Telos Corporation (TLS) Reports Q1 Loss, Tops Revenue Estimates

Financial Performance - Telos Corporation reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.05, and an improvement from a loss of $0.08 per share a year ago, representing an earnings surprise of 40% [1] - The company posted revenues of $30.62 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.73% and showing an increase from $29.62 million in the same quarter last year [2] - Over the last four quarters, Telos has exceeded consensus EPS estimates four times and has also topped consensus revenue estimates four times [2] Stock Performance and Outlook - Telos shares have declined approximately 28.4% since the beginning of the year, compared to a decline of 3.7% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $32.52 million, and for the current fiscal year, it is -$0.16 on revenues of $145.4 million [7] - The estimate revisions trend for Telos is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Telos belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]