SoundThinking (SSTI) Reports Q3 Loss, Tops Revenue Estimates

Company Performance - SoundThinking (SSTI) reported a quarterly loss of $0.11 per share, which was worse than the Zacks Consensus Estimate of a loss of$0.08, marking an earnings surprise of -37.50% [1] - The company posted revenues of $26.25 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.19$23.98 million in the same quarter last year [2] - Over the last four quarters, SoundThinking has surpassed consensus EPS estimates just once, but has topped consensus revenue estimates three times [2] Stock Performance - SoundThinking shares have declined approximately 51.1% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of$26.7 million, and for the current fiscal year, it is -$0.38 on revenues of$105.24 million [7] Industry Outlook - The Security and Safety Services industry, to which SoundThinking belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact SoundThinking's stock performance [5]