Wednesday, June 4, 2014

How Will Bazaarvoice (BV) Stock React To Its Earnings Results?

NEW YORK (TheStreet) -- Bazaarvoice Inc. (BV) reported its fiscal 2014 fourth quarter and full year results which showed an 11% increase in revenue for the quarter to $43.1 million from the year ago period. 

The company, which connects brands and retailers to the authentic voices of customers, reported revenue of $168.1 million for the full year, a 15% growth from last year.

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Adjusted EBITDA for the 2014 fourth quarter was a loss of -$7.6 million, compared to a loss of -$9.1 million from the 2013 fourth quarter, while adjusted EBITDA for the fiscal year was a loss of -$21.9 million, consistent with last year's loss of the same amount. Non GAAP net loss for the 2014 fourth quarter was 11 cents per share, compared to 15 cents per share from the 2013 fourth quarter and non GAAP net loss for the year was 34 cents versus 35 cents per share from 2013.

Shares of Bazaarvoice are lower by -1.69% to $6.12 in after hours trading today. Separately, TheStreet Ratings team rates BAZAARVOICE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate BAZAARVOICE INC (BV) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Internet Software & Services industry and the overall market, BAZAARVOICE INC's return on equity significantly trails that of both the industry average and the S&P 500. Net operating cash flow has significantly decreased to -$18.99 million or 181.67% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. BV has underperformed the S&P 500 Index, declining 7.99% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time. BAZAARVOICE INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BAZAARVOICE INC reported poor results of -$0.93 versus -$0.43 in the prior year. This year, the market expects an improvement in earnings (-$0.26 versus -$0.93). The gross profit margin for BAZAARVOICE INC is currently very high, coming in at 72.78%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -16.59% is in-line with the industry average. You can view the full analysis from the report here: BV Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more

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