Track Group Inc (OTCMKTS:TRCK) Stock In Focus After Quarterly Earnings

Investors in Track Group Inc (OTCMKTS:TRCK) are going to be hoping for a quick recovery for the stock today after it had declined sharply and gone down by as much as 6% on Friday.

Market Stats

On Friday, TRCK stock ended lower by 6.36% to $1.03 with 464 shares, compared to its average volume of 1.8K shares. The stock moved within a range of $1.0300 – 1.0300 after opening trading at $1.03.

Track Group Reports 2nd Quarter Fiscal 2022 Financial Results

The monitoring services and offender tracking firm was in the news last Friday after it announced its financial results for the second fiscal quarter that had ended on March 31, 2022. It could be a good move for investors to now look into some of the highlights from the financial results. Track Group generated revenues to the tune of $9.5 million for the quarter but that reflected a year on year drop of around 4%.

On the other hand, the operating income for the period stood at only $7371 and that reflected a massive drop from the operating income of $1.7 million in the prior year period. In addition to that, it is also necessary to note that the net income that was attributable to those who hold common shares came in at $0.5 million in the latest reported quarter.

In the prior year period, the company had generated as much as $2.2 million under the same overhead.

Key Quote

“Remaining supply chain constraints brought on by the pandemic, coupled with investments in new technology and telecommunications infrastructure, are reflected in our financial results for the second quarter ended March 31, 2022. Notwithstanding, we performed well despite the circumstances and remain resilient by employing adaptive strategies. Our team successfully managed a nationwide device upgrade, developed new products, and supported new contracts while remaining squarely focused on the agencies reintegrating our end users back into society. As we reinvest in our technology and prepare for a return to growth in FY23, we see encouraging progress on several fronts, from our customer experience, product roadmap, and smart integrations that ultimately create value for our customers.” said Derek Cassell, Track Group’s CEO.

Traders Corner

TRCK stock is trading below the 20-Day and 50-Day Moving averages of $1.37 and $1.36 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.32.