Top Q2 earnings and revenue estimates (DPSI).

Decision point systems DPSI reported second-quarter 2023 earnings of 13 cents per share, compared with 11 cents a year ago. The Zacks Consensus Estimate is 4 cents per share.

Revenue increased 12.4% year-over-year to $30.9 million and beat the consensus estimate by 4.8%.

The financial result was influenced by acquisitions and cross-selling opportunities. The company’s acquisition of Macro Integration Services (MIS) shifted its product mix toward higher gross margin software and services and expanded its presence in the retail industry, particularly in the food and beverage industry.

DecisionPoint Systems Inc. Price, consensus and EPS surprise

DecisionPoint Systems Inc. consensus price-eps-surprise chart | DecisionPoint Systems Inc. offer

Quarter details

Hardware revenue (64% of total revenue) declined 13% year-over-year to $19.7 million.

Software and services (36%) increased to $11.2 million from $4.8 million reported in the previous quarter.

Gross profit increased 22.5% year over year to $7.7 million.

Adjusted EBITDA was $2.5 million, down 9.4% year over year.

Operating income was nearly $1.3 million, compared to $2 million reported in the prior-year quarter.

Balance sheet and cash flow

As of June 30, DecisionPoint had cash and cash equivalents of $7.2 million compared to $18 million as of March 31, 2023. Long-term debt was $6.9 million compared to $11.1 million as of March 31 March 2023. The decrease in cash and the increase in debt balance resulted mainly from the company taking out loans for the purchase of MIS.

For the six months ended June 30, 2023, cash generated from operations was $5 million, compared to $12.9 million in the prior-year quarter.

Conductivity

In the third quarter of 2023, the company expects revenue to be between $27 million and $29 million. Adjusted EBITDA is forecast in the range of $2 million to $2.3 million.

Zacks Rank and Key Picks

DecisionPoint carries a Zacks Rank #3 (Hold).

Some better-ranked companies worth considering in the broader technology space include: Badger gauge BMI, Sales force CRM i Pegasystems PEGA. All stocks carry a Zacks Rank #2 (Buy). You can see see the complete list of today’s Zacks #1 (Strong Buy) stocks here.

The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 6.3% over the past 60 days to $2.86 per share. BMI’s earnings over the last four quarters have topped estimates, with the average surprise being 6.7%. The BMI share increased by 64% last year.

The Zacks Consensus Estimate for Salesforce’s fiscal 2024 earnings is $7.44 per share, unchanged over the past 60 days. The long-term earnings growth rate is expected to be 19.3%.

CRM results for the last four quarters exceeded estimates, with an average result of 15.5%. CRM stock is up 11.1% over the past year.

Pegasystems’ 2023 earnings have risen 6.6% to $1.46 per share over the past 60 days, according to the Zacks Consensus Estimate. PEGA’s average earnings over the last four quarters were a surprising 166.2%. PEGA shares are up 16.4% over the past year.

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