Astrotech Corp (NASDAQ: ASTC) is having an incredibly rough start to the trading session this morning, and for good reason. After big gains on Friday with no news released, investors expected to see a strong earnings report today. Unfortunately, that wasn’t exactly the case. Today, we’ll talk about:
- What we saw from earnings;
- what we’re seeing from ASTC stock as a result; and
- what we’ll be watching for ahead.
ASTC Reports Earnings
As mentioned above, Astrotech is having a rough start to the trading session this morning after reporting its earnings for the fourth quarter and fiscal 2018 year. Unfortunately, the report showed shrinking revenue and growing losses. Here’s what we saw:
- Revenue – In terms of revenue, ASTC missed the mark. During the fourth quarter, the company reported revenue in the amount of $86 million. That’s a massive reduction from the $3.23 billion that the company generated int he fourth quarter of 2017.
- Losses – Also, losses are widening in a big way. During the quarter, the company generated a loss of $3.26 per share. That figure widened greatly from the loss of $2.84 per share in the same quarter one year ago.
In a statement, Thomas B. Pickens III, Chairman and CEO at ASTC, had the following to offer:
Fiscal 2018 was an excellent year in terms of product endorsement at 1st Detect. We achieved three major milestones toward our goal of securing airports, borders, package distribution centers, and other public venues from explosive threats, as we strive to modernize the explosives trace detector (ETD) market.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that it’s important to keep any eye on the news. After all, the news moves the market. In the case of Astrotech, the news was anything but positive. Unfortunately, the company released a financial report showing that not only is revenue shrinking, losses are widening as a result. That’s definitely not something that investors want to see. So, it comes as no surprise to see that investors are upset and the stock is tumbling as a result. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:24), ASTC is trading at $4.60 per share after a loss of $0.99 per share or 17.71% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on Astrotech. In particular, we’re interested in following the story surrounding the comapny’s work to revamp and pull itself out of the hole it has put itself in. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!