Oppenheimer Downgrades Intellicheck After Q2 Revenue Miss

ID authenticator Intellicheck Inc IDN reported second-quarter results Tuesday that triggered an Oppenheimer downgrade. 

The Analyst

Oppenheimer's Shaul Eyal downgraded the stock from Outperform to Perform. 

The Thesis

Eyal said he downgraded the stock and removed its price target due after Q2 revenue fell below his estimate. (See the analyst's track record here.) 

While Intellicheck is making decent progress with its sales reorganization, Eyal said, the impact on execution and revenue predictability are a concern, the analyst said. The company's shift to a SaaS revenue model is still impacted by a declining non-SaaS business, he said.

Oppenheimer lowered its 2018 and 2019 estimates for Intellichek. 

Intellicheck reported revenue of $1 million, while Eyal expected $1.29 million. The company reported a loss of 7 cents per share, which was in line with Oppenheimer's expectations.

The quarter showed a continued decline in non-SaaS revenue of 42 percent year-over-year and slower-than-expected SaaS revenue growth of 5 percent quarter-over-quarter, Eyal said.

Oppenheimer lowered its 2018 revenue and earnings forecast from $5.62 million and a 25-cents-per-share loss to $4.3 million and a 26-cent loss. The firm also lowered its 2019 forecast from $8.4 million and a loss per share of 12 cents to $5.83 million and a loss of 16 cents.

The Price Action

Intellicheck was trading up 4.52 percent to $2.08 at the time of publication Wednesday. 

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