CHICAGO, Oct. 31, 2014 /PRNewswire/ -- Zacks Equity Research highlights Kennedy-Wilson (NYSE:KW-Free Report) as the Bull of the Day and Vale Sa (NYSE:VALE-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onGroupon (Nasdaq:GRPN-Free Report), LinkedIn (NYSE:LNKD-Free Report) and Twitter (NYSE:TWTR-Free Report).
Here is a synopsis of all five stocks:
Kennedy-Wilson (NYSE:KW-Free Report) is the best treat for you to put into your plastic jack-o-lantern today. This Real Estate Operations Company is going to scare up a positive earnings spike as they build up to and announce their third quarter earnings on November 5th.
During Q2 2014 Kennedy-Wilson finalized their IPO in London (KWE LN), which enables it to broaden their investments in Europe. Kennedy-Wilson owns a 13.2% stake in the spinoff.
Between late March and July of this year, Kennedy-Wilson spent the entire $1.7 billion in proceeds from the KWE LN IPO, and purchased real estate related investments throughout Europe. Further, the European spinoff has been looking into further acquisition opportunities in Italy, Spain, and Portugal.
Also, Kennedy-Wilson recently purchased a 312 unit apartment community, adding to their growing presence in Denver. In total, Kennedy-Wilson global multifamily portfolio now totals 19,683 units including 732 units in greater Denver Colorado.
According to the company as of yesterday, Kennedy-Wilson's real estate related acquisitions by the company and its equity partner's year-to-date total more than $2.6 billion, which includes just under $2 billion acquired by Kennedy Wilson Europe Real Estate plc.
This quarter will be the first quarter that will include impact from the operations in Europe by KWE London. And Zacks models are expecting Kennedy-Wilson to post solid earnings beat of 35.0%
Vale Sa (NYSE:VALE-Free Report) the world's number one iron ore producer, announced earnings before the bell on Thursday, and they missed HUGE! This is the third consecutive earnings and revenue miss by the company.
The Zacks Consensus Revenue estimate was at $1.06 billion, and Vale posted a net loss of -$1.44 billion, a massive gap in expectation verse actual. Sadly this seems to be a pattern because Vale missed the last 2 quarters by significant margins as well.
On the Earnings front, Vale has missed the Zacks Consensus Earnings Estimate for the past three consecutive quarters, and analysts have noticed. Going into earnings Q3 earnings the Zacks Consensus Earnings Estimate has declined for Q3, Q4, FY 2014, FY 2015 by a material amount for each time period. If you look at the chart below, it shows Vale's Price and EPS Surprise over the past several years. You will notice the sustained downturn after earnings for the past 7 negative quarters.
The issue is twofold, first the economic situation in Brazil, and specifically the declining value of their currency. The second part is that iron ore prices have just tanked, and are now at its lowest level since 2010. Vale derives nearly two thirds of their revenue from this natural resource. Neither one of these situations is likely to reverse itself in the near term as well. Moreover, the company now sees itself with inventories that have risen by over 9 million tons.
Additional content:
Groupon, LinkedIn Beat Estimates in Q3
Two more innovative companies have reported earnings results after the bell Thursday, daily-deals provider Groupon (Nasdaq:GRPN-Free Report) and job-oriented social media firm LinkedIn (NYSE:LNKD-Free Report) both beat revenue estimates fot their September quarters, along with beating earnings estimates. However, both companies left after-market traders wanting immediately after their reports on less-than-stellar Q4 guidance.
Groupon posted a loss of 1 cent per share, beating the Zacks consensus estimate of -4 cents, and revenues spiked nicely to $757 million compared to the $742 expected. LinkedIn also posted earings of 10 cents per share (adjusted, including stock-based compensation costs) on $568 million in sales, topping the -5 cents and $562 million we were looking for. Both companies cited admirable year-over-year growth in the mid-double-digits, and attributed much of their positive outlook to its recent acquisitions: Ticket Monster for Groupon (which sent its Rest of the World segment through the roof with triple-digit growth from a year ago) and Bizo (which should play a big role in LinkedIn's B2B business in the coming quarters).
But we saw Groupon shares dip upon the first read-through of its earnings numbers, and that may have to do with its guidance for the December quarter a tad lower than analysts may have been expecting: the Zacks consensus is looking for $921 million in sales for the company's Q4, and guidance was for a range of $875 - 925 million. Groupon has pushed back into positive territory of late in the after-market; we shall see at tomorrow's opening bell if the company can keep some stock price momentum following regular Thursday's 3.45% gains.
Groupon could really use the boost -- before the earnings announcement, the company had been trading down nearly 50% year to date. But with growth billings up 39% and total units up 92% year over year, perhaps we're finally seeing Groupon push toward profitability.
LinkedIn's Q4 guidance was far worse than investors were looking for: a range of $600 - 605 million for the December quarter is well short of the $621 million in the Zacks consensus. Perhaps the company is a bit unsure when meaningful sales will be generated by its Sales Navigator stand-alone solution for sales reps and clients, as well as the previously mentioned Bizo.
Surprisingly, though, LinkedIn isn't paying the price for weaker growth projections the way Twitter (NYSE:TWTR-Free Report) did earlier this week. Its shares are up roughly 2.5% in late trading, following modest gains early Thursday and 3.5% gains over the past five days.
Both Groupon and LinkedIn are down since this time a year ago, but clearly there is much money riding on these 21st century firms figuring out how to best monetize their various services. Groupon is currently a Zacks Rank #3 and LinkedIn a Zacks Rank #2 (Buy).
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