Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.

2020-08-13 09:00

Remark Holdings Inc. (NASDAQ: MARK) is scheduled to publish its earnings report for the fiscal second quarter on Friday. The company was founded in 2006 and went public only after a year of operations in 2007. Remark Holdings remained a penny stock until April of 2020. Shares of the company started to climb in May on the back of a higher demand for its thermal scanning technology (touch-free) due to the Coronavirus pandemic that has so far infected more than 5.3 million people in the United States and caused over 169 thousand deaths.

Investors and analysts alike, however, are wary of the gain for two reasons. First, COVID-19 is not going to last forever, and second, there’s a massive competition in the thermal scanning space.

Remark’s performance in the stock market
Remark closed the regular session on Wednesday at $1.76 per share that represents an over 5% intraday decline. The stock jumped back roughly 2.5% to hit $1.80 per share in after-hours trading. It is currently just under 200% up year to date in the stock market after recovering from 27 cents per share in March when the impact of COVID-19 was at its peak. Remark, however, recovered quickly to touch a year to date high of $3.4 per share in late May.

The company reported its financial results for the first quarter on July 6th. Its Q1 revenue came in at $0.4 million versus a much higher $1.2 million registered in the same quarter last year. As a result, Remark saw a massive 27% intraday decline. The company, however, boasted to have slashed its losses to $3.9 million in the first quarter from $5.9 million that was attributed primarily to layoffs that helped minimize costs.

Remark said its dovish performance in the first quarter was ascribed to several factors including COVID-19 restrictions, U.S. – China trade tensions, and New Year’s celebrations in China.

Experts’ forecast for Remark’s Q2 earnings reports
For the fiscal second quarter, experts forecast the Las Vegas-based company to see a 5 cents of loss per share and $1.31 million of revenue. According to the analysts, the company’s net sales are likely to land at $8.05 million for the full year on a per-share loss of 19 cents. A consensus price target, as per Wall Street analysts, for Remark Holdings currently stands at $4.25 per share that implies a 128.49% upside potential as compared to the stock’s current price. Experts also highlight that Remark Holdings is currently a “Buy” stock. Its recommendation rating currently stands at 0.

In the past five years, the digital media company has recorded an average full-year earnings growth of 19.5%. Remark’s average daily trading volume usually holds at roughly 26.88 million, but it came in significantly lower at around 14 million earlier this week on Tuesday.

At the time of writing, the stock’s volatility is seen at 12.01%. Remark performed fairly downbeat in the stock market last year with an annual decline of roughly 50%. The digital media company is currently valued at $175 million.