PowerFleet (NASDAQ:AIOT) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• PowerFleet beat earnings expectations, reporting an adjusted loss of $0.01 per share versus the consensus loss of $0.02. However, quarterly revenue of $110.79 million fell short of analysts’ $115.54 million estimate.
• The company approved a $30 million share-repurchase program, allowing it to buy back up to 6% of outstanding shares, while institutional investors own 73.4% of the stock.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $9.67; PowerFleet shares opened at $4.41, compared with a 12-month range of $2.78 to $5.88.

PowerFleet (NASDAQ:AIOT - Get Free Report) announced its quarterly earnings data on Monday. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.02) by $0.01, FiscalAI reports. The firm had revenue of $110.79 million for the quarter, compared to analyst estimates of $115.54 million. PowerFleet had a negative net margin of 4.63% and a negative return on equity of 1.33%.

PowerFleet Stock Performance

Shares of PowerFleet stock opened at $4.41 on Monday. The business's fifty day simple moving average is $4.07 and its 200 day simple moving average is $3.78. The firm has a market capitalization of $591.95 million, a P/E ratio of -27.56 and a beta of 1.43. PowerFleet has a 12 month low of $2.78 and a 12 month high of $5.88. The company has a current ratio of 1.13, a quick ratio of 0.99 and a debt-to-equity ratio of 0.48.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of AIOT. Royal Bank of Canada raised its stake in shares of PowerFleet by 198.0% during the 1st quarter. Royal Bank of Canada now owns 91,365 shares of the company's stock worth $501,000 after purchasing an additional 60,705 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in PowerFleet by 275.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 203,211 shares of the company's stock valued at $1,116,000 after buying an additional 149,116 shares during the period. Dynamic Technology Lab Private Ltd purchased a new stake in PowerFleet during the first quarter worth about $251,000. Goldman Sachs Group Inc. increased its holdings in PowerFleet by 15.3% during the first quarter. Goldman Sachs Group Inc. now owns 1,045,424 shares of the company's stock worth $5,739,000 after buying an additional 138,856 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new stake in PowerFleet in the first quarter worth about $3,670,000. Institutional investors own 73.40% of the company's stock.

PowerFleet announced that its Board of Directors has approved a share buyback plan on Tuesday, June 30th that allows the company to buyback $30.00 million in shares. This buyback authorization allows the company to repurchase up to 6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on AIOT shares. Raymond James Financial dropped their price target on PowerFleet from $8.00 to $7.00 and set an "outperform" rating on the stock in a research note on Tuesday, June 16th. UBS Group set a $7.00 price objective on PowerFleet in a report on Tuesday, June 16th. Wall Street Zen raised shares of PowerFleet from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Finally, Weiss Ratings lowered shares of PowerFleet from a "hold (c-)" rating to a "sell (d-)" rating in a research note on Tuesday, June 16th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, PowerFleet has a consensus rating of "Hold" and an average price target of $9.67.

PowerFleet Company Profile

PowerFleet, Inc NASDAQ: AIOT develops and delivers Internet of Things (IoT)–based telematics and asset-tracking solutions designed to help businesses monitor, manage and optimize fleets of vehicles and industrial equipment. Its core offerings include wireless sensors, GPS tracking devices and cloud-hosted software platforms that provide real-time visibility into vehicle whereabouts, usage patterns, fuel consumption and maintenance needs. The company's systems also support regulatory compliance and safety monitoring, enabling customers to reduce operational costs, minimize theft and improve overall asset utilization.

The company's hardware portfolio features RFID readers, active and passive tags, onboard diagnostics (OBD) adapters and temperature or motion sensors that can be deployed on trucks, trailers, forklifts, containers and other high-value assets.

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