Palo Alto Networks Reports Fiscal First Quarter 2021 Financial Results

Palo Alto Networks Reports Fiscal First Quarter 2021 Financial Results

/PRNewswire/ — Palo Alto Networks (NYSE: PANW), the global cybersecurity leader, announced today financial results for its fiscal first quarter 2021, ended… Sign in Some stories — you know, crazy pandemics, crazier elections, craziest wardrobe fails — make so many headlines these days that they’ve shoved otherwise major developments off to the side. One of those, 5G technology, promises to change mobile communications like nothing else in generations. Vying for a nice slice of the pie is Nokia (NYSE:NOK), Sign in

SANTA CLARA, Calif., Nov. 16, 2020 /PRNewswire/ — Palo Alto Networks (NYSE: PANW), the global cybersecurity leader, announced today financial results for its fiscal first quarter 2021, ended October 31, 2020.

Total revenue for the fiscal first quarter 2021 grew 23% year over year to $946.0 million, compared with total revenue of $771.9 million for the fiscal first quarter 2020. GAAP net loss for the fiscal first quarter 2021 was $92.2 million, or $0.97 per diluted share, compared with GAAP net loss of $59.6 million, or $0.62 per diluted share, for the fiscal first quarter 2020.

Non-GAAP net income for the fiscal first quarter 2021 was $158.1 million, or $1.62 per diluted share, compared with non-GAAP net income of $104.8 million, or $1.05 per diluted share, for the fiscal first quarter 2020. A reconciliation between GAAP and non-GAAP information is contained in the tables below.

“We delivered another consecutive strong quarter of solid results, with first quarter billings of 21% year-over-year growth; both our firewall transformation and our Next-Generation Security services continue to make great progress, giving us confidence to raise previously issued guidance for the year,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “We introduced several significant product enhancements across the portfolio and were recognized by industry analysts as a leader in two Gartner Magic Quadrants as well as Zero Trust. Additionally, we are excited about our proposed acquisition of Expanse, Inc., which we announced last week.”

Financial Outlook
Palo Alto Networks provides guidance based on current market conditions and expectations.
For the fiscal second quarter 2021, we expect:

  • Total billings in the range of $1.17 billion to $1.19 billion, representing year-over-year growth of between 17% and 19%.
  • Total revenue in the range of $975 million to $990 million, representing year-over-year growth of between 19% and 21%.
  • Diluted non-GAAP net income per share in the range of $1.42 to $1.44, using 98 million to 100 million shares.
  • For the fiscal year 2021, we are raising guidance and expect:

  • Total billings in the range of $5.08 billion to $5.13 billion, representing year-over-year growth of between 18% and 19%.
  • Total revenue in the range of $4.09 billion to $4.14 billion, representing year-over-year growth of between 20% and 21%.
  • Diluted non-GAAP net income per share in the range of $5.70 to $5.80, using 99 million to 101 million shares.
  • Adjusted free cash flow margin of approximately 29%.
  • Our fiscal year 2021 guidance includes the expected impact from the proposed acquisition of Expanse, Inc. We expect Expanse to contribute approximately 100 basis points of billings growth and approximately 50 basis points of revenue growth, after acquisition accounting adjustments.

    Guidance for non-GAAP financial measures excludes share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, gains (losses) related to facility exit, non-cash charges related to convertible notes, foreign currency gains (losses), and income and other tax effects associated with these items, along with certain non-recurring expenses. We have not reconciled diluted non-GAAP net income per share guidance to GAAP net income (loss) per diluted share because we do not provide guidance on GAAP net income (loss) and would not be able to present the various reconciling cash and non-cash items between GAAP net income (loss) and non-GAAP net income, including share-based compensation expense, without unreasonable effort. Share-based compensation expense is impacted by the company’s future hiring and retention needs and, to a lesser extent, the future fair market value of the company’s common stock, all of which is difficult to predict and subject to constant change. The actual amounts of such reconciling items will have a significant impact on the company’s GAAP net income (loss) per diluted share.

    Earnings Call Information
    Palo Alto Networks will host a video webcast for analysts and investors to discuss the company’s fiscal first quarter 2021 results as well as the outlook for its fiscal second quarter 2021 today at 8:00 a.m. Eastern time/5:00 a.m. Pacific time. Open to the public, investors may access the webcast, supplemental financial information and earnings slides from the “Investors” section of the company’s website at investors.paloaltonetworks.com. A replay will be available three hours after the conclusion of the webcast and archived for one year.

    Forward-Looking Statements
    This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including statements regarding our financial outlook for the fiscal second quarter 2021 and fiscal year 2021, including the expected impact of our proposed acquisition of Expanse, Inc., and our proposed acquisition of Expanse, including the timing of the closing and the benefits to us and our end-customers once the transaction closes and we integrate Expanse into our operations. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: developments and changes in general market, political, economic, and business conditions; the duration and global impact of COVID-19, including the timeframes for and severity of social distancing and other mitigation requirements, the impact of COVID-19 on our customers’ purchasing decisions; our ability as an organization to acquire and integrate other companies, products or technologies in a successful manner; risks associated with managing our growth; the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our competitive position; our ability to attract and retain new customers; shift in priorities or delays in the development or release of new subscription offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; and length of sales cycles.

    Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K filed with the SEC on September 4, 2020, which is available on our website at investors.paloaltonetworks.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    Non-GAAP Financial Measures and Other Key Metrics
    Palo Alto Networks has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The company uses these non-GAAP financial measures and other key metrics internally in analyzing its financial results and believes that the use of these non-GAAP financial measures and key metrics are useful to investors as an additional tool to evaluate ongoing operating results and trends, and in comparing the company’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures or key metrics.

    The presentation of these non-GAAP financial measures and key metrics are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of the company’s historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

    Non-GAAP net income and net income per share, diluted. Palo Alto Networks defines non-GAAP net income as net income (loss) plus share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, gains (losses) related to facility exit, non-cash charges related to convertible notes, and intellectual property restructuring-related charges. The company also excludes from non-GAAP net income the foreign currency gains (losses) and tax effects associated with these items in order to provide a complete picture of the company’s recurring core business operating results. The company defines non-GAAP net income per share, diluted, as non-GAAP net income divided by the weighted-average diluted shares outstanding, which includes the potentially dilutive effect of the company’s employee equity incentive plan awards and the company’s convertible senior notes outstanding and related warrants, after giving effect to the anti-dilutive impact of the company’s note hedge agreements, which reduces the potential economic dilution that otherwise would occur upon conversion of the company’s convertible senior notes. Under GAAP, the anti-dilutive impact of the note hedge is not reflected in diluted shares outstanding. The company believes that excluding these items from non-GAAP net income and net income per share, diluted, provides management and investors with greater visibility into the underlying performance of the company’s core business operating results, meaning its operating performance excluding these items and, from time to time, other discrete charges that are infrequent in nature, over multiple periods.

    Billings. Palo Alto Networks defines billings as total revenue plus the change in total deferred revenue, net of acquired deferred revenue, during the period. The company considers billings to be a key metric used by management to manage the company’s business given the company’s hybrid-SaaS revenue model, and believes billings provides investors with an important indicator of the health and visibility of the company’s business because it includes subscription and support revenue, which is recognized ratably over the contractual service period, and product revenue, which is recognized at the time of shipment, provided that all other conditions for revenue recognition have been met. The company considers billings to be a useful metric for management and investors, particularly if sales of subscriptions continue to increase and the company experiences strong renewal rates for subscriptions and support.

    Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. In particular, the billings metric reported by the company includes amounts that have not yet been recognized as revenue. Additionally, many of the adjustments to the company’s GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in the company’s financial results for the foreseeable future, such as share-based compensation, which is an important part of Palo Alto Networks employees’ compensation and impacts their performance. Furthermore, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and the components that Palo Alto Networks excludes in its calculation of non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP results of operations. Palo Alto Networks compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. In the future, the company may also exclude non-recurring expenses and other expenses that do not reflect the company’s core business operating results.

    About Palo Alto Networks
    Palo Alto Networks, the global cybersecurity leader, is shaping the cloud-centric future with technology that is transforming the way people and organizations operate. Our mission is to be the cybersecurity partner of choice, protecting our digital way of life. We help address the world’s greatest security challenges with continuous innovation that seizes the latest breakthroughs in artificial intelligence, analytics, automation, and orchestration. By delivering an integrated platform and empowering a growing ecosystem of partners, we are at the forefront of protecting tens of thousands of organizations across clouds, networks, and mobile devices. Our vision is a world where each day is safer and more secure than the one before. For more information, visit www.paloaltonetworks.com.

    Palo Alto Networks, and the Palo Alto Networks logo are trademarks of Palo Alto Networks, Inc. in the United States and in jurisdictions throughout the world. All other trademarks, trade names, or service marks used or mentioned herein belong to their respective owners.

    Palo Alto Networks, Inc.

    Preliminary Condensed Consolidated Statements of Operations

    (In millions, except per share data)

    (Unaudited)

    Three Months Ended

    October 31,

    2020

    2019

    Revenue:

    Product

    $

    237.3

    $

    231.2

    Subscription and support

    708.7

    540.7

    Total revenue

    946.0

    771.9

    Cost of revenue:

    Product

    62.2

    65.1

    Subscription and support

    215.6

    152.6

    Total cost of revenue

    277.8

    217.7

    Total gross profit

    668.2

    554.2

    Operating expenses:

    Research and development

    237.4

    170.5

    Sales and marketing

    388.6

    365.7

    General and administrative

    86.7

    69.8

    Total operating expenses

    712.7

    606.0

    Operating loss

    (44.5)

    (51.8)

    Interest expense

    (40.2)

    (18.9)

    Other income, net

    2.4

    16.2

    Loss before income taxes

    (82.3)

    (54.5)

    Provision for income taxes

    9.9

    5.1

    Net loss

    $

    (92.2)

    $

    (59.6)

    Net loss per share, basic and diluted

    $

    (0.97)

    $

    (0.62)

    Weighted-average shares used to compute net loss per share, basic and diluted

    95.5

    96.6

    Palo Alto Networks, Inc.

    Reconciliation of GAAP to Non-GAAP Financial Measures

    (In millions, except per share amounts)

    (Unaudited)

    Three Months Ended

    October 31,

    2020

    2019

    GAAP net loss

    $

    (92.2)

    $

    (59.6)

    Share-based compensation-related charges

    211.5

    153.7

    Acquisition-related costs(1)

    13.1

    3.4

    Amortization expense of acquired intangible assets

    23.5

    16.7

    Litigation-related charges(2)

    1.8

    Non-cash charges related to convertible notes(3)

    35.1

    15.5

    Foreign currency gain associated with non-GAAP adjustments

    (0.1)

    (0.5)

    Income tax and other tax adjustments related to the above

    (34.6)

    (24.4)

    Non-GAAP net income

    $

    158.1

    $

    104.8

    GAAP net loss per share, diluted

    $

    (0.97)

    $

    (0.62)

    Share-based compensation-related charges

    2.17

    1.56

    Acquisition-related costs(1)

    0.14

    0.04

    Amortization expense of acquired intangible assets

    0.25

    0.17

    Litigation-related charges(2)

    0.02

    0.00

    Non-cash charges related to convertible notes(3) 

    0.37

    0.16

    Foreign currency (gain) loss associated with non-GAAP adjustments

    0.00

    (0.01)

    Income tax and other tax adjustments related to the above

    (0.36)

    (0.25)

    Non-GAAP net income per share, diluted

    $

    1.62

    $

    1.05

    GAAP weighted-average shares used to compute net loss per share, diluted

    95.5

    96.6

    Weighted-average effect of potentially dilutive securities(4)

    2.2

    3.5

    Non-GAAP weighted-average shares used to compute net income per share, diluted

    97.7

    100.1

    (1)

    Consists of acquisition transaction costs, share-based compensation related to the cash settlement of certain equity awards, and costs to terminate certain employment, operating lease, and other contracts of the acquired companies.

    (2)

    Consists of the amortization of intellectual property licenses and covenant not to sue.

    (3)

    Consists primarily of non-cash interest expense related to the company’s convertible senior notes.

    (4)

    Non-GAAP net income per share, diluted, includes the potentially dilutive effect of employee equity incentive plan awards and convertible senior notes outstanding and related warrants. In addition, non-GAAP net income per share, diluted includes the anti-dilutive impact of the company’s note hedge agreements. 

    Palo Alto Networks, Inc.

    Calculation of Billings

    (In millions)

    (Unaudited)

    Three Months Ended

    October 31,

    2020

    2019

    Total revenue

    $

    946.0

    $

    771.9

    Add: change in total deferred revenue, net of acquired deferred revenue

    136.8

    125.5

    Billings

    $

    1,082.8

    $

    897.4

    Palo Alto Networks, Inc.

    Preliminary Condensed Consolidated Balance Sheets

    (In millions)

    (Unaudited)

    October 31, 2020

    July 31, 2020

    Assets

    Current assets:

    Cash and cash equivalents

    $

    2,142.0

    $

    2,958.0

    Short-term investments

    1,075.6

    789.8

    Accounts receivable, net

    675.5

    1,037.1

    Prepaid expenses and other current assets

    407.8

    344.3

    Total current assets

    4,300.9

    5,129.2

    Property and equipment, net

    337.9

    348.1

    Operating lease right-of-use assets

    251.2

    258.7

    Long-term investments

    873.2

    554.4

    Goodwill

    1,968.6

    1,812.9

    Intangible assets, net

    388.8

    358.2

    Other assets

    605.9

    603.9

    Total assets

    $

    8,726.5

    $

    9,065.4

    Liabilities and stockholders’ equity

    Current liabilities:

    Accounts payable

    $

    48.5

    $

    63.6

    Accrued compensation

    188.4

    322.2

    Accrued and other liabilities

    260.7

    256.8

    Deferred revenue

    2,137.5

    2,049.1

    Total current liabilities

    2,635.1

    2,691.7

    Convertible senior notes, net

    3,119.2

    3,084.1

    Long-term deferred revenue

    1,809.3

    1,761.1

    Long-term operating lease liabilities

    323.9

    336.6

    Other long-term liabilities

    92.0

    90.1

    Stockholders’ equity:

    Preferred stock

    Common stock and additional paid-in capital

    2,003.9

    2,259.2

    Accumulated other comprehensive income

    3.2

    10.5

    Accumulated deficit

    (1,260.1)

    (1,167.9)

    Total stockholders’ equity

    747.0

    1,101.8

    Total liabilities and stockholders’ equity

    $

    8,726.5

    $

    9,065.4

    SOURCE Palo Alto Networks, Inc.

    www.paloaltonetworks.com

    Source: www.prnewswire.com

    Author: Palo Alto Networks, Inc.


    Real estate investment trust - Wikipedia

    Real estate investment trust – Wikipedia

  • Maximum gearing ratio of 35%
  • Annual valuation of its properties
  • Restriction to certain types of investments the S-REITs can make
  • Distribution of at least 90% of its taxable income
  • REITs have to be established as public listed companies (julkinen osakeyhtiö, Oyj) for this specific purpose. When the REIT is established the minimum equity is 5M€ and it has to be distributed over five separate investors.
  • Minimum holding period: five years.
  • At least 80% of its assets have to be invested in residential real-estate.
  • At least 80% of the REIT’s gross revenues must come from residential rental income.
  • At least 90% of the REIT’s taxable income, excluding unrealised capital gains, has to be distributed to its shareholders through dividends.
  • The corporation is income-tax-exempt, but the shareholders will have to pay individual income tax on the dividends.
  • The largest individual shareholder may own less than 10% of company shares (maximum 30% till the end of 2013).
  • REITs have to be established as corporations – “REIT-AG” or “REIT-Aktiengesellschaft”.
  • At least 75% of its assets have to be invested in real estate.
  • At least 75% of the G-REIT’s gross revenues must be real-estate related.
  • At least 90% of the REIT’s taxable income has to be distributed to its shareholders through dividends.
  • The corporation is income-tax-exempt, but the shareholders will have to pay individual income tax on the dividends.
  • Investments in residential properties built before 1 January 2007 are not permitted.[51]
  • the abolition of the 2% entry charge to join the regime – this should make REITs more attractive due to reduced costs
  • relaxation of the listing requirements – REITs can now be AIM quoted[58] (the London Stock Exchange’s international market for smaller growing companies) – making a listing more attractive due to reduced costs and greater flexibility
  • a REIT now has a three-year grace period before having to comply with close company rules (a close company is a company under the control of five or fewer investors)
  • a REIT will not be considered to be a close company if it can be made close by the inclusion of institutional investors (authorised unit trusts, OEICs, pension schemes, insurance companies and bodies which are sovereign immune) – this makes REITs attractive investment trusts[citation needed]
  • the interest cover test of 1.25 times finance costs is not as onerous
  • at least 70% of assets must be invested in financing or owning of real estate assets, with the remaining amount invested in government-issued securities or debt-instrument mutual funds.[64]
  • Acquired or developed real estate assets must be income generating and held for at least four years.[64]
  • If shares, known as Certificados de Participación Inmobiliarios or CPIs, are issued privately, there must be more than 10 unrelated investors in the FIBRA.[64]
  • The FIBRA must distribute 95% of annual profits to investors.[64]
  • Be structured as a corporation, trust, or association[70]
  • Be managed by a board of directors or trustees[71]
  • Have transferable shares or transferable certificates of interest[72]
  • Otherwise be taxable as a domestic corporation[73]
  • Not be a financial institution or an insurance company[74]
  • Be jointly owned by 100 persons or more[75]
  • Have 95 percent of its income derived from dividends, interest, and property income[76]
  • Pay dividends of at least 90% of the REIT’s taxable income[77]
  • Have no more than 50% of the shares held by five or fewer individuals during the last half of each taxable year (5/50 rule)[78]
  • Have at least 75% of its total assets invested in real estate[79]
  • Derive at least 75% of its gross income from rents or mortgage interest[80]
  • Have no more than 25% of its assets invested in taxable REIT subsidiaries.[81]
  • Build and operate apartment units (AVB);
  • Build and operate retirement housing;
  • Build and/or operate retail malls; and
  • Build and/or operate office buildings.
  • Australian real estate investment trust
  • Closed-end fund
  • EPRA index
  • Income trust
  • Investment trust
  • Mutual fund
  • Real estate investing
  • Real estate mortgage investment conduit (REMIC)
  • Royalty trust
  • Stock market
  • Taxable REIT subsidiaries
  • List of U.S. REITs
  • Nareit – National Association of Real Estate Investment Trusts
  • Real Estate Investment Trusts at Curlie
  • EPRA – European Public Real Estate Association
  • Source: en.wikipedia.org

    Author: Authority control
    NDL: 00576795


    Highlights from the Ratings and Financial Report for Steel Dynamics Inc. (STLD)

    Highlights from the Ratings and Financial Report for Steel Dynamics Inc. (STLD)

    Steel Dynamics Inc. (NASDAQ:STLD) went up by 4.56% from its latest closing price compared to the recent 1-year high of $35.78. The company’s stock price has collected 8.05% of gains in the last five trading sessions. The Wall Street Journal reported on 10/28/20 that Tariffs Didn’t Fuel Revival for American Steel

    Steel Dynamics Inc. (NASDAQ:STLD) scored a price-to-earnings ratio above its average ratio, recording 15.28 x from its present earnings ratio. Plus, the 36-month beta value for STLD is at 1.37. Opinions of the stock are interesting as 6 analysts out of 12 who provided ratings for Steel Dynamics Inc. declared the stock was a “buy,” while 0 rated the stock as “overweight,” 6 rated it as “hold,” and 0 as “sell.”

    Sponsored

    The average price from analysts is $34.40, which is -$0.22 below the current price. STLD currently public float of 199.51M and currently shorts hold a 2.01% ratio of that float. Today, the average trading volume of STLD was 1.79M shares.

    STLD stocks went up by 8.05% for the week, with a monthly jump of 3.68% and a quarterly performance of 12.11%, while its annual performance rate touched 10.50%. The volatility ratio for the week stands at 3.64% while the volatility levels for the past 30 days are set at 3.44% for Steel Dynamics Inc.. The simple moving average for the period of the last 20 days is 7.48% for STLD stocks with a simple moving average of 26.91% for the last 200 days.

    BofA/Merrill gave a rating of “Underperform” to STLD, setting the target price at $23 in the report published on May 06th of the current year.

    After a stumble in the market that brought STLD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.25% of loss for the given period.

    Volatility was left at 3.44%, however, over the last 30 days, the volatility rate increased by 3.64%, as shares surge +3.68% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +14.22% upper at present.

    During the last 5 trading sessions, STLD rose by +8.05%, which changed the moving average for the period of 200-days by +15.86% in comparison to the 20-day moving average, which settled at $32.27. In addition, Steel Dynamics Inc. saw 1.70% in overturn over a single year, with a tendency to cut further gains.

    Reports are indicating that there were more than several insider trading activities at STLD starting from Seaman Bradley S, who purchase 6,000 shares at the price of $20.85 back on Mar 11. After this action, Seaman Bradley S now owns 37,328 shares of Steel Dynamics Inc., valued at $125,100 using the latest closing price.

    Alvarez Miguel, the Senior Vice President of Steel Dynamics Inc., purchase 9,300 shares at $21.32 during a trade that took place back on Mar 10, which means that Alvarez Miguel is holding 25,649 shares at $198,276 based on the most recent closing price.

    Current profitability levels for the company are sitting at:

  • +9.44 for the present operating margin
  • +13.61 for the gross margin
  • The net margin for Steel Dynamics Inc. stands at +6.41. The total capital return value is set at 15.04, while invested capital returns managed to touch 10.27. Equity return is now at value 11.70, with 5.70 for asset returns.

    Based on Steel Dynamics Inc. (STLD), the company’s capital structure generated 68.94 points at debt to equity in total, while total debt to capital is 40.81. Total debt to assets is 36.24, with long-term debt to equity ratio resting at 66.31. Finally, the long-term debt to capital ratio is 39.25.

    When we switch over and look at the enterrpise to sales, we see a ratio of 0.83, with the company’s debt to enterprise value settled at 0.32. The receivables turnover for the company is 11.09 and the total asset turnover is 1.35. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.22.

    Source: newsheater.com

    Author: Daisy Galbraith


    Nokia Stock Still Hobbled by 5G Ineptitude

    Nokia Stock Still Hobbled by 5G Ineptitude

    Some stories — you know, crazy pandemics, crazier elections, craziest wardrobe fails — make so many headlines these days that they’ve shoved otherwise major developments off to the side. One of those, 5G technology, promises to change mobile communications like nothing else in generations. Vying for a nice slice of the pie is Nokia (NYSE:NOK), much to the delight of those who own Nokia stock.

    The trouble is that with this 5G bakeoff, Nokia will at best win ugly and at worst lose uglier, snatching defeat from the jaws of victory. Just a few months back, Nokia had a full tummy eating the dust of China’s privately held Huawei Technologies — then the world’s undisputed 5G leader. But when the Commerce Department, citing Chinese espionage concerns, cut off Huawei’s access to advanced computer chips, it created a mobile miracle for Nokia and other players, including its Swedish rival Ericsson (NASDAQ:ERIC).

    The $21 billion question, then (that’s Nokia’s market capitalization) centers on whether the Finnish company has leveraged or squandered this once-in-a-cellular-lifetime opportunity. Effective Aug. 1, new CEO Pekka Lundmark was given the reigns to make victory possible. How’s he doing so far? And how’s Nokia stock doing given its recently ended quarter?

    The vernacular phrase quants and investment wonks use to describe NOK is “no can do.” If Lundmark’s return to Nokia after two decades away was supposed to inspire the troops, it’s hardly done any wonders for shareholders. Since August, Nokia stock has lopped off a quarter of its value.

    Granted, much of the slump came off a terrible third quarter that largely predates Lundmark’s arrival. When that earnings report was released Oct. 29, shares of Nokia stock tumbled 13% as the company cut its full-year and margin forecasts.

    You have to admire Lundmark for putting on a brave face for his first-ever earnings release, given the glum nature of the news. He proclaimed that Nokia would do “whatever it takes” to take the lead in 5G — which is fine, except for a few things. Very big things. Huge things no new CEO can just pretend or pray will go away like a screened spam caller.

    First: If you can’t take the 5G lead or get anywhere close to it when the top dog is effectively cut off at the knees — which would require, in essence, nothing but just showing up — then you’re not going to convince anyone you’ll do “whatever it takes.”

    Second: Lundmark needs to prove he’s more than just a feel-good story. Sure, he’s returning to the company where he built his career — but hasn’t been around Nokia since the flip-phone era. He honed his CEO chops at Fortum (OTCMKTS:FOJCF), a Finnish energy company, and the analogy that could hold is that a championship football coach might not find his winning skills translate well to synchronized swimming.

    Finally: Nokia stock has lacked consistency and upward trajectory. While dismal this quarter, Nokia’s net profit for the April-June period shot up 22% to $376 million, this despite the challenges all telecoms have faced due to the novel coronavirus. So are we looking at a company on its way up? Or down? Or up and down?

    You tell me. If long-run prices were long distance calls, Nokia sends more mixed signals than you’d find in a Manhattan subway during a solar eclipse. Since 2016, prices have waxed or waned 25% or more every single year, and sometimes both (2017). Since January 2019, Nokia stock has been on a frightening nosedive of 37%. Quick Pekka! Call in the analysts! Who say…

    Well, they’re hanging in there. The Wall Street Journal reports that currently, more than half (17 of 32) consider Nokia a buy. But 13 call it a hold and with a consensus share price target of $4.47 per share, we’re not talking champagne in the bathtub. (If we were, we’d kindly ask you not to drop your $700 Nokia 8.3 phone in there.) At present, Nokia stock trades at $3.75 so yes, a 19% lift would be nice. But again, so much depends on this little thing called 5G.

    I’m going to be honest: Nokia stock stumps me. On paper, it looks like it has all the elements to succeed, including an attractive price-to-earnings ratio of 24-to-1. With Huawei hobbled, 5G dominance is very much in the air and Nokia is still in the early innings of a new game. The new CEO may see paths to victory his predecessors did not.

    But to my mind and my gut, Nokia’s only consistency over the years has been its inconsistency. Bold moves, including the purchase of Alcatel-Lucent for $16.6 billion in 2015, have fizzled badly. Some people would call this a great time to buy the bottom; I’m more apt to call it flinging dollars into a broad, flat mud puddle.

    All that to say: While it’s not at all proper to write Nokia’s 5G epitaph, the company hasn’t proven ready to write a new chapter either. Those who hold Nokia stock only know the first line: “Whatever it takes,” right? Now that’s making a statement. Just not a case.

    On the date of publication, Lou Carlozo did not have (either directly or indirectly) any positions in the securities mentioned in this article.

    Source: stockdailynews.co

    Author: by admin


    Highlights from the Ratings and Financial Report for Boston Properties Inc. (BXP)

    Highlights from the Ratings and Financial Report for Boston Properties Inc. (BXP)

    Boston Properties Inc. (NYSE:BXP) went up by 5.20% from its latest closing price compared to the recent 1-year high of $147.83. The company’s stock price has collected 24.81% of gains in the last five trading sessions. MarketWatch.com reported on 11/13/20 that Boston Properties Inc. stock rises Friday, outperforms market

    Boston Properties Inc. (NYSE:BXP) scored a price-to-earnings ratio above its average ratio, recording 14.31 x from its present earnings ratio. Plus, the 36-month beta value for BXP is at 1.12. Opinions of the stock are interesting as 9 analysts out of 21 who provided ratings for Boston Properties Inc. declared the stock was a “buy,” while 2 rated the stock as “overweight,” 10 rated it as “hold,” and 0 as “sell.”

    Sponsored

    The average price from analysts is $99.74, which is $5.05 above the current price. BXP currently public float of 155.43M and currently shorts hold a 2.45% ratio of that float. Today, the average trading volume of BXP was 1.33M shares.

    BXP stocks went up by 24.81% for the week, with a monthly jump of 15.25% and a quarterly performance of 6.21%, while its annual performance rate touched -33.52%. The volatility ratio for the week stands at 6.83% while the volatility levels for the past 30 days are set at 3.89% for Boston Properties Inc.. The simple moving average for the period of the last 20 days is 17.40% for BXP stocks with a simple moving average of -3.47% for the last 200 days.

    UBS, on the other hand, stated in their research note that they expect to see BXP reach a price target of $83. The rating they have provided for BXP stocks is “Neutral” according to the report published on October 16th, 2020.

    Piper Sandler gave a rating of “Neutral” to BXP, setting the target price at $100 in the report published on July 30th of the current year.

    After a stumble in the market that brought BXP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -38.02% of loss for the given period.

    Volatility was left at 3.89%, however, over the last 30 days, the volatility rate increased by 6.83%, as shares surge +17.96% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +4.55% upper at present.

    During the last 5 trading sessions, BXP rose by +24.81%, which changed the moving average for the period of 200-days by -36.09% in comparison to the 20-day moving average, which settled at $78.74. In addition, Boston Properties Inc. saw -33.54% in overturn over a single year, with a tendency to cut further losses.

    Reports are indicating that there were more than several insider trading activities at BXP starting from KOOP BRYAN J, who purchase 2,000 shares at the price of $78.00 back on May 22. After this action, KOOP BRYAN J now owns 2,585 shares of Boston Properties Inc., valued at $156,000 using the latest closing price.

    DUNCAN BRUCE W, the Director of Boston Properties Inc., purchase 5,000 shares at $74.12 during a trade that took place back on May 15, which means that DUNCAN BRUCE W is holding 21,000 shares at $370,585 based on the most recent closing price.

    Current profitability levels for the company are sitting at:

  • +21.55 for the present operating margin
  • +40.19 for the gross margin
  • The net margin for Boston Properties Inc. stands at +17.58. The total capital return value is set at 3.24, while invested capital returns managed to touch 3.00. Equity return is now at value 23.30, with 6.10 for asset returns.

    Based on Boston Properties Inc. (BXP), the company’s capital structure generated 215.25 points at debt to equity in total, while total debt to capital is 68.28. Total debt to assets is 57.49, with long-term debt to equity ratio resting at 222.58. Finally, the long-term debt to capital ratio is 68.12.

    When we switch over and look at the enterrpise to sales, we see a ratio of 11.94, with the company’s debt to enterprise value settled at 0.35. The receivables turnover for the company is 15.03 and the total asset turnover is 0.14.

    Source: newsheater.com

    Author: Melissa Arnold


    Palo Alto Networks Reports Fiscal First Quarter 2021 Financial Results


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