Tessco Technologies, a publicly-traded company on NASDAQ (TESS), recently released its financial results for the fourth quarter of fiscal year 2023 on May 26th. Unfortunately, the company reported a net loss of $5.6 million, which is a significant increase compared to the same period last year when they had a net loss of $1.0 million. Additionally, the adjusted EBITDA loss for Q4 fiscal 2023 was $1.9 million, which is a significant decrease compared to the adjusted EBITDA of $0.7 million for the same period last year.
Despite these losses, Tessco Technologies managed to report quarterly sales of $104.20 million, which is a slight increase of 2.57% over sales of $101.59 million for the same period last year. However, this missed the analyst consensus estimate of $116.16 million by 10.30%. Moreover, the EPS for Q4 fiscal 2023 was $(0.61), which missed the analyst consensus estimate of $(0.50) by 22%. This is a significant decrease of 408.33% over losses of $(0.12) per share from the same period last year.
Overall, Tessco Technologies’ financial results for Q4 fiscal 2023 were disappointing, but the company remains hopeful for the future.
TESS Stock Opens Slightly Lower with Potential Future Profitability: Market Cap, Earnings and Revenue Growth Analysis
On May 26, 2023, TESS stock opened at 8.83, a slight decrease from the previous close of 8.84. The day’s range was between 8.82 and 8.84, with a volume of 3,900. The average volume for the past three months was 39,861, indicating lower-than-average trading activity for the day. TESS has a market cap of $80.8M, which is relatively small compared to other companies in the Electronic Technology sector. The company’s earnings growth for the past year was 69.91%, but this year’s earnings growth has decreased by 5.41%. However, TESS is expected to have a 15.00% earnings growth in the next five years, indicating potential for future profitability. Revenue growth for the past year was 11.84%, indicating that the company is growing steadily.
TESSCO Technologies Incs Q2 Earnings Fall Short of Analyst Expectations, but Long-Term Growth Potential Remains
On May 26, 2023, TESSCO Technologies Inc reported its current quarter earnings per share of -$0.50 and sales of $116.2M. The company’s stock performance on that day was highly anticipated, especially with the median target price forecasted by the one analyst at $20.00, which represents a +126.24% increase from the last price of $8.84.
Unfortunately, TESSCO’s stock performance on May 26, 2023, did not meet the high expectations set by the analyst. The stock opened at $9.00 and closed at $9.05, representing a meager increase of 2.25%. The stock’s performance was not entirely surprising, given the current consensus among the one polled investment analyst to hold stock in TESSCO Technologies Inc.
It is worth noting that the stock’s performance on May 26, 2023, was not indicative of the company’s long-term potential. The analyst’s median target price of $20.00 suggests that TESSCO Technologies Inc has significant growth potential. The fact that the analyst’s median target price represents a +126.24% increase from the last price of $8.84 suggests that TESSCO Technologies Inc has a lot of room for growth. Investors who are willing to hold onto the stock for the long-term may see significant returns. However, it is important to note that investing in any stock comes with risks, and investors should always do their due diligence before making any investment decisions.
In conclusion, TESSCO Technologies Inc’s stock performance on May 26, 2023, did not meet the high expectations set by the analyst’s median target price of $20.00. However, the company’s long-term growth potential suggests that investors who are willing to hold onto the stock for the long-term may see significant returns. As with any investment, it is crucial to do proper research and analysis before making any investment decisions.
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