EARNINGS RELEASE - AUGUST 4 (AMC)
THIS QTR: EPS: -.09/share REV: 368.23/M
LAST QTR: EPS: -.11/share ACTUAL: .06/share (BEAT)
NEXT QTR: EPS: -.06/share REV: 379.03/M
FULL YR: EPS: -.09/share REV: 1,560/M
BEAT/MISS RECORD: 75% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) 44.09, -8.47, -13.75
EXPECTED JUMP MOVE THIS QUARTER: 10-15%
*** With market volatility at extremes there is greater risk in trading these events which may not react as they would under normal market conditions. Please take extra caution before tradin
Links To Latest News and Headlines
Twilio (TWLO) has been one of 2020’s success stories. Shares have more than tripled as the cloud communications specialist has made the most of the pandemic necessitating a shift toward remote work.In Q3, revenue increased by 51.8% to $448 million, beating consensus estimates by $40.8 million. The company posted a beat on the bottom line, too, as Non-GAAP EPS of $0.04 came ahead of the Street’s forecast by $0.08.The software maker saw out the quarter with 208,000 active customer accounts, a 21% year-over-year uptick.However, the strong results were not enough to please investors and shares slipped after the company guided for a wider loss in the current quarter.For the December quarter, the company expects revenue between $450 million to $455 million, higher than the analysts’ forecast for $437 million. Yet, following recent investments, Twilio now anticipates EPS between -$0.08 to -$0.11 in Q4 compared to the Street’s call for adjusted EPS of $0.01.Nevertheless, Canaccord analyst Michael Walkley is nonplussed by the expected loss. The 5-star analyst believes Twilio remains “well positioned to achieve long-term targets” and expects “greater profitability and cash flow generation even as the company continues to make investments to drive future growth.”Walkley further said, “We maintain our belief Twilio is the leading CPaaS company and an integral centerpiece of customer digital transformation plans, and the company should remain a long-term beneficiary of the new world order as the company executes on its go-to-market strategy. Given the mounting strength in Twilio’s core business and accretive Segment acquisition, we believe the shares have additional upside despite the strong performance year-to-date.”As a result, Walkley increased his price target from $380 to $385, implying possible upside of 30%. Needless to say, Walkley’s rating stays a Buy. (To watch Walkley’s track record, click here)There’s widespread support for Twilio on Wall Street. The analyst consensus rates the stock a Strong Buy based on 19 Buys and 3 Holds. At $344.29, the average price target suggests share will appreciate by 19.5% over the next months. (See Twilio stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Legendary fund manager Li Lu (who Charlie Munger backed) once said, ‘The biggest investment risk is not the volatility…
Investors weren’t too impressed with Twilio’s (NYSE: TWLO) third-quarter earnings release earlier this week, sending shares lower by 5% on Tuesday. Revenue in the third quarter soared by 52% to $448 million, beating Twilio’s guidance of $401 million to $406 million, as advertised. Twilio also conducted a secondary offering in August to bolster the balance sheet at favorable terms, raising $1.4 billion in proceeds to be used for general corporate purposes.
And modest guidance sets the company up for another round of analyst-stumping fireworks in the next report.
Shares of Twilio (NYSE: TWLO) have fallen today, down by 3% as of 12:45 p.m. EDT, after the company reported third-quarter results. Twilio now has over 208,000 customers and reported a dollar-based net expansion rate of 137%. “Great digital engagement is becoming more critical to differentiate the customer experience, and companies across industries and around the world are choosing Twilio’s customer engagement platform to build these solutions,” CEO Jeff Lawson said in a statement.
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This stock is trading this week at all time highs. The trajectory analysis has this a sell on the news outcome post release. At this time we are biased short and will update prior to close.
Update: We remain biased short.
OUR TRADE PLAN:
STOP LOSS: N/A
INITIAL PROFIT TARGET: 12%
TRADE ASSIST: N/A
POST RELEASE ACTION:
There is a significant amount of data behind the scenes involved in the analysis and trade plan tab above, that does not get put into the report. Too much information for traders often confuses things – so this is stripped down to only what is needed to make the best possible decision(s) on trading the trajectory.