Personal Finance

Why Control4 Corp. Stock Popped 20.6% on Friday

Control4 smart-home software running on multiple electronic devices

What happened

Shares of Control4 Corp. (NASDAQ: CTRL) jumped 20.6% on Friday after the smart-home solutions company announced stronger-than-expected second-quarter 2018 results.

More specifically, Control4's quarterly revenue grew 13% year over year to $69.2 million, which translated to adjusted net income of $11.4 million, or $0.42 per share, up from $0.31 per share in the same year-ago period. Analysts, on average, were only anticipating earnings of $0.32 per share on revenue of $67.8 million.

Control4 smart-home software running on multiple electronic devices


So what

"We continue to strengthen our product offerings via new capabilities including Intercom Anywhere and enhanced When>>Then Personalization -- both part of our growing 4Sight consumer cloud service," stated Control4 Chairman and CEO Martin Plaehn. "Additionally, our recently introduced Certified Showroom Program and Production Builder Program are gaining visibility and operational momentum which we expect to contribute positively to our market presence and future revenue growth."

Plaehn added that they were "pleased" with their second-quarter performance, and are "well positioned for the second half of the year."

Now what

To that end, Control4 expects third-quarter revenue to be between $70.5 million and $72.5 million, with adjusted net income per share between $0.34 and $0.38. Both figures are roughly in line with consensus estimates.

For full-year 2018, Control4 sees revenue arriving between $273 million and $276 million, which should translate to adjusted earnings per share between $1.38 and $1.45. In this case, Wall Street was more conservative in predicting 2018 earnings of only $1.30 per share on revenue near the low end of Control4's outlook.

With Control4 shares trading nearly 30% below their 52-week high set late last year, that's all the market needed to hear to stage today's impressive rebound.

10 stocks we like better than Control4

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Control4 wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 4, 2018

Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of Control4. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics


Latest Personal Finance Videos

FinancialLiteracy Resources For GenZ And Beyond

Jan 27, 2022

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More