RetailMeNot Inc. (NASDAQ: SALE)
RetailMeNot Inc. (SALE), a company that operates a digital coupon marketplace yesterday announced positive third quarter 2015 financial results. Earning per share was $0.12 which was $0.08 better than analysts estimates of $0.04. Even though revenue numbers fell 7% to $52.4 million it was still better than analyst expected numbers of $48.58 million.
RetailMeNot Inc. Earnings
Total net revenues declined 7% to $52.4 million. GAAP net income was $0.3 million, compared to GAAP net income of $2.5 million. Non-GAAP net income was $6.3 million, compared to non-GAAP net income of $9.1 million. Non-GAAP EPS was $0.12 per share, based on 53.7 million fully-diluted, weighted-average shares outstanding. PR Newswire
RetailMeNot Inc. CEO Comments
“I’m pleased with our performance on mobile online transaction and in-store and advertising net revenues, and adjusted EBITDA during the third quarter,” said Cotter Cunningham, CEO & Founder, RetailMeNot, Inc. “We believe our large and engaged audience coupled with our differentiated content types will position us well for future success, both online and in-store.” PR Newswire
SALE Technical Analysis
SALE gapped up in price yesterday to $11.25, up from the prior day’s close of $8.77, which is a 28% increase on the favorable news. Taking a look at the daily chart, we can see the last time SALE traded above this price level was on August 4th, when it closed at $14.11. On that occasion, SALE tanked all the way down to $8.25 on the next day of trading, or equivalent to a 42% drop in price. SALE has a relatively low float of 30.60 million shares and is trading over 4.5 times the normal daily trading volume. Both of these factors make the stock a good candidate for the gap and go strategy. SALE opened at the pre market high of $11.25. For trading purposes, my entry point would have been $11.35 looking for a run to $12. My stop loss would have been $11.15 fearing anything below that and the stock would start to fill in the gap up.
Company Profile
RetailMeNot Inc., incorporated on September 17, 2007, operates digital coupon marketplace, connecting consumers with retailers and brands. As of 2014, The Company had contracts with more than 10,000 retailers, or paid retailers. The Company owns and operates digital offer marketplaces in the United States (RetailMeNot.com) and the United Kingdom (VoucherCodes.co.uk) and a portfolio of digital offer websites in France (Bons-de-Reduction.com, Poulpeo.com and Ma-Reduc.com). The company’s websites, mobile applications, email newsletters and alerts and social media presence enable consumers to search for, discover and redeem relevant digital offers from retailers and brands. Its marketplace features digital offers across product categories, including clothing; electronics; health and beauty; home and office; travel, food and entertainment; personal and business services, and shoes. It aggregate digital offers from retailers, performance marketing networks, user community, employees and outsourced providers. Reuters
