2U (TWOU) reported earnings on Tue 30 July 2019 (a/h)

** charts after earnings **

 

2U misses by $0.08, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY19 EPS below consensus, revs in-line

Reports Q2 (Jun) loss of $0.43 per share, excluding non-recurring items, $0.08 worse than the S&P Capital IQ Consensus of ($0.35); revenues rose 39.1% year/year to $135.5 mln vs the $124.38 mln S&P Capital IQ Consensus.

Co issues guidancefor Q3, sees EPS of ($0.53)-($0.49), excluding non-recurring items, vs. ($0.09) S&P Capital IQ Consensus; sees Q3 revs of $147.6-152.6 mln vs. $137.70 mln S&P Capital IQ Consensus.

Co issues guidancefor FY19, sees EPS of ($1.25)-($1.16), excluding non-recurring items, vs. ($0.32) S&P Capital IQ Consensus; sees FY19 revs of $565.7-575.7 mln vs. $533.23 mln S&P Capital IQ Consensus.

IPOs this week : July 29 - Aug 2, 19 (wk 31)

Pricings scheduled during the week include

• Fuqin Fintech (FQJR) on July 29 as well as 
• Dynatrace (DT), Kura Sushi USA (KRUS), Rapt Therapeutics (RAPT) and Sundial Growers (SNDL) on August 1. 

IPO lockup expiration

• New Fortress (NASDAQ:NFE) on July 30. 

A significant event for the IPO market will be Beyond Meat's (BYND) earnings report on July 29. Analysts will be watching revenue and EBITDA (break even?) guidance from the company to see what the expected impact is from the growing number of selling partnerships in place. Following the sputtering debuts this year of Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), Beyond Meat has helped to focus some investor attention back to the IPO market. Still, there is the question if the next-gen meat deserves its lofty valuation, which now stands higher than the market caps of Post Holdings (NYSE:POST), Campbell Soup (NYSE:CPB), Lamb Weston (NYSE:LW) and J.M. Smucker (NYSE:SJM) to name a few well-known food sector stalwarts.

Livongo Health (LVGO) began trading on the Nasdaq on Thur 25 July 2019

Note: Livongo Health acquired by Teladoc (TDOC) for approx. $18.5 billion. (Aug 2020)

The company was formerly known as EosHealth, Inc. and changed its name to Livongo Health, Inc. in 2014.

• Sector: Healthcare
• Industry: Medical Devices
• Full Time Employees: 576
• Incorporated in 2008
• HQ in Mountain View, California
• https://www.livongo.com

Livongo Health opens for trading at $40.51 after pricing IPO at $28

Castle Biosciences (CSTL) began trading on the Nasdaq on Thur 25 July 2019

• Sector: Healthcare
• Industry: Diagnostics & Research
• Full Time Employees: 94
• Founded in 2007 
• HQ in Friendswood, Texas
• http://castlebiosciences.com

Castle Biosciences priced 4 mln share IPO at $16.00 per share, at the high end of the $14-16 range

This was upsized from 3.3 mln shares
Opened for trading at $20

Health Catalyst (HCAT) began trading on the Nasdaq on Thur 25 July 2019

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations.

• Sector: Healthcare
• Industry: Health Information Services
• Full Time Employees: 700
• HQ: Salt Lake City, Utah
• http://www.healthcatalyst.com

Health Catalyst priceD 7 mln share IPO at $26.00 per share, above the expected range of $24-25
Opened for trading at $37.50

Health Catalyst Inc. on Thursday raised $182 million in its initial public offering, with shares trading well above a projected price of $26. The Salt Lake City-based company develops software that uses artificial intelligence to analyze data for hospitals and health-care companies.

ProSight Global (PROS) began trading on the NYSE on Thur 25 July 2019

ProSight Global, Inc. operates as an entrepreneurial specialty insurance company in the United States.

• Sector: Financial Services
• Industry: Insurance—Specialty
• Full Time Employees: 389
• http://www.prosightspecialty.com

ProSight Global priced 7,857,145 share IPO at $14.00 per share, below the expected range of $16-18
Opens for trading at $16.10

Sunnova Energy (NOVA) began trading on the NYSE on Thur 25 July 2019

Sunnova Energy International Inc. provides residential solar and energy storage services in the United States.

• Sector: Technology
• Industry: Solar
• Full Time Employees: 294
• Founded in 2012 and is headquartered in Houston, Texas.
• http://www.sunnova.com

Sunnova Energy priced downsized 14 mln share IPO at $12.00 per share, the low end of the expected $12-13 per share range
Opened for trading at $11.07

Inovalon (INOV) : 4-year performance

IPOs this week : July 22 - 26, 19

The week in IPOs kicks off with a pricing of

• Fellazo (FLLCU) on July 23, 

• followed by a busy Wednesday with pricing for Sunnova Energy (NOVA), Health Catalyst (HCAT), Livongo Health (LVGO), Casle Biosciences (CSTL) and Prosight Global (PROS). 

• Thursday pricings are due for the IPOs of Wanda Sports Group (WSG) and Vista Oil & Gas (VIST). 

• 
  

Quiet period expirations come for

• Crowdstrike (NASDAQ:CRWD) and Mohawk Group (NASDAQ:MWK) on July 22, 

• Fiverr (NYSE:FVRR) on July 23, and 

• Chewy (NYSE:CHWY) on July 24.

Medallia (MDLA) began trading on the NYSE on Fri 19 July 2019

Medallia is a software-as-a-service (SaaS) company specializing in real-time business intelligence.

Medallia, Inc. provides an enterprise Software-as-a-Service platform in North America, Europe, the Middle East, Africa, and internationally. The company's platform utilizes deep learning-based artificial intelligence technology to analyze structured and unstructured data from signal fields in human, digital, and Internet of Things interactions. Its Medallia Experience Cloud platform offers Customer Experience, Business Experience, Employee Experience, and Product Experience product suites. The company also provides separate modules, including Medallia Athena Text Analytics, Medallia Social, Medallia Digital Medallia Conversations, and Mobile Applications. In addition, it offers professional, managed, implementation, advisory, education and training, and customer support services. The company serves communications and media, hospitality, insurance, and automotive companies, as well as banks; and companies in retail, technology, and manufacturing industries.

• Founded in 2000 
• Headquartered in San Francisco, California.
• https://www.medallia.com

IPOs this week : July 15 - 19, 19

A busy week is set up for the IPO market with

• DouYu International (DOYU) pricing on July 17 and 

• Genmab (OTCPK:GMXAY), Assetmark Financial (AMK) Phreesia (PHR), Fulcrum Therapeutics (FULC) and Mirum Pharmaceuticals (MIRM) on July 18. 

• Medallia (MDLA) and Afya (AFYA) are also due to price on July 19. 

Quiet period expirations arrive on

• Stoke Therapeutics (NASDAQ:STOK), Grocery Outlet (NASDAQ:GO), Personalis (NASDAQ:PSNL), Akero Therapeutics (NASDAQ:AKRO), Atreca (NASDAQ:BCEL) and Prevail Therapeutics (NASDAQ:PRVL) on July 15. 

Expect to hear some discussion about Anheuser-Busch InBev (NYSE:BUD) on the likelihood of the beer giant refiling the Budweiser Brewing Company (BUDBC) IPO if market conditions in Hong Kong improve or if the company will move forward with its heavy debt load.

Tallgrass Energy (TGE) increases quarterly dash dividend to $0.54/share from $0.53/share

Tallgrass Energy increases quarterly dash dividend to $0.54/share from $0.53/share

• Forward Dividend & Yield 2.06 (10.09%)

Tilray (TLRY) : 1-year performance

StoneCo (STNE) : 9-month performance

IPOs this week : July 8 - 12, 19

IPO share lockups arrive on

• Mmtec (NASDAQ:MTC) and MDJM (NASDAQ:MDJH) on July 8. 

Analyst quiet period expirations on

• Crowdstrike (NASDAQ:CRWD) and Fiverr (NYSE:FVRR) are also scheduled for July 8, 
• while analysts involved in the IPO can start buzzing on Chewy (NYSE:CHWY) on July 9. 

CRWD, FVRR and CHWY all trade below their highs, but are all at least 30% over where their IPOs were priced.

Also of note next week, Anheuser-Busch InBev's (NYSE:BUD) listing of Budweiser Asia is expected to price in New York on July 11 before debuting in Hong Kong the following week. Anheuser-Busch is selling 1.6B primary shares between HKD$40 and HKD$47 hoping to raise $9.8B from the listing. The beer giant plans to pay down debt and the new entity could be in a better position to partner with local brewers such as ThaiBev (OTCPK:TBVPF) following the split.

Chewy (CHWY) : 3-week performance

1-week performance

3-week performance

Rattler Midstream LP (RTLR) began trading on the Nasdaq on Thur 23 May 2019

Rattler Midstream LP owns, operates, develops, and acquires midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin in West Texas. The company provides crude oil, natural gas, and water-related midstream services to Diamondback Energy, Inc.
It owns and operates 528 miles of crude oil gathering pipelines, natural gas gathering pipelines, and an integrated water system on acreage that overlays Diamondback's six core Midland and Delaware Basin development areas. The company was formerly known as Rattler Midstream Partners LP.

Sector: Energy
Industry: Oil & Gas Midstream
http://www.rattlermidstream.com
HQ: Midland, Texas.

=NIO : 10-month performance

Rattler Midstream LP (RTLR) : 6-week performance

-=Karyopharm Therapeutics (KPTI) prices blood cancer treatment after FDA approval

July 3 (Reuters) - Karyopharm Therapeutics Inc on Wednesday set a list-price for its blood cancer treatment Xpovio at $22,000 per month, following accelerated approval from the U.S. Food and Drug Administration.

Karyopharm said it expects Xpovio to become commercially available in the United States by July 10.

The list price is for all four available dosing packages, a company spokesman told Reuters.

Xpovio was approved in combination with dexamethasone for multiple myeloma patients who have received at least four prior therapies and who failed to respond to certain other treatments, the FDA said.

A late-stage study, currently testing Xpovio in combination with Takeda Pharmaceutical Co Ltd's Velcade and low-dose dexamethasone, will serve as a confirmatory trial, the company said.

Separately, in a regulatory filing https://www.sec.gov/Archives/edgar/data/1503802/000119312519189004/d694413d8k.htm on Wednesday, Karyopharm disclosed that its Chief Commercial Officer Anand Varadan, who joined the company last year, will depart effective July 5.

Xpovio's approval on Wednesday was based on results from a mid-stage study of 122 multiple myeloma patients who had previously received three or more treatment regimens, Karyopharm said.

The drug, chemically known as selinexor, binds to and inhibits a protein called XPO1, leading to the accumulation of cancer-suppressing proteins in the cells.

The FDA was to initially decide on the treatment's approval in April, but pushed back the date by three months to review additional data submitted by the company.

Multiple myeloma is estimated to cause nearly 13,000 deaths in the United States in 2019, according to the American Cancer Society.

Selinexor is also being tested in other types of cancer including lymphoma and endometrial cancer.

Karyopharm's shares closed up 36% on Wednesday.

BYND : 2-month performance

TW : 3-month performance

Kontoor (KTB) : Wrangler, Lee and a spin-off in denim

Sector: Consumer Cyclical
Industry: Apparel Manufacturing
Full Time Employees: 17,000
http://www.kontoorbrands.com

VF Corp. (VF) spun off Kontoor Brands, Inc. (KTB) on May 22, 2019 and regular trading in the shares began the next day.

After trading in the $40 range in when issued trading, Kontoor has fallen consistently since regular way trading began due to classic spin-off selling pressure.

Kontoor Brands is mainly comprised of the Wrangler and Lee denim brands. While these brands are not "hot", they are stable.

Scott Baxter, Kontoor Brands CEO and president, welcome employees at an event to celebrate the new company and it’s Wrangler and Lee brands employees at a BBQ lunch at corporate headquarters on North Elm Street in downtown Greensboro.

For example, revenue only declined by 11% during the Great Financial Recession. Further, denim has staying power. In 50 years, people will still be wearing jeans (although the styles will have changed).

Spin-offs usually unleash entrepreneurial forces as the spin-off is no longer weighed down by the bureaucracy of being part of a larger organization. This often results in the spin-off taking advantage of low hanging fruit that the parent company previously didn't prioritize.

An example of this is that Wrangler jeans are not available in China despite Lee being the leading denim brand in China. This will change in January 2020, when Wrangler will launch in China. Opportunities like this should improve KTB's revenue growth.

The quality of KTB's business is quite high as the business is not capital intensive; CapEx as a percentage of sales was only 0.80% in 2018. Historically, KTB has generated a return on equity of ~20%.

Rapid7 (RPD) reported earnings on Thur 1 Aug 19 (b/o)

** charts after earnings **

 

Rapid7 beats by $0.09, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY19 EPS in-line, revs above consensus

Reports Q2 (Jun) earnings of $0.02 per share, excluding non-recurring items, $0.09 better than the S&P Capital IQ Consensus of ($0.07); revenues rose 35.1% year/year to $78.96 mln vs the $75.14 mln S&P Capital IQ Consensus.

Co issues guidance for Q3, sees EPS of $(0.04)-(0.02), excluding non-recurring items, vs. $0.02 S&P Capital IQ Consensus; sees Q3 revs of $79.2-80.8 mln vs. $79.62 mln S&P Capital IQ Consensus.

Co issues guidance for FY19, sees EPS of approx $0.05, excluding non-recurring items, vs. $0.05 S&P Capital IQ Consensus; sees FY19 revs of $318-321 mln vs. $315.38 mln S&P Capital IQ Consensus.