CME Group Surges 40% in a Year: What's Driving the Stock?
Alarm.com Holdings, Inc. ALRM reported adjusted fourth-quarter 2017 earnings of 26 cents per share, surpassing the Zacks Consensus Estimate of 24 cents.
During the quarter, the company enlarged its portfolio of video cameras to tap a wide range of commercial customers. It expanded its platform to intensify customer engagement and retention. The company unveiled a new smart thermostat that combines cloud-intelligence with more advanced device hardware. This will broaden the range of systems with which Alarm.com can integrate.
The company also partnered with Rheem, a leading global manufacturer of heating, cooling and water heating equipment. The deal will expand the roster of smart energy devices that utilities can control and manage at scale through EnergyHub’s Mercury 3.0 platform.
In addition, Alarm.com also appointed Michelle K. Lee to its board of directors.
Notably, on a 12-month basis, the company's shares have gained 25.8%, outperforming the industry’s loss of 26.4%.
Alarm.com reported total net revenues of $88.8 million in the fourth quarter, reflecting a decrease of 2% sequentially but an increase of 27.2% year over year. The year-over-year increase was driven by strength in both the revenue segments.
Also, revenues surpassed the Zacks Consensus Estimate of $83 million.
SaaS and license revenues: Revenues in this segment increased 39.1% from the prior-year quarter to $65.2 million. It accounted for 74% of the fourth-quarter revenues.
Hardware and other: Revenues in this segment increased 3% year over year to $23.6 million and contributed the remaining 26% of total revenues. This increase was driven by strong sales of video cameras that were introduced in the third quarter.
Gross margin was 68.6%, up 690 bps from the year-ago quarter. The increase was driven by a favorable mix and higher revenues.
Alarm.com’s operating expenses of $43.4 million increased 16.3% year over year. The operating income was $12.6 million compared with $4.2 million in the year-ago quarter.
Also, non-GAAP adjusted EBITDA increased to $22.2 million in the fourth quarter, reflecting an increase of 56% from the prior-year quarter.
GAAP net income was $0.3 million or 1 cent per share compared with $3 million or 6 cents in the year-ago quarter.
Balance Sheet & Cash Flow
Alarm.com exited the quarter with cash and cash equivalents of roughly $96.3 million, up from $84.6 million in the prior quarter. Accounts receivables were $40.6 million, slightly down from $41.2 million in the last quarter.
The company’s debt balance was $71 million in the fourth quarter, down from $72 million in the prior quarter.
For the upcoming first quarter, the company expects SaaS and license revenues to be in the range of $66.9-$67.1 million.
For full-year 2018, management expects its SaaS and license revenues to be within $282.5-$283 million. Also, the company expects total revenues in the range of $380-$382 million. For 2018, the Zacks Consensus Estimate is pegged at $382.2 million.
For 2018, non-GAAP adjusted earnings per share are expected within $1.12-$1.14. The Zacks Consensus Estimate is pegged at 96 cents.
Alarm.com Holdings, Inc. Price, Consensus and EPS Surprise
Alarm.com Holdings, Inc. Price, Consensus and EPS Surprise | Alarm.com Holdings, Inc. Quote
Zacks Rank & Other Key Picks
Alarm.com has a Zacks Rank #2 (Buy). A few better-ranked stocks in the technology sector are PetMed Express PETS, Teradyne TER and Brady Corporation BRC. While PetMed and Teradyne sport a Zacks Rank #1 (Strong Buy), Brady Corporationcarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings per share growth rate for PetMed, Teradyne and Brady Corporationis projected to be 10%, 12% and 7.5%, respectively.
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