TSS (NASDAQ:TSSI) Announces Earnings Results, Beats Estimates By $0.04 EPS

TSS (NASDAQ:TSSI) released its quarterly earnings results on Thursday. The company reported $0.08 EPS for the quarter, topping analysts’ consensus estimates of $0.04 by $0.04, FiscalAI reports. TSS had a net margin of 7.14% and a return on equity of 28.92%. The business had revenue of $55.35 million for the quarter.

Here are the key takeaways from TSS’s conference call:

• Systems Integration revenue grew 88% YoY to $14.1M and now makes up 25% of revenue, with systems integration gross margin rising to 37.5%, making it the primary driver of margin expansion and profitability.
• Consolidated revenue declined to $55.3M from $99M a year ago as procurement services fell 56% to $40M, highlighting the lumpy, lower‑margin nature of procurement and pressuring YoY top-line comparables.
• Management expects to invest roughly $17 million of CapEx (customer‑requested) to support higher‑power “Vera Rubin” racks, with assets coming online by Q3 and expected to be recouped via higher pricing over ensuing years.
• Leadership was strengthened with a new Chief Strategy Officer and Chief Technology Officer to support scaling, partnerships, and engineering capabilities — positive for execution but dependent on successful integration.
• Full‑year Adjusted EBITDA guidance of $20–22 million (management expects to be at the high end) is supported by a multiyear agreement that provides revenue visibility and downside protection.

TSS Price Performance

TSSI stock traded down $3.82 during mid-day trading on Friday, hitting $12.02. The stock had a trading volume of 5,775,447 shares, compared to its average volume of 1,668,956. The company has a current ratio of 1.63, a quick ratio of 1.41 and a debt-to-equity ratio of 0.18. TSS has a 52 week low of $6.87 and a 52 week high of $31.94. The firm has a market capitalization of $346.90 million, a P/E ratio of 24.53 and a beta of 2.04. The firm has a fifty day simple moving average of $12.86 and a 200 day simple moving average of $11.34.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. Zacks Research raised shares of TSS to a “hold” rating in a research report on Tuesday, February 17th. Needham & Company LLC reaffirmed a “buy” rating and set a $16.00 price target on shares of TSS in a research report on Friday. Finally, Wall Street Zen lowered shares of TSS from a “hold” rating to a “sell” rating in a research report on Sunday, April 19th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $17.17.

Insider Activity

In other TSS news, CFO Daniel M. Chism sold 25,000 shares of the firm’s stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $15.00, for a total value of $375,000.00. Following the transaction, the chief financial officer directly owned 338,215 shares of the company’s stock, valued at $5,073,225. This trade represents a 6.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Darryll E. Dewan sold 50,000 shares of the firm’s stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $15.00, for a total transaction of $750,000.00. Following the completion of the transaction, the chief executive officer directly owned 554,471 shares in the company, valued at approximately $8,317,065. This represents a 8.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 176,649 shares of company stock valued at $2,670,031 in the last 90 days. 18.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On TSS

Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in shares of TSS by 31.2% in the 3rd quarter. Vanguard Group Inc. now owns 1,240,958 shares of the company’s stock valued at $22,474,000 after purchasing an additional 294,971 shares in the last quarter. Millennium Management LLC boosted its stake in shares of TSS by 81.9% in the 4th quarter. Millennium Management LLC now owns 865,350 shares of the company’s stock valued at $6,118,000 after purchasing an additional 389,497 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of TSS by 8.3% in the 4th quarter. Geode Capital Management LLC now owns 539,359 shares of the company’s stock valued at $3,814,000 after purchasing an additional 41,536 shares in the last quarter. Value Aligned Research Advisors LLC boosted its stake in shares of TSS by 6.8% in the 4th quarter. Value Aligned Research Advisors LLC now owns 460,510 shares of the company’s stock valued at $3,256,000 after purchasing an additional 29,247 shares in the last quarter. Finally, UBS Group AG boosted its stake in shares of TSS by 188.1% in the 4th quarter. UBS Group AG now owns 316,456 shares of the company’s stock valued at $2,237,000 after purchasing an additional 206,600 shares in the last quarter.

TSS Company Profile

TSS, Inc offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc, formerly known as Fortress International Group, Inc, is based in Columbia, United States.