SurgePays, Inc. Reports Major Quarterly Loss as Revenues Decline
SurgePays, Inc. (SURG) experienced a substantial quarterly loss of $0.73 per share, far worse than the Zacks Consensus Estimate predicting a loss of $0.22. This is a stark contrast to earnings of $0.49 per share reported a year ago, with all figures adjusted for non-recurring items.
Significant Earnings Surprise
The quarterly results demonstrate an earnings surprise of -231.82%. Just a quarter ago, the expectation was for a loss of $0.17 per share, while the actual result was a loss of $0.66, leading to a surprise of -288.24%.
Recent Financial Struggles
In the last four quarters, SurgePays, Inc. has consistently failed to meet consensus EPS estimates. For the quarter ending September 2024, the company reported revenues of $4.77 million, which missed the Zacks Consensus Estimate by 44.79%. This decline is evident compared to year-ago revenues of $34.16 million. Over this same period, the company has managed to exceed consensus revenue expectations only once.
Looking Ahead: What’s Next for SurgePays?
Despite a challenging market performance this year, investors are curious about the next steps for SurgePays, Inc. One crucial factor to consider is the company’s earnings outlook, which includes current consensus expectations for upcoming quarters and their recent revisions.
Research indicates that trends in earnings estimate revisions are often closely linked to stock price changes. Investors can track these revisions independently or utilize a reliable tool like the Zacks Rank, known for its successful record in earnings estimate predictions.
Before the latest earnings results, the trends in estimate revisions for SurgePays, Inc. were mixed. Although these may shift in light of the recent report, the current standing has earned the stock a Zacks Rank of #3 (Hold), suggesting it is likely to perform in line with the market shortly. A complete list of today’s Zacks #1 Rank (Strong Buy) stocks can be found here.
Consensus Outlook and Industry Impact
As estimates for future quarters and the current fiscal year evolve, it will be pivotal for investors. Currently, the consensus EPS estimate stands at -$0.19 on projected revenues of $10.66 million for the upcoming quarter and -$1.03 with revenues of $65.8 million for the current fiscal year.
Investors should also consider broader industry trends, as they can significantly influence a stock’s performance. The Internet – Software sector, represented by SurgePays, is presently ranked in the top 21% of over 250 Zacks industries. Historically, the top 50% outperform the lower half by more than a two-to-one ratio.
Comparative Analysis: DocuSign’s Upcoming Report
Another player in the Internet – Software industry, DocuSign (DOCU), has not yet released results for the quarter ending October 2024. The company is projected to report quarterly earnings of $0.86 per share, reflecting a year-over-year increase of 8.9%. Over the last month, the consensus EPS estimate for DocuSign has remained unchanged.
Additionally, DocuSign’s expected revenues of $743.38 million indicate a growth of 6.1% from the same quarter last year.
Investment Recommendations
From a pool of stocks, Zacks experts have identified five potentials for significant growth, with Director of Research Sheraz Mian selecting one as the most likely to experience explosive upside. This particular company focuses on millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent drop in its stock price may offer a savvy entry point for investors. While not all elite stock picks succeed, this selection could outperform previous Zacks winners like Nano-X Imaging, which surged 129.6% in just over nine months.
To find out more about top stock picks or download Zacks’ report on “5 Stocks Set to Double,” click to access valuable resources.
SurgePays, Inc. (SURG): Free Stock Analysis Report
DocuSign Inc. (DOCU): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
