Friday, November 22, 2013

Textura (NYSE: TXTR) announces revenue Increase for its most recent quarter, but quarter and fiscal year losses soar (POST UPDATED)

Here’s a link to the 8K report (file) that Textura filed with the SEC yesterday afternoon - this file contains the Press Release Textura issued as well as its financial results for its last quarter and full fiscal year)

Textura’s Press Release calls out these highlights:

  Revenue increased 72% year over year to $10.9 million
  Accelerating revenue growth from 65% in prior quarter
  Construction value added of $23.7 billion, up 158% year over year & up 74% from the third quarter
  Recently announced an agreement to acquire LATISTA, the leading provider of mobile-enabled, cloud-based field 
management solutions in the industry
  In September launched BidOrganizerTM, a new solution designed to help contractors with a central, online location to prioritize, track, and schedule all bid invitations
Here’s a “snapshot” of TXTR shares at close of market Nov 21 2013, just before TXTR releases its financial results:

Blog Publisher’s comments:

Well, interestingly, Textura’s shares soared by nearly 10% yesterday, and that was before Textura released its financial results.  Investors betting that the financial results would look good, be great, be a surprise to the up-side?

Textura’s sales did increased from $6.319 mil to $10.533 (Sep 30 2012 to Sep 30 2013) – an increase of around $4.2 mil, but if that’s something for the company (or analysts) to crow about, I’m as mystified as I normally am.  Especially since approximately $1.5 mil of that sales growth came from revenues acquired when Textura purchased PlanSwift.  Keep in mind that, at yesterday’s market close, Textura’s market cap was $883 mil.  And, also keep in mind that between the time Textura went public in June and now, Textura did, at a few points, have a market cap exceeding $1 billion.

Uh, that’s correct.  To me, this sort of valuation for a company that, in my mind, is growing slowly and whose losses are growing, not slowing, is ridiculous.  But, that just shows you how well I understand the stock market.

Take a look at this:

per TXTR 8K
3 months ended
3 months ended
Sep 30 2013
Sep 30 2012
Net Loss
 F/Y ended
F/Y ended
Sep 30 2013
Sep 30 2012
Net Loss

The person who writes Textura’s financial Press Releases  is an excellent wordsmith (or perhaps it's a team that does that)  The latest press release provided all sorts of interesting numbers and statistics and percentages, etc – in an effort to show you how wonderful the company is doing and how amazing its growth prospects are. 

It will be interesting to see if Textura will become profitable, bottom-line profitable, in 2014.  I’ll bet you that won’t happen.  Nevertheless, its stock may continue to do very well.  There’s been a lot of hype about Textura.

UPDATE, NOV 22ND, 10:00 AM

Well, Textura’s shares opened down this morning, by approximately the same amount that they were up yesterday.  Here’s a snapshot I just took of Textura’s share price and trading activity:

In addition, I found this article on the web:

Textura Corp (TXTR) Posts Quarterly Earnings Results, Misses Estimates By $0.18 EPS - Posted by Max Byerly on Nov 21st, 2013 on the web-site:

Textura Corp posted its quarterly earnings results on Thursday. The company reported ($0.36) earnings per share for the quarter, missing the analysts’ consensus estimate of ($0.18) by $0.18, AnalystRatings.NET reports. The company had revenue of $10.90 million for the quarter, compared to the consensus estimate of $10.73 million.

A number of analysts have recently weighed in on TXTR shares. Analysts at JMP Securities reiterated a “buy” rating on shares of Textura Corp in a research note to investors on Monday, September 30th. They now have a $38.00 price target on the stock. Analysts at Credit Suisse raised their price target on shares of Textura Corp from $36.00 to $50.00 in a research note to investors on Monday, September 30th. They now have a “buy” rating on the stock. Five equities research analysts have rated the stock with a buy rating, Textura Corp currently has a consensus rating of “Buy” and an average price target of $36.20.

Shares of Textura Corp (NASDAQ:TXTR) traded up 9.56% on Thursday, hitting $35.86. The stock had a trading volume of 277,665 shares. Textura Corp has a 52 week low of $19.68 and a 52 week high of $47.25. The stock has a 50-day moving average of $38.31 and a 200-day moving average of $34.15. The company’s market cap is $858.6 million.

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

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