Tessco Technologies, Inc. (TESS) Misses Q2 EPS by 17c

Tessco Technologies, Inc. (NASDAQ: TESS) reported Q2 EPS of $0.42, $0.17 worse than the analyst estimate of $0.59. Revenue for the quarter came in at $148.5 million versus the consensus estimate of $156.2 million.

“Overall, we are disappointed with our second-quarter revenue and earnings results,” said Robert Barnhill, TESSCO Chairman and CEO. “Revenues for the quarter were up slightly compared with a year ago, but below our expectations primarily due to the pullback in 4G infrastructure builds by cellular carriers, as well as reduced government purchases. Gross margins also were lower than expected, driven by a carrier-related contract sale with particularly low margins, which were not offset by higher-margin 4G infrastructure sales. We are aggressively focused on replacing the reduced carrier and government spend with increased private system and commercial reseller sales, value engineering our business, executing our growth initiatives, and improving profitability.

“We remain very committed to our strategic investment in the crucial talent and technology necessary to capitalize on the immense opportunities created by the convergence of wireless and the Internet, and meeting the challenges created by the evolving needs and expectations of customers.

For earnings history and earnings-related data on Tessco Technologies, Inc. (TESS) click here.

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