STOCKS TELEGRAPH

Tag: Earnings Report

  • Legacy Acquisition (LGCY) Pops After Strong Earnings Beat – But What Comes Next?

    Legacy Acquisition (LGCY) Pops After Strong Earnings Beat – But What Comes Next?

    Legacy Acquisition Corp. (AMEX: LGCY) just delivered a performance that has Wall Street buzzing. The stock closed Thursday’s session at $9.08, up an impressive 16.71%, and then pushed even higher in after-hours trading, surging 21.98% to $9.49 by 8:30 PM. That kind of price action doesn’t go unnoticed, especially for a company that’s been quietly rebuilding its momentum.

    The day started strong, with the stock opening at $8.80 and trading between $8.50 and $9.15 before closing near the day’s high. Trading volume hit 226,460 shares, reflecting renewed interest from investors. LGCY now boasts a market cap of $112.42 million, with 12.38 million shares outstanding. The fundamentals look sturdy for a small-cap play: a P/E ratio of 18.16, cash flow per share of $0.50, and a notably high book value of $68.39 per share.

    What Sparked the Rally?

    The catalyst was clear—Legacy Education’s latest earnings report came in hot. The company reported earnings of $0.21 per share, smashing past the Zacks Consensus Estimate of $0.16. That’s a 31.25% earnings surprise, and the third time in four quarters that Legacy has beaten consensus expectations. Last year, the company posted $0.19 per share in the same quarter, so there’s real year-over-year growth at play here.

    Revenue also impressed, coming in at $18.58 million, which beat expectations by 8.26% and marked a solid increase from $12.33 million a year ago. It’s the third time in the last four quarters the company has topped revenue estimates—another strong signal that Legacy is heading in the right direction operationally.

    A Mixed Year with a Brighter Outlook?

    Despite this positive earnings momentum, LGCY shares are still down about 10.8% year-to-date, trailing the S&P 500’s modest 0.2% gain. That underperformance has left some investors cautious, but for those looking ahead, Legacy might be setting the stage for a turnaround story.

    So, what’s next?

    Analysts are currently forecasting $0.16 EPS on $17.39 million in revenue for the upcoming quarter, and $0.58 EPS on $62.19 million for the full fiscal year. If the company continues outperforming those targets, the stock may have more room to run.

    Right now, Legacy holds a Zacks Rank #3 (Hold), meaning it’s expected to perform in line with the broader market. But as earnings revisions start coming in post-report, that rating could shift. Historically, upward revisions tend to precede strong stock performance, so it’s worth keeping an eye on analyst moves in the coming weeks.

    Industry Backdrop Adds a Tailwind

    Legacy belongs to the Zacks Schools industry, which currently ranks in the top 18% of all Zacks-ranked industries. That’s a meaningful edge—Zacks research shows that the top half of ranked industries outperforms the bottom half by more than 2-to-1. With educational services continuing to evolve in the digital age, Legacy’s positioning could become even more relevant over time.

    Bottom Line:

    Legacy Acquisition (LGCY) is catching a second wind. With a solid earnings beat, growing revenue, and improving fundamentals, the stock’s recent rally could be more than just a short-term bounce. While risks remain, especially after a rough start to the year, the company’s consistent performance and positive momentum suggest this could be a name to watch as the education sector continues to transform.

  • Why Xunlei Limited (XNET) stock rallied in Pre-Market trading?

    Xunlei Limited (XNET) announced its unaudited fourth-quarter financial results and fiscal year 2020 results after which XNET stock price saw a jump of 12.40% to reach $8.70 a share as of this writing. XNET per share price was $7.74 at the previous closing with a 3.20% gain.Let’s deep dive to explore more of it.

    What’s happening?

    Xunlei Limited is a digital media content cloud-based platform in China.Unaudited fourth quarter and fiscal year 2020 results have added more hype to the XNET stock price today.Here is the summary of the results.

    Fourth-quarter 2020 Results:

    • Xunlei Stock reached US$50.3 million in revenue representing a 15% increase from the previous quarter.
    • US$25.9 million revenue generated from cloud computing and other internet value-added services which shows a 22% increase from the last quarter.
    • Subscription and Online advertising revenues were US$20.7 million and US$3.8 million respectively with5.5% and 27.6% increase as compared to the previous quarter.
    • Gross profit was US$26.8 million with an 18.3% increase as compared to the previous quarter while gross margin was 53.3% as compared to 51.9% of the previous quarter.
    • US$4.6 million net income was generated in the fourth quarter of 2020 while US$1.5 million of net loss was recorded in the previous quarter.
    • Diluted loss per ADS was approximately US$0.07 in the fourth quarter of 2020 while it was US$0.02 in the last quarter.

    The fiscal Year 2020 Results:

    • XNET stock generated US$186.7 million in revenue with a 3.0% increase over the year.
    • US$25.9 million revenue generated from cloud computing andIVAS representing a 6.0% increase over the year.
    • Subscription revenues were US$84.3 million with a 3.4% YoY increase while Online advertising revenues were recorded US$13.2 million with a 15.6% decrease over the year.
    • Gross profit was US$93.7million with a 16.1% increase as compared to 2019 while gross margin was 50.2% as compared to 44.5% of 2019.
    • Net loss totaled US$14.1 million in 2020 as compared to US$53.4 million net loss in 2019.
    • Diluted loss per ADS was US$0.21 in 2020 while it was US$0.79 in 2019.

    XNET stock had cash, cash equivalents, and short-term investments of US$255.1 million at the end of the fiscal year 2020 as compared to US$246.0 million at the end of the third quarter of 2020.

    Conclusion:

    XNET stock news about its earnings report has added more hype in the XNET stock price. For the first quarter of 2021, Xunlei stock has projected its revenue to be between US$53 million and US$56 million which represents 8% quarterly revenue growth. Estimated financial guidance for the first quarter of 2021 points to the further growth of Xunlie Stock. Hence it can be a good bet for investors in the future.

  • Here’s What You Need To Know About Week Ahead: Peloton (PTON) & Slack Technologies (WORK) Earnings Ahead

    Here’s What You Need To Know About Week Ahead: Peloton (PTON) & Slack Technologies (WORK) Earnings Ahead

    Equity trading will be shortened in the US this week as the investors are celebrating the Labor Day Holiday which is traditionally celebrated on the first Monday of September. But this week is packed with important events to watch and keep the tabs on.

    Peloton (PTON) and Slack Technologies (WORK) are both scheduled to share their quarterly reports this week. Both the companies are considered to be the king in the pandemic since their products have been mostly utilized as customers started working from home.

    Slack Technologies has earlier reported the financial results for its fiscal quarter. It had reported the total revenue rose $201.7 million year-over-year. Almost 12,000 new paid customers were added in Slack and also added a record of over 90,000 net new organizations on either a free or paid subscription plan.

    Slack Technologies, Inc shares had tumbled down 6.17% on Friday as it lost -1.91. It had a 52-weeks low and high range of $15.10 and $40.07, respectively. Slack Technologies traded up 92.52% from its 52-weeks low and traded down -27.45% from its 52-weeks high. Its market capitalization has remained high, hitting 17.46 billion.

    Now if we look at Peloton (PTON), it will also share its quarter result later this week. If we look at the analysts’ rating, 23 rates the stocks as a buy 1 as a sell, and 2 as Hold. Peloton is one of the top picks along with SNAP, AMZN, and FB. Peloton Upcoming challenge is to meet the customers’ demands in a short period of time.

    Peloton Interactive shares traded down 2.01% as it lost -1.65 on Friday. Shares of PTON has fluctuated between the low of $17.70 and a high of $-12.83%. It has moved up to 355.54% from its 52-weeks low and moved down -12.83% from its 52-weeks low. Peloton Interactve Inc has a total market capitalization of $23.30 billion at the time of writing.

    Turning our focus on the earning calendar, Slack (WORK), Lululemon (LULU), and Coupa Software (COUP) scheduled to report financial results on Tuesday after market close. American Eagle Outfitters (AEO) will report the financial result before the market opens on Wednesday. Zscaler (ZS), GameStop (GME), RH (RH) expected to share quarter earnings after market close on Wednesday. On Thursday, Peloton (PTON), Chewy (CHWY), Dave and Buster’s (PLAY), Oracle (ORCL) are set to post their quarterly result after market close. Kroger (KR) will post the result on Friday before the market open.