We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GoDaddy (GDDY) Hits 52-Week High: What's Driving the Stock?
Read MoreHide Full Article
Shares of GoDaddy Inc. (GDDY - Free Report) hit a 52-week high of $45.26 on Aug 9, before closing a tad lower at $44.
The company’s shares have charted a solid trajectory in recent times, appreciating over 33.4% over the last one year, ahead of the industry’s gain of roughly 12.8%. Notably, the company has witnessed an 3.7% jump in share price since it posted encouraging second-quarter 2017 results.
Let’s find out what’s supporting the rally.
Earnings & Revenues Beat Estimates, Rise Y/Y
The company reported strong second-quarter results wherein both earnings and revenues exceeded the Zacks Consensus Estimate.
Non-GAAP earnings of 13 cents per share were up significantly from a penny in the prior quarter and a loss of 11 cents per share in the year-ago quarter. Revenues of $558 million increased 13.9% sequentially and 22.3% year over year.
Management provided strong guidance for the third quarter and expects revenues in the range of $577–$582 million, up 3.9% at mid-point.
For full-year 2017, GoDaddy raised the lower end of its revenue guidance. It now expects revenues in the range of $2.215 to $2.225 billion compared with its earlier guidance of $2.195–$2.225 billion. The new guidance represents year-over-year growth of approximately 20%.
Strong Product and Marketing Roadmap for 2017
GoDaddy’s strong product and marketing roadmap for 2017 is a big positive. The company’s new mobile-optimized website builder, GoCentral, has been gaining momentum. The company intends to release additional new GoCentral verticals, markets and features throughout 2017. During the quarter, the company also witnessed a 17.8% increase in its customer base from the year-ago quarter.
Host Europe Buyout
In April, GoDaddy completed the acquisition of Host Europe Group for €1.69 billion (US$1.79 billion) and the integration remains well on track. The deal expands GoDaddy's presence in international markets. It also complements GoDaddy's business as HEG has a similar customer base comprising small ventures and web professionals.
Going Forward
Investment in products, its technology platform, international expansion and customer care as well as delivering innovative and increasingly personalized products and services globally should drive shareholder value.
Long-term expected earnings per share growth rate for Alibaba, Lam Research and Luxoft is projected to be 29%, 17.2% and 20%, respectively.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Image: Bigstock
GoDaddy (GDDY) Hits 52-Week High: What's Driving the Stock?
Shares of GoDaddy Inc. (GDDY - Free Report) hit a 52-week high of $45.26 on Aug 9, before closing a tad lower at $44.
The company’s shares have charted a solid trajectory in recent times, appreciating over 33.4% over the last one year, ahead of the industry’s gain of roughly 12.8%. Notably, the company has witnessed an 3.7% jump in share price since it posted encouraging second-quarter 2017 results.
Let’s find out what’s supporting the rally.
Earnings & Revenues Beat Estimates, Rise Y/Y
The company reported strong second-quarter results wherein both earnings and revenues exceeded the Zacks Consensus Estimate.
Non-GAAP earnings of 13 cents per share were up significantly from a penny in the prior quarter and a loss of 11 cents per share in the year-ago quarter. Revenues of $558 million increased 13.9% sequentially and 22.3% year over year.
GoDaddy Inc. PE Ratio (TTM)
GoDaddy Inc. PE Ratio (TTM) | GoDaddy Inc. Quote
Impressive Guidance
Management provided strong guidance for the third quarter and expects revenues in the range of $577–$582 million, up 3.9% at mid-point.
For full-year 2017, GoDaddy raised the lower end of its revenue guidance. It now expects revenues in the range of $2.215 to $2.225 billion compared with its earlier guidance of $2.195–$2.225 billion. The new guidance represents year-over-year growth of approximately 20%.
Strong Product and Marketing Roadmap for 2017
GoDaddy’s strong product and marketing roadmap for 2017 is a big positive. The company’s new mobile-optimized website builder, GoCentral, has been gaining momentum. The company intends to release additional new GoCentral verticals, markets and features throughout 2017. During the quarter, the company also witnessed a 17.8% increase in its customer base from the year-ago quarter.
Host Europe Buyout
In April, GoDaddy completed the acquisition of Host Europe Group for €1.69 billion (US$1.79 billion) and the integration remains well on track. The deal expands GoDaddy's presence in international markets. It also complements GoDaddy's business as HEG has a similar customer base comprising small ventures and web professionals.
Going Forward
Investment in products, its technology platform, international expansion and customer care as well as delivering innovative and increasingly personalized products and services globally should drive shareholder value.
Zacks Rank and Stocks to Consider
GoDaddy currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader sector include Alibaba (BABA - Free Report) , Lam Research Corporation (LRCX - Free Report) and Luxoft Holding , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share growth rate for Alibaba, Lam Research and Luxoft is projected to be 29%, 17.2% and 20%, respectively.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>