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

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

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 Price Performance

Shares of AZ traded up $1.12 during trading hours on Thursday, reaching $7.59. 1,874,857 shares of the company’s stock traded hands, compared to its average volume of 415,921. The firm has a market capitalization of $338.06 million, a price-to-earnings ratio of -7.47 and a beta of 1.16. The business’s fifty day simple moving average is $5.85 and its two-hundred day simple moving average is $6.34. A2Z Cust2Mate Solutions has a twelve month low of $4.97 and a twelve month high of $9.96.

Wall Street Analyst Weigh In

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

A2Z Cust2Mate Solutions declared that its Board of Directors has initiated a share repurchase program on Monday, July 6th that allows the company to repurchase $20.00 million in shares. This repurchase authorization allows the company to repurchase up to 7.2% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional Trading of A2Z Cust2Mate Solutions

Several institutional investors have recently modified their holdings of AZ. Captrust Financial Advisors raised its position in A2Z Cust2Mate Solutions by 48.6% in the fourth quarter. Captrust Financial Advisors now owns 87,699 shares of the company’s stock worth $571,000 after acquiring an additional 28,699 shares in the last quarter. Goldman Sachs Group Inc. bought a new position in shares of A2Z Cust2Mate Solutions during the 4th quarter valued at about $819,000. Mercer Global Advisors Inc. ADV grew its stake in shares of A2Z Cust2Mate Solutions by 9.3% in the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 60,638 shares of the company’s stock worth $484,000 after purchasing an additional 5,148 shares during the last quarter. Davidson Kempner Capital Management LP acquired a new position in shares of A2Z Cust2Mate Solutions in the 3rd quarter worth approximately $1,398,000. Finally, Private Advisor Group LLC bought a new stake in shares of A2Z Cust2Mate Solutions in the 3rd quarter worth approximately $1,598,000. Institutional investors and hedge funds own 12.64% of the company’s stock.

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.