WidePoint (NYSEAMERICAN:WYY) Posts Quarterly Earnings Results, Misses Estimates By $0.07 EPS

WidePoint (NYSEAMERICAN:WYY) posted its earnings results on Thursday. The technology company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.05 by ($0.07), FiscalAI reports. The firm had revenue of $45.07 million during the quarter, compared to analyst estimates of $40.02 million. WidePoint had a negative net margin of 0.81% and a negative return on equity of 10.74%.

Here are the key takeaways from WidePoint’s conference call:

• Third-quarter revenue rose 27% to $45.1 million, driven by growth in DHS phone lines under management and Coast Guard Digital Seabags sales. Nine-month revenue increased 16% to $123.6 million.
• WidePoint reported a nine-month net loss of just $49,000, compared with a $1.9 million loss a year earlier, and ended the quarter with $10.1 million in unrestricted cash and no bank debt. Third-quarter adjusted EBITDA was nearly flat year over year at $338,000.
• The CWMS 3.0 award remains pending after a GAO protest; DHS requested revised proposals, and WidePoint says it has submitted one. The company continues working under bridge contracts, receiving $33.7 million in new and replacement task orders during the quarter, while its federal and federally related backlog totaled about $209 million.
• Management sees potential growth from the ATV contract, which remains on track for launch, and from NASA’s SEWP VI vehicle, where ordering has begun and activity is expected to build in 2027. WidePoint also cited its CDW partnership, including support for the LA28 Olympics, and a pipeline of commercial Device as a Service opportunities; these opportunities have not yet translated into significant revenue.
• Management expects higher operating costs from accelerated-filer requirements, healthcare, labor, inflation, and technology investments. It forecasts about $2 million in capital expenditures in 2027, including upgrades for post-quantum cryptography, while the company also faces a CFO departure and an interim transition of sales and marketing duties.

WidePoint Trading Down 4.6%

Shares of NYSEAMERICAN:WYY traded down $0.28 on Friday, reaching $5.75. 53,884 shares of the company’s stock were exchanged, compared to its average volume of 177,241. The company has a fifty day moving average of $8.18 and a 200-day moving average of $8.53. WidePoint has a twelve month low of $3.96 and a twelve month high of $24.30. The company has a market capitalization of $57.55 million, a price-to-earnings ratio of -44.39 and a beta of 1.93.

Wall Street Analysts Forecast Growth

Separately, Zacks Research downgraded WidePoint from a “strong-buy” rating to a “hold” rating in a research note on Thursday, August 13th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, WidePoint has an average rating of “Moderate Buy” and an average target price of $9.00.

About WidePoint

WidePoint Corporation provides technology and communications services to government and commercial customers. Its offerings include managed mobility services, which help organizations oversee mobile devices, wireless plans and related expenses, as well as telecom expense management for tracking and managing communications costs. The company also provides identity management and cybersecurity services, including digital identity credentials, authentication and certificate management. These services support secure access to systems and devices and are used by organizations with complex security and compliance needs.