Mercury Systems Inc (MRCY)

Shares of Mercury Systems (MRCY) dropped by 12.59% from $36.78 to $32.15 in the trading on Wednesday, Novemeber 8, 2023. The reason why MRCY down is due to the company's disappointing Q1 fiscal 2024 results:

• Earnings: Mercury Systems reported a non-GAAP loss of 24 cents per share, missing the expected earnings of 16 cents per share. This marks a significant decrease in earnings compared to the previous year.
• Revenue: The company's non-GAAP revenues for Q1 fiscal 2024 decreased by 20.5% to $181 million, falling short of the consensus estimate of $218.2 million.
• Gross Profit: Gross profit was $50.5 million, down 35.3% year over year, resulting in a gross margin of 27.9%, a decrease of 640 basis points.
• Operating Expenses: Total operating expenses increased by 6.4% to $90.7 million, accounting for 50.1% of revenues.
• Adjusted EBITDA: Adjusted EBITDA declined by 93.7% year over year to $2 million, with a margin decrease of 1,260 basis points to 1.1%.

MRCY's stock fell 9.66% after the company said it reviewed strategic alternatives and decided to pursue a standalone strategy which includes finding a new CEO. The company's Board of Directors has decided that executing the company's strategic plan under a refreshed leadership team is the best way to drive value for stakeholders.

https://www.benzinga.com/news/23/06/33005515/why-mercury-systems-mrcy-stock-is-getting-hammered