Investors in PV firm Sky Solar Holdings Ltd (ADR) (NASDAQ:SKYS) and medical diagnostics maker OraSure Technologies, Inc. (NASDAQ:OSUR) have a reason to smile after the companies impressed the Street last night with their quarterly earnings. Let’s take a look and see what the analysts have to say about SKYS and OSUR.
Sky Solar Holdings Ltd (ADR)
Sky Solar Holdings shares are up nearly 58%, as of this writing, after the company posted a revenue beat of $23 million, compared to consensus estimates of $16 million due to higher-than-expected system sales. The company delivered an EPS beat of 28c, compared to consensus of -3c that was driven in part by a gain on the sale of preferred equity in Canadian assets.
Roth Capital analyst Philip Shen commented, “SKYS delivered a belated Q3 beat, but did not host an earnings call. The results were delayed due to accounting/valuation discussions regarding its Canadian asset sale and the U.S. assets acquired in July. We continue to wait for the Japanese asset sale. Our liquidation analysis, which excludes the value of early/late stage pipeline, suggests the liquidation value of operating assets alone of >$4/share vs. the current share price of ~$1.79/share.”
“We are maintaining our Q4 revenue of $11mn vs. prior consensus of $16mn, GM of 53.8% vs. prior consensus of 56.6%, and EPS of -7c vs. prior consensus of -3c. Additionally, we are maintaining our 2017 EPS forecast of -6c vs. prior consensus of 18c,” the analyst added.
As such, Shen reiterated a Buy rating on shares of Sky Solar, with an $8.00 price target, which represents a potential upside of 171% from where the stock is currently trading.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Philip Shen has a yearly average return of -16.8% and a 24% success rate. Shen has a -47.3% average return when recommending SKYS, and is ranked #4317 out of 4384 analysts.
OraSure Technologies, Inc.
OraSure Technologies shares are up 25% in Thursday’s trading session, after the company reported strong fourth-quarter results, with sales and EPS exceeding consensus estimates.
In reaction, Canaccord analyst Mark Massaro slightly raised his price target for OSUR to $12.00 (from $11.00), while reiterating a Buy rating on the stock.
Massaro commented, “OSUR delivered another top- and bottom-line beat and continues to make good strides accelerating its profitability and free cash flow (cash totals $121M, more than $2.00 in net cash/share). Ongoing positive developments from its HCV business coupled with strong traction from its DNA Genotek business (most recently highlighted by its major new customer, Helix) sets OSUR up for growth in 2017 and beyond.”
“Mostly to reflect the payment from Ancestry in Q1/17, we raise our 2017 EPS estimate to $0.35 from our prior $0.25. We raised our FY18 revenue estimate to $136M (from $130M) which assumes higher HCV revenue from foreign governments as well as higher BARDA funding expected in 2018 relative to our prior model. We raised our 2018 EPS estimate to $0.25 from $0.22. We believe our 2018 revenue and EPS estimates may be conservative pending possible future upside from large new DNA Genotek customer Helix, as well as additional HCV and HIV product orders OUS.”
According to TipRanks, analyst Mark Massaro has a yearly average return of -0.6% and a 50% success rate. Massaro has a 10% average return when recommending OSUR, and is ranked #3336 out of 4384 analysts.