Day: April 21, 2021

ADBE – Zip Co Becomes Accelerate Partner within Adobe Exchange Partner Program to Power Installment Payments Globally

SYDNEY & NEW YORK–()–Zip Co Limited (ASX: Z1P), a leading player in the digital retail finance and payments industry, has strengthened its relationship with Adobe (NASDAQ: ADBE) and furthered the global expansion of Buy Now Pay Later (BNPL) by becoming an Accelerate partner in the Adobe Exchange Partner Program. Zip is committed to providing flexible, digital payment options to Magento’s network of merchants.

Magento is a robust commerce platform that blends digital commerce, order management, and predictive intelligence to enable online shopping across a wide array of industries and business models (B2C, B2B and hybrid). Adobe offers an enterprise-level, cloud-hosted application, Magento Commerce, as well as a free ecommerce solution, Magento Open Source and serves the needs of companies of all sizes with flexible, digital commerce solutions to successfully sell across channels.

With more businesses able to offer consumers flexible payment options, BNPL is helping retailers reach new heights. As an Accelerate partner, Zip’s transparent BNPL financing solutions will be marketed directly to thousands of Magento merchants around the world.

Zip offers point-of-sale credit and digital payment services to industries including retail, home, health, automotive and travel. The company has operations across Australia, New Zealand, South Africa, the United Kingdom and in the U.S. and Canada via Quadpay, a Zip Co. company.

Adobe is a global leader in digital commerce and this collaboration will help us reach thousands of merchants and their customers with our better way to pay. With partners like Adobe, we are well on our way to making Zip the first payment choice, everywhere and every day,” said Peter Gray, Chief Operating Officer and Co-Founder of Zip.

While brands are looking for ways to engage customers with new, exceptional experiences, the realities of COVID-19 have catapulted digital commerce technologies to the forefront of the market,” said Jason Woosley, Adobe’s Vice President, Commerce Product and Platform.

Consumers love installment payment solutions because they’re fast, fair and interest-free. Zip enables Magento merchants globally to implement these capabilities effortlessly at checkout, improving cash flow, increasing order value, and keeping customers coming back again and again.”

Zip’s installment payment platform is available now in Australia, New Zealand and South Africa, U.K. and U.S. Retailers can register for the new digital payment capabilities here.

About Zip

ASX-listed Zip Co Limited (Z1P: ASX) or (“Zip”) is a leading player in the digital retail finance and payments industry. The company offers point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries. Zip has operations across Australia, New Zealand, the USA and United Kingdom, with associates in South Africa. Zip also owns Pocketbook, a leading personal financial management tool and SME lending provider Spotcap. The company is focused on offering transparent, responsible and fairly priced consumer and SME products. Zip’s platform is entirely digital and leverages big data in its proprietary fraud and credit-decisioning technology to deliver real-time consumer responses. Zip is managed by a team with over 100 years’ experience in retail finance and payments and is a licensed and regulated credit provider. For more information, visit: www.zip.co

MMI – Institutional Property Advisors Brokers Apartment Asset Sale in Fort Worth's Magnolia Urban Village

FORT WORTH, Texas–()–Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Mag & May, a 240-unit apartment property in the Magnolia Urban Village community of Fort Worth, Texas.

“Mag & May’s high concentration of one-bedroom apartments aligns perfectly with the area’s demographics,” said Drew Kile, IPA senior managing director. “The property’s amenities and features complement its location within the revitalized Magnolia Urban Village and are ideal for attracting a steady stream of renters for years to come.” Kile, IPA’s Michael Ware, Taylor Hill, Joey Tumminello, and Will Balthrope represented the seller, Hudgins Companies, and procured the buyer, an affiliate of Abacus Capital Group. “The asset is located within the Southside Medical District, which has the highest density of medical jobs in the Dallas-Fort Worth region and, with 40,000 positions, is Tarrant County’s second-largest employment center,” added Ware.

The property is highly walkable and located on W Magnolia Avenue, which is lined with high-end restaurants, bars, breweries, coffee shops and boutiques. The expanding JPS Health Network is adjacent to the property. Additionally, the asset is one mile from Downtown Fort Worth and a 15-minute commute to NAS Fort Worth Joint Reserve Base and Lockheed Martin. Built on two acres in 2019, Mag & May’s amenities include an infinity-edge pool with downtown views, an outdoor social lounge, and a spacious interior courtyard.

“The Magnolia Urban Village development, with its revitalized historical buildings and unique arts scene, is the result of a 30-year plan,” added Balthrope. “IPA has one team solely dedicated to providing investors with investment opportunities throughout Texas. This unique property’s value and growth potential was a crucial factor for both our client, and the buyer in this transaction.”

About Institutional Property Advisors (IPA)

Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com.

About Marcus & Millichap (NYSE: MMI)

With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 8,954 transactions in 2020 with a value of approximately $43 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.

PRMW – Primo Water Corporation Announces Pricing of $750 Million of Senior Notes

TAMPA, Fla., April 21, 2021 /PRNewswire/ – Primo Water Corporation (NYSE: PRMW) (TSX: PRMW) (the “Company” or “Primo”), today announced that its wholly owned subsidiary, Primo Water Holdings Inc. (the “Issuer”), priced the previously announced private placement offering of $750 million in aggregate principal amount of senior notes (the “Notes”). The Notes will mature on April 30, 2029 and interest on the Notes will accrue and be payable semi-annually in arrears on April 30 and October 31 of each year, commencing on October 31, 2021 at the rate of 4.375% per annum. The settlement of the Notes is anticipated to occur on or about April 30, 2021, subject to customary closing conditions. The Notes will be guaranteed by Primo and certain of its existing subsidiaries that are obligors under the Company’s senior secured credit facility, 5.50% Senior Notes due 2025 (the “2025 Notes”) and 3.875% Senior Notes due 2028.

The net proceeds from this offering, together with cash on hand, will be used to redeem all of Primo’s outstanding 2025 Notes and to pay the related premium, fees and expenses (the “Redemption”).

This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities, nor does it constitute an offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

The Notes and the related guarantees have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes and the related guarantees were offered, by the initial purchasers, only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions in accordance with Regulation S under the Securities Act and other applicable laws. This press release does not constitute a notice of redemption of the 2025 Notes. The Notes may be offered and sold in Canada on a private placement basis in certain provinces to accredited investors in reliance on available exemptions from the prospectus requirement of applicable Canadian securities laws.

ABOUT PRIMO WATER CORPORATION

Primo Water Corporation is a leading pure-play water solutions provider in North America, Europe and Israel and generates approximately $2.0 billion in annual revenue. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo’s revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through major retailers and online at various price points or leased to customers. The dispensers help increase household penetration which drives recurring purchases of Primo’s razorblade offering. Primo’s razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its Water Direct business, Primo delivers sustainable hydration solutions across its 21-country footprint direct to the customer’s door, whether at home or to commercial businesses. Through its Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at over 13,000 locations and water refill units at approximately 22,000 locations, respectively. Primo also offers water filtration units across its 21-country footprint representing a top five position.

Primo’s water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association (IBWA) in North America as well as with Watercoolers Europe (WE), which ensure strict adherence to safety, quality, sanitation and regulatory standards for the benefit of consumer protection.

Primo is headquartered in Tampa, Florida (USA).

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Such statements convey management’s expectations as to the future based on plans, estimates and projections at the time Primo makes the statements. Forward-looking statements involve inherent risks and uncertainties and Primo cautions you that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. The forward-looking statements in this press release include, but are not limited to, statements related to the Issuer’s intention to offer the Notes, the principal amount and maturity date of the Notes and the Issuer’s use of the net proceeds therefrom. The forward-looking statements are based on assumptions regarding the ability and time necessary to satisfy the conditions to the closing of the Notes Offering and the consummation of the Redemption, and management’s current plans and estimates. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to the risk factors contained in Primo’s Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other periodic reports filed with the Securities and Exchange Commission. Primo does not undertake to update or revise any of these statements in light of new information or future events, except as expressly required by applicable law.

This document is not an offer to sell or a solicitation of an offer to purchase securities in the United States, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Notes may not be sold in the United States unless they are registered under the Securities Act or are exempt from registration. The offering of Notes described in this announcement and any related guarantees has not been and will not be registered under the Securities Act, and accordingly any offer or sale of Notes and such guarantees may be made only in a transaction exempt from the registration requirements of the Securities Act.

SOURCE Primo Water Corporation

Related Links

https://primowatercorp.com/

ISRG – Why Intuitive Surgical Stock Surged Today

What happened

Shares of Intuitive Surgical (NASDAQ:ISRG) climbed 10% Wednesday after the maker of advanced surgical systems delivered strong first-quarter financial results.  

So what

Intuitive Surgical’s revenue rose 18% year over year to $1.3 billion. The gains were fueled by a 26% jump in da Vinci Surgical System shipments and a 16% increase in procedures.

The medical device maker ended the quarter with an installed base of 6,142 da Vinci systems, up 8% from the year-ago period.

A bar chart is rising in a stair-step manner.

Investors bid up Intuitive Surgical’s stock price following its Q1 earnings release. Image source: Getty Images.

Intuitive Surgical’s profits were also impressive. Its operating income soared 47% to $417 million.

“We are pleased with this quarter’s performance,” CEO Gary Guthart said in a press release. “Our performance reflects customers choosing Intuitive as COVID eases.” 

Now what

Hospitals were forced to delay surgeries during the early stages of the coronavirus pandemic as they prioritized the treatment of COVID-19 patients. With vaccinations ramping up and case counts plateauing in many locations, medical facilities now appear to be resuming elective procedures at a faster rate than many investors expected. This, plus a backlog of deferred surgeries, bodes well for Intuitive Surgical’s sales and profits in the coming quarters.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

ACAD – SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Acadia Pharmaceuticals Inc. of Class Action Lawsuit and Upcoming Deadline – ACAD

New York, New York–(Newsfile Corp. – April 21, 2021) – Pomerantz LLP announces that a class action lawsuit has been filed against Acadia Pharmaceuticals Inc. (“Acadia” or the “Company”) (NASDAQ: ACAD) and certain of its officers. The class action, filed in the United States District Court for the Southern District of California, and docketed under 21-cv-00762, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Acadia securities between June 15, 2020 and April 4, 2021, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased Acadia securities during the Class Period, you have until June 18, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Acadia is a biopharmaceutical company that focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders. The Company is developing pimavanserin as a treatment for dementia-related psychosis and as an adjunctive treatment for schizophrenia, as well as an adjunctive treatment for major depressive disorder.

In April 2016, the U.S. Food and Drug Administration (“FDA”) approved pimavanserin for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis.

In June 2020, Acadia submitted a supplemental New Drug Application (“sNDA”) with the FDA to expand pimavanserin’s label to include treatment for dementia-related psychosis (the “pimavanserin sNDA”).

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the materials submitted in support of the pimavanserin sNDA contained statistical and design deficiencies; (ii) accordingly, the pimavanserin sNDA lacked the evidentiary support that the Company had led investors to believe it possessed; (iii) the FDA was unlikely to approve the pimavanserin sNDA in its present form; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On March 8, 2021, post-market, Acadia issued a press release providing a regulatory update on the pimavanserin sNDA, disclosing “that the Company received a notification from the [FDA] on March 3, 2021, stating that, as part of its ongoing review of the Company’s [sNDA], the FDA has identified deficiencies that preclude discussion of labeling and post-marketing requirements/commitments at this time.” Acadia advised that “[t]he notification does not specify the deficiencies identified by the FDA and there has been no clarification by the FDA at this time.”

On this news, Acadia’s stock price fell $20.76 per share, or 45.35%, to close at $25.02 per share on March 9, 2021.

Then, on April 5, 2021, pre-market, Acadia issued a press release announcing that the Company had received a Complete Response Letter (“CRL”) from the FDA indicating that the pimavanserin sNDA could not be approved in its current form. Specifically, the press release stated that, “the [FDA Division of Psychiatry], in the CRL, cited a lack of statistical significance in some of the subgroups of dementia, and insufficient numbers of patients with certain less common dementia subtypes as lack of substantial evidence of effectiveness to support approval.”

On this news, Acadia’s stock price fell $4.41 per share, or 17.23%, to close at $21.18 per share on April 5, 2021.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/81283.

info

PTON – Consumer Reports no longer recommends Peloton as clash between tread company and feds boils over

Consumer Reports has pulled its recommendation for the Peloton “Tread+” treadmill after the Consumer Product Safety Commission issued a safety warning, the product testing nonprofit confirmed on Wednesday.

Prior to its removal, Peloton had held the top in Consumer Reports’ treadmill rankings. The decision came days after the CPSC said it was aware of at least 39 incidents linked to use of the Tread+, including the death of a child.

“We are taking the rare and unusual step of removing the Peloton Tread+ from our ratings based on the incident data described by the CPSC, given the severity and the nature of the injuries and that the agency has not seen these types of injuries with other treadmills,” said Liam McCormack, vice president of research, testing, and insights at Consumer Reports.

“Given that the incidents involved not only children but adults we believe that there is a safety risk, and we’re removing our rating and recommendation while we investigate further, monitor the company’s ongoing response, and await more information from the CPSC,” McCormack added.

Peloton did not immediately respond to a request for comment on Consumer Reports’ decision. Company shares fell more than 6% in trading Wednesday.

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CPSC said the public should stop using the Tread+ if they have small children or pets, or keep the device in a locked room. The warning said the agency had determined the treadmill “poses serious risks to children for abrasions, fractures, and death,” with “multiple reports” of children becoming “entrapped, pinned or pulled under the rear roller of the product.”

Peloton disclosed in March that a child was killed in what it described as a “tragic accident” involving the treadmill. However, the company pushed back on the CPSC’s warning in a statement earlier this week.

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“The company is troubled by the Consumer Product Safety Commission’s (CPSC) unilateral press release about the Peloton Tread+ because it is inaccurate and misleading,” Peloton said in a statement. “There is no reason to stop using the Tread+, as long as all warnings and safety instructions are followed. Children under 16 should never use the Tread+, and Members should keep children, pets, and objects away from the Tread+ at all times.”

PNW – Pinnacle West Declares Quarterly Dividend

PHOENIX–()–Pinnacle West Capital Corporation’s (NYSE: PNW) board of directors today declared a quarterly dividend of $0.83 per share of common stock, payable on June 1, 2021, to shareholders of record at the close of business on May 3, 2021.

Earnings Release, Webcast and Conference Call

In addition, as previously announced, Pinnacle West plans to release its 2021 first-quarter results before the U.S. financial markets open on Wednesday, May 5, 2021.

That same day at noon ET (9 a.m. Arizona time), management will host a live webcast and conference call to discuss financial results and recent developments. The webcast can be accessed at pinnaclewest.com/presentations and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (877) 407-8035 or (201) 689-8035 for international callers. A replay of the call also will be available at pinnaclewest.com/presentations or by telephone until 11:59 p.m. ET Wednesday, May 12, 2021, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering passcode 40595.

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of approximately $20 billion, about 6,300 megawatts of generating capacity and slightly more than 6,000 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to more than 1.3 million Arizona homes and businesses. For more information about Pinnacle West, visit the company’s website at pinnaclewest.com.

CSV – Carriage Services (CSV) Q1 Earnings and Revenues Beat Estimates

Carriage Services (CSV Free Report) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 37.29%. A quarter ago, it was expected that this provider of funeral and cemetary services and products would post earnings of $0.53 per share when it actually produced earnings of $0.57, delivering a surprise of 7.55%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Carriage Services, which belongs to the Zacks Funeral Services industry, posted revenues of $96.64 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 12.37%. This compares to year-ago revenues of $77.49 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Carriage Services shares have added about 14.4% since the beginning of the year versus the S&P 500’s gain of 10.8%.

What’s Next for Carriage Services?

While Carriage Services has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Carriage Services was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.52 on $82 million in revenues for the coming quarter and $2.30 on $336 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Funeral Services is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

OSBC – Old Second Bancorp (OSBC) Q1 Earnings and Revenues Top Estimates

Old Second Bancorp (OSBC Free Report) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 11.54%. A quarter ago, it was expected that this financial holding company would post earnings of $0.27 per share when it actually produced earnings of $0.27, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Old Second Bancorp, which belongs to the Zacks Banks – Midwest industry, posted revenues of $34.84 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 8.32%. This compares to year-ago revenues of $28.98 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Old Second Bancorp shares have added about 28.1% since the beginning of the year versus the S&P 500’s gain of 10.8%.

What’s Next for Old Second Bancorp?

While Old Second Bancorp has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Old Second Bancorp was favorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $32.2 million in revenues for the coming quarter and $1.02 on $129.73 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks – Midwest is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

KSU – Cramer says bidding war for Kansas City Southern shows bargains remain in stock market

In this article

The bidding battle for railroad operator Kansas City Southern demonstrates that investors can still find undervalued stocks in the market, CNBC’s Jim Cramer said Wednesday.

The “Mad Money” host said he understands those who are concerned about a generally frothy environment, pointing to the exploding interest in the cryptocurrency dogecoin, NFTs and SPACs in recent months.

“But every time I start to worry about the craziness, we get a reminder that maybe stocks are a lot less expensive than you think, at least in terms of what other companies are willing to pay for the whole enterprise even if you won’t,” Cramer said.

Just take a look at the competing bids for Kansas City Southern, he said.

On Tuesday, Canadian National Railway announced its offer to acquire Kansas City Southern in a deal that valued the company at $325 per share.

That’s higher than a proposed transaction unveiled late last month from rival Canadian Pacific, which said then it had a stock-and-cash deal to combine with Kansas City Southern that valued the Missouri-based firm at $275 per share.

While Canadian Pacific has criticized Canadian Nation’s “unsolicited offer,” Cramer said the situation offers lessons for equity investors as they analyze the market.

A Kansas City Southern (KSC) Railway locomotive passes through Knoche Yard in Kansas City, Missouri, on Tuesday, Jan. 7, 2020.
Whitney Curtis | Bloomberg | Getty Images

Kansas City Southern, with its exposure to Mexico and the country’s auto industry, has a really important business that appears to have been overlooked, Cramer said.

“The market clearly had this one completely wrong — otherwise you wouldn’t have gotten not one, but two huge takeover bids,” Cramer said. “That tells you Kansas City Southern was massively undervalued before the first offer from Canadian Pacific. And yeah, I think the other railroad operators have a better handle on what KSU is worth than Wall Street does.”

It’s important to not extrapolate too much, Cramer cautioned. “That doesn’t mean every company is a bargain. Some of them are too big to be acquired, some of them are truly too expensive,” he said, while adding antitrust concerns will stand in the way of other deals.

At the same time, he contended, “there are plenty of companies like Kansas City Southern out there.”

“This deal, you’ve got to think about it the next time you hear someone whining about how stocks are too pricey,” Cramer said. “Sometimes companies in the same industry are willing to pay a lot more for a stock than the market is. I regard that as a very encouraging sign, so don’t be discouraged when so many people insist on buying things that you think may have no value at all.”

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