Inseego (INSG) shares have lost 24% in the past month, underperforming the Zacks Computer & Technology sector’s return of 3.3%.The underperformance can be attributed to INSG’s tepid fourth-quarter 2024 guidance. The current quarter faces tough sequential comparison due to record revenues and strong adjusted EBITDA in the third quarter of 2024.The fourth quarter of 2024 is a seasonally weak quarter. Product revenues are expected to suffer from the end of a promotion at a North American carrier customer and s ...

Inseego (INSG) shares plunged 40.36% to close at $10.83 on Wednesday following disappointing third-quarter 2024 results.INSG incurred a loss of 7 cents per share in the reported quarter, which lagged the Zacks Consensus Estimate for earnings of 9 cents. INSG had reported a loss of $1.95 in the year-ago quarter.Total revenues of $54 million increased 30.6% year over year but missed the Zacks Consensus Estimate of $56 million by 4.03%.Inseego’s stock has skyrocketed 393.6% compared with the Zacks Computer and ...

Roth MKM analyst Scott W. Searle upgraded Inseego Corp. INSG from Neutral to Buy, raising the price forecast from $13 to $15.Searle highlights the company’s successful balance sheet recapitalization and reducing net debt. The analyst also notes strong growth in core products, up 25%, and emphasizes the experienced management team.Looking ahead, Searle sees new products, evolving sales channels, and potential acquisitions to boost the company’s outlook for 2025 and 2026.In the third quarter, the company’s re ...

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Inseego (INSG) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of $0.09. This compares to loss of $1.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -177.78%. A quarter ago, it was expected that this holding company would post earnings of $0.03 per share when it actually produced earnings of $0.04, delivering a surprise of 33.33%.Over the last four quarters, the company has surpassed co ...

[Q3 2024 Performance Overview](index=1&type=section&id=Q3%202024%20Performance%20Overview) Inseego reported a transformative Q3 2024, achieving significant strategic and financial improvements, including its strongest operating results in years - Management described Q3 as a meaningfully transformative quarter with operational, strategic, and financial improvements, including the best operating results in several years[16](index=16&type=chunk) - The company agreed to sell its Telematics business for approximately **$52 million in cash**, now reported as 'discontinued operations'[15](index=15&type=chunk)[36](index=36&type=chunk) - A key focus was on right-sizing the company's capital structure and driving stockholder value through debt reduction and the cash infusion from the Telematics sale[21](index=21&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) In Q3 2024, Inseego reported strong financial results with combined revenue of $61.9 million, Adjusted EBITDA of $9.3 million, and GAAP Net Income of $9.0 million Q3 2024 Key Financial Results | Metric | Amount (USD) | | :--- | :--- | | **Total Revenue (Continuing & Discontinued)** | $61.9 million | | - Revenue from continuing operations | $54.0 million | | - Revenue from discontinued operations | $7.9 million | | **Total Adjusted EBITDA (Continuing & Discontinued)** | $9.3 million | | - Adjusted EBITDA from continuing operations | $6.7 million | | - Adjusted EBITDA from discontinued operations | $2.6 million | | **GAAP Net Income** | $9.0 million | - The blended gross margin was **37.9%**, composed of **34.8%** from continuing operations and **59.0%** from discontinued operations[23](index=23&type=chunk) - The company paid down its short-term loan from an initial **$19.5 million to $6 million** as of September 30, 2024[24](index=24&type=chunk) [Capital Structure Improvements](index=1&type=section&id=Capital%20Structure%20Improvements) In Q3 2024, the company significantly improved its capital structure by exchanging $91.5 million of convertible notes and anticipating $52 million cash from the Telematics sale - Completed a major debt reduction by exchanging **$91.5 million** of its 2025 convertible notes for long-term debt and equity[18](index=18&type=chunk) - In total, the company has repurchased or exchanged approximately **$147 million**, or **91%**, of the convertible notes outstanding as of December 31, 2023[18](index=18&type=chunk) - The **$52 million** in cash expected from the closing of the Telematics sale will add additional liquidity and flexibility[21](index=21&type=chunk) [Business Highlights](index=2&type=section&id=Business%20Highlights) In Q3 2024, Inseego advanced its channel strategy by onboarding 12 new partners, launching new 5G products, and securing a Fortune 150 utility customer - Onboarded **12 new Inseego Ignite partners** in Q3, with several producing immediate revenue[26](index=26&type=chunk) - Launched the 5G indoor router FX3110 and a new MiFi device into the Inseego Ignite channel program, closing new deals and winning a Fortune 150 utility customer[26](index=26&type=chunk)[27](index=27&type=chunk) - Increased MiFi X PRO sales sequentially across carriers, with strong demand from public sector customers[28](index=28&type=chunk) - Launched Inseego products in the new T-Mobile Virtual Inventory Program[28](index=28&type=chunk) [Q4 2024 Guidance](index=2&type=section&id=Q4%202024%20Guidance) Inseego's Q4 2024 guidance for continuing operations projects revenue between $43.0 million and $47.0 million and Adjusted EBITDA from $3.0 million to $4.0 million - The Q4 2024 guidance is for continuing operations only, as the sale of the telematics business is expected to close during the quarter[29](index=29&type=chunk) Q4 2024 Guidance (Continuing Operations) | Metric | Q4 2023 ACTUAL | Q3 2024 ACTUAL | Q4 2024 GUIDANCE | | :--- | :--- | :--- | :--- | | **Revenue** | $35.9m | $54.0m | $43.0m - $47.0m | | **Adjusted EBITDA** | $2.3m | $6.7m | $3.0m - $4.0m | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents unaudited consolidated financial statements for Q3 2024, reclassifying the Telematics business as discontinued operations [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) In Q3 2024, the company reported a net income of $8.1 million, a significant improvement from a $22.6 million loss in Q3 2023, with basic EPS of $0.66 Q3 Statement of Operations Highlights (in thousands USD) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **Total Revenues** | $54,032 | $41,357 | | **Gross Profit (Loss)** | $18,800 | ($2,165) | | **Operating Income (Loss)** | $1,016 | ($19,146) | | **Net Income (Loss) Attributable to Common Stockholders** | $8,142 | ($22,561) | Earnings Per Share (EPS) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **Basic EPS** | $0.66 | ($1.93) | | **Diluted EPS** | ($0.06) | ($1.93) | [Consolidated Balance Sheets](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of September 30, 2024, Inseego's balance sheet shows total assets of $113.4 million and total liabilities of $198.5 million, with the Telematics business reclassified as held for sale Balance Sheet Highlights (in thousands USD) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $85,100 | $58,226 | | **Total Assets** | $113,390 | $121,797 | | **Total Current Liabilities** | $188,854 | $55,911 | | **Total Liabilities** | $198,453 | $223,902 | | **Total Stockholders' Deficit** | ($85,063) | ($102,105) | [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the nine months ended September 30, 2024, net cash from operating activities significantly increased to $45.4 million, while financing activities used $32.8 million - Net cash provided by operating activities for the first nine months of 2024 was **$45.4 million**, compared to **$22.4 million** for the same period in 2023[47](index=47&type=chunk) - Net cash used in financing activities was **$32.8 million**, which included **$33.8 million** for repurchases of 2025 Convertible Notes and **$13.5 million** in repayments on a short-term loan, offset by **$19.4 million** in proceeds from the issuance of the short-term loan[47](index=47&type=chunk) - The company's cash and cash equivalents at the end of the period stood at **$14.7 million**, up from **$7.5 million** at the beginning of the period[47](index=47&type=chunk) [Supplemental Financial Data](index=9&type=section&id=Supplemental%20Financial%20Data) This section provides supplemental quarterly financial data for 2024 and 2023, including statements of operations and Adjusted EBITDA reconciliation for continuing and discontinued operations [Supplemental Quarterly Statement of Operations Data](index=9&type=section&id=Supplemental%20Quarterly%20Statement%20of%20Operations%20Data) This data presents quarterly statements of operations for 2024 and 2023, showing sequential revenue growth and improved operating income for continuing operations 2024 Quarterly Revenue from Continuing Operations (in thousands USD) | Quarter | Revenue | | :--- | :--- | | Q1 2024 | $37,505 | | Q2 2024 | $51,620 | | Q3 2024 | $54,032 | 2024 Quarterly Operating Income (Loss) from Continuing Operations (in thousands USD) | Quarter | Operating Income (Loss) | | :--- | :--- | | Q1 2024 | ($2,945) | | Q2 2024 | $1,854 | | Q3 2024 | $1,016 | [Reconciliation of GAAP Income (Loss) to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20GAAP%20Income%20(Loss)%20to%20Adjusted%20EBITDA) This section reconciles GAAP income to Adjusted EBITDA for 2024 and 2023 quarters, showing Q3 2024 total Adjusted EBITDA of $9.3 million Q3 2024 Adjusted EBITDA Reconciliation (in thousands USD) | Description | Amount | | :--- | :--- | | Income from continuing operations | $7,543 | | **Adjusted EBITDA from continuing operations** | **$6,717** | | Income from discontinued operations | $1,426 | | **Adjusted EBITDA from discontinued operations** | **$2,595** | | **Total Adjusted EBITDA** | **$9,312** | 2024 Quarterly Adjusted EBITDA from Continuing Operations (in thousands USD) | Quarter | Adjusted EBITDA | | :--- | :--- | | Q1 2024 | $1,499 | | Q2 2024 | $6,831 | | Q3 2024 | $6,717 | [Non-GAAP Financial Measures & Forward-Looking Statements](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Forward-Looking%20Statements) The company explains its use of non-GAAP financial measures like Adjusted EBITDA and provides a cautionary note on forward-looking statements and associated risks - The company uses non-GAAP financial measures like Adjusted EBITDA for operational decision-making, performance evaluation, and forecasting[4](index=4&type=chunk)[35](index=35&type=chunk) - Adjusted EBITDA excludes items such as interest, taxes, depreciation, amortization, share-based compensation, debt restructuring costs, and other non-recurring expenses[34](index=34&type=chunk) - The report contains forward-looking statements based on current management expectations, which are subject to risks including customer dependence, supply chain challenges, competition, and geopolitical instability[54](index=54&type=chunk)[3](index=3&type=chunk)

Inseego (INSG) is set to report third-quarter 2024 results on Nov. 12.For the third quarter, INSG expects revenues of $54-$58 million.The Zacks Consensus Estimate for revenues is currently pegged at $56.30 million, suggesting an increase of 15.89% from the year-ago quarter’s reported figure.For the quarter under review, the consensus mark for earnings has remained steady at 9 cents per share, unchanged over the past 30 days. INSG reported a loss of $1.60 per share in the year-ago quarter.Inseego has a mixed ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Eve ...

Group 1: Momentum Investing Overview - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks is challenging, as they may lose momentum if their valuations exceed future growth potential [1] Group 2: Investment Strategy - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2] - The 'Fast-Paced Momentum at a Bargain' screen helps in spotting fast-moving stocks that remain attractively priced [2] Group 3: Inseego (INSG) Stock Analysis - Inseego (INSG) has shown significant recent price momentum, with a four-week price change of 68%, indicating growing investor interest [3] - Over the past 12 weeks, INSG's stock has gained 76.1%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - INSG has a beta of 1.61, suggesting it moves 61% more than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - INSG has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to leverage its momentum [5] - The stock has a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investors [6] - INSG is trading at a Price-to-Sales ratio of 0.87, indicating it is relatively cheap, as investors pay only 87 cents for each dollar of sales [6] Group 5: Additional Opportunities - Besides INSG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of potential winning stocks [8]

Group 1 - Inseego (INSG) is currently outperforming its peers in the Computer and Technology group, with a year-to-date gain of approximately 563.8% compared to the sector average return of 21.6% [4] - The Zacks Rank for Inseego is 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 74.4% in the past quarter [3] - Inseego belongs to the Internet - Software industry, which has 141 companies and is ranked 92 in the Zacks Industry Rank, with an average gain of 15.7% this year [5] Group 2 - The Computer and Technology group consists of 617 companies and is currently ranked 7 within the Zacks Sector Rank, which includes 16 different groups [2] - NetApp (NTAP), another stock in the Computer and Technology sector, has returned 36.9% since the beginning of the year and also holds a Zacks Rank of 2 (Buy) [4][5] - The Computer-Storage Devices industry, which includes NetApp, has 7 stocks and is ranked 96, with an industry gain of 34.5% this year [6]