Why Ondas Holdings fell on Monday

What happened

Ondas Holdings (NASDAQ: ONDS) wasn’t exactly a hit with investors on Monday. The specialty network services company reported disappointing second quarter earnings, and investors responded by selling the stock lower; it closed the day down nearly 14%.

So what

A big issue with Onda’s performance was net income, which fell year over year and landed well below analysts’ expectations. For the quarter, it totaled $ 887,400, down 23% from the second quarter 2020 result. Analysts watching the stock collectively expected just over $ 1.2 million.

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On a slightly happier note, the tech company slashed its net loss and managed to beat tipster expectations for the line item. The shortfall was $ 2.82 million, or $ 0.10 per share, compared to a loss of $ 3.22 million a year ago. On average, analysts modeled a deficit per share of $ 0.12.

In reporting its results, Ondas praised the momentum of its key business unit, Ondas Networks, which it said “continued to make significant progress in business development” during the quarter. He also referred to the acquisition of drone specialist American Robotics, a deal that was struck earlier this month. Finally, he pointed out that he raised $ 51.5 million in a secondary stock offering in June that helped him repay 95% of his existing debt.

Now what

Another point of concern for investors, however, could be the somewhat cloudy future of Ondas. Although the company believes that “ongoing investments in market expansion and deeper penetration of certain verticals should continue to support customer activity,” it said that due to fluctuations in its business, it does not offer advice for the current quarter.