Caesars Entertainment misses Q2 earnings expectations, shares edge lower
Investing.com - Stephens raised its price target on Parametric Sound (NASDAQ:PAMT) to $13.00 from $12.50 on Tuesday, while maintaining an Equal Weight rating on the stock following the company’s second-quarter earnings miss. According to InvestingPro data, the company’s overall financial health score is rated as "Fair," with particular concerns about its debt management and cash flow metrics.
Parametric Sound reported an adjusted second-quarter loss of $0.46 per share, significantly wider than Stephens’ estimate of a $0.22 per share loss. The research firm attributed the disappointing results to continued demand pressure, particularly noting unplanned downtime from automotive OEMs during the quarter. The company’s challenges are reflected in its weak gross profit margin of 13.84% and concerning debt-to-equity ratio of 1.35, as revealed by InvestingPro analysis.
The audio technology company has increased its focus on costs, productivity, and asset utilization, according to Stephens. However, the research firm believes demand needs to improve more substantially for Parametric Sound to leverage utilization and return to profitability. InvestingPro Tips highlight that the company is quickly burning through cash, with negative free cash flow yield and challenges in maintaining profitability. Get access to 6 more exclusive InvestingPro Tips by subscribing to InvestingPro.
Stephens expects some improvement next year as the trucking rate environment moderately improves and Parametric Sound grows its truck count and productivity. The company’s cross-border business could potentially benefit if B-1 visa enforcement increases, though Stephens does not anticipate this having a material impact on second-half results.
The modest price target increase comes despite the earnings miss, suggesting Stephens sees some value in Parametric Sound’s cost-cutting initiatives and potential for improvement in 2026.
In other recent news, PAMT Corp announced a significant leadership change as its President and CEO, Joseph A. Vitiritto, plans to resign on June 27, 2025, for family reasons. The Board has appointed Matthew T. Moroun, the current Chairman, as interim President and CEO, effective the same date. Additionally, PAMT Corp has updated its indemnification agreement for directors and executive officers to reflect its recent reincorporation in Nevada. In related developments, Stephens analysts have adjusted their outlook on Parametric Sound, raising the price target to $12.50 while maintaining an Equal-Weight rating. This revision comes after Parametric Sound’s first-quarter earnings report for 2025, which showed an adjusted earnings per share that fell short of expectations. Analysts cited ongoing challenges in the transportation and logistics sector, particularly in the automotive market, as factors affecting the company’s performance. The company has been impacted by decreased auto volumes, leading to operational ratio deleverage and reduced fleet productivity. The start of the second quarter has seen these challenges persist, with domestic OEMs reducing operations and anticipating extended plant downtimes.
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