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VIEW's Earnings Miss Estimates in Q3, 2023 View Lowered

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View, Inc. reported third-quarter 2023 adjusted loss per share (EPS) of $53.06, which missed the Zacks Consensus Estimate of a loss of $9.43 per share. The company posted a loss of $22.93 in the year-ago quarter.

View, Inc. Price, Consensus and EPS Surprise

View, Inc. Price, Consensus and EPS Surprise

View, Inc. price-consensus-eps-surprise-chart | View, Inc. Quote

Operational Update

Revenues were $38 million for the quarter under review, up 61% from the year-ago quarter’s $24 million. The top line, however, missed the Zacks Consensus Estimate of $43 million.

The cost of sales was down 13.3% year over year to $43 million. The gross loss came in at $4 million compared with the gross loss of $25 million reported in 2022’s third quarter. The gross margin was a negative 11.4% for the quarter under review compared with a negative 106.7% in the prior-year quarter.

Selling, general and administrative expenses were down 38% year over year to $26 million. Research and Development expenses were down 43% year over year to $9 million. The decrease was mainly driven by the company’s cost savings actions.

Adjusted EBITDA came in at $23 million in the quarter compared with an adjusted loss of $53 million reported in the prior-year quarter.

Financial Update

Net cash used in operating activities in the quarter was $32 million compared to $51 million in the third quarter of 2022. The company had cash and cash equivalents of $51 million as of Sep 30, 2023, compared to $96 million reported at the end of Dec 31, 2023.

Outlook

Reflecting lower-than-expected third-quarter results, the company has lowered its revenue guidance for 2023. It expects revenues to be in the range of $110-$120 million, updated from a previously announced $125-$150 million. The updated guidance indicates 13% year-over-year growth at the midpoint.

Price Performance

Shares of the company have lost 96.8% in a year’s time compared with the industry’s 19.3% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank and Stocks to Consider

View currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Brady (BRC - Free Report) , Applied Industrial Technologies (AIT - Free Report) and Bodycote (BYPLF - Free Report) . BRC currently sports a Zacks Rank #1 (Strong Buy) and AIT and BYPLF each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Brady’s 2023 earnings per share is pegged at $3.62. The consensus estimate for 2023 earnings has moved 13% north in the past 60 days and suggests year-over-year growth of 9.9%. The company has a trailing four-quarter average earnings surprise of 7.2%. Shares of BRC rallied 17.7% in a year.

Applied Industrial has an average trailing four-quarter earnings surprise of 15%. The Zacks Consensus Estimate for AIT’s 2023 earnings is pinned at $9.13 per share, which indicates year-over-year growth of 2%. Estimates have moved up 2% in the past 60 days. The company’s shares gained 27% in a year’s time.

The Zacks Consensus Estimate for Bodycote’s 2023 earnings is pegged at 60 cents per share. The consensus estimate for 2023 earnings has remained unchanged in the past 60 days. BYPLF shares gained 47.3% in a year’s time.


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