Exa Corporation (EXA) PT, Estimates Lowered at Needham & Company Post Q4

Needham & Company analyst James Ricchiuti lowered estimates and his price target on Exa Corporation (NASDAQ: EXA) to $13.00 (from $15.00) following Q4 results but maintained a Buy rating.

Ricchiuti commented, "EXA posted better than better than expected FQ4 revenues despite stiff Fx headwinds. Adjusted EBITDA also was above the high end of guidance. Revenues on a constant currency basis were up 18%, the third consecutive quarter of mid- to upper teens revenue growth on a constant-currency basis. Currency will continue to impact not only the top line but EBITDA as well, although management expects 13-17% revenue growth in F16 on a constant currency basis. Given the distortions on the company's revenues and earnings created by currency, it would be easy to dismiss the progress EXA is making. We maintain our Buy rating based on the improving underlying revenue growth that EXA is demonstrating and our view that profitability will follow. We see limited downside, with shares trading at 1.6x EV to out-year revenues."

The firm lowered FY 2016 EPS from $0.06 to ($0.28) and set FY 2017 at $0.00.

For an analyst ratings summary and ratings history on Exa Corporation click here. For more ratings news on Exa Corporation click here.

Shares of Exa Corporation closed at $10.49 yesterday.

You May Also Be Interested In

• JPMorgan Downgrades Boyd Gaming (BYD) to Neutral
• JPMorgan Upgrades Dow Inc. (DOW) to Overweight
• Needham Upgrades Silicon Labs (SLAB) to Buy