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Travelport Worldwide, Crocs and Alphabet highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – April 25, 2016– Zacks Equity Research highlights Travelport Worldwide (TVPT) as the Bull of the Day and Crocs (CROX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet (GOOGL).

Here is a synopsis of all three stocks:

Bull of the Day :

Travelport Worldwide (TVPT) beat the Zacks Consensus Estimate about two months ago extending its streak to four in a row. The stock is a Zacks Rank #1 (Strong Buy) and today it is the Bull of the Day.

The Numbers

TVPT beat the Zacks Consensus Estimate of $0.13 by $0.06 for a huge 46% positive earnings surprise. Revenues came in a little above expectations at $535 million for a 2.7% positive revenue surprise.

Description

Travelport Worldwide offers a travel commerce platform that provides distribution, technology, payment, and other solutions for the travel and tourism industry. Travelport Worldwide was incorporated in 2006 and is headquartered in Langley, the United Kingdom.

Earnings History

As noted above, the most recent earnings beat was the fourth consecutive time the company posted earnings ahead of the Zacks Consensus Estimate. Beats are always good to see, but the numbers that TVPT has been posting are even better.

The positive earnings surprises of 14%, 52%, 31% and 46% (respectively) are nothing to shake a stick at. Those are big beats!

Estimates

The FY16 Zacks Consensus Estimate has been moving higher. The number stood at $0.93 in January and moved higher to $0.96 in February on the strength of the most recent beat. We are currently at $0.97, as the estimate keep creeping higher and higher.

The FY2017 Zacks Consensus Estimate is also inching higher, moving from $1.10 to $1.14 over the same time period.

Bear of the Day:

Crocs (CROX) has missed the Zacks Consensus Estimate in each of the last two reports, and it wasn't even close. Misses of $0.41 and $0.42 translated and it is now a Zacks Rank #5 (Strong Sell) and today it is the Bear of the Day.

The Numbers

CROX missed the Zacks Consensus Estimate of ($0.35) by $0.42 for a 120% negative earnings surprise. Revenues came in a little above expectations at $209M for a 2.8% positive revenue surprise.

Description

Crocs makes and sells casual lifestyle footwear and accessories. As of December 31, 2015, Crocs operated 275 retail stores; 98 kiosks and store-in-stores; 186 outlet stores; and 12 company-operated e-commerce Web stores. The company was founded in 1999 and is headquartered in Niwot, Colorado.

Earnings History

Usually when a stock is the Bear of the Day, the earnings history is filled with misses. This is not the case for CROX, as it is mostly hit and miss. The company has beat the Zacks Consensus Estimate in three of the last six quarters.

Estimates

Here is the real reason the stock is a Zacks Rank #5 (Strong Sell) and the Bear of the Day. The Zacks Consensus Estimate has fallen steadily over the last few months. The FY16 estimate stood at $0.55 in September but fell to $0.32 in December and is now down to $0.20 in April.

Next year is seeing a similar move to the downside, with numbers sliding from $0.86 to $0.61 down to $0.53 over the same time period as mentioned above. That is the reason this stock is a Zacks Rank #5 (Strong Sell).

Additional content:

What Went Wrong with Q1 Earnings for GOOGL?

It wasn’t a great earnings season for Alphabet (GOOGL) as the company missed on both the top and bottom lines. Shares were down about six percent following the report and investors seem uncertain of where the company is going in the near term.

There were actually a few key positives for investors to hang their hats on this quarter, despite the negative reaction. Sales growth was in double digit territory while margins actually improved in the quarter. And, their Google play division saw nice revenues to highlight the ‘other bets’ category.

But speaking of the other bets division, this was actually one of the big reasons for the Google earnings miss. Operating losses ballooned here thanks to more spending in the Google Fiber division, and sluggish performance in areas like Nest, among others.

This could result in an interesting situation for GOOGL in the months ahead. The near term performance might be pressured by sluggish earnings and more volatility, largely thanks to the Other Bets division. However, if these areas pay off, it could be a boon for Alphabet stock, and especially if their core business remains a strong performer in the interim.

Make sure to watch the video for more discussion of Alphabet’s report and near term performance. We also discuss where GOOGL might be headed in the long term, and what investors need to watch in the months ahead for this important stock. And make sure to tune in next week for more earnings insights!

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About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

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TRAVELPORT WWD (TVPT): Free Stock Analysis Report
 
CROCS INC (CROX): Free Stock Analysis Report
 
ALPHABET INC-A (GOOGL): Free Stock Analysis Report
 
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