GigaCloud Technology Inc (NASDAQ: GCT) stock plunged 12.55% in the night session on Tuesday, underperforming the broader market.
The El Monte, California-based tech company reported its fourth-quarter 2024 earnings after the closing bell. For the quarter ended December 31, 2024, GigaCloud Technology posted adjusted earnings of $0.75 per diluted share, down from $1.07 a year earlier and missing the consensus estimate of $0.89. Revenue grew 20.9% year-over-year to $295.8 million, beating analysts' expectations of $288.3 million.
However, the company provided disappointing guidance for the first quarter of 2025. GigaCloud Technology expects revenue to be in the range of $250 million to $265 million, falling short of the consensus estimate of $281.4 million. This weaker-than-expected outlook appears to be the primary factor weighing on the stock.
Additionally, GigaCloud Technology's gross margin declined to 22% in Q4 2024, down from 28.5% in the year-ago quarter, potentially raising concerns about profitability pressure. The company also announced the appointment of Erica Wei as the new Chief Financial Officer, replacing the interim CFO.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.