Avigilon Profits Surge, Stock Jumps (Q2 2017)

Published Aug 10, 2017 14:40 PM

Avigilon said earlier this year they would shift their strategy to maximizing profits.

Now, they are delivering it and the stock market is rewarding them. 

Inside, we examine Avigilon's Q2 2017 financial results, look at major changes in Avigilon's approach and outlook for the company.

Avigilon ** *******

********'* ** **** ****** ****** * **% ******* ******** ($**.** vs $**.**).

**** ***********, **** **** ** ******** a $1.9M ****. ***, ******** ********* $*.** ** net ******. *** ***** ***** ***** their ****** ******:

***** *** ****** ** **** ********, it ** ***** **** ********* ** 2015 ******, ********* ********** ******** ********* in *** **** * ***** ******* matching ******* ******.

Expenses ****

********** *** ********, ******* ********* ******** were **** *** ***** *** ********* ***** relatively ****:

************, ******** *** **** *** **** aggressive ********* ** ********* ******** *** sales ************. ******** ***'* ***** ********* used ** ** *** "**** ** ***** ***** ** **** *****." ** ****.

********* ****

** ******* ***** *** ********, ***** employee ***** ** ******** **** **** over ****:

**** ** **** **** ********** ******** to *** **** ****** ****, **** 201 *** ********* **** ***** *** headcount ********* **%.

Focus ** ******* *******

********'* ***** ** ****** ***** ******* of ****** ***** ** ******* ***** **** ** *** most ****** *******. ******** *** **** almost ***********, ***** ******* *********, ******* no ***** ** ***** ********** ******** by ********'* ****** ****-******* *****.

Stock ***** ********

********'* ***** ***** ****** ** **% to **** *** *** ***** ******* were ********* ***, ** **** ** this *********** *** ***** ** ~**%.

Industry *******

** ******* ** ********, ***** *** challenges ** *** ******** *** *** downward ***** ******** **** ******** *** acknowledges ** ***** ** ****** ** hold *** ** **** **** ******** in * ******** ****** ***********. **** money *** ** *****, ****** ** retained ******** *** ****** ********* ** for * ******** ************* ******* ** make *** ******* **** ********** ** potential *********.

************** *********

**** ******* ** ** **** ** if ******** *** ***** ******* ****-**** as * ******-******* ************, ********** ** beat ******** ******** ****** *****, ***** maintaining * ******-********* ************.

********'* ****** ***** ** ***** ********** ***, and ** ** ********* ** ***** as ******, ******* *** **** ******* quarters, ** **** *****, ****** *** **** impact *** ** ********. ***** ********'* pipelines, *** ********** *******, **** ***** conceivably **** *** ***** ***** *** marketing ****** *** ***** *** ******, at ***** *** * *****, *** eventually **** * **** ***** ***** up ** **** *** ***** ******* to * ****. *****, ******** *** a *** ** **** *** ****-*******, previously ***** *** ******** ****** ******* at ***** ***** *** ******* ** to ***** ******** ******** **** ** army ** ******, **** ******** ********* of ******* ***** ** **** *********.

** ****, ********'* *********** ******** *******:

**’* *****-**** **** *** ****-**** ****. If ** **** ** ****** *********** in ****** ******, ** ***** ************ increase *** ****** ****, *** **** would **** ** ******* ***** ** the ****** ****.

*** ** **** **** ** ***** otherwise.

Comments (14)
JH
John Honovich
Aug 10, 2017
IPVM

Stockhouse is my guilty pleasure:

Remember, 9 months ago, the stock was 50% lower than it it today (~$8) so clearly Avigilon is making progress. On the other hand, the new 'normal' lower growth rates and questions of how much more operational efficiencies can deliver is going to constrain the stock price.

Related: Fool's Bet: Amateur Stock Investing

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Avatar
Brian Karas
Aug 10, 2017
IPVM

Avigilon closed out trading today at $16.00 even:

Not a bad 1-day jump, though it was up ~16% shortly after opening, so the initial surge did not carry through the day.

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JB
Jeremy Binder
Aug 11, 2017
Thiel Strategic Communications

Out of curiosity, John, do you, or any IPVM staff own any security industry stock?

JH
John Honovich
Aug 11, 2017
IPVM

Charlie, I do not now, nor have I, nor would I in the future, ever own any security industry stock or any stock in any company we cover, whether public nor private. 

I've asked the same of all who work at IPVM though I do not monitor their personal financial holdings.

(5)
JB
Jeremy Binder
Aug 11, 2017
Thiel Strategic Communications

That is great to know. Thanks!

Avatar
Brian Karas
Aug 11, 2017
IPVM

I do not.

Avatar
Brian Rhodes
Aug 11, 2017
IPVMU Certified

I do not either.

Avatar
Ari Erenthal
Aug 11, 2017

Me neither.

JB
Jeremy Binder
Aug 11, 2017
Thiel Strategic Communications

How long will I have to wait until Ace sells his shares and replies? :)

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JH
John Honovich
Aug 11, 2017
IPVM

Ethan is off today.

Suffice to say, we take even the perception of conflict of interest seriously. It is the same reason we do not offer any 'services' to manufacturers, etc.

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Avatar
John Scanlan
Aug 11, 2017
IPVM • IPVMU Certified

Nor do I

UI
Undisclosed Integrator #1
Aug 11, 2017

If any of them owned any Avigilon stock I am pretty certain the coverage of them would be a bit different than it has been the past few years.

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JH
John Honovich
Aug 11, 2017
IPVM

If any of them owned any Avigilon stock I am pretty certain the coverage of them would be a bit different than it has been the past few years.

This indirectly brings up another element. It's not just about being long in a stock, it's possible to short publicly traded companies.

I do not now, nor have I, nor would I in the future, ever short any security industry stock or any stock in any company we cover.

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U
Undisclosed #2
Aug 11, 2017

Buying and selling stock in the security industry would be stressful enough to cause increased money spent on therapy.:)  I'll stick with my conservative investments that make me a decent return with the rollercoaster ride.

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