Q2 Earnings Season Results - Collation

anthonyms · August 3, 2017, 3:56am

Ok - just so folks can see the blizzard from the snowflakes, here’s a run down of Saul Method and commonly held stocks of interest around these parts. Some have been reported and covered which I have included but I’ve also tried to incorporate some additional results - I will add to this as we go this season for easy reference.
Ant

Abiomed:-
Q1 EPS of $0.45 (+55% Y/Y) beats by $0.03
Revenue of $132.5m (+28.6% Y/Y) beats by $1.2M
Best ever Operating Margin, Q1 was the toughest YoY compare, expanded re-imbrusement in Germany and granted re-imbursement in Japan - the second largest market worldwide. Despite the share price ascent P/E has come down to 87 from over 100.
https://seekingalpha.com/article/4091165-abiomed-inc-2018-q1…
https://seekingalpha.com/article/4091428-abiomeds-abmd-ceo-m…

Audiocodes:-
Q2 EPS of $0.08 (+33% Y/Y) in-line
Revenue of $38.74M (+8.0% Y/Y) beats by $0.56M
Benefiting from focus around Microsoft Skype for business. Gaining operating leverage results
https://seekingalpha.com/pr/16896368-audiocodes-reports-seco…
https://seekingalpha.com/article/4090749-audiocodes-audc-ceo…

Blackstone:-
Q2 EPS of $0.59 (+34.1% Y/Y) misses by $0.03
Revenue of $1.51B (+29.1% Y/Y) misses by $20M
Misses results but has another smashing quarter for its PE business for AUM, economic income, fee based income and distributable returns all growing double digits. With a P/E of 16 and yield of 6%+ this is a high growth high value, high conviction play if ever you needed one.
https://s1.q4cdn.com/641657634/files/doc_financials/2017/q2/…
https://seekingalpha.com/article/4089301-blackstones-bx-ceo-…

Cognex:-
Q2 EPS of $0.56 (+12% Y/Y) beats by $0.02
Revenue of $172.9M (+17.4% Y/Y) beats by $3.1M
Computer vision - AI meets Robotics! It’s a beat and raise and next Q looks very good. Has had double rep’s from TMF although much commentary despite liking the company perceive it to be fully valued. The SA board for Cognex has great coverage and folks on this board do it justice too.
https://seekingalpha.com/news/3283508-cognex-beats-q1-estima…
https://seekingalpha.com/article/4092953-cognex-cgnx-q2-2017…

Criteo:-
Q2 EPS of $0.39 (+%18.2 Y/Y) beats by $0.05.
Revenue ex-TAC of $219.82M (+32.2% Y/Y) beats by $7.43M.
Solidly profitable now, not too stretched in valuation at a p/e of 44, re-accelerating top line growth above 30% which it anticipates maintaining.
https://seekingalpha.com/pr/16903861-criteo-reports-strong-r…
https://seekingalpha.com/article/4094041-criteos-crto-ceo-er…

HollyFrontier:-
Q2 EPS of $0.66 (+136% Y/Y) beats by $0.19
Revenue of $3.6B (+32.8% Y/Y) beats by $550M
Another tremendous quarter of high double digit growth post oil price debacle. Yields 4.5% FWIW.
https://seekingalpha.com/article/4093961-hollyfrontier-hfc-q…
https://seekingalpha.com/pr/16903824-hollyfrontier-corporati…

Hubspot:-
Q2 EPS of $0.07 (from -$0.07 Y/Y) beats by $0.08
Revenue of $89.09M (+37.1% Y/Y) beats by $3.37M
Has finally reached breakeven with 2 back to back quarters of positive EPS. P/S at 8.7 and falling rapidly.
https://seekingalpha.com/pr/16904991-hubspot-reports-q2-2017…

First Internet Bancorp:-
Q2 EPS of $0.61 (+7% Y/Y) beats by $0.06
Revenue of $22.28M (+70.7% Y/Y)
Scores a hit this time after a hit and miss earnings track record. Massive bump in the share price as a result. Accelerating top line growth although bottom line EPS affected by share issuance end of 2016 (net inc increased 40%). P/E on an undemanding 14.7
https://seekingalpha.com/pr/16892701-first-internet-bancorp-…

Fortinet:-
Q2 EPS of $0.27 (+93% Y/Y) beats by $0.07
Revenue of $363.5M (+16.7% Y/Y) beats by $2.37M
Beats targets and expectations but guidance misses for Q3 but beats for FY. Continued transition to subscription model appears successful.
https://seekingalpha.com/pr/16897626-fortinet-reports-second…
https://seekingalpha.com/article/4091005-fortinets-ftnt-ceo-…

Imperva:-
Q2 EPS of $0.24(from -$0.23) beats by $0.19
Revenue of $74.4M (+28.6% Y/Y) in-line
Growth reaccelerating and results satisfy but guidance doesn’t.
https://seekingalpha.com/pr/16899261-imperva-announces-secon…
https://seekingalpha.com/article/4091736-imperva-impv-q2-201…

KKR:-
Q2 EPS of $0.89 (+287% Y/Y) beats by $0.22
Revenue of $365.16M (+39.3% Y/Y) beats by $55.44M
Another stellar quarter and so undervalued with a P/E of 8. Given how much of the world’s economy is now controlled by private equity (reaching 20%) , if you don’t have a stake in P/E you are probably neither diversified nor representative sufficiently.
https://seekingalpha.com/pr/16898012-kkr-and-co-l-p-reports-…
https://seekingalpha.com/article/4091644-kkr-and-co-lp-kkr-q…
https://seekingalpha.com/article/4091255-kkr-2017-q2-results…

Mitek:-
Q3 EPS of $0.08 (+14.2% Y/Y) in-line.
Revenue of $11.8M (+29.5% Y/Y) beats by $0.32M.
30% top line but 60% SAAS growth rates - still small but growing out and profitable - but a very high p/e ratio though.
https://seekingalpha.com/pr/16899329-mitek-reports-record-re…
https://seekingalpha.com/article/4091690-mitek-systems-mitk-…

Mazor:-
Q2 EPS of -$0.05 (+44% Y/Y) beats by $0.18
Revenue of $15.45M (+86.6% Y/Y) beats by $1.11M
A monster quarter in terms of revenues, with the phase 2 international agreement with Medtronic yet to mobilise this relieves some of the concerns I had over stalled unit orders that surfaced in Q1. Still a long way from profitability and expensive on P/S at 20.
https://seekingalpha.com/pr/16901902-mazor-robotics-reports-…
https://seekingalpha.com/article/4093239-mazor-robotics-mzor…

Mulesoft:-
Q2 EPS of -$0.10 (flat) beats by $0.03
Revenue of $69.2M (+57.3% Y/Y) beats by $5.69M
Deferred revenue increased 50%
Beats results - guidance doesn’t impress, continued sell off subsequently, hand wringing over earnings progress towards profitability and business model.
https://seekingalpha.com/pr/16899353-mulesoft-announces-fina…
https://seekingalpha.com/article/4091662-mulesofts-mule-ceo-…

Paycom:-
Q2 EPS of $0.26 (+23.8 Y/Y) beats by $0.06
Revenue of $98.2M (+32.9% Y/Y) beats by $2.47M
Results were good - nicely maintaining a 30% growth rate and arresting any further tailing off, although EPS gains a little light for some with a p/e of 80+
https://seekingalpha.com/article/4093444-paycom-softwares-pa…
https://seekingalpha.com/pr/16903350-paycom-software-inc-rep…

PayPal:-
Q2 EPS of $0.46 (+27.8% Y/Y) beats by $0.03.
Revenue of $3.14B (+18.5% Y/Y) beats by $50M.
Maintains good double digit growth and demonstrates operating leverage, announces a ton of partnerships and plans to monetise Venmo with merchant transactions. High market cap but an acceptable if a little high p/e of 47
https://seekingalpha.com/pr/16897572-paypal-reports-second-q…
https://seekingalpha.com/article/4091039-paypals-pypl-ceo-da…

Qualys:-
Q2 EPS of $0.26 (+30% Y/Y) beats by $0.06
Revenue of $55.3M (+14.1% Y/Y) beats by $0.47M
Normalised growth of 18% continues to perform well as a focused cybersecurity solution player. increasingly profitable with p/e of 45
https://seekingalpha.com/pr/16905085-qualys-announces-second…

SolarEdge:-
Q2 EPS of $0.55 (+25% Y/Y) beats by $0.18
Revenue of $136.1M (+9.1% Y/Y) beats by $11.03M
SolarEdge has returned to growth and impressed the market with its turnaround with these results. They have reached 37% market share and are introducing a new HD Wave range to the market that seems to have gone down well. Analysts were very complimentary.
https://seekingalpha.com/pr/16904976-solaredge-announces-sec…
https://seekingalpha.com/article/4094081-solaredge-technolog…

Sierra Wireless:-
Q2 EPS of $0.30 (+50% Y/Y) beats by $0.02
Revenue of $173.5M (+11.1% Y/Y) beats by $3.23M
Maintains double digit growth, led by 30% growth in enterprise solutions, (cloud and OEM grew in single digits). Making a low priced acquisition of Numerex.
https://seekingalpha.com/news/3284799-sierra-wireless-beats-…
https://seekingalpha.com/pr/16905172-sierra-wireless-reports…

Shopify:-
Q2 EPS of -$0.01 (+75% Y/Y) beats by $0.06
Revenue of $151.66M (+75.0% Y/Y) beats by $8.02M
Kept top line growth at 75%, killing it on merchant growth numbers, expanding Shop capital well and leveraging payment solutions successfully.
https://seekingalpha.com/pr/16902083-shopify-announces-secon…
https://seekingalpha.com/article/4093340-shopify-shop-q2-201…

Square:-
Q2 EPS of $0.07 (from -$0.08) beats by $0.02
Revenue of $551.5M (+25.8% Y/Y) beats by $15.23M
Continued re-accelerating on tough compares, convincingly profitable now with growing grip on the merchant space and diversification in revenues in new ventures.
https://seekingalpha.com/pr/16904846-square-announces-second…
https://seekingalpha.com/article/4094029-square-sq-q2-2017-r…

Tesla:-
Q2 EPS of -$1.33 (+43% Y/Y) beats by $0.59
Revenue of $2.8B (+120.5% Y/Y) beats by $250M
Big numbers starting to come through - risk rapidly becoming an operational manufacturing capacity risk rather than fantasy numbers risk.
https://seekingalpha.com/pr/16905039-tesla-releases-second-q…
http://files.shareholder.com/downloads/ABEA-4CW8X0/492112092…

anthonyms · August 3, 2017, 8:32am

Ok - a few more…
Ant
ps and by the way why was my growth portfolio down 1.5% yesterday whilst the Nasdaq was flat? That didn’t feel very re-assuring!

Ceva:-
Q2 EPS of $0.28 (+33% Y/Y) beats by $0.01
Revenue of $20.6M (+20.5% Y/Y) beats by $0.85M
Maintains the 20%+ top line growth against tougher YoY compares, Yaniv Arieli, Chief Financial Officer of CEVA, stated: “Our licensing business continues to go from strength to strength, resulting in both all-time record high licensing revenue for the second quarter and backlog for the third quarter, as well as a stellar sales pipeline. Notably, we signed a multi-year portfolio agreement with a major customer, further adding to our backlog. We also managed to further strengthen our balance sheet during the quarter, with our cash balance, marketable securities and bank deposits totaling $170 million, with no debt.”
https://seekingalpha.com/pr/16905596-ceva-inc-announces-seco…

Regeneron:-
Q2 EPS of $4.17 (+48% Y/Y) beats by $1.01
Revenue of $1.47B (+21.5% Y/Y) beats by $120M
Amazing results accelerating for a whole year now back above 20%+ growth rate. I had been perplexed over their Sanofi co-promotion of Praluent that faces legal challenge but the rest of the portfolio delivered! P/E of 57 still high for biopharma but they are growing without any patent expiries to worry about so power to them.
https://seekingalpha.com/news/3285204-regeneron-q2-top-line-…
https://seekingalpha.com/pr/16905522-regeneron-reports-secon…

TAL Educations Systems:-
Q2 EPS of $0.43 (+72% Y/Y) beats by $0.04
Revenue of $321.9M (+65.0% Y/Y) beats by $14.07M
TAL’s incredible run continues. Valuation continues to track at 100 p/e with the share price gains but they continue to deliver every quarter. P/S is a little less daunting at 6.2.
https://seekingalpha.com/pr/16897976-tal-education-group-ann…

XMFCochrane · August 3, 2017, 8:37am

Very helpful, Ant! Thank you!

Matt
MasterCard (MA), PayPal (PYPL), Skechers (SKX) and Square (SQ) Ticker Guide
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx

anthonyms · August 3, 2017, 8:40am

You’re very welcome Matt - more than happy to give something back to this fine community!

anthonyms · August 3, 2017, 10:41pm

Ok a bunch of catch up results for everyone to review whilst you chomp on your cheerios...
Ant

Arista:-
Q2 EPS of $1.34 (+81.1% Y/Y) beats by $0.39
Revenue of $405.21M (+50.8% Y/Y) beats by $44.81M
Superb sequential and YoY progress and clearly killing it with Cisco in the market place.  I guess it all comes down to the court of law as the market is no competition for them.
[https://seekingalpha.com/pr/16906684-arista-networks-inc-rep...](https://seekingalpha.com/pr/16906684-arista-networks-inc-reports-second-quarter-2017-financial-results)
[https://seekingalpha.com/news/3285724-arista-networks-jumps-...](https://seekingalpha.com/news/3285724-arista-networks-jumps-14-percent-healthy-cloud-driven-q2-beat)

BlackLine:-
Q2 EPS of -$0.03 ( beats by $0.07
Revenue of $42.3M (+45.7% Y/Y) beats by $0.85M
Completely consistent 45% toppling growth for 3 quarters, EPS slightly narrowing.  A good report but Deloitte relationship yet to deliver.
[https://seekingalpha.com/pr/16906715-blackline-announces-sec...](https://seekingalpha.com/pr/16906715-blackline-announces-second-quarter-financial-results)

Grubhub:-
Q2 EPS of $0.26 (+13% Y/Y) in-line
Revenue of $158.8M (+32.1% Y/Y) beats by $0.64M
Mixed report - beat on top line, in line with bottom line and miss on guidance.  Fully if not overpaid for Eat24 deal.  Gives them greater depth and breadth of restaurants, cities and users.
[https://seekingalpha.com/pr/16906634-grubhub-reports-record-...](https://seekingalpha.com/pr/16906634-grubhub-reports-record-second-quarter-results)
[https://seekingalpha.com/article/4094668-grubhub-grub-q2-201...](https://seekingalpha.com/article/4094668-grubhub-grub-q2-2017-results-earnings-call-transcript)
[https://seekingalpha.com/pr/16906583-grubhub-yelp-announce-l...](https://seekingalpha.com/pr/16906583-grubhub-yelp-announce-long-term-partnership-connect-consumers-best-food-ordering-options)

Hortonworks:-
Q2 EPS of -$0.44 (+39% Y/Y) beats by $0.05
Revenue of $61.83M (+41.7% Y/Y) beats by $4.43M
A good beat but still a long way from breakeven.  SP responding well.
[https://seekingalpha.com/pr/16906622-hortonworks-reports-sec...](https://seekingalpha.com/pr/16906622-hortonworks-reports-second-quarter-2017-revenue-61_8-million-42-percent-year-year)

Impinj:-
Q2 EPS of $0.06 (+% Y/Y) beats by $0.04
Revenue of $34.11M (+31.2% Y/Y) beats by $0.6M
Beats but misses on guidance big time.  Getting punished after hours.
[https://seekingalpha.com/pr/16906618-impinj-announces-second...](https://seekingalpha.com/pr/16906618-impinj-announces-second-quarter-2017-financial-results)

Infinera:-
Q2 EPS of -$0.15 beats by $0.01
Revenue of $176.82M (-31.7% Y/Y) misses by $4.34M
Gonna leave it to Bear or someone to review this one.
[https://seekingalpha.com/pr/16906827-infinera-corporation-re...](https://seekingalpha.com/pr/16906827-infinera-corporation-reports-second-quarter-2017-financial-results)

MercadoLibre:-
Q2 EPS of $0.61 (-25% Y/Y) misses by $0.42
Revenue of $316.53M (+58.6% Y/Y) beats by $5.39M
Top line beat, bottom line miss driven by currencies, build out investment in operations etc.  Still second highest top line growth ever, highest revs ever and 
[https://seekingalpha.com/pr/16906736-mercadolibre-inc-report...](https://seekingalpha.com/pr/16906736-mercadolibre-inc-reports-second-quarter-financial-results)
[https://seekingalpha.com/article/4094644-mercadolibre-meli-q...](https://seekingalpha.com/article/4094644-mercadolibre-meli-q2-2017-results-earnings-call-transcript)

New Relic:-
Q1 EPS of -$0.09 (+55% Y/Y) beats by $0.04
Revenue of $80.1M (+36.7% Y/Y) beats by $2.01M
Good top line movement but continues to tail off, bottom line seems to be plateauing over the last few Qs. The slides show an interesting customer case study of Ryanair.
[https://seekingalpha.com/pr/16906717-new-relic-announces-fir...](https://seekingalpha.com/pr/16906717-new-relic-announces-first-quarter-fiscal-year-2018-results)
[https://seekingalpha.com/article/4094565-new-relic-2018-q1-r...](https://seekingalpha.com/article/4094565-new-relic-2018-q1-results-earnings-call-slides)
[https://seekingalpha.com/article/4094687-new-relics-newr-ceo...](https://seekingalpha.com/article/4094687-new-relics-newr-ceo-lewis-cirne-q1-2018-results-earnings-call-transcript)

Talend:-
Q2 EPS of -$0.20 (+85% Y/Y) beats by $0.02
Revenue of $35.8M (+41.1% Y/Y) beats by $0.53M
Continues to sustain constant 40%+ growth top line but bottom line progress stalling.
[https://seekingalpha.com/pr/16906806-talend-reports-second-q...](https://seekingalpha.com/pr/16906806-talend-reports-second-quarter-2017-financial-results)

Ubiquiti:-
Q4 EPS of $0.75 (+8.7% Y/Y) beats by $0.01
Revenue of $228.6M (+23.1% Y/Y) beats by $7.93M
It's a beat on both ends and the guidance is a combination of beat and destroy.  The earnings call is one of the most impenetrable disjointed transcripts I've ever tried to read.  Not sure if it was the reporting and compiling or the reality.
[https://seekingalpha.com/pr/16905925-ubiquiti-networks-repor...](https://seekingalpha.com/pr/16905925-ubiquiti-networks-reports-preliminary-fourth-quarter-fiscal-2017-financial-results)
[https://seekingalpha.com/article/4094445-ubiquiti-networks-u...](https://seekingalpha.com/article/4094445-ubiquiti-networks-ubnt-ceo-robert-pera-q4-2017-results-earnings-call-transcript)

Yelp:-
Q2 EPS of $0.25 (+55% Y/Y) beats by $0.28
Revenue of $208.86M (+20.4% Y/Y) beats by $3.93M
Definitely back from the brink - just when I'd taken them off my watch list they go and turn in a great quarter.
[https://seekingalpha.com/pr/16906698-yelp-reports-second-qua...](https://seekingalpha.com/pr/16906698-yelp-reports-second-quarter-2017-financial-results)

anthonyms · August 3, 2017, 10:54pm

Sorry about the formatting - not sure what happened there (I didn’t use any commands). If you either put the post on thread mode or hit reply you can read more and scroll right.

Anyhow FWIW, amongst all the monster gyrations - which is really going to hit me hard this month, I have taken money out of Mitek and SolarEdge after their respective pops and topped up SHOP and INBK who I thought had amazing results.

Nothing Scamify about Shopify - looks like the real deal with the propulsion to keep going and with one of the best business models in town. When it settled back below 100 but with another 75% growth quarter under its belt and demonstrable progress on all fronts, whilst not cheap (although the P/S has come down), it looks stronger positioned than ever.

First Internet (INBK)'s performance was absolutely incredible. The finance sector looks good right now especially with Interest Rates rising. If Nasdaq and tech does roll over, this has one of the lowest P/E and PEGs around and should find downside protection. Growth last Q was the fastest in history and they seem to have hit a rich vein in the public loan book. Check out the slides - it looks great from every angle.

A

GauchoRico · August 3, 2017, 11:43pm

Ant,

These summaries are useful. Thanks. Do you mind use tickers instead of company names? I’m not familiar with all the companies and it would be useful to see the tickers with your summary results. Thanks.

Chris

anthonyms · August 4, 2017, 12:10am

Chris - are you trying to get me into trouble with Saul? I will get scolded if I use just ticker names. What I can do which should help everyone is use both name and ticker going forwards - and that way I might not get thrown off the board to boot
Ant

Ok I need to get out more as I did this off memory, (how come I know 1000 ticker symbols but don’t know any girls phone number - no wonder I’m single)!

Here’s your glossary of tickers…

Abiomed:- ABMD
Audiocodes:- AUDC
Blackstone:- BX
Cognex:- CGNX
Criteo:- CRTO
HollyFrontier:- HFC
Hubspot:- HUBS
First Internet Bancorp:- INBK
Fortinet:- FTNT
Imperva:- IMPV
KKR:- KKR
Mitek:- MITK
Mazor:- MZOR
Mulesoft:- MULE
Paycom:- PAYC
PayPal:- PPAL
Qualys:- QLYS
SolarEdge:- SEDG
Sierra Wireless:- SWIR
Shopify:- SHOP
Square:- SQ
Tesla:- TSLA
Arista:- ANET
BlackLine:- BL
Grubhub:- GRUB
Hortonworks:- HDP
Impinj:- PI
Infinera:- INFN
MercadoLibre:- MELI
New Relic:- NEWR
Talend:- TLND
Ubiquiti:- UBNT
Yelp:- YELP

anthonyms · August 4, 2017, 12:16am

err missed a few…
CEVA:- CEVA
Regeneron:- REGN
TAL Education Systems:- TAL

One notation - PayPal is PYPL not PPAL. Just testing who’s awake and paying attention. Clearly you’re all getting your shuteye over on Stateside.
Ant

utahchris · August 4, 2017, 12:18am

Anthony,

Re: INBK, I like their numbers too but I get concerned about a story I’m telling myself about exposure to loans for retail. I mean, how many retail businesses are going to fail in the next 3 years as Amazon continues to eat their lunches? And what will happen to the value of the underlying retail property that is collateral? We had a similar discussion a few months ago re: SBNY and NYC retail, but I think it’s not unique to large metros.

Here is what I see on the books for INBK:

							30-Jun-17	
						Amount		Percent	
COMMERCIAL LOANS						
Commercial and industrial		$	110,379		6.5	%
Owner-occupied commercial real estate		66,952		4	%
Investor commercial real estate			10,062		0.6	%
Construction					45,931		2.7	%
Single tenant lease financing			747,790		44	%
Public finance					179,873		10.6	%
Total commercial loans				1,160,987	68.4	%
						
CONSUMER LOANS						
Residential mortgage				292,997		17.3	%
Home equity					33,312		2	%
Trailers					94,036		5.5	%
Recreational vehicles				63,514		3.7	%
Other consumer loans				51,052		3	%
Total consumer loans				534,911		31.5	%
						
Net deferred loan fees, premiums and discounts	2,523		0.1	%
Total loans				$	1,698,421		100	%

I assume that $750m of “single tenant lease financing” is in large part retail, right? I’ve read the press release but not their annual report recently.

I don’t think this scenario is certain but it is a risk. Do you share this concern or think it overblown? Thanks/Cheers.

anthonyms · August 4, 2017, 12:49am

Hi UtahChris

Good question and a very valid concern. I actually didn’t necessary assume this was all retail per se. If it is then that’s a legitimate concern either from an amazonification threat or from a potential recession.

I actually took this to be a mix across office, retail, sole-trader type operations. I guess another question is whether these are hell and high water bound arrangements or triple net lease arrangements etc.

It’s certainly something to watch but I feel better about First Internet Bancorp (INBK) than I did about Bank of Internet (BOFI), Mitek (MITK) or Lending Club (LC) - which is not to say they are risk free.

Cheers
Ant
ps Are you from Utah? As a skier, I love your State slogan - “The Greatest SNOW on Earth”! The landscape over there is so phenomenal. The greatest 8 days of my life involved a loop from Vegas down Route 66 to Flagstaff, over to Monument Valley and Grand Canyon and up and back through Bryce Canyon/Zion back to Vegas. The Highway drive through Utah is an all time great especially during Fall. Seem to remember a killer radio station called something like Eagle FM.

anthonyms · August 4, 2017, 1:36am

Seem to remember a killer radio station called something like Eagle FM.
Could have been Hawk FM - it was 20 years ago and I didn’t store it in my long term flash memory banks and wherever I did store it has probably been compromised by too little sleep, too much drink and not enough Sudoku in the meantime.
BTW no disrespect to anyone else’s State. They’re all fantastic and together they amount to the most beautiful country on the planet hands down.
Ant

stenlis · August 4, 2017, 4:24am

Great post anthonyms, thanks for adding all the links!

You mention the P/E being too high by a couple of the companies. I don’t think it’s that high when they have very low earnings. If a company hit 0 earnings, theoretically the P/E would be infinite. Anything close to 0 earnings is just bound to have a high P/E.

anthonyms · August 4, 2017, 9:38am

You mention the P/E being too high by a couple of the companies. I don’t think it’s that high when they have very low earnings. If a company hit 0 earnings, theoretically the P/E would be infinite. Anything close to 0 earnings is just bound to have a high P/E.

Good point Stenlis. Basically I would prefer a lower P/E than higher P/E but I guess I would excuse a young, newly profitable company which as you say could be meaningless at the crossover point, however I would be concerned if:

The company wasn’t that new and/or had been hovering around breakeven for a while (e.g. CTrip vs Regeneron)
Was not still growing extremely fast - to achieve escape velocity (e.g. Sierra Wireless or SolarEdge vs Abiomed)
Was not exhibiting operating leverage - where top line gains should drop straight to the bottom line which if not the case is no defence of a young crossover company as it basically means it’s margin on a full year basis is static and not going to improve (e.g. Mitek vs Qualys or PayPal or Fortinet).

Ant

foodles · August 4, 2017, 10:47am

(OT post for anyone that doesn’t want to read, turn back now)

Ant,

The landscape over there is so phenomenal. The greatest 8 days of my life involved a loop from Vegas down Route 66 to Flagstaff, over to Monument Valley and Grand Canyon and up and back through Bryce Canyon/Zion back to Vegas. The Highway drive through Utah is an all time great especially during Fall.

I love that area, have just purchased a vacation/investment home in Zion, can’t wait to get to know the area better!

SaulR80683 · August 5, 2017, 10:46am

These summaries are useful. Thanks. Do you mind use tickers instead of company names? I’m not familiar with all the companies and it would be useful to see the tickers with your summary results. Thanks.

My God, No! If you don’t know the company the tickers are just a bunch of nonsense letters. If someone has to have tickers, please don’t remove the names, just add the tickers!

Thanks

Saul

buynholdisdead · August 5, 2017, 11:13am

I think both are useful Saul. Sometimes with a name you have a hard time finding the ticker.

Andy

mauser96 · August 5, 2017, 11:51am

Use the name when you referring to the company, use the ticker symbol when referring to the stock. For instance the outlook for Tesla the company might be very different from the outlook for TSLA the stock When first bringing them up use both like this Tesla (TSLA)

anthonyms · August 7, 2017, 10:52pm

A few additions guys…

Amazon (AMZN):-
Q2 EPS of $0.40 may not be comparable to consensus of $1.42
Revenue of $38B (+25.0% Y/Y) beats by $820M
Still growing nicely and consolidating value chains whilst entering new markets and new sectors. Abandoning profit focus may frustrate investors though and play into the hands of anti-trust regulators who could see anti competitive cross subsidising of business.
https://seekingalpha.com/pr/16899231-amazon-com-announces-se…
https://seekingalpha.com/article/4091635-amazon-com-amzn-q2-…
https://seekingalpha.com/article/4092256-amazon-com-inc-2017…

LendingClub (LC):-
Q2 EPS of -$0.01 (+89% Y/Y) in-line
Revenue of $139.6M (+35.0% Y/Y) beats by $3.19M
An in line plus beat plus re-assuring guidance. This was their easier YoY compare but they did better than I thought they would (I sold my stake going into earnings).
https://seekingalpha.com/pr/16908667-lendingclub-reports-sec…
https://seekingalpha.com/article/4096111-lendingclub-corps-l…

Twilio (TWLO):-
Q2 EPS of -$0.05 (+37.5% Y/Y) beats by $0.06
Revenue of $95.87M (+48.6% Y/Y) beats by $9.63M
Good customer addition numbers, good revenue growth beyond the Uber account. Uber decline to start next month.
https://seekingalpha.com/news/3286461-twilio-beats-q2-guidan…
https://seekingalpha.com/pr/16908691-twilio-announces-second…
https://seekingalpha.com/pr/16908691-twilio-announces-second…

Wix (WIX):-
Q2 EPS of $0.00 (from -0.09 Y/Y) misses by $0.09
Revenue of $103.52M (+50.6% Y/Y) beats by $1.56M
Good numbers maintaining a consistent 50% growth rate, still needs to demonstrate operating leverage from its promotional budget.
https://seekingalpha.com/pr/16899219-wix-reports-strong-seco…
https://seekingalpha.com/article/4092348-wix-coms-wix-ceo-av…

anthonyms · August 25, 2017, 3:11am

Adding a few more to the compendium…

Applied Optical (AAOI):-
Q2 EPS of $1.54 (+ ~10x) beats by $0.22
Revenue of $117.4M (+112.5% Y/Y) beats by $1.1M
Astonishing - wish I had the nerve and foresight for hardware like this an ANET.
https://seekingalpha.com/news/3285596-applied-optoelectronic…
https://seekingalpha.com/pr/16906625-applied-optoelectronics…

Alarm (ALRM):-
Q1 EPS of $0.23 (+100%) beats by $0.08
Revenue of $74.19M (+25.7% Y/Y) beats by $4.32M
Not sure how niched this is and whether it will hit an uptake barrier like Silver Spring Networks or maintain a moat versus Google or Apple or Amazon home systems. Also a P/E of 111 sounds high and unlucky. The EPS hasn’t been growing 100% every Q and the top line is only expanding at 25% admittedly consistently.
https://seekingalpha.com/pr/16827359-alarm-com-reports-first…
https://seekingalpha.com/article/4072967-alarm-coms-alrm-ceo…

Baozun (BZUN):-
Q2 EPS of $0.11 (+450%) beats by $0.01
Revenue of $131.03M (+24.9% Y/Y) beats by $0.35M
At first this looked disappointing but when I looked at the compares and also the forecast growth it looks good even if not as appealing as SHOP which it is often compared to. Services growing >50% rate.
https://seekingalpha.com/news/3290831-baozun-beats-0_01-beat…
https://seekingalpha.com/pr/16920394-baozun-announces-second…

Pure Storage (PSTG):-
Q2 EPS of -$0.11 (up from -$0.16) beats by $0.04
Revenue of $224.5M (+37.6% Y/Y) beats by $5.86M
It is a beat beat and raise with top line reaccelerating and margin improving. Q3 guidance sees margin almost reaching breakeven. Cash flow looking good. The best pure play storage growth rate around although to be fair NetApp’s all flash growth was higher but it is weighed down by the legacy business drag.
https://seekingalpha.com/article/4101813-pure-storages-pstg-…
https://seekingalpha.com/pr/16923762-pure-storage-announces-…
https://seekingalpha.com/article/4101814-pure-storage-2018-q…

Splunk (SPLK):-
Q2 EPS of $0.08 (+60%) beats by $0.02
Revenue of $279.96M (+31.6% Y/Y) beats by $11.45M
Another beat beat and raise. Kept the growth up above 30% and actually increased.
https://seekingalpha.com/pr/16923756-splunk-inc-announces-fi…
https://seekingalpha.com/news/3291698-splunk-beats-q2-estima…
https://seekingalpha.com/article/4101807-splunks-splk-ceo-do…

VMWare (VMW):-
Q2 EPS of $1.19 beats by $0.04
Revenue of $1.9B (+12.4% Y/Y) beats by $20M
Nothing here to make me regret selling in favour of Pure, Box and a view to Nutanix.
https://seekingalpha.com/pr/16923805-vmware-reports-fiscal-2…
https://seekingalpha.com/article/4101801-vmware-inc-2018-q2-…