Hot Stock to Track After Earnings: Sky Solar Holdings, Ltd. (NASDAQ:SKYS)

Sky Solar Holdings, Ltd. (NASDAQ:SKYS) reported earnings for the three months ended March 2016 on June 17, 2016. The company earned $-0.02 per share on revenue of $11.73M. Analysts had been modeling earning per share of $-0.06 with $13.45M in revenue.

Sky Solar Holdings, Ltd. (NASDAQ:SKYS) announced its financial results for the first quarter of 2016 ended March 31, 2016.

Highlights:

  • Q1 2016 total revenue of $11.7 million, up 14% over Q1 2015
  • Q1 2016 electricity revenue of $9.9 million, up 94% over Q1 2015
  • Q1 2016 Adjusted EBITDA1 of $5.4 million, compared to $7.0 million in Q1 2015
  • 133.1 MW of IPP assets in operation as of March 31, 2016, compared to 128.6 MW as of December 31, 2015
  • As of March 31, 2016, 24.1 MW under construction, 236.1 MW of shovel-ready projects, and 1.0 GW of solar parks in pipeline

Mr. Weili Su, Founder, Chairman and Chief executive officer of Sky Solar, commented, “While our overall installation during the quarter was modest as expected, this performance was generally due to our our ongoing strategic initiatives to unlock shareholder value. In addition, in early May, we announced the execution of a definitive agreement to acquire operating assets in the US, marking our first US transaction, a strategic market for Sky Solar in which we look forward to building a larger presence.”

First Quarter 2016 Financial Results

Revenue was $11.7 million, up 14.5% from $10.3 million in the same period of 2015.

Electricity sales were $9.9 million in the first quarter of 2016, up 94.0% from $5.1 million in the same period of 2015. The year-over-year growth in electricity sales was primarily due to the increase in the Company’s operational IPP assets globally. Electricity sales in the first quarter of 2016 was up 25.9% from $7.9 million in the fourth quarter of 2015, due to the same reason.

Systems and other sales were $1.8 million in the first quarter of 2016, down 65.0% from $5.1 million in the same period of 2015. The year-over-year decline in systems and other sales was primarily due to permit sales in Japan in the first quarter of 2015, while the Company did not record similar sales in the first quarter of 2016. Systems and other sales in the first quarter of 2016 were down 58.3% from $4.3 million in the fourth quarter of 2015, primarily due to the Company’s continuing shift toward IPP electricity sales.

Cost of sales and services were $6.4 million, compared to $3.1 million in the same period in 2015. The increase was mainly a result of the increased capacity of IPP solar parks during the first quarter of 2016.

Gross profit was $5.3 million, down 25.7% from $7.2 million in the same period in 2015. Gross margin decreased to 45.5% from 70.0% in the same period in 2015 because of the permits sales in Japan in first quarter 2015, which commanded a higher margin.

Selling, general and administrative (“SG&A”) expenses were $4.8 million, up 10.6% from $4.4 million in the same period in 2015 due to the increased project financing activities in South America.

Other operating income was $1.9 million, compared to $42 thousand in the same period of 2015. The increase in other operating income was due to income from the disposal of 1.8MW solar parks in Japan during the first quarter of 2016.

As a result of the above, operating profits decreased to $2.4 million in the first quarter of 2016, from $2.8 million in the same period in 2015.

Finance costs were $1.3 million, compared to $0.9 million in the same period of 2015. The increase in finance costs was primarily due to the increased average balance of bank loans in the first quarter in 2016.

Sky Solar Holdings, Ltd. earnings per share showed an increasing trend of 98.3% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 26%.Analysts project EPS growth over the next 5 years at 35%. It has EPS annual decline over the past 5 fiscal years of 0% when sales declined 0. It reported 48.8% sales growth, and 91.8% EPS growth in the last quarter.

The stock is trading at $3.12, up 178.57% from 52-week low of $1.12. The stock trades down -67.77% from its peak of $9.68 and % below the consensus price target of $6.5. Its volume clocked up at 0.11 million shares which is lower than the average volume of 0.91 million shares. Its market capitalization currently stands at $160.73M.

Hot Stock to Track After Earnings: Thor Industries Inc. (NYSE:THO)

Thor Industries Inc. (NYSE:THO) reported earnings for the three months ended April 2016 on June 06, 2016. The company earned $1.51 per share on revenue of $1.28B. Analysts had been modeling earning per share of $1.43 with $1.29B in revenue.

Thor Industries Inc. (NYSE:THO) announced net income from continuing operations of $79.2 million, or $1.51 per diluted share, on revenues of $1.28 billion for the third quarter ended April 30, 2016.  Net income from continuing operations increased 24.6% on sales growth of 9.4% when compared with the third quarter of last year.  Diluted earnings per share from continuing operations in the third quarter increased 26.9% compared to the previous year.  Diluted earnings per share, including the loss from discontinued operations in the quarter, also rose 27.4% to $1.49 compared with the third quarter of 2015.

Third-Quarter Highlights:

  • Sales from continuing operations for the third quarter of fiscal 2016 were a record $1.28 billion, up 9.4% from $1.17 billion in the third quarter last year. Sales of towable and motorized RVs posted combined growth of 5.8%, which was supplemented by $41.9 million in net revenues from Postle Aluminum Co., which was acquired on May 1, 2015.
  • Gross profit margins increased to 15.7% in the third quarter compared to 14.2% in the prior-year period, due primarily to improved volumes, favorable changes in product mix and improvements in material costs compared to the prior year.
  • Net income from continuing operations for the third quarter was a record $79.2 million, up 24.6% from $63.6 million in the prior-year third quarter.
  • Diluted earnings per share (EPS) from continuing operations for the third quarter was a record $1.51, up 26.9% from $1.19 in the third quarter last year. Diluted earnings per share, including the loss from discontinued operations, was $1.49, up 27.4% from $1.17 in the third quarter last year.
  • Consolidated RV backlog on April 30, 2016 was $1.06 billion, up 45.4% from $726.8 million on April 30, 2015.
  • Total dealer inventory increased 1.0% to 82,100 units on April 30, 2016 from 81,300 units on April 30, 2015.
  • Thor’s total cash balances as of April 30, 2016 were $247.3 million.

Towable RVs:

  • Towable RV sales were $934.6 million for the third quarter, up 1.7% from $919.4 million in the prior-year period, driven primarily by increasing sales of lower-priced travel trailers partially offset by lower sales of fifth wheel units.
  • Towable RV income before tax was $96.9 million, up 15.7% from $83.8 million in the third quarter last year. This increase was driven primarily by favorable product mix and improved material costs.
  • Towable RV backlog increased 50.2% to $727.5 million, compared to $484.2 million at the end of the third quarter of fiscal 2015, reflecting the continued growth in the towable markets and strong acceptance of the Company’s products.

Motorized RVs:

  • Motorized RV sales were $307.6 million for the third quarter, up 20.7% from $254.9 million in the prior-year third quarter. The increase in motorized RV sales is a result of strong dealer and consumer response to new products, particularly more moderately priced Gas Class A and Class C motorhomes targeting new consumers entering the market combined with overall market growth.
  • Motorized RV income before tax was $24.1 million, up 21.5% from $19.9 million last year, driven primarily by the growth in motorized sales.
  • Motorized RV backlog increased 35.7% to $329.3 million from $242.6 million a year earlier, reflecting the continued strong reception, by dealers and consumers, to the new products introduced over the past year.

Thor Industries Inc. earnings per share showed an increasing trend of 15.3% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 511%.Analysts project EPS growth over the next 5 years at 8.7%. It has EPS annual growth over the past 5 fiscal years of 12.8% when sales grew 12. It reported 9.4% sales growth, and 26.7% EPS growth in the last quarter.

The stock is trading at $66.3, up 40.72% from 52-week low of $47.56. The stock trades down -4.52% from its peak of $69.76 and % below the consensus price target of $73.88. Its volume clocked up at 0.64 million shares which is higher than the average volume of 0.49 million shares. Its market capitalization currently stands at $3.43B.

Looking At Post-Earnings Stock Movement: Verint Systems Inc. (NASDAQ:VRNT)

Verint Systems Inc. (NASDAQ:VRNT) reported earnings for the three months ended April 2016 on June 07, 2016. The company earned $0.46 per share on revenue of $245.42M. Analysts had been modeling earning per share of $0.41 with $250.71M in revenue.

Verint Systems Inc. (NASDAQ:VRNT) announced results for the three months ended April 30, 2016.

Financial Highlights

Below is selected unaudited financial information for the three months ended April 30, 2016 prepared in accordance with generally accepted accounting principles (“GAAP”) and not in accordance with GAAP (“non-GAAP”).

CEO Commentary

“We are pleased to report that in Q1 we delivered non-GAAP revenue of $249 million, or $251 million on a constant currency basis, and $0.46 of non-GAAP diluted EPS. In Enterprise Intelligence, revenue increased 6.5% year-over-year on a constant currency basis and we expect a year of growth driven by our broad portfolio of Customer Engagement Optimization solutions, all available now on-premises, in the cloud and in hybrid deployment models,” said Dan Bodner, CEO and President.

(1) Non-GAAP revenue on a constant currency basis was $251.0 million for the three months ended April 30, 2016. Please see Table 6 and “Supplemental Information about Non-GAAP Financial Measures” at the end of this press release for more information.

Financial Outlook

Below is Verint’s non-GAAP outlook for the year ending January 31, 2017.

  • We expect revenue as follows:
  • In our Enterprise Intelligence segment, we expect mid-to-high single digit revenue growth.
  • In our Security Intelligence segments, we expect a decline in revenue of between 10% to 15%.
  • Based on the above, for the year ending January 31, 2017, we expect total revenue to be similar to the year ended January 31, 2016, +/- 2.0% and diluted earnings per share to be similar to the year ended January 31, 2016.

Verint Systems Inc. earnings per share showed a decreasing trend of -46.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 331%.Analysts project EPS growth over the next 5 years at 9.33%. It has EPS annual decline over the past 5 fiscal years of -1.8% when sales grew 9.2. It reported -8.9% sales drop, and 0% EPS decline in the last quarter.

The stock is trading at $35.24, up 18.41% from 52-week low of $29.76. The stock trades down -43.78% from its peak of $62.5 and % below the consensus price target of $39.67. Its volume clocked up at 0.29 million shares which is lower than the average volume of 0.79 million shares. Its market capitalization currently stands at $2.15B.

Momentum Stock in Focus: HD Supply Holdings, Inc. (HDS)

HD Supply Holdings, Inc. (NASDAQ:HDS) reported earnings for the three months ended April 2016 on June 07, 2016. The company earned $0.51 per share on revenue of $1.78B. Analysts had been modeling earning per share of $0.47 with $1.84B in revenue.

HD Supply Holdings, Inc. (NASDAQ:HDS) reported Net sales of $1.8 billion for the first quarter of fiscal 2016 ended May 1, 2016, an increase of $121 million, or 7.3 percent, as compared to the first quarter of fiscal 2015.  The company believes its sales performance represents growth of approximately 400 basis points in excess of its market growth estimate.

  • Net Sales increased 7 percent to $1,781 million ($1,844 million including Interior Solutions)
  • Operating Income improved 14 percent to $178 million
  • Adjusted EBITDA increased 14 percent to $215 million

Gross profit increased $50 million, or 8.9 percent, to $609 million for the first quarter of fiscal 2016 as compared to $559 million for the first quarter of fiscal 2015. Gross profit was 34.2 percent of Net sales for the first quarter of fiscal 2016, up approximately 50 basis points from 33.7 percent of Net sales for first quarter of fiscal of 2015.

Operating income increased $22 million, or 14.1 percent, to $178 million for the first quarter of fiscal 2016 as compared to $156 million for the first quarter of fiscal 2015. Operating income as a percentage of Net sales was 10.0 percent for the first quarter of fiscal 2016, up approximately 60 basis points from 9.4 percent for the first quarter of fiscal 2015.

Net income decreased $256 million to a Net loss of $14 million for the first quarter of fiscal 2016 as compared to $242 million Net income for the first quarter of fiscal 2015. The decrease in Net income (loss) was due to a $115 million loss incurred as a result of the extinguishment of outstanding debt in the first quarter of fiscal 2016 and a $189 million tax benefit in the first quarter of fiscal 2015 as a result of IRS and state audit settlements.  Net loss per diluted share was $0.07 for the first quarter of fiscal 2016, as compared to a Net income per diluted share of $1.21 for the first quarter of fiscal 2015.

Adjusted EBITDA increased $26 million, or 13.8 percent, to $215 million for the first quarter of fiscal 2016 as compared to $189 million for the first quarter of fiscal 2015. Adjusted EBITDA as a percentage of Net sales was 12.1 percent for the first quarter of fiscal 2016, up approximately 70 basis points from 11.4 percent for the first quarter of fiscal 2015.

Adjusted net income increased $52 million to $103 million for the first quarter of fiscal 2016 as compared to $51 million for the first quarter of fiscal 2015.  Adjusted net income per diluted share was $0.51 for the first quarter of fiscal 2016, as compared to $0.25 for the first quarter of fiscal 2015.

As of May 1, 2016, HD Supply’s combined liquidity of approximately $1,268 million was comprised of $203 million in cash and cash equivalents and $1,065 million of additional available borrowings under HD Supply, Inc.’s senior asset-backed lending facility, based on qualifying inventory and receivables.

HD Supply Holdings, Inc. earnings per share showed an increasing trend of 56.3% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 322%.Analysts project EPS growth over the next 5 years at 34.54%. It has EPS annual growth over the past 5 fiscal years of 27.7% when sales grew 2.8. It reported 7.3% sales growth, and -106% EPS decline in the last quarter.

The stock is trading at $35.27, up 65.9% from 52-week low of $21.26. The stock trades down -4.18% from its peak of $36.81 and % below the consensus price target of $40.46. Its volume clocked up at 1.84 million shares which is higher than the average volume of 1.78 million shares. Its market capitalization currently stands at $7.01B.

Momentum Stock: Box, Inc (NYSE:BOX)

Box, Inc. (NYSE:BOX) reported earnings for the three months ended April 2016 on June 01, 2016. The company earned $-0.18 per share on revenue of $90.15M. Analysts had been modeling earning per share of $-0.24 with $88.65M in revenue.

Box, Inc. (NYSE:BOX) announced financial results for the first quarter of fiscal 2017, which ended April 30, 2016.

“In the first quarter, we achieved a marked improvement in cash flow from operations of negative $4.2 million and, excluding a payment related to a litigation settlement, would have achieved near breakeven cash flow from operations of negative $500,000,” said Dylan Smith, co-founder and CFO of Box. “We are confident in our growth opportunity, driven by our product differentiation and expanding market, and we remain committed to achieving positive free cash flow in the fourth quarter of this fiscal year.”

Fiscal First Quarter Financial Highlights

  • Revenue for the first quarter of fiscal 2017 was a record $90.2 million, an increase of 37% from the first quarter of fiscal 2016.
  • Deferred revenue for the first quarter of fiscal 2017 ended at $172.2 million, an increase of 39% from the first quarter of fiscal 2016.
  • Billings in the first quarter of fiscal 2017 were $75.9 million, an increase of 9% from the first quarter of fiscal 2016. As previously announced, billings were impacted by increasing seasonality in the business and the focus on annual payment durations from multi-year prepayments, beginning this fiscal year.
  • GAAP operating loss in the first quarter of fiscal 2017 was $38.6 million, or 43% of revenue. This compares to GAAP operating loss of $46.6 million, or 71% of revenue, in the first quarter of fiscal 2016. Non-GAAP operating loss in the first quarter of fiscal 2017 was $22.7 million, or 25% of revenue. This compares to non-GAAP operating loss of $32.6 million, or 50% of revenue, in the first quarter of fiscal 2016.
  • GAAP net loss per share, basic and diluted, in the first quarter of fiscal 2017 was $0.31 on 124.9 million shares outstanding, compared to $0.40 in the first quarter of fiscal 2016 on 119.4 million shares outstanding. Non-GAAP net loss per share, basic and diluted, in the first quarter of fiscal 2017 was $0.18, compared to $0.28 in the first quarter of fiscal 2016.
  • Net cash used in operating activities in the first quarter of fiscal 2017 totaled $4.2 million, and excluding the $3.8 million payment related to the settlement of the previously announced Open Text litigation, net cash used in operating activities would have been $0.5 million. In the first quarter of fiscal 2016, net cash used in operating activities was $32.2 million, and excluding $25.0 million in restricted cash used to secure a line of credit for the newly leased Redwood City headquarters, net cash used in operating activities would have been $7.2 million.

Box, Inc. earnings per share showed a decreasing trend of -10.1% for the current fiscal year. The company’s expected EPS decline rate for next fiscal year is -48%.Analysts project EPS growth over the next 5 years at 73.9%. It has EPS annual decline over the past 5 fiscal years of 0% when sales declined 0. It reported 37.5% sales growth, and 22% EPS growth in the last quarter.

The stock is trading at $11.45, up 29.82% from 52-week low of $8.82. The stock trades down -42.55% from its peak of $19.93 and 51.79% above the consensus price target of $17.38. Its volume clocked up at 1.16 million shares which is higher than the average volume of 0.89 million shares. Its market capitalization currently stands at $1.40B.

Momentum Stock: Francesca’s Holdings Corp. (NASDAQ:FRAN)

Francesca’s Holdings Corporation (NASDAQ:FRAN) reported earnings for the three months ended April 2016 on June 09, 2016. The company earned $0.18 per share on revenue of $106.11M. Analysts had been modeling earning per share of $0.17 with $106.76M in revenue.

Francesca’s Holdings Corporation (NASDAQ:FRAN) reported financial results for the first quarter ended April 30, 2016.

  • Net sales increased 12% to $106.1 million
  • Comparable sales increased 2%, including an ecommerce comparable sales increase of 38%
  • Diluted earnings per share was $0.18

FIRST QUARTER RESULTS

Net sales increased 12% to $106.1 million from $95.0 million in the comparable prior year period.  This increase was due to a 2% increase in comparable sales driven by an increase in the number of transactions both at the boutiques and on-line as well as the opening of 48 net new boutiques since the comparable prior year period.  We opened 22 new boutiques and closed one underperforming boutique during the quarter bringing our total boutique count to 637 as of April 30, 2016.  Ecommerce comparable sales increased 38% to $5.2 million driven by increased website traffic and conversion rates.

Gross profit, as a percentage of net sales, decreased to 46.3% from 47.3% in the prior year quarter.  This decrease is attributable to 60 basis points decrease in merchandise margin and 30 basis points deleveraging of occupancy costs.  The decrease in merchandise margin was due to increased clearance activity and sales mix changes during the quarter compared to the same period last year.

Selling, general and administrative expenses (“SG&A”) increased 14% to $37.7 million from $33.0 million in the prior year quarter. The increase in SG&A expenses is primarily due to increased corporate and boutique payroll expense to support the larger boutique base and strategic initiatives.  Additionally, stock-based compensation expense increased compared to last year in connection with the performance-based restricted stock awarded to executives and certain key employees in March 2016 aligning incentive compensation with the Vision 2020 plan.  Professional fees were also higher in support of various strategic and operational initiatives.

Income from operations was $11.5 million, or 10.8% of net sales, compared to $11.9 million, or 12.5% of net sales, in the prior year quarter.

BALANCE SHEET SUMMARY

Total cash and cash equivalents at the end of the quarter were $35.4 million compared to $46.1 million at the end of the comparable prior year quarter.

We ended the quarter with $34.8 million of inventory on hand compared to $31.4 million at the comparable prior year period.  Average ending inventory per boutique increased by 2% versus the comparable prior year period.

During the first quarter, we repurchased approximately 925,000 shares of our common stock at a cost of $16.8 million.  Subsequent to the end of the quarter through May 31, 2016, we repurchased an additional 728,000 shares of our common stock at a cost of $9.5 million.

Francesca’s Holdings Corporation earnings per share showed an increasing trend of 19.6% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 97%.Analysts project EPS growth over the next 5 years at 10%. It has EPS annual growth over the past 5 fiscal years of 17% when sales grew 26.6. It reported 11.7% sales growth, and 5.4% EPS growth in the last quarter.

The stock is trading at $10.81, up 10.87% from 52-week low of $9.75. The stock trades down -45.68% from its peak of $19.9 and % below the consensus price target of $13.56. Its volume clocked up at 0.68 million shares which is lower than the average volume of 1.45 million shares. Its market capitalization currently stands at $431.28M.

Notable Earnings: Comtech Telecommunications Corp. (CMTL)

Comtech Telecommunications Corp. (NASDAQ:CMTL) reported earnings for the three months ended April 2016 on June 08, 2016. The company earned $-0.89 per share on revenue of $124.19M. Analysts had been modeling earning per share of $-1.66 with $128.9M in revenue.

Comtech Telecommunications Corp. (NASDAQ:CMTL) reported its operating results for the three and nine months ended April 30, 2016. Net sales for the three months ended April 30, 2016 were $124.2 million compared to $71.6 million for the three months ended April 30, 2015. Net sales for the nine months ended April 30, 2016 were $258.6 million compared to $229.8 million for the nine months ended April 30, 2015. The increase in net sales for both periods reflects incremental sales of approximately $66.0 million as a result of the acquisition of TeleCommunication Systems, Inc. (“TCS,”) partially offset by lower sales of legacy Comtech products. As previously announced, the TCS acquisition closed on February 23, 2016. The Company achieved bookings of approximately $139.2 million during the third quarter of fiscal 2016 which translates into a quarterly book-to-bill ratio (a measure of quarterly bookings divided by quarterly net sales) of 1.12 compared with an average book-to-bill ratio of 0.81 for the prior two quarters.

Operating net loss was $13.4 million and $8.0 million for the three and nine months ended April 30, 2016, respectively as compared to operating income of $7.2 million and $26.0 million for the three and nine months ended April 30, 2015, respectively. During the three and nine months ended April 30, 2016, we expensed $17.0 million and $20.7 million, respectively, of pre-tax acquisition plan expenses, almost all of which relates to the Company’s acquisition of TCS. Excluding these expenses, we would have reported operating income for the three and nine months ended April 30, 2016 of $3.6 million and $12.7 million, respectively.

GAAP net loss was $14.4 million, or $(0.89) per diluted share, for the three months ended April 30, 2016 as compared to GAAP net income of $5.0 million, or $0.30 per diluted share, for the three months ended April 30, 2015. GAAP net loss was $10.4 million, or $(0.65) per diluted share, for the nine months ended April 30, 2016 as compared to GAAP net income of $17.8 million, or $1.08 per diluted share, for the nine months ended April 30, 2015.

Selected Fiscal 2016 Third Quarter Financial Metrics and Other Items

  • The Company notes that its fiscal 2016 updated financial guidance reflects only five full months of TCS operations as a result of the closing of the TCS acquisition on February 23, 2016. Comtech’s fourth fiscal quarter will reflect a full three months of combined operations.
  • As of April 30, 2016, the Company had $69.1 million of cash and cash equivalents before payment of its quarterly dividend of $4.9 million on May 20, 2016. However, after payment of the May 20, 2016 dividend and other remaining transaction and merger related expenditures, the Company now has approximately $50.0 million of cash and cash equivalents.
  • The Company’s effective tax rate for fiscal 2016 will be impacted by various items including the non-deductibility of transaction related expenses incurred in connection with the TCS acquisition. Looking forward, the Company currently expects that its fiscal 2017 effective tax rate, excluding discrete items will approximate 37.5%.
  • The Company’s interest expense for the third quarter reflects, and going forward will continue to reflect the cost of borrowing in part for the TCS acquisition and the discharge of TCS’s debt. As of April 30, 2016, total debt outstanding, net of $6.2 million of deferred financing costs and including capital lease obligations, was $351.2 million, of which $17.8 million was current. The blended interest expense rate during the fourth quarter of fiscal 2016 is expected to approximate 5.0% (including amortization of deferred financing charges). Looking forward to fiscal 2017, the Company currently expects that the blended interest rate on its total debt will approximate 5.0%.
  • The Company has completed a preliminary analysis and assessment of the fair values of the TCS assets acquired and liabilities assumed. Based on this preliminary analysis, $280.9 million was allocated to intangibles with definite lives and $127.1 million was allocated to goodwill. Total amortization of intangibles during the fourth quarter of fiscal 2016 (including amortization associated with the TCS assets acquired) is expected to approximate $6.0 million. Based on this preliminary analysis, total annual amortization of intangibles with definite lives in fiscal 2017, based on this preliminary analysis and assessment, is expected to approximate $22.8 million.
  • Backlog as of April 30, 2016 was $433.6 million compared to $92.6 million as of January 31, 2016. Backlog as of April 30, 2016 includes the acquired backlog of TCS. Total bookings for the three and nine months ended April 30, 2016 were $139.2 million and $248.5 million compared to $72.2 million and $226.4 million for the three and nine months ended April 30, 2015.

Comtech Telecommunications Corp. earnings per share showed an increasing trend of 3.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 49%.Analysts project EPS growth over the next 5 years at 17%. It has EPS annual decline over the past 5 fiscal years of -5.8% when sales declined -17. It reported 73.5% sales growth, and -392.8% EPS decline in the last quarter.

The stock is trading at $13.53, up -0.37% from 52-week low of $13.49. The stock trades down -53.95% from its peak of $30.93 and % below the consensus price target of $23.7. Its volume clocked up at 0.89 million shares which is higher than the average volume of 0.26 million shares. Its market capitalization currently stands at $219.93M.

Notable Earnings: Daktronics Inc. (NASDAQ:DAKT)

Daktronics Inc. (NASDAQ:DAKT) reported earnings for the three months ended April 2016 on June 01, 2016. The company earned $-0.07 per share on revenue of $138.46M. Analysts had been modeling earning per share of $0.08 with $156.17M in revenue.

Daktronics Inc. (NASDAQ:DAKT) reported fiscal 2016 fourth quarter net sales of $138.5 million, operating loss of $3.7 million, and net loss of $2.9 million, or $(0.07) per diluted share, compared to net sales of $158.1 million, operating income of $7.0 million, and a net income of $3.8 million, or $0.09 per diluted share, for the fourth quarter of fiscal 2015.  Fiscal 2016 fourth quarter orders were $143.2 million compared to $196.1 million for the fourth quarter of fiscal 2015.  Backlog at the end of the fiscal 2016 fourth quarter was $181.2 million, compared to a backlog of $190.5 million a year earlier and $176.3 million at the end of the third quarter of fiscal 2016.

Net sales, operating income, net income, and earnings per share for the fiscal year ended April 30, 2016, were $570.2 million, $2.5 million, $2.1 million and $0.05 per diluted share, respectively.  This compares to $615.9 million, $31.3 million, $20.9 million and $0.47 per diluted share, respectively, for fiscal 2015.  Fiscal 2016 was a 52-week year and fiscal 2015 was a 53-week year.  The extra week of fiscal 2015 fell within the first quarter, resulting in a 52-week versus a 53-week year end comparison.

Free cash flow, defined as cash provided from or used in operating activities less capital expenditures, was negative $3.6 million for fiscal 2016, as compared to a positive free cash flow of $35.4 million for fiscal 2015.  Cash provided by operations was $13.3 million for fiscal 2016, compared to $53.2 million for fiscal 2015.  Net investment in property and equipment was $16.9 million for fiscal 2016, as compared to $17.8 million for fiscal 2015.  Cash, restricted cash, and marketable securities at the end of the fourth quarter of fiscal 2016 were $53.2 million, which compares to $83.1 million at the end of the fourth quarter of fiscal 2015.

Sales and orders for the fourth quarter of fiscal 2016 decreased by 12.4 percent and 27.0 percent, respectively, as compared to the fourth quarter of fiscal 2015.  The orders decline was due to International and Live Events multi-million dollar projects that were booked during the fourth quarter of fiscal 2015, while no orders of similar size occurred during the fourth quarter of fiscal 2016.  Sales decreased primarily due to lighter International and Commercial billboard and spectacular demand.  Operating loss was 2.6 percent of sales for the quarter due to increased warranty impact for the quarter and lower production levels.

Daktronics Inc. earnings per share showed a decreasing trend of -7.4% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 45%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual growth over the past 5 fiscal years of 36.6% when sales grew 9.4. It reported 4.8% sales growth, and -448% EPS decline in the last quarter.

The stock is trading at $6.44, up 8.78% from 52-week low of $5.92. The stock trades down -45.93% from its peak of $12.35 and 16.46% above the consensus price target of $7.5. Its volume clocked up at 0.5 million shares which is higher than the average volume of 0.31 million shares. Its market capitalization currently stands at $283.97M.

Notable Mover: Digital Turbine, Inc. (NASDAQ:APPS)

Digital Turbine, Inc. (NASDAQ:APPS) reported earnings for the three months ended March 2016 on June 13, 2016. The company earned $-0.09 per share on revenue of $23.03M. Analysts had been modeling earning per share of $-0.08 with $23M in revenue.

Digital Turbine, Inc. (NASDAQ:APPS) announced financial results for the fiscal year and three months ended March 31, 2016.

Recent Highlights:

  • The March quarter set a new record for bid rate increases from app developers and advertisers, showcasing the strengthening demand for unique access to the homescreen.
  • Ignite revenue is diversifying – thus far in June, no single partner accounts for more than 60% of total Ignite revenue, versus more than 80% derived from one partner in the March quarter.
  • Ignite scheduled to be deployed in calendar 2016 by Airtel, the third largest carrier in the world with more than 250 million subscribers in India and 350 million subscribers globally.
  • Deutsche Telekom scheduled to roll out additional devices in additional markets utilizing Ignite.
  • Ignite has been successfully deployed for embedded base applications push across multiple carriers in multiple geographies.
  • Ignite is launching in June with Vizio, the largest television seller by volume in North America, marking the Company’s initial foray into the connected home market.
  • Ignite Direct is launching in June to better capitalize on opportunities in the “Bring your own device” market via a unique SIM-activated dynamic app delivery platform.
  • DT Pay continues to gain meaningful traction in the mobile payment marketplace and is now live in the Philippines and India.
  • The Company announced a newly formed partnership with Amazon, which will leverage Digital Turbine’s recommendation technology and local customer relationships to extend the reach of its shopping app into India and Mexico.

Fourth Quarter 2016 Financial Results

As a result of growth in the Company’s Advertising business over the past year and the March 6, 2015 acquisition of Appia, Inc., management believes that sequential quarterly comparisons are better indicators of the performance of its business than year over year quarterly comparisons, given the substantial operational differences between the Company today and at this time last year. (However, as noted below, the full fiscal year revenue comparisons are presented on a year over year, pro forma basis). The Company has renamed the components of its Advertising segment to better reflect the entities with whom it partners.  Advertising is now comprised of Advertisers & Publishers (A&P), including the former “Appia Core” business, as well as the emerging RTB business; and Operators & OEMs (O&O), including Ignite, Discover and other professional advertising services.  Content continues to be comprised of Marketplace and Pay.

Revenue for the fiscal fourth quarter of 2016 was $23.0 million, down 4% when compared to the fiscal third quarter of 2016.  Advertising revenue of $15.0 million declined 14% versus the fiscal third quarter of 2016.  Within Advertising, O&O revenue of $8.0 million increased 15%, driven by continued penetration at our largest North American carrier, along with the contribution of several new carrier launches since the beginning of January.  A&P revenue of $7.1 million declined 33% stemming from a notable decline with one particular customer and seasonal weakness during the quarter as calendar year 2016 advertising budgets were reset.   Content revenue of $8.0 million increased 20% (19% on a constant currency basis) on the strength of record DT Pay adoption in the Southeast Asia region.

GAAP gross margin was 16% for the fourth quarter of fiscal 2016, consistent with 16% for the fiscal 2016 third quarter.  Excluding the amortization of intangibles, non-GAAP adjusted gross margin was 25%, as compared to 23% for the third quarter of fiscal 2016.

Digital Turbine, Inc. earnings per share showed an increasing trend of 28.2% for the current fiscal year. The company’s expected EPS decline rate for next fiscal year is -2%.Analysts project EPS growth over the next 5 years at 25%. It has EPS annual growth over the past 5 fiscal years of 25% when sales grew 56.6. It reported 125.5% sales growth, and 59.5% EPS growth in the last quarter.

The stock is trading at $1.07, up 46.58% from 52-week low of $0.73. The stock trades down -69.34% from its peak of $3.49 and % below the consensus price target of $2.74. Its volume clocked up at 0.42 million shares which is higher than the average volume of 0.34 million shares. Its market capitalization currently stands at $70.26M.

Notable Mover: Joy Global, Inc. (NYSE:JOY)

Joy Global, Inc. (NYSE:JOY) reported earnings for the three months ended April 2016 on June 02, 2016. The company earned $0.09 per share on revenue of $601.98M. Analysts had been modeling earning per share of $0 with $608.16M in revenue.

Joy Global, Inc. (NYSE:JOY) reported second quarter fiscal 2016 results.

Second Quarter Summary

  • Bookings $681 million, down 9 percent from a year ago
  • Equipment bookings $167 million, up 12 percent from a year ago
  • Service bookings $514 million, down 14 percent from a year ago
  • Net sales $602 million, down 26 percent from a year ago
  • (Loss) Earnings per diluted share from continuing operations $(0.16), compared to $0.57 a year ago
  • Adjusted earnings per diluted share from continuing operations $0.09, compared to $0.64 a year ago
  • Cash from operations $44 million, down $27 million from a year ago

Second Quarter Operating Results

“Despite ongoing challenges in commodity markets, our bookings and financial results in the second quarter were better than expected,” said Ted Doheny, President and Chief Executive Officer. “While markets overall remain subdued, we were able to secure growth-related original equipment bookings in a few markets during the quarter. In addition, a seasonal up-tick in service sales and continued cost reduction initiatives helped drive sequentially improved earnings and continued solid cash generation in the quarter.”

Consolidated bookings in the second quarter totaled $681 million, a decrease of 9 percent versus the second quarter of last year. Original equipment orders increased 12 percent while service orders were down 14 percent compared to the prior year. Current quarter bookings were reduced by $8 million from the impact of foreign currency exchange movements versus the year ago period, a $2 million increase for original equipment and a $10 million decrease for service bookings. After adjusting for foreign currency exchange, orders were down 7 percent compared to the second quarter of last year, with original equipment orders up 10 percent and service orders down 12 percent.

Bookings for underground mining machinery decreased 17 percent in comparison to the second quarter of last year. Original equipment orders decreased 15 percent compared to the prior year, with declines in all regions except in Eurasia, where a longwall system order was received in the current quarter. Service orders decreased 18 percent compared to the prior year, with declines in all regions except Eurasia and Africa. Orders for underground mining machinery were reduced by $7 million from the impact of foreign currency exchange compared to the second quarter of last year.

Bookings for surface mining equipment decreased 1 percent in comparison to the prior year second quarter. Original equipment orders increased 102 percent compared to the prior year. Original equipment orders increased in North America where a multiple electric shovel order was booked in the current quarter with declines in all other regions. Service orders decreased 10 percent compared to the prior year, with declines in all regions except Eurasia and Africa. Orders for surface mining equipment were reduced by $1 million from the impact of foreign currency exchange compared to the second quarter of last year.

Joy Global, Inc. earnings per share showed a decreasing trend of -460.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 47%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual decline over the past 5 fiscal years of -36.5% when sales declined -2.1. It reported -25.7% sales drop, and -127.4% EPS decline in the last quarter.

The stock is trading at $22.76, up 172.87% from 52-week low of $8.35. The stock trades down -40.99% from its peak of $37.5 and % below the consensus price target of $20.82. Its volume clocked up at 3.63 million shares which is lower than the average volume of 3.64 million shares. Its market capitalization currently stands at $2.10B.