Exa Corporation (EXA) PT Lowered to $17 at Stifel Following 4Q

Stifel lowered its price target on Exa Corporation (NASDAQ: EXA) to $17.00 (from $18.50) while maintaining a Buy rating. Exa delivered total revenue of $19.5M that fell short of $20.6M estimates.

Analyst Brad Reback commented, "Exa reported mixed F4Q17 results that came in below consensus on the top line and towards the lower end of management's guided range. Specifically, total revenue of $19.5M was up just 6% Y/Y in C.C. despite facing its easiest comp of the year, and fell well short of our $20.6M estimate. By product line, license revenue of $16M (up 11% Y/Y in C.C.) missed our number by ~$500K, while project revenue of $3.5M (down 11% Y/Y in C.C.) came up ~$600K short of our estimate. The silver lining to this sharp fall in product revenue is that Exa's license revenue, which is recurring in nature and carries a much more favorable gross margin profile, grew to represent a large proportion of the overall mix and helped drive adjusted EBITDA of $2.7M that came in ~$700K above our estimate."

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