CPS Technologies Swings to Q2 Operating Loss on Higher SG&A Costs
CPSH sits 60% above its 52-week low of $2.67 on light trading volume (0.2× avg).
Summary
CPS Technologies reported a Q2 operating loss of $200K despite a 2% revenue increase to $8.3M, which beat the lone analyst estimate by $0.1M. The loss stemmed from a $0.3M year-over-year rise in SG&A expenses, compressing margins. Gross margin came in at 14.8%, generating $1.22M in gross profit. This follows a Q1 net loss and a $9.6M equity raise completed in June to fund a facility move and growth initiatives. The stock recently traded at 41x forward earnings, up from 39x three months ago, reflecting elevated expectations that these results may challenge.
At the time of this announcement, CPSH was trading at $4.27 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $82M. The 52-week trading range was $2.67 to $14.39. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.