Ondas Stock Tumbles On Q4 Earnings Miss, Lower-Than-Expected Guidance – But Retail’s Optimistic

Shares of Ondas Holdings Inc. (ONDS) fell nearly 4% in Wednesday’s regular trade and extended the decline in the after-hours session as the company’s fourth-quarter earnings missed Wall Street estimates.

Ondas reported a loss of $0.15 per share, while the consensus estimate pegged it at $0.09. During the same period a year earlier, Ondas’ loss per share stood at $0.15.

The company posted revenue of $4.1 million, lower than the estimated $5.75 million and declining from $4.96 million from the year-ago period.

“Our momentum in 2024 was supported by securing two key programs with a major military customer for our Optimus and Iron Drone platforms, opening the large and fast-growing global defense markets,” said CEO Eric Brock.

For fiscal year 2024, Ondas posted a loss of $0.61 per share, compared to an estimated loss of $0.52 per share. However, the company narrowed it from a loss of $0.88 per share in 2023.

On the revenue front, Ondas’ FY24 revenue stood at $7.19 million, once again missing expectations and halving from $15.7 million in 2023.

To add to the company’s woes, its fiscal 2025 outlook also fell short of expectations. Ondas forecast revenue of $25 million in FY25, while Wall Street expected $33.4 million.

The company expects revenue growth to be fueled by its autonomous systems segment, called OAS, which could contribute up to $20 million to the company’s topline in FY25.

Ondas also noted that it has an order backlog of $10 million.

Retail investors on Stocktwits sounded bullish despite Ondas missing expectations on all counts.

One user outlined growing institutional holdings as the reason behind their bullish outlook.

Another user said the company’s cash position is robust.

Ondas’ stock has fallen 73% year-to-date.

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