Alarm.com Holdings Inc. Shares Climb Up On Better Than Expected Earnings

Published 03/19/2017, 02:07 AM
Updated 03/09/2019, 08:30 AM
ALRM
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Alarm.com Holdings, Inc. (NASDAQ:ALRM)

Alarm.com Holdings, Inc. (ALRM), a cloud-based software platform solutions company yesterday reported their fourth quarter and full year 2016 financial results. Alarm reported adjusted fourth quarter earnings of $0.19 per share which beat analyst expectations of $0.13 per share. Alarm reported fourth quarter revenues of $69.8 million which beat analyst expectations of $64 million.

Alarm.com Holdings, Inc. CEO’s Comments

We’re pleased to report solid results for the quarter as we closed another year of continued growth and profitability,” said Steve Trundle, President and CEO of Alarm.com. “During the year, we launched innovative new technology for our service provider partners, and we continued to develop growth initiatives that we believe will allow us to extend the Alarm.com platform into new markets in the future. With the acquisition of Connect and Piper from Icontrol Networks now completed, we can grow our research and development capacity and further increase our participation in the Internet of Things secular trend. Globe Newswire

ALRM Technical Analysis

ALRM Chart

ALRM opened trading yesterday at $30.36 which was up from the previous day’s trading close of $30.29. ALRM closed trading yesterday at $30.63 and spiked down after market to $33.50, equivalent to a 9% increase from the closing price. Taking a look at the daily chart we can see that we are in unchartered territory as with the spike up ALRM is now trading at all time highs.

Taking a closer look at the daily chart we can see that before the spike up ALRM had already been in an overall upward trend dating back to February 8th when it traded at $27.14. ALRM has a float of 15.66 million shares and traded 1.78 times the normal daily trading volume on Wednesday.

For trading purposes, I would like to see ALRM open trading on Thursday above $32.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.

Company Profile

Alarm.com Holdings, Inc. provides cloud-based software platform solutions for the connected homes in the United States and internationally. It offers multi-tenant software-as-a-service platform that allows home and business owners to intelligently secure and manage their properties, as well as remotely interact with an array of connected devices through a single intuitive interface.

The company provides interactive security solutions, which offer intelligent security and awareness services through a dedicated, cellular, and two-way connection to the home or business; and intelligent automation solutions that connects, integrates, and controls the devices in the home or business, such as security systems, garage doors, lights, door locks, thermostats, electrical appliances, environmental sensors, and other connected devices.

It also offers video monitoring solutions, which provide live streaming, smart clip capture, high definition continuous recording, and instant video alerts through its mobile app or on the Web; and energy management solutions that offer enhanced energy monitoring and management services.

In addition, the company provides service provider solutions, including a permission-based online portal that offers access to a set of marketing, sales, training, and support tools and information; installation and support tools and apps, which enables service providers to install and service their connected home customers; business management services; and sales, marketing, and training services. It has approximately 2.6 million residential and business subscribers. Alarm.com Holdings, Inc. was founded in 2000 and is headquartered in Tysons, Virginia.

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