Radcom misses earnings, revenue forecasts by wide margin
Telecom software firm Radcom reported adjusted EPS of $0.12 vs. $0.50 forecast and revenue of $24.1 million vs. $26.3 million estimate. Shares fell 10% in after-hours trading.
Radcom Ltd. reported second-quarter earnings and revenue that fell short of analyst expectations on Tuesday, sending shares down 10% in extended trading.
The telecom software company posted adjusted earnings per share of $0.12, missing the consensus estimate of $0.50 by $0.38. Revenue totaled $24.1 million, below the $26.3 million forecast. Both metrics reflected a sequential decline from the prior quarter.
Radcom attributed the shortfall to slower-than-anticipated adoption of its 5G network testing solutions and delays in customer deployments. The company maintained its full-year guidance, citing a strong pipeline of enterprise contracts expected to materialize in the second half of 2024.
Analysts at Jefferies noted that while the miss was significant, Radcom’s long-term growth narrative remained intact, supported by demand for automation in telecom infrastructure. The stock, which had gained 15% year-to-date prior to the report, erased those gains in after-hours trading.
Radcom’s management emphasized that the revenue shortfall was concentrated in specific geographic markets and product lines, with no material change to its strategic outlook. The company plans to provide further updates during its earnings call scheduled for Wednesday.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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