while total users and monthly active users are still growing rapidly the growth rates are actually down significantly from last quarter (total users at 64% vs. 76% qoq and MAU 37% vs. 45% qoq)
The paid downloads number looks even worse as it is down 17% qoq (500k vs. 600k) and just flat from last year.
Accordingly revenue guidance is below analyst expectations.
Despite the stock trading near post-ipo lows I would still lean to the short side here as the key metrics are simply disappointing. Management will have a hard time on the conference call.
Clearly one of the bigger beats the company has delivered in the most recent past. Guidance looks equally impressive. Great cash flow.
PC user metrics continue to decline (as expected) but the search business growth looks very healthy and mobile seems to do pretty well, too.
Given the numbers and the guidance I would expect some positive analysts commentary tomorrow but at the same time some price target reductions given the new valuation reality for growth stocks these days.
Would buy the shares.
unfortunately the problem isn't revenue guidance or eps - it is all about the disappointing user and download metrics which show a significant deceleration of the business and in terms of paid downloads even a sizeable decrease.
admittedly this makes the revenue beat far less impressive and casts a shadow over the Q1 guidance as there will be most likely even more inorganic revenue growth included
but even if backing out these acquired revenue streams the company still beat nicely and guidance still looks strong
still view the shares as a good opportunity over the long term but today they might turn negative given the issues raised on the conference call
would lean to the short side at least for today here - this might turn negative as analysts and shortsellers will point to acquired revenue growth which was masked as organic
as a long term investor I wouldn't care about this issue as this is the normal course of business. Even without the boost from acquired revenues the company beat expectations by a wide margin.
But highly valued high growth stocks are having a difficult time in the market these days (for another example look at KORS this morning) so this will likely get sold quite heavily today.
while my initial purchase at $26.50 clearly was way too early I was able to average down nicely last week and now sitting firmly on a huge number of shares. Today the stock is already reclaiming my initial purchase price and looks poised to move back above the $29 secondary price as early as next week.
Recent comments from Trina Solar on its earnings conference call bode very well for Daqo as Trina management forecasted some upward pressure to polysilicon prices going forward.
still looking for $35 at the end of next month
sure - especially compared to CSUN which clearly is one of the worst picks (actually it is the worst) in the Chinese solar market.
Market cap: 51 mln, Q1 revenues of $61 mln (down 50% qoq)
The company continues to accumulate significant losses as it doesn't have the scale and cost structure to compete successfully with its much larger peers. Gross margins are just barely positive resulting in a highly negative operating margin. The company faces liquidity and credit availability constraints which further hampen the company's potential to catch up with its peers. Net debt is around $400 mln. The poor performance is reflected in the share price. I would expect the company to go out of business sooner or later.
Market cap: $300 mln (including the recent capital raise, Q1 revenues of $42 mln
Net debt: $180 mln (including the recent capital raise)
Company delivered solidly profitable Q1 revenues and given the ongoing cost reductions and the polysilicon price development the results will only get better going forward. Even better the company is currently working on doubling its polysilicon production capacity which could easily lead to the company doubling its expected earnings going forward.
I am looking for $2 in earnings in FY14 and up to $4 in FY16 which makes the shares still look like a steal at current levels.
which shouldn't be a concern for investors as the stock is climbing to 33-month-highs in morning trading. Analysts mostly hate the company due to its position in a highly competitive industry, ongoing margin concerns and the ongoing risk of losing its largest customer (Apple). Despite all this the company has executed very well in the most recent past and I would expect them to continue to do so going forward.
The company has $8 in cash (and another $5 in fast moving inventories) so the real enterprise value is a fraction of the current $1.25 bln market cap.
Given the successful recent execution history I think analysts are still way too pessimistic about the company's ability to compete going forward. And while gross margins might not expand as much as analysts would like net margins will most likely be stable at least leading to the company generating superior cash flows.
The stock simply is a steal at current levels - would expect FY15 earnings to come in at over $2 with even more potential in FY16
cautious margin commentary from management on the call, a downgrade by William Blair and some additional cautious analyst commentary are contributing to today's muted reaction
there were no "new" news out. The deal was announced 10 days ago and common shareholders again suffered brutal potential dilution from the new financing. The company remains uninvestable given the continued substantial dilution of the common shareholder base.
the problem is that the common stock holders really don't own much of the company (if anything at all) as a brutal string of dilutive financings has basically exproprieated common shareholders.
company will miss Q2 revenue expectations by a mile given the press release statement for mid 50 mln revenue levels to be reached in the second half of 2014. Backlog up just marginally. Huge cash burn. Sell.
unfortunately the numbers are moving in the wrong direction. Growth continues to slow down and in fact the company delivered the lightest quarterly eps beat since going public. Guidance just in line. I don't get why the shares are trading in the mid 20s.
except for a slight rise in backlog I really can't find anything positive in the report. Quarterly numbers were even weaker than investor's were already used to and the expected Q2 revenue levels will now be reached later in the year. Brutal cash burn.