Overview
AIoT platform's Q3 revenue rose 7% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 slightly beat analyst estimates
Company secured major South Africa public sector contract for AI video services
Outlook
Powerfleet tightens full-year revenue guidance to $440 mln-$445 mln
Company expects adjusted EBITDA growth of 45% yr-over-yr
Powerfleet anticipates adjusted net debt to EBITDA ratio to improve to 2.4x
Result Drivers
SERVICES REVENUE - Services revenue increased 11% year-over-year, driven by strong recurring revenue growth
SOUTH AFRICA CONTRACT - Major contract in South Africa for AI video services expected to drive future demand
COST SYNERGIES - Improved operating income and adjusted EBITDA margins due to cost synergies and operational efficiency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $113.50 mln | $111.66 mln (6 Analysts) |
Q3 EPS | -$0.03 | ||
Q3 Net Income | -$3.40 mln | ||
Q3 Adjusted EBITDA | Slight Beat* | $25.70 mln | $25.67 mln (6 Analysts) |
Q3 Gross Profit | $62.70 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for PowerFleet Inc is $9.50, about 96.3% above its February 6 closing price of $4.84
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 29 three months ago
Press Release: ID:nPn24jqDda
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)