What to do with titles from Lightspeed, BlackBerry and Bombardier? Here are some analyst recommendations that could move prices soon. Note: the author may have a totally different opinion from that expressed by the analysts.
Lightspeed (LSPD, $17.50): good quarterly results, but disappointing forecasts
Point-of-sale and payment solutions provider Lightspeed reported respectable fourth-quarter fiscal 2023 results in the eyes of analyst Martin Toner of ATB Capital Markets.
For the quarter ended March 31, Lightspeed reported revenue of $184.2 million, in line with analyst consensus forecasts. The loss before interest, taxes and amortization of $4.3M was lower than the expected $7.4M, while the net loss of $74.5M was larger than consensus expected, at 72. $9M.
“The company reported revenue forecasts of $195M to $200M in the first quarter of its fiscal 2024, while analysts on average expected them to reach $207.4M. The expected loss before interest, taxes and amortization of $10 million is also much higher than the $2.7 million that analysts had expected. The company, however, anticipates adjusted earnings per share at the break-even point, while analysts were forecasting a loss of $0.03”, lists Martin Toner.
For the full fiscal year 2024, Lightspeed sees revenue of $875M to $900M, while analyst consensus is $895.9M.
The company has confirmed the launch of its centralized point-of-sale and payment solutions platform. According to her, from now on, “new and existing customers will have to subscribe to a single centralized solution, in which Lightspeed Payments is integrated directly at the point of sale”.
Company management says this initiative has already launched with retail customers in North America and will expand to customers in the hospitality industry and globally in EMEA and Asia Pacific. during the first two quarters of fiscal year 2024.
“Lightspeed expects revenue to grow as the year progresses, but the benefits of higher penetration won’t be realized until 2025 and beyond,” Toner said. The latter expects the company to be profitable in its 2025 financial year.
He reiterates his recommendation of “outperformance” on the title, but lowers his target price over one year, which goes from $55 to $50.