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WidePoint Corporation (WYY)

NYSE American - NYSE American Delayed Price. Currency in USD
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6.55-0.49 (-6.96%)
At close: 4:00PM EDT
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  • r
    rich
    "The financial results of the first quarter demonstrate that WidePoint has a solid base from which we can continue to build and expand our profitability. With tailwinds from the increasing complex mobile landscape, the growing need to secure mobile devices, and the return to more in person work expanding our pipeline, we are optimistic that we are in a healthy and strong position to continue driving the business's profitable growth over the long-run."

    The Company gave a very limited, tight forecast for the year .12 eps and 103M revenues. This does not line up the with optimism above. Hopefully they will clarify that tomorrow at the Needham.
  • T
    The YC
    With all the capital liquidity that Kang cited as a reason for not making an acquisition, is there a reason why we are only focusing on acquiring and not being acquired?
  • B
    Bill
    How can WYY even think of selling anymore stock at this price? Pre split level of .60 cents now.

    Seems like the plan put in place last August is not working.
  • g
    ggrail
    Not very filling. Nothing of note to announce and little interest even by analysts following WYY. SSDD.

    They need a relationship guy or gal to sell this company to someone that can blend it into a larger entity. The company does not have a big enough niche to be a public company that can actually pay investors a return. Not innovative, plodding, risk-averse, c'mon you did the reverse to try to invoke change and now you carp that everything is too expensive.

    Take off the blinders, you sold ~100k shares for about a million bucks and did little else. Time for a look in the mirror and some self-assessment to see who wants to be CEO and who wants to be a COO with blinders on.
  • P
    Pops
    I never expected guidance this bad. My prediction of their stock price not falling into the $5s might be in jeopardy.
    At $.12 that would be a total year's earnings of $1.1 million. Back out the $170,000 tax credit they just took and it would be adjusted $.10. Undo the reverse split and they would be back to being a 1 cent company.
    They are too small (app. $40M sales in decent gross margin business) and too slow growing in those sales to be a valuable public company. They really need to sell the company.
  • S
    Shortollie
    Call was actually good. Revenue was down but gross margins were up. Positive income and reinvested in the business. They are doing exactly what they said they would do. Eliminating low margin business. Making money.

    Nobody likes seeing a lower revenue number, but they are getting rid of the fluff. ID Management business is ticking up, which will be a really nice profit driver. That is what I wanted to hear. That is the big money business.
  • P
    Pops
    I believe insider blackout period is 2 days after earnings release. It will be interesting to see if we get any insider stock purchases.
  • B
    Bill
    WYY getting pummeled today. We can only hope someday the stock recovers. What a disappointment.

    Confidence in management not there anymore.
  • P
    Pops
    Widepoint shafts their investors.
    In 2020 Widepoint never pointed out the huge positive financial impact that their temporary census business was having but now they think past census impact should be removed for future comparisons. Actually I agree removing census for comparison is helpful but why didn't they keep investors informed about census's huge temporary impact during 2020 so investors could have better valued the company's true future worth. Kang had no problem using 2020's census included numbers where at the Needham conference he said 2021's profits would be better than 2020's and he used census included numbers to chart how fast topline revenue has been growing since his management team took over. He would have known his topline revenue numbers were misleading and now their 2021 profit guidance is not even half of 2020. $.12 vs. adj. $.27
  • P
    Pops
    Nice quarter earnings $.06.
    Awful 2021 guidance $.12.
    Could it be right? Make $.06 first quarter and $.06 for the combined last 3 quarters. Also first qtr. $1.3M adjusted EBITDA produced $.06 but the full year guidance of $4.3M adjusted EBITDA would produce only $.12. Am I missing something or did they say something in their cc that would explain their awful guidance? Guidance of $.12 doesn't beat 2020's adj. $.27.
  • g
    ggrail
    I'm looking for some data from this call Friday on what in the hell WYY plans on doing. If they do not have anything they can buy they need to begin supporting the share price by buying shares. No blaming Covid, no blaming previous management, it is time to perform or get off the pot.

    To paraphrase a political quote " quarterly conference calls are the graveyard of real ideas and the birthplace of empty promises."

    It's time to perform to a higher standard and inform stakeholders of the WidePoint strategy or give it up and find a buyer. Simply keeping the lights on and paying salaries is not the purpose of a public company. A plan to change the plodding course of this company should have already been developed and put in place but we have seen no real hint of the direction nor the speed of any real change to grow the company in a meaningful way for investors.
  • r
    rich
    With the current market decline, increased selling by doubters who fear growth is over, flat last quarter results and lack of real guidance by management, Widepoint could be at a turning point.
    Most of the problem was too much expectation of last quarters results and managements extremely conservative or lack of guidance.
    All of that can change Friday with good results and a more a detailed positive outlook for the rest of the year.
    Beat the estimates of .02/.05 eps, increase revenue substantially, continue to increase higher margin revenues, discuss the potential of recent new contracts plus possible new ones and add to cash on hand. Of course management has to give strong guidance for the rest of the year.
    All of this is very possible especially since all of these have been growing for the last few years. They have done a great job making Widepoint a profitable company, they need to Friday demonstrate that profitability and growth will continue.
  • B
    Bill
    Well, I’ll say it again. Not impressed. Earnings minus Census YOY is down. If a company received 37 times EBITDA then Widepoint needs to sell. $125 million sale price gives investors about $13.50 per share. Unfortunately looks like this stock is “dead” money.
    Bearish
  • g
    ggrail
    Looking FPDS data only for the previous 5 quarters by summing all the announced awards (including the givebacks), for Q1 2020 the total was $13,320,618.49. For Q1 2021 the total is $25,877,611.05, nearly double.

    Slice and dice that however you want, and there are many ways to do this in the arcane world of Fed Gov awards and staggered payments. I always liken it to watching a race that has a staggered start and one has difficulty in spotting the leader until the turn or down the stretch.

    What Widepoint needs to do is articulate where they are going and stop focussing on where they have been. I've already lost money on my historical bet on WYY and I wish to be informed, and backstopped with fact and projection, that the future bodes better than the past. They can no longer rely on the old saw that they are the NEW IMPROVED management team. Time to put the big boy pants on and do some real 'splaining about direction, and methods to get to what goal.

    Have something in your pocket to dangle out there to attract attention or risk being the one and future company that shot its wad and got nothing for it.
  • A
    Anonymous
    weird time to report earnings. should have just reported the friday before memorial weekend if they wanted the numbers to just quietly go unnoticed.
  • r
    rich
    WSJ has a price target on Widepoint of high 14, medium 14 and a low of 14. Current price of 6.55: Maybe they think Widepoint is selling out at 14 or the company is for sale for 14.
  • r
    rich
    Hopefully CEO Kang will give us some encouragement tomorrow instead of the usual caned presentation. If not the annual meeting June 11 will be very interesting as it is a live virtual meeting open to all shareholders. That is if there are any left. I still do not understand how they can forecast a flat .02 eps each of the next three quarters and still talk about new unavailable to disclose contracts and company growth. A new acquisition, merger or even a sell would not explain this.
    The only thing that makes sense is he knows something big is coming that he cannot disclose in any way or risk losing it. Let’s hope!
  • g
    ggrail
    First Quarter 2021 Financial Highlights:

    Revenues were $20.7 million
    Managed Services revenue increased sequentially to $9.3 million
    Gross margin improved to 22.8%
    Net income improved to $585,000, or $0.06 per diluted share
    EBITDA, a non-GAAP financial measure, was $1.0 million
    Adjusted EBITDA, a non-GAAP financial measure, was $1.2 million
    As of March 31, 2021, cash increased to $17.1 million
  • i
    ikonoklast53
    At close: 4:00PM EDT 7.18-0.33 (-4.39%)
    After hours: 5:59PM EDT 7.55 +0.37 (5.15%)
    Hope everybody loaded up :))
    Bullish
  • A
    Anonymous
    After that qtr and CC, it appears they may be stuck in a tough spot. Not a growth stock, not a value stock, stuck in neutral and solid financially, but why would you put money here, especially if real growth stocks turn up again? Could be a good bet on a takeover if shares continue to slide and I don't see them falling below 5, but I would gamble at 5.XX, until then....