As the earnings rollercoaster continues, Cantor Fitzgerald analysts are chiming in with divided perspectives on eBay Inc (NASDAQ:EBAY) and Exponent, Inc. (NASDAQ:EXPO). After the companies released their quarterly prints yesterday, while eBay’s shares are falling almost 8% in after-hours trading, Exponent’s shares are climbing close to 9%. Let’s see what the analysts are saying:
eBay released its third-quarter earnings last night that have Cantor Fitzgerald top analyst Youssef Squali remaining sidelined on the e-commerce and online auction leader, despite noting the results were “good” when placed in context of “muted expectations show that eBay continues to make progress in its efforts to improve the user experience.”
As such, the analyst reiterates a Hold rating on shares of EBAY while raising the price target from $27 to $30, which represents a nearly 7% downside from where the stock is currently trading.
The company yielded $0.45 in EPS on $2.22 billion in revenue, which notes a 6% increase in year-over-year, compared to the Street’s projection of $0.44 in EPS on $2.19 billion in revenue.
Squali opines, “Soft 4Q guidance and lack of visibility into how quickly these efforts could reignite Y/ Y GMV growth imply that the stock is likely to remain range-bound short term, especially after a +25% YTD performance. We find the stock fairly valued and near-term catalysts lacking, but strong FCF generation and $2.3B of buyback availability limit downside risk.”
“Soft 4Q guidance suggests pickup in growth likely won’t happen until 2017 at earliest,” the analyst adds. From Squali’s opinion, the company’s low top-line growth is a mirror of the sluggish “pace of turnaround in marketplaces.”
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Youssef Squali has achieved a high ranking of #4 out of 4,180 analysts. Squali upholds a 71% success rate and garners 14.9% in his annual returns. When recommending EBAY, Squali earns 9.7% in average profits on the stock.
TipRanks analytics exhibit EBAY as a Buy. Based on 23 analysts polled in the last 3 months, 10 rate a Buy on EBAY, 11 maintain a Hold, while 2 issue a Sell. The 12-month price target stands at $33.60, marking a 3% upside from where the shares last closed.
From Cantor Fitzgerald analyst Joseph Foresi‘s perspective, Exponent’s release of third-quarter results yesterday is indicative of “a step in the right direction through lingering headwinds,” and as such, he remains bullish on the stock.
EXPO brought in net revenue of $74.2 million, which beat Foresi’s projection of $73.2 million. The company’s total revenues reached $77.6 million, beating consensus of $74.8 million. Additionally, margins outclassed expectations, thanks to “lower-than-expected G&A and overall operating expenses.” Meanwhile, EXPO’s EBITDAS margin of 29.7% also was ahead of Foresi’s estimate of 27.6%. The company’s quarterly EPS was $0.42, ahead of both Foresi’s projection of $0.37 as well as the Street’s estimate of $0.34.
Considering EXPO performed better than initially anticipated, Foresi in turn has boosted his full-year estimates, raising revenue from $291.3 million to $296.7 million and EPS from $1.62 to $1.70. Additionally, EXPO management lifted 2016 revenue guidance to “flat growth” as well as increased EBITDA margin expectations.
The analyst believes, “The good news is the company appears to be slightly ahead of its plan to regain momentum as results came in ahead of expectations. We do not see the current headwinds as reflective of core fundamentals, which remain healthy, in our view.”
“We maintain our BUY rating on Exponent, as we believe the nature of its business gives it an advantage in its ability to deliver results regardless of the economic backdrop, a positive in the present uncertain economic climate. The company reported a slight decline in revenues but ahead of expectations, as it is making its way through headwinds associated with softness in a few industries ahead of schedule. We expect revenues to return to growth in 2017 with the opportunity for upside as headwinds associated with recent quarterly results subside,” Foresi concludes.
On the heels of its quarterly report, the analyst reiterates a Buy rating on EXPO with a price target of $57, which represents a nearly 14% increase from where the shares last closed.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, one-star analyst Joseph Foresi is ranked #3,699 out of 4,180 analysts. Foresi has a 42% success rate and faces a loss of 2.7% in his yearly returns. However, when recommending EXPO, Foresi gains 0.9% in average profits on the stock.