Money & Markets Week Ahead Week of June 13, 2021: The earnings season continues to slow as companies prepare for their next quarterly report. I look at Israel’s “Software as a Service” IPO, analyze the revenues of popular grocery stores, and look at inflation data.
Here are some things to watch out for over the next week on Wall Street:
Forefront of IPO
There is only one Initial public offering (IPO) Calendar for the next few days.
Walkme Ltd. will price the IPO on Thursday. Listed on NASDAQ with the ticker symbol WKME.
what is that: WalkMe is an Israel-based “software as a service” company that has developed a platform that allows employees and customers to easily navigate websites and mobile apps.
This platform makes the user experience on your website look like GPS. This makes it easy for customers to make online transactions.
It also helps you automate your browsing of websites with little or no manual clicks or typing.
inside that F-1 filing Walkme, along with the Securities and Exchange Commission, serves approximately 2,000 clients worldwide.
Of these customers, 368 have annual recurring revenue (ARR) of over $ 100,000, of which 22 have ARR of over $ 1 million.
In 2020, WalkMe generated a total of $ 148.3 million in revenue between subscriptions and professional services. This is an increase from the $ 105 million that occurred the previous year.
In the first three months of 2021, the company reported total revenue of $ 38.4 million, compared to the $ 29.6 million reported in the same three months of 2020. This is a 30% increase in topline revenue.
The company reduced its year-over-year net loss from $ 50.1 million in 2019 to $ 45 million in 2020.
Most of the operating expenses came from sales and marketing activities.
During Fundraising roundThe company has raised approximately $ 345 million in equity investments from Greenspring Associates, Gemini Israel Ventures and Insight Partners.
Offering: WalkMe plans to sell 9.3 million shares in the $ 29- $ 32 price range per share.
The intent is to raise about $ 182 million in this offering.
by Renaissance CapitalAt a midpoint of $ 30.50 per share, WalkMe sees a market value of $ 2.9 billion.
Morgan Stanley, Goldman Sachs, Citi, Wells Fargo Securities, Barclays and BMO Capital Markets are all lead managers of this transaction.
skinny: This is a unique company with unique products.
Its revenue growth rate is about 25%, which is not bad. However, interest, taxes, depreciation, and income before depreciation are not very good … about -30%.
Walkme is generating more revenue, but its net loss is down slightly year-on-year.
I think the price of this IPO is a bit higher than the potential valuation.
I would see this IPO instead of jumping into it right away.
Popular grocery store chain Kroger Co. (NYSE: KR). We will report the quarterly financial results on Thursday.
These figures will focus on the quarter ending April 30, 2021.
Based in Cincinnati, Ohio, the chain operates a variety of grocery brands in 35 states, including Dillons, Food4Less, and Harris Teeter.
Kroger’s earnings are steadily rising
Despite closing the store during the 2020 COVID-19 pandemic, Kroger was able to report an increase in earnings per share in each of the four quarters of the year.
In April, the company reported record earnings ($ 1.22 per share) as the chain maintained delivery and curbside shopping.
These revenues declined slightly in the following quarters, but remained higher than in any other quarter since 2018.
However, Kroger has exceeded expectations for Wall Street’s quarterly earnings in 11 of the last 13 quarters.
Kroger’s quarterly earnings are consistent
There is a trend pattern in Kroger’s quarterly earnings.
Since 2018, the company reports that the quarter ending in April has much higher revenue than the other three quarters.
Kroger revenue for the April 2020 quarter was $ 41.6 billion. The next highest quarter of the year was the July quarter — $ 30.5 billion.
Kroger has exceeded analysts’ earnings forecasts in just seven of the last 13 quarters.
Wall Street predicts that it will report a profit of $ 0.98 per share with revenue of $ 39.6 billion.
skinny: Kroger was able to quickly pivot to grocery delivery and curbside pickups during the 2020 COVID-19 pandemic.
That’s one of the reasons why the financial situation remained stable when other small grocery chains struggled.
This quarterly report, like the other April quarterly reports, shows an increase in earnings and I think earnings per share will be $ 1.
Money & Markets Week Ahead: Data dump
Last week, the US Bureau of Labor Statistics found that the cost of goods and services jumped 5% to its highest level in 13 years.
On Tuesday, the bureau will release another set of numbers to draw a clearer picture of inflation.
The· Producer price index Find out the average price received by producers of domestic goods and services.
Producer price index continues to rise
Producer prices rose 0.6% in April and prices rose 1% in March.
The index has risen monthly since it fell 1.3% in April 2020.
Since its decline in April 2020, the index has recorded a total increase of 5.6%. This shows that the prices of domestic goods and services have risen steadily since the blockade of the COVID-19 pandemic.
Analysts predict a 0.5% increase in the index. This is the smallest increase in producer prices since December 2020.
At the end Money & Markets Week AheadLet’s take a look at some keys here Revenue Report scheduled for next week:
Azure Power Global Ltd. (NYSE: AZRE).
Hexo Corp. (NYSE: HEXO).
Oracle Corp. (NYSE: ORCL).
H & R Block Inc. (NYSE: HRB).
Anixa Biosciences Inc. (Nasdaq: ANIX).
Lennar Corp. (NYSE: Len).
Korn / Ferry (NYSE: KFY).
Honest Co. Inc. (Nasdaq: HNST).
Adobe Inc. (Nasdaq: ADBE).
Kroger Co. (NYSE: KR).
Jabil Inc. (NYSE: JBL).
Pure Bioscience Inc. (OTC: pure).
Livexlive Media Inc. (Nasdaq: LIVX).
That’s all for now.
Until next time…
Matt Clark, CMSA®
Survey analyst, Money & Market
Matt Clark is a research analyst Money & Market.. He is the host of our podcast, Bull & Bear,and The latest information on the marijuana market.. He is a Certified Capital Markets and Securities Analyst at the Corporate Finance Institute. Prior to joining the team, he spent 25 years as a research journalist and editor covering everything from politics to business.
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