Exa Corporation | $EXA Stock | Shares Fall Despite Announcing Q4 Profits

Exa Corporation

Exa Corporation  (NASDAQ: EXA)



Exa Corporation (EXA), a company that develops, sells, and supports simulation software and services for vehicle manufacturers worldwide yesterday reported their fiscal fourth quarter and full year 2017 financial results.  Exa reported adjusted fourth quarter earnings of $0.05 per share. Exa reported fourth quarter revenues of $19.5 million.


Exa Corporation  CEO’s Comments

“We executed well during the fourth quarter, delivering net income and adjusted EBITDA that both exceeded our guidance, with revenue that was within the lower half of our guidance range,” said Stephen Remondi, President and Chief Executive Officer of Exa. “For the full year, we produced top line year over year growth with license revenue increasing 14% or 12% on a constant currency basis. We also continued to realize our operating leverage potential as demonstrated by a 4.2 percentage point increase in adjusted EBITDA margin over FY 16.

“The combined prospects of reduced environmental regulations regarding fuel economy and vehicle emissions and a border adjustment tax have created tentative near-term deployment commitments from some of our customers in the ground transportation market. This uncertainty is reflected in our outlook for FY18. Nonetheless, we remain confident in the underlying demand dynamics in this market segment and the potential of our solutions to deliver significant value to our customers under various macro and regulatory environments.  Globe Newswire


EXA Technical Analysis

Exa Corporation

EXA opened trading yesterday at $15.10 which was up from the previous day’s trading close of $15.07. EXA closed trading yesterday at $15.69 and spiked down after market to $13.87, equivalent to a 12% decrease from the closing price. Taking a look at the daily chart we can see that the last time EXA traded below these levels we have to go all the way back to November 3rd, 2016 when it traded at $13.81.

Taking a closer look at the daily chart we can see that before the spike down EXA had already been in an overall downward trend dating back to February 6th when it traded at $16.66 liked we talked about in the chat room. EXA has a float of 12.57 million shares and traded 3.21 times the normal daily trading volume on Thursday.

For trading purposes, I would like to see EXA open trading on Friday below $14.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Exa Corporation develops, sells, and supports simulation software and services for vehicle manufacturers worldwide. The company primarily offers PowerFLOW and a suite of related software products for simulating complex fluid flow problems, including aerodynamics, thermal management, aeroacoustics, or wind noise.

Its software suite comprises PowerDELTA with PowerCLAY that streamlines and automates simulation model preparation process; PowerCASE, which creates, edits, and compiles a complete PowerFLOW simulation case that controls the construction of the simulation grid; PowerTHERM to predict surface temperatures and heat fluxes generated by thermal radiation and conduction; and PowerCOOL to calculate the heat transfer between a heat exchanger and the cooling airflow.

The company’s software suite also includes PowerINSIGHT, a graphical user interface, which provides a library of user configurable templates and generates comparative results; PowerVIZ, a visualization and analysis application used for processing simulation results from PowerFLOW and spectral analysis results from PowerACOUSTICS; PowerACOUSTICS that enables pressure fluctuation prediction, noise source identification, wind noise transmission to interior, and sound package parameter study capabilities; and ExaCLOUD, which offers PowerFLOW simulation preparation and analysis functionality through a browser, as well as manages the simulation server in the cloud.

Its products are used in various applications, such as aerodynamics, thermal management, aeroacoustics, climate control, and powertrain, as well as provide consulting and training services. The company sells its products and project services to aerospace, oil and gas production, chemical processing, architecture, engineering and construction, power generation, biomedical, and electronics industries through direct sales force, distributors, and sales agents. Exa Corporation was founded in 1991 and is headquartered in Burlington, Massachusetts  Yahoo Finance