Tessco Technologies (TESS) Misses Q1 EPS by 5c

Tessco Technologies (NASDAQ: TESS) reported Q1 EPS of ($0.25), $0.05 worse than the analyst estimate of ($0.20). Revenue for the quarter came in at $105 million versus the consensus estimate of $105.08 million.

“We believe this quarter’s results are signs of the post-pandemic recovery and evidence that we are executing well on our turnaround plan, with a 9% year-over-year increase in revenues and a 37% increase in bookings,” said Sandip Mukerjee, TESSCO’s President and Chief Executive Officer. “While industry-wide supply-chain challenges delayed the conversion of bookings to shipments in the first quarter, we are confident that we will be able to ship the vast majority of these open orders later this fiscal year.

“For the remainder of this fiscal year, we expect stronger market demand and the continued execution of our turnaround strategy to lead to significant year-over-year growth in revenues for both our Carrier and Commercial markets,” added Mukerjee. “At the same time, we will be vigilant in controlling costs and expect significant improvement in our overall profitability this fiscal year compared with fiscal 2021, including positive adjusted EBITDA.

“We continue to focus on driving growth and efficiency in our core distribution business, developing our Ventev business into a leading innovator of products to help customers resolve infrastructure construction challenges, and developing proprietary services to support the products our customers deploy in their networks. While the last 18 months have presented considerable challenges, I am more confident than ever in our strategy and our ability to achieve our financial operating plan.”

First Quarter Financial Results

As a result of the sale of the Company’s retail inventory and other related assets to Voice Comm, LLC during the third quarter of fiscal year 2021, and the corresponding retail business exit, the Company now presents earnings both from continuing and discontinued operations. The following financial results relate only to continuing operations.

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

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