Control4 Stock Climbs After Strong Q1 Earnings Announcment
More good news for the stalwarts of the smart-home revolution as Control4 continues to climb following a strong Q1 earnings report call, seeing stock rise 5.5% by closing time Friday.
A few highlights from the call included:
- Revenue rose 16.7% compared to last year $50.20 million compared to $47.29 analyst estimate
- Earnings hit $50.20 million compared to $47.29 analyst estimate
- Return on equity of 7.50%, net margin of 6.20%
It seems that analysists are becoming more bullish on the stock, with many analysists upgrading their ratings according to a BNB report. This also bodes well following the major Triad purchase back in May, a move that pushed the stock up 20% after an already strong Q4 2016.
Martin Plaehn, CEO and president of Control4, says that of the $50.2 million earned, about $1 million was from Triad products alone. Even without Triad in the Q1 mix, the company saw a 14.3% year-over-year growth. Plaehn also noted the high adoption rate of Pakedge products, announcing over 1,800 Control4 dealers had purchased Pakedge for the first time, growing from just 370 this time last year.
Plaehn also pointed to a few "additional accomplishments" that lead to their success.
"First, all of our connected home solutions contributed to our growth. They continue to be recognized as industry leading brands," Plaehn said in an earnings call. "Second, our platform ecosystem continues to strengthen via improved dealer tools, enhancement of Pakedge BakPak remote monitoring and management capabilities and even broader interoperability with third-party products."
Plaehn notes that the Simple Device Discovery Protocol technology or SDDP is now licensed by more than 220 companies which, in turn, is shipping more than 2,200 product models that are all SDDP-enabled.
"Third, our dealer channel support continues to scale and our effectiveness in improving dealer sales is also arising...Fourth, we continue innovating and delivering new industry-leading products."
"We believe focusing on these initiatives will collectively continue to build revenue and earnings growth, further strengthening our position as the leader in home automation and creating shareholder value by strengthening Control4 as the premium and preferred choice for homeowners and their families, custom homebuilders, independent connected home integrators and consumer electronic partners. We're pleased with our financial and operating performance in Q1and we're excited about Q2 and the balance of 2017 ahead."