Bull of the Day: Anaplan (PLAN)
Anaplan, Inc. (PLAN) has beat on the estimate all five quarters since it went public at the end of 2018. This Zacks Rank #1 (Strong Buy) is expected to grow revenue in the double digits both this year and next.
Anaplan runs a subscription-based platform in the category of Connected Planning. Its large global customers use the platform to connect people, data and plans to allow real-time planning and decision making.
The company has 20 global offices and more than 1,300 customers worldwide.
Another Beat in the Fiscal Third Quarter
On Nov 21, Anaplan reported its third quarter fiscal 2020 results and beat the Zacks Consensus for the fifth quarter in a row. It hasn't missed since its 2018 IPO.
Earnings were a loss of $0.08 versus the Zacks Consensus of a loss of $0.13.
Anaplan is a growth company and you can see that in the revenue which jumped 44% to $89.4 million year-over-year. Subscription revenue rose 47% to $79.7 million.
While it still saw a loss per share, it has been cutting that in the year-over-year numbers. The $0.08 loss in fiscal 2020 was down from the $0.18 loss in the third quarter of fiscal 2019.
It has cash and cash equivalents on hand of $310.8 million.
Raised Full Year Guidance
Given yet another beat and the hot revenue numbers, it's not surprising that the company raised its full year outlook.
Total revenue is now expected to be between $346 to $347 million, up from prior guidance of $339 to $343 million. That's revenue growth of 44.1%.
Non-GAAP operating margin is now expected to be in the range of negative 17% and 18%, down from the prior guidance of negative 19.5% and 20.5%.
Analysts are bullish on fiscal 2020 with 3 raising estimates to match the company's forecast in the last month.
The Fiscal 2020 Zacks Consensus Estimate has risen to a loss of $0.48 which is up from a loss of $0.68 just 3 months ago. That's earnings growth of 34% as the company lost $0.73 in fiscal 2019.
The analysts are also adjusting fiscal 2021 but 2 estimates have been cut in the last 60 days. However, it's moving in the right direction as the Fiscal 2021 Zacks Consensus has falling to a loss of $0.44 from a loss of $0.61 just 90 days ago.
Shares Soar in 2019
Anaplan was one of the hot IPO stocks in 2019, as shares have soared 97% year-to-date.
However, over the last 3 months, they have been treading water, and are actually down 2.3%.
The "pause" in the rally could be a buying opportunity for those looking for a mid-cap tech growth name.
For those investors looking for new technology names, Anaplan is one to keep on the short list.
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