Why is Surgepays (SURG) stock down 21% today?

Surgepay pays (NASDAQ:Surge) shares are down sharply on Wednesday after the financial technology and telecommunications company announced earnings for the second quarter of 2024.

The bad news in this earnings report includes the company’s diluted EPS of -66 cents. That’s nowhere near the -7 cents per share Wall Street was expecting. It’s also significantly worse than then 40 cents per share in the same period last year.

Surgepays revenue of $15.09 million also doesn’t help matters today. That’s below the $15.15 million in revenue that analysts were expecting. It’s also a massive 58% year-over-year drop compared to $35.89 million.

Surgepays President and CEO Brian Cox had this to say in the earnings report:

“The second quarter of 2024 begins a transition phase for SurgePays. ACP funding has dried up and there is no guarantee it will return. Fortunately, in the first quarter we strengthened our balance sheet and began implementing growth initiatives outside of the ACP program to continue to pursue our strategic goal of being one of the nation’s largest providers of prepaid wireless financial technology services and underbanked.”

What’s next for SURG stock?

Cox notes that the company is currently in a transition phase. This will lead it to take more actions during 2024 to improve its fiscal performance. He believes this will result in the company reporting profits again by the end of the year.

SURG shares are down 20.6% as of Wednesday morning.

There are even more scholarship stories ready to go today!

We’ve got all the news traders need to know about on Wednesday! This includes what happens to the actions of TC BioPharm (NASDAQ:TCBP) stock, Viracta Therapeutics (NASDAQ:VIRX) stock and Digital ally (NASDAQ:DGLY) stock today. You can catch up on all these matters at the links below!

More stock market news for Wednesday

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As of the date of publication, William White did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publishing Guide.

At the time of publication, the responsible editor had (either directly or indirectly) no position in the securities mentioned in this article.