Solana (NASDAQ:HSDT) Issues Earnings Results, Beats Expectations By $1.18 EPS

Solana (NASDAQ:HSDT) announced its quarterly earnings data on Wednesday. The company reported $1.17 EPS for the quarter, beating analysts’ consensus estimates of ($0.01) by $1.18, reports. Solana had a net margin of 2,040.43% and a return on equity of 134.60%. The firm had revenue of $3.36 million during the quarter, compared to the consensus estimate of $2.85 million.

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

• Third-quarter revenue rose to $3.4 million from $2.5 million in the prior quarter, with staking rewards contributing $3.3 million. Pacific Backbone had 1 million SOL in third-party stake at quarter end, growing to approximately 1.5 million by November 3.
• Treasury staking yield averaged 5.9% APY, 100 basis points above the network average. Management said it expects to maintain an outperformance gap, though the size may fluctuate as staking economics and validator performance change.
• The company repurchased 1.4 million shares below net asset value during the quarter, then raised approximately $14.3 million net in an offering priced at a 5% premium to NAV and used the proceeds to buy about 125,000 SOL. Management said both actions were intended to increase SOL per share.
• Reported third-quarter net income was $105.2 million, but it included a $102.7 million unrealized gain on digital assets, largely reflecting SOL’s price recovery; the gain was non-cash. Management said operating costs were at their lowest level yet, while expenses may rise from the current rate as the business grows and third-party stake growth may slow in the fourth quarter.

Solana Price Performance

Shares of HSDT stock traded down $0.14 during midday trading on Friday, reaching $1.75. 217,550 shares of the company traded hands, compared to its average volume of 404,274. The firm’s 50 day simple moving average is $2.36 and its two-hundred day simple moving average is $2.06. Solana has a 1-year low of $1.19 and a 1-year high of $4.93. The firm has a market cap of $105.99 million, a PE ratio of 0.47 and a beta of 1.10.

Analyst Ratings Changes

HSDT has been the subject of a number of analyst reports. Wall Street Zen downgraded Solana from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. B. Riley Financial reduced their price target on Solana from $4.00 to $3.00 and set a “buy” rating for the company in a report on Thursday. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Solana in a research note on Thursday, October 15th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $3.50.

Solana Company Profile

Solana Company (NASDAQ: HSDT) is a publicly traded company focused on a digital-asset treasury strategy centered on SOL, the native token of the Solana blockchain. It is a corporate holder of Solana-related digital assets, rather than the operator of the Solana network. The company was formerly Helius Medical Technologies, a medical technology business that developed the Portable Neuromodulation Stimulator (PoNS), a device designed to support rehabilitation for people with certain neurological conditions.