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Will This News Move These Stocks? - July 10

ReShape Lifesciences Inc. (RSLS)

ReShape Lifesciences Inc. (RSLS), a company that makes medical devices to treat obesity and metabolic diseases, announced the successful implant of the first ReShape Balloon at a Boston hospital.

The FDA-approved ReShape Balloon System involves a non-surgical weight loss procedure that uses advanced balloon technology designed to take up room in the stomach to help people with a 30-40 kg/m2 Body Mass Index or BMI and at least one co-morbidity, lose weight.

Scott Shikora, Chief Medical Officer at ReShape Lifesciences, who performed the implant called the ReShape Balloon a "minimally invasive and non-anatomy altering weight loss solution."


Cloud Communications Platform company Pareteum Corp. (TEUM) said it sees Q2 revenues of at least $5.75 million, representing 78% growth from year-ago, and 40% growth from the previous quarter. Analysts are modeling revenues of $4.75 million. The company also said it now sees 80% revenue growth in FY18 vs. FY17, which is way ahead of the 61% growth analysts are modeling.

Connections, a lead indicator of revenue, rose to around 2,713,600 as of June 30, 2018, up 22.5% from the previous quarter, and whopping 225% increase from year-ago levels, the company noted, calling this the reason behind its upbeat FY18 guidance.

Hal Turner, Executive Chairman and Principal Executive Officer of Pareteum, commented, "Our TEUM surged into 2018 with strong first quarter results, demonstrated by the acceleration in revenues and connections. This momentum has continued into the second quarter, at an accelerating rate, because of rapid conversions of our 36 Month Contractual Revenue Backlog. We see this translating into our best quarter, ever."

Beazer Homes USA, Inc. (BZH) features on Short-Term Investor, after it forecast earnings per share above $2.50 for fiscal 2019, vs. the consensus estimate of $2.07 per share, citing expected contributions from a new acquisition.

For the third-quarter, the homebuilder sees homebuilding revenue of $507.0 million, supported by 1,391 home closings and an average selling price of $364.5 thousand. New home orders totaled 1,450, while dollar value of backlog was $920.7 million.

Providing guidance for the rest of 2018, the company said it would achieve its long-stated "2B-10" goals, including both its revenue and Adjusted EBITDA targets. The company's 2B-10 objectives mean $2B in revenue with a 10% adjusted EBITDA margin. Beazer Homes also expects to retire its 2019 senior notes, which have a remaining principal balance of $96.4 million.

The company also said it was buying Atlanta-based private homebuilder Venture Homes, for about $65 million in cash. Over the last 12 months, Venture Homes generated $69.9 million of homebuilding revenue from 277 closings with an average selling price of $252.2 thousand.

The Venture assets to be acquired by Beazer include more than 1,000 lots located in 9 active communities and 18 future communities principally serving first time and first move-up homebuyers. The transaction also includes substantial construction work in process as well as 51 homes in backlog.

Including contributions from the Venture acquisition, Beazer Homes sees EPS exceeding $2.5 and double-digit growth in adjusted EBITDA for fiscal 2019, in addition to further debt reductions.

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