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Why Ondas Holdings Stock Jumped Today

By Chris Neiger – Nov 15, 2021 at 3:25PM

Key Points

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The tech stock rose despite poor earnings performance.

What happened 

Shares of Ondas Holdings (ONDS 1.38%) popped today after the company released its third-quarter 2021 results. Despite the company missing analysts' consensus earnings estimate for the quarter Ondas' share price climbed today.

The tech stock was up by as much as 13% today and had gained 8.8% as of 2:46 p.m. EST. 

So what 

Ondas said today that revenue decreased by 54% in the third quarter due to lower product sales. Additionally, the company reported a loss of $0.13 per diluted share for the quarter, compared to analysts' consensus estimate of a loss of $0.09 per share. 

A line graph on a dark background.

Image source: Getty Images.

"The third quarter marked an important transition for Ondas Networks as we moved from investment mode to platform delivery and adoption," Ondas' CEO, Eric Brock, said in a press release. 

Despite the earnings miss, investors may be responding positively to the company's third-quarter results today because the company announced that it had secured an initial commercial order for a railroad communications network for Siemens Mobility. 

The company also said it received four additional product development orders from Siemens Mobility, including one for "the development of a new locomotive telemetry radio for a major Asian Rail customer." 

Now what 

Ondas' stock has been turbulent over the past 12 months. After making some gains in early 2021, shares have tumbled and are down 5% over the past year, despite today's pop. 

With the company's share price seemingly erratic lately, investors may want to tread lightly with Ondas Holdings right now.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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