SuperCom shares plunge as revenue misses estimates

Published 28/04/2025, 15:26
SuperCom shares plunge as revenue misses estimates

TEL AVIV - SuperCom (NASDAQ:SPCB) shares tumbled 22.8% after the e-Government and IoT solutions provider reported fourth quarter revenue that fell short of analyst expectations, despite posting better-than-expected earnings.

The company reported fourth quarter revenue of $6.33 million, up 11.6% YoY but below the consensus estimate of $6.5 million. Adjusted earnings per share came in at $0.66, significantly beating analyst expectations of -$0.40.

For the full year 2024, SuperCom achieved record revenues of $27.6 million, up 4% from the previous year. The company also reported its first full year of GAAP profitability since 2015, with net income of $661,000 compared to a loss of $4 million in 2023.

"2024 was a breakthrough year for SuperCom, as we achieved record financial and operational milestones that demonstrate the success of the strategic transformation we initiated in 2021," said Ordan Trabelsi, President and CEO of SuperCom.

Despite the positive annual results, investors appeared focused on the revenue miss for the quarter. The sharp stock decline suggests concerns about the company’s growth trajectory, overshadowing the earnings beat and full-year profitability milestone.

SuperCom highlighted its expansion in the U.S. market, securing over 20 new electronic monitoring contracts and entering seven new states. The company also strengthened its position in Europe with new national domestic violence monitoring programs.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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