A2Z Cust2Mate Solutions (NASDAQ:AZ) Announces Earnings Results, Beats Expectations By $0.02 EPS

A2Z Cust2Mate Solutions (NASDAQ:AZ) issued its earnings results on Wednesday. The company reported ($0.16) EPS for the quarter, topping analysts’ consensus estimates of ($0.18) by $0.02, Zacks reports. The firm had revenue of $5.90 million for the quarter, compared to the consensus estimate of $3.54 million. A2Z Cust2Mate Solutions had a negative return on equity of 62.55% and a negative net margin of 415.62%.

Here are the key takeaways from A2Z Cust2Mate Solutions’ conference call:

• Second-quarter revenue rose 78% sequentially to $5.9 million, while Smart Cart deliveries nearly doubled to 950 units; gross margin also improved sharply to 42.6% from 4.2% in the prior quarter.
• Management reiterated its target of delivering 10,000 Smart Carts by year-end 2026 and at least 19,000 by the end of 2027, with deliveries expected to increase sequentially in the second half despite seasonal softness in September.
• Super Sapir expanded its commitment by 4,000 carts to 7,000 total, while A2Z expects deliveries to Toys R Us, Red Pirate, and at least two retailers outside Israel within the next six months.
• The new China manufacturing facility is increasing capacity, shortening lead times, and reducing production costs; A2Z also secured a $30 million Bank Leumi credit line and expects an organizational realignment to generate approximately $7 million in annual savings.
• Despite operational improvements, A2Z reported a $7.6 million operating loss and a $7.3 million net loss for the quarter, while management expects retail media revenue to ramp gradually and remain smaller than Smart Cart revenue in the near term.

A2Z Cust2Mate Solutions Stock Up 17.9%

AZ stock traded up $1.16 during mid-day trading on Thursday, hitting $7.63. 1,808,703 shares of the company were exchanged, compared to its average volume of 415,325. The firm has a market capitalization of $339.71 million, a P/E ratio of -7.46 and a beta of 1.16. The business has a fifty day simple moving average of $5.85 and a 200-day simple moving average of $6.34. A2Z Cust2Mate Solutions has a 12-month low of $4.97 and a 12-month high of $9.96.

Institutional Trading of A2Z Cust2Mate Solutions

Institutional investors have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. acquired a new position in A2Z Cust2Mate Solutions during the 2nd quarter worth about $146,000. NewEdge Advisors LLC purchased a new position in shares of A2Z Cust2Mate Solutions in the second quarter valued at approximately $148,000. Geode Capital Management LLC grew its holdings in shares of A2Z Cust2Mate Solutions by 113.3% in the second quarter. Geode Capital Management LLC now owns 21,354 shares of the company’s stock valued at $226,000 after purchasing an additional 11,342 shares in the last quarter. Squarepoint Ops LLC purchased a new stake in A2Z Cust2Mate Solutions during the 4th quarter worth approximately $178,000. Finally, Kestra Advisory Services LLC purchased a new stake in A2Z Cust2Mate Solutions during the 4th quarter worth approximately $206,000. Institutional investors and hedge funds own 12.64% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. Wall Street Zen raised shares of A2Z Cust2Mate Solutions from a “sell” rating to a “hold” rating in a report on Saturday, April 18th. Weiss Ratings reissued a “sell (d-)” rating on shares of A2Z Cust2Mate Solutions in a research note on Friday, July 17th. Finally, Zacks Research upgraded A2Z Cust2Mate Solutions from a “strong sell” rating to a “hold” rating in a report on Tuesday. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, A2Z Cust2Mate Solutions presently has an average rating of “Hold” and an average target price of $15.00.

A2Z Cust2Mate Solutions declared that its board has approved a share buyback plan on Monday, July 6th that authorizes the company to repurchase $20.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 7.2% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

About A2Z Cust2Mate Solutions

A2Z Smart Technologies Corp., a technology company, focuses on the development and commercialization of retail smart cart solutions for grocery stores and supermarkets in Israel and internationally. The company operates through three segments: Precision Metal Parts, Advanced Engineering, and Smart Carts. It offers Cust2Mate system, which incorporates a smart cart that automatically calculates the value of the customers purchases in their smart cart without having to unload and reload their purchases at a customer checkout point.