Stock News Staff

Sunshine Heart Inc (NASDAQ:CHFS) Stocks Skyrockets on SEC Filing

Sunshine Heart Inc (NASDAQ:CHFS)

Short-sellers of Sunshine Heart Inc (NASDAQ:CHFS) felt the pain today as the stock rocketed up over 500% in early afternoon trading, but have hit strong resistance at the $25 mark. While there has been no news released concerning the company, reports suggesting a catalyst for the upward move reference an SEC filing for a public offering of preferred stock and warrants.

Sunshine Heart Inc (NASDAQ:CHFS)

The filing details a potential offering of preferred shares and warrants totaling $32 million. The unit offering involves $10 million of preferred shares and $22 million of common shares that would be exercisable by the warrant holder(s). The 10,000 preferred shares would be exercisable into 2.141 million common shares of CHFS. The 22 million warrants could be converted into 4.282 million common shares of CHFS. The pricing of the public offering was not disclosed in the filing. In April, 2017, CHFS stock plunged 30% on the news of a dilutive offering of common shares.

About Sunshine Heart

A cardiac surgeon founded Eden Prarie, MN-based Sunshine Heart, Inc (NASDAQ:CHFS). Sunshine Heart is a medical device company that creates, develops, and commercializes technologies that address heart failure. The EU regulatory authorities have granted a CE Mark to their C-Pulse Heart Assist System. In the USA, the system is undergoing clinical studies to determine its safety and efficacy for the treatment of moderate to severe heart failure.

Sunshine Heart, Inc (NASDAQ:CHFS) lead product is the Aquadex FlexFlow® ultrafiltration system. The Aquadex FlexFlow system removes excess fluid from patients suffering from fluid overload who have failed diuretic therapy. Heart failure is the leading cause of fluid overload. The American Heart Association estimates that 6.5 million people in the United States, age 20 and over, had heart failure. There are an estimated 960,000 new heart failure cases annually. Annual hospitalizations for heart failure exceed 1 million in United States and Europe, and more than 90% are due to symptoms and signs of fluid overload.

CHFS Stock Developments

On October 10, 2017, Sunshine Heart, Inc (NASDAQ:CHFS) stockholders approved, later approved by the Board of Directors, a reverse 1:20 stock split. That move was in response to a notification from The NASDAQ Stock Market LLC informing Sunshine Heart that they were no longer in compliance with the minimum bid price requirement, as the bid price of shares of CHFS common stock closed below the minimum $1.00 per share threshold for 30 consecutive business days. Nasdaq also notified the company that they had 180 calendar days, or until November 28, 2017, to regain compliance.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $CHFS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Sunworks Inc (NASDAQ:SUNW)

Sunworks Inc (NASDAQ:SUNW) Dim

Sunworks Inc (NASDAQ:SUNW)

Sunworks Inc (NASDAQ:SUNW) stock is down over 16%, to $1.16, after the solar power equipment provider released Q3 2017 earnings. This would mark a new 52-week low for SUNW stock. According to Zacks Investment Research, analysts were expecting EPS to come in at $0.02, but the Roseville, CA-based company reported a net loss of (-$0.09), or $2 million.

Sunworks Inc (NASDAQ:SUNW)

Sunworks Inc (NASDAQ:SUNW) was formerly known as Solar3D, Inc. The company provides solar power solutions. Sunworks designs, installs, and manages solar power systems for commercial, agricultural, residential and municipal customers in the western United States. Its solutions deliver over 2.5 kilowatts to multi-megawatts commercial systems. It also provides energy solutions and services to retail customers. Its services include project management and installation support, solar energy performance assessments, solutions consultations, materials and equipment procurement support, as well as rebates and incentives management.

SUNW Stock Performance

Sunworks Inc (NASDAQ:SUNW) earnings have been generally negative and inconsistent. In 2012 the company posted a per share loss of (-$0.42). That loss was followed by annual losses of (-$0.59) and (-$2.15). Then, in 2015, Sunworks posted a per share profit of $0.06, but then, for 2016, another loss of (-$0.46) was posted.

Sales have been on an upward trajectory though. In 2014 the company reported sales of $20.2 million and, by 2016, that number expanded to $86.4 million.

Diluting shareholder equity has been a constant issue for holders of SUNW stock. In 2012 there were 4.93 million shares outstanding. Unfortunately, by 2016, that number ballooned to 20.23 million.

All three investment firms that follow Sunworks Inc (NASDAQ:SUNW) rate SUNW shares as a “Strong Buy”. Their consensus, one-year price target is $2.67.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SUNW and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Nova Lifestyle Inc (NASDAQ:NVFY)

Nova Lifestyle Inc (NASDAQ:NVFY) Stock Meeting Sellers at $1.80 – Again

Nova Lifestyle Inc (NASDAQ:NVFY)

Shares of Nova Lifestyle Inc (NASDAQ:NVFY) have, in the last 60 days, tried twice to close over the $1.80 mark and twice sellers have stepped in to push the stock back down. Today volume is heavy for the furniture manufacturer – almost nine times the listed daily average. The company has announced it will be releasing its Q3 2017 earnings report before the market opens on Monday, October 13, 2017.

Nova Lifestyle Inc (NASDAQ:NVFY)

Nova Lifestyle Inc (NASDAQ:NVFY) is headquartered in Commerce, California. The company designs, manufactures, and distributes modern LifeStyle furniture – primarily sofas, dining rooms, cabinets, office furniture and related components, bedrooms, and various accessories in matching collections. Nova’s products are made and marketed in the US, Europe, and Asia and include LifeStyle brands such as Diamond Sofa, Nova QwiK, and Bright Swallow International.

NVFY Stock

Nova Lifestyle Inc (NASDAQ:NVFY) has a surprisingly low cash per share figure of just $0.01. However, traders have been pushing the stock up since early September when the stock was trading around the $1.10 handle. In the past quarter, NVFY stock has gained over 30%. For the year, shares are down over 45%.

Sales revenue has been flat since 2014 when the company reported a figure of $98.7 million – its best showing to date. After that, the company posted sales in 2015 at $89.9 million, and, for 2016, $92.6 million. During that time the number of outstanding shares has increased – diluting shareholder equity. In 2014 there were a reported 20.38 million shares outstanding. That number increased to 25.43 million by the end of 2016.

2016 represents the first year of negative earnings for the company since 2012 when it had a per share profit of $0.29. Last year the company posted a per share loss of (-$0.01).

According to available resources, no investment firms follow Nova Lifestyle Inc (NASDAQ:NVFY).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NVFY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Zosano Pharma Corp (NASDAQ:ZSAN)

Zosano Pharma Corp (NASDAQ:ZSAN) Q3 Net Loss Widens

Zosano Pharma Corp (NASDAQ:ZSAN)

Zosano Pharma Corp (NASDAQ:ZSAN) shares gained 3.70% after the clinical stage biopharmaceutical company reported financial results and an operational update for Q3 2017. The unveiling of the financial results comes a day after the company initiated long-term safety study of zolmitriptan in migraine patients.

Zosano Pharma Corp (NASDAQ:ZSAN)

Zosano’s Net Loss

Zosano generated a net loss of (-$7.9) million or (-$0.20) a share in the third quarter, a slight increase from a net loss of (-$7.4) million, or (-$0.52) a share, reported last year. It awaits to be seen how investors will react to the wider than expected net loss as the stock continues to trade in a downtrend.

The stock has shed more than 70% in market value since March an underperformance that has plunged it to this year’s lows. Zosano Pharma Corp (NASDAQ:ZSAN) is currently trading near its 52-week low of $0.48 and in dire need of new catalyst if it’s to bounce back.

Research and development expenses in the quarter increased to $5.7 million from $5.1 million reported in Q3 of 2016. General and Administrative expenses remained unchanged at $2 million. Zosano exited the quarter with cash and cash equivalent of $19.8 million debt of $8.2 million and 39.2 million common shares outstanding.

During the quarter, the clinical stage biopharmaceutical company made important strides in the development of its pipeline of drugs. In September, the company presented data from Phase 2/3 ZOTRIP study evaluating M207 as a novel treatment for a migraine.

“The company continues to execute on our path to an NDA, including the initiation of our long-term safety study on November 7 and the continued scale up of manufacturing to support potential commercialization, pending approval of M207 by the FDA,” said CEO, John Walker.

Share Purchase Agreement

Separately, Zosano Pharma Corp (NASDAQ:ZSAN) has entered into a common share purchase agreement with Chicago-based institutional investor, Lincoln Park Capital Fund LLC. Pursuant to the approval of the SEC, the company is to sell shares worth $35 million to the investor.

Under the terms of the agreement, Zosano Pharma Corp (NASDAQ:ZSAN) is to control the timing and the amount of any investment by LPC. The investor will also be required to make purchases based on the purchase agreement and prevailing market prices at the time of each sale.

Zosano Pharma Corp (NASDAQ:ZSAN) plans to use proceeds from the purchase agreement to fund long-term study of its lead product candidate M207, and for general corporate purposes.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ZSAN and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ)

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) Q3 Financials Highlight Growth

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ)

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) gained 4.37% after reporting financial results for the three and nine months ended September 30, 2017. According to their Chief Executive officer, Adrian Adams, performance in the quarter underscore strength in underlying business and growth in the U.S and Canada.

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ)

ARLZ Stock Performance

Investors’ confidence on the stock has taken a hit in recent months as seen by the stock trading in a downtrend. Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) is down by more than 50% for the year. It awaits to be seen if the better than expected financial results have what it takes to push the stock higher.

According to Mr. Adams, Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) is on the path to profitability given the performance in third quarter.

“We are delighted with the evolution of Zontivity®, the improved outlook for the Toprol-XL® franchise in the U.S. and the continued strong performance of the Canadian business. As a result of this performance, we updated our 2017 financial guidance and now expect full-year net revenue to be in the range of $95 million to $105 million,” said Mr. Adams.

Aralez Cost Cuts

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) plans to carry out further financial reforms as part of an effort that seeks to accelerate growth heading into the year end. The efforts chould result in a leaner, yet efficient, performance oriented operating model. The improvements are geared towards streaming operations in the U.S with a view of delivering profitability that support growth.

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) plans to trim its Selling, General and Administrative expenses by $32 million or 28%, as part of a cost cutting drive. Expense reductions will include reductions in the amount of money spent on marketing, professional and consulting fees.

Aralez Q3 Financials

Revenues for the three months ended September 30, 2017 totaled $24.3 million nearly double revenues of $13.6 million reported last year. Selling General and Administrative expenses dropped to $24.7 million, from $25.4 million generated in the third quarter of last year.

Net loss in the quarter increased to (-$24.4) million or $0.37 a share, compared to a net loss of (-$20.6) million reported in Q3 2016. Aralez Pharmaceuticals exited the third quarter with cash and cash equivalent of approximately, $40.7 million, sufficient to fund operations over the next 12 months.

Buoyed by the growth phase transition, Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) has revised its full year outlook. The pharmaceutical company now expects revenues of between $95 million and $105 million for the full year, from an initial guidance of between $80 million and $100 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ARLZ and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Smart Sand Inc. (NASDAQ:SND)

Smart Sand Inc. (NASDAQ:SND) Revenues Surge 260%

Smart Sand Inc. (NASDAQ:SND)

Shares of Smart Sand Inc. (NASDAQ:SND) gained 15.12% after the low cost producer of high-quality Northern White raw frac sand reported its best-ever quarter. Revenue for the three months ended September 30, 2017, increased 260% year-over-year, due to higher sales volumes and increased freight revenues.

Smart Sand Inc. (NASDAQ:SND)

According to Chief Executive Officer Charles Young, performance in the quarter underscored the company’s focus on maximizing production and effective management of railcar movements.

“Market demand for our high quality, Northern White frac sand remains strong and we look forward to bringing our additional 2.2 million tons of annual production capacity online by the end of the first quarter of 2018,” said Mr. Adams.

The sentiments appear to have strengthened investors’ confidence in the stock as it continues to bounce back from this year’s low. However, Smart Sand is still trading in a downtrend after losing more than 60% in market value since February.

According to data compiled Zacks Investment Research, Smart Sand Inc. (NASDAQ:SND) is currently rated as a ‘strong buy’ by five Wall St. analyst firms.

Smart Sand Q3 Financial Results

Revenues for the three months ended September 30, 2017 totaled $39.3 million. Smart Sand Inc. (NASDAQ:SND) attributes the 260% increase to customers billed through freight charges as well as increased sales volumes. Revenue in the quarter was also up by 32% compared to the second quarter, due to the higher average selling price.

Smart Sand sold a total of 653,400 tons in the quarter representing a 184% year over year increase from 229,600 tons sold last year. The number of tons sold in the quarter also represented a 23% increase from the second quarter.

Smart Sand Inc. (NASDAQ:SND) generated a net income of $7 million or $0.17 a share in the quarter compared to a net loss of (-$0.1) million reported last year. Adjusted EBITDA totaled $11.4 million nearly triple $4.5 million reported during the third quarter of 2016. Smart Sand attributes the increase to increase in sales volume and higher average selling price per ton.

Capital expenditure in the quarter totaled $19.9 million mostly attributed to expansion works at the Oakdale sand processing facility and investment in various enhancement and cost improvement projects.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SND and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX)

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX)’s Posts Unexpected Net Loss

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX)

Shares of AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) fell 5.13% in after-hours trading on Thursday as investors reacted to the company’s Q3 financial results. A wider than expected net loss for the three and nine months ended September 30, 2017, appears to have spooked investors and fueled a sell-off of the stock.

DSUVIA NDA Woes

Investor confidence on the stock has hit an all-time low in the wake of the U.S. Food and Drug Administration issuing a Complete Response Letter to the company’s new drug, Dsuvia. The stock plunged to a new 52-week low of $1.95 after the regulator rejected a New Drug Application (NDA) for the drug, pending submission of additional safety data.

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) has shed more than 60% in market value over the past one month as investors remain skeptical about Dsuvia prospects following the FDA verdict. Disappointing Q3 financial results could accelerate the stock’s sell-off given that the company has no approved products in the market. Its growth is mostly pegged on the success of its opioid analgesics pipeline which under development.

The specialty Pharmaceutical Company has submitted an application for a Type A meeting with the FDA. The meeting is to be used to shed more light on all the requirements that the company must meet as it eyes DSUVIA NDA resubmission.

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) has already filed a marketing authorization application in Europe.

“DSUVIA remains our core asset as we believe the recommendations in the CRL are manageable. In addition, we successfully completed the ZALVISO Phase 3 study requested by the FDA, and remain focused on providing physicians and patients with non-invasive pain management options for moderate-to-severe acute pain within medically supervised settings,” said CEO, Vince Angotti.

AcelRx Q3 Financial Results

For the three months ended September 30, 2017, AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) generated a net loss of (-$13) million or (-$0.28) a share, compared to a net loss of (-$11.4) million generated last year. Net loss from operations totaled (-$8.9) million compared to (-$8) million during the third quarter of last year. Net Loss for the first nine months of the year increased to (-$41.4) million from (-$33.5) million as of last year.

Revenue in the quarter totaled $1.5 million made up of $1.2 million related to a collaboration with Grunenthal. Revenue for the nine months ended September 30, 2017, totaled $7.2 million. R&D and G&A expenses for the third quarter totaled $8.3 million and $28.4 million for the nine months ended September 30, 2017.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ACRX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Aptevo Therapeutics Inc (NASDAQ:APVO)

Nothing but Love for Aptevo Therapeutics Inc (NASDAQ:APVO)

Aptevo Therapeutics Inc (NASDAQ:APVO)

Aptevo Therapeutics Inc (NASDAQ:APVO) shares are up 3%, to $3.17, on moderate volume after the biotechnology company released its Q3 2017 earnings report. The net income was $37.9 million or $1.77 per share, compared to a net loss of $71.7 million or (-$3.55) per share for the same period last year. According to Zacks Investment Research, analysts at Piper Jaffray were expecting an EPS of $2.25. They also have a “Strong Buy” rating on APVO shares.

Aptevo Therapeutics Inc (NASDAQ:APVO)

Aptevo Therapeutics Inc (NASDAQ:APVO) is a clinical-stage biotechnology company focused on novel oncology and hematology therapeutics. Aptevo has a commercial product, IXINITY® coagulation factor IX (recombinant), an FDA-approved treatment for Hemophilia B.  Aptevo has two ADAPTIR antibody candidates currently in clinical development and a broad pipeline of novel investigational-stage bispecific antibody candidates focused in immuno-oncology and autoimmune disease and inflammation.

Marvin L. White, President and Chief Executive Officer of Aptevo Therapeutics Inc (NASDAQ:APVO) stated “The third quarter was a transformative period for Aptevo. During this time we delivered on two key objectives – continuing to ensure that Aptevo is solidly financed to execute on our commercial and R&D strategy, and expanding our innovative portfolio of bispecific antibody candidates where we see the highest potential for long-term shareholder value creation.”

Two noteworthy statements accompanied the Aptevo Therapeutics Inc (NASDAQ:APVO) earnings release. The first was that the company monetized non-core commercial assets and completed the sale of Aptevo’s three hyperimmune products, (WinRho® SDF, HepaGam B®, and VARIZIG®) to Saol Therapeutics for total consideration of up to $74.5 million, raising significant non-dilutive funding to support Aptevo’s ongoing commercial and R&D efforts. The second was that as a result of the sale of Aptevo’s three hyperimmune products (WinRho SDF, HepaGam B, and VARIZIG) to Saol Therapeutics, completed on September 28, 2017, Aptevo’s hyperimmune business has been excluded from its continuing operations.

APVO Stock Performance

Aptevo Therapeutics Inc (NASDAQ:APVO) earnings has been disappointing. In 2012, there was an EPS loss of (-$2.21) that, with one minor exception, expanded year-on-year until 2016 when the biotech company reported a per share loss of (-$5.55).

However, investors have not been deterred from pursuing the shares. Year-to-date, APVO shares are up 25%, and for the year the shares are up over 50%. The consensus, one-year price target for APVO share is $6.00.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $APVO and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Dextera Surgical Inc (NASDAQ:DXTR)

Dextera Surgical Inc (NASDAQ:DXTR) Announces Earnings

Dextera Surgical Inc (NASDAQ:DXTR)

Dextera Surgical Inc (NASDAQ:DXTR) stock was trading down 24%, at $0.16, in after-hours trading on heavy volume after the medical instruments company posted Q1 2018 earnings that missed expectations. Buyers began stepping in at those levels and DXTR stock is trading up at $0.21 at the time of this writing – 5:44 PM EST.

The total net loss attributable to common stockholders for the Q1 2018 was $3.6 million, or $0.09 per share. Wall St. analysts had forecast a per share loss of (-$0.07). The net loss for Q1 2018 before the deemed preferred stock dividend was approximately $3.5 million. Additionally, net loss applicable to common stockholders included a deemed (non-cash) preferred stock dividend of $0.1 million, representing the value of beneficial conversion rights embedded in the preferred shares issued in the company’s recently completed convertible preferred stock public offering.

Dextera Surgical Inc (NASDAQ:DXTR) designs and manufactures proprietary stapling devices for minimally invasive surgical procedures. In the U.S., surgical staplers are routinely used in more than one million minimally invasive laparoscopic, video-assisted, or robotic-assisted surgical procedures annually. Dextera Surgical also markets the only automated anastomosis devices for coronary artery bypass graft (CABG) surgery on the market today: The C-Port® Distal Anastomosis Systems and PAS-Port® Proximal Anastomosis System.

DXTR Stock

Despite the multi-year downtrend and the recent EPS losses, two analysts rate DXTR stock as a “Strong Buy” while one rates DXTR stock as a “Hold”. DXTR shareholders have had a rough 2017 so far. Year-to-date, DXTR shares are down over 80% and for the year shares are down over 88%.

EPS for DXTR stock has been negative since 2012 but improved each year until 2016, then a loss of (-$2.33) was posted for 2017. Sales have been rather consistent. In 2013 sales were posted at $3.5 million and that number did not substantially change over the next four years.

Interested investors should take note that the company has a listed book value  per share that is negative (-0.47).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

 

Don’t miss out! Stay informed on $DXTR and receive breaking news on other hot stocks by signing up for our free newsletter!

 

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

 

Kona Grill Inc (NASDAQ:KONA) Tanks After Hours on Earnings Announcement

Kona Grill Inc (NASDAQ:KONA)

Shares of Kona Grill Inc (NASDAQ:KONA) dropped 24%, or (-$0.65), in the after-market following the company’s Q32017 earnings release. The company reported a sales increase of 2.4% to $44.4 million. However, same-store sales decreased 7.2% – including an estimated 1.1% impact from closures due to Hurricanes Harvey, Irma, and Maria. Those weather-related events impacted 30% of the company’s restaurant base. Net loss of (-$3.3 million), or ($0.33) per share, which included an estimated ($0.02) per share impact from the hurricanes, compared to net loss of $2.6 million, or ($0.24) per share for the same period in 2016.

Kona Grill Inc (NASDAQ:KONA)

Berke Bakay, President and CEO of Kona Grill Inc (NASDAQ:KONA) stated “We remain resilient in spite of the challenges that we encountered during this quarter, including one-third of our restaurants being impacted by closures from the three major hurricanes that hit during August and September which we estimate resulted in approximately $500,000 of lost sales. Our restaurant in San Juan recently reopened with scaled back hours and a limited menu after the devastation caused by Hurricane Maria. We are fortunate that minimal physical damage was sustained at our restaurants.”

Also included in the earnings release was a note that the company’s Mexican franchise partner opened the first franchised Kona Grill restaurant in Monterrey, Mexico in August. The company’s franchise partner in the United Arab Emirates is scheduled to open in Dubai later this month while the first Kona Grill in Toronto, Canada is scheduled to be opened in December 2017. The Company continues to engage in discussions with additional franchise partners.

KONA Stock Performance

Kona Grill Inc (NASDAQ:KONA) sales have increased annually. In 2012, the company posted revenues of ($96 million. By 2016 Kona sales were $169.5 million. Unfortunately, the sales increase has not been translated to the company’s earnings. In 2012 the EPS was $0.60, and four years later, in 2016, the figure was a loss of (-$2.00).

That has led investors to abandon KONA shares. Year-to-date, the stock is down 80%. For the month, shares are down 30%. While the consensus, one-year price target is $4.50, shares are just $0.55 away from their 52-week low of $1.50 and $12 away from their 52-week high of $13.50.

Seven firms follow Kona Grill Inc (NASDAQ:KONA). Five rate KONA stock as a “Strong Buy”, one rates the shares as a “Buy” and one rates them as a “Hold”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $CREG and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.