On Tuesday, Exela Technologies Inc (NASDAQ:XELA) was in the news after it announced its preliminary financial results for the first fiscal quarter that ended on March 31, 2022.
Trading Data
On Tuesday, XELA stock slumped 17.50% to $0.3054 with more than 42.44 million shares, compared to its average volume of 35.08 million shares. The stock moved within a range of $0.2911 – 0.3219 after opening trading at $0.2975.
Earnings Review
However, the numbers seemed to have disappointed investors as the Exela stock showed weakness and ended up with a steep decline of as much as 17%. In this situation, it may be a good move to perhaps take a look at the key numbers and make your minds up about the Exela stock. The company managed to bring in revenues to the tune of $279.4 million and the reflected a decline of 6.9% year on year.
On the other hand, the company also suffered an operating loss of $7.3 million and that was a significant development considering the fact that in the prior year period, it had actually reported net income of $4.3 million.
The decline in gross profit year on year was the primary reason behind the big swing. The net losses that the company suffered for the quarter stood at $57 million and that was again higher than the net losses of $39.2 million in the first quarter of 2021. It remains to be seen if the decline in the stock is arrested today.
Key Quote
“It is humbling to report that we have had the highest new TCV won over the past five quarters along with 41 new logos excluding our SMB business, which continues to report strong growth. Our renewals have reached an enviable 93% after falling over the last 2 years. We see traction in our business and are hopeful that contraction of volumes during COVID-19 will slowly return as people return back to business. We continue to organize and advantageously position the company to better serve our customers with our technology led services and solutions.” said Par Chadha, Executive Chairman of Exela.
Technical Data
XELA stock is trading below the 20-Day and 50-Day Moving averages of $0.35 and $0.40 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.28.
