Wednesday Morning’s Market Insights: Glu Mobile Inc. (GLUU), Relypsa Inc (RLYP), Illumina, Inc. (ILMN), Priceline Group Inc (PCLN)


Glu Mobile Inc. (NASDAQ:GLUU) is falling over 14% in pre-market trading after the company released Q1:16 earnings yesterday after market close. The company posted revenues of $54 million for the quarter, compared to consensus estimates of $54.5 million, and a loss of $(0.03) per share, compared to estimates of a loss of $(0.05) per share. However, investors could not take eyes off Q2 guidance that fell between $46 million and $49 million, missing consensus expectations of $59 million. The company also announced they are cutting 85% of its workforce which will result in a $1.5 million expense related to severance and benefits.

According to TipRanks, out of the 6 analysts who have rated the company in the last 3 months, 4 gave a Buy rating and 2 remain on the sidelines. The average 12-month price target for the stock is $4.06, marking 52% upside from where shares last closed.

Relypsa Inc (NASDAQ:RLYP) is down over 10% in pre-market trading after the company announced $150 million debt financing yesterday after close. The company secured the loan through Athyrium Capital Management and will mature on April 2022 unless the company can repay it sooner. The loans have a 11.5% interest rate per year which the company will start paying on June 15, 2016. Relypsa plans to use $17 million to pay other debts from Oxford Finance LLC and Silicon Valley Bank. The rest of the loan will be used to finance Veltassa and for other general corporate purposes. CFO Kristine M. Ball stated, “We are pleased to announce a debt financing that enhances our cash position as we focus on developing the hyperkalemia market and bringing Veltassa to patients in need.”

According to TipRanks, out of the 11 analysts who have rated the company in the last 3 months, 9 gave a Buy rating, 1 gave a Sell rating, and 1 remains on the sidelines. The average 12-month price target for the stock is $33.50, marking a 93% upside from current levels.

Illumina, Inc. (NASDAQ:ILMN) is down 4% after the company reported Q1:16 earnings yesterday after market close. The genetic sequencing company posted revenues of $571.8 million for the quarter, compared to consensus estimates of $577.8 million, and earnings of $0.71 per share, compared to estimates of $0.74 per share. The company also disappointed with guidance for Q2, predicting EPS of $0.72-$0.74 compared to consensus estimates of $0.84.

Analyst Dan Leonard of Leerink Partners weighed in on the stock following the announcement, maintaining a Market Perform rating while reducing his price target to $145 from $165. He states, “ILMN’s capacity utilization data suggest no meaningful sequencing overcapacity in the market in aggregate. European utilization is even lower than the U.S., which weakens any notion of greater capacity centralization in Europe. Rather, the Q1 result was driven by a shortfall in the traditional HiSeq (ex X) product line, which fell $14M below plan (19 instruments), as well as some delayed revenue recognition.”

According to TipRanks’ statistics, out of the 13 analysts who have rated the stock in the past 3 months, 6 gave a Buy rating while 7 remain on the sidelines. The average 12-month price target for the stock is $161.27, marking a 21% upside from where shares last closed.

Priceline Group Inc (NASDAQ:PCLN) is falling 12% in pre-market trading after the company released Q1 earnings. The company reported revenues of $2.15 billion and earnings of $10.54, compared to estimates of $9.64. However, the company posted EPS guidance for the second quarter of between $11.60 and $12.50, below consensus of $14.96. The company attributes this weaker outlook to “continued investments in product, service and branding that will drive long-term growth for our leading brands.”  He continued, “That’s an investment that we’re making in the future of the business but it is putting pressure on short-term margins.”

According to TipRanks, out of the 13 analysts who have rated the stock in the last 3 months, 8 gave a Buy rating while 5 remain on the sidelines. The average 12-month price target for the stock is $1,481.82, marking a 9% upside from where shares last closed.