Shares of Everpure Inc (NYSE:P) tanked in early trading on Thursday, after the company reported its second-quarter results.
Here are some key analyst takeaways:
- Wedbush analyst Matt Bryson maintained an Outperform Neutral rating, while lifting the price target from $127 to $130.
- Needham analyst Mike Cikos reiterated a Buy rating and raised the price target from $100 to $140.
- Guggenheim Securities analyst Howard Ma maintained a Buy rating and price target of $150.
Check out other analyst stock ratings.
Wedbush: "Everpure delivered the beat we expected, and the more significant annual revision we have argued was missing since May," Bryson wrote in a note. He highlighted the following results:
- Revenues grew 38% year-on-year to $1.186 billion, clearing the high end of the guidance range
- Non-GAAP earnings of 70 cents per share came in higher than consensus of 58 cents per share
- Non-GAAP operating margin of 19.4% was around 120 basis points (bps) above the midpoint of the guidance range
Management raised their full-year revenue guidance to $5.03-$5.07 billion, from their previous outlook of $4.41-$4.51 billion, and its operating profit guidance to $940-$960 million, from the prior $820-$860 million, the analyst stated. "We see this guidance as reasonable, albeit still very beatable," he further wrote.
Needham: Everpure delivered a "sizable" beat, revenue accelerating for the fourth consecutive quarter, Cikos said. Management now expects revenue to grow 37%-38% in fiscal 2027 to $5.03-$5.07 billion, which represents "a significant increase in growth from previous expectations for 20%-23%," he added.
The midpoint of the revenue guidance has been raised by more than the second-quarter beat, "reflecting management’s improved visibility and confidence in converting pipeline," the analyst wrote.
Guggenheim Securities: Everpure reported total revenue 8% above consensus estimates, Ma said. He added that this included:
- Product revenue of $687 million, up 54% year-on-year
- Subscription services revenue of $499 million, up 20% year-on-year
"Management attributed the revenue outperformance to higher ASPs partially offset by less capacity, while hyperscaler revenue contribution was minimal," the analyst wrote.
Large deals of over $5 million were up 59% year-on-year, while deals above $20 million grew 385%, he further stated.
P Price Action: Shares of Everpure had declined by 7.62% to $100.60 at the time of publication on Thursday.
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