Although the bulk of the second quarter earnings season has already passed, five companies are each in the spotlight this morning after reporting the financial results for their latest quarters yesterday.
In this article, we’ll examine how Five Below Inc (NASDAQ:FIVE), salesforce.com, inc. (NYSE:CRM), Box Inc (NYSE:BOX), Infoblox Inc (NYSE:BLOX), and Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) performed during their latest quarters and use SEC filings to determine how the world’s most prominent hedge funds are positioned in them.
Hedge fund sentiment is an important metric for assessing the long-term profitability. At Insider Monkey, we track over 750 hedge funds, whose quarterly 13F filings we analyze and determine their collective sentiment towards several thousand stocks. However, our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (see the details here).
Softer-Than-Expected Guidance at Five Below
Five Below Inc (NASDAQ:FIVE) shares are in the red in extended market trading after the company reported second quarter earnings of $0.18 per share on revenue of $220.1 million (up by 20.8% year-over-year due to a 3.9% increase in comparable-store sales). Although earnings beat the consensus estimate by $0.01 per share and revenue exceeded the average target by $0.51 million, the company’s full-year revenue guidance was lower-than-expected. Management anticipates full-year 2016 revenue of $1.00 billion-to-$1.009 billion, slightly below estimates of $1.01 billion on the top-end of the range. Five Below expects to deliver EPS of $1.28-to-$1.32 for the year. Of the 749 hedge funds that Insider Monkey tracks which filed 13F’s for the June 30 reporting period, 13 were long Five Below Inc (NASDAQ:FIVE).
Salesforce.com’s Guidance Disappoints
Although it comfortably beat second quarter expectations, salesforce.com, inc. (NYSE:CRM)‘s third quarter guidance wasn’t as strong as expected and its stock is off by around 8% in extended trading as a result. For the second quarter, salesforce.com, inc. (NYSE:CRM) reported EPS of $0.24 on revenue of $2.04 billion, beating estimates by $0.02 and $20 million respectively. Sales grew by 25.2% year-over-year, while deferred revenue jumped by 26% year-over-year. What hurt the stock was the company’s third quarter guidance of adjusted EPS of $0.20-to-$0.21 on revenue of $2.11 billion-to-$2.12 billion, while analysts were expecting $0.24 per share in earnings and $2.13 billion in sales. Eashwar Krishnan‘s Tybourne Capital Management raised its stake in the cloud enterprise software provider by 141% during the second quarter, to over 2.36 million shares which accounted for 9.74% of its portfolio’s value.
On the next page we’ll examine the results out of Box Inc, Infoblox Inc, and Ollie’s Bargain Outlet.
Box Inc’s Results Come In Ahead of Estimates
Box Inc (NYSE:BOX) lost $0.14 per share on revenue of $95.7 million for its second quarter of fiscal year 2017, which nonetheless beat estimates by $0.05 per share and $1.05 million respectively. Despite present and future competition from various companies with more resources, Box’s sales rose by 30.3% year-over-year while its billings rose by 34% year-over-year, to $107 million. The company added more than 4,000 paying new customers during the period, growing its paying customer base to 66,000 businesses. For the full fiscal year, Box’s management is guiding for adjusted EPS between a loss of $0.69 and a loss of $0.67, an improvement upon the previous range of a between a loss of $0.78 and a loss of $0.75. 13 funds that we track had a long position in Box Inc (NYSE:BOX) as of the most recent 13-F reporting period, up by two funds quarter-over-quarter.
Infoblox Reports Results
Infoblox Inc (NYSE:BLOX) reported fourth quarter of fiscal year 2016 earnings of $0.08 per share, beating estimates by $0.02. Revenue for the period was $86.3 million, down by 0.8% year-over-year but $1.79 million better than estimates. Total adjusted net income for the full fiscal year was $0.43 per share, up from $0.38 per share in the 2015 fiscal year. Likewise total revenue for fiscal 2016 was $358 million, 17% higher than the previous fiscal year. For its 2017 fiscal year, Infoblox’s expects adjusted operating margin of 16%-to-18% and revenue of $360 million-to-$380 million. Infoblox’s guidance for the next year might not matter though. According to Reuters, the security firm has “launched a process to sell itself after it received buyout interest from private equity firms,” with Thoma Bravo LLC among them. 25 funds in our system were long Infoblox Inc (NYSE:BLOX) at the end of June.
Ollie’s Bargain Beats Estimates
Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) bulls are bound to have a good day after the company reported strong second quarter results yesterday. For the three-month period, the retailer earned $0.21 per share on revenue of $211.3 million, beating the consensus targets by $0.03 and $3.69 million respectively. Revenue rose by 16.1% year-over-year and adjusted EBITDA spiked by 27% as comparable-store sales rose by 3.5% and the company opened eight new stores. For the full-year, Ollie’s is projecting adjusted EPS of $0.88-to-$0.90 on revenue of $880 million-to-$885 million. 19 funds in our database owned shares of Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) at the end of the second quarter, up by eight from the end of the previous quarter.