Sizzling Stock Update: Digirad Corporation’s (NASDAQ: DRAD)

On 10 Dec 18, Digirad Corporation’s (NASDAQ: DRAD) above/below -10.96% and ended at $0.65. The stock’s market capitalization arrived at $13.15M and total traded volume was 362,121 shares. The firm has a 52-week highest price of $3.0500 and its 52-week lowest price was called at $0.65. During last trade, its maximum trading price was registered $0.7553 and it’s the minimum trading price was noted $0.65.

Digirad Corporation (DRAD) recently stated its financial results for the third quarter and nine months ended September 30, 2018.

Total revenues from continuing operations for the third quarter were $25.7M, contrast to $25.8M in the third quarter of the previous year.

Net loss from continuing operations for the third quarter was $1.2M, or $0.06 net loss per diluted share from continuing operations, contrast to net loss of $7.3M or $0.37 net loss per diluted share in the same period in the previous year. Non-GAAP adjusted net loss from continuing operations for the third quarter was $0.6M, or $0.03 adjusted net loss from continuing operations per diluted share, contrast to adjusted net income of $0.1M, or $0.01 adjusted net income per diluted share in the same period in the previous year.

Non-GAAP adjusted EBITDA from continuing operations for the third quarter was $1.6M, contrast to $2.4M in the same period in the previous year. Operating cash flow for the third quarter was negative $0.8M, contrast to the previous year’s operating cash flow for the third quarter of $0.6M. Non-GAAP free cash flow was negative $0.4M for the third quarter, contrast to negative $0.2M in the same period in the previous year.

Total revenues for the nine months ended September 30, 2018 were $78.3M, contrast to $78.3M in the same period in the previous year.

Net loss from continuing operations for the nine months ended September 30, 2018 was $2.9M, or $0.15 net loss per diluted share, contrast to net loss of $12.4M, or $0.62 net loss per diluted share in the same period in the previous year. Non-GAAP adjusted net loss for the nine months ended September 30, 2018 was $1.6M, or $0.08 adjusted net loss per diluted share, contrast to adjusted net loss of $1.7M, or $0.09 adjusted net loss per diluted share in the same period in the previous year.

Digirad President and CEO Matt Molchan stated, “Overall, our business had some challenges during the quarter, which we expect to be temporary in nature. Despite these challenges, we were still able to keep revenue flat on a year over year basis, with Diagnostic Services revenue outperforming over the previous year.  Our Digirad Imaging Solutions (DIS) unit within Diagnostic Services suffered weather related issues Because of storms in the southeast but still managed to outperform the previous year quarter by 6%. Mobile Healthcare’s performance in the quarter was influenced by higher than normal equipment and trailer maintenance costs, however interim rental revenue continued to outperform increasing by 24% over the previous year’s quarter.”  Molchan continued, “Camera sales again influenced our revenue generation in Diagnostic Imaging, but a strong September bodes well for a good finish to the year as budgets for hospital systems’ capital expenditures are being funded.”

2018 Financial Guidance

The Company reaffirms its before reported fiscal year 2018 financial guidance for revenues from continuing operations between $100 and $105M and free cash flow between $4 and $5M. The Company lowers its non-GAAP adjusted EBITDA from between $8.5 and $9.5M to about $7.0M. The updated guidance is based on adjusting the full year outlook based on the actual performance in the third quarter.

DRAD return on assets ratio of the Company was -32.80% and return on equity ratio was -68.00% while its return on investment ratio was -47.30%. The stock’s price switched down -33.02% 20-Days Simple Moving Average dropped -46.06% from 50-Days Simple Moving Average and fell -58.34% from 200 Days Simple Moving Average.

 

Leave a Reply

Your email address will not be published. Required fields are marked *