Announcement • Jul 18
TESSCO Technologies Incorporated to Delist from Nasdaq Stock Exchange TESSCO Technologies Incorporated announced the closing of its previously announced merger with entities affiliated with Lee Equity Partners and Twin Point Capital, which also own Alliance Corporation (“Alliance”), a value-added distributor of equipment for the wireless industry, and GetWireless, LLC (“GetWireless”), a value-added distributor of cellular solutions that connect the Internet of Things (IoT). Tessco shareholders approved the transaction at a special meeting of shareholders held on July 13, 2023. Under the terms of the merger, each share of Company common stock outstanding prior to merger has been converted into the right to receive $9.00 in cash, reflecting a Company enterprise value of approximately $160 million. As a result of the merger, Tessco common stock will cease trading on, and will be delisted from, the Nasdaq stock exchange. Reported Earnings • May 28
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: US$0.47 loss per share (further deteriorated from US$0.37 loss in FY 2022). Revenue: US$452.1m (up 8.3% from FY 2022). Net loss: US$4.35m (loss widened 31% from FY 2022). Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 21%. Revenue is forecast to grow 8.0% p.a. on average during the next 2 years, compared to a 4.6% growth forecast for the Communications industry in the US. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Apr 28
Insider recently sold US$526k worth of stock On the 25th of April, Robert Barnhill sold around 60k shares on-market at roughly US$8.77 per share. This transaction amounted to 3.8% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$847k more than they bought in the last 12 months. Recent Insider Transactions • Apr 17
Insider recently sold US$321k worth of stock On the 12th of April, Robert Barnhill sold around 40k shares on-market at roughly US$8.02 per share. This transaction amounted to 2.5% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • Feb 08
Third quarter 2023 earnings: EPS exceeds analyst expectations Third quarter 2023 results: EPS: US$0.046 (down from US$0.14 in 3Q 2022). Revenue: US$114.9m (up 12% from 3Q 2022). Net income: US$424.7k (down 65% from 3Q 2022). Profit margin: 0.4% (down from 1.2% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 7.2% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Communications industry in the US. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Feb 08
TESSCO Technologies Incorporated Reaffirms Earnings Guidance for the Full Year Fiscal 2023 TESSCO Technologies Incorporated reaffirmed earnings guidance for the full year fiscal 2023. For the period, the company expects revenue to be in the range of $450.0 million to $475.0 million and net loss to be in the range of $5.0 million to $2.1 million. Board Change • Nov 17
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. President, CEO & Director Sandip Mukerjee is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 28
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: US$0.13 (up from US$0.14 loss in 2Q 2022). Revenue: US$120.5m (up 11% from 2Q 2022). Net income: US$1.17m (up US$2.45m from 2Q 2022). Profit margin: 1.0% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 6.5%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Communications industry in the US. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Reported Earnings • Jul 27
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: US$0.057 loss per share (up from US$0.25 loss in 1Q 2022). Revenue: US$112.2m (up 6.9% from 1Q 2022). Net loss: US$517.4k (loss narrowed 77% from 1Q 2022). Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) also surpassed analyst estimates by 77%. Over the next year, revenue is forecast to grow 7.7%, compared to a 6.9% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Reported Earnings • May 12
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: US$0.37 loss per share (up from US$1.65 loss in FY 2021). Revenue: US$417.5m (up 12% from FY 2021). Net loss: US$3.31m (loss narrowed 77% from FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Over the next year, revenue is forecast to grow 7.8%, compared to a 8.9% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 33% per year, which means it is performing significantly worse than earnings. Board Change • Apr 27
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. No experienced directors. No highly experienced directors. President, CEO & Director Sandip Mukerjee is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Feb 05
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: US$0.14 (up from US$0.66 loss in 3Q 2021). Revenue: US$102.5m (up 3.2% from 3Q 2021). Net income: US$1.22m (up US$6.92m from 3Q 2021). Profit margin: 1.2% (up from net loss in 3Q 2021). The move to profitability was primarily driven by lower expenses. Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is forecast to grow 10%, compared to a 8.9% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 28% per year, which means it has not declined as severely as earnings. Executive Departure • Aug 26
Chairman of the Board Paul Gaffney has left the company On the 19th of August, Paul Gaffney's tenure as Chairman of the Board ended after 3.2 years in the role. As of June 2021, Paul still personally held 24.59k shares (US$151k worth at the time). A total of 8 executives have left over the last 12 months. The current median tenure of the management team is 6.13 years. Reported Earnings • Jul 30
First quarter 2022 earnings released: US$0.25 loss per share (vs US$0.54 loss in 1Q 2021) The company reported a decent first quarter result with reduced losses and improved control over expenses, although revenues were weaker. First quarter 2022 results: Revenue: US$105.0m (down 12% from 1Q 2021). Net loss: US$2.21m (loss narrowed 52% from 1Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 51 percentage points per year, which is a significant difference in performance. Reported Earnings • Jun 13
Full year 2021 earnings released: US$1.65 loss per share (vs US$1.83 loss in FY 2020) The company reported a mediocre full year result with weaker revenues, although its control over expenses remained stable and losses reduced. Full year 2021 results: Revenue: US$373.3m (down 8.7% from FY 2020). Net loss: US$14.4m (loss narrowed 7.9% from FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 75 percentage points per year, which is a significant difference in performance. Executive Departure • Jun 05
Senior Vice President of Commercial Sales Eddie Franklin has left the company On the 27th of May, Eddie Franklin's tenure as Senior Vice President of Commercial Sales ended after 1.2 years in the role. We don't have any record of a personal shareholding under Eddie's name. A total of 8 executives have left over the last 12 months. The current median tenure of the management team is 5.96 years. Reported Earnings • May 13
Full year 2021 earnings released: US$1.75 loss per share (vs US$2.53 loss in FY 2020) The company reported a soft full year result with weaker revenues and control over costs, although losses reduced. Full year 2021 results: Revenue: US$373.3m (down 31% from FY 2020). Net loss: US$15.2m (loss narrowed 29% from FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 80 percentage points per year, which is a significant difference in performance. Executive Departure • Apr 06
Senior VP & Chief Information Officer has left the company On the 2nd of April, Joseph Cawley's tenure in the role of Senior VP & Chief Information Officer ended. As of December 2020, Joseph personally held only 7.01k shares (US$44k worth at the time). A total of 7 executives have left over the last 12 months. Is New 90 Day High Low • Feb 18
New 90-day high: US$8.47 The company is up 46% from its price of US$5.81 on 19 November 2020. The American market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Communications industry, which is up 17% over the same period. Reported Earnings • Feb 03
Third quarter 2021 earnings released: US$0.66 loss per share (vs US$0.59 loss in 3Q 2020) The company reported a poor third quarter result with increased losses, weaker revenues and weaker control over costs. Third quarter 2021 results: Revenue: US$99.2m (down 29% from 3Q 2020). Net loss: US$5.70m (loss widened 14% from 3Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 87 percentage points per year, which is a significant difference in performance. Analyst Estimate Surprise Post Earnings • Feb 03
Revenue and earnings miss expectations Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) also missed analyst estimates by 66%. Over the next year, revenue is expected to shrink by 19% compared to a 4.0% growth forecast for the Communications industry in the US. Is New 90 Day High Low • Feb 02
New 90-day high: US$8.30 The company is up 47% from its price of US$5.65 on 03 November 2020. The American market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Communications industry, which is up 27% over the same period. Is New 90 Day High Low • Dec 29
New 90-day high: US$6.85 The company is up 20% from its price of US$5.69 on 29 September 2020. The American market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Communications industry, which is up 17% over the same period. Reported Earnings • Nov 11
Second quarter 2021 earnings released: US$0.031 loss per share The company reported a poor second quarter result with weaker earnings, revenues and control over expenses. Second quarter 2021 results: Revenue: US$119.7m (down 16% from 2Q 2020). Net loss: US$266.9k (down US$288.9k from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 114% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Nov 11
Revenue and earnings miss expectations Revenue missed analyst estimates by 0.5%. Earnings per share (EPS) also missed analyst estimates by 91%. Over the next year, revenue is forecast to decline by -16% while the growth in Communications industry in the US is expected to stay flat. Analyst Estimate Surprise Post Earnings • Oct 30
Second-quarter earnings released: Earnings beat expectations, revenue disappoints Second-quarter revenue missed analyst estimates by 0.5% at US$119.7m. Earnings per share (EPS) exceeded analyst estimates by 91% at -US$0.03. Revenue is forecast to grow 1.0% over the next year, while the growth in Communications industry in the US is expected to stay flat. Reported Earnings • Oct 30
First half earnings released Over the last 12 months the company has reported total losses of US$24.0m, with earnings decreasing by US$24.7m from the prior year. Total revenue was US$507.2m over the last 12 months, down 11% from the prior year.