Shares of Control4 (NASDAQ:CTRL), a leading provider of automation and networking systems for homes and businesses that boasts products to personalize control of music, video, lighting, comfort, security, and communications as an entire premium smart home system, are soaring 20% higher on Friday as of 1:40 p.m. EST.
The surge in price was fueled by the company's better-than-expected fourth-quarter results. Revenue for the fourth quarter checked in at $57.4 million, a 34% increase year over year and higher than analysts' estimates of $54.5 million. Adjusted earnings per share for the fourth quarter reached $7.8 million, or $0.31 per share -- well ahead of the prior year's $0.07 per share result and above analysts' estimates of $0.24 per share.
Mark Novakovich, chief financial officer of Control4, had this to say in a press release:
We delivered record revenue for both the quarter and full year. Fueled by consistently improving cross-company performance, our full-year 2016 non-GAAP net income and non-GAAP earnings per share grew over full year 2015 by 150% and 158% respectively, reflecting the operating leverage improvements we made throughout the year and delivering on our commitment to achieve sustainable, profitable growth to enhance long-term shareholder value.
For many investors, the line between company products in the smart home is a blurry one, so here's a great graphic that shows how Control4 fits into the high-end segment.
The company boasts a sizable footprint in 91 countries and has a network of nearly 5,000 retailers and distributors. Going forward, management estimated toward the end of 2016 that it had penetrated roughly 1.4% of the roughly 14.1 million U.S. households with annual income topping $150,000 -- if it can continue to increase its market penetration, strong quarters like this one will follow.