Overview
US data center services firm's Q4 revenue rose 22% yr/yr; full-year revenue up 66%
Full-year diluted EPS more than doubled to $0.56
Company extended long-term AI rack integration deal with largest customer
Outlook
TSS expects 2026 Adjusted EBITDA in the range of $20 mln to $22 mln
Company anticipates record growth in Systems Integration, with rack integration volumes expected to double
Company takes conservative view on Procurement and Facilities Management outlook due to supply chain volatility
Result Drivers
SYSTEMS INTEGRATION RAMP - Co said ramp-up of systems integration rack volumes at new Georgetown facility drove Q4 and full-year growth
AI INFRASTRUCTURE DEMAND - Co cited accelerating demand for AI and cloud infrastructure as a key growth driver, with increased rack complexity and cooling requirements benefiting its business
CUSTOMER AGREEMENT EXTENSION - Amended and extended long-term AI rack integration agreement with largest customer provided business stability and growth visibility
Company press release: ID:nACShdKJBa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $60.91 mln | $41.40 mln (2 Analysts) |
Q4 EPS | $0.41 | ||
Q4 Net Income | $12.16 mln | ||
Q4 Basic EPS | $0.45 | ||
Q4 Gross Profit | $11.34 mln | ||
Q4 Operating Income | $4.06 mln | ||
Q4 Pretax Profit | $4.40 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"
Wall Street's median 12-month price target for TSS Inc is $14.50, about 31.2% above its March 10 closing price of $11.05
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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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