Complete data analysis of good business: Endava plc (NYSE: DAVA)

On 17 March 2020, Endava plc (NYSE: DAVA) stock identified change of 39.89% away from 52-week low price and recently located move of -38.34% off 52-week high price. It has market worth of $2058M. DAVA stock has been recorded -27.33% away from 50 day moving average and -17.26% away from 200 day moving average. Moving closer, we can see that shares have been trading -29.53% off 20-day moving average.

Endava plc (NYSE: DAVA) recently reported results for the three months ended December 31, 2019, the second quarter of its 2020 fiscal year (“Q2 FY2020”).

SECOND QUARTER FISCAL YEAR 2020 FINANCIAL HIGHLIGHTS:

Revenue for Q2 FY2020 was £85.9M, a raise of 19.6% contrast to £71.8M in the same period in the previous year.

Revenue growth rate at constant currency (a non-IFRS measure) was 20.5% for Q2 FY2020 contrast to 42.4% in the same period in the previous year.

Loss before tax for Q2 FY2020 was £(17.3)M contrast to profit before tax of £9.4M in the same period in the previous year. The loss during the quarter is the result of the declaration of a non-recurring, discretionary employee bonus of £27.7M in December 2019. The Endava Limited Guernsey Employee Benefit Trust (“EBT”) funded the first tranche of the bonus through sales of Endava’s Class A ordinary shares in November 2019. The funding of the second tranche by the EBT is predictable to occur during the second half of FY2020. As before revealed, the EBT, whose beneficiaries are our employees, was holding certain Class A ordinary shares for sale in the event it decided to fund a discretionary cash bonus to our employees.

Adjusted profit before tax (a non-IFRS measure) for Q2 FY2020 was £20.5M contrast to £13.6M in the same period in the previous year, or 23.8% of revenue contrast to 18.9% in the same period in the previous year.

Loss for the period was £(13.8)M in Q2 FY2020, resulting in a diluted EPS of £(0.25), contrast to profit for the period of £7.4M and diluted EPS of £0.14 in the same period in the previous year.

Adjusted profit for the period (a non-IFRS measure) was £16.8M in Q2 FY2020, resulting in adjusted diluted EPS (a non-IFRS measure) of £0.30 contrast to adjusted profit for the period of £10.9M and adjusted diluted EPS of £0.20 in the same period in the previous year.

Third Quarter Fiscal Year 2020:

We expect revenues will be in the range £87.5m to £88.0m, representing constant currency growth of between 26% and 27%. We expect adjusted diluted EPS to be in the range of £0.21 to £0.22 per share.

Full Fiscal Year 2020:

We expect revenues will be in the range £349m to £353m, representing constant currency growth of between 25% and 26%. We expect adjusted diluted EPS to be in the range of £0.95 to £0.99 per share.

Our guidance regarding constant currency growth is pro-forma for the sale of Endava Technology SRL, also referred to as “the Worldpay Captive,” to Worldpay. The transaction closed on August 31, 2019.

This quarter, we are providing guidance for Q3 FY2020 and for the Full Fiscal Year 2020 using the exchange rates at the end of January, when the exchange rate was 1 GBP to 1.31 USD and 1.19 Euro.

Endava is not able, at this time, to provide an outlook for IFRS diluted EPS for Q3 FY2020 or FY2020 because of the unreasonable effort of estimating certain items that are excluded from adjusted diluted EPS, including, for example, share-based compensation expense, amortisation of purchased intangible assets and foreign currency exchange (gains)/losses, the effect of which may be important.

The Technology sector company, Endava plc noticed change of 6.19% to $35 along volume of 390656 shares in recent session compared to an average volume of 175.49K. DAVA’s shares are at -24.86% for the quarter and driving a 31.18% return over the course of the past year and is now at -24.89% since this point in 2018. The average volatility for the week at 12.93% and for month was at 7.11%.

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