Stock on Trader’s Radar: Broadcom Limited (NASDAQ:AVGO)

Broadcom Limited (NASDAQ:AVGO) reported earnings for the three months ended April 2016 on June 02, 2016. The company earned $2.53 per share on revenue of $3.56B. Analysts had been modeling earning per share of $2.38 with $3.55B in revenue.

Broadcom Limited (NASDAQ:AVGO) reported financial results for the second quarter of its fiscal year 2016, ended May 1, 2016, and provided guidance for the third quarter of its fiscal year 2016.

  • Quarterly GAAP gross margin of 30 percent; Quarterly non-GAAP gross margin from continuing operations of 60 percent
  • Quarterly GAAP diluted loss per share of $3.02; Quarterly non-GAAP diluted earnings per share from continuing operations of $2.53
  • Quarterly interim dividend of 50 cents per share

Second Quarter Fiscal Year 2016 GAAP Results

Net revenue was $3,541 million, an increase of 100 percent from $1,771 million in the previous quarter and an increase of 119 percent from $1,614 million in the same quarter last year.

Gross margin was $1,046 million, or 30 percent of net revenue. This compares with gross margin of $941 million, or 53 percent of net revenue in the prior quarter, and gross margin of $846 million, or 52 percent of net revenue in the same quarter last year.

Operating expenses were $2,047 million. This compares with $466 million in the prior quarter and $428 million for the same quarter last year.

Operating loss was $1,001 million, or 28 percent of net revenue. This compares with operating income of $475 million, or 27 percent of net revenue, in the prior quarter, and $418 million, or 26 percent of net revenue, in the same quarter last year.

Net loss, which includes the impact of discontinued operations, was $1,255 million, or $3.02 per diluted share. This compares with net income of $377 million, or $1.30 per diluted share, for the prior quarter, and $344 million, or $1.21 per diluted share in the same quarter last year.

Net loss attributable to ordinary shares was $1,186 million. Net loss attributable to noncontrolling interest (restricted exchangeable limited partnership units (“REUs”) in the Company’s subsidiary, Broadcom Cayman L.P. (the “Partnership”) was $69 million.

Second Quarter Fiscal Year 2016 Non-GAAP Results From Continuing Operations

The differences between the Company’s GAAP and non-GAAP results are described generally under “Non-GAAP Financial Measures” below, and presented in detail in the financial reconciliation tables attached to this release.

Net revenue from continuing operations was $3,562 million, an increase of 100 percent from $1,782 million in the previous quarter, and an increase of 117 percent from $1,645 million in the same quarter last year.

Gross margin from continuing operations was $2,138 million, or 60 percent of net revenue. This compares with gross margin of $1,089 million, or 61 percent of net revenue, in the prior quarter, and gross margin of $998 million, or 61 percent of net revenue, in the same quarter last year.

Operating income from continuing operations was $1,329 million, or 37 percent of net revenue. This compares with operating income from continuing operations of $783 million, or 44 percent of net revenue, in the prior quarter, and $701 million, or 43 percent of net revenue, in the same quarter last year.

Net income from continuing operations was $1,120 million, or $2.53 per diluted share. This compares with net income of $710 million, or $2.41 per diluted share last quarter, and net income of $620 million, or $2.13 per diluted share, in the same quarter last year.

Broadcom Limited earnings per share showed an increasing trend of 327.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 1296%.Analysts project EPS growth over the next 5 years at 15.83%. It has EPS annual growth over the past 5 fiscal years of 24% when sales grew 26.7. It reported 119.4% sales growth, and -360.1% EPS decline in the last quarter.

The stock is trading at $158.62, up 60.64% from 52-week low of $100. The stock trades down -4.14% from its peak of $166 and % below the consensus price target of $193.31. Its volume clocked up at 2.44 million shares which is lower than the average volume of 2.53 million shares. Its market capitalization currently stands at $61.36B.

Stock to Keep Your Eyes on: Isle of Capri Casinos, Inc. (NASDAQ:ISLE)

Isle of Capri Casinos, Inc. (NASDAQ:ISLE) reported earnings for the three months ended April 2016 on June 14, 2016. The company earned $0.62 per share on revenue of $264.87M. Analysts had been modeling earning per share of $0.54 with $266.77M in revenue.

Isle of Capri Casinos, Inc. (NASDAQ:ISLE) reported financial results for the fourth quarter and fiscal year ended April 24, 2016 and other Company-related news.

Fiscal 2016 Fourth Quarter and Fiscal Year 2016 Highlights

  • Diluted net income per share from continuing operations increased to $0.60 per share from $0.08 in the prior year quarter.
  • Eight of 13 properties reported higher year-over-year Adjusted EBITDA in the fourth quarter driven by continued strong performance at our Missouri properties.
  • Adjusted EBITDA increased $0.4 million, to $65.8 million in the quarter compared to the prior year quarter while Adjusted EBITDA margin increased 57 bps, to 24.9%.
  • Fiscal 2016 Adjusted EBITDA increased 5.0% year over year and Adjusted EBITDA margin increased 100 bps, to 21.6%.
  • Our balance sheet continues to get stronger as debt to Adjusted EBITDA ratio was 4.4x at the end of fiscal 2016 compared to 4.9x a year ago.

Financial Highlights

Net revenues for the current quarter were $264.9 million compared to $269.3 million in the prior year quarter, down 1.6%.  Seven of 13 properties reported higher net revenues for the quarter.

Consolidated Adjusted EBITDA was $65.8 million for the quarter compared to $65.4 million in the prior year quarter, up 0.7%.  Consolidated Adjusted EBITDA margins improved to 24.9% from 24.3%.  Operating income increased to $43.2 million from $35.9 million in the prior year quarter.

Interest expense was $16.7 million compared to $20.8 million in the prior year quarter, as a result of our lower overall debt balance as well as the benefits of refinancing our 7.75% Senior Notes due 2019 in the first quarter of fiscal 2016.

On a GAAP basis, diluted income per share from continuing operations was $0.60 compared to diluted income per share from continuing operations of $0.08 in the prior year’s quarter.

The following items impacted income from continuing operations during the fourth quarter of fiscal 2015:

  • We recorded a non-cash impairment charge of $9.0 million in fiscal 2015.
  • We recorded a loss on early extinguishment of debt of $13.8 million in fiscal 2015 related to the tender and refinancing of our 7.75% Senior Notes due 2019.

Operating Results

(All comparisons are to the prior year quarter)

Black Hawk – Net revenues decreased $1.4 million, or 4.0%, to $32.4 million and Adjusted EBITDA decreased $0.9 million to $9.2 million, at our two casinos in Black Hawk. The property results were affected by increased competition in the market this year; in particular, the prior year quarter’s results benefited from construction disruption at a nearby property.

Pompano – Net revenues decreased $2.8 million, or 5.2%, to $51.8 million, and Adjusted EBITDA decreased 7.2%, to $13.8 million at Pompano Park.  Continuing from the third quarter, fewer transient customer trips year over year and an increased competitive environment hampered results in the early part of the quarter; however, the property rebounded to prior year levels in April. Despite the decline, Pompano generated the second highest fourth quarter Adjusted EBITDA since the property’s opening in 2007.

Isle of Capri Casinos, Inc. earnings per share showed an increasing trend of 546.3% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 155%.Analysts project EPS growth over the next 5 years at 4%. It has EPS annual growth over the past 5 fiscal years of 60.6% when sales grew 0.9. It reported -1.6% sales drop, and 684.7% EPS growth in the last quarter.

The stock is trading at $18.43, up 73.54% from 52-week low of $10.62. The stock trades down -14% from its peak of $21.43 and % below the consensus price target of $19.75. Its volume clocked up at 0.27 million shares which is higher than the average volume of 0.24 million shares. Its market capitalization currently stands at $761.90M.

Stock to Keep Your Eyes on: SouFun Holdings Ltd. (NYSE:SFUN)

SouFun Holdings Ltd. (NYSE:SFUN) reported earnings for the three months ended March 2016 on June 02, 2016. The company earned $-0.24 per share on revenue of $204.62M. Analysts had been modeling earning per share of $-0.12 with $191.05M in revenue.

SouFun Holdings Ltd. (NYSE:SFUN) announced its unaudited financial results for the three months ended March 31, 2016.

First Quarter 2016 Highlights

  • Total Revenue increased by 62.3% year-on-year to $204.6 million. Revenue from e-commerce services increased by 154.0% year-on-year to $130.9 million.
  • Operating loss was $110.2 million. Non-GAAP operating loss was $108.1 million. A description of the adjustments from GAAP to non-GAAP operating income is set forth below.
  • Net loss attributable to Fang’s shareholders was $113.7 million.
  • Non-GAAP net loss attributable to Fang’s shareholders was $111.6 million, a $0.23 loss per fully-diluted earnings ADS.
  • GMV increased by 664% from $1.7 billion in the first quarter of 2015 to $12.7 billion in the first quarter. The following table shows GMV by quarter for the 3 months of 2016.

First Quarter 2016 Results

Revenues

Fang reported total revenues of $204.6 million for the three months ended March 31, 2016, representing an increase of 62.3% from $126.0 million for the corresponding period in 2015, primarily driven by the growth in e-commerce services.

Revenue from marketing services was $30.4 million for the three months ended March 31, 2016, a decrease of 25.1% from $40.6 million for the corresponding period in 2015, primarily due to the offset by our e-commerce services.

Revenue from listing services was $24.1 million for the three months ended March 31, 2016, which is higher than the $23.6 million for the corresponding period in 2015.

Revenue from Internet financial services was $10.6 million for the three months ended March 31, 2016, an increase of 200.1% from $3.5 million for the corresponding period in 2015 primary due to rapid growth in our financial services to the real estate brokerage services.

Revenue from value-added services and other services was $8.5 million for the three months ended March 31, 2016, an increase of 27.8% from $6.7 million for the corresponding period in 2015, primarily due to the growth of our data and research related products.

Cost of Revenue

Cost of revenue was $209.6 million for the three months ended March 31, 2016, an increase of 357.6% from $45.8 million for the corresponding period in 2015. The increase in cost of revenue was mainly attributable to increased staff cost.

SouFun Holdings Ltd. earnings per share showed a decreasing trend of -108.3% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 14%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual decline over the past 5 fiscal years of -17.3% when sales grew 31.5. It reported 65.7% sales growth, and 0% EPS decline in the last quarter.

The stock is trading at $5.19, up 18.76% from 52-week low of $4.37. The stock trades down -43.59% from its peak of $8.87 and % below the consensus price target of $7.3. Its volume clocked up at 4.45 million shares which is higher than the average volume of 4.16 million shares. Its market capitalization currently stands at $2.43B.

Stock to Track: Mattress Firm Holding Corp. (NASDAQ:MFRM)

Mattress Firm Holding Corp. (NASDAQ:MFRM) reported earnings for the three months ended April 2016 on June 09, 2016. The company earned $-0.1 per share on revenue of $839.39M. Analysts had been modeling earning per share of $-0.04 with $867.2M in revenue.

Mattress Firm Holding Corp. (NASDAQ:MFRM) announced its financial results for the first fiscal quarter (13 weeks) ended May 3, 2016. Net sales for the first fiscal quarter increased 49.2% over the prior year period to $839.4 million, reflecting incremental sales from acquired and new stores, partially offset by a comparable-store sales decline of 1.1%. The Company reported first fiscal quarter earnings (loss) per diluted share (“EPS”) on a generally accepted accounting principles (“GAAP”) basis of $(3.22), and EPS on a non-GAAP adjusted basis, excluding intangible asset impairment charges, acquisition-related costs, fixed asset impairment costs and severance charges (“Adjusted”), of $(0.17). Excluding the non-cash amortization of tradenames, Adjusted EPS excluding Tradename Amortization was $(0.10), compared with the Company’s guidance for $(0.07) to $0.00 in Q1.

Preliminary First Quarter Financial Summary

  • Net sales for the first fiscal quarter increased 49.2% as compared with the comparable prior year period to $839.4 million, reflecting incremental sales from acquired and new stores, partially offset by a comparable-store sales decline of 1.1%. Comparable-store sales growth in the prior year period was 1.3%.
  • The Company acquired 1,065 stores, opened 85 new stores and closed 37 stores, bringing the total number of Company-operated stores to 3,472 as of the end of the fiscal quarter.
  • Loss from operations was $167.7 million. Excluding a total of $181.4 million of intangible asset impairment charges, acquisition-related costs, fixed asset impairment costs and severance charges, Adjusted income from operations was $13.7 million, as compared with $29.0 million for the comparable prior year period. Adjusted operating income margin was 1.6% of net sales as compared to 5.2% in the first fiscal quarter of 2015, and included a 280 basis-point decline in gross margin, an 80 basis-point decrease from sales and marketing expense deleverage, and 20 basis-points of combined operating margin declines from franchise fees and losses on store closings, partially offset by a 20 basis-point improvement in general and administrative expense leverage. Please refer to “Reconciliation of Reported (GAAP) to Adjusted Statements of Operations Data” for a reconciliation of income from operations to Adjusted income from operations and other information.
  • Net loss attributable to Mattress Firm Holding Corp. was $119.2 million and GAAP EPS was $(3.22). Excluding $112.7 million, net of income taxes, of intangible asset impairment charges, acquisition-related costs, fixed asset impairment costs and severance charges, Adjusted net loss was $6.5 million and Adjusted EPS was $(0.17). Please refer to “Reconciliation of Reported (GAAP) to Adjusted Statements of Operations Data” for a reconciliation of net income (loss) and GAAP EPS to Adjusted net income (loss) and Adjusted EPS, respectively, and other information.

Mattress Firm Holding Corp. earnings per share showed an increasing trend of 42.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 279%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual growth over the past 5 fiscal years of 159% when sales grew 38.8. It reported 49.2% sales growth, and 0% EPS decline in the last quarter.

The stock is trading at $33.37, up 22.77% from 52-week low of $27.18. The stock trades down -49.06% from its peak of $65.51 and % below the consensus price target of $35.88. Its volume clocked up at 0.28 million shares which is lower than the average volume of 0.39 million shares. Its market capitalization currently stands at $1.28B.

Stock to Track: Semtech Corporation (NASDAQ:SMTC)

Semtech Corporation (NASDAQ:SMTC) reported earnings for the three months ended April 2016 on June 01, 2016. The company earned $0.3 per share on revenue of $131.15M. Analysts had been modeling earning per share of $0.27 with $128.38M in revenue.

Semtech Corporation (NASDAQ:SMTC) reported unaudited financial results for its first quarter of fiscal year 2017, which ended May 1, 2016.

  • Quarterly Net Sales of $131.1 Million, Up 11 Percent Sequentially
  • GAAP EPS of $0.11, Up $0.09 or 450 Percent Sequentially
  • Non-GAAP EPS of $0.30, Up $0.13 or 76 Percent Sequentially

Net sales for the first quarter of fiscal year 2017 were $131.1 million, up 11 percent from the fourth quarter of fiscal year 2016 and up 1 percent from the first quarter of fiscal year 2016.

Gross margin, computed in accordance with U.S. generally accepted accounting principles (GAAP), for the first quarter of fiscal year 2017 was 59.9 percent compared to 58.6 percent in the fourth quarter of fiscal year 2016 and 60.3 percent in the first quarter of fiscal year 2016.

GAAP net income for the first quarter of fiscal year 2017 was $6.9 million, or $0.11 per diluted share.  This compares to GAAP net income of $1.2 million or $0.02 per diluted share in the fourth quarter of fiscal year 2016, and GAAP net loss of $0.01 million or $0.00 per diluted share in the first quarter of fiscal year 2016.

GAAP operating results for the fourth quarter of fiscal 2016 reflected an after-tax benefit of $1.8 million as a result of the fair value re-measurement of the Triune Systems earn-out liability.

To facilitate the complete understanding of comparable financial performance between periods, the Company also presents performance results net of certain non-cash items and items that are not considered reflective of the Company’s core results over time.  The Company’s non-GAAP measures of gross margin, net income and earnings per diluted share exclude certain items as described below under “Non-GAAP Financial Measures.”

Second Quarter of Fiscal Year 2017 Outlook

  • Net sales are expected to be in the range of $130 million to $140 million
  • GAAP gross margin is expected to be in the range of 59.6% to 60.2%
  • Non-GAAP gross margin is expected to be in the range of 60.0% to 60.5%
  • GAAP SG&A expense is expected to be in the range of $32.2 million to $33.2 million
  • GAAP R&D expense is expected to be in the range of $25.6 million to $26.6 million
  • Transaction and Integration related expense is expected to be approximately $1.6 million
  • Stock-based compensation expense is expected to be approximately $6.1 million, categorized as follows: $0.5 million cost of sales, $4.1 million SG&A, and $1.6 million R&D
  • Intangible amortization expense is expected to be approximately $6.4 million
  • Interest and other expense is expected to be approximately $2.2 million
  • GAAP tax rate is expected to be in the range of 29% to 31%
  • Non-GAAP tax rate is expected to be in the range of 21% to 23%
  • GAAP earnings per diluted share are expected to be in the range of $0.12 to $0.17
  • Non-GAAP earnings per diluted share are expected to be in the range of $0.30 to $0.36
  • Fully-diluted share count is expected to be approximately 66.0 million shares
  • Capital expenditures are expected to be approximately $8.0 million
  • Depreciation expense is expected to be approximately $5.9 million

Semtech Corporation earnings per share showed a decreasing trend of -57.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 156%.Analysts project EPS growth over the next 5 years at 4.65%. It has EPS annual decline over the past 5 fiscal years of -31.1% when sales grew 1.5. It reported 0.8% sales growth, and 0% EPS decline in the last quarter.

The stock is trading at $24.61, up 75.28% from 52-week low of $14.04. The stock trades down -0.61% from its peak of $24.76 and 15.48% above the consensus price target of $28.42. Its volume clocked up at 0.48 million shares which is higher than the average volume of 0.38 million shares. Its market capitalization currently stands at $1.57B.

Stock’s Earnings in Focus: Advaxis, Inc. (NASDAQ:ADXS)

Advaxis, Inc. (NASDAQ:ADXS) reported earnings for the three months ended April 2016 on June 08, 2016. The company earned $-0.45 per share on revenue of $0M. Analysts had been modeling earning per share of $-0.54 with $0M in revenue.

Advaxis, Inc. (NASDAQ:ADXS) announced dose administration for the first patient in the first stage of its Phase 2 clinical trial of their FAWCETT study, testing the Company’s lead immunotherapy candidate, axalimogene filolisbac (AXAL), in patients with persistent or recurrent metastatic anal cancer.

The multi-center, open-label, two-stage study is designed to evaluate the efficacy and safety of AXAL as a monotherapy in patients with HPV-associated metastatic anal cancer who have received at least one prior treatment regimen for the advanced disease. Stage 1 of the trial will enroll 31 patients with anal cancer whose disease recurred after receiving treatment. Patients will receive AXAL 1×109 colony forming unit (CFU) doses every three weeks for up to two years.

In collaboration with Brown University Oncology Research Group, AXAL has been evaluated in high-risk, locally advanced anal cancer with concurrent standard chemotherapy and radiation treatment. Preliminary data show treatment with AXAL indicated a clinical complete response and no recurrence in all 10 patients who completed the treatment regimen.

“The FAWCETT study is an important step in the development program for AXAL,” said Daniel J. O’Connor, President and Chief Executive Officer at Advaxis. “People living with anal cancer desperately need new treatment options, which is why Advaxis is pursuing two areas of evaluation, including monotherapy with AXAL and a second study with an immune checkpoint inhibitor in combination with AXAL.”

The FAWCETT (Fighting Anal-Cancer with CTL Enhancing Tumor Therapy) study was named in honor of Farrah Fawcett, who passed away due to HPV-associated anal cancer. In 2015, the Farrah Fawcett Foundation honored Advaxis with its inaugural “Medical Visionary Angel Award” based on the Company’s clinical research and efforts to treat this disease, initiating a partnership among the organizations.

Advaxis, Inc. earnings per share showed a decreasing trend of -73.7% for the current fiscal year. The company’s expected EPS decline rate for next fiscal year is -211%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual growth over the past 5 fiscal years of 28.5% when sales declined 0. It reported 0% sales drop, and 12.5% EPS growth in the last quarter.

The stock is trading at $8.17, up 56.81% from 52-week low of $5.21. The stock trades down -63.2% from its peak of $22.2 and % below the consensus price target of $22.5. Its volume clocked up at 0.62 million shares which is lower than the average volume of 0.78 million shares. Its market capitalization currently stands at $277.86M.

Stock’s Earnings in Focus: United Natural Foods, Inc. (NASDAQ:UNFI)

United Natural Foods, Inc. (NASDAQ:UNFI) reported earnings for the three months ended April 2016 on June 06, 2016. The company earned $0.76 per share on revenue of $2.13B. Analysts had been modeling earning per share of $0.66 with $2.16B in revenue.

United Natural Foods, Inc. (NASDAQ:UNFI) reported financial results for the third fiscal quarter ended April 30, 2016.

Third Quarter Fiscal 2016 Highlights

  • Net sales increased 0.8% to $2.13 billion compared to $2.11 billion for the same period last fiscal year.
  • Adjusted net sales increased 6.1% compared to the same period last fiscal year, excluding the year-over-year impact of the previously disclosed termination of a customer distribution contract.
  • Gross margin increased to 15.1% compared to 14.5% in the second quarter of fiscal 2016.
  • Net income of $38.3 million, or $0.76 per diluted share

“We are pleased with our solid sequential quarterly improvement in net income,” said Steven Spinner, President and CEO. “Over the last several months our team has worked to significantly expand UNFI’s fresh produce, specialty products and service offerings with the acquisitions of Nor-Cal, Global Organic and Haddon House Food Products. We welcome and look forward to working with the new team members joining the UNFI family. Going forward, we believe these efforts will help support our future growth as we continue to build distribution with new customers and expand relationships with existing customers.”

Net sales for the third quarter of fiscal 2016 increased 0.8%, or $17.5 million, to $2.13 billion from $2.11 billion in the third quarter of fiscal 2015. Adjusted net sales for the quarter increased 6.1% compared to the same period last fiscal year, excluding the year-over-year impact of the previously disclosed termination of a customer distribution contract. The net sales contribution from the acquisitions of Global Organic/Specialty Source, Inc. (“Global Organic”) and Nor-Cal Produce, Inc. (“Nor-Cal”) was approximately $18.1 million, or 0.9% of net sales, for the third quarter of fiscal 2016.

Gross margin decreased 29 basis points to 15.1% for the third quarter of fiscal 2016 compared to 15.4% for the same period last year. The decrease in gross margin was primarily due to competitive pricing pressures, a reduction in fuel surcharges, moderated supplier promotional activity, and a shift in the mix of sales towards lower margin categories. Gross margin for the third quarter of fiscal 2016 increased approximately 59 basis points compared to 14.5% in the second quarter of fiscal 2016. This increase was primarily driven by a sequential improvement in supplier promotional activity and the favorable impact of foreign exchange for the Company’s Canadian business.

Total operating expenses were 12.0% as a percentage of net sales for the third quarter of fiscal 2016, a decrease of 12 basis points compared to the same period last fiscal year. Total operating expenses decreased $0.5 million to $256.4 million for the third quarter of fiscal 2016 compared to $256.9 million in the third quarter of fiscal 2015. Total operating expenses for the third quarter of fiscal 2016 included approximately $0.9 million of acquisition related costs and $1.2 million of startup costs related to the Company’s Gilroy, California facility. Total operating expenses for the third quarter of fiscal 2015 included startup costs of approximately $0.5 million related to the Company’s Hudson Valley, New York and Prescott, Wisconsin facilities offset by a $0.6 million energy grant received as a result of incorporating eligible energy saving designs into the Company’s Hudson Valley, New York facility.

United Natural Foods, Inc. earnings per share showed an increasing trend of 9.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 270%.Analysts project EPS growth over the next 5 years at 8.15%. It has EPS annual growth over the past 5 fiscal years of 11.9% when sales grew 16.9. It reported 0.8% sales growth, and -8.4% EPS decline in the last quarter.

The stock is trading at $45.74, up 53.75% from 52-week low of $29.75. The stock trades down -29.52% from its peak of $64.9 and % below the consensus price target of $42.13. Its volume clocked up at 0.49 million shares which is lower than the average volume of 0.72 million shares. Its market capitalization currently stands at $2.27B.

VeriFone Systems, Inc. (NYSE:PAY) headlining after earnings

VeriFone Systems, Inc. (NYSE:PAY) reported earnings for the three months ended April 2016 on June 07, 2016. The company earned $0.47 per share on revenue of $532.4M. Analysts had been modeling earning per share of $0.52 with $530.09M in revenue.

VeriFone Systems, Inc. (NYSE:PAY) announced financial results for the three months ended April 30, 2016.

Second Quarter Financial Highlights

  • GAAP net revenues of $526 million and Non-GAAP net revenues of $532 million
  • GAAP net income per diluted share of $0.03
  • Non-GAAP net income per diluted share of $0.47
  • Operating cash flow of $51 million

“Q2 was a mixed quarter for Verifone as we grew our business, but experienced several difficult market dynamics,” said Paul Galant, Chief Executive Officer of Verifone. “As a result, it is necessary for us to adjust for these risks and update our outlook for FY16 to $2.100 billion dollars of revenue and $1.85 of earnings per share. We are aggressively executing mitigating actions including a headcount restructuring and a review of underperforming businesses. At the same time, we remain committed to executing our strategy in a disciplined manner, and continue to make progress in bringing our next generation devices to market and launching our services platform.”

Third Quarter and Fiscal Year 2016 Outlook

Guidance for the third fiscal quarter of 2016 is as follows:

  • Non-GAAP net revenues of $515 million
  • Non-GAAP net income per diluted share of $0.40

Guidance for the full fiscal year 2016 is as follows:

  • Non-GAAP net revenues of $2.100 billion
  • Non-GAAP net income per diluted share of $1.85

Restructuring Initiatives

Verifone is currently conducting a disciplined strategic review to address underperforming businesses and reduce overall operating expense levels. In connection with these plans the company intends to reduce headcount and estimates that these activities in total will generate approximately $30 million of savings in 2017.

VeriFone Systems, Inc. earnings per share showed an increasing trend of 299.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 216%.Analysts project EPS growth over the next 5 years at 15%. It has EPS annual decline over the past 5 fiscal years of -12.9% when sales grew 14.8. It reported 7.4% sales growth, and -80.2% EPS decline in the last quarter.

The stock is trading at $19.5, up 5.69% from 52-week low of $18.45. The stock trades down -46.34% from its peak of $35.74 and % below the consensus price target of $27.44. Its volume clocked up at 3.08 million shares which is higher than the average volume of 2.46 million shares. Its market capitalization currently stands at $2.14B.

Vince Holding Corp (NYSE:VNCE) take heat post earnings

Vince Holding Corp (NYSE:VNCE) reported earnings for the three months ended April 2016 on June 07, 2016. The company earned $-0.05 per share on revenue of $67.64M. Analysts had been modeling earning per share of $-0.11 with $55.45M in revenue.

Vince Holding Corp (NYSE:VNCE) reported unaudited results for the first quarter of fiscal 2016 ended April 30, 2016.

For the first quarter ended April 30, 2016:

  • Net sales increased 13.0% to $67.6 million from $59.8 million in the first quarter of fiscal 2015. Wholesale segment sales increased 16.9% to $44.8 million and direct-to-consumer segment sales increased 6.1% to $22.9 million over the first quarter of fiscal 2015. Comparable sales decreased 12.3%, including e-commerce sales, which was in line with expectations, due to the planned reduction in promotional activity and inventory levels.
  • Gross profit was $28.3 million, or 41.8% of net sales. This compares to gross profit of $30.7 million, or 51.4% of net sales, in the first quarter of fiscal 2015. The decrease in gross profit rate was primarily attributable to a change in product mix and continued strategic investments.
  • Selling, general, and administrative expenses were $31.8 million, or 47.0% of sales compared to $25.6 million, or 42.9% of sales, in the first quarter of fiscal 2015. The increase in SG&A dollars for the first quarter of Fiscal 2016 includes continued store and strategic investments made to support the Company’s long term goals.
  • Operating loss was $3.5 million, compared to operating income of $5.1 million for the first quarter of fiscal 2015.
  • Net loss was $1.9 million, or $0.05 per share, compared to net income of $2.5 million, or $0.06 per diluted share, for the first quarter of fiscal 2015.
  • The Company opened three new stores, ending the first quarter with 51 company-operated stores.

2016 Outlook

For fiscal 2016, the Company expects:

  • Total net sales between $290 million and $305 million, including revenues from six new retail stores and comparable sales growth inclusive of ecommerce sales in the flat to low-single digit range. The Company expects sales to decrease in the mid- to high-single digit range for the first half of the year and to be flat or increase in the mid-single digit range in the second half of the year as compared to the same prior year periods;
  • Gross margin of approximately 47%;
  • SG&A to be between $131 million and $133 million;
  • Interest expense of approximately $4 million;
  • Diluted EPS of $0.00 to $0.06. The company expects net loss per share to be in the high-single digit to low-teen’s range in the first half of the year due to higher SG&A growth as the result of continued store and strategic investments in early fiscal 2016 and the annualization of store openings and strategic investments made in fiscal 2015. Note that the EPS guidance reflects a share count of approximately 46.4 million, which includes the impact of 11.8 million shares issued in connection with the rights offering; and
  • Capital expenditures between $10 million and $12 million.

Vince Holding Corp earnings per share showed a decreasing trend of -85.5% 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 -11%. It has EPS annual growth over the past 5 fiscal years of 15.3% when sales declined -12.4. It reported 13% sales growth, and -178.3% EPS decline in the last quarter.

The stock is trading at $5.52, up 66.77% from 52-week low of $3.31. The stock trades down -58.15% from its peak of $13 and % below the consensus price target of $7.1. Its volume clocked up at 0.29 million shares which is lower than the average volume of 0.33 million shares. Its market capitalization currently stands at $247.28M.

Volatile post-earnings mover: Lululemon Athletica Inc. (NASDAQ:LULU)

Lululemon Athletica Inc. (NASDAQ:LULU) reported earnings for the three months ended April 2016 on June 08, 2016. The company earned $0.3 per share on revenue of $495.52M. Analysts had been modeling earning per share of $0.31 with $487.6M in revenue.

Lululemon Athletica Inc. (NASDAQ:LULU)  announced financial results for the first quarter ended May 1, 2016.

For the first quarter ended May 1, 2016:

  • Net revenue increased by 17% to $495.5 million from $423.5 million in the first quarter of fiscal 2015, or increased by 19% on a constant dollar basis.
  • Total comparable sales, which includes comparable store sales and direct to consumer, increased by 6%, or by 8% on a constant dollar basis.
  • Comparable store sales increased by 3%, or by 5% on a constant dollar basis.
  • Direct to consumer net revenue increased by 17% to $97.6 million, or by 18% on a constant dollar basis.
  • Gross profit increased by 16% to $239.1 million, and as a percentage of net revenue gross profit was 48.3% compared to 48.6% in the first quarter of fiscal 2015.
  • Income from operations decreased by 15% to $57.6 million from $68.0 million in the first quarter of fiscal 2015, and as a percentage of net revenue was 11.6% compared to 16.1% of net revenue in the first quarter of fiscal 2015. Included in selling, general and administrative expenses were net foreign exchange losses of $13.5 million, primarily due to the revaluation of U.S. dollar cash and receivables held in Canada, which were $9.1 million more than the net foreign exchange losses in the first quarter of fiscal 2015.
  • Income tax expense was $11.8 million, which included a net income tax recovery of $5.6 million related to the Company’s transfer pricing arrangements and the associated plan to repatriate foreign earnings. In addition, there was a related net interest expense of $1.2 million. The effective tax rate in the first quarter of fiscal 2016 was 20.6% compared to 30.3% in the first quarter of fiscal 2015. Excluding the above tax and related interest adjustments, the effective tax rate was 29.8% in the first quarter of fiscal 2016.
  • Diluted earnings per share for the first quarter of fiscal 2016 were $0.33 compared to $0.34 in the first quarter of fiscal 2015. Excluding the above tax and related interest adjustments, diluted earnings per share were $0.30 for the first quarter of fiscal 2016.
  • During the first quarter of fiscal 2016, the Company repurchased 0.2 million shares of the Company’s common stock at an average cost of $65.01 per share.

The Company ended the first quarter of fiscal 2016 with $550.0 million in cash and cash equivalents compared to $655.9 million at the end of the first quarter of fiscal 2015. Inventories at the end of the first quarter of fiscal 2016 increased by 21% to $286.2 million compared to $236.5 million at the end of the first quarter of fiscal 2015. The Company ended the quarter with 373 stores.

Laurent Potdevin, lululemon’s CEO, stated: “We are pleased with our first quarter performance, delivering strong sales results and gross margin that exceeded expectations. We finished the quarter with our inventory levels rebalanced and on track to achieve our goals for the year.”

Updated Outlook

For the second quarter of fiscal 2016, we expect net revenue to be in the range of $505 million to $515 million based on total comparable sales in the mid-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $0.36 to $0.38 for the quarter. This guidance assumes 137.5 million diluted weighted-average shares outstanding and a 30.2% tax rate.

For the full fiscal 2016, we now expect net revenue to be in the range of $2.305 billion to $2.345 billion based on total comparable sales in the mid-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $2.08 to $2.18 for the full year, or $2.05 to $2.15 normalized for the tax and related interest adjustments made during the first quarter of fiscal 2016. This guidance assumes 137.5 million diluted weighted-average shares outstanding and a 28.9% tax rate, which includes the above tax and related interest adjustments.

Lululemon Athletica Inc. earnings per share showed an increasing trend of 14.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 253%.Analysts project EPS growth over the next 5 years at 16.14%. It has EPS annual growth over the past 5 fiscal years of 17.4% when sales grew 23.7. It reported 17% sales growth, and -1.8% EPS decline in the last quarter.

The stock is trading at $71.82, up 66.48% from 52-week low of $43.14. The stock trades down -1.91% from its peak of $73.22 and % below the consensus price target of $71.39. Its volume clocked up at 1.39 million shares which is lower than the average volume of 2.31 million shares. Its market capitalization currently stands at $9.77B.