ShotSpotter sputters on second straight revenue forecast cut

Soundthinking

07/08/2019 13:54

** ShotSpotter Inc  SSTI.O  shares down 17.4% premarket to
$28.60 after seller of gunshot detection systems cuts full year
revenue forecast again
    ** SSTI threatening to erase YTD gains
    ** Along with slight Q2 rev miss, SSTI reduces 2019 rev
forecast to $42-$44.5 mln from previous guidance of $44.5-$45.5
mln, below Street consensus of $44.9 mln, per Refinitiv data
    ** Says reducing outlook to reflect timing uncertainty of
closing certain contracts, primarily in new international
markets  urn:newsml:reuters.com:*:nGNX5rNwv0
    ** Lake Street Capital maintains "buy", but cuts its PT by
$10 to $40
    ** Brokerage says while magnitude of adjustment is
relatively small, the 2nd consecutive lowered rev forecast
"fuels concern in a more severe deceleration in growth"
    ** SSTI on May 10 suffered its worst day with 19% drop after
co missed Q1 topline estimates and reduced its rev outlook,
blaming loss of major customer and contract negotiation delays
 urn:newsml:reuters.com:*:nGNX7N51SJ  urn:newsml:reuters.com:*:nL3N22M4AP
    ** 6 of 9 covering analysts rate SSTI "buy" or stronger,
rest are neutral
    ** Through Tues close, SSTI up 11% this year and is triple
its Jun 2017 IPO price of $11
    

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lance.tupper@tr.com 646-223-5017))