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Adeptus Health, Angie's List, eBay, Amazon and Expedia highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – April 26, 2016– Zacks Equity Research highlights Adeptus Health (ADPT) as the Bull of the Day and Angie's List (ANGI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on eBay (EBAY), Amazon (AMZN) and Expedia (EXPE).

Here is a synopsis of all five stocks:

Bull of the Day :

Adeptus Health (ADPT) is a $1 billion operator of dozens of free-standing emergency hospitals and partnerships with premier healthcare providers in Texas, Colorado, Arizona, and Louisiana. Hopefully you and your family and friends rarely need their services. But if you do, they come well prepared and well recommended.

All Adeptus Health freestanding facilities, many under the brand First Choice Emergency Rooms, are fully equipped emergency rooms with a complete radiology suite of diagnostic technology (CT scanner, ultrasound, and digital X-ray), on-site laboratory, and staffed with board-certified physicians and emergency trained registered nurses.

According to patient feedback collected by Press Ganey Associates Inc., Adeptus Health provides the highest quality emergency medical care and received the 2013, 2014 and 2015 Press Ganey Guardian of Excellence Award for exceeding the 95th percentile in patient satisfaction nationwide.

The Sirens of High Double-Digit Growth

Since going public in 2014, Adeptus attracted a lot of attention early on that sent shares over $120 in the summer of 2015. While investor exuberance may have gotten ahead of the growth story then, shares were knocked back to earth and the pessimism swung the pendulum the other direction.

Looking at the growth numbers, many analysts justify a 25X to 30X multiple for this 30%+ growth story and come up with price targets near $100. Here were the highlights from the Adeptus top and bottom line earnings beats reported April 20 that keep analysts thinking in that direction and raising EPS estimates to keep ADPT a Zacks #1 Rank...

First Quarter 2016 Highlights

Systemwide net patient services revenue was $140.4 million versus $84.0 million in prior year, an increase of 67%

Net operating revenue was $112.8 million versus $81.5 million in prior year, an increase of 38%

Adjusted EBITDA was $21.7 million versus $13.3 million in prior year, an increase of 64%

Adjusted earnings per share was $0.47 and GAAP earnings per share was $0.32

Cash flow used in operating activities was $7.4 million versus $12.0 million in prior year

Net income attributable to Adeptus Health Inc. was $4.5 million versus $0.6 million in prior year

Same store revenue increased 12% and same store volumes increased 15% versus prior year

Opened seven freestanding facilities during the first quarter 2016

2016 Guidance and Expansion Plans

Management continues to expect system-wide net patient services revenue, which includes revenue from their unconsolidated joint ventures, of $635.0 million to $665.0 million for the full year 2016. They expect Adjusted EBITDA of $108.0 million to 113.0 million and Adjusted earnings per share of $2.50 to $2.60 for the full year 2016.

That $2.50 to $2.60 represents over 100% EPS growth from 2015. And 2017 estimates are seeing the potential for 50%+ growth.

Adeptus opened seven new freestanding emergency rooms during the quarter, including four consolidated facilities in Texas and three joint-venture facilities. The JV breakdown was two facilities in Arizona in partnership with Dignity Health and one in Colorado in partnership with UC Health.

The company remains on track to open 27 new facilities in 2016, consisting of 24 freestanding facilities and three hospitals, including a New Orleans hospital with an expected opening in Q4 and two hospitals in Denver and Colorado Springs in the second half. A Houston-based hospital is also under construction and is expected to open in 2017.

New facilities typically breakeven with $4 million in annual net revenue, but have historically generated in the range of $5 million-$6 million in annual net revenue within 15 months after opening. Average annual operating income, excluding depreciation and amortization, for new facilities has historically been between $1.0 million-$2.0 million, representing an operating margin of between 28-33%.

 

Bear of the Day:

Angie's List (ANGI) posted a surprising loss for its first quarter of 2016 due to higher spending and lower revenues as it attempts to rehab its online business model, which connects consumers with home service providers, more in line with "freemium" trends.

According to Joshua Jamerson, writing for Dow Jones & Company on April 20...

Chief Executive Scott Durchslag said the company made "good progress" during the period as it rolls out the new model, with higher logins, searches, contract value and reviews in some test markets. The company said it was on track to finish removing its paywall for the company's online ratings and reviews by this summer.

Though the traffic to Angie's site climbed about 25% in the quarter compared with a year ago—Mr. Durchslag, on a conference call, said the increase was due to digital advertising and search engine optimization. The higher traffic didn't translate to greater membership growth or revenue.

Analysts Slash EPS Projections

While ANGI shares tumbled under $7 on that report and then recovered th

Additional content:

Peek into eCommerce Stocks for Q1 Earnings Season

We are in the thick of the first-quarter earnings season, with more than 175 S&P 500 companies scheduled to post their financial numbers this week. By the end of next week, we will have seen Q1 results from more than 60% of the index members.

Decent results till now have reinstated hopes that were dimmed by dull projections issued at the onset of the season. However, the earnings scenario for the overall Technology sector remains weak, with poor results from bellwethers like Google’s parent Alphabet and Microsoft last week. For the Tech sector as a whole, we have Q1 results from 49.6% of its total market cap in the S&P 500 index. Total earnings for these Tech companies are down -6% on -1% lower revenues, with 72.2% beating EPS estimates and 50% beating revenue estimates.(Read more: Q1 Earnings Season Pattern Remains Intact)

E-commerce is one of the most important components of the technology sector. The online trend continues to gather steam as the younger generation is rapidly adapting to the advancing technology. Also, the improvements in the mobile device segment have led the online companies to deliver strong numbers.

Here, we take a sneak peek into three major e-commerce providers like eBay (EBAY), Amazon (AMZN) and Expedia ( EXPE) that are lined up to report earnings this week (Apr 25–29):

eBay, a leading online retailer, will report first-quarter 2016 results on April 26. For the quarter, eBay has an Earnings ESP of +0.00%. The company carries a Zacks Rank #3 (Hold). So, we can’t say for sure whether the company will beat estimates this time around. The Zacks Consensus Estimate is pegged at 39 cents.

Last quarter, the company recorded a positive earnings surprise of 6.98%. Notably, eBay outperformed the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 9.30%.

eBay’s several initiatives including the collection of data from sellers, application of artificial intelligence for a better user experience, increased use of social media to drive traffic and focus on a discovery-based user experience will continue to drive revenues in the upcoming quarter.

However, the separation from PayPal will continue to hurt the company’s profits in the to-be-reported quarter. (Read more: What to Expect from eBay Inc this Earnings Season? )

Amazon, the world's largest Internet retailer, will report first-quarter 2016 results on April 28. For the quarter, Amazon has an Earnings ESP of +0.00%. It currently carries a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 60 cents.

Last quarter, the company recorded a negative earnings surprise of 37.89%. However, Amazon outperformed the Zacks Consensus Estimate in three out of the trailing four quarters, with an average positive surprise of 116.62%.

Amazon will continue to be the leading online retailer in the foreseeable future. The company’s success is its Prime membership program, solid growth of Amazon Web Services, its cloud service and expansion in the digital entertainment space with music, video and gaming will add to revenue growth in the upcoming quarter. However, despite the strong growth prospects in every area of its business, the company does need to make significant investments to deliver real profits. (Read more: Amazon 1Q Earnings Preview: Watch Out For Rising Costs )

Expedia, a leading online travel companies in the world, will report first-quarter 2016 results on April 28. The company has an Earnings ESP of 0.00% and it carries a Zacks Rank #3. The Zacks Consensus Estimate is pegged at a loss of 29 cents.

Last quarter, Expedia’s earnings missed the Zacks Consensus Estimate. Notably, the company missed the consensus mark in all the preceding four quarters, resulting in a negative average surprise of 97.20%. So going by the historical performance, its chances of a positive surprise are nil.

Expedia doesn’t have a good track record, so there is a certain amount of uncertainty in its near-term results. However, the company’s recent acquisitions to strengthen its domestic business and grow in some international markets could add to its top-line figures in the to-be-reported quarter. (Read more: Will Expedia Beat 1Q Earnings Estimates?)

Stay tuned! Check back later for our earnings coverage of these stocks.

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ADEPTUS HEALTH (ADPT): Free Stock Analysis Report
 
ANGIES LIST INC (ANGI): Free Stock Analysis Report
 
EBAY INC (EBAY): Free Stock Analysis Report
 
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EXPEDIA INC (EXPE): Free Stock Analysis Report
 
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