Robertson Stephens Reiterates Buy Rating on Exodus Communications

Strategic Insights -

FleetBoston Robertson Stephens Inc. announced on April 24, 2000, that it is reiterating its Buy rating on Exodus Communications Inc. (NASDAQ:EXDS). The company's Managing Director and Senior eCommerce Services Analyst, Rick Juarez, noted that Exodus reported strong first-quarter 2000 revenues of $134.1 million, surpassing estimates by $0.9 million or 0.7 percent.

"We believe that Exodus is one of the leading contenders in a new category that we term the Internet Utility Platform or IUP provider, which tightly integrates the access and hosting components," said Juarez. "Exodus reported better-than-expected gross margins and positive EBITDA, which we believe are testimony to the strength of the Exodus model."

Key Takeaways:

  • Exodus reported strong first-quarter 2000 revenues of $134.1 million, surpassing estimates by $0.9 million or 0.7 percent.
  • The company's earnings-per-share of ($0.23) beat the consensus estimate by $0.02 and $0.03 respectively.
  • Exodus is a leading contender in the Internet Utility Platform (IUP) provider category, which integrates access and hosting components.
  • The company reported better-than-expected gross margins and positive EBITDA, demonstrating the strength of its model.
  • Robertson Stephens is reiterating its Buy recommendation and price target of $245 for Exodus.

Statistics:

  • First-quarter 2000 revenues: $134.1 million
  • Estimated increase in revenues: $0.9 million or 0.7 percent
  • Earnings-per-share: ($0.23)
  • Consensus estimate: $0.21
  • Gross margins: better-than-expected
  • EBITDA: positive
  • Fiscal 2000 revenues: $780.5 million (raised from $752.9 million)
  • Fiscal 2001 revenues: $1.65 billion (raised from $1.4 billion)

Sources:

  • Business Wire - April 24, 2000
  • FleetBoston Robertson Stephens Inc.
  • Nasdaq (EXDS)
  • Robertson Stephens (Legal name: FleetBoston Robertson Stephens Inc.)