WidePoint (NYSEAMERICAN:WYY) Posts Earnings Results, Misses Expectations By $0.07 EPS

Key Points

• WidePoint reported a quarterly loss of $0.02 per share, missing the $0.05 consensus estimate by $0.07, while revenue of $45.1 million exceeded estimates of $40.0 million and rose 27% year over year.
• The company’s nine-month net loss narrowed to $49,000 from $1.9 million a year earlier; it ended the quarter with $10.1 million in unrestricted cash and no bank debt.
• The CWMS 3.0 award remains pending after a GAO protest, though WidePoint submitted a revised proposal and reported a roughly $209 million federal and federally related backlog.

WidePoint (NYSEAMERICAN:WYY - Get Free Report) released its quarterly earnings data on Thursday. The technology company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.05 by ($0.07), FiscalAI reports. The company had revenue of $45.07 million during the quarter, compared to analyst estimates of $40.02 million. WidePoint had a negative net margin of 0.81% and a negative return on equity of 10.74%.

Here are the key takeaways from WidePoint's conference call:

• Third-quarter revenue rose 27% to $45.1 million, driven by growth in DHS phone lines under management and Coast Guard Digital Seabags sales. Nine-month revenue increased 16% to $123.6 million.
• WidePoint reported a nine-month net loss of just $49,000, compared with a $1.9 million loss a year earlier, and ended the quarter with $10.1 million in unrestricted cash and no bank debt. Third-quarter adjusted EBITDA was nearly flat year over year at $338,000.
• The CWMS 3.0 award remains pending after a GAO protest; DHS requested revised proposals, and WidePoint says it has submitted one. The company continues working under bridge contracts, receiving $33.7 million in new and replacement task orders during the quarter, while its federal and federally related backlog totaled about $209 million.
• Management sees potential growth from the ATV contract, which remains on track for launch, and from NASA’s SEWP VI vehicle, where ordering has begun and activity is expected to build in 2027. WidePoint also cited its CDW partnership, including support for the LA28 Olympics, and a pipeline of commercial Device as a Service opportunities; these opportunities have not yet translated into significant revenue.
• Management expects higher operating costs from accelerated-filer requirements, healthcare, labor, inflation, and technology investments. It forecasts about $2 million in capital expenditures in 2027, including upgrades for post-quantum cryptography, while the company also faces a CFO departure and an interim transition of sales and marketing duties.

WidePoint Price Performance

Shares of NYSEAMERICAN WYY remained flat at $6.03 during mid-day trading on Thursday. 109,808 shares of the stock were exchanged, compared to its average volume of 177,823. The company has a market capitalization of $60.30 million, a PE ratio of -46.38 and a beta of 1.93. The firm's fifty day moving average is $8.27 and its 200-day moving average is $8.54. WidePoint has a one year low of $3.96 and a one year high of $24.30.

Wall Street Analysts Forecast Growth

Separately, Zacks Research cut WidePoint from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 13th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $9.00.

About WidePoint

WidePoint Corporation provides secure technology solutions for government agencies, regulated organizations and commercial enterprises. The company focuses on helping customers manage mobile communications, digital identities and cybersecurity requirements across distributed workforces and connected devices. Its services include telecommunications expense management, managed mobility and wireless lifecycle management, identity assurance, credentialing, authentication and cybersecurity. WidePoint also provides tools and services designed to support secure access to networks and applications, protect communications and improve visibility into technology usage and expenses.

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