Bear of the day: Angi Inc. (ANGI)
Angi Inc. ANGI is a technology company headquartered in Denver, Colorado. It connects users with repair, remodeling, cleaning and landscaping professionals who match your service needs and desired price range. Users can also request and compare quotes to get the best price for their home projects.
Summary of second quarter results
Revenue rose 12% year-on-year to $ 421 million, but missed Zacks’ consensus estimate of $ 424 million.
Net loss was $ 30.3 million, or $ 0.06 per share, compared to net income of $ 12.7 million, or $ 0.02 per share, in the last year’s quarter . Our consensus estimate was for a loss of $ 0.03 per share.
Adjusted EBITDA fell to $ 4.4 million during the period.
Net operating cash flow fell to $ 59.3 million for the six-month period ended June 30, while free cash flow decreased by nearly $ 80 million to $ 23.5 million.
The company also announced that it repurchased 700,000 shares at an average price of $ 11.71 a piece between May 7 and August 3.
ANGI is now a Zacks Rank # 5 (strong sell).
Four analysts have slashed their outlook for annual earnings over the past 60 days. ANGI’s net income is expected to decline 1.36% year-over-year, and the consensus estimate has fallen $ 0.05 to a loss of $ 0.15 per share for fiscal 2021 Consensus on next year’s earnings has also fallen, and Wall Street now expects earnings to be in the red.
Shares have been volatile so far in 2021. Year-to-date ANGI is down 21.4% from the S&P 500’s roughly 19% gain.
Going forward, things may continue to be difficult for Angi as she fixes the issues with her rebranding initiative; the company wants to focus more on strengthening the Angi brand while reducing and reducing spending on the HomeAdvisor brand.
But due to the hot housing market as well as the Covid-19 pandemic, Angi continues to benefit consumers looking to invest in home improvement projects; However, some professionals and entrepreneurs are struggling to find daily labor, which has resulted in supply pressure for Angi.
Until the outlook for management’s rebranding strategy improves, potential investors may want to sit on the sidelines.
Those looking to add an internet stock to their portfolio might want to consider Airbnb ABNB. ABNB is a # 2 (Buy) on Rank Zacks. Three analysts have raised their earnings outlook for the current year, and earnings are expected to rise more than 87% year-on-year.
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