Major Estimate Revision • Nov 16
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$673.2m to US$683.3m. EPS estimate increased from US$1.66 to US$1.88 per share. Net income forecast to shrink 67% next year vs 17% growth forecast for IT industry in the US . Consensus price target reaffirmed at US$33.47. Share price was steady at US$34.10 over the past week. Reported Earnings • Nov 11
Third quarter 2022 earnings released: US$0.002 loss per share (vs US$0.003 loss in 3Q 2021) Third quarter 2022 results: US$0.002 loss per share (improved from US$0.003 loss in 3Q 2021). Revenue: US$174.5m (up 10% from 3Q 2021). Net loss: US$257.0k (loss narrowed 30% from 3Q 2021). Revenue is forecast to grow 10.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has increased by 116% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 17
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from US$0.20 to US$1.66. Revenue forecast steady at US$673.9m. Net income forecast to shrink 41% next year vs 14% growth forecast for IT industry in the US . Consensus price target of US$33.23 unchanged from last update. Share price was steady at US$34.00 over the past week. Major Estimate Revision • Aug 16
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from US$0.20 to US$2.01. Revenue forecast steady at US$672.6m. Net income forecast to shrink 41% next year vs 14% growth forecast for IT industry in the US . Consensus price target of US$33.23 unchanged from last update. Share price was steady at US$33.93 over the past week. Upcoming Dividend • Aug 12
Upcoming dividend of US$0.052 per share Eligible shareholders must have bought the stock before 19 August 2022. Payment date: 01 September 2022. Payout ratio is a comfortable 8.0% but the company is not cash flow positive. Trailing yield: 0.6%. Lower than top quartile of American dividend payers (4.0%). Lower than average of industry peers (1.3%). Reported Earnings • Aug 09
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: US$2.51 (up from US$0.034 in 2Q 2021). Revenue: US$168.2m (up 19% from 2Q 2021). Net income: US$376.8m (up US$372.5m from 2Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2,901%. Over the next year, revenue is forecast to grow 8.3%, compared to a 14% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 105% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 16
Upcoming dividend of US$0.052 per share Eligible shareholders must have bought the stock before 23 May 2022. Payment date: 06 June 2022. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 0.6%. Lower than top quartile of American dividend payers (4.1%). Lower than average of industry peers (1.4%). Reported Earnings • May 11
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: US$0.087. Revenue: US$164.6m (up 26% from 1Q 2021). Net income: US$12.8m (up 9.9% from 1Q 2021). Profit margin: 7.8% (down from 8.9% in 1Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 35%. Over the next year, revenue is forecast to grow 10%, compared to a 15% growth forecast for the industry in the US. Upcoming Dividend • Mar 03
Upcoming dividend of US$0.052 per share Eligible shareholders must have bought the stock before 10 March 2022. Payment date: 22 March 2022. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 0.8%. Lower than top quartile of American dividend payers (3.7%). Lower than average of industry peers (1.4%). Reported Earnings • Feb 27
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: US$0.04 (down from US$0.15 in FY 2020). Revenue: US$592.0m (up 16% from FY 2020). Net income: US$5.41m (down 65% from FY 2020). Profit margin: 0.9% (down from 3.0% in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 76%. Over the next year, revenue is forecast to grow 14%, compared to a 20% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Dec 11
Chief Construction Officer recently sold US$1.3m worth of stock On the 9th of December, Teresa Borden sold around 50k shares on-market at roughly US$26.32 per share. In the last 3 months, there was an even bigger sale from another insider worth US$13m. Insiders have been net sellers, collectively disposing of US$353m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Dec 02
Founder notifies of intention to sell stock Rob Roy intends to sell 400k shares in the next 90 days after lodging an Intent To Sell Form on the 23rd of November. If the sale is conducted around the recent share price of US$26.58, it would amount to US$11m. For the year to December 2020, Rob's total compensation was 13% salary and 87% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since December 2020, Rob's direct individual holding has increased from 208.78k shares to 719.16k. Company insiders have collectively sold US$363m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Nov 20
Chief Construction Officer notifies of intention to sell stock Teresa Borden intends to sell 50k shares in the next 90 days after lodging an Intent To Sell Form on the 16th of November. If the sale is conducted around the recent share price of US$26.12, it would amount to US$1.3m. Since December 2020, Teresa's direct individual holding has decreased from 682.47k shares to 517.50k. Company insiders have collectively sold US$361m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Nov 17
Insider recently sold US$3.6m worth of stock On the 12th of November, Michael Borden sold around 150k shares on-market at roughly US$23.93 per share. In the last 3 months, there was an even bigger sale from another insider worth US$13m. Insiders have been net sellers, collectively disposing of US$351m more than they bought in the last 12 months. Upcoming Dividend • Nov 11
Upcoming dividend of US$0.052 per share Eligible shareholders must have bought the stock before 18 November 2021. Payment date: 01 December 2021. Trailing yield: 0.9%. Lower than top quartile of American dividend payers (3.4%). Lower than average of industry peers (1.3%). Reported Earnings • Nov 06
Third quarter 2021 earnings released: US$0.003 loss per share (vs US$0.048 profit in 3Q 2020) The company reported a soft third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: US$158.1m (up 23% from 3Q 2020). Net loss: US$369.0k (down 107% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Oct 15
Insider recently sold US$1.7m worth of stock On the 12th of October, Stella Roy sold around 68k shares on-market at roughly US$24.58 per share. In the last 3 months, there was an even bigger sale from another insider worth US$5.2m. Insiders have been net sellers, collectively disposing of US$323m more than they bought in the last 12 months. Recent Insider Transactions • Sep 16
Insider recently sold US$2.6m worth of stock On the 13th of September, Michael Borden sold around 100k shares on-market at roughly US$26.10 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$317m more than they bought in the last 12 months. Recent Insider Transactions • Sep 04
Insider recently sold US$1.9m worth of stock On the 1st of September, Michael Borden sold around 75k shares on-market at roughly US$25.04 per share. In the last 3 months, they made an even bigger sale worth US$8.4m. Insiders have been net sellers, collectively disposing of US$328m more than they bought in the last 12 months. Recent Insider Transactions • Aug 27
Chief Construction Officer recently sold US$1.5m worth of stock On the 23rd of August, Teresa Borden sold around 62k shares on-market at roughly US$24.02 per share. In the last 3 months, there was an even bigger sale from another insider worth US$8.4m. Insiders have been net sellers, collectively disposing of US$327m more than they bought in the last 12 months. Recent Insider Transactions • Aug 18
Director recently sold US$2.4m worth of stock On the 12th of August, Thomas Thomas sold around 100k shares on-market at roughly US$24.14 per share. In the last 3 months, there was an even bigger sale from another insider worth US$8.4m. Insiders have been net sellers, collectively disposing of US$325m more than they bought in the last 12 months. Major Estimate Revision • Aug 12
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from US$559.9m to US$594.7m. EPS estimate fell from US$0.24 to US$0.20 per share. Net income forecast to grow 11% next year vs 12% growth forecast for IT industry in the US. Consensus price target up from US$21.92 to US$25.38. Share price rose 19% to US$24.31 over the past week. Upcoming Dividend • Aug 11
Upcoming dividend of US$0.052 per share Eligible shareholders must have bought the stock before 18 August 2021. Payment date: 31 August 2021. Trailing yield: 0.9%. Lower than top quartile of American dividend payers (3.5%). Lower than average of industry peers (1.1%). Reported Earnings • Aug 06
Second quarter 2021 earnings released: EPS US$0.034 (vs US$0.049 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: US$141.7m (up 12% from 2Q 2020). Net income: US$4.36m (down 14% from 2Q 2020). Profit margin: 3.1% (down from 4.0% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 119% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 06
Price target increased to US$24.85 Up from US$21.92, the current price target is an average from 13 analysts. New target price is approximately in line with last closing price of US$24.32. Stock is up 35% over the past year. Recent Insider Transactions Derivative • Jul 25
Founder notifies of intention to sell stock Rob Roy intends to sell 400k shares in the next 90 days after lodging an Intent To Sell Form on the 20th of July. If the sale is conducted around the recent share price of US$20.97, it would amount to US$8.4m. For the year to December 2020, Rob's total compensation was 13% salary and 87% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since December 2020, Rob's direct individual holding has increased from 208.78k shares to 719.64k. Company insiders have collectively sold US$323m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • May 25
Insider recently sold US$3.3m worth of stock On the 20th of May, Stella Roy sold around 175k shares on-market at roughly US$19.07 per share. In the last 3 months, there was an even bigger sale from another insider worth US$126m. Insiders have been net sellers, collectively disposing of US$294m more than they bought in the last 12 months. Major Estimate Revision • May 18
Consensus EPS estimates increase to US$0.25 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from US$549.6m to US$555.2m. EPS estimate increased from US$0.19 to US$0.25 per share. Net income forecast to grow 14% next year vs 16% growth forecast for IT industry in the US. Consensus price target up from US$20.62 to US$21.23. Share price rose 2.8% to US$18.61 over the past week. Upcoming Dividend • May 18
Upcoming dividend of US$0.05 per share Eligible shareholders must have bought the stock before 24 May 2021. Payment date: 04 June 2021. Trailing yield: 1.1%. Lower than top quartile of American dividend payers (3.4%). In line with average of industry peers (1.2%). Recent Insider Transactions • May 18
Insider recently sold US$126m worth of stock On the 13th of May, Jeffrey Troesh sold around 7m shares on-market at roughly US$18.00 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$296m more than they bought in the last 12 months. Reported Earnings • May 11
First quarter 2021 earnings released: EPS US$0.092 (vs US$0.013 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$130.9m (up 2.2% from 1Q 2020). Net income: US$11.6m (up US$12.9m from 1Q 2020). Profit margin: 8.9% (up from net loss in 1Q 2020). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 128% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions Derivative • May 07
President notifies of intention to sell stock Erin Morton intends to sell 400k shares in the next 90 days after lodging an Intent To Sell Form on the 3rd of May. If the sale is conducted around the recent share price of US$18.10, it would amount to US$7.2m. Since December 2020, Erin's direct individual holding has increased from 392.30k shares to 436.12k. Company insiders have collectively sold US$39m more than they bought, via options and on-market transactions in the last 12 months. Major Estimate Revision • Mar 08
Analysts lower EPS estimates to US$0.20 The 2021 consensus revenue estimate was lowered from US$572.6m to US$552.3m. Earning per share (EPS) estimate was also lowered from US$0.25 to US$0.20 for the same period. Net income is expected to grow by 94% next year compared to 19% growth forecast for the IT industry in the US. The consensus price target was lowered from US$21.46 to US$20.62. Share price is down by 18% to US$14.15 over the past week. Reported Earnings • Mar 04
Full year 2020 earnings released: EPS US$0.15 (vs US$0.12 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$511.5m (up 11% from FY 2019). Net income: US$15.5m (up 74% from FY 2019). Profit margin: 3.0% (up from 1.9% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 126% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Mar 04
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.7%. Earnings per share (EPS) exceeded analyst estimates by 8.4%. Over the next year, revenue is forecast to grow 8.0%, compared to a 32% growth forecast for the IT industry in the US. Is New 90 Day High Low • Mar 03
New 90-day low: US$15.37 The company is down 4.0% from its price of US$16.00 on 02 December 2020. The American market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$6.18 per share. Is New 90 Day High Low • Jan 29
New 90-day high: US$17.50 The company is up 24% from its price of US$14.06 on 30 October 2020. The American market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 16% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$9.50 per share. Is New 90 Day High Low • Jan 08
New 90-day high: US$16.48 The company is up 1.0% from its price of US$16.30 on 09 October 2020. The American market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$9.32 per share. Is New 90 Day High Low • Dec 23
New 90-day high: US$16.38 The company is up 7.0% from its price of US$15.33 on 23 September 2020. The American market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$8.75 per share. Recent Insider Transactions • Dec 20
Insider recently sold US$395k worth of stock On the 16th of December, Teresa Borden sold around 25k shares on-market at roughly US$15.80 per share. In the last 3 months, there was an even bigger sale from another insider worth US$879k. Insiders have been net sellers, collectively disposing of US$47m more than they bought in the last 12 months. Analyst Estimate Surprise Post Earnings • Nov 07
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.3%. Earnings per share (EPS) exceeded analyst estimates by 14%. Over the next year, revenue is forecast to grow 10%, compared to a 20% growth forecast for the IT industry in the US. Reported Earnings • Nov 07
Third quarter 2020 earnings released: EPS US$0.048 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: US$128.8m (up 9.6% from 3Q 2019). Net income: US$5.21m (up 151% from 3Q 2019). Profit margin: 4.0% (up from 1.8% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Oct 29
New 90-day low: US$14.66 The company is down 19% from its price of US$17.99 on 31 July 2020. The American market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$8.42 per share. 