Revolution Lighting Technologies Inc (NASDAQ: RVLT)
Revolution Lighting Technologies is having a strong start to the day today after announcing two big pieces of news. First, the company has announced its earnings for the fourth quarter and guidance for the quarter ahead as well as the full year of 2016. Also, RVLT announced a reverse stock split that is coming down the line. Today, we’ll talk about both of these stories, how the market reacted to the news, and what we can expect to see from RVLT moving forward. So, let’s get right to it…
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Revolution Lighting Technologies Reports Earnings & Guidance
As expected, RVLT reported its earnings for the fourth quarter before the market open today. The company also offered information with regard to what it expects to do in the fiscal year 2016 as well as the first quarter of 2016. Here’s what we saw from the report:
- Earnings Per Share – In terms of earnings per share, RVLT came in slightly below expectations. In the fourth quarter, analysts expected that the company would generate earnings in the amount of $0.02 per share. However, the company actually reported earnings in the amount of $0.01 per share.
- Revenue – In terms of top-line revenue, RVLT did very well. In the quarter, analysts expected that the company would generate revenue in the amount of $42.7 million. However, the company actually generated revenue in the amount of $44.3 million.
- Guidance – Finally, Revolution Lighting Technologies reported relatively strong guidance. In the first quarter, the company is expecting to generate between $26 and $28 million in revenue and it sees full-year revenue coming in around $170 million.
RVLT Announces A Reverse Stock Split
Aside from earnings, RVLT made another big announcement today. At the opening of trading on March 11th, the company will be performing a one-for-ten reverse stock split, under which investors will receive one share for every 10 outstanding shares they own. In a statement, Robert V LaPenta, CEO and Chairman of Revolution Lighting Technologies, had the following to say:
“Revolution lighting is a dramatically different company than it was four years ago. The reverse stock split is an important step in the growth of our company as we continue to focus on shareholder value, improving marketability and liquidity.”
How The Market Reacted To The News
As investors, we know that the news moves the market. So, with such substantial pieces of news coming from RVLT early today, it only makes sense that we’re seeing movement on the stock. It’s clear by the movement that we’re seeing that investors are not only excited about the revenue beat and solid guidance, but also the reverse stock split. Currently (9:54), RVLT is trading at $0.77 per share after a gain of $0.03 per share or 4.22% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively bullish opinion of what we can expect to see from Revolution Lighting Technologies. First and foremost, it’s easy to brush off a slight miss on earnings at this stage in the game and exciting to see such strong revenue. Also, I have to say that full-year guidance came in a bit higher than what I was expecting, which is pretty exciting. When it comes to the reverse stock split on RVLT, I can understand the move from a liquidity standpoint. All in all, things are looking relatively positive for RVLT, and I’m expecting to see long-term gains.
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What Do You think?
Where do you think RVLT is headed moving forward and why? Let us know your opinion in the comments below!
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