Earnings in Focus: Lands’ End, Inc. (NASDAQ:LE)

Lands’ End, Inc. (NASDAQ:LE) reported earnings for the three months ended April 2016 on June 01, 2016. The company earned $-0.18 per share on revenue of $273.43M. Analysts had been modeling earning per share of $0.02 with $293.24M in revenue.

Lands’ End, Inc. (NASDAQ:LE) announced financial results for the first quarter ended April 29, 2016.

First Quarter Fiscal 2016 Highlights:

  • Net revenue was $273.4 million as compared to $299.4 million in the first quarter last year. Direct segment net revenue decreased 8.4% to $232.2 million. Retail segment net revenue decreased 10.4% to $41.2 million primarily driven by a 7.1% decrease in same store sales and a reduction in the number of Lands’ End Shops at Sears.
  • Gross margin was 47.4% as compared to 49.0% in the first quarter last year due to deeper promotions as compared to last year in response to a difficult retail environment.
  • Net loss was $5.8 million, or $0.18 per share, as compared to net income of $1.7 million, or $0.05 per diluted share, in the first quarter last year.
  • Adjusted EBITDA1 was $0.6 million compared to $13.1 million in the first quarter of fiscal 2015.

Federica Marchionni, Lands’ End’s Chief Executive Officer, stated, “We continued to make progress across a number of initiatives; we remained focused on strengthening our core business and launching additional collections that we believe will drive future profitable growth. While we are encouraged by the initial wins, our financial results in the first quarter were impacted by the overall weakness in the retail environment, including aggressive discounting and promotional activity.  That said, during the quarter, we further executed our strategy by strengthening our traditional product categories and launching the Canvas by Lands’ End collection. We also enhanced our brand image, including elevated marketing initiatives, the newly-launched multi-brand e-commerce website and refinements to our catalog strategy.  We continued to receive positive response from both existing and lapsed customers on our new product offering, marketing programs, and website enhancements, and while we expect the retail environment will be very challenging, we will remain focused on building on this momentum with sequential improvement beginning in the second quarter of fiscal 2016.”

Lands’ End, Inc. earnings per share showed a decreasing trend of -126.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 115%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual decline over the past 5 fiscal years of -17.9% when sales declined -2. It reported -8.7% sales drop, and -434.7% EPS decline in the last quarter.

The stock is trading at $16.82, up 8.59% from 52-week low of $15.49. The stock trades down -42% from its peak of $29 and 27.82% above the consensus price target of $21.5. Its volume clocked up at 0.13 million shares which is lower than the average volume of 0.25 million shares. Its market capitalization currently stands at $536.81M.

Earnings in Focus: Restoration Hardware Holdings, Inc. (RH)

Restoration Hardware Holdings, Inc. (NYSE:RH) reported earnings for the three months ended April 2016 on June 08, 2016. The company earned $-0.05 per share on revenue of $455.46M. Analysts had been modeling earning per share of $0.05 with $452.14M in revenue.

Restoration Hardware Holdings, Inc. (NYSE:RH) announced financial results for the first quarter ended April 30, 2016.

The Company will post a video presentation between approximately 1:15 p.m. – 1:30 p.m. PT (4:15 p.m. – 4:30 p.m. ET) today highlighting its continued evolution and recent performance on the RH Investor Relations website at ir.restorationhardware.com.

First Quarter Highlights

  • Net revenues increased 8% on top of a 15% increase last year
  • Comparable brand revenues increased 4% on top of a 15% increase last year
  • GAAP net loss of $13.5 million compared to net income of $7.2 million for the same period last year
  • Adjusted net loss of $2.1 million compared to adjusted net income of $9.8 million last year
  • GAAP diluted loss per share of $0.33 compared to diluted earnings per share of $0.17 for the same period last year
  • Adjusted diluted loss per share of $0.05 compared to adjusted diluted earnings per share of $0.23 last year

First Quarter Fiscal 2016 Results

Revenue – Net revenues for the first quarter of fiscal 2016 increased 8% to $455.5 million from $422.4 million in the first quarter of fiscal 2015.

  • Comparable brand revenue growth, which includes direct, was 4% in the first quarter of fiscal 2016 on top of 15% for the same period last year.
  • Stores revenues increased 19% to $256.1 million in the first quarter of fiscal 2016. This growth is on top of a 13% increase in stores revenues in the first quarter of fiscal 2015.
  • Direct revenues decreased 4% to $199.4 million in the first quarter of fiscal 2016. Direct revenues during the first quarter of fiscal 2016 represented 44% of total net revenues.

Operating Income and Margin** – On an unadjusted basis, GAAP operating loss was $11.5 million in the first quarter of fiscal 2016 compared to GAAP operating income of $17.0 million for the same period last year and GAAP operating margin was -2.5% compared to 4.0% for the same period last year.

Adjusted operating income in the first quarter of fiscal 2016 was $0.7 million compared to $18.6 million in the first quarter of fiscal 2015. Adjusted operating margin in the first quarter of fiscal 2016 was 0.2% compared to 4.4% for the same period last year.

Net Income (Loss) ** – On an unadjusted basis, GAAP net loss for the first quarter of fiscal 2016 was $13.5 million compared to GAAP net income of $7.2 million for the same period last year.

Adjusted net loss in the first quarter of fiscal 2016 was $2.1 million compared to adjusted net income of $9.8 million in the first quarter of fiscal 2015.

Earnings (Loss) Per Share** – On an unadjusted basis, GAAP diluted loss per share for the first quarter of fiscal 2016 was $0.33 compared to GAAP diluted earnings per share of $0.17 for the same period last year.

Adjusted diluted loss per share for the first quarter of fiscal 2016 was $0.05 compared to adjusted diluted earnings per share of $0.23 for the same period last year.

A reconciliation of GAAP to non-GAAP financial measures is provided in the tables accompanying this release.

Restoration Hardware Holdings, Inc. earnings per share showed a decreasing trend of -2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 235%.Analysts project EPS growth over the next 5 years at 19.5%. It has EPS annual growth over the past 5 fiscal years of 63.9% when sales grew 22.2. It reported 7.8% sales growth, and -294.6% EPS decline in the last quarter.

The stock is trading at $27.92, up 12.81% from 52-week low of $24.75. The stock trades down -73.78% from its peak of $106.49 and % below the consensus price target of $40.07. Its volume clocked up at 2.84 million shares which is lower than the average volume of 2.97 million shares. Its market capitalization currently stands at $1.12B.

Earnings Recap: Hovnanian Enterprises Inc. (NYSE:HOV)

Hovnanian Enterprises Inc. (NYSE:HOV) reported earnings for the three months ended April 2016 on June 02, 2016. The company earned $-0.06 per share on revenue of $654.72M. Analysts had been modeling earning per share of $0.02 with $643.06M in revenue.

Hovnanian Enterprises Inc. (NYSE:HOV) reported results for its fiscal second quarter and six months ended April 30, 2016.

RESULTS FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED APRIL 30, 2016:

  • Total revenues were $654.7 million in the second quarter of fiscal 2016, an increase of 39.6% compared with $468.9 million in the second quarter of fiscal 2015. For the six months ended April 30, 2016, total revenues increased 34.5% to $1.23 billion compared with $914.7 million in the first half of the prior year.
  • Total interest expense as a percentage of total revenues was 7.0% during the second quarter of fiscal 2016, a decrease of 50 basis points, compared with 7.5% in the same period of the previous year. For the six months ended April 30, 2016, total interest expense as a percentage of total revenues declined 100 basis points to 6.8% compared with 7.8% during the same period a year ago.
  • Total SG&A was $69.0 million, or 10.5% of total revenues, a 420 basis point improvement during the second quarter of fiscal 2016 compared with $69.1 million, or 14.7% of total revenues, in last year’s second quarter. Total SG&A was $132.8 million, or 10.8% of total revenues, a 380 basis point improvement for the first six months of fiscal 2016 compared with $133.7 million, or 14.6% of total revenues, in the first half of the prior year.
  • Homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 16.1% for both the second quarter ended April 30, 2016 and 2015. During the first six months of fiscal 2016, homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 16.3% compared with 17.1% in the same period of the previous year.
  • The loss before income taxes in the second quarter of fiscal 2016 was $17.6 million compared with a loss before income taxes of $29.5 million in the prior year’s second quarter. For the first half of fiscal 2016, the loss before income taxes was $30.8 million compared with a loss before income taxes of $49.2 million during the first six months of fiscal 2015.
  • The loss before income taxes, excluding land-related charges, in the second quarter of fiscal 2016 was $7.9 million compared with the loss before income taxes, excluding land-related charges, of $25.2 million in the prior year’s second quarter. For the first half of fiscal 2016, the loss before income taxes, excluding land-related charges, was $9.4 million compared with a loss before income taxes, excluding land-related charges, of $42.6 million during the first six months of fiscal 2015.
  • Net loss was $8.5 million, or $0.06 per common share, for the second quarter of fiscal 2016, compared with a net loss of $19.6 million, or $0.13 per common share, in the second quarter of the previous year. For the six months ended April 30, 2016, the net loss was $24.6 million, or $0.17 per common share, compared with a net loss of $33.9 million, or $0.23 per common share, in the first half of fiscal 2015.
  • For the second quarter of fiscal 2016, Adjusted EBITDA was $39.7 million compared with $12.2 million during the second quarter of 2015, a 224.4% increase. For the first half of fiscal 2016, Adjusted EBITDA increased 134.3% to $78.5 million compared with $33.5 million during the first six months of fiscal 2015.
  • As of April 30, 2016, consolidated active selling communities decreased 5.3% to 196 communities compared with 207 communities at the end of the prior year’s second quarter. As of end of the second quarter of fiscal 2016, active selling communities, including unconsolidated joint ventures, decreased 3.7% to 208 communities compared with 216 communities at April 30, 2015.
  • The dollar value of consolidated net contracts increased 9.6% to $768.1 million for the three months ended April 30, 2016 compared with $700.7 million during the same quarter a year ago. The dollar value of net contracts, including unconsolidated joint ventures, during the second quarter of fiscal 2016 increased 5.1% to $789.3 million compared with $750.9 million in last year’s second quarter.
  • The dollar value of consolidated net contracts increased 16.0% to $1.40 billion for the first six months of fiscal 2016 compared with $1.20 billion in the first half of the previous year. The dollar value of net contracts, including unconsolidated joint ventures, for the six months ended April 30, 2016 increased 14.6% to $1.46 billion compared with $1.27 billion in the first six months of fiscal 2015.
  • The number of consolidated net contracts, during the second quarter of fiscal 2016, increased 0.9% to 1,812 homes compared with 1,796 homes in the prior year’s second quarter. In the second quarter of fiscal 2016, the number of net contracts, including unconsolidated joint ventures, decreased 1.7% to 1,862 homes from 1,894 homes during the second quarter of fiscal 2015.
  • The number of consolidated net contracts, during the six month period ended April 30, 2016, increased 7.3% to 3,343 homes compared with 3,115 homes in the same period of the previous year. During the first half of fiscal 2016, the number of net contracts, including unconsolidated joint ventures, was 3,454 homes, an increase of 6.0% from 3,260 homes during the first six months of fiscal 2015.

Hovnanian Enterprises Inc. earnings per share showed a decreasing trend of -105.9% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 20%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual decline over the past 5 fiscal years of -40% when sales grew 9.4. It reported 39.6% sales growth, and 56.9% EPS growth in the last quarter.

The stock is trading at $1.67, up 40.34% from 52-week low of $1.19. The stock trades down -42.61% from its peak of $2.91 and 12.57% above the consensus price target of $1.88. Its volume clocked up at 0.88 million shares which is lower than the average volume of 1.48 million shares. Its market capitalization currently stands at $239.81M.

Earnings Recap: Science Applications International Corporation (NYSE:SAIC)

Science Applications International Corporation (NYSE:SAIC) reported earnings for the three months ended April 2016 on June 13, 2016. The company earned $0.8 per share on revenue of $1.22B. Analysts had been modeling earning per share of $0.74 with $1.15B in revenue.

Science Applications International Corporation (NYSE:SAIC) announced financial results for the first quarter ended May 6, 2016.

Revenues for the first quarter were $1,215 million compared to $1,009 million during the prior year quarter, which represents an increase of $206 million. Our fiscal year 2017 is a 53-week year and contains an extra week compared to the prior fiscal year. The extra week occurred during the first quarter of fiscal 2017. Of the $206 million increase in revenue in the current quarter, an estimated $88 million of the increase was due to the additional week in the first quarter. The remaining revenue growth was primarily due to the acquisition of Scitor, which occurred during the second quarter of the prior fiscal year and revenue from newly awarded programs ($42 million). These increases were partially offset by lower current quarter supply chain material volume ($41 million) as a result of a recompete contract loss last year.

The Company’s internal revenue contraction for the first quarter was 3.1%. As is shown in Schedule 5, to calculate internal revenue growth or contraction, revenues from the prior year quarter were adjusted to include Scitor’s historical revenues as if the acquisition had occurred at the beginning of the comparable prior year period. Also, this calculation adjusted first quarter fiscal 2017 revenues to exclude the estimated impact of the additional week in order to provide a more equitable comparison to fiscal 2016. Revenues contracted primarily due to the supply chain contract loss and a decrease in revenues generated by the legacy Scitor business caused by delays in contract awards, and transition of work to small business set aside contracts. These decreases were partially offset by revenues on newly awarded programs.

Operating income for the quarter was $66 million, or 5.4% of revenues, down from 5.6% in the prior year quarter. The decrease was primarily due to increased current year selling, general and administrative expense (SG&A) as well as acquisition and integration costs related to lease exit costs. SG&A for the quarter includes the amortization of acquired Scitor intangible assets ($7 million) and executive severance expense ($2 million). These decreases to operating income were partially offset by higher net favorable changes in contract profit estimates compared to the prior year period ($5 million) and reduced volume on supply chain contracts that generate lower operating margins.

Adjusted EBITDA (which excludes acquisition and integration costs) was $86 million for the first quarter, or 7.1% of revenues, compared to 6.4% in the comparable prior year quarter. The increase was due to strong contract performance and the inclusion of Scitor which has a relatively higher EBITDA margin percentage than our historical business, along with reduced supply chain contract volume.

Net income for the quarter was consistent with the prior year quarter, primarily due to increased operating income ($6 million, net of tax), offset by increased interest expense on incremental term loan borrowings related to the Scitor acquisition ($6 million, net of tax).

Diluted earnings per share was $0.71 for the quarter and adjusted diluted earnings per share was $0.80 (which excludes the estimated after-tax effects of $7 million of acquisition and integration costs). The weighted-average diluted shares outstanding during the quarter was 46.5 million shares.

Cash Generation and Capital Deployment

Total cash flows provided by operating activities for the quarter were $35 million, an increase of $6 million from the comparable prior year quarter. The increase in operating cash flows over the prior year quarter was primarily due to lower income tax payments ($3 million) and cash flows provided by the operating activities of Scitor. These increases were partially offset by a current period investment of working capital for the Assault Amphibious Vehicle contract ($7 million) and higher interest payments in the current period as a result of additional borrowings ($9 million).

Science Applications International Corporation earnings per share showed a decreasing trend of -15.1% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 348%.Analysts project EPS growth over the next 5 years at 5%. It has EPS annual decline over the past 5 fiscal years of -10.3% when sales declined -2.4. It reported 20.4% sales growth, and 2.4% EPS growth in the last quarter.

The stock is trading at $58.49, up 51.95% from 52-week low of $39.28. The stock trades down -5.55% from its peak of $61.93 and % below the consensus price target of $64.17. Its volume clocked up at 0.36 million shares which is higher than the average volume of 0.29 million shares. Its market capitalization currently stands at $2.59B.

Earnings Reports To Watch: KB Home (KBH)

KB Home (NYSE:KBH) reported earnings for the three months ended May 2016 on June 21, 2016. The company earned $0.17 per share on revenue of $811.05M. Analysts had been modeling earning per share of $0.14 with $747.06M in revenue.

KB Home (NYSE:KBH) reported results for its second quarter ended May 31, 2016.

Three Months Ended May 31, 2016 (comparisons on a year-over-year basis)

  • Total revenues rose 30% to $811.1 million.
  • Housing revenues increased 33% to $807.4 million.
  • Deliveries grew 30% to 2,329 homes, reflecting double-digit increases in all four of the Company’s regions.
  • Average selling price increased 2% to $346,700.
  • Housing gross profit margin decreased 50 basis points to 15.5%, reflecting approximately 80 basis points of inventory-related charges.
  • Adjusted housing gross profit margin, which excludes the amortization of previously capitalized interest and inventory-related charges, improved 40 basis points to 20.7%.
  • Selling, general and administrative expenses improved 140 basis points to 11.6% of housing revenues.
  • Homebuilding operating income increased 45% to $25.9 million despite total inventory impairment and land option contract abandonment charges of $11.7 million, of which $6.8 million related to the Company’s wind down of its Metro Washington, D.C. operations. Inventory-related charges in the year-earlier quarter totaled $.5 million.
    • Homebuilding operating income margin improved 30 basis points to 3.2%. Excluding inventory-related charges, homebuilding operating income margin rose 170 basis points to 4.7%.
  • Pretax income increased 96% to $24.8 million.
  • Income tax expense of $9.2 million was favorably impacted by $.4 million of federal energy tax credits earned from building energy-efficient homes and represented an effective tax rate of 37.1%.
  • Net income rose 63% to $15.6 million and earnings per diluted share increased to $.17, with both metrics unfavorably impacted by inventory-related charges.

Six Months Ended May 31, 2016 (comparisons on a year-over-year basis)

  • Total revenues increased 24% to $1.49 billion.
  • Deliveries rose 27% to 4,282 homes.
  • Average selling price increased 3% to $345,600.
  • Land sale revenues totaled $4.2 million, compared to $68.9 million.
  • Homebuilding operating income rose 39% to $44.9 million.
  • Net income increased 65% to $28.7 million and earnings per diluted share advanced to $.31 from $.18.

Backlog and Net Orders (comparisons on a year-over-year basis)

  • Ending backlog value grew 14% to $1.83 billion, reflecting increases in all regions.
  • Homes in backlog rose 10% to 5,205.
  • Net order value for the quarter grew 14% to $1.20 billion.
  • Net orders for the quarter increased 8% to 3,249.
  • The cancellation rate as a percentage of beginning backlog for the quarter improved to 21% from 25%, and as a percentage of gross orders improved to 21% from 22%.
  • Average community count for the quarter decreased 2% to 242.

Balance Sheet (as of May 31, 2016)

  • Cash, cash equivalents and restricted cash totaled $278.4 million.
  • Inventories totaled $3.53 billion, with investments in land acquisition and development totaling $702.6 million for the six months ended May 31, 2016.
  • Lots owned or controlled totaled 47,283, of which 82% were owned.
  • There were no cash borrowings outstanding under the unsecured revolving credit facility.
  • Average diluted shares outstanding for the quarter were reduced 7% from the year-earlier quarter to 94.7 million, reflecting repurchases of nearly 8.4 million shares of common stock during the 2016 first quarter at a total cost of $85.9 million. No shares were repurchased in the 2016 second quarter.

KB Home earnings per share showed a decreasing trend of -90.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 161%.Analysts project EPS growth over the next 5 years at 27.9%. It has EPS annual growth over the past 5 fiscal years of 24.1% when sales grew 13.8. It reported 16.9% sales growth, and 66.5% EPS growth in the last quarter.

The stock is trading at $15.08, up 67.51% from 52-week low of $9.04. The stock trades down -12.77% from its peak of $17.42 and % below the consensus price target of $14.96. Its volume clocked up at 2.9 million shares which is lower than the average volume of 3 million shares. Its market capitalization currently stands at $1.25B.

Earnings Review: Innocoll Holdings plc (INNL)

Innocoll Holdings plc (NASDAQ:INNL) reported earnings for the three months ended March 2016 on May 31, 2016. The company earned $-0.07 per share on revenue of $1.56M. Analysts had been modeling earning per share of $-0.74 with $0.99M in revenue.

Innocoll Holdings plc (NASDAQ:INNL) announced financial and operating results for the three months ended March 31, 2016. We manufacture and supply a range of pharmaceutical products and medical devices using our proprietary collagen-based biodegradable and fully bioresorbable technology platform.

First Quarter 2016 and Recent Highlights

  • XARACOLL’s highly statistically significant results make it the first long-acting, opioid-sparing, local analgesic to meet primary endpoints of Phase 3 clinical trials in hernia repair, a highly painful and commonly performed surgery. The data supports an on-schedule NDA filing this year. The results validate the Innocoll technology platform, and we are on schedule to deliver COGENZIA top-line data by Q3 or early Q4.
  • Completed re-domiciliation on March 16th to become an Irish-incorporated company, Innocoll Holdings plc. The move facilitates access to the financial market and reduces operating costs compared to operating under German Corporate law. As part of the process, we converted our accounting from IFRS to U.S. GAAP and the functional currency from Euro to U.S. dollars. All financial information will now be reported under U.S. GAAP and U.S. dollar, and detailed schedules are available as part of our 6-K filing schedules.
  • Transitioned NASDAQ listing via the exchange of ADSs of the company’s predecessor, Innocoll AG, for ordinary shares of Innocoll Holdings plc, listed directly on NASDAQ under the same “INNL” trading symbol.
  • Secured availability of the second tranche of €10 million from the European Investment Bank (EIB) as we achieved the criteria of delivering against the primary end point of the XARACOLL Phase 3 clinical studies. The planned drawdown will add to our current cash position, extending our cash runway towards the COGENZIA data read-out.
  • Appointed Lesley Russell, MBChB, MRCP as Chief Medical Officer, to manage all development programs as well as medical and regulatory affairs for the company.

Innocoll Holdings plc earnings per share showed a decreasing trend of -87% for the current fiscal year. The company’s expected EPS decline rate for next fiscal year is -151%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual decline over the past 5 fiscal years of 0% when sales declined 0. It reported 128.6% sales growth, and -209% EPS decline in the last quarter.

The stock is trading at $5.5, up 2.42% from 52-week low of $5.37. The stock trades down -63.93% from its peak of $15.25 and 236.36% above the consensus price target of $18.5. Its volume clocked up at 0.15 million shares which is higher than the average volume of 0.06 million shares. Its market capitalization currently stands at $129.66M.

Earnings Watch: Adobe Systems Inc. (NASDAQ:ADBE)

Adobe Systems Incorporated (NASDAQ:ADBE) reported earnings for the three months ended May 2016 on June 21, 2016. The company earned $0.71 per share on revenue of $1.4B. Analysts had been modeling earning per share of $0.68 with $1.4B in revenue.

Adobe Systems Incorporated (NASDAQ:ADBE) reported financial results for its second quarter fiscal year 2016 ended June 3, 2016.

Second Quarter Financial Highlights

  • Adobe achieved record quarterly revenue of $1.40 billion, representing year-over-year growth of 20 percent.
  • Diluted earnings per share were $0.48 on a GAAP-basis, and $0.71 on a non-GAAP basis.
  • Digital Media segment revenue grew by 26 percent year-over-year to a record $943 million, with Creative revenue growing 37 percent year-over-year to a record $755 million.
  • Strong Creative Cloud and Document Cloud adoption drove Digital Media Annualized Recurring Revenue (“ARR”) to $3.41 billion exiting the quarter, a quarter-over-quarter increase of $285 million.
  • Adobe Marketing Cloud achieved record revenue of $385 million that represents year-over-year growth of 18 percent.
  • Year-over-year operating income grew 78 percent and net income grew 66 percent on a GAAP-basis; operating income grew 45 percent and net income grew 48 percent on a non-GAAP basis.
  • Cash flow from operations was $489 million, and deferred revenue grew to $1.68 billion.
  • The company repurchased approximately 2.2 million shares during the quarter, returning $205 million of cash to stockholders.

A reconciliation between GAAP and non-GAAP results is provided at the end of this press release and on Adobe’s website.

Executive Quotes

“Adobe’s cloud solutions are powering digital transformation at the world’s biggest brands, educational institutions and government agencies,” said Shantanu Narayen, Adobe president and chief executive officer. “Our record revenue reflects our market leadership and the exploding demand for digital experience solutions.”

“Record revenue with strong profit and cash flow highlight our second quarter results,” said Mark Garrett, Adobe executive vice president and chief financial officer. “Based on our first half performance and momentum, we’re on track to meet or exceed all of our annual fiscal year 2016 targets.”

Adobe Systems Incorporated earnings per share showed an increasing trend of 135.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 379%.Analysts project EPS growth over the next 5 years at 28.19%. It has EPS annual decline over the past 5 fiscal years of -3.4% when sales grew 4.8. It reported 24.7% sales growth, and 200.7% EPS growth in the last quarter.

The stock is trading at $96.21, up 34.99% from 52-week low of $71.27. The stock trades down -4.33% from its peak of $100.56 and % below the consensus price target of $111.57. Its volume clocked up at 3.8 million shares which is higher than the average volume of 2.65 million shares. Its market capitalization currently stands at $47.02B.

Earnings Watch: Advanced Drainage Systems, Inc (WMS)

Advanced Drainage Systems, Inc. (NYSE:WMS) reported earnings for the three months ended March 2016 on June 07, 2016. The company earned $0.31 per share on revenue of $244.2M. Analysts had been modeling earning per share of $0.3 with $233.3M in revenue.

Advanced Drainage Systems, Inc. (NYSE:WMS) announced financial results on an unaudited basis for the fiscal year ended March 31, 2016.

Fiscal Year Ended March 31, 2016 Highlights

  • Net sales increased 9.3% to $1.289 billion
  • Net income of $26.1 million compared to $12.8 million in fiscal year 2015
  • Adjusted EBITDA (Non-GAAP) of $185.9 million compared to $143.8 million in fiscal year 2015
  • Cash flow from operating activities of $134.8 million compared to $74.4 million in fiscal year 2015
  • Free cash flow (Non-GAAP) of $89.9 million compared to $42.3 million in fiscal year 2015

Joe Chlapaty, Chairman and Chief Executive Officer of ADS commented, “In fiscal year 2016, we experienced net sales growth of 9.3% compared to fiscal year 2015, driven primarily by healthy conversion and favorable weather conditions in the majority of our end markets, as well as contributions from the Ideal Pipe acquisition. Our sales were particularly strong in the second half of the fiscal year, as we generated net sales growth of 11.8% in the third quarter and 17.9% in the fourth quarter, more than offsetting a slower-than-expected start to the year. Our strong second half performance reflected significant growth in our Allied Products and healthy Pipe sales, as we continued to gain market share by capitalizing on conversion opportunities. Our performance in the domestic construction markets was also strong, as we grew 10.6% for the year compared to the estimated market growth of only 5%.”

Fiscal Year 2016 Results

Gross profit increased $74.5 million, or 36.2 %, to $280.7 million for fiscal year 2016, compared to $206.1 million for the prior fiscal year. As a percentage of net sales, gross profit was 21.8%, compared to 17.5%, for the prior fiscal year. The increase in gross profit was largely attributed to increased revenues combined with lower raw material and transportation costs.

The Company reported Adjusted EBITDA (Non-GAAP) of $185.9 million in the full fiscal year 2016 compared to Adjusted EBITDA of $143.8 million in the prior fiscal year, an increase of 29.3%. As a percentage of net sales, Adjusted EBITDA was 14.4% for the fiscal year 2016 compared to 12.2% in the prior fiscal year. The increase in Adjusted EBITDA was largely attributed to the factors mentioned above offset by settlement losses on hedge positions primarily related to polypropylene resins.

Adjusted Earnings per fully converted share (Non-GAAP) for the fiscal year 2016 was $0.42 per share based on weighted average fully converted shares of 73.5 million, improved from an adjusted earnings per fully converted share of $0.29 per share for the prior year.

A reconciliation of GAAP to Non-GAAP financial measures for Adjusted EBITDA, Free Cash Flow and Adjusted Earnings per fully converted share has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

For fiscal year 2016, the Company recorded net cash provided by operating activities of $134.8 million compared to $74.4 million for the same period last year. Long Term Debt was $350.2 million as of March 31, 2016, a reduction of $49.7 million from March 31, 2015.

Fiscal Year 2017 Outlook

Based on current visibility, backlog of existing orders and business trends, the Company provided its financial targets for fiscal year 2017. Net sales for fiscal year 2017 are forecasted to be in the range of $1.330 billion to $1.380 billion, while the outlook for Adjusted EBITDA (Non-GAAP) is expected to be in the range of $205 million to $230 million. Capital expenditures are expected to be approximately $50-55 million.

Scott Cottrill, Executive Vice President and Chief Financial Officer of ADS, commented, “Our guidance for fiscal year 2017 reflects anticipated overall domestic end market growth of 4% to 7% in our construction related end markets and a decline of 5% to 12% in the agriculture market. In addition, international net sales are expected to be relatively soft, driven by weakness in the Mexican economy and flat sales in Canada due to a weaker agriculture market that we believe will offset growth in our construction markets. Adjusted EBITDA is forecasted to improve by 10% to 24% driven by higher sales volumes, as well as a favorable cost environment due to lower raw material costs, partially offset by anticipated lower selling prices and higher SG&A expenses.”

Advanced Drainage Systems, Inc. earnings per share showed an increasing trend of 570% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 109%.Analysts project EPS growth over the next 5 years at 20.1%. It has EPS annual growth over the past 5 fiscal years of 58.3% when sales grew 8.4. It reported 17.9% sales growth, and 36.2% EPS growth in the last quarter.

The stock is trading at $27.39, up 55.34% from 52-week low of $17.72. The stock trades down -16.59% from its peak of $33.06 and % below the consensus price target of $24.29. Its volume clocked up at 0.3 million shares which is lower than the average volume of 0.48 million shares. Its market capitalization currently stands at $1.47B.

EyeCatching Stock: Bazaarvoice, Inc. (NASDAQ:BV)

Bazaarvoice, Inc. (NASDAQ:BV) reported earnings for the three months ended April 2016 on June 02, 2016. The company earned $-0.01 per share on revenue of $50.71M. Analysts had been modeling earning per share of $-0.04 with $48.86M in revenue.

Bazaarvoice, Inc. (NASDAQ:BV) reported its financial results for the fourth fiscal quarter and full year ended April 30, 2016.

  • Delivered Q4 revenue from continuing operations of $50.7 million, up 5.0% from the same period a year ago
  • Achieved positive operating cash flow of $4.7 million
  • Improved GAAP net loss from continuing operations to $6.4 million from a loss of $8.8 million in the same period a year ago
  • Achieved Adjusted EBITDA from continuing operations of $0.3 million as compared to a loss of $3.6 million in the same period a year ago

Fourth Fiscal Quarter of 2016 Financial Details

Revenue from continuing operations: Bazaarvoice reported revenue of $50.7 million for the fourth fiscal quarter of 2016, up 5.0% from the fourth fiscal quarter of 2015, which consisted of SaaS revenue of $49.1 million and net advertising revenue, formerly referred to as media revenue, of $1.6 million.

GAAP net loss and net loss per share from continuing operations: GAAP net loss was $6.4 million, compared to a GAAP net loss of $8.8 million for the fourth fiscal quarter of 2015. GAAP net loss per share was $0.08 based upon weighted average shares outstanding of 81.5 million, compared to GAAP net loss per share of $0.11 for the fourth fiscal quarter of 2015 based upon weighted average shares outstanding of 79.7 million.

Adjusted EBITDA from continuing operations: Adjusted EBITDA for the fourth fiscal quarter of 2016 was $0.3 million compared to a loss of $3.6 million for the fourth fiscal quarter of 2015.

Non-GAAP net loss and net loss per share from continuing operations: Non-GAAP net loss was $0.5 million, compared to non-GAAP net loss of $4.4 million for the fourth fiscal quarter of 2015. Non-GAAP net loss per share was $0.01 based upon weighted average shares outstanding of 81.5 million, compared to non-GAAP net loss per share of $0.06 for the fourth fiscal quarter of 2015 based upon weighted average shares outstanding of 79.7 million.

Fiscal Year 2016 Financial Details

Revenue from continuing operations: Bazaarvoice reported revenue of $199.8 million for the fiscal year ended April 30, 2016, up 4.5% from the fiscal year ended April 30, 2015, which consisted of SaaS revenue of $191.5 million and net advertising revenue, formerly referred to as media revenue, of $8.3 million.

GAAP net loss and net loss per share from continuing operations: GAAP net loss was $24.6 million, compared to a GAAP net loss of $33.2 million for the fiscal year ended 2015. GAAP net loss per share was $0.30 based upon weighted average shares outstanding of 80.9 million, compared to GAAP net loss per share of $0.42 for the fiscal year ended of April 30, 2015 based upon weighted average shares outstanding of 78.6 million.

Adjusted EBITDA from continuing operations: Adjusted EBITDA for the fiscal year ended April 30, 2016 was $1.2 million compared to a loss of $8.7 million for the fiscal year ended April 30, 2015.

Non-GAAP net loss and net loss per share from continuing operations: Non-GAAP net loss was $4.2 million, compared to non-GAAP net loss of $15.0 million for the fiscal year ended April 30, 2015. Non-GAAP net loss per share was $0.05 based upon weighted average shares outstanding of 80.9 million, compared to non-GAAP net loss per share of $0.19 for the fiscal year ended April 30, 2015 based upon weighted average shares outstanding of 78.6 million.

Clients: The number of active clients at the end of the fourth fiscal quarter of 2016 was 1,399 and the number of network clients at the end of the fourth fiscal quarter of 2016 was over 5,100. Annualized SaaS revenue per average active client for the fourth fiscal quarter of 2016 was approximately $141,000.

Bazaarvoice, Inc. earnings per share showed an increasing trend of 39.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 7%.Analysts project EPS growth over the next 5 years at 15%. It has EPS annual decline over the past 5 fiscal years of -24.5% when sales grew 37.7. It reported 1.4% sales growth, and 26.5% EPS growth in the last quarter.

The stock is trading at $3.71, up 31.56% from 52-week low of $2.82. The stock trades down -42.57% from its peak of $6.37 and % below the consensus price target of $5.83. Its volume clocked up at 0.43 million shares which is lower than the average volume of 0.58 million shares. Its market capitalization currently stands at $295.85M.

EyeCatching Stock: Jabil Circuit Inc. (NYSE:JBL)

Jabil Circuit Inc. (NYSE:JBL) reported earnings for the three months ended May 2016 on June 15, 2016. The company earned $0.17 per share on revenue of $4.31B. Analysts had been modeling earning per share of $0.16 with $4.18B in revenue.

Jabil Circuit Inc. (NYSE:JBL) reported preliminary, unaudited financial results for its third quarter of fiscal year 2016, including third quarter net revenue of $4.3 billion.

U.S. GAAP operating income for the third quarter was $59.6 million and U.S. GAAP net diluted earnings per share was $0.03. Core operating income (as defined below) was $87.2 million and core diluted earnings per share (as defined below) was $0.17.

(U.S. GAAP net diluted earnings per share for the fourth quarter of fiscal year 2016 are currently estimated to include $0.05 per share for amortization of intangibles, $0.09 per share for stock-based compensation expense and related charges and $0.03 to $0.02 per share for restructuring and related charges.)

Management updated the fiscal year 2016 revenue outlook to approximately $18.2 billion; U.S. GAAP net diluted earnings per share outlook to approximately $1.20 and core diluted earnings per share outlook to approximately $1.85.

Capital Allocation Outlook

As part of a framework to increase capital returns to shareholders over the next two fiscal years, Jabil’s Board of Directors authorized a $400 million share repurchase program. The overarching capital allocation framework is designed to return approximately 40% of cash flows from operations through dividends and share repurchases over the next two years, not to exceed $1 billion in total.

“This framework announced today reflects our confidence in our ability to generate in excess of $2 billion of cash flows from operations over the next two fiscal years,” said CFO Forbes I.J. Alexander. “Moving ahead, we remain confident in our ability to effectively leverage our asset base, maintain relationships with both new and existing customers and grow earnings per share,” he added.

Definitions: “U.S. GAAP” means U.S. generally accepted accounting principles. Jabil defines core operating income as U.S. GAAP operating income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges and goodwill impairment charges. Jabil defines core earnings as U.S. GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations and certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core diluted earnings per share as core earnings divided by the weighted average number of outstanding diluted shares as determined under U.S. GAAP.

Jabil Circuit Inc. earnings per share showed a decreasing trend of -11.6% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 206%.Analysts project EPS growth over the next 5 years at 12%. It has EPS annual growth over the past 5 fiscal years of 14% when sales grew 5.9. It reported -1.1% sales drop, and -92.6% EPS decline in the last quarter.

The stock is trading at $19.9, up 19.18% from 52-week low of $16.78. The stock trades down -22.79% from its peak of $26 and % below the consensus price target of $20.5. Its volume clocked up at 3.38 million shares which is higher than the average volume of 2.53 million shares. Its market capitalization currently stands at $3.69B.