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.

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

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

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

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

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

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

Capital Allocation Outlook

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

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

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

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

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

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

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

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

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

Fourth Fiscal Quarter of 2016 Financial Details

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

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

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

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

Fiscal Year 2016 Financial Details

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

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

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

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

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

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

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

Earnings Watch: Advanced Drainage Systems, Inc (WMS)

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

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

Fiscal Year Ended March 31, 2016 Highlights

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

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

Fiscal Year 2016 Results

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

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

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

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

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

Fiscal Year 2017 Outlook

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

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

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

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

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

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

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

Second Quarter Financial Highlights

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

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

Executive Quotes

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

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

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

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

Earnings Review: Innocoll Holdings plc (INNL)

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

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

First Quarter 2016 and Recent Highlights

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

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

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