A2Z Cust2Mate Solutions (NASDAQ:AZ) Posts Quarterly Earnings Results, Misses Estimates By $0.01 EPS

A2Z Cust2Mate Solutions (NASDAQ:AZ) issued its earnings results on Wednesday. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.14) by ($0.01), Zacks reports. A2Z Cust2Mate Solutions had a negative return on equity of 57.70% and a negative net margin of 168.05%. The company had revenue of $10.93 million during the quarter, compared to analysts’ expectations of $7.87 million.

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

• Smart Cart deliveries more than doubled sequentially to 2,000, lifting third-quarter revenue to $10.9 million from $5.9 million. The company reiterated its year-end target of 10,000 cumulative deliveries and said its existing backlog supports 19,000 by the end of 2027.
• A2Z expects the Hedia acquisition to add approximately $5 million in fourth-quarter revenue and be immediately accretive. Hedia brings about $20 million in annual revenue, established advertiser relationships, and capabilities to expand the company’s in-store retail media offering.
• Two customers expanded their cart commitments after initial deployments, and the company said it expects deployments with two international retailers in the first quarter of 2027. Management also cited potential opportunity from a competitor’s exit, though it provided no additional contract or deployment figures.
• Gross margin fell to 33.4% from 42.6% sequentially, reflecting lower-margin, earlier-generation carts delivered to one customer. Management expects to clear the remaining legacy inventory by year-end, but the fourth-quarter delivery target requires a substantial step-up to 4,650 carts.
• The operating loss narrowed to $6.8 million from $7.6 million, and management expects organizational changes to deliver quarterly savings of about $1.75 million starting in the fourth quarter. The company ended the quarter with $30 million in treasury, but that balance preceded the Hedia acquisition and related financing.

A2Z Cust2Mate Solutions Stock Performance

AZ traded down $0.42 on Friday, hitting $5.72. The company’s stock had a trading volume of 33,916 shares, compared to its average volume of 440,630. A2Z Cust2Mate Solutions has a 12 month low of $4.97 and a 12 month high of $8.73. The company’s 50 day simple moving average is $5.91 and its 200-day simple moving average is $6.27. The company has a quick ratio of 6.56, a current ratio of 7.52 and a debt-to-equity ratio of 0.02. The firm has a market cap of $254.95 million, a P/E ratio of -6.33 and a beta of 1.16.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Zacks Research upgraded shares of A2Z Cust2Mate Solutions from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 11th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of A2Z Cust2Mate Solutions in a research report on Thursday, October 15th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $15.00.

A2Z Cust2Mate Solutions Company Profile

A2Z Cust2Mate Solutions develops smart shopping carts and related technology for grocery retailers. Its Cust2Mate platform combines an in-cart touchscreen with tools designed to help shoppers browse products, access promotions and complete purchases while shopping. The company’s solutions are intended to support retailers with checkout processes and in-store customer engagement. Cust2Mate carts can also provide retailers with a platform for displaying product information and promotional content.