PRESTO AUTOMATION Misses Revenue Estimate by $0.11M Despite $0.08 GAAP EPS
November 21, 2023
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Presto Automation ($NASDAQ:PRST)’s latest earnings report has been met with disappointment as the company missed revenue estimates of $5M by $0.11M. Presto Automation is a technology company that specializes in providing automation solutions that enable customers to streamline their production facilities and increase efficiency. The company develops and sells a wide range of automated machines and robots, as well as software and hardware for industrial automation.
Their products are used in a variety of industries including automotive, medical, semiconductor, and consumer goods. They have recently seen a surge in demand due to the pandemic, as many businesses have been forced to make big changes in order to remain competitive.
Price History
Monday’s trading for PRESTO AUTOMATION was a mixed bag. While the stock opened at $0.8 and closed at $0.9, up by 4.5% from the prior closing price, the company missed its revenue estimate by $0.11M. Despite this, PRESTO AUTOMATION reported a positive GAAP EPS of $0.08.
The miss in revenue estimate is likely to have an impact on investor confidence going forward, as investors may take a more cautious view of the stock due to the unexpected revenue miss. The results are also likely to put pressure on PRESTO AUTOMATION’s management to find new ways to grow revenue and improve profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Presto Automation. More…
| Total Revenues | Net Income | Net Margin |
| 26.14 | -34.48 | -264.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Presto Automation. More…
| Operations | Investing | Financing |
| -44.53 | -7.89 | 74.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Presto Automation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 46.69 | 91.91 | -0.79 |
Key Ratios Snapshot
Some of the financial key ratios for Presto Automation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | – | -83.1% |
| FCF Margin | ROE | ROA |
| -192.9% | 40.2% | -29.1% |
Analysis
GoodWhale has conducted an analysis of PRESTO AUTOMATION‘s wellbeing, and based on our Star Chart, the company has a low health score of 2/10 with regard to its cashflows and debt. This indicates that it is less likely to safely ride out any crisis without the risk of bankruptcy. We found the company to be strong in terms of asset stability and weak in dividend payout, growth, and profitability. Our analysis suggests that PRESTO AUTOMATION is an unattractive investment for any investor looking for short-term gains. However, investors looking for long-term investments may be interested due to the company’s low levels of debt and strong asset stability. More…
Peers
They face competition from several other well-known companies such as PagerDuty Inc, Performance One AG, and AMTD Digital Inc. All of these companies offer their own unique products and services to help businesses become more efficient and successful.
– PagerDuty Inc ($NYSE:PD)
PagerDuty Inc is a San Francisco-based digital operations management company that offers products and services to help organizations manage IT incidents and outages. The company has a market cap of 2.71 billion as of 2023, which is an indication of its financial strength and performance in the market. The Return on Equity (ROE) of -32.37% indicates that the company has been unable to generate enough profits from its equity investments compared to other companies in the industry. PagerDuty has been able to build a strong customer base that has enabled them to become a leader in their industry, but they have also struggled to keep their profits up in recent years. Moving forward, PagerDuty will need to find ways to improve their profits in order to increase their market value and ROE.
– Performance One AG ($BER:PO1)
Performance One AG is a German-based technology and services provider established in 2018. The company specializes in the design, installation, and maintenance of innovative digital solutions for a wide variety of businesses. With a market cap of 8.98M as of 2023, Performance One AG is well-positioned as a major player in the industry. Its Return on Equity of 719.67% further demonstrates the company’s commitment to delivering value and increasing its stockholders’ returns.
– AMTD Digital Inc ($NYSE:HKD)
AMTD Digital Inc is a leading digital asset financial services firm that builds innovative solutions to enable digital asset trading, settlement, lending, banking and other digital asset platform services. With a market cap of 1.25 billion as of 2023, AMTD Digital Inc is a large and growing company. The Return on Equity (ROE) of 1.7% is an acceptable rate of return for the company, indicating that it is able to generate a return on its investments. This implies that the company has a prudent investment strategy and is making good use of its capital. By continuing to develop cutting-edge solutions for the digital asset market, AMTD Digital Inc is well positioned to remain a leader in this fast-growing industry.
Summary
Presto Automation recently reported their GAAP EPS of $0.08 and revenue of $4.89M, missing estimates by $0.11M. Despite this negative news, the stock price moved up the same day, indicating that investors are still confident in the company’s future growth prospects. This can be seen as a positive sign as it suggests that investors believe in Presto Automation’s current position despite the miss.
Investors should evaluate the company’s performance and outlook, and consider factors such as competitive landscape and industry trends when assessing Presto Automation’s potential. Based on financials, management and competitive advantage, investors should assess whether Presto Automation is a suitable investment in the long-term.
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