The firm leaves Q4 2012 estimates unchanged, but lower our 2013 revenue and adjusted EBITDA estimates 5% and 13% to $337MM and $80MM respectively, while non-GAAP EPS falls to $0.61.
This is unreal. Cut in half and will make .61/share.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I read the Motley Fool article. Those guys are clowns. They never really say anything....except the same thing time and time again.
AND seriously - had ANYONE ever heard of little analyst that did the big down grade? I haven't.
The facts are Wells Fargo cut Velti's revs by 5% and ebitda by 13% for the year. Leaving $337 million in revs and $80 mil in ebitda.
Everything else you read is just garbage.
Show me another company with the even the revised growth rate of Velti with little debt, meaningful free cash flow and revs growing at 30% plus -- EVEN AFTER the revised numbers.
Kind of like this story.
So assuming Wells Fargo is accuarate, the firm is assigning VELT a forward, 2014 PE of 6. I wonder how many other stocks with a forward PE of 6 would get a "neutral" rating from Wells Fargo.
Either Wells Fargo is a very tough grader, or the firm is lending cover to VELT short-sellers who are friends of Wells Fargo. This is ridiculous even for sell-side analysts.
Sentiment: Strong Buy
How many would kill to have a business with $80,000,000 in EBITDA and $337,000,000 in revenues ?? AND .61 cents in EPS.
Just sounds ridiculous this thing is trading like this.
$80,000,000 in EBITDA on $337,000,000 in revs.
AND that is the "slow year"....2013.
I about choked when I read the Wells Fargo report - which you can see a synopsis of it on street insider.
Thought I would see something horrific and just set there in disbelief --- they dropped earnings by a fricken 3 cents and lowered rev estimates by 5%. at $337,000,000 in revs the growth is still phenomenal --- its a VERY good number for any other company.
This is pullback is bogus.
It makes zero sense.
Raymond James reiterated an OutPerform and $8.
And Wells Fargo cuts 2013 earnings by .03 per share and EBITDA by 13%.
In the scope of things - neither is a big deal. Even with the reduced numbers it is priced as if it is going out of business.
And yet in each of the analyst reports all they talk about is the bell shaped curve of growth sitting smack infront of these guys.