Connect with us

BenzingaEditorial

Roku’s Earnings Exhibited Its Leadership Position

Published

on

Roku Streaming

Roku (NASDAQ:ROKU) has been given a vote of confidence a day ahead of its earnings many analysts were expecting impressive third quarter earnings. But, unlike its past seven earnings report which exhibited a blowout growth exceeding estimates, Roku’s third quarter earnings results had beat Wall Street’s expectations but still causing its stock to drop 16% in trading to close at $118.46 a share while now climbing back to $130.

Expectations Vs. Reality

Prior to its earnings report, Rosenblatt raised its price target on Roku to $159 from $134, estimating that the third-quarter earnings and guidance are set to outperform expectations. And revenue did continue soaring both on absolute as well as per-user basis.
But, Roku ended up reporting a loss of 22 cents a share, compared to 9 cents in the year-ago quarter. And along with its mixed third quarter results, investors were further discouraged by Roku’s disappointing fourth quarter guidance with a decreased outlook on profitability due to a recent acquisition and operational costs of international growth.

Overall, on October 30th, Roku announced what seemed all positive results and better than-expected third quarter revenues. Active accounts increased by 1.7 million users with the company beating revenue estimates, achieving a growth of 50% year-over-year resulting to $260.9 million. Roku even increased its revenue estimates for the fourth quarter to $396 million and to $1.11 billion for the full 2019 fiscal year, but investors seemed to focus only on the net loss.

Competition is getting fired up – but is this really a threat to Roku?

Comcast (NASDAQ:CMCSA) has launched its Xfinity Flex streaming box with Martin Luther King Jr.’s daughter accusing the company of trying to “dismantle” the Civil Rights Act of 1866, as the company heads to US Supreme court, among many other regulatory pressures calling for the company to be broken up by US Rep. Bobby Rush (D—Ill.).

Facebook (NASDAQ:FB) launched its Portal TV streaming device along with an experimental news content section to prevent its users going to other news sites. For years now, the company has been quietly changing its algorithms and enhancing its content, up to the point of ‘cloning’ Snap Inc’s (NYSE:SNAP) Snapchat’s features to appeal to the Generation Z users.

Apple’s (NASDAQ:AAPL) up and coming services have enabled the company to hit an all-time-high with a revenue of record $64 billion, despite a slump in its iPhone sales which were always the main trigger behind its revenues. So, Apple’s strategy of shifting away from hardware to subscription services definitely seems to be working. Moreover, Roku just announced that its updated mobile app can work on the Apple Watch, turning it into a device capable of much more than just switching channels.

The Walt Disney Company’s (NYSE:DIS) Disney+ is available on both Roku streaming devices and Roku TV so family-friendly content in the form of hundreds of films and thousands of TV episodes not just from Disney but also from Marvel, Star Wars, Pixar, National Geographic will all be available to Roku users.

So overall, Roku is on the winning side as a distributor since it gets revenue from Apple as well as Disney and Netflix (NASDAQ:NFLX). And it is no wonder many analysts believe that Roku will continue benefiting materially from all this competitive activity and perhaps even outperform its fourth quarter guidance. Comparing to Netflix’s most expensive streaming package, Roku’s average revenue per user over the trailing 12 months is 40% higher. Moreover, current trends indicate there’s still plenty of upside left for Roku to further boost its performance.
Overall, Roku remains on its enviable throne being a top distributor and growing with its ‘so-called’ competitors. Roku still has a unique position on the market thanks to its unique business model – a rare one where everyone wins.

Outlook

Many analysts expect that it will be challenging for Roku to make a profit in the upcoming few years due to the company’s costly international expansion during which it will also have to compete for TV licensing contracts. But, Roku has positioned itself to be a key benefactor of the shift from traditional TV to streaming. And just like the previous time its stock dropped due to unnecessary panic, many analysts and investor still seem blindsided to the fact that this is one rare company that is flourishing in a relatively safe position despite the storm around it. So, Wall Street’s post-earnings reaction seems to be purely based on the company’s reduced outlook on profitability as the company targeted an adjusted EBITDA of $30 million for the fiscal year despite the $35 million expected. And considering this decision was taken as the company will be focused on investing in sustained growth, this does not seem as a sign of an underlying problem, especially since its stock has soared almost 400% since January, and ended this quarter with an even improved Q4 revenue outlook. Roku’s platform business which grew by more than half is just one of its strengths that will enable the company not just to survive the streaming wars but to emerge as one of the key providers of the future of television.

This article is contributed by IAMNewswire.com. It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com
Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

Plugging Into the Future

Published

on

Tesla Electric Vehicles

BNEF predicts that by 2040 EV sales will rise to nearly 60% of the global auto market. That is quite a difference compared to 2010, when annual sales were close to zero. With consumer becoming more aware and conscious, along with favorable market forces that are gaining momentum, EVs are quickly becoming the future of the automotive industry with many EV companies showing massive growth potential.

e-tractors

Ideanomics (NASDAQ: IDEX). has acquired 15% of California-based Solectrac, Inc. for $1.3 million, its very first US-based OEM, Solectrac develops, assembles and distributes 100% battery-powered electric tractors for agriculture and utility operations. With this investment in Solectrac, Ideanomics expands its global footprint in the EV industry through specialty commercial vehicles. Moreover, Ideanomics gained a seat on Solectrac’s Board of Directors. This opportunity will give Ideanmoics access to the global agricultural tractor market that is poised for rapid growth, although currently valued at $75 billion. The time has come to say goodbye to diesel tractors.

Solar powered EVs

Besides recently forming an agreement with Atlis Motor Vehicles, Worksport (OTC: WKSP) has announced today to engage Thermal Technology Services Canada to test the Company’s groundbreaking TerraVis™ solar panel technology and increase its efficiency. Increases in product efficiency of even a few per cent can make all the difference when it comes to the performance of an electric vehicle. Each additional mile counts and Worksport is set to deliver the most advanced product with solar technology, from which the technologically advanced and eagerly-anticipated for Atlis XT electric pickup truck can greatly benefit.

Traditional automakers are not wasting any time

General Motors (NYSE: GM) revived the Hummer for the 2022 GMC Hummer EV, a fully electric truck that is expected to arrive in dealership next year. Last week, GM unveiled its “Factory Zero” as it gave a new life to its Detroit-Hamtramck assembly plant. The new GMC Hummer EV electric truck will be built in this all-electric factory, accompanied by the Cruise Origin, a self-driving EV designed by GM and Honda (NYSE: HMC). Last month, Ford (NYSE: F) also announced plans for a new factory at its large Rouge site in Dearborn, Michigan, that will build it’s the all-electric version of its legendary F-150 pickups.

New entrants are upping their game

Northeast Ohio-based Lordstown Motors (NASDAQ: RIDE), which purchased GM’s former Lordstown Assembly Complex and DiamondPeak Holdings Corp. (NASDAQ: DHPC), a special purpose acquisition company, completed a merger that makes the EV startup a publicly traded company, effective Monday. The deal gives Lordstown the financing it needs to start production of its electric Endurance truck. It aims to deliver its truck by next September, the same time Rivian Automotive Inc., Tesla Inc.(NASDAQ: TSLA) and General Motors Co. plan to launch their own electric truck candidates.

Outlook

On Thursday, during the last presidential debate, former Vice President Joe Biden pledged to shift the U.S. economy away from oil. This goal is impossible to reach without a wider EV adoption as road transport accounted for almost 70% of America’s oil consumption in 2019. Therefore, market forces and green government policies can only accelerate the EV revolution, both in the United States and around the world, with Europe already being well on that path. A cleaner tomorrow where we will no longer have to choose between performance, economy and environmental sustainability is well underway.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

Continue Reading

BenzingaEditorial

Solar Energy Is on Track To Become the New Energy King

Published

on

Solar Stocks and Corona Virus

When COVID-19 started its relentless march across the globe in March, there was some concern that it would put the solar industry to a halt. This fear was derived from the fact that residential solar sales are usually sold door-to-door as well as plant closures and increasing pandemic-related costs. But this scenario did not play out. In fact, the construction industry has been booming this year.

Innovation

The pandemic has also brought about some innovations that were a long time coming for solar energy. Residential solar companies were forced to adapt their sales to a digital framework. SunPower (NASDAQ:SPWR) is one of the leaders in this digital-first approach, but Tesla (NASDAQ:TSLA) has also caught this wave. Moreover, when it reported its earnings last week, the company revealed it is aiming for its solar business to be just as strong as its main star, the EV business. Elon Musk announced that Tesla’s next ‘killer product’ is its Solar Roof, and that everyone will see why next year. But even Sunrun (NASDAQ:RUN) is adapting to a new normal with fewer physical touchpoints so competition will be intense.

Improved profitability

At the end of the day, the reason solar stocks are up this year is the improved financial performance. Canadian Solar (NASDAQ:CSIQ), JinkoSolar (NYSE:JKS), SolarEdge (NASDAQ:SEDG), and Enphase Energy (NASDAQ:ENPH), four of the biggest equipment suppliers in the industry have remained strong during the pandemic, with some companies also seeing margins increase.

But this piece of good news is a result of the industry focusing more on specializing rather than vertically integrating. For example, SunPower has spun off its development business, inverter manufacturing, and its solar manufacturing arm which led it to better financial results and better margins almost across the board.

Politics

Considering that Joe Biden has taken a clear polling lead over Donald Trump, the boost of solar stocks is not a surprise. Biden’s strategy is much more focused on clean energy than Trump’s, despite not being supportive of the “Green New Deal”.  The overall perception is that Biden will be good for the industry.

Affordability

Solar power is already the cheapest source of electricity in some parts of the world, according to a new report released on October 13th by the International Energy Agency (IEA). This was greatly enabled by governmental policies in more than 130 countries that aim to encourage the rise of renewables by reducing the cost of building new solar installations.

Outlook

As solar technology continues to improve and innovation continues to drive those costs down, solar is on track to become “the new king of electricity supply”. With global efforts to put climate change under control, the solar industry is expected to dominate over the next decade. The EU alone has set a goal to source 32 percent of its energy from renewables by 2030, therefore, the forecast for solar is sunny.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

Continue Reading

BenzingaEditorial

Procter& Gamble Benefits From the Cleaning Boom

Published

on

Emerging Companies

On Tuesday, Procter & Gamble (NYSE: PG) managed to beat estimates and raised forecast amid strong demand for its household products. Its shares rose 2% in morning trading.

Key figures

Fiscal first-quarter sales rose 9% as the pandemic fuelled higher demand for cleaning and laundry products, exceeding the prior quarter’s 6% increase. Net sales amounted to $19.32 billion, topping expectations of $18.38 billion. Organic revenue, which strips out the impact of acquisitions, divestitures and foreign currency, also rose 9% in the quarter. This sales boost was enabled by stronger demand in P&G’s largest market, North America.

Sales growth resulted in a net income of $4.28 billion, or $1.63 per share. Not only is this figure higher than Refinitiv’s average of $1.42 per share, but it is also an improvement from last year’s $3.59 billion, or $1.36 per share, a year earlier.

Improved Forecast

Supported by these strong quarter results, P&G also raised its outlook for fiscal 2021. Overall sales growth is now expected in the range between 3% to 4%, up from its prior forecast of 1% to 3%. As for organic revenue, the forecasted range also improved from 2% to 4% to a new range between 4% and 5%. The outlook for its core earnings per share growth has also improved from prior forecast of 3% to 7%. While the early retirement of debt will reduce its net income up to 20 cents a share this fiscal year, core earnings per share are still forecasted to grow between 5% to 8%. As for the impact of after-tax foreign exchange impacts and freight costs, they are estimated to impact earnings at approximately $375 million.

The “antiseptic” cleaning boom

Although the laundry care and healthcare divisions were standout performers as consumers prioritized home cleaning spending, all of P&G’s five business segments enjoyed organic sales growth. Moreover, U.S. consumers did not opt for cheaper brands which was expected to the absence of a new stimulus package.

Fabric and home care, which includes Tide, saw the highest jump. Organic sales rose 14% in the quarter. The home care segment alone saw organic sales soar 30% due to a boost in demand for home cleaning products, like Mr. Clean.

Health care, which includes Oral-B,s saw a double-digit organic sales growth as more consumers bought its digestive and wellness products.

Its beauty segment saw organic sales growth of 7% with the launch of Safeguard hand soap and hand sanitizer as well as new products from Olay that lifted North American sales for skin and personal care. It’s already a known fact that skincare became the new “lipstick index” during the COVID-19 pandemic.

Organic sales for its grooming business rose 6% in the quarter. However, Gillette and Venus brands saw flat organic sales as men don’t appear to be shaving as much during the pandemic. But women’s razors and blades rose by single digits.

The company’s baby, health and family care segment reported organic sales growth of 4%, including Pampers diapers, paper towels and toilet paper.

Outlook

It didn’t take long for Procter & Gamble to leave its conservative fiscal 2021 outlook behind. As consumers spend more time in their households, watching TV and engaging with their social media profiles, P&G is putting more money into advertising to put its brands front and center. The overall image is that P&G’s strong results and growth were enabled by increase in sales volumes, but average prices also rose. P&G did a great job in catching the cleaning boom wave which is why the company expects only a modest slowdown from pandemic-influenced growth rates that result in spiking sales over the recent months.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

Continue Reading
Advertisement

Submit an Article

Send us your details and the subject of your article and an IAM editor will be in touch with you shortly

Trending