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

A2Z Cust2Mate Solutions (NASDAQ:AZ) posted its quarterly earnings data on Wednesday, August 12th. The company reported ($0.16) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.18) by $0.02, Zacks reports. A2Z Cust2Mate Solutions had a negative net margin of 241.67% and a negative return on equity of 49.91%. The company had revenue of $5.90 million for the quarter, compared to analyst estimates 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 Stock Up 2.7%

Shares of A2Z Cust2Mate Solutions stock traded up $0.16 during trading on Friday, reaching $6.15. The company had a trading volume of 268,833 shares, compared to its average volume of 445,320. The company has a market cap of $273.92 million, a price-to-earnings ratio of -7.41 and a beta of 1.16. The firm’s fifty day moving average is $6.19 and its 200-day moving average is $6.37. The company has a debt-to-equity ratio of 0.02, a quick ratio of 6.56 and a current ratio of 7.52. A2Z Cust2Mate Solutions has a fifty-two week low of $4.97 and a fifty-two week high of $9.12.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on AZ shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of A2Z Cust2Mate Solutions in a research note on Friday, July 17th. Zacks Research upgraded A2Z Cust2Mate Solutions from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 11th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, A2Z Cust2Mate Solutions presently has an average rating of “Hold” and a consensus target price of $15.00.

A2Z Cust2Mate Solutions announced that its board has authorized a stock buyback program on Monday, July 6th that authorizes the company to repurchase $20.00 million in shares. This repurchase authorization authorizes the company to reacquire up to 7.2% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Hedge Funds Weigh In On A2Z Cust2Mate Solutions

Hedge funds have recently bought and sold shares of the company. Alyeska Investment Group L.P. grew its position in shares of A2Z Cust2Mate Solutions by 110.4% in the 3rd quarter. Alyeska Investment Group L.P. now owns 2,000,987 shares of the company’s stock worth $15,988,000 after acquiring an additional 1,050,000 shares in the last quarter. Shay Capital LLC increased its holdings in shares of A2Z Cust2Mate Solutions by 133.6% in the 3rd quarter. Shay Capital LLC now owns 1,600,000 shares of the company’s stock valued at $12,784,000 after acquiring an additional 915,000 shares during the last quarter. Private Advisor Group LLC raised its position in shares of A2Z Cust2Mate Solutions by 331.3% during the 4th quarter. Private Advisor Group LLC now owns 862,765 shares of the company’s stock valued at $5,617,000 after acquiring an additional 662,718 shares in the last quarter. Jain Global LLC acquired a new stake in shares of A2Z Cust2Mate Solutions during the 3rd quarter valued at approximately $2,617,000. Finally, CIBC Bancorp USA Inc. acquired a new stake in shares of A2Z Cust2Mate Solutions during the 3rd quarter valued at approximately $2,490,000. 12.64% of the stock is currently owned by institutional investors and hedge funds.

A2Z Cust2Mate Solutions Company Profile

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.