Israeli identity and security solutions firm SuperCom's Q3 revenue beats expectations

Reuters11-13
Israeli identity and security solutions firm SuperCom's Q3 revenue beats expectations

Overview

  • SuperCom Q3 revenue beats analyst expectations, despite a year-over-year decline

  • Company secured over 30 new EM contracts in the U.S. since mid-2024

Outlook

  • SuperCom did not provide specific financial guidance for future quarters or the full year

Result Drivers

  • GROSS MARGIN EXPANSION - Co achieved higher gross margins, expanding to 60.8% from 45.6%, contributing to improved profitability

  • NEW CONTRACTS - SuperCom secured over 30 new electronic monitoring contracts in the U.S., boosting market presence and revenue

  • DISPLACING INCUMBENTS - Co's ability to replace legacy vendors in new markets, including Germany, contributed to growth

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$6.22 mln

$5.76 mln (2 Analysts)

Q3 Adjusted EPS

Beat

$0.39

-$0.12 (2 Analysts)

Q3 Net Income

$691,000

Q3 EBIT

$639,000

Q3 EBITDA

$2.20 mln

Q3 Gross Profit

$3.78 mln

Q3 Operating Expenses

$3.14 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Supercom Ltd is $15.00, about 33% above its November 12 closing price of $10.05

Press Release: ID:nPnbDBxjKa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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