Vuzix (NASDAQ:VUZI) Releases Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Vuzix (NASDAQ:VUZI) issued its earnings results on Thursday. The company reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.02), FiscalAI reports. The company had revenue of $0.71 million during the quarter, compared to analyst estimates of $1.30 million. Vuzix had a negative net margin of 519.11% and a negative return on equity of 125.60%.

Here are the key takeaways from Vuzix’s conference call:

• Q3 revenue and profitability weakened: Revenue fell 33% year over year to $714,000, and net loss widened to $8.4 million. Operating cash use increased to $6.7 million; Vuzix ended the quarter with $9.2 million in cash, no debt, and said it may raise capital as needed.
• Causeway advanced toward customer evaluation: Vuzix shipped samples, signed a co-development letter of intent, and engaged with more than 10 companies in the AI optical-interconnect ecosystem. The company says the next milestones are customer-funded development, qualification, and eventual production, which have not yet been achieved.
• Defense activity is building: Vuzix reported just under $1 million in new OEM orders received to date in Q4 and said a separate multi-million-dollar engineering-services program is in final contract discussions. Shrike display units are also being evaluated by customers.
• OEM programs are progressing, while legacy product sales remain under pressure: A global automotive customer has moved from engineering samples to discussions on production configurations and schedules, and Vuzix is supporting Amazon’s current and next-generation programs. Management said discontinued products and lower M400 sales contributed to the quarter’s revenue decline.

Vuzix Trading Down 9.4%

Shares of Vuzix stock traded down $0.19 on Thursday, hitting $1.84. The stock had a trading volume of 1,228,940 shares, compared to its average volume of 1,293,139. The stock has a market cap of $155.31 million, a price-to-earnings ratio of -4.72 and a beta of 1.83. Vuzix has a 52-week low of $1.79 and a 52-week high of $5.62. The company’s 50 day moving average price is $2.43 and its 200 day moving average price is $2.71.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings lowered shares of Vuzix from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, August 28th. One research analyst has rated the stock with a Sell rating. Based on data from MarketBeat, the company presently has a consensus rating of “Sell”.

Vuzix Company Profile

Vuzix Corporation develops and sells wearable display technology, smart glasses and augmented reality products. Its offerings include smart glasses for hands-free work and remote assistance, as well as optical waveguides, display engines and related components for use in its own products and by other manufacturers. The company’s products are designed for applications across sectors such as manufacturing, logistics, healthcare and field service. Vuzix serves customers internationally through direct sales and distribution partners.