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2 Winner Stocks to Watch Friday

Bitauto Holdings, Adobe shares up on financial results

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Jun 12, 2020
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Shares of Bitauto Holdings Ltd. (

BITA, Financial) gained almost 10% on Friday after reporting first-quarter revenue of $245.5 million and an earnings loss of $1.27 per share. Earnings fell 47 cents short of analysts' estimates, but beat revenue expectations by $0.84 million.

CEO Andy Zhang had the following to say:

"The COVID-19 outbreak and subsequent nationwide lockdown contributed to a significant year-over-year decline in new passenger vehicle sales for the first quarter of 2020, adversely impacting our advertising and transaction businesses. However, we were pleased that our key operational metrics maintained stable growth despite the challenging situation."

Revenue from the advertising and subscription business was $109.5 million, driven by marketing spending by automakers caused by the continued decline in new car sales and offset by a slight growth in the subscription business. Sales in the transaction services business were $120 million. The digital marketing solutions business recorded $16 million in sales.

The gross profit was $156.6 million, down from $235.7 million in the prior-year quarter.

The net loss was $180.6 million, compared to net income of $13.1 million in the year-ago quarter. The non-GAAP net loss was $146.6 million, compared to non-GAAP net income of $40.2 million last year.

At the end of the quarter, the company had cash and cash equivalents and restricted cash of $1.17 billion. Looking at cash generation, the cash provided by operating activities, cash provided by investing activities and cash used in financing activities in the first quarter of 2020 were $29.7 million, $574.9 million and $496.1 million.

Looking ahead to the second quarter, the company expects revenue between $261.3 million to $275.4 million.

During the first quarter, Jim Simons' Renaissance Technologies established a new position of 19,500 shares.

Shares of Adobe Inc. (

ADBE, Financial) gained more than 3% on Friday after reporting second-quarter revenue of $3.13 billion and earnings of $2.45 per share. The company fell $30 million short of revenue expectations, but beat earnings estimates by 13 cents.

Sales in the Digital Media segment were $2.23 billion, up 18% year over year. Creative revenue rose to $1.87 billion and Document Cloud revenue reached $360 million.

Digital Media annualized recurring revenue rose to $9.17 billion, a quarter-over-quarter increase of $443 million. Creative ARR increased to $7.93 billion, and Document Cloud ARR rose to $1.24 billion.

The Digital Experience segment's sales were $826 million, representing 5% year-over-year growth. Subscription revenue was $707 million, representing 8% year-over-year growth. Digital Experience subscription revenue, excluding Advertising Cloud sales, inched up 18%.

Further, the GAAP operating income was $1.02 billion and non-GAAP operating income was $1.34 billion. GAAP net income was $1.10 billion and non-GAAP net income was $1.19 billion.

Ken Fisher (Trades, Portfolio) boosted his stake by 24% to 5,131,883 shares. Chase Coleman (Trades, Portfolio) boosted his  holding by 13% to 169,000 shares. Frank Sands (Trades, Portfolio) curbed his position by 15% to 2,910,774 shares, while Steven Cohen (Trades, Portfolio) sold out of the stock.

Disclosure: The author holds no position in any stocks mentioned.

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