Harriet Lefton

About the Author Harriet Lefton

Harriet originates from the UK where she worked as a journalist specializing in the metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer.

Thursday’s Market insights: Twitter Inc (TWTR), Sky Solar Holdings Ltd (ADR) (SKYS), Jaguar Animal Health Inc (JAGX), Cliffs Natural Resources Inc (CLF)

Twitter Inc (NYSE:TWTR) shares are trading down by 11% after the company announced a fourth-quarter revenue miss. Revenue for the quarter came in at $717 million, considerably lower than the $740.14 million expected by analysts. However, the social networking service did see EPS for the quarter of $0.16 comfortably outdoing the analyst estimate of $0.12 EPS. Guidance for adjusted EBITDA for 1Q17 is $75 million to $95 million. The company reported a net loss of $457 for the full financial year.

While the number of active Twitter users rose in the period, the market is concerned about the falling ad revenue. US ad revenue was down 7% y-o-y to $382 million for the quarter due to the declining popularity of promoted tweets. President Trump’s active use of Twitter could also negatively impact ad revenues as advertisers may be reluctant to use a platform associated with such a divisive figure, analyst Richard Kramer told CNBC on Feb 9.

According to financial accountability engine TipRanks, the analyst consensus rating for Twitter is hold while the average analyst price target is $16.97 which represents a marginal 1.13% upside from the share price. In the last three months there have been 3 buy, 13 hold and 4 sell ratings for the stock.

Sky Solar Holdings Ltd (ADR) (NASDAQ:SKYS) shares are rising by an impressive 56% in trading, after the solar park developer and owner announced financial results for Q316 which ended on Sep 30, 2016. The company reported Q3 2016 total revenue of $23.4 million, up 93.4% from Q3 2015. Q3 2016 saw adjusted EBITDA of $21.4 million, compared to $3.8 million in Q3 2015, up a whopping 466.7% year-over-year. According to the press release, the company has 1.0 GW of solar parks in its pipeline and, 152.1 MW of solar parks assets in operation as at Sep 30 16. Only a couple of days ago, SKYS announced the sale of 23MW solar park in Greece for a total price of Euro 39.7 million.

Jaguar Animal Health Inc (NASDAQ:JAGX) shares are trading up 38% after the company entered into a binding agreement to merge with Napo Pharmaceuticals. The binding financial terms of the merger include a 3-to-1 Napo-to-Jaguar value ratio to calculate the relative ownership of the resulting joint entity. At the end of last month, Napo owned approximately 19% of Jaguar shares. JAGX develops gastrointestinal products for animals including foals and high value horses. Napo focuses on humans rather than animals: it develops products such as the gastrointestinal compound, crofelemer, from plants used traditionally in rainforest areas. “The merger will allow the combined entity to benefit from the economies of scale of combined manufacturing for various human and animal indications,” Jaguar CEO Lisa Conte said.

Cliffs Natural Resources Inc (NYSE:CLF) shares are soaring by 9.4% in trading after the iron ore producer announced better-than-expected 4Q16 results backed by the rising price of iron ore pellets- a key ingredient in the making of steel. Revenue for the quarter came in $754 million, up 58.4%, and easily beating estimates of $675.2 million. The market is also bullish that President Trump’s $550 billion infrastructure spend will boost the price for the pellets even further as demand rises and Chinese exports continue to decrease. The company forecast sales of 19 million tonnes for this year.

TipRanks has recorded 1 buy, 2 hold and 1 sell rating on the stock in the last three months giving the stock a ‘hold’ analyst consensus rating. The average analyst price target of $8.75 translates into a -12.94% downside from the stock’s current share price.


Stay Ahead of Everyone Else

Get The Latest Stock News Alerts