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Investing.com -- Kornit Digital Ltd . (NASDAQ:KRNT) saw its shares tumble 4.9% after reporting first quarter results that met expectations but failed to excite investors. The digital textile printing solutions provider posted in-line revenue and a slight earnings beat, while providing mixed guidance for the second quarter.
Kornit reported Q1 adjusted earnings per share of $0.01, edging past analyst estimates of breakeven. Revenue came in at $46.5 million, essentially matching the consensus forecast of $46.47 million and up 6.1% YoY.
For the second quarter, Kornit expects revenue between $49 million and $55 million, compared to analyst projections of $52.92 million. The midpoint of guidance at $52 million falls slightly below the consensus estimate.
"We delivered to our commitments in Q1, even as we operated in an uncertain macro environment," said CEO Ronen Samuel. He added that the company is "playing offense and leading this transformation of how fashion is created, consumed, and delivered."
The company reported annual recurring revenue from AIC contracts of $14.5 million, which it said reflects "strong initial adoption of this new business model."
Kornit’s gross profit margin improved to 42.6% on a GAAP basis, up from 32.3% in the year-ago quarter. Non-GAAP gross margin rose to 45.2% from 37.5% last year.
While meeting expectations, the lack of upside surprise and cautious guidance appear to have disappointed investors, as reflected in the stock’s decline following the earnings release. The company continues to navigate a challenging macro environment as it aims to lead the digital transformation of the apparel industry.
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