back in February of this year.

Valuation

The valuation for FF is one that I really like to see. The forward PE of 11.5x is well below the historic market multiple of around 18x. The Zacks Industry average multiple is a negative number, which suggests the competition for FF is going to be posting losses over the next twelve months. That is a huge positive for this stock as discerning investors may not even look at the other names as potentials to invest in. The company trades in line with the industry average in terms of price to book at 1.3x. Finally, the price to sales multiple of 2.5x is sharply higher than the industry average of 1x.

Chart

Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color-coded line represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #1 (Strong Buy) we see that estimates are moving higher.

FUTUREFUEL CORP Price and Consensus

FUTUREFUEL CORP Price and Consensus | FUTUREFUEL CORP Quote

Now see our private trades

Today’s Bull of the Day is a promising buy that we’re sharing with the public. Now would you like to look behind the curtain and view all our private portfolios? Starting today, for the next month, you can follow them in real time from value to momentum . . . from stocks under $10 to ETF and option plays . . . from insider trades to companies that are about to report positive earnings surprises (we’ve called them with 80%+ accuracy). You can even be privy to portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks moves >>>>

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Hertz Global Holdings: Zacks’ Bear of the Day Play

Decreased volumes, and higher net operating and administrative expenses are big drags on a balance sheet, and these are just some of the issues facing the Zacks Bear of the Day, Hertz Global Holdings (HTZFree Report) .

This Zacks Rank #5 (Strong Sell) company operates car rental business. The company’s product and services consists of Hertz Gold Plus Rewards, NeverLost(R), 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.

Recent Earnings Data

Last Tuesday, management posted Q3 16 financial results and they missed both the Zacks consensus earnings and revenue estimates.  Specifically, the company reported earnings of $1.58 per share, which was below Zacks consensus earnings estimate of $2.81.  On a year over year basis, the company saw U.S. Rental Car declines in Total revenues -2.0%, Income from continuing operations before income taxes -42%, Adjusted pre-tax income -30%, Adjusted corporate EBITDA -30%, Adjusted corporate EBITDA margins -470 bps, and Revenue per available car day -4%.

On the International Rental Car side, the company saw year over year losses in Total revenues -1.0%, Adjusted pre-tax income -6%, Adjusted corporate EBITDA -7%, and Revenue per available car day -2.0%.

Management’s Take

According to John Tague, President and CEO, “We are making progress in foundational aspects of our long-term business improvement plan, implementing new systems, improving customer service levels and launching new products. However, our near-term financial performance continues to be uneven.  A customary vehicle depreciation rate review near the close of the third quarter resulted in a substantial depreciation adjustment, particularly on compact and mid-sized vehicles, that together with rental volume at the low end of our expectations as well as higher net operating and administrative expenses impacted our performance.

“While we remain on pace to deliver $350 million of cost reduction in 2016, we fell short from a timing perspective on our internal stretch target for cost reduction.  Considering this and the potential for an additional depreciation rate adjustment in the fourth quarter, we are updating our 2016 outlook and taking incremental actions to reduce costs and drive revenue.”

Price and Consensus Graph

As you can see from the graph below, the company’s stock price and future outlook has massively declined over the past few months.

HERTZ GLBL HLDG Price and Consensus

HERTZ GLBL HLDG Price and Consensus | HERTZ GLBL HLDG Quote

Declining Estimates

Due to the poor earnings data, earnings estimates have declined for Q4 16, Q1 17, FY 16 and FY 17 over the past 7 days; Q4 16 plunged from $0.48 to $0.00, Q1 17 fell from -$0.21 to -$0.46, FY 16 collapsed from $2.93 to $0.66, and FY 17 dropped from $4.38 to $3.22.

Bottom Line

While management is working on their long-term business plan, with their $350 million cost reduction plan still on track, there are still significant headwinds in the near term.  The turnaround plan is not likely to bear fruit until the second half of 2017.

If you are inclined to invest in the Transportation Services sector, you would be best served by looking into Grupo Aeroportuario del Centro Norte, S.A.B (OMABFree Report) which currently carries a Zacks Rank #2 (Buy) rating.

So Where Are the Profitable Trades?

Be sure to short or avoid this Bear Stock of the Day. Now would you like to see Zacks’ recommendations that have the best profit potential? Starting today, for the next month, you can follow all our private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we’ve called them with 80%+ accuracy).  You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks trades >>

Realogy Holdings: Zacks’ Bear of the Day Play

In the wake of Trump’s surprising victory, investors have seen incredible volatility in a number of market sectors. One area that has been on the move more than others is the world of real estate.

That is because interest rates are soaring in anticipation of some inflationary policies from Trump (including a burst of new spending), while some think that foreign holders of Treasury bonds may be reducing their positions as well. Either way, this has pushed the 10-year yield to within striking distance of its 52 week high, hurting the appeal of housing and real estate markets in the process.

While this has obviously hit companies in the high dividend area of the real estate world, those in the services side of the market could also be impacted. Lower home sales or a more difficult housing market could definitely impact companies like Realogy Holdings ( (RLGYFree Report) and force these companies lower in the process.

RLGY in Focus

RLGY provides real estate and relocation services across the globe. This is done via a number of real estate brands, including pretty well-known ones such as Century 21, Coldwell Banker, and Sotheby’s International Realty to name a few.

The company could be under pressure if the housing market faces turmoil in the near term, while the sector outlook isn’t much better, including a bottom 25% industry rank. But it isn’t just the jarring industry outlook that is a problem for RLGY, as the company’s most recent earnings report also brought up some big questions.

Recent Earnings

In the latest report, RLGY missed earnings estimates for the second time in a row, posting 74 cents a share in earnings compared to expectations of 76 cents per share. Additionally, the most recent estimates for RLGY earnings have come in below previous expectations, as we have seen two estimates go lower for the current quarter in the past week, and one lower for the full year time frame too.

In fact, if we look at the most accurate estimate and compare it to the consensus from 30 days ago, the current quarter expectations have fallen by over 25%, while the full year and next year periods have also trended lower. Clearly, analysts aren’t big believers in RLGY’s near term potential, and it is hard to blame them considering the macro forces at play as well.

REALOGY HOLDING Price, Consensus and EPS Surprise

REALOGY HOLDING Price, Consensus and EPS Surprise | REALOGY HOLDING Quote

 

No wonder shares currently have a Zacks Rank #5 (Strong Sell), and why we are looking for more underperformance from this company in the near future.

Other Picks

While the overall segment might not be great right now, there is still hope for investors. Pennymac Mortgage ( (PMTFree Report) also operates in the real estate operations industry, but it has earned a Zacks Rank #1 (Strong Buy) instead.

Part of this is based on PMT’s stellar history in earnings season, while it doesn’t hurt that analyst estimates have also been moving higher for the company as well. So, if you are looking for a pick in this corner of the real estate market, it might be a good idea to take a closer look at PMT instead of RLGY, at least until Realogy can turn around its earnings estimate picture and post some solid numbers on that front.

More Stocks to Sell. Now.

Beyond our Bear Stock of the Day, today’s list of 220 Zacks Rank #5 Strong Sells demand even more urgent attention. If any are lurking in your portfolio or Watch List, you may want to consider removing them immediately. Many appear to be sound investments but, since 1988, such stocks have actually performed more than 11X worse than the S&P 500.

See today’s Zacks “Strong Sells” absolutely free >>

Northrop Grumman: Zacks’ Bull of the Day Play

With Trump’s stunning victory, investors are quickly reallocating their portfolios to prepare for a Republican president, and a Republican-controlled Congress as well. While there are a number of areas that look to benefit from this political situation, one that may do especially well is the defense market.

This corner of the economy could benefit from a massive surge in defense spending, as some believe that Trump will look to spend somewhere near $500 billion more on defense , pushing total U.S. defense spending near the one trillion dollar mark. As you might be able to guess, this huge increase is being viewed favorably by the defense stocks, and we have seen several of these surge following Trump’s win. Plus, the industry rank here is in the top 20% overall, so there is plenty to like in terms of investment choices.

One that might be worth a closer look by investors though, is Northrop Grumman (NOCFree Report) . This company was recently upgraded into Zacks Rank #1 (strong buy) territory while it could be a prime beneficiary of the Trump defense spending surge.

Other Factors

But beyond Trump, analysts also seem to like NOC’s prospects, as we saw a number of analysts raise their earnings estimates on NOC shares, and that was before the election took place. In fact, analysts were already baking in a year-over-year earnings growth rate of 27% for Northrop, and that is before considering Trump’s huge spending surge.

But before worrying about these lofty expectations, investors should consider that NOC does a great job in earnings season, and that it has a great history of beating estimates. This includes four straight beats of at least four percent, and only two misses in the past five years.

NORTHROP GRUMMN Price, Consensus and EPS Surprise

NORTHROP GRUMMN Price, Consensus and EPS Surprise | NORTHROP GRUMMN Quote

 

If investors add this solid history to rising estimates and a good industry situation, it is hard not to like NOC here, even with the recent jump in prices.

Bottom Line

Trump looks to be very good news for the defense industry, at least if he follows through and drives spending higher for the sector. This looks to trickle down to the many defense contractors in the nation, and really boost their bottom lines in the process.

But beyond that, it is important to consider that there are strong fundamentals for a number of companies in this market, including NOC. The industry rank is in the top 20%, there have been rising earnings estimates, and the company has a fantastic history in earnings season. So, assuming the Republican wave pushes through a bunch of spending on the industry, this could be an area to watch and NOC could be a stock to keep on your radar in the near term.

Now see our best long-term trades

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Abaxis: Zacks’ Bear of the Day Play

Abaxis (ABAXFree Report) develops, manufactures, markets, and sells portable blood analysis systems for use in human or veterinary patient care settings to provide rapid blood constituent measurements for clinicians worldwide. A miss on earnings and weakness in the sector due to a Trump presidency is making investors nervous. For these reasons Abaxis is the Bear of the Day after falling to a Zacks Rank #5 (Strong Sell).

The company has a market cap of $1.1 Billion with a PE of 38. The stock has Zacks Style Scores of “F” in Value and “D” in Growth. The company resides in an industry ranked 65 out of 265 (Top 25%) of the Zacks Industry Rank. However, the threat to Obamacare is a threat to medical device makers and the sector could suffer under Trump.

Earnings and Outlook

On October 25th, Abaxis reported earnings that caused the stock to fall 10%. The second quarter EPS came in at $0.34 versus the $0.36 expected, with revenues coming in below the $61.4 million expected at $58.6 million.

CEO Clinton Severson reviewed the quarter: “The results for Q2 continued to build on the progress achieved in Q1. Medical market revenues increased 9% and veterinary market revenues grew by 4%, compared to the same period last year. Consumables sales accounted for 78% of total revenues and increased by 9% during the quarter, compared to the same period last year. Additionally, we achieved international sales growth of 7% over the same period last year. We were particularly pleased with revenue growth of 19% in medical reagent discs over the same period last year and unit sales of medical reagent discs now account for 40% of total reagent disc unit sales.

While the tone was upbeat, traders sold the stock aggressively lower, to levels not seen since July. The stock has recovered half its losses, but investors might want to get out here as estimate revisions are headed lower.

Estimates Falling

Over the last month estimates have fallen for both the current year and next year. In addition, analysts are in full agreement in bringing down the numbers with a total of seven revision lower over for both 2017 and 2018.

For 2017, estimates have fallen 3% from $1.35 to $1.31. For 2018, there has been a 4.6% drop from $1.57 to $1.50. Abaxis will next report January 26th, expect the stock to remain week into the report as it could see its third straight miss on EPS.

A Better option

Baxter (BAXFree Report) isZacks Rank #1 (Strong Buy)and a smarter choice than Abaxis.The companymanufacture and distributes a diversified line of health care products.  Analysts have been revising estimates higher over the last month, for both fiscal years 2016 and 2017. In addition, the stock hasn’t missed on EPS in over four years.

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So Where Are the Profitable Trades?

Be sure to short or avoid this Bear Stock of the Day. Now would you like to see Zacks’ recommendations that have the best profit potential? Starting today, for the next month, you can follow all our private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we’ve called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks trades >>

In-Depth Zacks Research for the Tickers Above

Ubiquiti: Zacks’ Bull of the Day Play

Ubiquiti (UBNTFree Report) develops networking technology for service providers and enterprises worldwide. The company’s service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, and machine-to-machine communication components. Ubiquiti was founded in 2003, is based in San Jose, California and has over 500 employees. The stock is Zacks Rank #1 (Strong Buy) and todays Bull of the Day.

Ubiquiti has a market cap of $4 billion with a forward PE of 18. The stock sports Zacks Style Scores of “C” in both Value and Growth, but “A” in Momentum. The company sits in an industry that is ranked 49 out of 265 (Top 18%) in the Zacks Industry Rank. Q1 earnings and guidance were impressive and the recent dip in the stock is a buying opportunity.

Q1 Earnings and Guidance      

Ubiquiti released its third quarter earnings on November 3rd with a 32% beat. The company reported $0.79 verse the $0.69 expected. Revenue came in at $204.8 million verse the $185 million expected. Gross profit was seen at 48.0 versus the 48.3% seen last quarter.

In addition to the earnings beat, the company raised guidance for the second quarter. They now see a range of $0.73-0.79 verse the $0.69 expected. Revenue is now expected at $200-210 million verse the $188 million expected.

Stock Reaction

Traders reacted very positively to the numbers at first, sending the stock up 15% after hours. However, the next morning the stock lost almost all of its gains. This was likely traders taking profits after a nice run up in the stock. Looking into estimates, they might regret taking profits, as analysts are taking estimates higher.

Estimate Revisions

Since earnings, estimates have ticked higher across all time frames. For fiscal 2017, estimates have come up over 11% over the last 7 days, going from $2.66 to $2.96. For the current quarter, there has been a 13% jump, from $0.66 to $0.75. Earnings will next be reported on February 2nd, where the company will go for its ninth straight beat.

8 Straight Beats

Looking at the charts, the stock is now back to 2014 highs and looks to breakout above those levels. After basing in the lower $30s the stock exploded higher after fifth straight EPS surprise to the upside. Now three beats later, the stock is ready to charge into 2017 at all-time highs.

Moreover, the stock is currently holding its 50-day moving average and as long as it holds its post-earnings low above $50, it should grind higher.

In Summary

Ubiquiti’s impressive earnings past has investors salivating for all-time highs. Look for the stock to grind back to post-earnings highs and threaten the $60 level before the next earnings report in February.

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Now, which stocks should you sell?

As a Zacks Rank #1 Strong Buy, this Bull of the Day deserves consideration. But today there are 220 Zacks Rank #5 Strong Sells that demand even more urgent attention. If any of these are lurking in your portfolio, they should be removed immediately. Since 1988, such stocks have actually performed more than 11X worse than the S&P 500. See all Zacks Strong Sells and Strong Buys absolutely free >>.

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Buckle: Zacks’ Bear of the Day Play

In the past I’ve talked a lot about the death of the American mall. There are a variety of factors contributing to its demise. The most obvious is the rise of online shopping. Online you can get exactly what you want shipped to your home, ordering from the comfort of your couch. The mall, once a centerpiece of the community, is slowly but surely losing its appeal. Retailers have struggled to find that balance between those traditional brick and mortar outlets and an online presence. One such retailer that has been having a tough time adjusting is today’s Bear of the Day, Buckle (BKEFree Report) .

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. The company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. It operates stores under the Buckle and The Buckle names. The company also sells its products through its Website, buckle.com. As of August 19, 2016, it operated 470 retail stores in 44 states.

The stock is a Zacks Rank #5 (Strong Sell) right now. Mostly because three analysts have dropped their earnings estimates for the current quarter, next quarter, current year and next year. The bearish sentiment not only shows lowered estimates but also no growth year over year. Looking at the current year numbers, the consensus has dropped from $2.49 to $2.23. Next year’s number has gone from $2.43 to $2.20.

It should therefore come as no surprise that shares have come under pressure recently. In fact, shares have struggled to break a bearish trend since topping out over $35 last April. Since then, it’s been a stairway to the basement, with BKE dipping to $20 before yesterday’s broad-based rally that boosted most of the market. There is one silver lining here, the Commodity Channel Index has popped up through the zero line, giving a “Buy” signal after being oversold below -100 for the last couple of weeks.

Investors looking for other stocks in the same industry should check out Zacks Rank #1 (Strong Buy) Tillys (TLYSFree Report) or Zacks Rank #2 (Buy) Foot Locker (FLFree Report) .

More Stocks to Sell. Now.

Beyond our Bear Stock of the Day, today’s list of 220 Zacks Rank #5 Strong Sells demand even more urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. Many appear to be sound investments but, since 1988, such stocks have actually performed more than 11X worse than the S&P 500.

See today’s Zacks “Strong Sells” absolutely free >>.

Cloud Peak Energy: Zacks’ Bull of the Day Play

Finally this hard fought election has come to an end. With it, the Hillary trade is over. So that means that stocks that took a punch heading into November have a good chance of rebounding. That’s why you saw a sharp rally in stocks in industries like raw materials and construction. But the pro-Trump trade now is being especially beneficial to coal companies like today’s Bull of the Day.

Cloud Peak Energy (CLDFree Report)produces coal in the Powder River Basin in the United States. The company operates through Owned and Operated Mines, and Logistics and Related Activities. It owns and operates three surface coal mines comprising the Antelope Mine and the Cordero Rojo Mine located in Wyoming, and the Spring Creek Mine located in Montana. These mines produce subbituminous thermal coal with low sulfur content. The company sells its coal primarily to domestic and foreign electric utilities. As of December 31, 2015, it controlled approximately 1.1 billion tons of proven and probable reserves.

The stock was a Zacks Rank #1 (Strong Buy) heading into the election and should catch even more positive news following Trump’s victory. A big reason for the Zacks Rank is three analysts have increased their earnings estimates for next year. The bullish sentiment has push up our Zacks Consensus Estimate from a 74 cent loss to a 6 cent gain. That’s a huge swing in a very short amount of time.

That bullish sentiment has been met with a huge rally in the stock. Taking a quick look at the stock chart, you can see that shares have gone from $2 in July to nearly $8 during yesterday’s trading session. All the while, shares have consistently remained above the 50-day moving average. The last “Buy” signal coming from the Commodity Channel Index occurred in late October with the CCI crossing up through the zero line after being well oversold below -100. The large gap in yesterday’s trading does run the risk of getting filled should profit-takers enter the equation in the short term.

Want to see all of today’s Strong Buys?

Today’s Bull of the Day is just one of 220 Zacks Rank #1 stocks. Right now the full, up-to-the-minute list is available to you free of charge. There is no better place to start your own stock search. Plus you can access the full list of Zacks Strong Sells and a lot more of our private research. See the stocks free >>.

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Manitowoc: Zacks’ Bear of the Day Play

The Manitowoc Company (MTWFree Report) is still stuck in the downward spiral of the mobile crane business. This Zacks Rank #5 (Strong Sell) does not see an end to the challenging market conditions yet.

Manitowoc makes cranes and lift solutions in 20 countries. Headquartered in Wisconsin, it provides crawler cranes, tower cranes and mobile cranes for the heavy construction industry.

In 2015, half of its revenue was generated outside of the United States.

A Miss in the Third Quarter

On Nov 1, Manitowoc reported its third quarter results but it had already released its preliminary numbers earlier.

Even with releasing the preliminary numbers, it still missed on the Zacks Consensus Estimate by 2 cents. Earnings were a loss of $0.28 compared to the Zacks Consensus Estimate of a loss of $0.26.

Sales fell to $349.8 million from $438.2 million in the third quarter last year. The decline was primarily due to continued deterioration in the mobile crane markets, mostly in North America and the Middle East.

In better news, tower cranes are seeing growth due to residential and commercial construction trends, especially in Western Europe.

But that’s not enough to stabilize the earnings picture.

2016 and 2017 Estimates Cut Again

The near term outlook is still grim. 8 estimates were cut since the earnings report which has pushed the 2016 Zacks Consensus Estimate down to a loss of $0.40 from a loss of $0.29.

This is an earnings decline of 157% from 2015 where the company managed to earn $0.70 but that also included its commercial food service business which was spun-off.

Orders remain on the downward track. Third quarter orders fell 8% year over year due to continued softness in the North American and Middle East markets.

2017 shows some improvement but the analysts are still expecting a loss. The estimates have been cut for 2017 again and have pushed the Zacks Consensus down to a loss of $0.13.

90 days ago, the analysts were optimistic and expected to see earnings of $0.14.

Tough Time to Invest

With earnings expected to be negative this year and next, there’s not a lot of incentive for investors to be in the stock.

The big drop in the shares in the 2-year chart was due to its spin-off of its commercial foodservice supply business, Manitowoc Foodservice.

Manitowoc pays a dividend, currently yielding about 2%, but that’s not reason enough to get in at this time.

The entire heavy equipment industry is suffering. However, some of the others, such as Joy Global (JOYFree Report) , are at least still expected to post positive earnings this year and next, as anemic as those earnings are.

So Where Are the Profitable Trades?

Be sure to short or avoid this Bear Stock of the Day. Now would you like to see Zacks’ recommendations that have the best profit potential? Starting today, for the next month, you can follow all our private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we’ve called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.

Click here for all Zacks trades >>