Earnings Per Share (EPS) of -$0.38, surpassing the estimated -$0.43.
Reported revenue of $1.07 million, below the expected $1.4 million.
Significant operational achievement with a new contract for a Railcar Inspection Portal (RIP®) system valued at approximately $2.7 million.
On Monday, May 13, 2024, Duos Technologies Group, Inc. (NASDAQ:DUOT) reported its earnings after the market closed, revealing an earnings per share (EPS) of -$0.38, which was better than the estimated -$0.43. However, the company’s revenue stood at approximately $1.07 million, falling short of the expected $1.4 million. This announcement was part of DUOT’s first quarter 2024 earnings conference call, which included insights from CEO Chuck Ferry and CFO Adrian Goldfarb, aiming to shed light on the company’s performance and strategic direction.
Duos Technologies Group, operating within the Zacks Technology Services industry, is known for its innovative use of machine vision and artificial intelligence in analyzing fast-moving vehicles. Despite the company’s technological advancements, it has faced challenges meeting consensus revenue estimates over the last four quarters. The reported revenue of $1.07 million for the quarter ended March 2024 represents a significant decrease from the $2.64 million reported in the same period last year, indicating a need for strategic adjustments to improve financial performance.
The company’s recent financial results also highlighted a quarterly loss of $0.38 per share, which, while better than the Zacks Consensus Estimate of a loss of $0.43 per share, was worse than the loss of $0.30 per share from the same period a year ago. This result represents an earnings surprise of 11.63%. However, in the previous quarter, DUOT had a larger-than-expected loss of $0.44 per share against an expected loss of $0.31, marking a significant negative surprise of -41.94%. These figures underscore the volatility in Duos Technologies’ earnings and the challenges it faces in achieving profitability.
Despite these financial challenges, Duos Technologies has made significant operational achievements, including being awarded a contract for an additional Railcar Inspection Portal (RIP®) system valued at approximately $2.7 million. This new system, set to be deployed in a novel industrial application environment, marks a significant expansion of the company’s potential market. Additionally, the company has been granted a wide-ranging patent for a device to capture high-resolution images of a train as it passes through an inspection portal, bringing the total number of patents for the RIP technology to 10.
Duos Technologies exhibits a price-to-sales ratio (P/S) of approximately 3.60 and an enterprise value-to-sales ratio (EV/Sales) of around 3.96. The company’s debt-to-equity ratio stands at 0.93, indicating a moderate level of debt relative to its equity. Furthermore, with a current ratio of 2.07, Duos Technologies maintains a healthy capability to cover its short-term liabilities with its short-term assets. These financial metrics provide a snapshot of the company’s valuation and financial health, reflecting its current market position and operational capabilities.
