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National Vision (EYE) Down 6.9% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for National Vision (EYE - Free Report) . Shares have lost about 6.9% 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 its most recent earnings report in order to get a better handle on the important catalysts.
National Vision Q2 Earnings Beat Estimates, 2024 View Down
National Vision delivered an adjusted earnings per share of 15 cents in the second quarter of 2024 compared with 17 cents in the year-ago period. The figure surpassed the Zacks Consensus Estimate of 6 cents.
The GAAP loss from continuing operations was 1 cent per share compared to an EPS of 5 cents in the prior-year 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. During the second quarter of 2024, the company wound down its remaining AC Lens operations, including the closure of its Ohio distribution center. Following this development, Walmart stores and AC Lens operations are now accounted for in discontinued operations.
As of Jun 29, 2024, the company’s operations consisted of one reportable segment, Owned & Host.
Net revenues from continuing operations in the second quarter totaled $451.7 million, which missed the Zacks Consensus Estimate by 2.8%.
The top line rose 4.6% from the year-ago quarter’s number, primarily driven by growth from new store sales and Adjusted Comparable Store Sales Growth, partially offset by the effect of converted and closed stores.
In the second quarter, comparable store sales growth was 2.2% year over year. Adjusted comparable store sales growth was 2.4%. National Vision opened 17 new stores and ended the period with 1,216 stores. Overall, the store count rose 5.6% year over year.
Margins
On a consolidated basis, the gross profit in the second quarter rose 2.7% from the prior-year quarter’s level to $258.2 million. Yet, the gross margin contracted 109 basis points (bps) due to a 7.4% rise in the cost of revenues (comprising products, services and plans).
SG&A expenses rose 3.8% year over year to $231.4 million. The adjusted operating margin was 5.9%, which contracted 68 bps year over year.
Financial Position
National Vision exited the second 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 provided an updated outlook for 2024 for the 52 weeks ending Dec 28, 2024.
Full-year net revenues are expected in the range of $1.820-$1.840 billion (earlier $1.965-$2.005 billion). The Zacks Consensus Estimate for fiscal 2024 revenues currently stands at $1.93 billion.
Adjusted comparable store sales are expected to grow 0.5%-1.5% (previously 2). Adjusted earnings per share is estimated in the band of 45-50 cents (earlier 50-65 cents). The Zacks Consensus Estimate for the same is currently pegged at 53 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 -86.96% due to these changes.
VGM Scores
At this time, National Vision has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. 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 B. 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 belongs to the Zacks Medical - Products industry. Another stock from the same industry, Bio-Rad Laboratories (BIO - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Bio-Rad reported revenues of $638.48 million in the last reported quarter, representing a year-over-year change of -6.3%. EPS of $3.11 for the same period compares with $3 a year ago.
Bio-Rad is expected to post earnings of $2.14 per share for the current quarter, representing a year-over-year change of -8.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -11.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bio-Rad. Also, the stock has a VGM Score of D.
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National Vision (EYE) Down 6.9% 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 6.9% 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 its most recent earnings report in order to get a better handle on the important catalysts.
National Vision Q2 Earnings Beat Estimates, 2024 View Down
National Vision delivered an adjusted earnings per share of 15 cents in the second quarter of 2024 compared with 17 cents in the year-ago period. The figure surpassed the Zacks Consensus Estimate of 6 cents.
The GAAP loss from continuing operations was 1 cent per share compared to an EPS of 5 cents in the prior-year 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. During the second quarter of 2024, the company wound down its remaining AC Lens operations, including the closure of its Ohio distribution center. Following this development, Walmart stores and AC Lens operations are now accounted for in discontinued operations.
As of Jun 29, 2024, the company’s operations consisted of one reportable segment, Owned & Host.
Net revenues from continuing operations in the second quarter totaled $451.7 million, which missed the Zacks Consensus Estimate by 2.8%.
The top line rose 4.6% from the year-ago quarter’s number, primarily driven by growth from new store sales and Adjusted Comparable Store Sales Growth, partially offset by the effect of converted and closed stores.
In the second quarter, comparable store sales growth was 2.2% year over year. Adjusted comparable store sales growth was 2.4%. National Vision opened 17 new stores and ended the period with 1,216 stores. Overall, the store count rose 5.6% year over year.
Margins
On a consolidated basis, the gross profit in the second quarter rose 2.7% from the prior-year quarter’s level to $258.2 million. Yet, the gross margin contracted 109 basis points (bps) due to a 7.4% rise in the cost of revenues (comprising products, services and plans).
SG&A expenses rose 3.8% year over year to $231.4 million. The adjusted operating margin was 5.9%, which contracted 68 bps year over year.
Financial Position
National Vision exited the second 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 provided an updated outlook for 2024 for the 52 weeks ending Dec 28, 2024.
Full-year net revenues are expected in the range of $1.820-$1.840 billion (earlier $1.965-$2.005 billion). The Zacks Consensus Estimate for fiscal 2024 revenues currently stands at $1.93 billion.
Adjusted comparable store sales are expected to grow 0.5%-1.5% (previously 2). Adjusted earnings per share is estimated in the band of 45-50 cents (earlier 50-65 cents). The Zacks Consensus Estimate for the same is currently pegged at 53 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 -86.96% due to these changes.
VGM Scores
At this time, National Vision has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. 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 B. 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 belongs to the Zacks Medical - Products industry. Another stock from the same industry, Bio-Rad Laboratories (BIO - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Bio-Rad reported revenues of $638.48 million in the last reported quarter, representing a year-over-year change of -6.3%. EPS of $3.11 for the same period compares with $3 a year ago.
Bio-Rad is expected to post earnings of $2.14 per share for the current quarter, representing a year-over-year change of -8.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -11.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bio-Rad. Also, the stock has a VGM Score of D.