Why are both these stocks up?
For one, Alarm.com is increasing their guidance for Q4 2015. For the full year 2015, they have beaten their guidance across all financial metrics:
For the full year 2015:
- SaaS and license revenue is now expected to be approximately $139.9 million to $140.1 million, compared to the previous guidance range of $138.9 million to $139.3 million.
- Total revenue is now expected to be approximately $197.7 million to $200.1 million, which includes anticipated hardware and other revenue for the year in the range of $57.8 million to $60.0 million. This compares to the previous guidance range of $193.9 million to $195.3 million, which included the previous hardware and other revenue guidance range of $55.0 million to $56.0 million.
- Adjusted EBITDA is now expected to be approximately $27.7 million to $29.1 million, compared to the previous guidance range of $20.3 million to $21.3 million.
- Non-GAAP adjusted net income is now expected to be approximately $14.9 million to $15.6 million, compared to the previous guidance range of $9.8 million to $10.3 million.
They also beat expectations:
The company reported $0.51 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.48 by $0.03. The firm earned $899 million during the quarter, compared to analysts’ expectations of $897.05 million. The company’s revenue for the quarter was up 1.8% compared to the same quarter last year. During the same period in the prior year, the company posted $0.55 EPS.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 18th.
The home automation and security space is only going to continue to get larger as time goes on.