Senestech (NASDAQ:SNES) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Senestech (NASDAQ:SNESGet Free Report) announced its quarterly earnings data on Wednesday. The company reported ($0.35) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.36) by $0.01, FiscalAI reports. The firm had revenue of $0.77 million during the quarter, compared to analysts’ expectations of $0.60 million. Senestech had a negative net margin of 304.22% and a negative return on equity of 67.60%.

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

  • Record revenue and e-commerce growth: Q2 revenue rose 56% sequentially to $770,000, led by e-commerce revenue up 186% to $511,000. Amazon revenue increased 473% sequentially to $349,000 after the channel was brought in-house.
  • Recurring revenue momentum strengthened: Subscription revenue increased 89% sequentially and 142% year over year to a record $104,000, while combined Amazon and company-site subscribers rose 117%. July e-commerce revenue and subscription revenue reached additional records.
  • Gross margins reached a company record: Gross margin improved to 73.6% from 68.5% in Q1 and 65.5% a year earlier, reflecting a more favorable channel mix, pricing discipline, and lower raw-material costs. Adjusted EBITDA loss improved 15% sequentially to $1.4 million.
  • Management is rebuilding the B2B organization: Core B2B revenue increased 11% sequentially and 14% year over year after excluding unusual prior-period orders, but reported B2B revenue declined to $259,000. New sales and marketing hires are targeting larger opportunities across pest management, commercial, agriculture, government, and other verticals, with management expecting the strategy to require additional time to demonstrate results.
  • Cash remains a key risk: Senestech ended the quarter with $5.1 million in cash and said its current resources should fund operations for at least nine months. The company continues to report significant losses and acknowledged that additional capital may be needed before reaching profitability, although it provided no fundraising guidance.

Senestech Stock Down 2.4%

SNES stock traded down $0.04 during midday trading on Wednesday, reaching $1.63. 134,888 shares of the company were exchanged, compared to its average volume of 72,581. The company has a debt-to-equity ratio of 0.02, a quick ratio of 7.79 and a current ratio of 8.91. Senestech has a 1-year low of $1.22 and a 1-year high of $5.53. The stock’s 50-day simple moving average is $1.53 and its 200 day simple moving average is $1.73. The company has a market cap of $8.64 million, a price-to-earnings ratio of -0.86 and a beta of 0.28.

Insider Activity

In related news, major shareholder Glenbrook Capital Management bought 35,000 shares of the company’s stock in a transaction that occurred on Monday, July 20th. The shares were purchased at an average cost of $1.47 per share, with a total value of $51,450.00. Following the transaction, the insider directly owned 1,057,824 shares of the company’s stock, valued at approximately $1,555,001.28. This represents a 3.42% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last ninety days, insiders have acquired 143,773 shares of company stock valued at $224,802. Corporate insiders own 2.20% of the company’s stock.

Hedge Funds Weigh In On Senestech

Several large investors have recently bought and sold shares of the stock. XTX Topco Ltd acquired a new stake in shares of Senestech during the fourth quarter worth about $54,000. Jane Street Group LLC acquired a new stake in shares of Senestech in the 4th quarter valued at about $32,000. DRW Securities LLC grew its stake in Senestech by 171.1% during the 4th quarter. DRW Securities LLC now owns 82,107 shares of the company’s stock worth $176,000 after buying an additional 51,818 shares during the last quarter. Renaissance Technologies LLC boosted its holdings in shares of Senestech by 35.2% in the fourth quarter. Renaissance Technologies LLC now owns 142,800 shares of the company’s stock valued at $306,000 after acquiring an additional 37,165 shares during the period. Finally, Millennium Management LLC acquired a new stake in shares of Senestech in the third quarter valued at approximately $126,000. Institutional investors and hedge funds own 5.19% of the company’s stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings upgraded Senestech from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Senestech presently has an average rating of “Hold”.

Check Out Our Latest Stock Analysis on Senestech

About Senestech

(Get Free Report)

SenesTech, Inc (NASDAQ: SNES) is a biotechnology company specializing in non-lethal pest management solutions. The company’s core focus is the development and commercialization of fertility-based control methods for commensal rodents, providing an alternative to traditional rodenticides. By targeting the reproductive cycle of rats, SenesTech aims to reduce rodent populations over time without the use of toxic chemicals, offering a more sustainable approach for pest management professionals.

The company’s flagship product, ContraPest®, is an EPA-registered liquid bait that disrupts rodent reproduction.

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Earnings History for Senestech (NASDAQ:SNES)

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