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DecisionPoint (DPSI) Q2 Earnings & Revenues Top Estimates

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DecisionPoint Systems reported second-quarter 2023 earnings of 13 cents per share compared with 11 cents a year ago. The Zacks Consensus Estimate was pegged at 4 cents per share.

Revenues increased 12.4% year over year to $30.9 million and topped the consensus mark by 4.8%.

The top line was driven by contributions from acquisitions and cross-selling opportunities. The company’s acquisition of Macro Integration Services (MIS) shifted product mix toward higher gross margin software and services, and expanded presence in the retail vertical, particularly grocery and food service.

DecisionPoint Systems Inc. Price, Consensus and EPS Surprise

DecisionPoint Systems Inc. Price, Consensus and EPS Surprise

DecisionPoint Systems Inc. price-consensus-eps-surprise-chart | DecisionPoint Systems Inc. Quote

Quarter Details

Hardware revenues (64% of total revenues) declined 13% year over year to $19.7 million.

Software and Services (36%) climbed to $11.2 million from $4.8 million reported in the year-earlier quarter.

Gross profit jumped 22.5% year over year to $7.7 million.

Adjusted EBITDA totaled $2.5 million, down 9.4% year over year.

Operating income was nearly $1.3 million compared with $2 million reported in the prior-year quarter.

Balance Sheet and Cash Flow

As of Jun 30, DecisionPoint had cash and cash equivalents of $7.2 million compared with $18 million as of Mar 31, 2023. Long-term debt was $6.9 million compared with $11.1 million as of Mar 31, 2023. The decrease in cash and higher debt balance was mainly due the company’s drawing down on credit facilities for acquisition of MIS.

For the six months ended Jun 30, 2023, cash generated from operations was $5 million compared with $12.9 million in the previous-year quarter.

Guidance

For third-quarter 2023, the company expects revenues to be between $27 million and $29 million. Adjusted EBITDA is projected in the range of $2-$2.3 million.

Zacks Rank & Key Picks

DecisionPoint carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Salesforce (CRM - Free Report) and Pegasystems (PEGA - Free Report) . All stocks carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has gained 6.3% in the past 60 days to $2.86 per share. BMI’s earnings beat estimates in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 64% in the past year.

The Zacks Consensus Estimate for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.

CRM’s earnings surpassed estimates in the last four quarters, the average beat being 15.5%. Shares of CRM have grown 11.1% in the past year.

The Zacks Consensus Estimate for Pegasystems’ 2023 earnings has improved 6.6% in the past 60 days to $1.46 per share. PEGA’s earnings has an average surprise of 166.2% in the trailing four quarters. Shares of PEGA have jumped 16.4% in the past year.


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