What happened <\/p>\n
Digital-coupons specialist Quotient Technology (NYSE: QUOT) -- the company formerly and better known as \"Coupons.com\" -- saw its stock spike 21.1% by the closing bell on Friday. <\/p>\n
This being earnings season, you might imagine that Quotient's remarkable stock performance Friday had something to do with an earnings report. You'd be right. <\/p>\n
Thursday night, you see -- after close of trading for that day, but before trading resumed on Friday morning -- Quotient reported its fiscal fourth-quarter and full-year earnings for 2016. Expected to earn just $0.02 per share for the quarter on $70 million in revenue, Quotient instead turned in $75.4 million in revenue (9% better than in Q4 2015), and earned $0.04 per share on that revenue -- twice what had been expected. <\/p>\n
Image source: Getty Images. <\/p>\n
Continue Reading Below <\/p>\n
ADVERTISEMENT <\/p>\n
Full-year results were similarly good. Revenues for the year jumped 16% to $275.2 million for fiscal 2016. And while Quotient was fully expected to report a loss for the year, its $0.23-per-share GAAP (generally accepted accounting principles) loss was at least 28% less than the $0.32 per share that Quotient lost in fiscal 2015. Meanwhile, Quotient reported positive free cash flow from its business of $15.5 million -- a remarkable improvement from the $4 million cash burn the company experienced in fiscal 2015. <\/p>\n
Quotient also provided guidance for fiscal 2017. Management's prediction for earnings came in the form of a highly malleable \"adjusted EBITDA\" (earnings before interest, taxes, depreciation, and amortization) number that we'll dismiss without comment. On the other hand, management also said it expects to book between $307 million and $317 million in sales. That's a more generally accepted metric, and one that suggests a respectable 13.5% pace of growth in the new year. <\/p>\n
Valued at $1.2 billion today -- and with $175 million in cash and short-term investments, and not a lick of debt -- Quotient now carries an enterprise value of roughly $1 billion, and therefore an EV\/FCF (enterprise value to free cash flow) ratio of about 63.5. The growth rate is respectable, but I have to conclude that despite its turning in a very strong fourth quarter, Quotient's stock is too expensive to invest in at this price point. <\/p>\n
10 stocks we like better than Quotient Technology When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* <\/p>\n
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Quotient Technology wasn't one of them! That's right -- they think these 10 stocks are even better buys. <\/p>\n
Click here to learn about these picks! <\/p>\n
*Stock Advisor returns as of February 6, 2017<\/p>\n
Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. <\/p>\n
<\/p>\n
More here: <\/p>\n
Why Quotient Technology Inc. Stock Surged 21% Higher on Friday - Fox Business<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" What happened Digital-coupons specialist Quotient Technology (NYSE: QUOT) -- the company formerly and better known as \"Coupons.com\" -- saw its stock spike 21.1% by the closing bell on Friday. This being earnings season, you might imagine that Quotient's remarkable stock performance Friday had something to do with an earnings report Continue reading