After Planet Labs, Smith & Wesson Beats, I’m Gunning for a Sale…
Portfolio holding Planet Labs ($PL) revealed fiscal second-quarter financial results on Thursday evening, showing it seriously be expectations.
The company posted adjusted earnings per share of $0.02. Unadjusted, the company posted a loss per share of $0.03. Revenue clocked in at $116.052 million, which was up 58.1%. Wall Street had been looking for an adjusted loss per share of $0.02 and an unadjusted loss per share of $0.07 on revenue of $104.25 million.
Concerning guidance, For the current quarter the company sees revenue in a range of $101 million to $105 million. Wall Street was looking for something close to $114 million, so this is a miss. Adjusted gross margin is expected to be in between 56% and 58%. Adjusted earnings before interest, taxes, depreciation, and amortization loss is expected to land in a range spanning from -$6 million to -$1 million. Capital spending is projected at $30 million to $37 million.
For the full fiscal year, Planet Labs is projecting revenue in a range spanning from $430 million to $441 million. Wall Street was looking for something in the ballpark of $436 million, so this is spot on. Adjusted gross margin is expected to be in between 55% and 57%. Adjusted EBITDA profit is expected to hit the tape in a range spanning from $3 million to $10 million. Capex spending is projected at $100 million to $115 million.
My opinion? I am impressed. I am not as impressed as I thought that I would be.
Smith & Wesson Beats
Also on Thursday evening, portfolio holding Smith & Wesson Brands ($SWBI) released fiscal first-quarter financial results, revealing an adjusted EPS of $0.06 (unadjusted EPS was also $0.06) on revenue of $112.6 million (+32.4%). Wall Street had been looking for an adjusted loss per share of a nickel and an unadjusted loss per share six cents on revenue of $98.7 million, so same as above, these numbers amount to significant beats.
Now, onto the guidance. For the current quarter Smith & Wesson sees revenue growth of roughly 10% on a year-over-year basis. Wall Street had been modeling for annual sales growth of just 6%, so this is also a serious beat. Current quarter gross margin is expected to grow between 200 and 300 basis points over last year’s comparison. Operating expenses, however, are seen growing between 10% and 15% as well.
My take? A great quarter. I know people who purchased Smith & Wesson products over other options during this period. That said, those operating expenses that are expected to rise at a faster pace than sales are a concern.
Thursday’s Intentions vs. Actual Trades
No trades were intended; none were made.
Friday’s Intention
As I go to print, SWBI is up 12% overnight. PL is up 10%. I am going to make sales on these moves and if fortunate enough, buy those shares back at a discount next week or beyond. If I cannot repurchase the shares inexpensively, then I will simply have created some more cash, which I am fine with for now.
– Sell 20 shares of PL at or close to the last sale of $20.22.
– Sell 20 shares of SWBI at or close to the last sale of $13.88.
Current Positions
Long 100 shares of ALTO at $4.5125. Target Price: $6.50. Last sale: $4.12.
Long 40 shares of ASPN at $5.23. Target Price: $10. Last sale: $4.85.
Long 100 shares of EVLV at $5.7883. Target Price: $8.50. Last sale: $4.92.
Long 100 shares of OCUL at $8.3545. Target Price: $11. Last sale: $10.68.
Short one OCUL $11 Sep 18th call at $1.65, Last sale: $0.30.
Long 225 shares of ONDS at $8.4324. Target Price: $12. Last sale: $7.60.
Long 50 shares of PL at $23.5514. Target Price $33. Last sale: $20.22.
Long 5 shares of RKLB at $77.936. Target Price $97. Last sale: $64.44.
Long 100 shares of SOFI at $15.8511. Target Price: $24. Last sale: $18.12.
Short one SOFI $22 Nov 19th call at $1.20, Last sale: $0.85.
Long 70 shares of SWBI at $14.9645. Target Price: $19. Last sale: $13.88.
Long 85 shares of VELO at $12.0971. Target Price: $18. Last sale: $11.60.
Cash: $1,286.40.
Portfolio Value: $10,141.03, +1.4% from inception on March 24.
At the time of publication, Guilfoyle was long VELO, SWBI, SOFI, RKLB, ONDS, PL, OCUL, EVLV, APSN, ALTO, LMT, RTX equity; short SOFI, OCUL.
