Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
Stock number one: DeVry Education Group Inc.
DeVry Beats on Q3 Earnings, Revs—Zack's
DeVry Education Group Inc. (DV) beat the Zacks Consensus Estimate for both revenues and earnings in the third quarter of fiscal 2014, for the second quarter in a row. Adjusted earnings of 87 cents per share beat the Zacks Consensus Estimate of 75 cents by 16.0% in the third quarter of fiscal 2014. We believe that the company’s return to positive enrollment in the quarter contributed to the earnings beat. Earnings, however, declined 6.5% from the prior-year quarter due to a year-over-year decline in total revenue.
Trailing PE: 46; Forward PE: 18
Estimate Trend: Flat
Ransom Note Trendline: Buy Soda Stream
Stock number two: Pandora Media, Inc.
Pandora tumbles after second quarter guidance trails expectations—Fly on the Wall
Shares of internet radio company Pandora (P) are sinking after the company’s second quarter profit and revenue outlook fell short of analysts’ consensus estimates. WHAT'S NEW: Last night, Pandora reported first quarter earnings per share of (13c) and revenue of $180.1M, against consensus views of (14c) and $174.96M, respectively. Total listener hours grew 12% to 4.8B for Q1, compared to 4.26B for the same period last year.
Trailing PE: NA; Forward PE: 51
Estimate Trend: Up
Ransom Note Trendline: Avoid Pandora
Stock number three: MasterCard Incorporated
Russian Rumblings Wreck Visa Inc. and Drop the Dow--Motley Fool
American and European politicians are considering economic sanctions against Russia, and such penalties would undoubtedly harm American and European financial companies with strong business in the country. Visa rival MasterCard (NYSE: MA) is down 3.4% this afternoon in reaction to Visa's report, as the world's second-largest payments processor is also at risk of losing Russian businessif the West institutes economic sanctions.
Trailing PE: 28; Forward PE: 20
Estimate Trend: Up
Ransom Note Trendline: Avoid MasterCard