The article was written by Motek Moyen ResearchSeeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.
Summary:
Autodesk will report its 3Q FY2020 earnings on November 26. I expect it to beat Wall Street’s EPS and revenue estimates.
I recommend ADSK as a buy before earnings gambit. This stock is now trading well below its 2019 high of $178.21. ADSK’s 6-month return is -13.63%.
If my bet that Autodesk will report better than expected 3Q FY2020 EPS and revenue numbers, ADSK might shoot up to $165 before December 31.
Autodesk’s rapid shift to subscription-based software marketing is paying off well. Its annual recurring revenue is now $3.07 billion. Recurring revenue now accounts for 96% Autodesk’s sales.
Winning Stock Forecast: Global Eagle Entertainment (NASDAQ:ENT) A High-Flyer Boasting a 49.62% Return in 7 Days
[Source: Wikimedia Commons, May 30, 2018]
“During the first quarter of 2018, we focused on our objectives of operating a healthy core business, driving profitable growth and aggressively transforming our business. We continue to expect a minimum of 25% Adjusted EBITDA growth in 2018 versus 2017”
— Josh Marks, CEO of Global Eagle Entertainment
During the past week, Global Eagle Entertainment’s stock jumped 49.62% outperforming the market by over 50%, following their earnings announcement. Global Eagle Entertainment is a leading provider of media, content, connectivity, and data analytics to markets across air, sea, and land. They reported their financial results for Q1 on May 15th, 2018. For the first quarter of 2018, Global Eagle recorded revenue of $156 million, incurred a net loss of $38.3 million, and generated Adjusted EBITDA of $17.3 million.
However, the company’s stock price for Global Eagle has been under pressure over the last three years. Lower margins and escalating losses have contributed to the price decrease, but recently the company published their Q1 Financial Report detailing their increasing profitability. Its losses swelled from $57 million in 2014 to $357 million in fiscal 2017 though it had robust growth in revenues. The company has been taking several initiatives to support its margins and to generate profitable growth in the coming years.
Nonetheless, as of current, the company’s stock nearly doubled since their May 15th earnings report, from a price of $0.87 at market close in May 15th to $1.84 per share at market close on May 29th. The company’s stock projection is expected to increase in the coming months, as ENT is on the right track in diminishing their net losses.
[Source: Yahoo Finance, May 30, 2018]
Q1 2018 Summary:
Total revenue for the first quarter of 2018 was $156 million, a 2.6% increase over the prior-year period. This increase was primarily driven by growth in service revenue in their Connectivity segment due to new aircraft, vessel and site additions, as well as increased equipment revenue.
Net loss for the first quarter of 2018 was $38.3 million. The smaller net loss over the prior-year period ($125.611 million) was primarily driven by a goodwill impairment in the first quarter of 2017 that did not recur in the first quarter of 2018. In the first quarter of 2017, the Company recorded a non-cash goodwill impairment charge of $78 million related to its Maritime & Land business unit within its Connectivity segment.
Adjusted EBITDA for the first quarter of 2018 was $17.3 million, which was a slight increase over the prior-year period, primarily due to growth in the Connectivity segment’s service revenue and equipment revenue, which included higher margin sales of spare parts.
The company has been taking several initiatives to support its margins and to generate profitable growth in the coming years.
Business Transformation Strategies
The company has been actively working on business transformation strategies to expand their margins and earnings combined with continued growth from its top-line. They have been working on three key strategies:
Running a healthy core business
Driving profitable growth
Aggressively transforming its business
The company has been seeing the positive impact of business strategies on its financial numbers. ENT has narrowed its losses in the latest quarter. Its loss from continuing operations stood at around $29 million in the most recent quarter; lower from the loss of $101 million in the year-ago period. The management expects its full-year EBITDA to improve 25% from the past year.
Stock Price Movement and Price Target
[Source: finviz.com, May 30, 2018] Its stock plummeted 86% in the last three years. Global Eagle Entertainment stock currently trades around $1.80 a share – with the 52-week trading range of $0.87 – $3.84. The company market cap stands around $163 million at present. Analysts, on the other hand, expect its stock price to trade at around $4 by the end of this year.
Analyst Recommendations:
According to analyst recommendations from Yahoo Finance, the current consensus is a “Buy/Hold” in ENT Stock, with 2 advising a “Buy, 2 advising a “Hold”, and 1 advising a “Sell”.
I Know First’s Algorithm Success With ENT Stock:
On May 21st 2018. I Know First algorithm issued a bullish 7-day forecast for Global Eagle Entertainment (NASDAQ:ENT). The forecast illustrated a signal of 11.56 and a predictability of 0.16 In accordance with this bullish forecast, FCAU stock returned 49.62% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.
Current I Know First subscribers received this bullish ENT forecast on May 21st 2018.
This article was written by Esther Hanon, a Financial Analyst at I Know First.
[Source: Wikimedia Commons, May 29th, 2018]
“Our continued focus on product development and efficient marketing investment once again drove strong financial results. This is a strong start to the year, and we are building momentum to propel continued growth through the remainder of 2018.”
--Avishai Abrahami, Co-founder and CEO of Wix
Stock Forecast: Wix.com Ltd. (NASDAQ: WIX) Up 8.5% After Releasing Q1 Revenue Increase of 49%
Summary:
WIX stock jumped nearly 9% following their Q1 earnings announcement on May 9th
They have beat expectation for both collection and revenues, and are increasing the full year outlook
They reported free cash flow of more than $21 million and revenues of $49 million
These strong financial results are driven by their continuous focus on innovation, product development and outstanding market execution
They've added 231,000 subscriptions this quarter, the most ever
“Our strong start to the year enables the company to stand by its projection of being free cash flow positive on our E&P business for the year, while continuing to grow volumes 15% to 20% year over year. Internally controlled infrastructure through OMS supported flow assurance, reduced costs, and provided access to liquid marketing points.”
—Thomas B. Nusz, Oasis’ Chairman and Chief Executive Officer.
[Source: Yahoo Finance, May 8th, 2018] On , Monday, May 7th, 2018, Oasis Petroleum (NYSE: OAS) announced their financial results for the first quarter (Q1) of 2018. Following their Earnings Announcement held on Monday, OASs stock jumped from $11.23 to $11.82 per share, outperforming the NASDAQ by more than 6%. Upon examining the drivers behind this impressive growth that occurred within the past 8 days, the most recent financial earnings report published by Oasis Petroleum provides the following highlights and updates that shed light on the stock event:
Oasis produced 76.8 thousand barrels of oil equivalent per day (“MBoepd”) in the first quarter of 2018, representing an increase of 22% over the first quarter of 2017.
Completed and placed on production 17 gross operated wells, including 16 gross operated wells in the Williston Basin and 1 gross operated well in the Delaware Basin, in the first quarter of 2018.
Oil differentials improved to $1.67 off of NYMEX West Texas Intermediate crude oil index price in the first quarter of 2018, approximately a 65% decrease over the first quarter of 2017.
Lease operating expenses per barrels of oil equivalent decreased over 15% to $6.48in the first quarter of 2018 compared to $7.71 per Boe in the first quarter of 2017.
Exploration and production capital expenditures were $176.9 million for the three months ended March 31, 2018.
Closed on the Permian Basin Acquisition from Forge Energy on February 14, 2018, adding an average of approximately 3.6 MBoepd of production and approximately 22,000 net undeveloped acres.
Delivered net cash provided by operating activities was $228.4 million and Adjusted EBITDA of $232.9 million for the first quarter of 2018.
Oasis delivered a formidable start to the year by growing volumes to 76,800 Boe per day in the first quarter while maintaining top tier capital efficiency and recycle ratio. The strong start to the year enabled Oasis to stand by its projection of being free cash flow positive on their E&P business for the year, while continuing to grow volumes 15% to 20% year over year. Additionally, internally controlled infrastructure through OMS supported flow assurance, reduced costs, and provided access to liquid marketing points. This combination resulted in reduced downtime and per barrel operating costs in spite of abnormally difficult winter conditions. Also, their access to liquid marketing points as a result of strategic investments in their integrated midstream infrastructure continue to help realize improved price differentials.
Oasis closed the Permian Basin Acquisition on February 14, 2018 and they have now taken over operations. Expansion of their service partnerships developed in the Williston Basin has helped them secure critical services at market competitive prices. Continued positive results of Oasis’s wells and offsets give them confidence in their plan. Their completion cadence is on track, if not a little ahead, and they have secured a second rig for the Permian which should spud by the end of May. They have increased their full year guidance to 81.0 to 84.0 MBoepd and expect production in the second quarter of 2018 to be 76.0 to 80.5 MBoepd, with the Williston being between 72.5 and 76.5 MBoepd and the Delaware being around 3.5 to 4.0 MBoepd.
[Source: PR Newswire, May 8th, 2018]
G&A costs totaled $27.9 million in the first quarter of 2018 vs. $23.2 million in the first quarter of 2017. Amortization of equity-based compensation, which is included in G&A, was $6.8 million, or $0.98 per Boe, in the first quarter of 2018 as compared to $6.7 million, or $1.18 per Boe, in the first quarter of 2017. G&A for the Company’s E&P segment totaled $23.5 million in the first quarter of 2018 vs. $20.1 million in the first quarter of 2017.
Interest expense was $37.1 million for the first quarter of 2018 as compared to $36.3 million for the first quarter of 2017. Capitalized interest totaled $4.5 million for the first quarter of 2018 vs. $2.8 million for the first quarter of 2017. Cash Interest totaled $37.2 million for the first quarter of 2018, and $35.1 million for the first quarter of 2017. For the three months ended March 31, 2018, the Company recorded an income tax expense of $0.8 million, resulting in an 18.2% effective tax rate as a percentage of its pre-tax income for the quarter. The Company recorded an income tax benefit of $202.8 million, resulting in a 271.5% effective tax rate as a percentage of its pre-tax loss for the three months ended December 31, 2017.
For the first quarter of 2018, Oasis reported net income of $0.6 million, or $0.00 per diluted share, as compared to a net income of $23.8 million, or $0.10 per diluted share, for the first quarter of 2017. Excluding certain non-cash items and their tax effect, Adjusted Net Income Attributable to Oasis (non-GAAP) was $30.2 million, or $0.10 per diluted share, in the first quarter of 2018, as compared to Adjusted Net Loss Attributable to Oasis of $11.5 million, or $0.05 per diluted share, in the first quarter of 2017. Adjusted EBITDA for the first quarter of 2018 was $232.9 million, as compared to Adjusted EBITDA of $150.6 million for the first quarter of 2017.
Analyst Recommendations:
According to analyst recommendations from Yahoo Finance, the current consensus is a “Buy” in OAS Stock, with 9 advising a “Strong Buy”, 12 advising a “Buy” and 10 advising a “Hold”.
On April 16th, 2018, Know First issued a bullish 14-day forecast for Oasis Petroleum (NYSE: OAS). The forecast illustrated a signal of 20.28 and a predictability of 0.36. In accordance with the forecast, OAS stock returned 24.35% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.
Current I Know First subscribers received this bullish OAS forecast on
This article was written by Esther Hanon, a Financial Analyst at I Know First.
[Source: REUTERS/Carlos Barria/File Photo, May 1, 2018]
Stock Forecast: Chipotle (CMG) Stock Surges After Beating Earnings and Announcing Stock Buyback:
"Job number one is to remind people why they love Chipotle. I think there [are] opportunities to use what we have and present it in new forms, new varieties, to get people re-engaged with what they love about Chipotle. There is an opportunity to bring in new flavors as well. One thing that's great is we got carnitas and chicken that people absolutely crave."
-- CEO Brian Niccol
Summary:
Shares of Chipotle Mexican Grill, Inc. have been on a post-earnings tear. While customer traffic trends have been weak ever since Chipotle's late-2015 E. coli outbreak, the company's profit margin came in well ahead of the company's plan for last quarter.
Chipotle reported earnings on Wednesday April 25, which sent the stock into orbit. Earnings blew past expectations, coming in at $2.13 per shares compared to consensus of $1.60 per share. Revenues were $1.15 billion, which were only in-line with analyst expectations.
Chipotle stock has added some 87 points, or 25%, since reporting earnings. While a move higher was undoubtedly warranted, the massive move higher has reached an extreme -- both on a fundamental and technical basis.
Chipotle Mexican Grill Inc. and DoorDash have partnered to make delivery service available at its more than 1,500 restaurants nationwide.
Chipotle is up nearly 48% for the year so far while the S&P 500 index is down 0.1% for the period.
CMG is increasing its buyback program by another $100 million. As of March 31, Chipotle had about $50.2 million available for repurchases from its previous buyback program, which had about $118 million at the end of last year.
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