Update on Textura (NYSE: TXTR)

On June 6^th on the blog, I posted an article in which I mentioned PlanSwift’s estimated sales volume (at the time, my estimate of PlanSwift’s sales, based on my interpretation of what I’d read in Textura’s write-up of its business) - $500k per month, $6 million annualized.

More recently, Textura held an earnings-call, right after it released its most recent quarterly financial results, and, in the written transcript of that earnings call, here’s one of the statements Textura’s CEO made:

“Organization driven revenue increased by 235% year-over-year to $2.3 million and represented the remaining 25% of our total revenue. The drivers here were 79% year-over-year growth and the number of organizations to more than 8200, the PlanSwift solution accounting for 3,081 of these organizations and $1.5 million in revenue (in the most recent 3 month period.)

So, my estimate of PlanSwift’s annualized revenues were accurate.

Moving on, Textura’s stock price has soared since I last wrote about the company on Repro 101.

Today, the market is down, Textura is trading at $34.00 per share.  That’s considerably more than Textura’s IPO price and considerably more that Textura’s closing price the day it went public.

I noticed this, just a couple of days ago.  “Textura Corp Price Target Increased to $36.00 by Analysts at Credit Suisse.” (Article found on “UtahPeoplesPost.com”, Posted by JAGS Staff on Aug 12th, 2013)

Research analysts at Credit Suisse increased their target price on shares of Textura Corp (NASDAQ:TXTR) from $33.00 to $36.00 in a report released on Friday, AnalystRatings.Net reports. The firm currently has an “outperform” rating on the stock. Credit Suisse’s price target suggests a potential upside of 8.27% from the company’s current price.

A number of other analysts have also recently weighed in on TXTR. Analysts at Oppenheimer raised their price target on shares of Textura Corp from $35.00 to $36.00 in a research note to investors on Thursday. They now have an “outperform” rating on the stock. Separately, analysts at JMP Securities initiated coverage on shares of Textura Corp in a research note to investors on Monday, July 8th. They set an “outperform” rating and a $38.00 price target on the stock. Finally, analysts at Barrington Research initiated coverage on shares of Textura Corp in a research note to investors on Tuesday, July 2nd. They set an “outperform” rating and a $35.00 price target on the stock.

Five equities research analysts have rated the stock with a buy rating, The company presently has a consensus rating of “Buy” and a consensus price target of $33.40.

           

Shares of Textura Corp (NASDAQ:TXTR) traded up 0.66% during mid-day trading on Friday, hitting $33.47. Textura Corp has a one year low of $19.68 and a one year high of $33.44. The stock’s 50-day moving average is currently $28.72. The company’s market cap is $733.0 million.

Textura Corp (NASDAQ:TXTR) last released its earnings data on Wednesday, August 7th. The company reported ($0.75) EPS for the quarter, missing the Thomson Reuters consensus estimate of ($0.58) by $0.17. The company had revenue of $9.40 million for the quarter, compared to the consensus estimate of $9.11 million. During the same quarter in the prior year, the company posted ($0.38) earnings per share. The company’s quarterly revenue was up 64.9% on a year-over-year basis. On average, analysts predict that Textura Corp will post $-1.59 earnings per share for the current fiscal year.

Textura Corporation is a provider of on-demand business collaboration software to the commercial construction industry.

Final comments for today’s blog post:

During the Q&A part of the recent earnings call, several of the financial analysts who participated in that call were kind of effusive with their congratulations to the CEO on the company’s most recent quarterly results.  Quite frankly, I’m never surprised when analysts make “buttery” comments to a CEO, but, being to be quite frank, Textura’s results, to me, were noting to write home about.  They lost more money than analysts estimated would be the case.  This “miss” wasn’t close.  And, the (year over year) revenue increase, to me, was not-all-that impressive.  I guess I should say, “un-spectacular.”

	3 month	3 month
	period	period
	3/1-6/30/2013	3/1-6/30/2012
	(in millions)	(in millions)
Gross Revenues	$9.362	$5.689
PlanSwift Revenues	$1.500	not applic
	$7.862	$5.689
	$7.862
	$5.689
Textura Y-O-Y revenue increase	38%	(w/o PlanSwift revenues)

  

And, Textura’s loss increased substantially.

So, here we’ve got a small company, recently gone public, $2mil increase in year-over-year quarter’s sales (if they had not acquired PlanSwift), substantial increase in quarterly loss, but with a huge amount of hype from financial analysts who cover the company.  Today, at $34.00 per share, the company’s “market cap” is $778 million.  That’s right, a company with gross annualized revenues of around $38 million, losing money, that’s worth $778 million.