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Investing.com -- Shares of Cantaloupe, Inc. (NASDAQ: CTLP) climbed 4% after the company reported second-quarter earnings per share (EPS) that exceeded analysts’ expectations.
The Malvern-based technology solutions provider for self-service commerce announced an EPS of $0.07 for the second quarter, which was $0.02 higher than the analyst estimate of $0.05. However, revenue for the quarter was $73.7 million, falling slightly short of the consensus estimate of $75.28 million. Despite this, the company’s revenue represented a 12.8% increase compared to the same quarter last year, driven by a 16% YoY growth in Subscription and Transaction (JO:TCPJ) revenue.
Cantaloupe’s second-quarter results were bolstered by a net income applicable to common shares of $5.0 million, up from $3.1 million in the prior year’s quarter. The company also reported strong growth in transaction fees and subscription fees, which increased by 17.2% and 14.1%, respectively. Equipment sales, however, saw a decrease of 7.4%.
The company reiterated its fiscal year 2025 guidance, expecting total revenue to be between $308 million and $322 million, in line with the consensus of $312 million. This guidance reflects the company’s confidence in its growth trajectory and ongoing initiatives, such as the recently launched AdVantage program and Smart Store solutions.
Analysts have responded positively to Cantaloupe’s financial performance. B.Riley analyst Josh Nichols raised the price target on Cantaloupe to $11.50 from $10.50, maintaining a Buy rating. Nichols noted, "Subscription and transaction fees accounted for 88% of sales and were +16.2% Y/Y."
Craig-Hallum analyst George Sutton also commented on Cantaloupe’s quarter, highlighting the company’s delivery on key investor interests such as subscription & transaction revenue and profitability. Sutton pointed out the company’s traction with new products and a growing set of opportunities, expecting increased profitability in the upcoming quarters. Sutton maintains a Buy rating on the shares.
Investors seem to share the analysts’ optimism, as reflected in the stock’s positive movement in the trading session.
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