Synchronoss Technologies Shares Lag Despite Strong Guidance

Synchronoss Technologies (SNCR) struggles with a 4.7% YTD drop, yet raises 2024 guidance and reports a 5.1% growth in cloud subscribers, hinting at future potential.

Date: 02-03-2025

AI Rating: 5

Earnings Per Share (EPS)
The Zacks Consensus Estimate for 2024 earnings is pegged at 73 per share, which has remained unchanged over the past 30 days. In 2025, the consensus for EPS is set at $1.46, also unchanged, indicating a stable outlook on earnings.

Revenue Growth
Synchronoss reported an 8% year-over-year growth in total revenues, boosted by a 5.1% increase in cloud subscribers. Their revenue guidance is now set between $172 million and $175 million, an increase from the previous estimate of $170 million to $175 million. However, the Zacks Consensus for 2024 revenues suggests a 19.32% decline over the previous year, presenting a mixed view on revenue growth.

Net Income
There is no specific information provided regarding the net income in this report, meaning the position on net income is unclear.

Profit Margins
Adjusted gross margin expectations have been raised to between 77% and 78%, which indicates an improvement in profit margins compared to the prior guidance range of 73% to 77%.

Free Cash Flow (FCF)
The report does not provide information regarding free cash flow, so we cannot analyze that aspect.

Return on Equity (ROE)
No information about the return on equity has been mentioned, thus we cannot address this area.

Based on the analysis of the company’s performance, a bearish trend is indicated as Synchronoss shares are trading below their moving averages, alongside a year-to-date decline of 4.7% against the backdrop of a sector decline of only 0.9%. The company’s reliance on major clients such as Verizon and AT&T exposes it to specific risks, while favorable partnerships and revenue guidance suggest potential for recovery. The mixed signals from revenue growth estimates could be a cause for concern for investors considering the stock.

Stocks: SNCR MSFT DBX T