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.

Post-earnings stock watch: Dave & Buster’s Entertainment, Inc. (PLAY)

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) reported earnings for the three months ended April 2016 on June 07, 2016. The company earned $0.72 per share on revenue of $261.99M. Analysts had been modeling earning per share of $0.59 with $251.42M in revenue.

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) announced financial results for its first quarter 2016, which ended on May 1, 2016.  The Company also raised its financial outlook for fiscal 2016 and announced that its Board of Directors has authorized a $100 million share repurchase program.

Key highlights from the first quarter 2016 compared to the first quarter 2015 include:

  • Total revenues increased 17.7% to $262.0 million from $222.7 million.
  • Comparable store sales increased 3.6% compared to a 9.9% increase.
  • Opened three stores compared to two stores.
  • Net income increased 59.5% to $31.2 million, or $0.72 per diluted share, compared to net income of $19.5 million, or $0.46 per diluted share.
  • Adjusted EBITDA*, a non-GAAP measure, increased 28.4% to $79.5 million from $61.9 million.  As a percentage of total revenues, Adjusted EBITDA increased approximately 250 basis points to 30.3%.

Review of First Quarter 2016 Operating Results

Total revenues increased 17.7% to $262.0 million in the first quarter 2016 from $222.7 million in the first quarter 2015.  Food and Beverage revenues increased 13.1% to $117.1 million and Amusement and Other revenues increased 21.6% to $144.9 million.  Food and Beverage represented 44.7% of total revenues while Amusements and Other represented 55.3% of total revenues in the first quarter 2016.  In last year’s first quarter, Food and Beverage represented 46.5% of total revenues while Amusements and Other represented 53.5% of total revenues.

Comparable store sales increased 3.6% in the first quarter 2016 compared to a 9.9% increase in the same period last year.  Our comparable store sales growth was driven by a 4.0% increase in walk-in sales partially offset by a 0.7% decrease in special events sales.  Non-comparable store revenues increased by $31.1 million or 181.6% in the first quarter 2016 to $48.2 million.

Operating income increased to $51.2 million in the first quarter 2016 from $35.7 million in last year’s first quarter.  As a percentage of total revenues, operating income increased approximately 340 basis points to 19.5%.

Net income increased to $31.2 million, or $0.72 per diluted share (43.1 million diluted share base), in the first quarter 2016 compared to net income of $19.5 million, or $0.46 per diluted share (42.4 million diluted share base), in the same period last year.

Store EBITDA* increased 25.7% to $87.9 million in the first quarter 2016 from $69.9 million in last year’s first quarter.  As a percentage of total revenues, Store EBITDA increased approximately 220 basis points to 33.6%.

Adjusted EBITDA* increased 28.4% to $79.5 million in the first quarter 2016 from $61.9 million in the same period last year.  As a percentage of total revenues, Adjusted EBITDA increased approximately 250 basis points to 30.3%.

Dave & Buster’s Entertainment, Inc. earnings per share showed an increasing trend of 577.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 228%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual growth over the past 5 fiscal years of 56.8% when sales grew 10.7. It reported 17.6% sales growth, and 61.3% EPS growth in the last quarter.

The stock is trading at $46.52, up 57.48% from 52-week low of $29.54. The stock trades down -4.65% from its peak of $48.79 and % below the consensus price target of $50.4. Its volume clocked up at 1.61 million shares which is higher than the average volume of 0.87 million shares. Its market capitalization currently stands at $1.93B.

Stock Buzz: Guidewire Software, Inc. (NYSE:GWRE)

Guidewire Software, Inc. (NYSE:GWRE) reported earnings for the three months ended April 2016 on June 01, 2016. The company earned $0.14 per share on revenue of $98.86M. Analysts had been modeling earning per share of $0.06 with $92.4M in revenue.

Guidewire Software, Inc. (NYSE:GWRE) announced its financial results for the fiscal quarter ended April 30, 2016.

Third Quarter Fiscal 2016 Financial Highlights

Revenue

  • License revenue for the third quarter of fiscal 2016 was $45.8 million, an increase of 38% from the third quarter of fiscal 2015. License revenue for the third quarter of fiscal 2016 included perpetual license revenue of $5.2 million compared with $2.5 million in the same period a year ago. Maintenance revenue was $14.7 million, an increase of 20% and services revenue was $38.4 million, a decrease of 4%. Total revenue was $98.9 million, an increase of 16% from the same quarter in fiscal 2015.
  • License revenue for the nine months ended April 30, 2016 was $131.5 million, an increase of 24% from the comparable period of fiscal 2015. License revenue for the nine months ended April 30, 2016 included perpetual license revenue of $5.6 million compared with $5.0 million in the same period a year ago. Maintenance revenue was $42.9 million, an increase of 16% and services revenue was $108.8 million, a decrease of 3%. Total revenue was $283.3 million, an increase of 11% from the same period in fiscal 2015.
  • Rolling four-quarter recurring term license and maintenance revenue was $250.6 million, an increase of 20% compared to the same period in fiscal 2015.

Profitability

  • GAAP operating loss was $5.8 million for the third quarter of fiscal 2016, compared with an operating loss of $6.7 million in the comparable period in fiscal 2015.
  • Non-GAAP operating income was $11.0 million for the third quarter of fiscal 2016, compared with $6.1 million in the comparable period in fiscal 2015.
  • GAAP net loss was $0.4 million for the third quarter of fiscal 2016, compared with net loss of $3.0 million for the comparable period in fiscal 2015. GAAP net loss per share was $0.01, based on diluted weighted average shares outstanding of 72.3 million, compared with net loss of $0.04 per share for the comparable period in fiscal 2015, based on diluted weighted average shares outstanding of 70.3 million.
  • Non-GAAP net income was $10.7 million for the third quarter of fiscal 2016, compared with $2.7 million in the comparable period in fiscal 2015. Non-GAAP net income per diluted share was $0.14, based on diluted weighted average shares outstanding of 73.6 million, compared with $0.04 in the comparable period in fiscal 2015, based on diluted weighted average shares outstanding of 72.3 million.

Guidewire Software, Inc. earnings per share showed a decreasing trend of -35.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 84%.Analysts project EPS growth over the next 5 years at 19.15%. It has EPS annual growth over the past 5 fiscal years of 9.2% when sales grew 21.3. It reported 15.8% sales growth, and 86.8% EPS growth in the last quarter.

The stock is trading at $63.04, up 48.96% from 52-week low of $42.32. The stock trades down -2.69% from its peak of $64.78 and 11.31% above the consensus price target of $70.17. Its volume clocked up at 0.91 million shares which is higher than the average volume of 0.38 million shares. Its market capitalization currently stands at $4.40B.

Stock Earnings Alert: Ctrip.com International Ltd. (NASDAQ:CTRP)

Ctrip.com International Ltd. (NASDAQ:CTRP) reported earnings for the three months ended March 2016 on June 15, 2016. The company earned $-3.49 per share on revenue of $4.18B. Analysts had been modeling earning per share of $-3.62 with $4.13B in revenue.

Ctrip.com International Ltd. (NASDAQ:CTRP) announced its unaudited financial results for the first quarter ended March 31, 2016.

Highlights for the First Quarter of 2016

  • Net revenues were RMB4.2 billion (US$648 million) for the first quarter of 2016, up 80% year-on-year.
  • Accommodation reservation revenues increased 70% year-on-year, reaching RMB1.6 billion (US$250 million) for the first quarter of 2016.
  • Transportation ticketing revenues increased 106% year-on-year, reaching RMB1.9 billion (US$302 million) for the first quarter of 2016.
  • Gross margin was 73% for the first quarter of 2016, compared to 70% in the same period in 2015, and remained consistent with the previous quarter.
  • Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip’s shareholders was RMB257 million (US$40 million), compared to RMB33 million (US$5 million) in the same period in 2015.

“The first quarter of 2016 was a great quarter. Our team did an excellent job growing revenue and improving margins,” said James Liang, Chairman of the Board and Chief Executive Officer of Ctrip.  “Going forward, we plan to devote more resources to innovation and outbound travel to build a solid foundation for our sustainable long-term growth.”

First Quarter of 2016 Financial Results and Business Updates

For the first quarter of 2016, Ctrip reported total revenues of RMB4.4 billion (US$682 million), representing an 80% increase from the same period in 2015 and a 45% increase from the previous quarter, primarily due to the consolidation of the financial results of Qunar Cayman Islands Limited (“Qunar”) starting from December 31, 2015.

Accommodation reservation revenues for the first quarter of 2016 were RMB1.6 billion (US$250 million), representing a 70% increase from the same period in 2015 and a 36% increase from the previous quarter, primarily driven by an increase in accommodation reservation volume and the consolidation of Qunar’s financial results since December 31, 2015.

Transportation ticketing revenues for the first quarter of 2016 were RMB1.9 billion (US$302 million), representing a 106% increase from the same period in 2015 and a 57% increase from the previous quarter, primarily driven by an increase in ticketing volume and the consolidation of Qunar’s financial results since December 31, 2015.

Packaged-tour revenues for the first quarter of 2016 were RMB556 million (US$86 million), representing a 41% increase from the same period in 2015 and a 59% increase from the previous quarter, primarily driven by an increase in volume growth of organized tours and self-guided tours.

Corporate travel revenues for the first quarter of 2016 were RMB116 million (US$18 million), representing a 25% increase from the same period in 2015, primarily driven by increased corporate travel demand from business activities. Corporate travel revenues decreased by 15% from the previous quarter, primarily due to seasonality.For the first quarter of 2016, net revenues were RMB4.2 billion (US$648 million), representing an 80% increase from the same period in 2015. Net revenues for the first quarter of 2016 increased by 45% from the previous quarter.

Ctrip.com International Ltd. earnings per share showed an increasing trend of 794.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 59%.Analysts project EPS growth over the next 5 years at 10.17%. It has EPS annual growth over the past 5 fiscal years of 15.3% when sales grew 30.5. It reported 50.2% sales growth, and 126.2% EPS growth in the last quarter.

The stock is trading at $40.65, up 49.17% from 52-week low of $27.25. The stock trades down -29.13% from its peak of $57.36 and % below the consensus price target of $49.8. Its volume clocked up at 3.96 million shares which is lower than the average volume of 4.71 million shares. Its market capitalization currently stands at $18.15B.