Month: November 2019

Research – Entravision Communications Corporation (EVC) – What It Can Do To Change The Narrative?

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Friday, November 8, 2019

Entravision Communications Corporation (EVC)

What It Can Do To Change The Narrative?

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Q3 results disappoint. Total company revenues of $68.8 million was 2% below our $70.3 million estimate and cash flow at $9.1 million was 27% below our $12.5 million estimate. The biggest variance to our cash flow estimate was in the company’s Digital businesses.
  • Difficult Q4 ahead.  Lackluster core advertising and the absence of Political is likely to weigh on Q4 results. We are lowering our Q4 and …


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Eagle Bulk Shipping (EGLE) – Stock Price Weakness Spells Opportunity

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Friday November 8, 2019

Eagle Bulk Shipping (EGLE)

Stock Price Weakness Spells Opportunity

Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • TCE rate underperformance surprise and quarter light of expectations. Adjusted 3Q2019 EBITDA of $13.1 million was below our $18.1 million estimate due to lower TCE revenue and lower TCE rates.

  • Shortfall and scrubber program update pushes 2019 EBITDA estimate down to $58.4 million from $66.6 million.  Higher off-hire days for scrubbers and lower TCE rate estimates of $10,666/day, down from…


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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Genco Shipping (GNK) – Improving Financials and Asset Sales Trigger Special and Regular Dividends

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Thrusday, November 7, 2019

Genco Shipping & Trading Limited (GNK)

Improving Financials and Asset Sales Trigger Special and Regular Dividends

Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels. The Company is engaged in the ocean transportation of drybulk cargoes around the world through the ownership and operation of drybulk carrier vessels. As of December 31, 2016, its fleet consisted of 61 drybulk carriers, including 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,735,000 deadweight tons (dwt). Of the vessels in its fleet, 15 are on spot market-related time charters, and 27 are on fixed-rate time charter contracts. As of December 31, 2016, additionally, 19 of the vessels in its fleet were operating in vessel pools.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Adjusted 3Q2019 EBITDA of $22.7 million and TCE rate of $11,687/day in line with expectations. Despite high shipyard activity, operating results improved and 1H2019
    weakness is clearly in rear view miror. More color expected on today’s call at 8:30 am EST. Number is 800-479-1004 and code is 3702137.

  • Increasing 2019 EBITDA estimate to $79.3 million. 4Q2019 EBITDA of $33.7 million and TCE rates of $13,500/day look reasonable given forward cover with 64% of available days booked at $14,041/day. Lowering 2020 EBITDA estimate to $150.7 million based on…


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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Information Services Group (III) – Mixed Third Quarter Results, But Record Adjusted EBITDA and Strong Cash Generation

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Thrusday, November 7, 2019

Information Services Group Inc. (III)

Mixed Third Quarter Results, But Record Adjusted EBITDA and Strong Cash Generation

Information Services Group (ISG) (III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • 3Q19 Results. ISG reported third quarter revenue of $68.1 million, adjusted EPS of $0.09, and record adjusted EBITDA of $10.3 million. We had forecast revenue of $72 million, adjusted EPS of $0.08, and adjusted EBITDA of $10.2 million. Consensus was $71.1 million of revenue and EPS of $0.07.
  • Highlights. Americas region has its strongest quarterly revenue growth since 2017, highest quarterly adjusted EBITDA ever, and…


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This Company Sponored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Kelly Services Inc. (KELYA) – What Was Behind the Disappointing 3Q19 Results?

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Thursday, November 7, 2019

Kelly Services Inc. (KELYA)

What Was Behind the Disappointing 3Q19 Results?

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Miss on top and bottom lines. Kelly Services reported 3Q19 revenue of $1,267.7 million and adjusted EPS of $0.37, this compares to $1,342.4 million and $0.56, respectively, last year. We forecast $1,345 million and $0.51, respectively. The miss was due to revenue declines across all three operating segments.
  • Challenging Quarter. U.S. top line was negatively impacted by a slow uptick in the restructured branch operations network and a…


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This Company Sponored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Seanergy (SHIP) – 3Q2019 Shortfall Masks Improving Operating Results

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Thursday November 7, 2019

Seanergy (SHIP)

3Q2019 Shortfall Masks Improving Operating Results

Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • 3Q2019 results below expectations.  3Q2019 EBITDA of $9.8 million was below expectations due to higher downtime due to the scrubber program and other drydocking activity. In addition, TCE rates of $20,143/day were ~$4,000/day below our estimate in part due to an accounting change. SHIP switched to load-to-discharge accounting whereby revenues are not recorded for Capes in transit at the quarter cut-off date.

  • Adjusting EBITDA estimates to $24.8 million in 2019 (from $26.3 million) and $51.3 million in 2020 (from $50.2 million) to reflect 3Q2019 shortfall but 4Q2019 forward cover update. 80% of available 4Q2019 operating days are booked at an average rate of $25.8k/day. We lowered our 2019 Cape TCE rate estimate to $14.8k/day (from $15.3k/day) and…


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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Endeavour Silver (EXK): Third Quarter In Line With Our Expectations; Lowering 2020 Estimates

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Wednesday November 06, 2019

Endeavor Silver (EXK)

Third Quarter In Line With Our Expectations; Lowering 2020 Estimates

Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. It is also involved in exploration activities in Chile. The company is organized into three operating mining segments, Guanacevi, Bolanitos and El Cubo, which are located in Mexico as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Third quarter results in line with estimates.  Endeavour reported a third quarter loss of $6.8 million, or ($0.05) per share, compared to a loss of $5.5 million, or ($0.04) per share during the prior year period. We had projected a loss of $6.8 million, or ($0.05) per share. Adjusted EBITDA were $1.8 million compared to $6.3 million generated during the prior year period.

  • Lowering 2020 estimates. While we are making no changes to our 2019 estimates, we are lowering our 2020 EPS estimate to $0.08 per share from $0.12 due mainly to narrower margin assumptions. We now forecast…


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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Great Lakes Dredge & Dock (GLDD): Backlog rebounded and set up for strong finish to year

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Wednesday, November 6, 2019

Great Lakes Dredge & Dock (GLDD)

Backlog rebounded and set up for strong finish to year

Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • A down quarter due to equipment downtime, but rebound underway.  Revenue of $169.8 million and EBITDA of $27.1 million were below our estimates due to equipment downtime and two hurricanes (Barry/Dorian), but profitability was steady even with heavy drydock activity.

  • Fine-tuning 2019 EBITDA estimate of $131 million with positive 4Q2019 outlook. Maintaining our 2020 EBITDA in the $140 million range. Current backlog is positive, plus the Clamshell 52 and…


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Kratos Defense & Security (KTOS): Another Solid Quarter But Will Continuing Resolution Hit The Pause Button?

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Wednesday, November 6, 2019

Kratos Defense & Security (KTOS)

Another Solid Quarter But Will Continuing Resolution Hit The Pause Button?

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • 3Q19 Results. Kratos reported solid 3Q19 results, with quarterly revenue of $184.1 million and $20.4 million of adjusted EBITDA topping our estimates of $180 million and $17.1 million, respectively. The Unmannned segment was the driving force behind the better than expected results, with segment revenue up 37.2%.
  • Follows Recent Additional Awards.   hursday’s announcement comes on the heels of two other unmanned awards, including a $23 million award in early August for a production run of target jet drones and a $4.8 million award in mid-August for…


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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Townsquare Media (TSQ): Scores Another Good Quarter

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Wednesday November 6, 2019

Townsquare Media Inc (TSQ)

Scores Another Good Quarter

Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others. The segments through which the company operates its businesses are classified into Local marketing solutions and Entertainment segments. Revenues are generated from commercials through broadcasts and sale of internet based advertisements.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Over delivers on the quarter.  Third quarter revenues of $112.5 million was better than our $109.8 million estimate. Cash flow (adj. EBITDA) of $28.8 million was better than our $27.9 million estimate, as well. The results benefited from strong Digital revenues, up an impressive 25% in the quarter.

  • Raised 2019 guidance.  Revenue guidance was raised to the higher end of its previous range of $428 million to $430 million and…


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This Company Sponored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Vectrus (VEC): Can Outperformance Continue?

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Wednesday, November 6, 2019

Vectrus (VEC)

Can Outperformance Continue?

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Strong 3Q19 Results.  Vectrus reported 3Q19 revenue of $359.9 million, adjusted EBITDA
    of $16.7 million, EPS of $0.80, and adjusted EPS of $0.84. Consensus called for revenue of
    $349 million and EPS of $0.78. We were at $355 million and $0.82, respectively.
  • Expanding Footprint. Vectrus continues to expand it footprint, not just geographically but also customerwise. During the quarter, VEC was awarded business in the AFRICOM Area of Responsibility. Business with…


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This Company Sponorsed Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research -Coeur Mining (CDE): Q3 Results Better Than Expected; Increasing Estimates

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Wednesday November 06, 2019

Coeur Mining (CDE)

Q3 Results Better Than Expected; Increasing Estimates

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. It is involved in the discovery and mining of gold and silver and generates the vast majority of revenue from the sale of these precious metals. The operating mines of the company are palmarejo, rochester, wharf, and kensington. Its projects are located in the United States, Canada and Mexico, and North America.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Quarterly financial results better than expected.  The company reported a third quarter adjusted loss of ($0.02) per share, compared to an adjusted loss per share of ($0.11) during the prior year period and our estimate of ($0.07). Adjusted EBITDA amounted to $61.0 million versus $24.7 million during the third quarter of 2018. Free cash flow increased to $11.3 million versus a loss of $33.7 million during the prior year period. Variances to our estimate were predominantly in costs, most notably amortization.
  • Increasing 2020 estimates. We are reducing our 2019 loss estimate to ($0.22) per share from ($0.32) per share and increasing our 2020 EPS estimate to $0.10 from $0.04. We project 2019 and…


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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Are Strong Earnings a Sign that Economic Concerns are Unwarranted?

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Are Strong Earnings a Sign that Economic Concerns are Unwarranted?

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

With 70% of the companies in the S&P 500 having reported September-quarter earnings, an impressive 76% have reported results above expectations as announced by Factset.  This is above historical averages.  In aggregate, results have been 3.8% above the consensus estimate.  Nevertheless, concerns remain.  Are the quarter’s results a sign that things are better than expected (Bull Case) or are there enough cracks to point out growing economic and political concern (Bear Case)?