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Omar Venerio
Omar Venerio
Articles (1357) 

3 Stocks Move Wednesday

Etsy and Planet Fitness rise, Primo Water falls

November 07, 2018 | About:

Shares of Etsy Inc. (NASDAQ:ETSY) climbed more than 25% on Wednesday after announcing third-quarter results. The company posted earnings of 15 cents per share on $150.37 million in revenue, a 41.4% year-over-year growth. The company beat earnings estimates by 8 cents and surpassed revenue expectations by $0.49 million.

Gross profit was $103.4 million, up 47.7% year over year, and the gross margin was 68.8%, up 300 basis points from 65.8% in the year-ago quarter.

Non-GAAP adjusted earnings before interest, taxes, depreciation and amortization for the quarter were $34 million, growing 49.5% year over year. The non-GAAP adjusted EBITDA margin was 22.6%, up 120 basis points year over year due to revenue growth caused by changes in the pricing model.

Shares of Planet Fitness Inc. (NYSE:PLNT) gained more than 17% after the company posted third-quarter earnings of 28 cents per share on $136.66 million in revenue, reflecting 40.2% year-over-year growth. The company beat earnings estimates by 4 cents and revenue expectations by $10.56 million.

Franchise segment revenue grew 54.2% to $54.8 million from $35.6 million in the prior-year quarter. Sales in the corporate-owned stores segment increased 24% to $35.4 million. Equipment segment revenue increased 39.1% to $46.4 million due to an increase in equipment sales to new stores and an increase in replacement equipment sales to existing franchisee-owned stores.

The adjusted earnings before interest, taxes, depreciation and amortization grew 24% to $53.8 million.

Shares of Primo Water Corp. (NASDAQ:PRMW) fell more than 21% after reporting third-quarter results. The company registered 18 cents in earnings per share and revenue of $81.77 million, down 0.5% year over year. The company fell 18 cents short of earnings estimates and $1.49 million short of revenue expectations.

The gross margin was 28.7%, down from 30.3% the year prior due to changes in sales mix.

Looking ahead, the company now expectnet sales for the full year to be between $304 million and $308 million and adjusted EBITDA for the year to range from $54 million to $58 million.

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

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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