Finisar, AZZ, Tesla Motors, Nissan and Google highlighted as Zacks Bull and Bear of the Day
CHICAGO, Nov. 6, 2013 /PRNewswire/ -- Zacks Equity Research highlights Finisar (Nasdaq:FNSR-Free Report) as the Bull of the Day and AZZ Inc (NYSE:AZZ-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on theTesla Motors (Nasdaq:TSLA-Free Report), Nissan (OTC:NSANY-Free Report) and even Google (Nasdaq:GOOG-Free Report).
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Here is a synopsis of all five stocks:
Finisar (Nasdaq:FNSR-Free Report) saw a big tumble in its stock on October 24, a day after AT&T reported earnings. Since that time, analysts have increased estimates helping push FNSR to a Zacks Rank #1 (Strong Buy). It is the Bull of the Day.
Nearly the entire fiber optic industry had a dimmer switched lowered on their stock prices on October 24. AT&T reported earnings and after increasing CapEx spending in the 3rd quarter, analysts questioned if that rate would continue.
Reports that the telecom giant would not spend as much sent its smaller suppliers tumbling lower. Of course this needs to be put into perspective, which is what analysts have done in recent weeks, but investors might have missed.
Finisar makes optical subsystems and components for data communication and telecommunication applications. The company's optical subsystems primarily consist of transmitters, receivers, transceivers, transponders, and active optical cables. Finisar was founded in 1987 and is headquartered in Sunnyvale, California.
It should be noted AT&T is not the only important teleco that requires assistance from fiber optics companies like FNSR. Verizon is also a major player and their CapEx guidance at the end of the second quarter was very positive.
AZZ Inc (NYSE:AZZ-Free Report) has missed earnings in three of the last four quarters and anlaysts are taking estimates lower. That is an equation that ends up becoming a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
The last two quarters have seen some pretty sizable misses of the Zacks Consensus Estimate. A negative 8% earnings surprise was followed up by a 14% decline in the stock price in late June. Then there was a negative 12% earnings surprise came in late September and the stock slid by 3% in the session following the report.
AZZ incorporated manufactures electrical equipment and components for power generation, transmission and distribution, and the general industrial markets. AZZ incorporated was founded in 1956 and is based in Fort Worth, Texas.
Outside of the recent misses, AZZ generally has a clean earnings history. To find the last miss, one needs to go all the way back to 2009. There were a few "meets" sprinkled in there, but the majority of reports have been earnings beats.
Still the concern over the recent quarters can be linked to one significant factor. The Zacks Consensus Estimate for revenues for AZZ has been missed in each of the last four quarters. The two most recent quarters were misses of 7.8% and 6.6% respectively.
Additional content:
Tesla Accelerates on Revs but Stock Takes Hit
Premier American electric car manufacturer Tesla Motors (Nasdaq:TSLA-Free Report) reported Q3 earnings after the bell Tuesday, zooming past revenue estimates of $566 million to $603 million in the September quarter. The Zacks Consensus Estimate for quarterly earnings was $0.00 per share, and minus stock-based compensation, the Zacks EPS for Tesla in the quarter is -$0.05 per share (non-GAAP, the company reported 12 cents, a 1-cent beat). From our view, call it a mixed report.
Shares are selling off heavily after-hours, after a slightly positive trading day in the regular Tuesday session; TSLA is down 11% as of this write-up. Zero Emission Vehicle (ZEV) credits were light, and CEO (and real-life Buckaroo Banzai) Elon Musk's goal of 25% gross margins reached 21% in the quarter, but it's unclear at this stage why traders are selling off so aggressively.
After all, earnings for Tesla are not as important as revenues in its still-nascent stage. Rolling out more and more of the popular Model S cars, working on bringing to market its Model X SUV crossover, and building out a "supercharger corridor" all the way up the Pacific Coast have been requiring a few capital outlays in the quarter, to say the least. And that's before mentioning the potential burgeoning race in the next decade to producing semi-autonomous cars, which appears will include players such as Nissan (OTC:NSANY-Free Report) and even Google (Nasdaq:GOOG-Free Report).
The company's letter to shareholders indicates Tesla is on track to have built 21,500 in 2013 by year's end, and 5500 Model S's were delivered in its 3rd quarter. Pretty impressive for an auto company that first put a Roadster in someone's garage only five years ago.
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