TSS shares fall 24% after first-quarter profit and revenue drop
Updated
Updated · MarketWatch · May 8
TSS shares fall 24% after first-quarter profit and revenue drop
10 articles · Updated · MarketWatch · May 8
The stock slid to $12.10 premarket after quarterly profit fell to $2.28 million from $2.98 million and revenue dropped 44% to $55.3 million.
Earnings were 8 cents a share, beating FactSet estimates of 3 cents, while revenue still topped Wall Street forecasts of $43.2 million.
Procurement revenue sank 56%, facilities management slipped 0.6%, and systems integration jumped 88%; TSS maintained full-year adjusted EBITDA guidance of $20 million to $22 million.
Why did the market punish TSS's strong results, and what does this reveal about investor confidence in the AI boom?
Can TSS's booming AI business outrun the data center industry's crippling power shortages and supply chain bottlenecks?