Third-Quarter Financial Results: TSS, Inc. reported a 40% decline in revenue, resulting in a net loss of $1.5 million, with earnings dropping to a loss of 6 cents per share compared to a profit of 10 cents per share a year earlier.
Segment Performance: Procurement revenue fell by 49%, while Systems Integration revenue increased by 20%. Overall, gross profit declined by 41%, highlighting significant challenges in procurement activity.
Year-to-Date Growth: Despite the quarterly losses, TSS reported an 88% increase in year-to-date revenue, reaching $184.8 million, with adjusted EBITDA rising by 59% to $10.7 million.
Future Outlook: CEO Darryll Dewan anticipates stronger fourth-quarter results and has raised the full-year adjusted EBITDA growth outlook to between 50% and 75% for 2024, expecting continued momentum into 2026.
Wall Street analysts forecast TSSI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSSI is 20.50 USD with a low forecast of 20.50 USD and a high forecast of 20.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
Wall Street analysts forecast TSSI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSSI is 20.50 USD with a low forecast of 20.50 USD and a high forecast of 20.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 11.160
Low
20.50
Averages
20.50
High
20.50
Current: 11.160
Low
20.50
Averages
20.50
High
20.50
No data
About TSSI
TSS, Inc. is a data center services company that integrates high-performance computing infrastructure and software. The Company's segments include Procurement, Systems Integration, and Facilities Management. Its Procurement segment assists its customers in procuring third-party hardware, software, and professional services on their behalf that are used in its integration services as it integrates these components to deliver a completed system to its customers. Its Systems integration segment integrates information technology (IT) equipment for original equipment manufacturer vendors and customers to be used inside data center environments, including modular data centers. Its Facilities segment is involved in the design, project management and maintenance of data centers and mission-critical business operations. Its services consist of technology consulting, design and engineering, project management, systems integration, systems installation, facilities management and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
