Sangoma Technologies Reports Quarterly Loss Miss, Revenue Surges

In a recent report, Sangoma Technologies Corporation revealed a quarterly loss of $0.05 per share, which fell short of expectations, amid fluctuating revenues of $60.93 million. While its year-to-date performance is commendable, future stock projections hinge on upcoming earnings insights.

Date: 19-09-2024

AI Rating: 5

Sangoma Technologies Corporation (SANG) reported a quarterly loss of $0.05 per share, which was worse than analysts' expectations for a loss of $0.04, indicating an earnings surprise of -25%. This suggests a negative sentiment around the company's current performance, especially since the previous year it posted a similar loss of $0.04 per share.

In terms of revenue, the company generated $60.93 million for the quarter, slightly surpassing the consensus estimate by 0.07%. However, this represents a decline from $63.68 million in revenues from the prior year, which could concern investors about the company's growth trajectory. Over the last four quarters, the company has only met or surpassed consensus revenue estimates once.

The recent quarterly performance has resulted in a Zacks Rank #2 (Buy), which indicates that despite recent challenges, analysts still maintain a positive outlook. The stock's performance has notably outstripped the S&P 500, with a gain of approximately 87.8% since the year's start against an 18.1% increase in the overall market.

Additionally, the consensus EPS estimate for the upcoming quarter stands at -$0.04 with projected revenues of $61.01 million, and for the fiscal year, estimates are at -$0.10 on revenues of $245.65 million. These figures reflect a cautious outlook shared by analysts but are considered favorable in terms of optimistic revisions.

Other companies in the same industry, such as Karooooo Ltd. (KARO), have maintained a more positive earnings outlook, projecting an EPS of $0.38 which is a 26.7% increase year-over-year. The overall health of the Internet - Software industry, currently in the top 30% of the Zacks Industry Rank, also plays a significant role in shaping expectations for Sangoma's performance moving forward.

Stocks: SANG KARO