Decision point systems DPSI reported second-quarter 2022 earnings of 10 cents per share, up 233.3% year-over-year and beating Zacks’ consensus estimate of 3 cents per share.
Revenue increased 81.3% year over year to $27.5 million and exceeded the consensus mark by 28%. Revenue was driven by broad-based strength across multiple verticals. Additionally, the company’s strong relationships with OEMs and channel partners have enabled it to partially ship orders worth $22 million from two retail customers and build inventory for offerings that will ship over the next few quarters, DecisionPoint added.
Synergies from acquisitions are likely to boost DecisionPoint’s performance. The company completed two buyouts — Advanced Mobile Group and Boston Technologies — in the prior quarter. These acquisitions strengthen the company’s position in the lucrative transportation and direct-to-store delivery sectors.
DecisionPoint Systems Inc. Price, Consensus and EPS Surprise
DecisionPoint Systems Inc. price-consensus-eps-surprise-chart | Quote from DecisionPoint Systems Inc.
Product revenue (82.5% of total revenue) jumped 96% year over year to $22.7 million.
Services revenue (17.5%) increased 33.9% year over year to $4.8 million.
The company’s backlog as of June 30, 2022 was $28 million.
DecisionPoint’s second quarter gross profit increased 81% year over year to $6.3 million.
Total operating expenses increased 28.4% year over year to $4.3 million.
Adjusted EBITDA increased to $2.7 million from $0.6 million a year ago.
Operating profit was nearly $2 million compared to operating profit of $0.1 million in the prior year quarter.
Balance sheet and cash flow
As of June 30, 2022, DecisionPoint had cash and cash equivalents of $8.5 million, compared to $9.3 million as of March 31, 2022. The company’s long-term debt was $0.10 million. dollars, compared to $0.15 million as of March 31, 2022.
Cash flow from operations was $12.9 million compared to $2.5 million in the prior year quarter.
For 2022, the company expects revenue to be between $87 million and $90 million, compared to earlier guidance of $79 million and $82 million, suggesting 33-36% year-on-year growth. on the other. Services revenue is expected to be $20 million compared to the previous forecast of $19 million. Adjusted EBITDA is expected to be between $4.6 and $5.0 million compared to the prior guidance of $3.5 and $3.9 million.
Actions to consider
DecisionPoint carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader tech space are Cadence Design Systems CDNS, badger meter BMI and Arista Networks A NET. Cadence Design Systems, Badger Meter, and Arista Networks (ANET) each sport a Zacks #1 ranking (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.
The Zacks consensus estimate for CDNS 2022 earnings is pegged at $4.11 per share, up 5.7% over the past 60 days. The long-term earnings growth rate is expected to be 17.7%.
Cadence’s earnings have exceeded the Zacks consensus estimate for the past four quarters, averaging 9.8%. Shares of CDNS have jumped 22.1% over the past year.
The Zacks consensus estimate for BMI’s earnings in 2022 is pegged at $2.30 per share, up 7% over the past 60 days.
Earnings at Badger Meter have exceeded the Zacks consensus estimate in three of the previous four quarters, averaging 12.6%. BMI shares have lost 5.5% of their value over the past year.
Zacks’ consensus estimate for Arista Network’s 2022 earnings is pegged at $3.99 per share, up 8.4% over the past 60 days. The long-term earnings growth rate is expected to be 18.6%.
Arista Network’s earnings have exceeded Zacks’ consensus estimate for the past four quarters, averaging 10.1%. ANET shares have risen 38.4% over the past year.
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