DecisionPoint Systems Inc. (DPSI) Surges 5.3%: Is This an Indication of Further Gains?
DecisionPoint Systems Inc. DPSI shares soared 5.3% in the last trading session to close at $7.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.2% gain over the past four weeks.
The increase in share price can be attributed to healthy top-line performance. The top line is being driven by higher software and services revenues along with contributions from buyouts and cross-selling opportunities. Rising adoption of its products and services across verticals like grocery and specialty retail, healthcare, distribution and transportation along with geographic expansion is a tailwind. In the last reported quarter, revenues increased 5.4% year over year to $27.1 million.
Recently, DPSI launched PointCare Services, which is a comprehensive suite of managed and deployment services designed to handle selecting, deploying and managing customers’ enterprise technology. PointCare allows customers to focus on business growth while DecisionPoint manages intricate technology deployments. This consultative approach involves blueprinting, prescribing, and delivering services for mission-critical Enterprise Mobility, Point of Sale, and RFID technology.
Strategic acquisitions have also been pivotal in driving performance. In April 2023, it completed the acquisition of Macro Integration Services (MIS), which provides hardware, software and project services solutions mainly to companies in the retail sector. It also serves scales grocery, quick-service restaurants or QSR and convenience stores verticals.
The acquisition of MIS shifted product mix toward higher gross margin software and services, and expanded presence in the retail vertical, particularly grocery and food service.
This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -40%. Revenues are expected to be $26.8 million, up 9.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For DecisionPoint Systems Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DPSI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
DecisionPoint Systems Inc. is part of the Zacks Computer - Software industry. Autodesk ADSK, another stock in the same industry, closed the last trading session 1.2% lower at $255.26. ADSK has returned 3% in the past month.
For Autodesk , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.95. This represents a change of +4.8% from what the company reported a year ago. Autodesk currently has a Zacks Rank of #3 (Hold).
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