Kornit Digital Q4 Net Misses Estimates, Revenue Rises

(RTTNews) - Kornit Digital Ltd. (KRNT), engaged in the business of digital printing solutions for the fashion, apparel, and home decor industries, on Tuesday reported a drastic drop in net income in the fourth quarter ended December 31, 2021. Revenues and earnings missed consensus estimates.

Net income for the period was $1.0 million or $0.02 per share as compared to $5.9 million or $0.12 per share in the prior period.

Adjusted net income for the period was $6.4 million or $0.13 per share (net of $0.16 per share attributed to the non-cash impact of warrants) as compared to $11.5 million or $0.24 per share (net of $0.04 per share attributed to the non-cash impact of warrants) in the prior period. 8 analysts polled by Thomson Reuters were expecting the company to report earnings of $0.24 per share. Analysts typically exclude one-time items.

Revenues for the period were 87.55 million (net of $7.9 million attributed to the non-cash impact of warrants), as compared to $72.29 million (net of $1.8 million attributed to the non-cash impact of warrants) in the prior period. 5 analysts polled by Thomson Reuters were expecting the company to report revenues of $89.77 million.

For the first quarter of 2022, the company expects revenue (excluding the impact of the fair value of issued warrants in the quarter) to be in the range of $87 million to $91 million, higher than the analysts' expectation of $86.58 million.

Adjusted operating income is expected between 7 percent and 9 percent of revenue whereas EBITDA margins are expected to be in the range of 9 percent to 11 percent.

The company expects higher operating margins in the second, third, and fourth quarters of 2022 versus the first quarter.

Operating margins in the second-half quarters are expected to be in the mid-teens.

Shares of Kornit Digital closed Monday's trading at $98.31, up $5.73 or 6.19 percent from previous close.