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Exxon Mobil, Texas Roadhouse, T-Mobile, Mondelez and Lyft highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – November 3, 2021 – Zacks Equity Research Shares of Exxon Mobil Corporation (XOM - Free Report) as the Bull of the Day, Texas Roadhouse, Inc. (TXRH - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on T-Mobile US, Inc. (TMUS - Free Report) , Mondelez International, Inc. (MDLZ - Free Report) and Lyft, Inc. (LYFT - Free Report) .
Based in Irving, Texas, ExxonMobil divides its operations into three main segments: Upstream (exploration & production), Downstream (refining) and Chemical (manufacturing & marketing petrochemicals). Over the years, the company has achieved bellwether status in the energy space and an integrated capital structure that has historically produced industry-leading returns.
Q3 Earnings Recap
The energy giant reported stronger-than-expected third quarter results last week.
Adjusted earnings of $1.58 per share, or $6.8 billion, came in just ahead of the consensus estimate of $1.56 as well as increasing by 18 cents over the prior year period. Group revenues spiked 60% to $73.9 billion, also beating expectations of $73.34 billion.
Production levels rose to 3.7 million barrels per day during the period.
Higher West Texas Intermediate crude prices also helped boost XOM’s Q3 performance. WTI traded between $75 and $78 per barrel over the three months ending in September, reflecting a price range that was 95% higher than the same period in 2020.
“All three of our core businesses generated positive earnings during the quarter, with strong operations and cost control, as well as increased realizations and improved demand for fuels,” said CEO Darren Woods, chairman and chief executive officer.
XOM Breaks Out
Year-to-date, shares of XOM have jumped 57.25%, which is nicely above the S&P 500’s 23+% increase. Earnings estimates have been rising too, and XOM is a Zacks Rank #1 (Strong Buy) right now.
For fiscal 2021, eight analysts have revised their bottom-line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up 60 cents to $5.11 per share. Earnings are expected to grow considerably compared to the prior year period. Fiscal 2022 looks strong too; seven analysts have upped their outlook and our consensus estimate has climbed 78 cents to $5.69 per share.
Looking ahead, management is confident about its path moving forward. Woods commented that the company’s balance sheet is recovering strongly; free cash flow easily covered its dividend in Q3 as well as $4 billion in debt reduction.
This allowed ExxonMobil to not only increase its shareholder payout, maintaining 39 consecutive years of annual dividend growth, but the company also announced plans for a $10 billion share buyback program beginning next year.
ExxonMobil hasn’t been the only oil stock enjoying a rebound in demand lately, and if the current trend continues, shareholders could be in store for even more gains.
If you’re an investor searching for an energy sector stock to add to your portfolio, make sure to keep XOM on your shortlist.
Texas Roadhouse is a full-service, casual dining restaurant chain known for its seasoned and aged steaks that are hand cut daily, and rustic, Texas-themed laidback décor. The company currently has 540 company-owned locations and another 97 franchised stores primarily in suburban and rural areas throughout the U.S.
Q3 Earnings Recap
Diluted earnings of $0.75 per share missed the Zacks Consensus Estimate of $0.81 per share, but the bottom-line figure increased 79.3% and 43.6% compared to 2020 and 2019, respectively.
Total revenue hit $868.9 million. Comparable restaurant sales were solid, growing 30.2% and 22.3% compared to 2020 and 2019, while average weekly sales at company restaurants were $120,094 *15.1% were to-go sales).
However, the increase in comps was partially offset by higher food and beverage costs driven by commodity inflation of 13.9% (this was primarily related to higher beef costs).
“There is no doubt that our industry is being challenged in a number of ways including higher food costs, supply chain shortages, and a tight labor market. We are managing through these pressures and staying committed to our long-term fundamentals," said CEO Jerry Morgan.
Bottom Line
TXRH is now a Zacks Rank #5 (Strong Sell).
Seven analysts have cut their full year earnings outlook over the past 60 days. Texas Roadhouse’s bottom line is actually expected to increase over 684% year-over-year (likely reflecting a pandemic-related bump), but the consensus estimate has fallen $0.18 to $3.53 per share for fiscal 2021. Next year’s earnings consensus has dropped as well, with six analysts lowering their forecast.
Shares have traded choppily so far in 2021. Year-to-date, TXRH is up about 12.3% compared to the S&P 500’s gain of 23+%.
Following the release of its Q3 earnings, Texas Roadhouse was hit by a slew of price target cuts. Analysts at BMO Capital, BTIG, Morgan Stanley, and Credit Suisse all lowered their targets, citing negative margin impacts from commodity and labor inflation. These challenges will likely persist into 2022, so those interested in TXRH should be prepared for more ups and downs.
Additional content:
All 4 Major Indexes Now at Record Highs
The four top stock market indexes managed to scale higher to new record closes, setting new highs routinely. This is reminiscent of early September, toward the end of Q2 earnings season, which brought the same level of exuberance among market participants — and largely for the same reasons: stronger-than-expected Q3 earnings season.
The Dow beat the field modestly, +0.39% on the day — off intra-day highs by about 30 points or so — to cross above 36K for the first time ever. The S&P 500 wasn’t far behind, +0.37% on the day, with the Nasdaq close behind it, +0.34% points. The Russell 2000 joined the party this afternoon with its first record-high close since March of this year, +0.16%. The small-cap index has gained +4.8% since just last Wednesday.
With the exception of Energy (which had been on a strong run of late) and Consumer Discretionary, the nine remaining sectors in the S&P all went up in Tuesday regular trading, signifying growth across industries. We shall see if this week’s monthly jobs reports or a decision regarding tapering asset purchases from the Fed Wednesday will hamper the positive sentiment currently awash in the market, or if we might see stock prices stoked even higher from here.
T-Mobile posted a mixed Q3 after the closing bell today, beating earnings estimates by a penny to 55 cents per share (down more than -50% year over year) on $19.62 billion in quarterly sales, which were beneath the $20.10 billion in the Zacks consensus. Post-paid net adds outperformed expectations, however, to 1.3 million, and guidance was up. Shares bounced back +2% after initially falling on the news.
International snacking company Mondelez topped both earnings and revenue estimates after the bell, beating on earnings by a penny to 71 cents per share on $7.1 billion in revenues, which surpassed the $7.04 billion expected. Margins of 38.3% were in-line with estimates, and Organic Revenue outperformed expectations by 200 basis points to +5.5% on +26% growth in Latin America. Shares are up marginally in late trading.
Rideshare major Lyft posted a surprise positive earnings number in its Q3 report after the bell Wednesday, to 5 cents per share from an expected -3 cents. Revenues of $864.4 million swept past the $860.24 million on adjusted EBITDA — the preferred metric for rideshare companies — to $67.3 million in the quarter. Average revenue per user grew higher than expected while overall active riders slipped a bit in Q3. Shares are up +3.7% on the news in the after-market.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Exxon Mobil, Texas Roadhouse, T-Mobile, Mondelez and Lyft highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – November 3, 2021 – Zacks Equity Research Shares of Exxon Mobil Corporation (XOM - Free Report) as the Bull of the Day, Texas Roadhouse, Inc. (TXRH - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on T-Mobile US, Inc. (TMUS - Free Report) , Mondelez International, Inc. (MDLZ - Free Report) and Lyft, Inc. (LYFT - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Based in Irving, Texas, ExxonMobil divides its operations into three main segments: Upstream (exploration & production), Downstream (refining) and Chemical (manufacturing & marketing petrochemicals). Over the years, the company has achieved bellwether status in the energy space and an integrated capital structure that has historically produced industry-leading returns.
Q3 Earnings Recap
The energy giant reported stronger-than-expected third quarter results last week.
Adjusted earnings of $1.58 per share, or $6.8 billion, came in just ahead of the consensus estimate of $1.56 as well as increasing by 18 cents over the prior year period. Group revenues spiked 60% to $73.9 billion, also beating expectations of $73.34 billion.
Production levels rose to 3.7 million barrels per day during the period.
Higher West Texas Intermediate crude prices also helped boost XOM’s Q3 performance. WTI traded between $75 and $78 per barrel over the three months ending in September, reflecting a price range that was 95% higher than the same period in 2020.
“All three of our core businesses generated positive earnings during the quarter, with strong operations and cost control, as well as increased realizations and improved demand for fuels,” said CEO Darren Woods, chairman and chief executive officer.
XOM Breaks Out
Year-to-date, shares of XOM have jumped 57.25%, which is nicely above the S&P 500’s 23+% increase. Earnings estimates have been rising too, and XOM is a Zacks Rank #1 (Strong Buy) right now.
For fiscal 2021, eight analysts have revised their bottom-line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up 60 cents to $5.11 per share. Earnings are expected to grow considerably compared to the prior year period. Fiscal 2022 looks strong too; seven analysts have upped their outlook and our consensus estimate has climbed 78 cents to $5.69 per share.
Looking ahead, management is confident about its path moving forward. Woods commented that the company’s balance sheet is recovering strongly; free cash flow easily covered its dividend in Q3 as well as $4 billion in debt reduction.
This allowed ExxonMobil to not only increase its shareholder payout, maintaining 39 consecutive years of annual dividend growth, but the company also announced plans for a $10 billion share buyback program beginning next year.
ExxonMobil hasn’t been the only oil stock enjoying a rebound in demand lately, and if the current trend continues, shareholders could be in store for even more gains.
If you’re an investor searching for an energy sector stock to add to your portfolio, make sure to keep XOM on your shortlist.
Bear of the Day:
Texas Roadhouse is a full-service, casual dining restaurant chain known for its seasoned and aged steaks that are hand cut daily, and rustic, Texas-themed laidback décor. The company currently has 540 company-owned locations and another 97 franchised stores primarily in suburban and rural areas throughout the U.S.
Q3 Earnings Recap
Diluted earnings of $0.75 per share missed the Zacks Consensus Estimate of $0.81 per share, but the bottom-line figure increased 79.3% and 43.6% compared to 2020 and 2019, respectively.
Total revenue hit $868.9 million. Comparable restaurant sales were solid, growing 30.2% and 22.3% compared to 2020 and 2019, while average weekly sales at company restaurants were $120,094 *15.1% were to-go sales).
However, the increase in comps was partially offset by higher food and beverage costs driven by commodity inflation of 13.9% (this was primarily related to higher beef costs).
“There is no doubt that our industry is being challenged in a number of ways including higher food costs, supply chain shortages, and a tight labor market. We are managing through these pressures and staying committed to our long-term fundamentals," said CEO Jerry Morgan.
Bottom Line
TXRH is now a Zacks Rank #5 (Strong Sell).
Seven analysts have cut their full year earnings outlook over the past 60 days. Texas Roadhouse’s bottom line is actually expected to increase over 684% year-over-year (likely reflecting a pandemic-related bump), but the consensus estimate has fallen $0.18 to $3.53 per share for fiscal 2021. Next year’s earnings consensus has dropped as well, with six analysts lowering their forecast.
Shares have traded choppily so far in 2021. Year-to-date, TXRH is up about 12.3% compared to the S&P 500’s gain of 23+%.
Following the release of its Q3 earnings, Texas Roadhouse was hit by a slew of price target cuts. Analysts at BMO Capital, BTIG, Morgan Stanley, and Credit Suisse all lowered their targets, citing negative margin impacts from commodity and labor inflation. These challenges will likely persist into 2022, so those interested in TXRH should be prepared for more ups and downs.
Additional content:
All 4 Major Indexes Now at Record Highs
The four top stock market indexes managed to scale higher to new record closes, setting new highs routinely. This is reminiscent of early September, toward the end of Q2 earnings season, which brought the same level of exuberance among market participants — and largely for the same reasons: stronger-than-expected Q3 earnings season.
The Dow beat the field modestly, +0.39% on the day — off intra-day highs by about 30 points or so — to cross above 36K for the first time ever. The S&P 500 wasn’t far behind, +0.37% on the day, with the Nasdaq close behind it, +0.34% points. The Russell 2000 joined the party this afternoon with its first record-high close since March of this year, +0.16%. The small-cap index has gained +4.8% since just last Wednesday.
With the exception of Energy (which had been on a strong run of late) and Consumer Discretionary, the nine remaining sectors in the S&P all went up in Tuesday regular trading, signifying growth across industries. We shall see if this week’s monthly jobs reports or a decision regarding tapering asset purchases from the Fed Wednesday will hamper the positive sentiment currently awash in the market, or if we might see stock prices stoked even higher from here.
T-Mobile posted a mixed Q3 after the closing bell today, beating earnings estimates by a penny to 55 cents per share (down more than -50% year over year) on $19.62 billion in quarterly sales, which were beneath the $20.10 billion in the Zacks consensus. Post-paid net adds outperformed expectations, however, to 1.3 million, and guidance was up. Shares bounced back +2% after initially falling on the news.
International snacking company Mondelez topped both earnings and revenue estimates after the bell, beating on earnings by a penny to 71 cents per share on $7.1 billion in revenues, which surpassed the $7.04 billion expected. Margins of 38.3% were in-line with estimates, and Organic Revenue outperformed expectations by 200 basis points to +5.5% on +26% growth in Latin America. Shares are up marginally in late trading.
Rideshare major Lyft posted a surprise positive earnings number in its Q3 report after the bell Wednesday, to 5 cents per share from an expected -3 cents. Revenues of $864.4 million swept past the $860.24 million on adjusted EBITDA — the preferred metric for rideshare companies — to $67.3 million in the quarter. Average revenue per user grew higher than expected while overall active riders slipped a bit in Q3. Shares are up +3.7% on the news in the after-market.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.