Connect with us

BenzingaEditorial

E-Commerce Automotive Market Is the Next Big Thing and the U.S. Auto Parts Network Is The Player to Pay Attention on

Published

on

US Auto Parts

The global e-commerce automotive market is forecasted to grow with the highest CAGR from 2020 to 2029, according to a latest industry study by Market.us. And one of the market’s key players, U.S. Auto Parts Network, Inc. Common Stock (NASDAQ:PRTS) U.S. Auto Parts Network, Inc. is expected to report earnings for its third quarter that ended on September 30th on November 1 after the market closes. U.S. Auto Parts Network Inc that was established in 1995, together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories primarily in the United States and the Philippines. It offers a range of exterior and interior automotive parts and accessories to individual consumers through its large network of online marketplaces.

News that influenced the quarter

One of the largest online providers of aftermarket automotive parts and accessories has announced an appointment of Jim Barnes to its Board of Directors. Barnes is currently a CEO enVista, LLC, a supply chain and unified commerce consulting firm that he co-founded in 2002. Mr Barnes feels that the company is well equipped and positioned to grow its business by providing U.S. consumers with affordable auto parts. He seems as the perfect fit for the company to go forward and fuel that growth as the company has been facing a drop in its revenues. For this quarter’s earnings, analysts expect the company to deliver a year-over-year decline. When we look at the last four quarters, they only managed to beat analyst expectations once, with remainder being surprise-free. But even that’s better news than missing estimates. And many stocks can still lose ground even after exceeding estimates due to other qualitative factors influencing the investor’s sentiment. So let’s try to figure out what those catalysts might be.

Prior results

Through the first quarter, the company reported that 91% of its revenue comes from e-commerce and online marketplace with the remaining being offline or wholesale. When it comes to product portfolio, 57% of products are from the collision parts line, 31% of engine parts, and 11% is represented by performance and accessories. As for the latest annual filing, net sales were $289.5M with adjusted EBITDA $10.4M.

Previous quarter earnings

The specialty auto parts retailer reported ($0.04) earnings per share for the quarter, successfully meeting the Thomson Reuters’ estimate. U.S. Auto Parts Network did have a negative return on equity of 23.48% with a negative net margin of 3.21%. But the company had revenue of $73.69 million during the quarter with analyst estimates of $74.66 million.

Analyst expectations

The down-trending stock of U.S. Auto Parts Network, Inc. has declined 15.11% since October 25, 2018. It has underperformed S&P500 by 15.11%. But, it crossed above its 200-day moving average during trading on October 14th as the stock’s 200-day moving average of $1.21 was exceeded by shares trading as high as $1.55.
On average, analysts expect U.S. Auto Parts Network, Inc. to report $-0.03 EPS on November, 1 with $0 EPS for the current as well as the following fiscal year. Some anticipate $0.04 EPS change or 400.00% from last quarter’s $0.01 EPS. After having $-0.04 EPS previously, U.S. Auto Parts Network, Inc.’s analysts see -25.00% EPS growth. The stock decreased 1.24% or $0.02 during the last trading session, reaching $1.59.
There’s the ‘surprise’ potential which underlines the whole industry
Back on August 17th, after its prior quarter earnings were released, Zacks Investment Research upgraded their shares from a “hold” to a “buy” rating, by setting a $1.25 price target. So together with the unexpected growth of the e-commerce auto-parts industry, this industry peer is able to pull out a few surprises. One week ago, Lamp News reported that institutional sentiment increased to 0.86 in Q2 2019. Its ratio improved by 0.65 as it was 0.21 in the first quarter of 2019 fiscal year.

Competitors

One of its main competitors, Autozone Inc (NYSE:AZO) rose 2.77% on October 24 post its earnings report. What’s more impressive that its up-trending stock has risen 60.79% since October 27, 2018. But focusing more on e-commerce and speaking of the giant itself, Amazon (NASDAQ:AMZN) was just heavily beaten by Microsoft in getting the US$10 bn cloud deal so its throne is surely shaken up.
A giant of another kind, the Chinese Alibaba group (NYSE:BABA) is now a strong buy as its earnings report is on the horizon. But, the US-China trade dispute continues to loom over the stock. Although its fate might not be entirely tied to this scenario but we have to wait for October 31 to see if they can manage to beat estimates like they did last quarter. Yet, if shares fall short of estimates, there could be a significant material decline that would be a clear indicator that the trade war is influencing the business. We still have to wait to see the impact of the weakening economy and intensifying trade disputes, but one thing is clear: U.S. Auto Parts Network operates in a highly competitive environment.

Outlook

Even Amazon made losses several years after its listing, but all those who bought and held the shares from the company’s beginnings ended up making a fortune. And this is the reason why investors are often drawn to ‘seemingly’ unprofitable companies. The main concern for U.S. Auto Parts Network is the possible cash burn scenario which would bring the company to a distressful position. So the question that analysts want answered is can this company afford to keep investing in its growth? But, on the bright side, the company was debt free in June this year with its balance sheet showing US$890k in cash. Its balance of cash reserves and cash burns did alter significantly through the years but the company did have a positive cash flow last year. Unfortunately, its revenues are down sliding this year as they declined 5.1%. The good news is that it would be easy for the company to fund a year of growth by either taking out a loan or issuing new shares. So, if they can work on their offerings to enhance their sales, there are many reassuring factors to support its way forward- hopefully to growth.

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

Moderna Misses Expectations But Things Are More Than Fine

Published

on

Moderna (NASDAQ: MRNA) saw its stock jump on Thursday despite growing losses, after the Covid-19 vaccine-maker reported more than double the revenue Wall Street predicted. Moderna missed EPS expectations with revenue far surpassing analyst forecasts as the company first began to recognize revenue from sales of its COVID-19 vaccine in December 2020. The loss was simply a result of heavy investment to increase production of its COVID-19 vaccine.

The company has spent the past two months producing and shipping its much-awaited coronavirus vaccine but its fourth-quarter is merely the surface of its vaccine success. In 2021, Moderna plans to manufacture 600-700 million doses of its COVID-19 vaccine but it should be able to expand its capacity to 1.4 billion doses in 2022 due to heavy capital investments, all of which should result in massive profits.

Q4 and FY 2020

For the fourth quarter ended December 31s, quarterly loss of $0.69 per share was below Zacks Consensus Estimate of $0.25 but Moderna brought in $570.75 billion in sales. That crushed the average estimate of analysts surveyed by FactSet for $279.4 million andsurpassing the Zacks Consensus Estimate by 74.76%. Just one year ago, revenues amounted to $14.06 million but until its mRNA-1273 coronavirus vaccine, the company had never brought an approved medicine to the market.

Losses grew to 69 cents per share after a 37-cent per-share loss in the year-ago period, whereas analysts expected a 34-cent loss. Although a big portion of revenue still came from the grant received from the Biomedical Advanced Research and Development Authority to advance its Covid vaccine, for the first time,Moderna had product sales, and they amounted to $199.87 million as the company began recognizing Covid vaccine sales in December. Although losses widened in 2020, Moderna’s sales skyrocket to $803.4 million.

Possible threat

One of the biggest risks ahead for all vaccine makers is the prevalence of new coronavirus variants. To tackle this, Moderna is investigating two upgrades. The first is actually a third dose of vaccine that would increase neutralizing antibody levels to better fend off new strains. The second is a strain-specific upgraded version which has been moved into preclinical and phase 1 trials as of end of January. Moderna is designing it to target the. If successful, the company should be able to quickly adapt it to protect against future strainsalthough it is designed to target the South African variation.

Teenagers

In early December, Moderna began a phase 2/3 trial of its covid vaccine in young adults who are 12 to 17years old. The data will be reported in spring and should result in Emergency Use Authorization just in time for the back-to-school period in September. But as of last month, Moderna didn’t have enough adolescent volunteers.

Teens aren’t at the greatest risk from serious COVID-19 complications but they play a role in the transmission of the virus, so their vaccination is another  important element in containing the pandemic.

2021

The company expects $18.4 billion in full-year 2021 sales of its Covid vaccine. The figure is based on already inked advance purchase agreements but additional discussions are ongoing for both 2021 and 2022. That outlook shattered forecasts as analysts expected $11 billion. Furthermore, the company said it plans to make 700 million doses of its vaccine this year, while still working to bring that capacity up to 1 billion. In 2022, Moderna expects be able to produce 1.4 billion doses.

Chief Executive Stephane Bancel called 2020 a historic year for the company as it trailed Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) by a week in the U.S by gaining emergency use authorization. The vaccine is Moderna’s first commercial product with 32 million doses having been administered in the U.S. to millions of people around the world.

In 2020, Moderna went from knowing mRNA vaccines can be highly efficient it went to cash-flow generating commercial company that is helping save the world form the claws of an invisible enemy. The latest reported quarter ended a milestone year for the biotech company. 2020 was a year in which the world went dark but the pandemic helped Moderna shine as it provided us with a glimpse of light at the end of the tunnel. Since the beginning of 2021, its shares gained 38.6%, greatly exceeding S&P 500’s gain of 4.5%.

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

Li Did Good But Not Good Enough

Published

on

Li Auto Inc (NASDAQ: LI) earnings were good but guidance wasn’t good enough as Chinese electric-vehicle maker reported solid fourth-quarter numbers Thursday. Despite producing a surprise profit, stock reversed and Li wasn’t the only one. Nio Limited (NYSE) who is due to report Monday fell 9.7% and Xpeng Inc (NYSE: XPEV) lost 8.55% Thursday. Tesla (NASDAQ: TSLA) gave up 8.1%. Earlier this week, Texas-based Hyliion (Holdings Corporation (NYSE: HYLN), which makes EV powertrains for commercial fleets, reported a loss of 13 cents a share in the fourth quarter.

Figures

The results were a little confusing, but good as Li reported $636 million in sales as revenue jumped 39%, exceeding $604 million that analysts projected in sales. The company reported a loss from operations but a positive net income. Still, the loss from operations was about $12 million which is smaller than expected. Li Auto earnings came in at 2 cents a share whereas analysts expected a loss of 4 cents on a revenue of $565.5 million. The company also generated positive free cash flow. Investors like it when young companies demonstrate the ability to be self-funding by generating the cash they need to grow from their own operations.

Throughout the quarter, Li delivered 14,464 of its Li One SUV, its only vehicle in production which is technically a hybrid because it has a small gas engine to extend its range. This is 67% more than third quarter’s 8,660 with the total for 2020 being approximately 32,624 deliveries Its rival Nio (NYSE: NIO) sold 17,353 units in Q4 and 43,728 for the year, while Xpeng (NYSE: XPEV) sold 12,964 in Q4 and 27,041 for the year. What enabled Li to deliver a bottom-line profit from an operating loss is the required accounting of securities.

Outlook

Management expects first quarter revenue to come in the range of $450.6 million to $493.5 million. This range would represents a growth between 246% and 279% compared to previous fiscal year’s quarter. Deliveries are expected to be in the range between 10,500 and 11,500 vehicles, up 263%-297% compared to the same quarter last year but less than the fourth quarter which will make reaching analyst projections for 2021 sales projections more challenging. The company reported that January deliveries soared 356% YoY to 5,379 but that is below December 2020’s 6,126.

As the automotive industry is undergoing a once-in-a-century shift to smart EVs, the fourth quarter ended a big year for Li that grew significantly due to strong demand for its distinctive product offering and superior user experience. Government’s support for EVs also doesn’t hurt as to encourage adoption, not only are license plates guaranteed but they are also free.

The earnings provided a sigh of relief for investors as Li stock has had a rocky ride lately. As of Wednesday’s close, shares were down about 11% month to date.

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

Baidu Is Determined To Show It Has More to Offer

Published

on

For two decades, the 21-year-old company has been viewed as an online marketing tool that sells ads through its web search results. But now, the internet company is ready to show it has much more to offer. Last week, it reported fourth quarter earnings for 2020 that beat market expectations and revealed its ambitious plans to enter the EV land. Many years of investing in AI has finally started to pay off as Baidu is finally monetizing the technology used with smart devices. Company’s investments in non-core businesses iarealso helping it defend its core search platform from rivals Alibaba (NYSE: BABA), Tencent Holdings (OTC: TCEHY) and privately-ownedByteDance, whose products are just as popular.

The Chinese tech giant has recovered from the worst impact that the pandemic had on its business as advertising rebounded. Moreover, non-marketing revenue which excludes advertising and includes its cloud and autonomous driving business, grew 52% YoY. Baidu is also tapping into capital markets, including a potential second listing in Hong Kong. Baidu beefs up its autonomous and smart transport technology to tainto the EV market as it revealed back in January it would set up a smart electric vehicle (EV) company with Geely.

As the domestic economy recovers, the company want to tap into into the fast-growing electric-vehicle market to diversify revenue sources.

Figures

Full year revenue for 2020 amounted to $16.4 billion which is flat compared to 2019. Adjusted earnings of $3.08 per share versus analyst estimates of $2.79 per share came after revenues of $4.6 billion versus analyst estimates of $4.7 billion, according to FactSet.

The company provided guidance for the undergoing quarter that was ahead of analyst estimates. Revenue is expected to be in the $4.0 billion and $4.4 billion, representing a growth rate of 15% to 26% YoY, but it does not include potential contribution from its acquisition of live streaming app YY Live. The acquisition was announced last November and is expected to close in the first half of the year. The guidance is also based on the assumption that its core revenue will grow between 26% and 39% on a YoY basis.

EVs

Baidu places a lot of emphasis on its Apollo self-driving technology. Last month, the company formed a strategic partnership with the Chinese car company Zhejiang Geely Holding Group to create a standalone electric car company. Baidu is the majority shareholder. Together, they aim to launch a smart EV model inthree years. Robin Li, Baidu’s CEO Li also said a brand name has been chosen but did not release it.

CNBC has confirmed Xia Yiping, co-founder of bike-sharing start-up Mobike, will be the CEO of the new entity. Xia previously worked at Fiat Chrysler (NYSE: FCAU) and Ford before co-founding a company that was part of China’s boom and eventual bust in shared bike start-ups.

Even Xiaomi is following Baidu’s EV footsteps as the Chinese search engine leader has been basking in newfound investor love as the next EV-maker wannabe. Unlike other EV makers, Baidu’s strategy is akin to Google’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Android for smartphones.

Outlook

Baidu ended an unprecedented year on a solid note and showed it is recovering from the consequences of the global health crisis as its business benefited from an improving macroeconomic environment and the digitalization of businesses and lifestyles. Its commitment on innovation through technology is paying off for the Chinese tech giant. Baidu is well positioned as a leading AI company with a strong foundation to seize the enormous market opportunities in cloud services, autonomous driving, smart transportation, along with all kinds of new opportunities that AI will inevitably bring to the table. The online marketing company chose to be in the right place, at the right time.

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

TRENDING

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