We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
National Vision (EYE) Down 4% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for National Vision (EYE - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is National Vision due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
National Vision Q1 Earnings Beat Estimates, Margins Down
National Vision delivered an adjusted earnings per share of 30 cents in the first quarter of 2024 compared with 31 cents in the year-ago quarter. However, the figure topped the Zacks Consensus Estimate by 7.1%.
GAAP earnings from continuing operations in the quarter was 16 cents per share compared with 20 cents in the prior year’s quarter.
Revenues in Detail
On Feb 23, 2024, National Vision completed the termination of the Walmart Management and Services Agreement and discontinued the former Legacy reportable segment. As of Mar 30, 2024, the company’s operations consisted of one reportable segment, Owned & Host.
Net revenues from continuing operations in the first quarter totaled $542.5 million, which missed the Zacks Consensus Estimate by 2.7%.
The top line rose 4.2% from the year-ago quarter’s number, primarily driven by growth from new store sales, higher revenues from the company’s AC Lens business and the effect of unearned revenues compared with the prior-year period.
In the first quarter, comparable store sales growth was 1.4% year over year. Adjusted comparable store sales growth was 0.4%. National Vision opened 14 new stores, converted 20 Eyeglass World stores into America's Best stores and ended the period with 1,201 stores. Overall, the store count rose 6.5% year over year.
Margins
On a consolidated basis, the gross profit in the first quarter rose 3% from the prior-year quarter’s level to $293.9 million. Yet, a gross margin of 54.2% contracted 63 basis points (bps).
SG&A expenses rose 5.2% year over year to $245.4 million. The adjusted operating margin was 8.9%, which contracted 106 bps year over year.
Financial Position
National Vision exited the first quarter with cash and cash equivalents of $150.1 million compared with $149.9 million at the end of 2023.
The cumulative net cash flow from operating activities at the end of the quarter was $23.9 million compared with $74.1 million a year ago.
2024 Outlook
National Vision reaffirmed its outlook for the 52 weeks ending Dec 28, 2024.
Full-year net revenues are expected in the range of $1.965-$2.005 billion (same as earlier). The Zacks Consensus Estimate for fiscal 2024 revenues currently stands at $1.99 billion.
Adjusted comparable store sales are expected to grow 2 (unchanged).
Adjusted EPS is estimated in the band of 50-65 cents (unchanged). The Zacks Consensus Estimate for the same is currently pegged at 57 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -200% due to these changes.
VGM Scores
At this time, National Vision has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, National Vision has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
National Vision is part of the Zacks Medical - Products industry. Over the past month, Lantheus Holdings , a stock from the same industry, has gained 7.6%. The company reported its results for the quarter ended March 2024 more than a month ago.
Lantheus Holdings reported revenues of $369.98 million in the last reported quarter, representing a year-over-year change of +23%. EPS of $1.69 for the same period compares with $1.47 a year ago.
For the current quarter, Lantheus Holdings is expected to post earnings of $1.83 per share, indicating a change of +18.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Lantheus Holdings. Also, the stock has a VGM Score of B.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
National Vision (EYE) Down 4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for National Vision (EYE - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is National Vision due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
National Vision Q1 Earnings Beat Estimates, Margins Down
National Vision delivered an adjusted earnings per share of 30 cents in the first quarter of 2024 compared with 31 cents in the year-ago quarter. However, the figure topped the Zacks Consensus Estimate by 7.1%.
GAAP earnings from continuing operations in the quarter was 16 cents per share compared with 20 cents in the prior year’s quarter.
Revenues in Detail
On Feb 23, 2024, National Vision completed the termination of the Walmart Management and Services Agreement and discontinued the former Legacy reportable segment. As of Mar 30, 2024, the company’s operations consisted of one reportable segment, Owned & Host.
Net revenues from continuing operations in the first quarter totaled $542.5 million, which missed the Zacks Consensus Estimate by 2.7%.
The top line rose 4.2% from the year-ago quarter’s number, primarily driven by growth from new store sales, higher revenues from the company’s AC Lens business and the effect of unearned revenues compared with the prior-year period.
In the first quarter, comparable store sales growth was 1.4% year over year. Adjusted comparable store sales growth was 0.4%. National Vision opened 14 new stores, converted 20 Eyeglass World stores into America's Best stores and ended the period with 1,201 stores. Overall, the store count rose 6.5% year over year.
Margins
On a consolidated basis, the gross profit in the first quarter rose 3% from the prior-year quarter’s level to $293.9 million. Yet, a gross margin of 54.2% contracted 63 basis points (bps).
SG&A expenses rose 5.2% year over year to $245.4 million. The adjusted operating margin was 8.9%, which contracted 106 bps year over year.
Financial Position
National Vision exited the first quarter with cash and cash equivalents of $150.1 million compared with $149.9 million at the end of 2023.
The cumulative net cash flow from operating activities at the end of the quarter was $23.9 million compared with $74.1 million a year ago.
2024 Outlook
National Vision reaffirmed its outlook for the 52 weeks ending Dec 28, 2024.
Full-year net revenues are expected in the range of $1.965-$2.005 billion (same as earlier). The Zacks Consensus Estimate for fiscal 2024 revenues currently stands at $1.99 billion.
Adjusted comparable store sales are expected to grow 2 (unchanged).
Adjusted EPS is estimated in the band of 50-65 cents (unchanged). The Zacks Consensus Estimate for the same is currently pegged at 57 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -200% due to these changes.
VGM Scores
At this time, National Vision has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, National Vision has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
National Vision is part of the Zacks Medical - Products industry. Over the past month, Lantheus Holdings , a stock from the same industry, has gained 7.6%. The company reported its results for the quarter ended March 2024 more than a month ago.
Lantheus Holdings reported revenues of $369.98 million in the last reported quarter, representing a year-over-year change of +23%. EPS of $1.69 for the same period compares with $1.47 a year ago.
For the current quarter, Lantheus Holdings is expected to post earnings of $1.83 per share, indicating a change of +18.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Lantheus Holdings. Also, the stock has a VGM Score of B.