3 Stocks to Watch on Tuesday: Rambus Inc. (RMBS), Whirlpool Corporation (WHR) and Zions Bancorp (ZION)

RMBS adj. earnings beat estimates, WHR down on revenue miss and ZION profit underwhelms

It was a down day for most major U.S. indices, with telecoms falling 0.9%, energy stocks declining 0.6%, basic materials down 0.4% and non-cyclical cons proving to be the day’s sole bright spot, up 0.1%. The S&P 500 Index tumbled 0.4%, the Dow Jones Industrial Average lost 0.2% and the Nasdaq Composite dipping 0.6%.

3 Stocks to Watch on Tuesday: Rambus Inc. (RMBS), Whirlpool Corporation (WHR) and Zions Bancorp (ZION)Rambus Inc. (NASDAQ:RMBS), Whirlpool Corporation (NYSE:WHR) and Zions Bancorp (NASDAQ:ZION) all posted their quarterly earnings data late yesterday.

Here’s how the stocks performed after Monday’s closing:

Rambus Inc. (RMBS)

Rambus shares took a hit despite the company’s earnings beat.

The company unveiled third-quarter profit of $7.7 million, or 7 cents per share, topping the year-ago figure of $4.5 million, or 4 cents per share. On an adjusted basis, Rambus earned 19 cents per share, ahead of analysts’ expectations of 17 cents a share.

Revenue also impressed in the period, coming in at $99.1 million, or 10% higher than the year-ago sales of $89.9 million. Wall Street’s consensus estimate called for revenue of $99 million for the period, according to data compiled by FactSet.

“We continue to demonstrate our leadership and execution on strategic programs with the industry’s first functional server DIMM buffer chipset to reach the speeds targeted for next-generation DDR5 and the integration of our Token Service Provider software at eftpos to support the roll out of Apple Pay in Australia,” said Dr. Ron Black, CEO of Rambus.

“We are excited by our progress, with strong execution on strategic programs for the data center and mobile edge markets, as we continue to deliver profitable growth,” he added.

For the current quarter, RMBS’ outlook is for earnings in the range of 16 cents to 22 cents per share, while analysts predict earnings of 17 cents per share, according to FactSet.

The company also sees revenue being in the range of $98 million to $104 million, in line with the Wall Street guidance of $100.5 million.

RMBS stock fell 0.4% after the bell.

Whirlpool Corporation (WHR)

It was a dismal beginning to the week for Whirlpool, which reported on its latest period.

The appliance maker said it earned $276 million, or $3.72 per share during its third quarter, compared to $238 million, or $3.10 per share in the year-ago period.

On an adjusted basis, Whirlpool earned $3.83 per share, a 4.6% improvement compared to the third quarter of last year. Analysts polled by FactSet had forecast adjusted earnings of $3.93 a share.

Revenue also missed the mark, coming in at $5.4 billion versus the consensus estimate of $5.5 billion, according to FactSet. The figure did improve 3.85% year-over-year.

“We are pleased with our revenue growth and free cash flow improvement but are not satisfied with our operating margins, which were impacted by raw material inflation, unfavorable price/mix and slow progress on our European integration,” said Marc Bitzer, CEO of Whirlpool Corporation, in a press release.

“Thus, we are implementing strong actions to deliver our long-term goals, including recently announced global cost-based price increases and a fixed cost reduction initiative,” he added.

Whirlpool’s GAAP earnings expectations for the full year are between $11.10 to $11.40 per share, while its adjusted earnings are slated to fall between $13.60 to $13.90 per share.

Analysts predict the company’s full-year adjusted earnings to be $14.61 per share.

WHR shares plummeted more than 8% after hours Monday.

Zions Bancorp (ZION)

Zions Bancorp shares also slumped late Monday on the company’s profit figures.

The financial holding company’s bottom line came in at $152 million, or 72 cents per share, during its third quarter. A year ago, Zions earned $117 million, or 57 cents per share. Analysts polled by FactSet estimated earnings of 73 cents per share.

Chairman and CEO Harris H. Simmons noted that the company’s third-quarter results reflected moderate loan growth, as well as improvement in its credit quality. Additionally, Zions’ year-to-date efficiency ratio — 62.6% — is slated to meet the company’s cost objective for 2017.

“The quarterly results were impacted by Hurricane Harvey, which led us to provide financial relief to affected employees in Texas, and to set aside additional reserves for any credit-related impact from the storm.” Mr. Simmons said in the press release.

“We are pleased with the quarterly earnings result, and look forward to continued progress in simplifying our business, meeting our customers’ needs and improving our profitability in the year ahead,” he added.

ZION stock dipped 0.9% after the bell yesterday.

As of this writing, Karl Uterhohlen did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/10/stocks-watch-tuesday-rambus-inc-rmbs-whirlpool-corporation-whr-zions-bancorp-zion/.

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