KRNT - Is It Too Late to Buy Kornit Digital Stock?
Kornit Digital 's (NASDAQ: KRNT) stock plunged 26% on July 6 after the Israeli textile printing company posted preliminary second-quarter results. It says it now expects revenue to decline 27% to 31% year over year in the quarter, which is far below the guidance for 4% to 16% growth that it presented in May.
The company also expects its adjusted operating margin to drop to negative 28% to 34%, and for its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) margin to slip to negative 24% to 30%. It had previously forecast an adjusted operating margin of -2% to +2% and an adjusted EBITDA margin of 0% to 4%.
Kornit is scheduled to post its full second-quarter report on Aug. 10, but its shocking preliminary numbers indicate it's in serious trouble. Let's review what Kornit does, why its growth stalled out, and if it's a potential turnaround play.
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Is It Too Late to Buy Kornit Digital Stock?