The company's stock was trading higher Monday, bucking the broader market's decline.
MarketBeat.com - MarketBeat Early Monday, it was announced that a new employee would be joining the company from the previous one. She held the same position at Peloton.
After its ride up the mountain in 2020, the stock is down 90.98% on a one-year basis. The story is well known: Stay-at- home orders and gym lockdowns resulted in a spike in Peloton sales that began to reverse later in the year.
Revenue has fallen in the past two quarters.
She is joining a company that is different from the one she is leaving.
Strong revenue growth and strong earnings.
It's well positioned. In the past eight quarters, revenue has grown at double-digit rates and earnings have done the same.
The company reported a year-over-year gain of 36% in its second quarter, earning $1.65 per share.
The revenue came in at more than expected.
The company said it now expects net income to be between $1.66 and $1.72 a share in the third quarter. It was an improvement over analysts expectations.
The range for revenue was between $1.27 billion and $1.29 billion. There was a consensus estimate of over a billion dollars.
The company now expects its full-year earnings to be between $6.52 and $6.72 per share.
MarketBeat data shows that the company has made money every year since 2019. In the past two years, earnings have grown, with Wall Street expecting another 31% growth for the current year, to $6.62 per share, so more or less in the middle of the estimates.
The company is in the third quarter Analysts expect earnings to go up by another 19% in the next fiscal year.
The three-year earnings growth rate is 40% and the three-year revenue growth rate is 16%.
The strong dollar is not hurting growth.
Each of its business units and regions experienced growth in the second quarter. Despite the dollar's strength, the gains came.
The company's CFO addressed that point in a statement.
She said that the business was resilient during the second quarter. Our guidance is unchanged at the mid-point across all metrics because of the underlying momentum of the business. We are well on our way to achieving our fiscal23 goals.
The maker of 3D design, entertainment, and engineering software is moving to a subscription model. It smoothes sales rates by generating recurring revenue.
The company is well established, having gone public in 1985. As the company moved too slowly to address the rise of digital images, it tanked, and management is not getting stuck clinging to what worked in the past.
According to MarketBeat analyst data, the consensus estimate on the company is a Moderate Buy, with a price target of $259.90.
The stock's analyst ratings are mixed. Even though it was lowered its price target on August 25, it still has a "BUY" rating on the stock. MoffettNathanson still expects a 7% upside.
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