WidePoint (NYSEAMERICAN:WYY) Issues Quarterly Earnings Results

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

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 Price Performance

Shares of WYY stock remained flat at $6.03 during trading on Thursday. The company had a trading volume of 109,808 shares, compared to its average volume of 177,823. The company has a market cap of $60.30 million, a price-to-earnings ratio of -46.38 and a beta of 1.93. The stock’s 50 day simple moving average is $8.27 and its 200-day simple moving average is $8.54. WidePoint has a fifty-two week low of $3.96 and a fifty-two week high of $24.30.

Wall Street Analyst Weigh In

Separately, Zacks Research cut shares of WidePoint from a “strong-buy” rating to a “hold” rating in a research report on Thursday, August 13th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, WidePoint has an average rating of “Moderate Buy” and a consensus target price of $9.00.

WidePoint Company Profile

WidePoint Corporation provides secure technology solutions for government agencies, regulated organizations and commercial enterprises. The company focuses on helping customers manage mobile communications, digital identities and cybersecurity requirements across distributed workforces and connected devices. Its services include telecommunications expense management, managed mobility and wireless lifecycle management, identity assurance, credentialing, authentication and cybersecurity. WidePoint also provides tools and services designed to support secure access to networks and applications, protect communications and improve visibility into technology usage and expenses.