Bear Of The Day: Janus Capital (JNS)

Janus Capital (JNS – Analyst Report) recently missed the Zacks Consensus Estimate by $0.01 for a 4.5% negative earnings surprise. The market didn’t seem too worried about the miss as the stock advanced 1.5% in the session following the earnings release. JNS is a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.

The Numbers

JNS missed the Zacks Consensus Estimate of $0.22 by $0.01 for a 4.5% negative earnings surprise in the most recent quarter. This was the second consecutive quarter the company missed the Zacks Consensus Estimate.

The company also missed on the topline, and this was the third quarter in a row that sales came in below expectations.

Description

Janus Capital Group is an asset manager offering individual investors and institutional clients complementary asset management disciplines through the firm’s global distribution network. Janus Capital Group consists of Janus Capital Management LLC, Berger Financial Group LLC, Enhanced Investment Technologies LLC and Bay Isle Financial LLC.

Earnings History

Usually when a stock is the Bear of the Day, the earnings history is filled with misses. This is not the case for JNS, as there are three beats in the last seven reports. The flipside of that is that there are four misses in that same time period.

Estimates

The Zacks Consensus Estimate has been falling over the last few months. The FY16 estimate stood at $0.93 in March and dropped a penny each month since then. The current estimate is now at $0.88

Next year has also seen a consistent move lower in estimates with the 2017 Zacks Consensus Estimate moving from $1.10 in April to the current level of $1.03.

Chart

Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving higher.