AudioEye: B. Riley Securities downgrades to Buy, PT lowered to $19.

AudioEye: B. Riley Securities downgrades to Buy, PT lowered to $19.

AudioEye, Inc. (AEYE) faced a mixed reaction from investors following a recent earnings report and a downgrade by B. Riley Securities. The company reported a loss of $2,000 in its second quarter, with a loss of less than 1 cent per share. Despite this, earnings, adjusted for stock option expense and non-recurring costs, were 15 cents per share, meeting Street forecasts. Revenue for the period was $9.9 million, also in line with expectations [1].

B. Riley Securities downgraded AudioEye's stock rating to "Buy" from "Hold," and lowered its price target to $19 from $25. The downgrade was attributed to the company's slower-than-expected growth and the challenges faced in the digital accessibility market. The brokerage firm noted that AudioEye's quarterly earnings were below expectations, and the company's full-year outlook was also revised downward [2].

For the current quarter ending in September, AudioEye expects its per-share earnings to range from 17 cents to 19 cents. The company also expects revenue in the range of $10.2 million to $10.4 million for the fiscal third quarter. AudioEye's full-year earnings are now projected to be in the range of 71 cents to 73 cents per share, with revenue ranging from $40.3 million to $40.7 million [1].

Shares of AudioEye have fallen 23% since the beginning of the year and hit $11.66 in the final minutes of trading on Thursday, a decline of 42% in the last 12 months. The stock's performance has been impacted by the company's slower growth and the challenges in the digital accessibility market [1].

References:
[1] https://finance.yahoo.com/news/audioeye-q2-earnings-snapshot-202836743.html
[2] https://www.briley.com/