Peraso (NASDAQ:PRSO) Issues Quarterly Earnings Results, Meets Expectations

Peraso (NASDAQ:PRSO) announced its earnings results on Thursday. The company reported ($0.16) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.16), FiscalAI reports. Peraso had a negative net margin of 85.63% and a negative return on equity of 223.38%. The company had revenue of $0.28 million during the quarter, compared to analyst estimates of $1.10 million.

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

• Revenue fell sharply: Third-quarter revenue was $0.3 million, down from $1.3 million in the prior quarter and $3.2 million a year earlier. The $2.7 million non-GAAP net loss widened year over year; gross margin rose to 78.5%, helped partly by a one-time $55,000 inventory-accrual reversal.
• Fixed wireless demand may be recovering: Peraso received a production order exceeding $2 million in October, its largest fixed wireless order in six quarters, with shipments expected through mid-2027. Management expects sequential revenue growth in the fourth quarter, though it said market conditions may take several quarters to normalize.
• A $10 million strategic investment strengthened the balance sheet: NantCapital’s investment was completed in late October and is intended to support working capital and product development, including defense and drone communications. Peraso said the funding provided added runway and concluded its review of strategic alternatives; shares outstanding increased to approximately 20.9 million.
• Defense and autonomous robotics are developing opportunities, not yet reported revenue drivers: Peraso highlighted interest in UAV and ground-based defense communications, introduced a jam-resistant communications module, and demonstrated a robot-to-edge-server link. Management described multiple engagements and late-stage evaluations, but did not disclose design wins or production orders in these markets.

Peraso Stock Performance

Shares of NASDAQ PRSO traded down $0.02 during trading on Thursday, hitting $0.37. The company had a trading volume of 244,767 shares, compared to its average volume of 3,957,842. The stock has a 50 day simple moving average of $0.45 and a 200 day simple moving average of $0.80. Peraso has a 12 month low of $0.32 and a 12 month high of $2.16. The firm has a market capitalization of $5.53 million, a P/E ratio of -0.54 and a beta of 0.84.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Ladenburg Thalmann & Co. Inc. lifted their price target on shares of Peraso from $2.75 to $3.25 and gave the stock a “buy” rating in a research note on Monday, August 17th. Weiss Ratings downgraded shares of Peraso from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, October 30th. Finally, Wall Street Zen upgraded Peraso from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 15th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Peraso has a consensus rating of “Hold” and an average price target of $3.08.

Peraso Company Profile

Peraso Inc. is a fabless semiconductor company focused on millimeter-wave (mmWave) wireless technology. The company develops high-performance, low-power integrated circuits, radio-frequency components and antenna solutions for high-speed wireless communications. Its product portfolio includes 60 GHz WiGig chipsets and modules, as well as mmWave products designed for 5G fixed wireless access, wireless infrastructure, point-to-point and point-to-multipoint connectivity, and other broadband applications.