SoundThinking (SSTI) Reports Q2 Loss, Tops Revenue Estimates

Company Performance - SoundThinking (SSTI) reported a quarterly loss of $0.07 per share, better than the Zacks Consensus Estimate of a loss of $0.09, and an improvement from a loss of $0.28 per share a year ago, representing an earnings surprise of 22.22% [1] - The company posted revenues of $26.96 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 5.31%, compared to year-ago revenues of $22.08 million [2] - Over the last four quarters, SoundThinking has surpassed consensus revenue estimates three times [2] Stock Performance - SoundThinking shares have declined approximately 46.2% since the beginning of the year, while the S&P 500 has gained 8.7% [3] - The current consensus EPS estimate for the coming quarter is -$0.03 on revenues of $26.84 million, and for the current fiscal year, it is -$0.35 on revenues of $105.04 million [7] Industry Outlook - The Security and Safety Services industry, to which SoundThinking belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact individual stock performance [5][8]