Criteo SA (NASDAQ:CRTO) Up 15% on Superb Earnings Report


Criteo SA (ADR) (NASDAQ:CRTO) shares are up 15.36% this morning after the company released their fourth quarter and fiscal year 2015 results. Revenue for the year came in at €1,193 million, which is a 60% increase year-over-year, while quarterly revenue came in at €362 million, 55% better on a year-over-year basis.

For 2015, the company reported an adjusted EBITDA of €130 million, which equates to 10.9% of revenue, and for the fourth quarter the company saw adjusted EBITDA increase 53% year-over-year to €49 million.

“2015 was another terrific year for us. We crossed the 10,000 client and €1 billion revenue marks while continuing to invest significantly in innovation,” said Eric Eichmann, CEO. “I am thrilled to take the helm at such an exciting time and look forward to our 2016 initiatives.”

“I am very pleased with our growing profitability and strong free cash flow generation in 2015,” said Benoit Fouilland, Chief Financial Officer. “Our unique financial model continues to be a key differentiator in our space.”

The stock closed at $26.04 during the last trading session. It is down 47.37% since July 7, 2015 and is downtrending. It has underperformed the S&P500 by 37.90%.

From a total of 8 analysts covering Criteo SA (NASDAQ:CRTO) stock, 6 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $62 while the lowest target price is $36. The mean of all analyst targets is $51.86 which is 99.16% above today’s ($26.04) stock price. Criteo SA was the topic of 8 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Boenning & Scattergood initiated shares on February 5 with a “Outperform” rating. Susquehanna initiated shares with a”Positive” rating and a $60 target share price in their report from an August 10. Suntrust Robinson initiated CRTO stock in a recent report from December 22 with a “Buy” rating. Finally, Cowen & Co maintained the stock with a “Outperform” rating in a report they issued on a September 21.

The institutional sentiment decreased to 0.95 in Q2 2015. It’s down 0.53, from 1.48 in 2015Q2. The ratio is negative, as 28 funds sold all their Criteo SA (ADR) shares they owned while 48 reduced their positions. 24 funds bought stakes while 48 increased their total positions. Institutions now own 35.98 million shares which is 1.15% less than the previous share count of 36.40 million in 2015Q2.

Boussard & Gavaudan Investment Management Llp holds 11.09% of its total portfolio in Criteo SA (ADR), equating to 184,999 shares. Beaconlight Capital Llc owns 201,834 shares representing 4.59% of their total US portfolio. Moreover, Parus Finance (Uk) Ltd has 4.17% of their total portfolio invested in the company, equating to 406,295 shares. The New York-based Jericho Capital Asset Management L.P. has a total of 3.9% of their portfolio invested in the stock. Millrace Asset Group Inc., a Pennsylvania-based fund reported 72,790 shares owned.

Criteo S.A. is a global technology firm specializing in digital performance marketing. The company has a market cap of $1.63 billion. The Company’s solution consists of the Criteo Engine, the Company’s data assets, access to inventory, and its advertiser and publisher platforms. It has 39.91 P/E ratio. The Criteo Engine consists of multiple machine learning algorithms-in particular, prediction and recommendation algorithms-and the global hardware and software infrastructure.