BZH = Reports Q4 revenue $781.7M, estimates were for $777.55M. Reports Q4: adjusted EBITDA down 8.9% at $82.1M; homebuilding gross margin 15.2%, down 210 basis points; Unit orders up 11.7% at 1,458; Backlog up 5.9% at $665.1M. CEO Allan Merrill says: “We finished fiscal 2019 with a strong fourth quarter, positioning us for growth in revenue, profitability and returns in the coming year. Operational improvements in sales pace, community count and gross margins reflected the decisive actions we took to combat challenging market conditions in the first and second quarters. We also made improvements to our balance sheet during the year.”
Beazer Homes announced its newest community, Windrow at The Cove, with homes starting from the low $400,000s. The grand opening will be held Saturday, November 16 from 11 a.m. to 2 p.m. The festivities will feature tours of beautiful model homes, gourmet catering, desserts, and refreshments in the 80-acre master-plan community under development in Sacramento. Providing an amenity-rich lifestyle, The Cove features four distinct neighborhoods, each with architectural highlights and intelligent design. This master-plan will be home to 590 residences, offering trendy single-family and townhome living.
Windrow is the second neighborhood to open at The Cove, featuring detached homes with approximately 1,567 to 1,960 square feet, with three bedrooms, two and a half baths, and two-car garages. Windrow residences are alley loaded floorplans with open living rooms off gourmet kitchens, covered patios for entertaining, and exteriors which showcase urban charm and earthy textures in various color choices. The streetscape is reminiscent of historical California neighborhoods with uninterrupted pathways blending into the landscape.
“Windrow was designed as an ideal location for first-time buyers, young professionals, or for buyers looking to make things a little simpler. It’s less than three miles from downtown and provides easy access to the Bay Area, Napa and South Lake Tahoe,” said Laura Stickelman, Sacramento division president. “The Cove will bring much needed housing to this area of Sacramento and residents will enjoy a unique lifestyle that combines downtown living with a suburban lifestyle.”
The hub of the community is Cornerstone, an exclusive clubhouse with a state-of-the-art fitness room, multi-purpose lounge, an outside living area with fireplace, and a junior Olympic-size pool. Connected by walking and bike trails in and around the community, Cornerstone is adjacent to an upcoming public neighborhood park with play area, covered seating, and a half-court basketball court.
With the addition of this parcel to Beazer’s land portfolio, the Company now has ten communities in various stages of development across the Northern California metro area.
Windrow at The Cove is located at West El Camino and Orchard Lane just north of downtown Sacramento.
ASTC = Astrotech Corporation (NASDAQ: ASTC) reported its financial results for the first quarter of fiscal year 2020, which ended September 30, 2019.
The beginning of fiscal 2020 has been pivotal for the Company’s development of its mass spectrometry technology. 1st Detect completed numerous domestic and international product demonstrations and field trials where the TRACER 1000™ outperformed antiquated ion mobility spectrometry (IMS) based explosives trace detectors (ETDs). Among these demonstrations was a field trial with Finavia, one of the world’s leading airport operators. The Finavia case study is available on our website at https://www.1stdetect.com/finavia-cs/ and further demonstrates that the TRACER 1000 outperforms IMS-ETDs. The TRACER 1000 does not confuse common household products with explosives, has a virtually unlimited threat library, and delivers near 100% up-time. IMS-ETDs, in contrast, are hampered by high false alarms, have a limited threat library, and exhibit significant down-time.
The Company also launched Agriculture Technology Corporation (AG-TECH) and introduced the AG-LAB-1000™ series of mass spectrometers to address the needs of the agriculture market. With minimal additional R&D required, this introduction was largely in response to a growing concern in the hemp and cannabis market regarding the detection of pesticides in the field or greenhouse. We believe there are currently no other ruggedized instruments that can detect pesticides in the field at parts per billion (ppb) in real-time.
First Quarter Fiscal Year 2020 Financial Highlights
Management continues efforts to optimize our resources while reducing cost and adding financial flexibility.
- Operating expenses decreased $190 thousand, or 8.5%, during the first quarter of fiscal 2020, compared to the first quarter of fiscal 2019, due to an ongoing emphasis on cost reduction.
- Monthly cash burn for this quarter has been reduced to approximately $610 thousand, an 19.9% reduction from our cash burn rate in the first quarter of fiscal year 2019.
- In September 2019, Astrotech completed an investment from its Chairman and CEO of a $1.5 million secured promissory note.
On November 14, 2019, ASTC 1st Detect subsidiary announced today that it was selected by the U.S. Department of Homeland Security (DHS) Transportation Security Administration (TSA) to conduct live screening with the TRACER 1000™ at Miami International Airport. The invitation was in response to the TSA Innovation Task Force (ITF) Innovative Demonstrations for Enterprise Advancement (IDEA) Broad Agency Announcement (BAA).
The ITF works in partnership with airports, airlines, and industry partners to foster innovation in aviation security. It was created to help find and deploy the very best technology for increasing security and improving the passenger experience. The ITF enables accelerated productization of innovative new technologies by deploying products in real-world environments and allowing for the collection of valuable operational field data and feedback.
“We are excited to be part of TSA’s ITF program that introduces cutting edge technologies to live environments in the United States. This testing will help us further refine our product as we continue through the TSA certification and qualification process,” stated Raj Mellacheruvu, Chief Executive Officer of 1st Detect. “Much like their counterparts the world over, we are confident that the security personnel at Miami International Airport will be pleased with the ability of the Tracer 1000 to detect explosives with near-zero false alarms, its low cost of ownership, and its near 100% operational uptime.”
HROW = Reports Q3 revenue $12.76M, consensus $12.85M. Mark Baum, CEO of Harrow Health, commented, “The third quarter of 2019 brought new records for our core ophthalmology business, as well as record high gross margins and Adjusted EBITDA. We’ve resolved various legal matters, normalized our cost structure, and completed the restructuring of our pharmaceutical compounding business, which is now sustainably profitable, setting the stage for our march towards our $100 million revenue run rate target in 2021 and 70% gross margins – which should produce about $1 per share of annualized adjusted earnings. All of these items and more, along with our plans in 2020, are elaborated on in our Letter to Stockholders.”
DDS = Dillard’s announced operating results for the 13 and 39 weeks ended November 2, 2019. This release contains certain forward-looking statements.
Highlights of the Third Quarter:
- Net income of $5.5 million compared to net income of $7.4 million for the prior year third quarter
- Earnings per share of $0.22 compared to $0.27
- Flat comparable store sales against a 3% increase in prior year third quarter
- Retail gross margin improved 13 basis points of sales
- Inventory level decreased 4%
- Operating expenses were $418.1 million compared to $418.9 million
- Share repurchase of $35.2 million
Highlights of the 39 Weeks:
- Net income of $43.4 million compared to net income of $85.1 million for the prior year 39-week period
- Earnings per share of $1.69 compared to $3.08
- Flat comparable store sales against a 2% increase in prior year 39-week period
- Retail gross margin declined 148 basis points of sales
- Operating expenses were $1,232.4 million compared to $1,233.1 million
- Share repurchase of $101.5 million
- Dillard’s Chief Executive Officer William T. Dillard, II, stated, “While we were not satisfied with the third quarter, it was a substantial improvement over the second quarter. We were pleased with our retail gross margin improvement (13 basis points) following a second quarter decline of 319 basis points. We managed inventory to a 4% decrease from flat at the end of the second quarter. Our flat comparable sales performance improved from the 2% second quarter sales decline.”
Third Quarter Results
Dillard’s reported net income for the 13 weeks ended November 2, 2019 of $5.5 million, or $0.22 per share, compared to net income of $7.4 million, or $0.27 per share, for the prior year third quarter. Included in net income for the 13 weeks ended November 2, 2019 is a pretax loss of $0.3 million ($0.2 million after tax or $0.01 per share) primarily related to the sale of a store property. Also included in net income for the 13-week period is $2.8 million ($0.11 per share) in tax benefits related to amended state tax return filings.
Included in net income for the 13-week period ended November 3, 2018 is $2.9 million ($0.11 per share) in tax benefits related to additional federal tax credits and an update of the provisional amounts recorded for the income tax effects of the Tax Cuts and Jobs Act of 2017.
Net sales for the 13 weeks ended November 2, 2019 and the 13 weeks ended November 3, 2018 were $1.388 billion and $1.419 billion, respectively. Net sales includes the operations of the Company’s construction business, CDI Contractors, LLC.
Total merchandise sales (which excludes CDI) for the 13-week period ended November 2, 2019 and the 13-week period ended November 3, 2018 were $1.334 billion and $1.342 billion, respectively. Total merchandise sales decreased 1% for the 13-week period ended November 2, 2019. Sales in comparable stores for the period remained unchanged on a percentage basis. Sales were strongest in the Eastern region followed by the Western and Central regions, respectively.
NTAP = Reports Q2 revenue $1.37B, consensus $1.38B. “Our Q2 FY20 results reflect the strength of our business model and value of our innovation. We delivered gross margin, operating margin, and EPS all solidly ahead of our guidance ranges. We are delivering real business value to customers’ hybrid multicloud environments increasing our strategic relevance and enabling us to reach new buyers, address new workloads and expand our presence with existing customers,” said George Kurian, chief executive officer. “We continue to be disciplined in our spending and have a strong financial model with growing gross margins and operating margins that enable us to return cash to shareholders and invest in the long-term health of our business.”
Credit Suisse analyst Matthew Cabral raised his price target for NetApp to $70 from $60 following the company’s Q2 results, saying NetApp is beginning to show signs of recovery following a “difficult” start to the fiscal year. Cabral tells investors in a research note that he is increasingly optimistic that the worst is behind us for NetApp, with Q2 a critical first step on the path to recovery as Street EPS looks conservative ahead, and says that longer-term, he continues to like NetApp’s all-flash mix and Data Fabric strategy. The analyst keeps an Outperform rating on the shares.
Wells Fargo analyst Aaron Rakers raised his price target for NetApp to $60 from $50 following the company’s Q2 results, saying he expects shares to remain range bound as he expects investors to question what appears to be an optimistic 2H vs. 1H revenue ramp amid a weak macroeconomic backdrop. Rakers maintains a Market Perform rating on the shares.
Maxim analyst Nehal Chokshi raised his price target on NetApp to $74 and kept his Buy rating after its Q2 earnings beat and “impressive” product gross margins. The analyst remains positive on the company as a ” differentiated hybrid cloud story” with an ongoing expected strong product margin.
Loop Capital analyst Ananda Baruah raised his price target on NetApp to $70 and kept his Buy rating after its “very solid” Q2 results with a strong earnings beat. The analyst maintains his view of the company as a “structural 5%-10% organic revenue grower” and sees his target of $4.80 in FY21 – vs. $4.56 consensus – as “very achievable”. Baruah adds that when NetApp returns to mid-single-digit revenue growth, he sees its forward earnings multiple in 13- to 15- times range.
Lake Street analyst Eric Martinuzzi raised his price target for Hold-rated NetApp to $58 from $49 saying the company’s “generally inline” Q2 results show the company is back on track following a challenging Q1.
PSNL = Reports Q3 revenue $17.2M, consensus $15.77M. “I’m very pleased that we again achieved record quarterly revenues and grew 47% over the third quarter of last year. In September, we received a new order from the VA’s Million Veteran Program, which increased our cumulative orders received to date from the VA MVP to approximately $145 million,” said John West, Chief Executive Officer. “In addition, many of our biopharmaceutical and prospective customers are actively evaluating our new platform ImmunoID NeXT(TM) and feedback has been resoundingly positive. We continue to anticipate ramping revenue volume of the NeXT platform increasingly throughout 2020.” Personalis raises FY19 revenue view to $64.5M-$65M from $60M-$62M.
Oppenheimer analyst Kevin DeGeeter lowered his price target for Personalis to $26 from $29 following the company’s Q3 earnings report, saying the company provided the first granular guidance on how to think about growth outlook for its two operating segments. While total revenue guidance is roughly in line with his prior outlook, DeGeeter tells investors in a research note that the segment growth outlook “deviated materially” from his forecast and Street consensus. The analyst revised his outlook for revenue to $64.8M, $80.1M and $101.5M from $62.2M, $82.0M and $124.2M for 2019, 2020 and 2021, respectively, and maintains an Outperform rating.
VIAB = Reports Q4 revenue $3.43B, consensus $3.41B. Bob Bakish, Viacom President & CEO said, “Our strong performance in the fourth quarter capped off a pivotal year for Viacom and reflects the successful execution of our strategic priorities to evolve the company for the future. We achieved several important milestones. First, we grew domestic ad sales for the full year, driven by the continued acceleration of Advanced Marketing Solutions. We also grew full year domestic affiliate revenue, driven by the extended reach of Viacom’s distribution across more viewing platforms. And, for the first time in four years, we returned Paramount to full year profitability – a testament to the strength of our strategy and content slate. As we look to the future of a combined ViacomCBS, we’re thrilled with the momentum we have to create one of the world’s preeminent content companies.”
Viacom management said “the third-party demand for our content is incredible.”
Viacom says Pluto TV has about 20M MAUs. Viacom management sees Pluto TV as a global advertising opportunity. Management says digital studios had 9.6B social views in Q4. Management said VidCon expanded beyond a single event in Anaheim, CA to London and Australia, and more VidCon events will be added going forward.
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